industrial relations
DESCRIPTION
in vizag steel plantTRANSCRIPT
A PROJECT ON
INDUSTRIAL RELATIONS SCENARIO AND ITS IMPACT
AT
VISAKHAPATNAM STEEL PLANTA PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OFMASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
GOURI SANKAR ACHARYARegd No. 1106222004
UNDER THE GUIDANCE OF
Mr. O.R.M RAOASST. GENERAL MANAGER (HRD)
& Mr. R. APPA RAO
Jr. Officer(Personnel) IR VISAKHAPATNAM STEEL PLANT
FACILIATED BYSRI O.R.M RAO (AGM, HRD)
SRI M.L.S VARMA (DY.MANAGER)
RAYAGADA-765001, ODISHA
2011-2013
CERTIFICATE
This is to certify that the Project Work titled “A STUDY ON INDUSTRIAL RELATIONS SCENARIO AND ITS IMPACT AT VISAKHAPATNAM STEEL PLANT” with reference to VISAKHAPATNAM STEEL PLANT (RINL) is a bonafide work carried out by GOURI SANKAR ACHARYA OF GIACR, RAYAGADA (ODISHA), in partial fulfillment for the award of degree of MBA affiliated to BPUT, approved by (AICTE) has been done under my guidance and to the best of my knowledge it is their original work.
Place: Visakhapatnam O.R.M RAODate: Asst. General Manager (HRD)
CERTIFICATE
This is to certify that the Project Work titled “A STUDY ON INDUSTRIAL RELATIONS SCENARIO AND ITS IMPACT AT VISAKHAPATNAM STEEL PLANT” with reference to VISAKHAPATNAM STEEL PLANT (RINL) is a bonafide work carried out by GOURI SANKAR ACHARYA, OF G.I.A.C.R, RAYAGADA (ODISHA), in partial fulfillment for the award of degree of MBA affiliated to BPUT approved by (AICTE) has been done under my guidance and to the best of my knowledge it is their original work.
Place: Visakhapatnam Date: R.APPA RAO JR. OFFICER (Personnel) IR
Project Guide
DECLARATION
We hereby declare that the project work entitled “A STUDY
ON INDUSTRIAL RELATIONS SCENARIO & ITS IMPACT IN
VSP, VISAKHAPATNAM STEEL PLANT” submitted by me and is
not submitted to any other university or published any time before. The
project work is a partial fulfillment of the requirement for the award of
M.B.A.
Place: Visakhapatnam
Date: GOURI SANKAR
ACHARYA
ACKNOWLEDGEMENT
I express my sincere thanks to Mr. R.Appa Rao
Jr. Officer (Personnel)- Industrial Relationship, Visakhapatnam
Steel Plant, for giving me an opportunity to carry out my project work
under his guidance and support which extended through out.
I am also indebted to the employees of VSP who have co-operated in the survey and given their unbiased opinion. I would like to thank the senior functionaries of the company who spared their valuable time in sharing their perceptions.
I do take this opportunity to thank all my faculty members who gave full cooperation and support for the successful completion of my project work.
I would like to thank my parents who encouraged me throughout my educational endeavor and my project work. And at last but not the least I would like to thank all my friends who had helped me with their valuable suggestions throughout my project work.
I express my sincere thanks to Mr. O.R.M RAO Asst. General Manager (HRD) of Visakhapatnam Steel Plant by offering their guidance and support for successful completion of my project.
VISAKHAPATNAMDate:
INDEX
CHAPTER – I INTRODUCTION
CHAPTER – II INDUSTRIAL PROFILECOMPANY PROFILE
CHAPTER – III THEORITICAL FRAME WORK OF THE STUDY
CHAPTER – IV DATA ANALYSIS AND INTERPRETATION
CHAPTER – V SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSIONANNEXURESBIBLIOGRAPHY
CONTENTSCHAPTER 1: INTRODUCTION
SCOPE OF THE STUDY NEED OF THE STUDY OBJECTIVES OF THE STUDY METHODOLOGY LIMITATIONS
CHAPTER 2: INDUSTRIAL PROFILE COMPANY PROFILE
CHAPTER 3: THEORITICAL FRAME WORK OF
THE STUDY
CHAPTER 4: DATA ANALYSIS AND
INTERPRETATION
CHAPTER 5: SUMMARY FINDINGS SUGGESTIONS CONCLUSION
INTRODUCTION
The term Industrial Relations refers to ‘Industry’ and ‘relations’.
According to ID act 1947 Industry means – “any systematic activity carried on by
cooperation between an employer & his workmen for the production of goods or
services with a view to satisfy human wants or wishes.”(Not for spiritual needs).
Relations mean the relation that exists between the employer and his workmen.
The term Industrial relations means that cooperative relationship which exists
between the employer and the employees.
According to J Henry Richardson - Industrial relations may be referred as
an art of living together for the purposes of production. Industrial relations is that
part of management which is concerned with the manpower of the enterprise.
Industrial relations have a very important concept of the science of management
because it deals with the man power of enterprise.
Scope of Industrial Relations:
The concept of Industrial relations has a very wide scope. In the narrow
sense it means that the employer-employee relationship is confined to the relation
that emerges out of the day-to-day association of management and labour. In its
wider sense, IR includes the relation between employees and employer in course of
running of an industry and may project itself into spheres.
An industry is a social world in miniature. The interaction between
workmen-supervisory staff, management and employer creates industrial
relationships. This relationship affects the economic, social and political life of the
whole community. Industrial relations are therefore inherent in an Industrial life.
These include
--Labor relations i.e. relations between Trade unions and management
--Employer and employee relations
--Group relations, i.e. relations between industry and society.
The organizations success depends on how it values its employees and
protects their interest by providing better wages, working conditions and
participative management, effective collective bargaining, etc. The better IR
maintained in an organization is the outcome of adjustment of mutual interests.
Need for the study:
The development of any organization depends on good Industrial relations,
which involved both management and workers. Until and unless there is
commitment from both sides good IR cannot be achieved.
Every organization faces a problem in maintaining good relations; this may
be due to man, money, machinery and material, labour unions, working
environment, etc. Poor IR adversely affects the industry profile, labour,
community in particular and eventually the nation’s economy.
Steel Comprises one of the most important inputs in all sectors of the
economy. Steel Industry is both a basic and core industry. The economy of any
nation depends on a strong base of iron and steel Industry in that nation. The Steel
Industry is both capital and labour intensive. The working conditions are also very
hazardous. So maintenance of Good Industrial Relations plays a vital role since it
has directive impact on the production and productivity of an industry.
Coming to Visakhapatnam Steel Plant a Public Sector Unit, study of
Industrial Relations at Visakhapatnam Steel Plant is very helpful to me to get
experience on Industrial Relations
Objectives of the Study:
1. To study the Industrial Relations Scenario at Visakhapatnam Steel Plant
(VSP).
2. To know the impact of Industrial Relations on Production and Productivity
of VSP
3. To study the role of Trade Unions, Grievance Handling, discipline,
Participative Management in maintaining cordial Industrial Relations
4. To study the perception of employees and management towards their role in
maintaining cordial Industrial Relations
5. To identify and analyze the causes or dilations of IR.
Methodology:
The Project Scenario entitled “A study on Industrial Relations scenario and
its impact in Visakhapatnam Steel Plant” was carried out for 8 weeks at
Visakhapatnam Steel Plant.
Data collection:
The study was carried out by collecting and analyzing the data collected
both from Primary and Secondary sources.
Primary Data was collected by discussions with managers and the
employees. A Questionnaire was prepared and administered on a sample of 100
containing executives (35), non-executives (50) and unskilled labour (15). The
data collected is analyzed to know the perception of executives, non-executives
and unskilled labour towards their role in maintaining the cordial Industrial
Relations.
Secondary data is collected from Company Records, In-house Magazines,
and Internet regarding the Industry and company profile and also about Industrial
Relations events in Visakhapatnam Steel Plant right from its inception.
Limitations:
1 The survey was conducted on the sample based upon random selection;
random selection has its own defects.
2 The size of the sample representing the universe is very small.
CHAPTER – 2
INDUSTRY &
COMPANY PROFILE
STEEL INDUSTRY PROFILE
Steel comprises one of the most important inputs to all sectors of the
economy. Steel Industry is both a basic and a core Industry. The economy of any
nation depends on a strong base of Iron and Steel Industry in that nation. History
has shown that the countries having a strong potential for Iron and Steel Industry
have played a prominent role in the advancement in the civilization in the world.
Steel is such a versatile commodity that every object we see in our day to day life
has used for such small items as nails, pins, needles etc., to surgical instruments,
agricultural implements, boilers, ships, railway materials, automobile parts. The
great investments that has gone into the fundamental research in Iron and Steel
Technology has helped both directly and indirectly many modern fields of today’s
science and technology. Steel is versatile and indispensable item. The versatility of
steel can be traced mainly of three reasons.
1 It is only metallic item, which can be conveniently and economically
produced in tonnage quality.
2 It has got very good strength coupled with malleability
3 Its properties can be changed over a wide range. Its properties can be
manipulated to any extent by proper heat treatment techniques.
Iron and Steel making as a craft as been known to India for a long time.
However, its production in significant quantities only after 1900.
2.1 Pre-Independence Era:
By 1950 the total installed capacity for ingot steel production was 1.5
million tons per year. In 1830 James Heath constructed the first manufacturing
plant at port Nova in Madras Presidency. But it was a financial failure.
In 1874 James Erskin founded the Bengal Iron works. It was passed on to
M/s. Hoare Hiller and Co. in 1882 and to M/s. Martin and Co. in 1885. In 1899
Jamshedji Tata initiated the scheme for an integrated steel plant. In 1906 Sakhi in
Bihar was chosen as the site for the “Tata Iron and Steel Company”. The same
place is known as Jamshedpur. In 1918 initially “Indian Iron and Steel Company”
was founded and the “Bengal Iron and Steel Company” was merged with it in
1920. TISCO produced steel in 1939. Between 1940-50 formation of major Iron
and Steel at Bhadravti in Karnataka owing to the pioneering effort of
Shri.Visveswarayya in 1936 it started manufacturing steel and after 1945 adopted
electric reduction of Iron ore. It has also started manufacturing Ferro alloys and
special steel.
2.2 Post-Independence period:
After the Independence the Government has taken steps to improve the Steel
Industry from the following Five-Year Plans.
First Five year plan (1951-1956):
No new steel plant came up. The Hindustan Steel Limited was born in
the year 1954 with the decision of setting up 3 plants each with one million tones
ingot steel per year at Rourkela, Bhopal and Durgapur, TISCO started its
expansion program.
Second Five year plan (1956-1961):
A bold decision was taken up to increase the ingot steel output in India to 6
million tones per year and the production at Rourkela, Bhilai and Durgapur steel
plant started. Rourkela steel plant was established with the collaboration of West
Germany, Bhilai steel plant with USSR and Durgapur steel plant with Britain.
Third Five year plan (1961-1966):
During the plan, the 3 steel plants under Hindustan Steel Limited
(Rourkela, Bhilai and Durgapur) Plants were expanded. In January 1964, Bokaro
Steel Plant came into existence
Fourth Five year plan (1969-1974):
Salem Steel Plant started. Government of India gave permission for
setting up Steel Plant in south at Visakhapatnam. Steel Authority of India Limited
was formed during this period on 24th January 1973.
Fifth Five Year Plan (1974-1979):
The idea of setting up the 5th integrated Steel Plant, the Ore-based
plant at Visakhapatnam took a definite shape. At the end of the fifth five-year
plan, the total installed capacity from 6 integrated plants was 10.6 million tones.
Annual plan (1979-1980):
The erstwhile Soviet Union agreed to help in setting up of the
Visakhapatnam Steel Plant.
Sixth Five year plan (1980-1985):
The construction activities were started at Visakhapatnam Steel Plant
with a big bang and top priority was accorded to start the plant. Schemes for
modernization of Bhilai Steel Plant, Rourkela Steel Plant, Durgapur Steel Plant and
Tata Iron and Steel Company were initiated. Capacity at the end of sixth five year
plan from 6 integrated plants stood 11.5 million tones.
Seventh five year plan (1986-1991):
Expansion work at Bhilai and Bokaro Steel Plant was completed.
Progress of Visakhapatnam Steel Plant picked up and the rationalized concept has
been introduced to commission the plant with 3 million tone capacity by 1990.
Eight Five year plan (1992-1997):
The Visakhapatnam Steel Plant was commissioned in 1992. The plant
started its production and its cost became around Rs.8, 755 cores. Modernization
of other steel plants was also duly envisaged.
Ninth Five year plan (1997-2002):
Visakhapatnam steel plant had foreseen a 7% growth during the
entire plan period.
Tenth Five Year Plan (2002-2007):
Steel industry registers the growth of 9.9 % Visakhapatnam steel plant
high regime targets achieved the best of them.
Eleventh Five Year Plan (2007-2012):
Steel industry is trying to achieve its vision and mission by 2010 or
during this entire plan period.
The technology revolution in steel making has led to the problems of
today. Until the 1980’s barriers to entry in the Industry were prohibitive. With
new steel making technologies, the structure of the Industry changes in the mid-
1980. With the addition of new capacity through the mid-1990, supply exceeded
demand for the first time in the century, leading to severe competition in the world
market.
The pricing structure in the past 20 years has grown increasingly
“competitive”. But with each passing year, an ever rising number of steel mills the
world over have come to believe that their production actions make no difference
when it comes it pricing. The strategy has to maximize the output as long as prices
remain above their marginal cost. Hence price competition has grown severe, even
at high operating rates.
With capacity additions becoming easier, surplus capacity particularly in
developing regions will be a problem in the coming years. The world steel market
in 2001 moved largely downhill, with volume and prices sinking rapidly over the
year until early 2002.
Looking back to the mid-1990 the global steel industry has suffered through,
1 In 1995, a pricing “death spiral” when the global economy was rising
2 In 1998 a “death spiral” when the global economy was stagnant after the Asian
Financial Crisis.
3 In 2000, a “death spiral” when the global economy was booming
4 In the second half of 2001, after a moderate recovery in the first half of the
year, a renewed price collapse
The world leaders in steel production were the Erst-while Soviet Union, the
United States, the United Kingdom, France and Germany. However over the last
25 years, there has been a shift from the western to the eastern hemisphere. Now
China is the largest producer in the world. India, with a capacity of 34 million
tones with an actual production of 30 million tones, continues to have unutilized
capacity. One exception is Rashtriya Ispat Nigam Limited which has raised its
production by 10 per cent with all major units exceeding their rated capacities with
the initiatives taken by the Government in meeting infrastructure needs, the
demand for steel has started showing significant improving.
At present India is the 10th largest producer of steel in the world. In India, a
major part of steel is consumed in engineering applications, followed by
automobiles and construction. The growth of steel, as is well known, is dependent
upon the growth of the economy, industrial production and infrastructure sectors.
Over the last few years the performance of the Indian steel industry has been
adversely affected due to overcapacity, cheap imports, economic slowdown,
declining global steel prices and also anti dumping duty imposed by USA on
Indian exports. Most major steel companies, with the exception of Tata Steel, have
thus been reporting losses.
2.3 Industry Classification
The industry classification based on product categories and the major
producers can be divided into the following:
Iron ore – National Mineral Development Corporation (NMDC), Kudremukh Iron
Ore Co (KIOCL) and Sesa Goa (Sesa) are the major merchant producers of iron
ore. SAIL and Tata Steel have their captive.
Pig iron – KIOCL, Sesa Goa and Usha Ispat. Apart from them there are many
mini blast furnace (MBF) pig iron producers and even integrated steel plants of
SAIL and RINL produce a significant amount of pig iron.
Sponge Iron – Essar Steel, Ispat Industries, Vikram Ispat (a division of Grasim)
are the major producers of gas based sponge iron.
Flat steel products:
SAIL, Tata Steel, Essar Steel, Ispat Industries and Jindal Vijaynagar (JVSL)
are the major producers of hot rolled coils (HRC). SAIL, Tata Steel, Ispat
Industries, Jindal group of companies, Uttam Steel and Bhushan Steel are the big
producers of cold rolled coils/sheets (CRC) and galvanized sheets 9GP/GC).
Long products – RINL, SAIL and Tata Steel are the major producers of long
products.
Alloy Steel products – Mukand, Mahindra Ugine (Musco) and Kalyani Carpenter
are some of the largest producers of alloy steel in the country, which is primarily
used, in automotive and engineering applications.
Based on the routes of production, the industry and major producers can be
classified into the following categories;
Integrated producers – SAIL, RINL, Tata Steel and JVSL are the largest primary
steel producers.
Secondary users – Essar Steel, Ispat Industries and Lloyds steel are the largest
producers of steel through the secondary route production.
The global steel industry has witnessed several revolutionary changes during
the last century. The changes have been in the realms of both technology &
business strategy. The ultimate object of all these changes is to remain competitive
and open global market.
The Indian steel industry is growing very rigorously with the major
producers like SAIL, RINL, TISCO, JVL and many others. Our steel industry has
amply demonstrated its ability of adopts to the changing scenario and to survive in
the global market that is becoming increasingly competitive. This has been
possible to a large extent due to the adoption of innovative operating practices and
modern technologies.
Industrial Development in India has reached a high degree of self-reliance,
and the steel industry occupies a primary place in the strategy for future
development. At present the production of steel industry country is 34Mt. the
public sector steel industry has been restructured to meet challenges and a separate
fund has been established for modernization and future development of the
industry. It is now being proposed that Indian steel industry should Gear up to
achieve a production level of about 100 Mt by the year2000.
2.5 GLOBAL SCENARIO (As per IISI)
1 In March’ 2005 world Crude steel out put was 928Mt when compared
to march 2004 (872Mt), ∙The change in percentage was 6.5%.
2 China remained the world largest crude steel producer in 2005 also
(275Mt) followed by Japan (96Mt) and USA (81Mt). India occupied
8th position (42Mt).
3 USA remained the largest importer of semi finished and finished
products in 2002 followed by China and Germany.
4 Japan remained the largest exporter of semi finished and finished steel
products in 2002 followed by Russia and Ukraine.
5 Other significant recent developments in the global steel scenario
have been: Under the auspices of the OECD (Organization For
Economic Co-operation & Development) the negotiations among the
major steel producing countries for a steel subsidy agreement (SSA)
held in 2003 with the objective to agree on a complete negotiating test
for the SSA by the Middle of 2004. It also set subsidies for the steel
industry of a ceiling of 0.5% of the value of production to be used
exclusively for Research & Development
6 The global economy witnessed a gradual recovery from late 2003 on
words. China has become one of the major factors currently driving
the world economy.
7 As a result of these economic developments IISI has projected an
increase by 6.2% or 5.3 Mt in 2004 in the global consumption of
finished steel products. IISI has split the growth into two separate
areas, china and the rest of the world (ROW). Steel consumption in
china has been estimated to increase by 13.1% or 31Mt in 2004.
2.6 MARKET SCENARIO
The year 2004-05 was a remarkable one for the steel industry with the
world crude steel production crossing the one billion marks for the first time in the
history of the steel industry. The world GDP growth about 4% lends supports to
the expectations the steel market is all set for strong revival after prolonged period
of depression .The Indian economy also become robust with annual growth rates of
7-8 % this will provide a major boost the steel industry. With the nations focus on
infrastructure development coupled with the growth in the manufacturing sector,
the Indian steel industry all set for northward movement. The draft national steel
police envisage production of 60 Mt by 2012 and 110Mt by2020, and annual
growth rate of 6-7%. All this should there fore augur well for the Indian steel
industry.
2.7 PRODUCTION SCENARIO
1 Steel industry was de-licensed and decontrolled in 1991&1992 respectively.
2 India is the 8th largest producer of steel in the world.
3 In 2003-04 finished steel production was 36.193Mt.
4 Pig iron production in 2003-04 was 5.221Mt.
5 Sponge iron production was 80.85 Mt during the year 2003 The annual growth
rate of crude steel production in 2002-03was 8% and in 2003-04 was
VISAKHAPATNAM STEEL PLANT PROFILE
HISTORY:
Steel in today’s economy has occupied a position inseparable from the
human routine. There is no place and no function, which the present day human
can imagine working with out the use of steel. Naming a few, where we find these,
recollecting the routine helps us. From tongue cleaners to shaving kits and blades,
from utensils to frying pans, from mugs to buckets to water filters, from chassis to
the engine of automobiles and the list goes on.
The govt. of India has recognized the importance of steel in Indian industry
and established the following steel plants, before it actually set up VSP/RINL. The
details of those are tabulated below
TABLE 3.1
Sl.No. Steel plant Collaborated by
1 Durgapur steel plant Britain
2 Bhilai steel plant Erstwhile USSR
3 Bokaro steel plant Erstwhile USSR
4 Rourkela steel plant Germany
3.1 INTRODUCTION:
Steel occupies the foremost place amongst the materials in use today and
pervades all walks of life. All the key discoveries of the human genius – for
instance, steam engine, railway, means of communication and connection,
automobile, aero plane and computers, are in one way or other, fastened together
with steel and with its sagacious and multifarious application. Seeds were thus
sown for the construction of a modern & sophisticated Steel Plant having annual
capacity of 3.4 Million Tones of hot metal. An agreement was signed between
Governments of India and the erstwhile USSR on June 12th, 1979 for setting up of
an Integrated Steel Plant to produce structural & long products on the basis of
detailed Project report prepared by M/s M.N. Dustur & Company. A
Comprehensive revised DPR jointly prepared by Soviets & M/s Dustur &
Company was submitted in Nov' 1980 to Govt. of India
The project was estimated to cost Rs.8397.28 Cr. based on prices as on
quarter of 1981. However, on completion of construction and commissioning of
the whole plant in 1992, the cost escalated to around Rs.8,500 Cr. Unlike other
integrated steel plants in India, Visakhapatnam steel plant (VSP) is one of the most
modern steel plants in the country. The plant was dedicated to the nation on 1 st
August 1992 by the then Prime Minister, Shri PV Narasimha Rao. The
construction of the Plant started on 1st February 1982. Government of India on
18th Feb'82 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL).
New technology, large-scale computerization and automation etc., are
incorporated in the plant. To operate the plant at international levels and attain
such labour productivity, the organizational manpower has been rationalized.
The plant has a capacity if producing 3.0 mT of liquid steel and 2,656 mT of
saleable steel.
3.2 MAJOR UNITS
Department
Annual
Capacity
(‘000 T)
Units (3.0 MT Stage)
Coke Ovens 2,261 4 Batteries of 67 Ovens &7 Mtrs. Height
Sinter plant 5,256 2 Sinter machines of 312 Sq. Mtr. Grate area each
Blast furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume each
Steel melt
shop3,000
3 LD Convertors each of 133 Cu. Mtr. Volume & six 4
strand bloom casters
LMMM 710 4 stand finishing Mill
WRM 850 2x10 stand finishing Mill
MMSM 850 6 stand finishing Mill
3.3Main Products of VSP
Steel Products By-Products
Angles Nut Coke Granulated Slag
Billets Coke Dust Lime Fines
Channels Coal Tar Ammonium Sulphate
Beams Anthracene Oil
SquaresHP
Naphthalene
Flats Benzene
Rounds Toulene
Re-bars Zylene
Wire Rods Wash Oil
3.4 Visakhapatnam Steel Plant Technology: state-of-the-art
7 meter tall Coke Oven Batteries with coke dry quenching
Biggest Blast Furnaces in the country
Bell-less top charging system in Blast Furnace
100% slag granulation at the Blast Furnace cast house
Suppressed combustion – LD gas recovery system
3.5 Major Sources of Raw Materials
RAW MATERIALS SOURCE
Iron ore lumps & fines.
BF limestone.
SMS limestone.
BF dolomite.
SMS dolomite.
Manganese ore.
Boiler coal.
Coking coal.
Medium coking coal
(MCC)
Bailadilla, MP.
Jaggayyapeta, AP.
UAE.
Madharam, AP.
Madharam, AP.
Gharbam, AP.
Talcher, Orissa.
Australia.
Gidi/Swang/Rajarappa/Kargali.
3.6 Water supply:
Operational water requirement of 36 mgd is being met from the Yeleru
water supply scheme.
3.7 Power Supply:
Operational Power requirement of 180 to 200 MW is being met through
captive Power Plant. The capacity of the power plant is 286.5 MW.
Visakhapatnam Steel Plant is exporting 60MW power to Andhra Pradesh State
Electricity Board (APSEB).
3.8 MAJOR DEPARTMENTS
Raw Material Handling Plant:
VSP annually requires quality raw materials viz. Iron Ore, fluxes
(Lime stone, Dolomite), coking and non coking coals etc. to the tune of 12-13
Million Tonnes for producing 3 Million Tonnes of Liquid Steel. To handle such a
large volume of incoming raw materials received from different sources and to
ensure timely supply of consistent quality of feed materials to different VSP
consumers, Raw Material Handling Plant serves a vital function. This unit is
provided with elaborate unloading, blending, stacking & reclaiming facilities.
Coke ovens & Coal Chemical Plant (CO&CCP):
Blast Furnaces, the mother units of any Steel plant require huge
quantities of strong, hard and porous solid fuel in the form of hard metallurgical
coke for supplying necessary heat for carrying out the reduction and refining
reactions besides acting as a reducing agent. At VSP there are three Coke Oven
Batteries, 7 Meter tall and having 67 Ovens each. Each oven is having a volume of
41.6 cu. meters & can hold up to 31.6 Tonnes of dry coal charge. There are 3 Coke
Dry Cooling Plants (CDCP) each having 4 cooling chambers. Nitrogen gas is used
as the Cooling medium. The heat recovery from nitrogen is done by generating
steam and expanding in two backpressure turbines to produce 7.5 MW each.
The Coal chemicals such as Benzole (& its products), Tar (& its
products), and Ammonium Sulphate etc. are extracted in Coal Chemical Plant from
C.O. Gas.
Sinter Plant:
Sinter is a hard & porous ferrous material obtained by agglomeration
of Iron Ore fines, Coke breeze, Lime Stone fines, Metallurgical wastes viz. Flue
dust, mill scale, LD slag etc. Sinter is a better feed material to Blast Furnace in
comparison to Iron Ore lumps and its usage in Blast furnaces help in increasing
productivity, decreasing the coke rate & improving the quality of Hot Metal
produced. Hot Sinter discharged from Sintering machine is crushed to +5 mm - 50
mm size and cooled before dispatching to Blast Furnaces.
The dust laden air from the machines are cleaned in scrubbers &
electrostatic precipitators to reduce the dust content to 100 mg/ m3 level before
allowing to escape into the atmosphere and thus helping in maintaining a clean &
dust free environment.
Blast Furnaces:
VSP has two 3200 cu. meter Blast Furnaces (largest in India)
equipped with Paulworth Bell less top equipment with conveyor charging. Rightly
named as " Godavari " & " Krishna " after the two rivers of AP, the furnaces will
help VSP in bringing prosperity to the state of Andhra Pradesh.
Provision exists for granulation of 100% liquid slag at blast furnace
cast house and utilization of blast furnace gas top pressure (1.5-2.0 atmospheric
pressure) to generate 12 MW of power in each furnace. The two furnaces are
rated to produce 9720 Tonnes of Hot Metal daily or 3.4 Million Tonnes of low
Sulphur Hot Metal annually.
Steel Melt Shop:
VSP produces steel employing three numbers of top blown Oxygen
Converters called LD Converters or Basic Oxygen Furnaces / Converters. Each
converter is of 133 cu. Meter volume, rated to produce 3 Million Tonnes of Liquid
Steel annually. Besides Hot Metal, Steel Scrap, Fluxes such as calcined lime or
Dolomite form part of the charge to the Converters.
This process can make different grades of steel of Superior quality by
controlling the Oxygen blow or addition of various Ferro alloys or special
additives such as FeSi, FeMn, SiMn, Coke Breeze, and Aluminum etc.
Rolling Mills:
Blooms produced in SMS-CCD are shaped into products such as
Billets, rounds, squares, angles (equal & unequal), Channels, I-PE Beams, HE
Beams, Wire rods and reinforcements bars by rolling them in three sophisticated
high capacity, high speed, fully automated rolling mills, namely Light & Medium
Merchant Mills (LMMM), Wire Rod Mill (WRM) and Medium Merchant and
Structural Mill (MMSM).
Light & Medium Merchant Mill (LMMM):
LMMM comprises of two units. In the Billet/Break down mill 250 x
320 mm size blooms are rolled into Billets of 125 x 125 mm size. Billets are
supplied from this mill to Bar Mill of LMMM & Wire Rod Mill. The Bar mill is
facilitated with temp core heat treatment technology evaporative cooling system
in walking beam furnaces, automated pilling & bundling facilities, high degree of
automation and computerization. The mill is designed to produce 710,000 tons
per annum of various finished products.
Wire Rod Mill (WRM):
Wire Rod Mill is fully automated & sophisticated mill. The billets are
rolled in 4 strand, high-speed continuous mill having a capacity of 8,50,000
Tonnes of Wire Rod Coils. The mill produces rounds in 5.5 - 14 mm range and
rebars in 8, 10 & 12 mm sizes. The mill is equipped with standard and Retarded
Stelmore controlled cooling lines for producing high quality Wire rods in Low,
Medium & High carbon grade meeting the stringent National & International stan-
dards.
3.9 AUXILIARY FACILITIES:
Power Generation & Distribution:
The average power demands at all units of VSP when operating the
full capacity will be 221 MW. The captive generation capacity of 270 MW is
sufficient to meet all the plant needs in normal operation time. The short fall of
power is availed from APSEB grid. The agreement with APSEB provides for
exporting of surplus power to APSEB. The captive generating capacity comprises
of
- TPP -247.5 MW (3x60 MW + 1 X 67.5 MW)
- Back pressure Turbines (C&CCD)* - 2 x 7.5 MW
- Gas Expansion Turbines (BF / ces)* - 2x12 MW
Power plant also meets the Air Blast requirements of Blast Furnaces thro' 3 Turbo
blowers each of 6067 NM 3 / hr capacity.
Traffic Department:
A steel plant of the size of VSP has to handle around 60 to 65 MT
traffic comprising of incoming traffic in the form of raw materials and out going
traffic in the form of finished or saleable steel, and also the in process traffic such
as cast pig iron, mill scrap, hot metal. Of this 50% is transported by belt conveyors,
45% by Rail Transport and 5% by Road. VSP has the distinction of having
peripheral unloading system for the 1st time in Steel Industry.
Engineering shops & Foundry (ES & F):
Engineering Shops are set up to meet the requirements of Ferrous &
Non Ferrous spares of different departments. This complex is divided into 1. Forge
Shop 2. Structural shop 3. Foundry 4. Central machine shop 5. Wood Working
Shop and 6. Utility Equipment Repair Shop (UERS). In the Structural shops the
fabricated structural of about 4500 Tonnes are produced annually and the input
consisting of sheets, plates, channels, angles beams etc. In Foundry Iron castings
up to a weight of 5 tons and non-ferrous casting up to a weight of 1 ton are
produced. 2600 Tonnes of iron castings and 200 tones of non-ferrous castings are
produced annually.
Central Maintenance Electrical:
Maintenance of all H.T motors, L.T motors and DC motors of above
200KW. There are 810 such large rotating electrical machines spread through out
the plant including 3 Nos. of 60 MW Turbo-Generators, 1 No of 67.5M TG in
TPP, 2 no's of Back Pressure Turbo Generators of 7.5 MW each and 2 Nos. of Gas
Expansion Turbo- Generator of 12 MW each. The services provided are as
mentioned below.
a) Repairs, Maintenance and condition monitoring of all rotating Electrical
machines of the plant. The job includes transportation, Overhauling and re-
erection with precision alignment.
b) Maintenance of Electrics of all streetlights, Tower lights and Weigh Bridges
through out the plant.
3.10 Employee Profile:RINL has a committed work force of 16,574 as on 01-04-2006.
Out of these, 3532 are executives, 1105 are in supervisory cadre and 11937 are
non-executives. In addition, there are about 7800 outsourced employees in many
non-core activities in various key and support processes. The age profile of the
employees is given at (Tab.O.2 (i)) the qualification profile of the employees is at
(Tab.O.2 (ii)) and the distribution of manpower, division-wise, is at (Tab.O.2 (iii)).
VSP has rationalised the designations of non-executive employees. VSP has
introduced multi-skilling concept since inception and the employees are trained as
per this concept. VSP follows a system of overlapping shifts to ensure smooth
change over. Besides the regular manpower, about 5000 contract workers are on
the rolls and their safety and health requirements are fulfilled as per the certified
OHSMS.
(Years) >55 51- 55 41-50 30-40 <30
Executives (%) 5.11 10.96 43.84 37.11 2.98
Non-executives
(%) 2.24 6.4 50.72 40.4 0.24
Total (%) 3.04 7.67 48.79 39.48 1.01
Age profile
Tab.O.2 (i)
Qualification profile
Qualification Graduate/
PG
Engg. Diplom
a
ITI Literates/
Non-
metriculates
Illiterate
s
Executives (%) 28.27 50.29 21.44 Nil Nil Nil
Non-
Executives (%) 5.09 0.59 5.89 54.3 34.13
Nil
Total (%) 11.59 14.49 10.24 39.1 24.58 Nil
Tab.O.2 (ii)
Man power at a glance as on 31-03-2009
Works Projects Mines Others Total
Executives 3249 329 93 1547 5218
Non
Executives
10476 63 267 1201 12007
TOTAL EMPLOYEES 17,225
Tab.O.2 (iii)
3.12 Organizational structure:
The organization structure and supporting management structure is depicted
at Fig.03 below. Besides the CMD and his team of Directors, there are two
representatives of the GOI / MOS on Board. The performance expectations of the
key stakeholder i.e. MOS, are captured through the annual MOU, which is drafted
keeping in view, the vision, mission, values, objectives and strategies and also
taking stock of the company’s past performance and capability. Annual
sustainability plans are stretch targets drawn from MOU and our strategic vision.
The progress w.r.t. MOU is reviewed by the BOD every quarter and by CMD
every month.
3.13 Vizag Steel:
Thinking, learning … Vizag Steel has a history of overcoming odds right
from inception. Catapulted into the era of globalization & liberalization just after
commissioning, the journey of this young plant from ‘debts to dividend’ reiterates
that, the sacrifice made by those valiant people who gave up their lives in the
struggle for the creation of Vizag Steel was not in vain. Energy conservation,
environmental preservation, safety in work place, and occupational health gets
highest priority in this regard are reproduced below.
Quality Policy
Environment Policy
Energy Policy
OSHAS Policy
Human Resource Policy
Human Resource Development Policy
HRD Group – Key Initiatives
Customer Policy
Information Technology Policy
HIV/AIDS Policy
3.14 COMPANY’S CORPORATE SOCIAL RESPONSIBILITY
RINL’s concern for the society is reflected in its vision, mission, objectives
and core values. The statement, “We shall be a respected corporate citizen, ensure
clean and green environment and develop vibrant communities around us” forms a
part of the vision of the company. “Concern for environment” is one the five core
values. Major CSR activities undertaken by RINL are as under:
Environment
Education
Health Services
Peripheral Development
Sports and games
Contributions and Sponsorships
Promoting National Integration
With a view to improving the standard of living of the people in the
neighbouring localities/villages and in the process improves its image; RINL
has taken up some important projects, which are indicated below.
1 Supply of drinking water to Gajuwaka (adjacent municipality)
2 Provision of roads and lighting in RH colonies
3 Donation of medical equipment to King George Hospital (KGH)
4 Construction of sports towers in port stadium, Visakhapatnam
5 Association in preparation of Visakhapatnam Development report
6 Major financial assistance for water pumping system from Godavari river
to Visakhapatnam
7 Financial assistance to agencies engaged in development of the mentally
challenged children
Apart from this, the company takes up publicity campaigns to make the people
aware of the products, services and performance of RINL. In order to maintain
specific identity of RINL’s products, the company initiated the process of
branding its products. The TMT bars produced at RINL have been branded as
Vizag TMT and the structurals as Vizag Ukku.
Training & Development
The needs of induction training, skill up gradation, unit training, computer
related training, refresher training, faculty development etc. are attended by the
Training & Development Centre while management development and attitudinal
development are taken care at the Centre for HRD.
Marketing Network
VSP has a wide network of regional offices and branch offices spread across the country
for marketing of its products. There are 5 Regional Offices and 23 Branch Offices. The details of
Regional Offices and Branch Offices are brought out below:
Region Location of Regional
Office
Branches
East Kolkata Bhubaneswar, Kolkata, Patna
North Delhi Agra, Chandigarh, Dehradun, Delhi,
Faridabad, Ghaziabad, Jaipur, Kanpur,
Ludhiana
West Mumbai Ahmedabad, Indore, Mumbai, Nagpur,
Pune
South Chennai Bangalore, Chennai, Kochi, Coimbatore
Andhra Visakhapatnam Hyderabad, Visakhapatnam
Further, VSP has 4 Consignment Sales Agents in Raipur, Jamshedpur,
Pondichery and Jammu for selling VSP’s products.
Pollution Control and Environmental Protection
Generally, integrated steel plant is seen as a major contributor to
environmental pollution as it discharges volume of waste products. Elaborate
measures have been adapted to combat air and water pollution in Visakhapatnam
Steel Plant. In order to be echo-friendly, Visakhapatnam Steel Plant has planted
more than 3.4 million trees over an area of 35 Sq. Kms. and incorporated various
technologies at a cost of Rs.460 Crores towards pollution control measures.
Human Resource Management
Human resource initiatives at Visakhapatnam Steel Plant are closely linked
to the corporate strategy of the organization. Visakhapatnam Steel Plant has
exemplary industrial relations where the entire workforce works as a well-knit
team for the progress of the company. The productive environment prevailing in
the company fosters an atmosphere of growth-both for the employees and for the
company. Visakhapatnam Steel Plant has introduced multi skilling concept since
inception and the employees are trained as per this concept. Visakhapatnam Steel
Plant has adopted a system of overlapping shifts, the first of its kind, in the
industry. This system ensures smooth change over of the shifts and uninterrupted
pace of operation of the plant during the shift change over. The labour productivity
is 389 tonnes/man/year for (2007-08).
Training and Human Resource Development
Training and Human Resource Development are given due emphasis at
RINL. Each year, a minimum of one third of the employees undergo various
training sessions either at Training & Development Centre or at Centre for HRD
for sharpening their skills on the technical and management related issues.
Training is also given in the area of safety, fire prevention, and occupational health
besides on the job at the shop floor.
Welfare Measures in VSP
Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, considers
human resources as the most important of all the resources in the company. Its
development & welfare have therefore been given the utmost emphasis in the
overall policy of Human Resources Management of the company. Pursuant to this
policy, VSP has taken several initiatives for introducing & implementing Statutory
as well as Non-Statutory Welfare schemes which together impart and propagate the
feeling that the “Company cares for its employees”.
Besides the Statutory Welfare Measures, the company has been taken up the Non-
Statutory Welfare and Social Security Schemes for the benefit of the employees and their family
members, which are detailed below:
Statutory Welfare Measures Non-Statutory Welfare Measures
Canteen Facilities Facilities For Education
Baby Creche Scholarships
First Aid Facilities Medical Facilities
Water Coolers Housing Facilities
Leave & Maternity Leave Work Dress
Factories Act Vehicle Advances To Employees
Gratuity House Building Advance
Workmen’s Compensation Motivational Schemes
Contract Labour Welfare
3.15 Achievements and Awards
The Visakhapatnam Steel Plant Bagged the Prestigious PM’s Trophy for the
year 2002-03 for its best performance in the integrated steel sector of the country.
Some of the major awards received by Visakhapatnam Steel Plant are in the
area of energy conservation, environment protection, safety, Quality, Quality
Circles, Rajbhasha, Memorandum of Understanding, sports related awards and a
number of awards at the individual level.
Visakhapatnam Steel Plant achieved the distinction of bettering some of the
global benchmark thereby becoming an efficient and productive integrated Steel
Plant in the Country.
Some of the important awards received by RINL are indicated below:
1 ISO 9002 for SMS and all the downstream units – a unique distinction in the
Indian Steel Industry
2 Indira Priya Darshini Vriskha Mitra Award: 1992-93
3 Nehru Memorial National Award for Pollution Control: 1992-93 & 1993-94
4 EEPC Export Excellence Award: 1994-95
5 CII (southern region) Energy Conservation Award: 1995-96
6 Golden Peacock (1St prize) “National Quality Award-96” IIM
7 Steel Minister’s Trophy for “Best Safety Performance – 1996”
8 Selected for “World Quality Commitment Award – 1997” of J*BAN, Spain
9 Gold Star Award for Excellent performance in Productivity
10 Udyog Excellence Gold Medal Award for Excellence in Steel Industry
11 Excellence Award for outstanding performance in Productivity management,
Quality & Innovation
Statistical Information
I. Production Performance (‘000 Tonnes)
Year Hot Metal Liquid Steel Saleable Steel Labour
Productivity
1998 – 99 2,510 2,225 21,932 161
1999 – 00 2,943 2,656 2,382 192
2000 – 01 3,165 2,909 2,507 211
2001 – 02 3,485 3,083 2,757 228
2002 – 03 3,941 3,356 3,056 253
2003 – 04 4,055 3,508 3,169 262
2004--05 3,920 3,560 3,173 398
2005--06 4,153 3,603 3,237 414
2006--07 4,046 3,606 3,290 413
2007--08 3,913 3,322 3,074 389
2008-09 3,566 3,866 3,756 340
2009-10 4,276 4,596 3,204 280
2010-11 3,265 3,450 2,467 3,26
II. Commercial Performance (Rs. Crs)
Year Sales Turnover Domestic Sales Exports
2000 – 01 3,436 3,122 314
2001 – 02 4,081 3,710 371
2002 – 03 5,059 4,433 626
2003 – 04 6,174 5,406 768
2004 – 05 8,181 7,933 248
2005 – 06 8,469 8,026 443
2006 – 07 9,131 8,487 644
2007 – 08 10,433 9,878 555
2008 -09 10,866 9,956 910
2009 -10 11,240 10,567 673
2010 -11 12,134 11,250 884
III. Financial Performance (Rs. Crs)
Year Gross Margin Cash Profit Net Profit
1998- 99 15 (-) 346 -
1999- 00 252 (-) 130 (-) 562
2000- 01 504 153 (-) 291
2001- 02 690 400 (-) 75
2002 - 03 1,049 915 521
2003 - 04 2,073 2,024 1,547
2004-05 3,271 3,260 2,008
2005-06 2,383 2,355 1,251
2006-07 2,633 2,584 1,363
2007-08 3,515 3,483 1,943
2008-09 3,644 3,514 1,134
2009-10 2,678 2,824 1,220
2010-11 3,456 3,246 1,024
CHAPTER – 3
THEORITICAL
FRAME WORK OF
THE STUDY
THEORITICAL FRAME WORK OF THE STUDY
INDUSTRIAL RELATIONS
Industrial Relations is concerned with the relationship between
Management representing the holders of capital and trade unions representing the
holders of labour power regarding the employment, unemployment, terms of
employment and unemployment, conditions of employment and unemployment
and conditions of work. Industrial relations is a developing and dynamic concept
and does not limit itself merely to the complex of relations between the unions and
management, but also refers to the general web of relationships normally obtaining
between employees themselves. Both parties to industrial relations have a
common interest in industry, but many a time, they are found to be pulling in
different directions that lead to industrial unrest. Therefore, it has become
necessary to secure the cooperation of both workers and management to achieve
good industrial relations.
Besides management and workers, state is another party associated with
industrial relations. The interference of government in industrial relations through
legal and administrative measures is quite common. Thus, the area of industrial
relations has been extended relations among the state, employer and employees.
Definition:
According to Encyclopedia Britannica:
“The subject of industrial relations includes individual relations and joint
consultation between employers and workers at the place of work, collective
relations between employers and their organizations and trade unions and part
played by the state in regulating these relations”.
According to Dale Yoder:
“The term industrial relations refers to the relationship
between management and employees or among employees and their organization
that arise out of employment”.
Major Players to Industrial Relations:
Simply stated, industrial relations are the outcome of the employment relations
in industry. The government of a nation influences these relations to a great
extent. Thus, there are three major players in industrial relations.
1 Workers and their Organizations:
The personal characteristics of workers, their culture, educational
attainments, qualifications, skills, attitude towards work, etc play an important
role in industrial relations. Workers’ organizations, known as trade unions are
political institutions. They put pressure on the management for the achievement
of these objectives.
2 Employers and their Organizations:
The Employers are a very important variable in industrial relations. They
provide employment to workers and try to regulate their behavior for getting
high productivity from them. Industrial unrest generally arised when the
employers’ demand from the workers and other benefits. These associations put
pressure on the trade unions and the government. They also participate in
tripartite bodies constituted by the government to regulate industrial relations.
3 Government:
The Government exerts an important influence on industrial relations
through such measures as providing employment, intervening in working
relationships and regulating wages, bonus and working conditions through
various laws relating to labour. The government keeps an eye on both the trade
unions and employers’ organizations to regulate their activities in the interest of
the nation.
Indian Industrial Relations Spectrum
The spectrums of “Industrial Relations” scenario in India today present four
distinct pictures.
Scenario-1:
A sweet heart relationship scenario representing Industrial peace and
harmony characterized by
(a) Mutual trust
(b)Mere perfect collaboration and
(c) Even “collusion with unions”
Scenario-2:
A “cat and Dog” scenario, resulting in frequent conflict, work-stoppages and
strikes, lock-outs, characterized by
(a) Complete distrust
(b)Mutual blackmailing on issues and
(c) Product losses
Scenario-3:
A “Blow-hot, Blow-cold” scenario some how pulling along relationship
characterized by
(a) Some time peace
(b)Some time conflict
(c) Most of the organizations fit into this category.
Scenario-4
A “peace in the Grave” or “Marriage of convenience” situation
Characterized by
(a) Apparent peace
(b)Patching of an issue
(c) Self-out of managerial authority
(d)Constant sickness of the industry
Most of the sick Government Industries are the examples. While certain
aspects of Industrial Relations scenario have been cited above a close examination
of the government, judiciary, a worker involved in the Industrial relations scenario
also requires proper appreciation.
The Government has also stepped in and played an important role in
establishing harmonious Industrial Relations, partly because it has itself become an
employer of millions of workers but mainly because it has enacted a vast body of
legislation to safeguard the rights of industrial workers and management by
enlisting cooperation of both. The objectives of Industrial Relations are to
facilitate good relationship between employers and employees.
The quality of this relationship differs Company-to-Company, industries and
economies. These relationships are based on class contradictions and antagonism
historically born out of the social structure, which is determined by the mode of
production.
Steel Comprises one of the most important inputs in all sectors of the
economy. Steel Industry is both a basic and core industry. The economy of any
nation depends on a strong base of iron and steel Industry in that nation. The Steel
Industry is both capital and labour intensive. The working conditions are also very
hazardous. So maintenance of Good Industrial Relations plays a vital role since it
has directive impact on the production and productivity of an industry.
Coming to Visakhapatnam Steel Plant a Public Sector Unit, study of
Industrial Relations at Visakhapatnam Steel Plant is very helpful to me to get
experience on Industrial Relations.
INDUSTRIAL RELATIONS IN VISAKHAPATNAM
STEEL PLANT
It has been considered of crucial importance in Visakhapatnam Steel
Plant of establishing and sustaining a productive work culture. Several initiatives
have been taken towards it. The concept of optimum utilization of Human
Resources was adopted through Multi-skill and Multi-pattern of working with
emphasis on flexibility in job deployment. Result oriented environment was broad
through tailor made HRD programmes, attitudinal change and positive work ethics.
To carry on with such an Organizational Climate Visakhapatnam Steel Plant
has suitable supportive systems and structures for productive Industrial Relations
Machinery.
Employee Relations
Usually, in any organization, Industrial Relations climate depends upon the
relationship with workmen and their unions. For this, the initial years are very
crucial. An approach characterized by courage, firmness and total commitment to
company’s interest is essential to build a right relationship over years. Whereas, in
Visakhapatnam Steel Plant, the initial period focused on educating the unions,
establishing rapport etc., to attain the commitment of unions, innovative
agreements have been signed that reflects the Company’s Mission and Objectives.
The matters like working hours, holidays, overlapping shifts, transport subsidy,
canteen, production-linked incentives, Visakhapatnam Steel Plant made long term
agreements with the unions. The modern practices of Industrial Relations have
been put to practice, which needs few years more to make their full-fledged
presence. Industrial relations will be different at commissioning stage to that of
the Operational level. For its smooth implementation, sustaining cooperation and
collaboration between the management and unions is much needed.
CENTRAL EMPLOYEE RELATIONS SECTION-ROLE
Central Employee Relations Section was earlier called as Industrial
Relation Section. It is a wing of Personnel Department
Central Employee Relations Section acts as a bridge between the
management and the Trade unions / employees. It plays major role for maintaining
Industrial Democracy.
Personnel Executives function as Industrial Relations Manager. They
are placed in each zone also in order to facilitate close relations with the
employees. They, in turn, provide the information to the Plant Head and facilitate
the process of Industrial Relations at Central Employee Relations.
The functions of Central Employee Relations are to gather the information
regarding the activities of Trade Unions and Employee Associations, predict the
possible outcomes and to take preventive measures to sustain Industrial Peace and
Democracy and to ensure uninterrupted production.
The main task of this section is to settle industrial disputes amicably within
less time. Signing of Memorandum Settlements, Coordination with the unions,
liaison with State & Central Labour Departments and Police and CISF.
Areas focused
1 Sensitive to Employees Grievance
2 Expeditious Redressal of Grievances
3 Reduction of Time Cycle
4 Zero-grievance
5 Inculcation of Union Cooperation and Collaboration
6 Creating awareness among Unions towards the Organisational goals
7 Confidence building measure
Central Employee Relations also helps in conducting Union Elections i.e., for
every two years in Visakhapatnam Steel Plant.
SALIENT FEATURES OF INDUSTRIAL RELATIONS IN VSP
1. Labour Productivity of Visakhapatnam Steel Plant is highest in integrated steel
plants in India.
2. Presently, 21 Registered Trade Unions are functioning at VSP. Out of these, 3
unions viz., Visakha Steel Employees Congress (INTUC), Steel Plant
Employees Union (CITU) and Visakha Steel Workers Union (AITUC), have
the support of more than 90% of the total electorate. There are 05 unions
operating for espousing the cause of contract labour. In addition, three
unions each are also separately registered at Captive Mines located at
Jaggayyapeta and Madharam. By and large, a smooth and cordial IR climate
prevails at VSP.
3. The “Man days Loss” due to IR events, which were brought down considerably
and put at `Zero’ level indicating the peaceful and harmonious industrial
relations scenario in Visakhapatnam Steel Plant.
4. A number of Memorandum of Understandings (MOU), Memorandum of
Settlement (MOS) was arrived at by duly following proper collective
bargaining process. A list of major MOU/MOS arrived since inception, are
placed herewith. These notable features are getting union(s) commitment
for realization of Mission & Objectives, Management Charter of Demands,
Safety & environment matters, Increase of Production & Productivity,
Discipline etc.
5. We were following the practice of resolving any issue with the Recognized
Union through mutual discussions in a cordial atmosphere. However, this
resulted in intense inter-union rivalries and implementation of issues settled
with Recognized Union was found to be difficult for both the Unions and
Management. To over come such a situation, an institutional frame work
has been evolved for Joint Consultation with representatives of 3 major
unions and the representatives of the Management providing scope for
consultations in all major areas like, production, productivity, quality, safety
etc., vide Memorandum of Settlement dated 12.6.96. The Settlement is still
being pursued in true letter and spirit.
TRADE UNIONISM
A Trade Union signifies an organization of workers engaged in securing
certain economic benefits for its members. However, this is not the true view of a
trade union. In the modern context, trade union’s activities are not confined to
mere “securing the economic benefits”. The purview of its activities now includes
even the political and welfare activities undertaken by it for the benefit of its
members.
Trade union is a historical necessity and by product of the Industrial
revolution. For good Industrial Relations, be remembering that trade Unions play a
vital role. With a view to self-protection and self-help, labour has organized itself
under employee associations and unions. Conflict between capital and labour in
Europe and American resulted in the origin of the trade union movements.
(a) Trade Unions Definition :
The trade unions Act, 1926 defines a trade union as meaning--
“Any combination whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and
employers or between workman and workmen, or between employers and
employers or for imposing restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more trade unions.”
(b)Registration of Trade Unions:
Any seven or more members of a trade union can, by subscribing
their names to the rules of the trade union and otherwise complying with the
provisions of this Act, apply for registration under the Act. The application has to
be made to the Registration of Trade Unions appointed by the appropriate
Government for the State (sec3&4). This application must be accompanied by a
copy of the Rules of the Trade Union and a statement containing prescribed
particulars.
The name under which the trade union seeks registration must not be similar to that
of any existing union (S.7). On registration, the Registrar issues o certificate of
registration in the prescribed form. This is conclusive evidence that the said Trade
Union has been duly registered.
Trade union is a necessity and by product of the Industrial Revolution. For
good Industrial Relations, it must be remembered that trade unions play a vital role
in providing a proper work atmosphere and congenial Industrial Relations scenario.
With a view to self-protection and self-help, labour has organized itself under
Employee Associations and Unions. The conflict between capital and labour in
Europe and America resulted in the origin of the Trade Union Movement.
The following are various tools employed by the Trade Unions. They may
use one of the too, or combination of some of them in pursuit of achievement of
their objectives.
Financial Support:
It means the provision of a fund to insure against eventualities and be of some
encouragement to the needy workman. It also acts as a deterrent to a worker from
accepting jobs on terms, which are less advantageous to the work force.
Legal Approach:
Trade Unions also take the law as resort to realize their objectives. Also
they employ the usual methods of propaganda, canvassing etc. to convince the
community and the Government that the measures suggested for adoption will
prove advantageous to the working class. When such aspirations are reflected by
enactment, it satisfies the Trade Unions.
Direct Action:
Implies, strikes, gheraos, procession, work stoppages, demonstrations
etc. This should be discouraged because it is harmful in the long run for both the
employees and employers. This leads to loss in production, strained relations.
THE OBJECTIVES OF TRADE UNIONS:
The following are some of the aims and objectives of trade unions:
1) To secure for the worker fairer wages in the light of the cost of living and
the prevailing standard of living.
2) To improve the worker ‘s working conditions by securing shorter
working hours, better leave facilities, adequate social security benefits,
appropriate educational facilities and other welfare benefits:
3) To assure the workers a share in the increased profitability of an
industrial unit by providing him payment of adequate bonus;
4) To protect the workers interest and more specifically to avoid heir
exploitation;
5) To ensure the workers security of employment by resisting retrenchment
and victimization.
6) To protect the large interest of society by aiding in the improvement of
trade and industry.
A Trade Union signifies an organization of workers engaged in securing
certain economic benefits for its members. However, this is not the true view of a
trade union. In the modern context, trade union’s activities are not confined to
mere “securing the economic benefits”. The purview of its activities now includes
even the political and welfare activities undertaken by it for the benefit of its
members.
TRADE UNION MOVEMENT IN INDIA
Trade Unions, as understood today, however, originated in the first quarter
of the 20th century, although the groundwork was laid during the last quarter of the
19th century. In Mumbai, as early as in 1875, reformers undShapurji started a
movement. They protested against the appalling conditions of the factory workers
and appealed for introduction of adequate legislation to prevent them. The credit
for laying the foundation of the organized Labor Movement in India is attributed to
Mr.N.M.Lokhande, a factory worker himself in 1884 in Mumbai. Actually a real
organized labour movement in India was started at the end of the First World War.
Rising prices, without a corresponding increase in wages despite the employers
making huge profits, led to a new awakening. Many Trade Unions were formed
throughout India. To this was added the influence of the Russian Revolution, the
establishment of ILO (International Labour Organization) and the All India Trade
Union Congress. This speeded up the pace of the Trade Union Movement.
Following the Second World War, there was a spiraling of prices. The workers
once again became restive. This further indirectly strengthened the movement in
India.
TRADE UNION MOVEMENT IN VISAKHAPATNAM STEEL PLANT
Visakhapatnam Steel Plant has a unique history of Trade Union Movement.
Trade Union Movement in Visakhapatnam Steel Plant started in Visakhapatnam
during 1979 with registering of 1st Trade Union by name “Visakha Steel
Employees Union”. However some of the senior employees who joined from other
steel plants had educated the modalities of Trade Union Movement and thereby
could achieve in establishing Trade Union Movement in Visakhapatnam Steel
Plant. During 1981, the main activities were Site Leveling, Evacuation of villages
etc., and whereby nearly 25 to 30 thousand workers worked daily in the shape of
Labour Contract, continuously around the clock. This has led to the influence
some of the petty Trade Unions to enter into the contract labour issues of
Visakhapatnam Steel Plant. Due to continuous activities around the clock, the
scope to implement the policies as laid down under different acts was very little.
The trade unions, which were established for the purpose of Visakhapatnam Steel
Plant regular employees, did not indulge in contract labour activities.
Visakhapatnam Steel Plant being a new organisation, initially it faced difficulties
and confusion as executives at different levels joined from different steel plants
brought there their own culture and work practices.
Visakhapatnam Steel Plant Management did not show interest to discuss and
negotiate with the Trade Unions on any matter. This has also led to run regular
confrontation at work spots. In the absence of clear-cut policies in matters like
welfare, wages, promotion, allowances etc., the trade union representatives also
faced immense difficulties.
After a year to this Visakhapatnam Steel Plant recruited a large percentage
of displaced persons, these new recruites challenged the leadership of unions
stating that they can lead the Trade Unions not only for the benefit of the displaced
persons but also the welfare of the other employees. And in this way they captured
the unions which was then affiliated to INTUC, they registered it as Visakha Steel
Mazdoor Sangh, the 2nd Union; by 1983 both AITUC and CITU established their
unions, which were influenced by the communist but in the initial period these
communist unions would not get the support of the employees.Later on the unions
that had originated in Visakhapatnam Steel Plant counts to 21 in Visakhapatnam
Steel Plant and 7 at Mines of Visakhapatnam Steel Plant. The names and the year
of registration are given below.
LIST OF TRADE UNIONS
IN VISAKHAPATNAM STEEL PLANT
Sl.No. NAME OF THE UNION
1. VISAKHA STEEL EMPLOYEES CONGRESS (INTUC)
2. VISAKHA STEEL WORKERS’ UNION
3. STEEL PLANT EMPLOYEES UNION (CITU)
4. VISAKHA STEEL MAZDOOR SANGH
5. VISAKHA STEEL EMPLOYEES UNION
6. VISAKHA UKKU SHRAMIKA SANGH
7. VISAKHA STEEL STAFF & WORKERS UNION (AICTU)
8. VISAKHA STEEL PROGRESSIVE EMPLOYEES UNION
9. UNION OF STEEL EMPLOYEES
10. DEMOCRATIC STEEL EMPLOYEES UNION (HMS)
11. RASHTRIYA ISPAT MAZDOOR SANGH (BMS)
12. CONGRESS OF VISAKHA STEEL WORKERS
13. UNITED STEEL EMPLOYEES UNION (DITU)
14. VISAKHA STEEL PLANT WORKERS & EMPLOYEES
UNION
15. NATIONAL TRADE UNION OF RE-UNITED STEEL
EMPLOYEES
16. THE GREATER VISAKHAPATNAM UKKU
KARMAGARA EMPLOYEES’ UNION
17. STEEL PLANT EMPLOYEES ASSOCIATION (JMS)
18. TELUGU NADU STEEL EMPLOYEES COUNCIL
(TNTUC)
19. ANDHRA NADU VISAKHA STEEL EMPLOYEES
UNION
20. REPUBLIC STEEL EMPLOYEES UNION
21. VISAKHA STEEL JANASHAKTI MAZDOOR SABHA
LIST OF TRADE UNIONS AT MINES OF VISAKHAPATNAM STEEL PLANT
Sl.No. Name of the Trade Union
At Jaggayyapeta Lime Stone Mines
1. VSP Mines Employees Union
2. VSP Mines Staff & Workers Union
(INTUC)
At Madharam Dolomite Mines
1. Visakhapatnam Steel Plant Workers Union
2. Rashtriya Ispat Mines Employees Union
(AITUC)
LIST OF THE UNIONS ELECTED AT VSP
Year Name of the Union Affiliation
1985 Visakha Steel Plant Employees’ Union INTUC
1988 Visakha Steel Workers’ Union AITUC
1991 Steel Plant Employees’ Union CITU
1993 Visakha Steel Employees’ Congress NONE
1995 Steel Plant Employees’ Union CITU
1998 Visakha Steel Workers’ Union AITUC
2001 Visakha Steel Workers’ Union AITUC
2003 Visakha Steel Employees’ Congress INTUC
2005 Visakha Steel Employees’ Congress INTUC
2008 Visakha Steel Workers’ Union AITUC
STATEMENT SHOWING POLLING DETAILS
OF RINL/VSP UNION ELECTIONS
HELD ON 01-03-2008
Total votes---11,193
Votes polled---10, 549
Visakha steel workers union---6, 597(59%)
Visakha steel employees union (INTUC) ---4,361 (39%)
Republic steel employees union---133
Rashtriya Ispat mazdoor sangh (BMS) ---62
Steel plant employees union (CITU) ---12
United steel employees union (DITU) ---5
Invalid---23
ELECTIONS SCENARIO AT VISAKHAPATNAM STEEL PLANT
According to Code of Discipline in our State every Industry is obliged to
recognize one Union as representative of employees. First union elections were
conducted during 1985, in which INTUC got the majority. In the second elections
AITUC won the election. However, in 1993 Visakha Steel Employees Congress
an independent union was elected as the employee representative. In due course,
other unions like CITU and Visakha Steel Workers Union have also been elected
as representatives.
In Visakhapatnam Steel Plant, 10 Elections have taken place including the recent
elections that took place on 1st march 2008, which was won by VISAKHA STEEL
WORKERS UNION. Here union elections were held for every 2 years, in which
AITUC got recognizition for 3 times, CITU and INTUC jointly sharing the second
with 2 times.
Central Employee Relations Department a division of Personnel Department in
Visakhapatnam Steel Plant in coordination with the State Labour Department
organizes the election by making all arrangements like preparation of voters list,
printing of Ballot papers, stationary etc., they also look after for the security with
the help of local Police Force along with Central Industrial Security Force and
suitable arrangements like accommodation, transport and so on for the labour
department officials and the election coordinating staff who look after.
ROLE OF TRADE UNIONS IN CHANGING BUSINESS SCENARIO
Many events in India and abroad are making significant effects on the trade
union movement in India. Firstly, the collapse of the socialist economies in
Russia and Eastern Europe has revealed glaring economic disparities between the
East and the West and also resulted in a uni-polar world.
Secondly, while these changes are making significant socio-economic and
political impact on the world economy, rationalization and protectionism are also
on the increase. The unification of Europe and the formation of NAFTA are
examples.
Thirdly, the development of satellite communication and the explosion in
information technology has resulted in customer needs across the world getting
more and more homogenized and this has perhaps lead to the creation of “The
Global Shopping Centre”.
Fourthly, the emergence of the so called Asian Tigers in the 1980’s as
major players in global trade challenges the classical international trade theory-the
convention which believes that the basis of international trade is the endowment of
the resources of nations. The Asian Tigers are not endowed with any of the
traditional productive or natural resources. What made them major players in the
world market was their conscious effort to create a competitive advantage for
themselves.
Lastly, the liberalization policies of opening up of the Indian economy to
the global competition have also affected trade unions.
EMERGING TRENDS:
1 As a consequence of all these happenings, a few issues are coming into
sharp focus in the Indian economic scene. Gradually, as India gets
integrated into the world market, there is cut-throat competition in the
industrial sector.
2 Competition is inducing innovation and companies are evolving newer
strategies to survive the onslaught on their market share by new and more
efficient enterprises, improving the quality of their goods and services
and yet trying to remain cost efficient.
3 Faced with keen competition, one sector of economy is also, at times
evolving short-term strategies with utter disregard to the interest of other
sector(s).
4 The customers are becoming supreme, seeking greater and greater value
in the goods and services they buy.
ROLE OF TRADE UNIONS:
Indian Trade Unions and, for that matter, trade unions in any developing
economy in the above scenario, is finding it difficult to continue with their
traditional role of promoting the interests of their membership with a sectorian
emphasis. In such a situation, any demand for “more” has to be linked up with
higher productivity and improved quality.
In this changed context, trade unions in India may have to find a new role
for themselves as important agents of social and economic transformation for the
common good of everybody, especially the under privileged. Trade Unions with
their resources and expertise may also provide a platform to other social
institutions to integrate the conflicting interests of different segments of society,
e.g., the employed and unemployed/under-employed etc.
1 However, no voluntary organisation can survive by neglecting the
sectorian interests of their membership altogether. Keeping this in view,
I would suggest that the unions operating in industrial and services
sectors may shift their emphasis from demanding more and more
financial benefits for their members to more important issues on their
agenda such as: Rehabilitation of displaced employees
2 Ensuring social security
3 Safety and health of the workers
4 Working as a watch-dog for protection of environment
5 Worker education
6 Involvement in the running of business through greater degree of
participation
7 Productivity bargaining etc.
However, in order to play any meaningful role, trade unions must have a
strong membership base. For too long has the trade union movement in India
remained weak and obsessed with intra-union and inter-union conflicts. For ages,
their leadership has deliberated over some important and urgent issues like:
1 Secret ballot vis-à-vis verification of membership through check-off;
2 Recognition of a single union vis-à-vis formation of bargaining
council or a combination of these;
3 One union in one industry vis-à-vis formation of a confederation of
trade unions, etc.
But very little has been achieved so far towards consolidation of workers.
There has been, in fact, a tendency of further splitting the movement with every
split in political parties.
This has not only created utter frustration amongst the sincere and devoted
sections of trade union members, but the movement is also losing public sanction
very fast.
In my analysis, two major issues are to be resolved by the leadership to
achieve consolidation of the movement. They are:
(a) Over-emphasis on political ideology of some trade union houses;
(b) Leadership issues in the consolidation process;
Once these issues are resolved and the trade union movement gets
consolidated, the leadership will find itself more comfortable in its redefined role.
DISCIPLINARY PROCEDURE
Discipline is a Code of Conduct in an Enterprise in which the members of
the enterprise conduct themselves within the standards of acceptable behaviour
which means that the stipulations of the code of conduct laid down by the
enterprise are properly understood and observed by one and all.
The state of Industrial Relations in a country/factory is also reflected in the
discipline and the morale of the labour force. Discipline is very essential for a
healthy industrial atmosphere and the achievement of organizational goals.
In any Organisation maintenance of discipline among personnel at all levels is
required to create the conducive work environment so as to facilitate increased
productivity and organizational effectiveness. So management of an organisation
can adopt two approaches for discipline maintenance:
1 Adopting preventive measures ‘prevention is better than cure’ principle is
based on the assumption that employees perform better through rewards
than punishments. So the problems of indiscipline do not emerge.
2 Curative measures that it taking “disciplinary actions” against the persons
involved in indiscipline.
The Disciplinary Action should be taken after going through specific process
because the punishment may be held invalid if there is any deviation from the
procedure laid down. The procedure for taking disciplinary action is defined by
the Standing Orders formulated by the Organisation
Disciplinary Procedure at Visakhapatnam Steel Plant:
When an act of misconduct is alleged against a workman for whom a
punishment as provided under Standing Orders of the Company. The workman
shall be given an opportunity to show cause before punishment is imposed.
Disciplinary Authority:
Any Executive/Officer to whom powers are delegated to take disciplinary
action against a workman shall be the disciplinary authority competent to initiate
disciplinary action and to impose punishment on a workman. The Disciplinary
Authority shall frame definite charges on the basis of the allegations against him.
The charges together with a statement of allegations on which they are based, shall
be communicated in writing to the workman who shall be required to submit a
written statement of his defence within such time as may be specified but not
exceeding 3 days by the Disciplinary Authority. If it is necessary the Disciplinary
Authority shall hold an enquiry and take the necessary action.
Appellate Authority:
The workman shall have the right of appeal to Appellate Authority. The
appeal shall be submitted within 15 days of receipt of the order of the Disciplinary
Authority, and the Appellate authority shall dispose of the appeal within 30 days of
the receipt of the appeal. The appellate authority is the next higher authority to
disciplinary authority.
INDUSTRIAL DISPUTES
Dispute, in general sense, is the expression of differences over some issues
of interest between two or more parties. Industrial disputes like problems of
indiscipline and their effective management are on the major issues in maintaining
good Industrial Relations in the Country / Organization.
Definition:
According to Industrial Disputes Act, 1947
“Industrial Disputes means any dispute or difference between employers and
employers or between employers and workers or between workmen and workmen,
which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour of any person”.
An individual dispute between an employer and one of his workmen is by
itself not an industrial dispute, which can be referred to under section 10 of the
Act. But such a dispute may become an Industrial dispute provided a majority of
workmen or union of workmen takes up the cause of particular workman, in the
particular industrial establishment.
Machinery for Handling Industrial Disputes
In managing industrial disputes, management can take certain actions. These
actions may be grouped into two categories:
Prevention of industrial disputes:
The preventive machinery has been set up with a view to creating harmonious
relations between labour and management so that disputes do not arise. It
comprises of the following measures.
(a) Worker’s Participation in Management
(b)Collective Bargaining
(c) Grievance Procedure
(d)Tripartite bodies Code of Discipline
(e) Standing Orders
Settlement of Industrial Disputes:
If preventive machinery fails, then the industrial dispute settlement machinery
should be activated by the Government under Industrial Dispute Act, 1947,
because no-settlement of disputes will prove to be very costly to the workers,
management and the society as a whole. This machinery consists of
(a) Conciliation
(b)Court of Enquiry
(c) Voluntary Arbitration
(d)Adjudication (Compulsory Arbitration)
Major Industrial Relations Events in Visakhapatnam Steel Plant
During Construction phase, displaced persons quite often organized Strikes
and Rastha Roko agitations demanding Employment in Visakhapatnam Steel Plant.
During 1985-86, approximately 9,515 man-days were lost in Construction activity
because of the above agitations.
Similarly in 1986-87, in the wake of death of an employee in the Health
Centre, employees resorted to sudden work stoppage demanding extension of
adequate Medical Facilities.
In the Operation phase, in the year 1991-92 following the death of 2
employees in an Accident occurred in Sinter Plant, there was an illegal work
stoppage at Sinter Plant from 24.8.1991 which culminated into a plant wide strike
from 3.9.1991 to 6.9.1991 demanding immediate policy for provision of immediate
employment to the dependent of the deceased employee on compassionate
grounds.
During the year 1993-94 (16th – 22nd October) a week Plant wide Strike took
place on account of a conflict between CISF personnel and VSP employees on the
issue of an entry through the main gate. Subsequently, a gate monitoring system
was introduced with the officers in both line departments as well as staff
departments to monitor that such incidents do not recur.
As a preventive measure to arrest industrial relations problems a great amount
of persistence and preservence has been professed by the management in
inculcating a sense of positive discipline in the employees. It was also impress
upon them through various HRD Programmes that the employees may act with
restraint in all the matters and to adopt only peaceful methods of representation.
The employees have also come through the stages of Construction, Commissioning
and Operation and have been made to understand that the pressure tactics, arm-
twisting methods of work stoppages and stoppages of production units would result
only in deterioration of industrial relations and in no way help bring them any
solace.
The following Table shows Loss of Man days due to Industrial Relations Events in
Year wise.
COLLECTIVE BARGAINING SYSTEMS
Collective Bargaining is a technique adopted by the organization of
workers and employers collectively to resolve their differences with or without the
assistance of a third party. Its ultimate aim is to reach some settlement acceptable
to both the parties involved in labour-management relations. This concept was
coined by Sydney and Beatrice Webb. Great Britain is said to be the ‘Home of
Collective Bargaining’.
The phrase collective bargaining is made up of two words-Collective, which
implies group action through its representatives; and Bargaining which
suggests/haggling and/or negotiating. This concept implies “Collective
negotiation of a contract between the managements’ representatives on one
side and those of the workers as the other. It may be defined as a process of
negotiation between the employers and the organized workers represented by their
union in order to determine the terms and conditions of employment.
As per Habirson, collective bargaining is a process of accommodation
between two institutions, which have common and conflicting interests. It is the
resolution of industrial problems between the representatives of employers and the
freely designated representatives of employees acting collectively with a minimum
of Government dictation.
The technique of CB has been adopted by unions and management for
resolving their conflicting interests. It plays a significant role in improving the
labour management relations and in ensuring industrial harmony. It helps a lot
in better understanding of each other’s point of view as well as problems. Through
discussion and interaction, both the parties learn more about others and often
misunderstandings may be removed. It helps in easing out many minor differences
and there are many instances in which even major disputes are said to be settled
without any work stoppage or outside intervention. Accordingly, its role in
conflict resolution is very significant.Collective bargaining brings the employees and managers closer; develops better
understanding helps industrial peace; resolves conflicts and differences; brings social change. It
helps effective functioning of the enterprise and promotes industrial harmony. It helps effective
functioning of the enterprise and promotes industrial harmony. It is a two-way process and
mutual give and take aspect rather than take it or leave it method of arriving at the settlement of
disputes. The essence of collective bargaining is the agreement for dispute settlement and
smooth functioning of the enterprise. The agreements bring both labour and management
together to determine the conditions of employment and create new environment for problem
solving. It provides a flexible means of adjusting wages and conditions of employment to
economic and technological changes.
Scope of collective bargaining
The Encyclopedia Britannica defines collective bargaining as follows:
“In its widest sense collective bargaining is a negotiation between the
employer or group of employers and a group of work-people to reach an agreement
on working conditions. If negotiations are between an employer and a group of his
own work people the dependence of the work people on the employer for their jobs
weakens their bargaining powers, and therefore, collective bargaining is more
usually understood to be negotiations between one or more trade unions and an
employer or group of associations or employers”.
It is a process of self-settlement by which management and organized labour
may discuss each other’s problems and exchange each other’s view points
negotiate and reach a common understanding to develop a setting for a better
employment and working conditions to the mutual benefit of workers and
management in a spirit of cooperation and goodwill for keeping peaceful industrial
relations.
Some of the salient features of collective bargaining are :
1. It is a ‘group’ process; wherein one group representing the employers and
the other representing employee sit together to negotiate terms of
employment.
2. It is a process in the sense that it consists of a number of steps. The starting
point is the presentation of the charter of demands and the last stage is the
reaching of an agreement, or a contract which would serve as the basic law
governing labour-management relations over a period of time in an
enterprise.
3. Negotiations form an important aspect of the process of collective
bargaining, i.e., there is considerable scope for discussion, compromise or
mutual give and take in the collective bargaining deliberations rather than
confrontation.
4. It is a bipartite process. The employers and the employees are the only
parties involved in the bargaining process. There is no third party
intervention. The conditions of employment are regulated by those directly
concerned.
The purpose of collective bargaining is that it brings parties close and
develops better understanding for industrial peace, democracy resolves conflicts
and differences; guarantees the rights and responsibilities of the workers; develops
self-respect and fosters responsibility on both workers and employers; brings social
change through acceptable solutions; and formulates the terms and conditions
under which labour and management will have to work together. The primary
objective is to ensure effective functioning of the individual enterprise and more
importantly the entire economy.
Main functions of Collective Bargaining :
The main functions of Collective Bargaining are:
(a) Concentration on wage determination-fixing the prices of labour services;
(b) Establishment of a system of workers rights in industry – this may be
termed as democratization of industrial relations system or industrial
jurisprudence;
(c) Establishment of machinery for the representation of employees in
decisions affecting their industrial and group interests.
DETAILS OF MAN DAYS LOST DUE TO INDUSTRIAL RELATIONS
EVENTS
SI.No. PERIOD LOSS
OF
MAN
DAYS
CAUSE
01. 1990-91 12,600 Sudden strike in the wake of accidental Deaths one at
Traffic Department and Another at Sinter Plant
02. 1991-92 56,135 Illegal work stoppage at Sinter Plant from 24.8.91 &
Plant wide strike (3.9.91- 6.9.91), death of two
employees in an accident
03. 1992-93 304 Work stoppage at Steel melting Shop following an
accident
04. 1993-94 87,795 Plant-wide strike from 16.10.93 to 22.10.93 on account
of a conflict between CISF personnel and VSP
employees on the issue of entry through main gate
05. 1994-95 NIL Go-slow at COCCP
06. 1995-96 2,342 Issue of job rotation at COCCP, provision of adequate
Safety measures, go-slow at CRMP, CPCCP and one
day Nation-wide strike on 23.2.96 by CITU
07. 1996-97 325 Work stoppages resenting on unsafe work practices,
demanding for provision of adequate safety measures
issues of job rotation and revision of incentive/reward
schemes
08. 1997-98 315 Work stoppages on account of accidental deaths at
Sinter Plant and SMS on 24.4.97 and 10.10.97
respectively, and one hour Tool Down strike in each
Shift on 15.10.97 on Bonus issue
09. 1998-99 78 Technicians posted in Wagon Tippler Mechanical
Section of RMHP did not attend to shutdown duties
connected to Coal Tippler Section. Employees of RED
working in SMS area did not attend to ramming work on
Converter demanding Incentive on par with the
employees of SMS.
10. 1999-00 13,447 Non-executive employees participated in one day token
strike on 2.2.2000 in response to the call given by
CPSTU affiliated unions. Technicians posted in Wagon
Tippler Mechanical Section of RMHP did not attend to
shutdown duties connected to Coal Tippler Section
demanding settlement of the roster system.
11. 2000-01 10,851 Unions organized one day token strike on 11.5.2000
opposing dis-investment policy of the Central
Government
12. 2001-02 2,823 In response to the call given by the Unions, Non-
executive employees observed 2 hours strike in each
shift on 16.4.2001 and one day token strike on
17.4.2001 as a protest against the non-settlement of
Wage Revision at NJCS Level
13. 2002-03 3,163 One day nation-wide strike on 16.4.02 by all trade
unions except INTUC opposing disinvestments policy
of the Govt.
14. 2003-04 NIL
15. 2004-05 NIL
16. 2005-06 NIL
17. 2006-07 NIL
18. 2007-08 NIL
WORKERS PARTICIPATION IN MANAGEMENT
Workers Participation, also known as Labour participation or Employee
participation, in management is a concept shrouded with so much vagueness that
for different people, it has different meanings. The basic reason for this perceptual
difference is due to different pattern of practices and programmes adopted by
various Countries for implementing workers participation in management. Many
Industrial Relations experts regard it as an essential step involving redistribution of
power between management and workers in the direction of industrial democracy
though there are differences of views over the content and level of participation.
The principal forms through which workers participate are Information sharing,
Joint consultation and Suggestion schemes.
The various forms of workers participation in management have assumed great
importance these days because it serves the following purposes
1 Reduced industrial unrest
2 Maintaining good Industrial Relations
3 Higher productivity
Workers participation in management falls into several categories. These are
informative, consultative, associative, administrative and decisive participation.
Informative: In informative participation, there is sharing of information – for
instance, the information regarding production figures, the balance-sheet of the
company and economic conditions etc.
Consultative: In consultative participation workers’ representatives are consulted
on matters relating to welfare facilities by the management. Here, the workers’
representative action an advisory capacity and the final decision rests with
management.
Associative: In associate participation the management accepts the suggestions of
the council for solving a problem on hand. The management is obliged to accept
and implement if the committees take unanimous decisions regarding a problem.
Administrative: In administrative participation, the decision is already taken and
the councils (joint bodies) have the right to choose the method of implementing it.
This may include administration of welfare measures, operation of vocational
training and apprentice schemes and preparation of work schedules. This involves
higher degree of delegation of authority and responsibility to the lower rank and
file of the organization.
Decisive participation: Finally there is decisive participation, the highest form of
participation where all matters, economic financial and administrative are brought
under the scrutiny of the councils and the decisions are taken jointly.
OBJECTS OF WORKERS PARTICIPATION IN MANAGEMENT
The objective pursued by the various systems of workers’ participation in
management vary from country to country, from region to region and even from
organization. The workers or the trade unions may regard participation as a means
to increase their wages, while the others may regard it as a means to increase
production, which may not necessarily result in greater security for workers. All
these objectives include in particular (ILO, 1969):
(i) Moral, ethical or ideological considerations which are linked with the
growing awareness of (a) the basis equality of men which beyond the
political sphere, should extend also to that of economic pursuit and
production effort, and (b) the importance of the undertaking for the socio-
cultural life of the workers in general, and, more particularly, their need to
be recognized and associated as a community in decisions which may affect
their conditions of work and living within and without the undertaking.
(ii) Socio-political objectives, aimed mainly at applying the principles of
democratic self-government within the economy; this generally claims for
what has often been defined as “industrial democracy” being particularly
stressed either where the need is felt thus to develop or to strengthen
democratic institutions in the political sphere by making them rest on the
undertaking self-government, or, in the undertakings belonging to the public
sector of the economy or under the national development programmes, also,
to supplement or to replace private entrepreneurial motivation through the
association of workers in management and in the results of the undertakings.
However, the social aim in management and in the results of the
undertakings. However, the social aim of some of the participation schemes
is merely to achieve a closer integration of the workers within the
undertakings while not interfering with the latter’s basic structures;
a. The general economic objectives based on the assumption that
whenever people are allowed to participate in the preparation of
measures and policies which they are called upon to implement,
such participation may prove apt, particularly where linked with
economic advantage, to reduce conflict and to enhance the
cooperative spirit of all concerned.
SPECIAL FEATURES LEADING TO THE SUCCESS OF PARTICIPATION
One reason for the successful functioning of the joint consultation is the clear
demarcation of issues to be discussed by various forums, which is strictly, adhered
to. Another important reason for the continued success is that both management
and union treat it as a dynamic system. From time to time, new subjects are added
to the list and financial powers of JDCs are increased. The list of subjects which
the highest council – the JCM – discusses is impressive. It includes not only
performance in relation to production, cost and manpower, but also sales, finance
and industrial relations. It is indeed a rare sight in India to see a meeting attended
by an equal number of top management and union officials which is chaired by the
union president. Again, despite the pressures on his time the Managing Director
makes it a point to attend DC meetings. Other reasons of success are peaceful
industrial relation climate, good upward communication system, and progressive
personnel policy of the organization.
SOME SUGGESTIONS FOR PROMOTING WORKERS PARTICIPATION
IN MANAGEMENT
Some important points which may be considered by the Government,
management and trade unions for making participative management a success and
relity.
(1) INDUSTRIAL RELATIONS: The quest for industrial peace has been the
central preoccupation of employers, workers and government for a long
time. The Five Year Plans, Labour legislations, the Industrial policy, have
all endeavoured to emphasise industrial peace as the necessary pre-requisite
for industrial growth and development, but it has remained elusive. Here an
attempt has been made to indicate briefly some important measures which
are considered necessary for bringing about a conducive industrial relations
climate which is one of the basic pre-requisites for the success of
participative management. The essential features are: -
(A) It is a fact that in the absence of an arrangement for statutory
recognition of unions, or voluntary recognition by employers on
moral grounds, collective agreements have not made much headway.
(B) Consequently, there is a greater scope for more reliance on collective
bargaining thereby replacing avoidable adjudication or more of
governmental interference.
(C) To create appropriate climate for collective bargaining, it becomes
necessary to resort to statutory recognition of a sole bargaining agent,
where voluntary efforts fail.
(D) Recognition of trade union should be made compulsory under a
central law:
(i) For all undertakings employing more than 1000 workers;
(E) The recognized union should be statutorily given:
(i) Exclusive right of sole representation;
(ii) Exclusive right to enter into collective bargaining;
(iii) Exclusive right to collect membership subscription within the
factory premises;
(iv) Right to nominate representatives on different joint committees.
(F) TRAINING FOR PARTICIPATION: All employees (both
management and workers) should be briefed on the reason for the
introduction of participation and its likely impact, they should receive
clear documentation and have the facility of questions being
answered. Training for those management and workers’
representatives who are going to be directly involved in participative
forums should cover three main points:
Basic knowledge of the philosophy, operation and intent of participation
within the company. This approach should be intended to promote joint working
based on problem resolution rather than negotiating ‘conflict’. Team development
techniques in a workshop situation may be used for this purpose.
(ii) Special skills training to enable them to discuss and contribute to
the decisions in which they are to be involved.
(iii)
(iii) Contextual training – participation puts strains on and
questions the company’s traditional approach to management.
Opportunities therefore have to be provided for management
WORKERS PARTICIPATION IN VISAKHAPATNAM STEEL PLANT
Management of Visakhapatnam Steel Plant also facilitates Workers
Participation, which secures a right for the recognized union in representing their
views and opinions regarding production, safety, canteen and township
development etc., through the formation of different Committees at Shop floor and
Plant level. But these committees constitute the representatives of recognized
union, leaving behind the opinions of the other unions that constitute to around
60% of employees.
This lead to the inter-union rivalry as the non-recognized unions were set
aside without being consulted regarding the policy matters, creating difficulties in
implementation of issues that was settled through negotiations.
EMERGENCE OF JCM
To overcome this limitation an alternative method called “Joint Consultative
Machinery” was introduced. Joint Consultative Machinery constitutes
representatives of all the unions, which got more than 15% of the total votes polled
during the union elections. Their number will be equal to the management
representatives being nominated by the organisation. This facilitated the non-
recognized unions too in presenting their opinions. The total numbers of union
representatives are equally divided among the unions having more than 15% of the
polled votes.
Joint Consultative Machinery extends its scope in the areas like production,
productivity, quality, safety, corporate affairs, work related issues, incentives,
deployment/re-deployment, job rotation etc., According to the terms of settlements
departmental safety committees with an apex plant level safety committee were
being constituted to look after all issues relating to safety. And each department of
the organisation constitutes Joint Consultative Machinery to discuss production,
welfare and so on covering all the matters of employees and management. In
addition, a company levels Corporate Business Information Forum (CIBF) to
discuss functional aspects of Visakhapatnam Steel Plant with the participation of
top management and senior representative of major unions.
Facilitating all the major unions in Joint Consultative Machinery helped a lot
in diminishing the Inter-union rivalry and led to the establishment of peaceful
Industrial Relations climate.
But, Joint Consultative Machinery works only when the recognized union
co-operates with other union. CITU, when in chair, accepted to share it but,
AITUC didn’t so, as a result of it, Joint Consultative Machinery came to standstill.
This non-performance of Joint Consultative Machinery led to the establishment of
Participative Fora in a different from.
The various Participative Committees formed by the management along
with the statutory committees constitute representatives from management as well
as from recognized union, in equal numbers. These representatives carry on the
functions of these Committees that include provident fund trust, sports council,
town development committee, community welfare centre etc.
GRIEVANCE MANAGEMENT
Grievance is a state of dissatisfaction over some issues related to
employment. Generally, expression of this dissatisfaction in oral form is known as
complaint while in written form it is known as grievance. In the organizational
settings, employees may have some grievances against employers, in the same
way, employers may have grievances against employees.
Grievance Management is very essential to maintain good Industrial
Relations, which increases productivity and effectiveness of an organisation.
Grievance should be redressed by adopting proactive approach rather than waiting
for the grievance to be brought to the notice of management. In many cases, even
the proactive approach of management for removing the causes of grievances may
leave some scope for the emergence of grievances. For handling such grievances,
a Grievance Handling Machinery, known, as Grievance Procedure is required.
The Grievance Procedure is a problem solving, dispute-settling machinery
which has been set up following an agreement to that effect between labour and
management. It is the means by which a trade union or an employee makes and
processes his claim that there has been a violation of the labour agreement by the
company.
Grievance Procedure is a device through which grievances are settled, generally to
the satisfaction of employees/trade union and management.
Grievance Redressal Procedure at VSP
The objective of Grievance Redressal is to provide easily accessible
machinery for settlement of grievances of executives and to adopt measures as
would ensure expeditious settlement of grievances leading to increased satisfaction
on the job and resulting in improved productivity and efficiency of the
organisation. In Visakhapatnam Steel Plant the Grievance Procedure consists of 3
stages, they are –
Stage-I
An aggrieved employee shall send his grievance to his Head of the
Department within a period of 3 months of its occurrence. The Head of the
Department will give a personal hearing and try to resolve the grievance at his
level and intimate his decision to the aggrieved employee in writing within a week.
Stage-II
If the aggrieved employee is not satisfied with the reply of Stage-I authority
or has not got a reply within the stipulated time, he may submit his grievance to the
Divisional Head. The Divisional Head concerned shall go through the Grievance
and settle the same at his level. The decision taken shall be communicated in
writing to the aggrieved employee within 15 days of receipt of the grievance.
Stage-III
If the aggrieved employee is not satisfied with the reply of Stage-II or has
not got reply within the stipulated time, he may address his grievance to the
Grievance Council. The Grievance Council shall examine the Grievance in detail
and give their recommendations before the end of the month following the month
in which the grievance council receives the representation.
The aggrieved shall have the right to represent his grievance before
Chairman-cum-Director direct if his grievance is not settled to his satisfaction at
Stage-III or within the time limits as prescribed under the Company’s Grievance
Redressal Procedure.
Participation in Grievances Management at VSP:
Today’s Grievance is tomorrow’s IR problem. VSP has carved
out a unique way of dealing the grievances. With a view to provide
immediate redressal of grievance with participation of workmen
representative/Union representative. The Grievance Redressal
procedure at a glance is given in the figure below.
AbbrevationsCENGREF - Central grievance redressal forumAGREF - Area grievance redressal forumSLSC - Shop level safety committeeSJPC - Shop level joint production committee
Review byDirector(personnel)
Executive Director(works)CENGREF
HODAGREF
1. Registration & segregation2. RedressalSJPC SLSC
Form II
Form I
GrievanceFeedback
GM(personnel)CENGREF
HODAGREF
1. Registration & segregation2. RedressalSJPC SLSC
Form II
Form I
FeedbackGrievance
Plant grievanceredressal machinery
Non-plant grievanceredressal machinery
Registration of grievancewith controlling officer
Registration of grievancewith controlling officer
Grievance Redressal Machinery
The Machinery for Grievance Redressal at Departmental Level, Plant Level
and Company Level shall consists of
Area Grievance Redressal Forum (AGREF)
All Major Departments will have AGREF and the Small Departments will
be clubbed into groups with each group having one AGREF
The Forum consists of
Head of the Department --- Chairman
Zonal Personnel Incharge --- Convenor
Representative of Finance Department --- Member
Representative of Marketing Systems Department --- Member
One Representative of from each major Unions --- Member
Central Grievance Redressal Forum (CENGREF)
It consists of
Works Division:
Executive Director (works) --- Chairman
Plant Personnel Incharge --- Convenor
General Manager (Industrial Relations) --- Member
Joint General Manager (Finance) --- Member
One Representative from each union --- Member
Non-Works Department:
General Manager (Personnel) --- Chairman
Manager (Personnel) --- Convenor
General Manager (Marketing Systems) --- Member
Chief (Production) --- Member
Joint General Manager (Finance) --- Member
One Representative from each Union --- Member
The following matter comes under the grievance redressal. They are
1 Payment of Wages and Incentives
2 Increments
3 Deduction/Recovery of dues
4 Allowances and Advances
5 Seniority and Promotion
6 Attendance and Leave
7 Workmen’s Compensation
8 Working conditions at place of work
9 Transfer etc.,
JOB ROTATION IN VSP:
The job rotation system was introduced in VSP in the year 1995. Demand
for job rotation for employees working in hard areas was raised by the
workmen/unions in Battery of Coal & Coal Chemical Division, Continuous
Casting Department of Steel Melt Shop and Cast Houses of Blast Furnace for the
following reasons:
1. Absence of any special benefit for working in hard areas.
2. Perceptions that having common designations entitled the employees to work in
other areas of the department especially when channel of promotion is common.
Driven by persistent pressure, job rotation plans were effected in operation areas
like Cast House of Blast Furnace, in Continuous Casting Dept of Steel Melt shop
and Battery of Coal & Coal Chemical Department during June 1995 to August
1995 involving Technicians and Khalasis based on discussion with the unions.
Similarly Job Rotation plans have been formulated in Light Medium & Merchant
Mills & Wire Rod Mill for Technicians in the Operations Area in July 1997 and
January 1998. The concept received a wider acceptance among the workers/non-
executives working in major production units like Coke Ovens, Blast Furnace and
Steel Melt Shop etc. In order to avoid the skill dilution of the young work force
and to make them get trained on all the areas/sections in a department the concept
was introduced for skill expansion of the working hands. Later the concept was
well received by the Service Zones also such as Telecommunication,
Instrumentation, Maintenance areas.
BENEFICIAL EFFECTS :
Skill Expansion:
The skill of working hands get expanded by working and get experienced by
working in all the section in a department unlike working in a single section and
retiring. batteries.
Health preservation of Employees
Because of rotation, employees are to work for only 3 years at a
stretch in Battery. This has resulted in preservation of their health and better
productivity at the work spot.
Increased Job Satisfaction of Employees:Since the employees are trained and get experienced in more than one section, the sense
of responsibility and understanding the integrated functional relationship among all the sections
increases, which leads to more job satisfaction of the employees.
JOB ROTATION SCHEME FOR STEEL MELT SHOP
TECHNICNAN (OPERATIONS)
1 45 Technicians (O) CCD (o) are being rotated to other areas.
2 45 Technicians (O) from the following areas are being rotated to CCD (O):
Slag Yard 4, BMS 4, Converter 8, LP Bay 6, TP Bay 7, Misc (DF, CCD G)
2, BSY 6, PGT 2.
1 Rotation is done every six months i.e., 1st Wednesday of April and October.
2 Total No. of Tech (O) rotated in 1st cycle of Job Rotation.
ROTATION PLAN FOR KHALASIS (OPERATIONS)
1 Rotation is done once in a year.
2 9 Khalasis from CCD (O) area are being rotated to other areas.
3 9 Khalasis from TP Bay 4, OCM 1, BSY 2, Stores 1 and CCD (O) were
rotated to
CCD (O).
PRODUCTION INCENTIVE SCHEME IN VSP
Given the enormous capital cost of our plant, it is absolutely essential to
operate it in a safe and efficient manner achieve 100% capacity utilization and a
productivity level of not less than 230 t/man/year and consistently turn out high
quality products matching the market requirement.
To induce us to translate the plans into real actions at the shop floor, several
organizational and motivational measures have been taken. The latest motivational
package comprises Performance Based Incentive Scheme and Commitment Linked
Motivational Scheme. Underlying this incentive package is VSP’s commitment,
concern and care for us. For, we have taken upon ourselves to give out our best to
this organization.
Introduction of a unique motivational package
Better performance more earnings: Better performance and better results
in the areas of Capacity utilization, Productivity, Quality, Costs, Safety and such
other crucial aspects are a must for VSP. The success of VSP would depend on its
employees rendering dedicated work with high levels of motivation. To motivate
employees and provide incentive to hard efficient work a unique Motivational
Package has been introduced in VSP, which has several important features in the
Indian Steel Industry. The introduction of the package is major milestone in the
organizational endeavour to establish a productive work ethos in VSP.
INDUSTRIAL RELATIONS AND ITS IMPACT ON PRODUCTION AND
PRODUCTIVITY
Industrial relations do not emerge in Vacuum they are born out of
“employment relationship” in an industrial setting. It is the Industry which
provides the environment for industrial relations. The Production and Productivity
of an Organisation depends upon the type of Industrial Relations or the events that
take place in an organisation which are harmful to industrial relations.
In Visakhapatnam Steel Plant the Total Man days lost was 1,87,015 due to
various Industrial Relations events that took place in the last ten years.
47% of the total man days were lost i.e., 87,795 lost due to Plant-wide Strike
from 16.10.93 to 22.10.93 on account of a conflict between Central Industrial
Security Force Personnel and Visakhapatnam Steel Plant Employees on the issue
of entry through Main Gate. Subsequently gate-monitoring system was introduced
with the Officers in both Line Departments as well as Staff Departments to monitor
and see that such events do not re-occur.
37% of the total man days were lost i.e., 69,195 lost due to accidents that
took place in different departments in the last ten years.
16% of the total man days were lost i.e., 29,922 lost in the last ten years due
to the following incidents.
1 Demanding adequate Safety measures at working places
2 Demanding revision of Incentive/reward schemes
3 Opposing Dis-investment policy of the Central Government
But the Impact of Industrial Relations events on Production were not so
severe in the last ten years. The Production details of the company show that the
production was increasing continuously in the last ten years. If the events did not
take place may be the production would have further increased.
CHAPTER 4
DATA ANALYSIS
AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Introduction:
After collecting the requisite secondary data relevant for the purpose of this
project work we have collected primary data on the subject through a sample
survey. Thus a suitable questionnaire was designed to obtain the
views/perceptions of respondents on relevant aspects. A copy is placed at
annexure.
Methodology:
In order to carry out the survey the random sampling method was adopted as
the target was to interview 100 employees from all the departments. The survey
was conducted by meeting the respondents personally at their convenience and
choice. Accordingly most of the respondents preferred their work place as they
felt comfortable to fill the questionnaire. The questionnaires were distributed
among the respondents and it was collected then and there itself.
The Primary data was collected by meeting 100 employees from various
departments. Since RINL/VSP is having different departments widely scattered it
is proposed to conduct the survey in only core production departments. The
respondents were identified on random basis in each department, as the availability
of the respondents was not constant at each level.
Questionnaire design
The questionnaire was designed in such a way that the first five questions
are pertaining to the personal data which are in agreed nature such as designation,
department etc.
The quantitative data was designed with forced choices of 5 scales method
i.e. 0-5 level like totally agree, agree, cannot say, disagree, totally disagree. The
qualitative data was designed by administering the open-ended questions with the
ranking method so as to ascertain the quality information from the survey findings.
ANALYSIS OF RESPONSE :
a. Name:
The first question of the questionnaire is related to the personal matter, name
of the employee which is optional.
b. Age:
The second question of the questionnaire is also related to the personal issue,
age of the employee which is also an optional.
c. Department:
The third question of the questionnaire is related to the department since
three production zones have been chosen for sample survey to cover both
executives and non-executives in the three departments Viz., Blast Furnace, Steel
Melt Shop and Administrative block.
d. Designation:
The fourth question of the questionnaire is related to the respondents,
designation as to ascertain the categories. Accordingly the 100 samples are
grouped into two categories i.e. executives and non-executives. As such the
category of respondents is given below:
EXECUTIVES --- 50
(Front line, middle and senior level)
NON-EXECUTIVES ---50
(Highly skilled, Skilled and Unskilled)
e. Experience:
The third question of the questionnaire is related to the experience of the
respondents, the number of years of service. Accordingly, 100 respondents have
been grouped into three levels as such as below 10yrs, 11-20yrs and 20yrs and
above. Their response is tabulated below---
Category Up to 10 yrs 11-20 yrs 20 and above Total
Executives 7(20%) 18(51%) 10(29%) 35
Non-executives 14(22%) 44(68%) 7(10%) 65
Total 21 62 17 100
VIEWS OF RESPONDENTS ON VARIOUS ISSUES LISTED IN THE
QUESTIONNAIRE:
Analysis of Respondents to specific questions in the questionnaire:
On 5 scales method such as totally agree, agree, cannot say, disagree and
totally disagree for the purpose of present study of the responses are categorized
into 3 i. Agreement/Satisfactory and Undecided/Cant’ Say and
Disagreement/Dissatisfaction and % figure is worked out separately and also the
graphical representation is given for all the questions.
1. Positive IR is essential to achieve the goals of an organization.
The first question of the questionnaire is related to the concept of positive
industrial relations (IR) in VSP i.e. whether positive IR is essential in VSP to
achieve its goals and objectives. The opinion of the respondents is collected and
tabulated below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
38 12 65% 0 0% 0 0 0% 50
Non-
executiv
es
27 23 35% 0 0% 0 0 0% 50
Interpretation:
The table shows that positive IR is essential to achieve the goals of an
organization with the opinion of the employees, 65% of the respondents in
executive category and 35% in non-executive category of the respondents have
agreed. There is no negative response for the above statement as 100% of the
respondents have accepted the statement.
Hence, positive IR is essential for any type of organization.
2. In VSP trade unions are matured & play a vital role to achieve the growth
of the organization as well as the employees.
The second question of the questionnaire is related to the concept of trade
unions importance in achieving the growth of the organization and employees in
VSP. The response obtained is given below:
Categor A B % of C % of D E % of Tota
y A&B C D&E l
Executiv
es
11 29 40% 7 7% 3 0 3% 50
Non-
executiv
es
13 32 45% 3 3% 2 0 2% 50
Interpretation:
Regarding the maturity and the role played by the unions, 85% have agreed
and 15% have not agreed to the statement. Most of the executives and non-
executives i.e. out of 85% of the respondents, 45% of non-executives and 40% of
executives have agreed the statement, but 15% have not agreed in which 10% are
executives and 5% are non-executives while 10% respectively i.e. 7% executives
and 3% non-executives could not opine anything.
3. The role of mgt. & trade unions are equally important for the better IR
scenario which directly/indirectly contributes to the functioning of the org’n.
The above question is related to the role played by the trade unions for better
IR scenario towards the functioning of the organization. The response regarding
the statement is given below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
22 23 45% 4 4% 1 0 1% 50
Non-
executiv
es
18 27 45% 4 4% 1 0 1% 50
Interpretation:
A significant factor that integration between the management and trade
union is important for better IR in an organization, 45% of executives and 45% of
non-executives have agreed the statement, whereas, 2% have not agreed, while 8%
have mentioned that they are not sure of the statement. Therefore, the majority of
respondents have agreed that the role of management and trade union are equally
important for better IR.
4. IR situation is dependant on the well being of the organization
The fourth question of the questionnaire is related to know whether the IR
situation is dependent on the well being of the organization or not. The opinion
collected is tabulated and produced below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
19 23 42% 8 8% 0 0 0% 50
Non-
executiv
es
20 26 46% 4 4% 0 0 0% 50
Interpretation:
The table shows that 88% of respondents, mostly non-executives have
agreed that IR situation is dependent on the well being of the organization. 42% of
executives and 46% of non-executives has agreed the same. Only 8% of executives
and 4% of non-executives have responded that they cannot say anything on the
statement.
However, the majority of respondents are in acceptance of the statement that
IR situation depends on the well being of the organization. 12% of the respondents
on this point of view, they may not have understood the concept.
5. Trade union leaders should be knowledge oriented about the organization
to respond to its requirements.
The above question of the questionnaire is pertaining to the respondents’
opinion towards the trade union leaders whether they are knowledge oriented about
the organization to respond to its requirements. The opinion collected from the
respondents is given below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
29 15 44% 2 2% 4 0 4% 50
Non-
executiv
es
14 25 39% 6 6% 5 0 5% 50
Interpretation:
The table shows that 83% of the respondents out of 100 , feel that the trade
union leaders should be knowledge oriented about the organization to respond to
its requirements whereas 9% of respondents are not in acceptance to the statement.
Similarly 8% of respondents are mentioned that they have no opinion over the
statement.
Out of 83% of majority respondents, it is observed that 44% of executives
and 39% of non-executives are in acceptance of the statement that trade union
leaders are necessarily be knowledge oriented about the organization to respond to
its requirements. Hence, the knowledge leader is an important element for the
success of an organization.
6. The IR situation is congenial in VSP.
The sixth question of the questionnaire is related to the congenialness of IR
situation in VSP. The response has been tabulated below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
16 28 44% 6 6% 0 0 0% 50
Non-
executiv
es
9 7 16% 33 33% 1 0 1% 50
7. The trade unions operating in VSP are cost conscious and do not
encourage in wasteful practices.
The seventh question of the questionnaire is related to the unions operating
in VSP towards cost conscious & wasteful practices. The respondents’ response is
given below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
14 30 44% 6 6% 1 1 2% 50
Non-
executiv
es
12 26 38% 6 6% 4 0 4% 50
Interpretation:
Opinion on the trade unions in VSP that they are cost conscious and they
discourage wasteful practices. 82% of respondents have responded positively
accepting the statement. Only 6% of the respondents have responded negatively.
About 12% of respondents have informed that they have no opinion over the role
of trade unions towards cost conscious and wasteful practices.
Hence, it is observed that 82% which forms a major portion of 100
respondents have accepted the statement. Thus it is proved that the role of trade
unions in VSP is cost conscious and discourages wasteful practices.
8. The participative fora in VSP play a significant role to reduce the
discontentment among workmen.
The above question in the questionnaire is related to the respondents
perception about the participative fora reduces the discontentment among workmen
in VSP or not. The response of the respondents is given below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
23 15 38% 11 11% 1 0 1% 50
Non-
executiv
es
17 23 40% 4 4% 6 0 6% 50
Interpretation:
78% of the respondents have accepted that the participative fora in VSP
play a significant role to reduce the discontentment among workmen. Only 7% of
the respondents have disagreed to the statement and 15% of the respondents have
informed that they have no opinion in this regard.
Out of 78% of the respondents who have positively responded, 40% are non-
executives 38% are executives. Therefore, the role of participative fora in VSP
is vital to reduce the discontentment among the workmen. It is to mention that
participative management in VSP is one of the parameter to devise the
prevalence of better IR in Visakhapatnam steel plant.
9. Sporadic IR scenarios are mostly common in VSP.
The ninth question of the questionnaire is to ascertain the opinion of the
respondents as to know whether the sporadic IR scenarios are mostly common in
VSP or not. As above the response collected from the respondents is shown
below:
Categor
y
A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executiv
es
6 11 17% 13 13% 15 5 20% 50
Non-
executiv
es
2 19 21% 14 14% 13 2 15% 50
Interpretation:
With regard to the sporadic IR situations, 38% of the respondents have
agreed that it is common in VSP whereas 35% of the respondents have
mentioned that it is uncommon. 27% have mentioned that they have no opinion
over the statement. It is observed that there is almost equal distribution over the
opinion by the respondents.
The tenth question of the questionnaire is to ascertain the opinion of the
respondents that the impact of IR scenario in VSP is noticed always or not. The
response collected has been tabulated below
10.Most of the IR situations developed due to the lack of understanding by
trade unions.
The eleventh question of the questionnaire is related to the respondents
perception about the IR situations developed due to the lack of understanding by
trade unions. The opinion of the respondents is collected and tabulated below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
20 20 40% 5 5% 5 0 5% 50
Non-
executives
19 11 30% 17 17% 3 0 3% 50
Interpretation:
It is understood from the table that 70% of the respondents have agreed that
the IR situations are developed due to lack of understanding by trade unions in
VSP, while 8% of the respondents have not agreed to the statement and attributing
it to various other factors. About 22% of the respondents have mentioned that they
have no opinion over the statement. The rate of positive response conveys that
most of the IR situations are due to the lack of understanding between trade unions
and the management.
11. Management is also responsible for bad IR scenario due to the nature of
demands to agree to the unions and the workmen.
The above question is related to ascertain the opinion about the role of
management for bad IR scenario due to the demands to agree to the unions and the
workmen. The response is tabulated below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
12 21 33% 5 5% 7 5 12% 50
Non-
executives
15 23 38% 6 6% 4 2 6% 50
Interpretation:
The table shows that 71% of the respondents have agreed that management
is also responsible for bad IR scenario when the same is not agreed by 18%, while
11% of the respondents have no opinion over the statement.
12. In VSP, comprehensive and effective IR policy is followed by the
management.
The above question is to obtain the opinion of the respondents over the
comprehensive and effective IR policy in VSP is followed by the management or
not. Accordingly the opinion collected is given below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
12 36 48% 1 1% 1 0 1% 50
Non-
executives
16 31 47% 1 1% 2 0 2% 50
Interpretation:
Regarding the IR policy being followed by the management of VSP, 95% of
the respondents have mentioned that it is comprehensive and effective when the
same is not agreed by only 3% which is very meager in size. Only 2% have
informed that they have no opinion over the statement. It is encouraging to note
that equal number of executives and non-executives are of the opinion that the IR
policy in VSP is comprehensive and effective.
13. Management is positively going ahead with expansion program as they
have confidence on the IR dynamics in the plant.
The fourteenth question of the questionnaire is related to the expansion
program i.e. management is positively going ahead with the expansion program or
not as they have confidence on the IR dynamics in the plant. The opinion of the
respondents is as follows:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
14 28 42% 8 8% 0 0 0% 50
Non-
executives
21 19 40% 10 10% 0 0 0% 50
Interpretation:
The table shows that 82% of respondents have positively responded that
management is positive with the expansion program as they have confidence over
IR dynamics in the plant and 18% have mentioned that they have no opinion on the
statement. It is to denote that no employee has given negative opinion over the
progress and the expansion activities in which both management and union are
confident to achieve the expansion within the schedule. 18% of the respondents
who have no opinion over the statement are treated to be unaware about the
expansion activities and its status, it might be due to their lack of knowledge over
the expansion program.
14. The management – union relationship is strengthened by the participative
management.
The fifteenth question of the questionnaire is all about the management –
union relationship that is strengthened by the participative management. The
response collected from the respondents is tabulated below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
24 25 49% 0 0% 1 0 1% 50
Non-
executives
22 19 41% 6 6% 3 0 3% 50
Interpretation:
The relationship of management – union is being strengthened by the
participative management as 90% of the respondents have responded positively
when only 3% of the respondents have not agreed the concept. 6% of respondents
have responded that they have no opinion over the statement.
15. In VSP, management has been always successful to keep the IR
situation under control.
The sixteenth question of the questionnaire is related to the successfulness in
keeping the IR situations under control in VSP. The response collected from the
respondents is given below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
11 30 41% 5 5% 4 0 4% 50
Non-
executives
13 28 41% 8 8% 1 0 1% 50
Interpretation:
82% of the respondents have responded that the IR situation is under control
and management has been always successful in it, when 5% of the respondents
have disagreed and 13% have responded that they have no opinion over the
statement. It is to appreciate that equal number of executives and non-executives of
41% each have realized that the IR situation is kept under control by the
management of VSP.
16. Unions affiliated to National level parties have a better scope to contribute
towards harmonious IR situation.
The above question is related to know the opinion of the respondents about
the National level parties towards harmonious IR situation. The opinion of the
respondents is shown below:
Category A B % of
A&B
C % of
C
D E % of
D&E
Tota
l
Executive
s
16 24 40% 3 3% 3 4 7% 50
Non-
executives
16 26 42% 5 5% 1 2 3% 50
Interpretation:
About 82% of the respondents have opined that the unions which are
National affiliated i.e., National level trade unions contributes better for
harmonious IR situation than the state affiliated and independent unions. It is to
observe that only 10% of the respondents have not agreed to the statement, while
8% of the respondents have informed that they have no opinion towards the
statement.
18.. Open question
This is the last question of the questionnaire through which we have
collected some suggestions from the employees i.e. both from the executive and
non-executive groups regarding the changes to be made by the management for
having better IR climate in VSP. The suggestions given by the employees are as
follows:
Suggestions:
Co-operation between management and unions can sort out IR problem in VSP.
For anything, organization interest is the key.
The employees should maintain good relations with the management.
Collective Bargaining is required for the settlement of the various issues.
Multiplicity of trade unions should be discouraged.
Workers Participation in the management will improve productivity.
Strengthening of Workers – Management relationship is essential for the
successful IR.
WORK STOPPAGES FOR THE YEAR 2010-11Sl.No Date Details of Major IR Event
01 27.05.10 WORK STOPPAGE BY CONTRACT WORKERS IN SMSShri D Bhuloka, an unskilled contract worker of M/s Sri Kiran Krishna Constructions, engaged in Structural Repair Works for buildings and technological structures including roof sheeting, fell down from 38 mtr. Level to 8.5 mtr. Level in SMS Converter-I at about 12.30 pm on 26.05.2010. He was immediately rushed to OHSRC, where he was declared brought dead. The workmen led by different unions brought back the body to SMS Converter area and kept it there. In the wake of the above fatal accident, the workers stopped production in SMS demanding permanent employment to the son of deceased worker. To avert any undesirable happenings, preventive steps were initiated including discussions with the General Secretary and President of Unions and the leaders of other Contract Labour Unions by DGM(P)-CER, and persuaded them not to precipitate the issue and to extend their cooperation in the interest of the Plant. ACP(South) was also requested for deployment of additional police force at Converter area to control the irate mob situation and to restore normalcy.
Discussions were continued in the meeting arranged at Convertor Control Room by GM(Steel) wherein Sr. Executives of SMS and St.ED, DGM(P)-I&M, AGM(P)/SMS, Manager(Per)-MM, Officials
of CER were present. After protracted discussions with the union representatives, It was explained to the unions that the family members of the deceased employee would be getting benefits like Rs.5 lakhs insurance, ESI monthly benefit Rs.3,350/- and pension under PF, Rs.5000/- towards funeral expenses besides employment under the same contracting agency. At around 8.10 pm the body was allowed to be sent for post-mortem and later, the workers resumed work. Tense situation prevailed and Police were present throughout and maintained Law and Order.
02 20.07.10 WORK STOPPAGE BY EMPLOYEES OF BATTERY-IV ON 19.07.2010
On 19.7.2010 at around 10.00 AM, about 20 union representatives of Visakha Steel Workers Union (Progressive Front) and INTUC, led to stop the work at oven top of Battery-4, demanding safe working conditions alleging leakage of gas and high temperature. After initial discussions by DGM(O)-CO&CCP, DGM(P)-I&M along with Personnel Executives of CO&CCP, GM(W) designate, GM(CO&RMHP), DGM (CRG), DGM(P)-I/cPP later participated in the discussions and assured that improvements will be brought about on safety standards etc. The union members were advised restraint and they were told that their request to post additional contract workers will be also taken into view. The issue has been resolved late in the evening on the assurance by the representatives of management to examine the request of the union to give additional contract labour in each shift.
03 24.07.10 WORK STOPPAGE AT CAST HOUSE IN BF BY PROGRESSIVE FRONT ON INCENTIVE ISSUE
Today, the representatives of Progressive Front staged a dharna initially in front of BF HOD’s office and later at Cast House demanding payment of incentive to BF employees on the basis of importance to the Core Department. The tappings were stopped from 12.15 pm onwards, in BF-II. The union representatives were told that they should desist such practices while the issue was being discussed at various levels.
The workers led by the Progressive Front union demanded that the revised incentive should be made effective from June, 2010 and that Management should give a commitment. GM(P&IR), GM(Oprn) and DGM(BF)I/c held discussions with the union representatives at Furnace-II and they were advised to resume the work keeping in view of Plant’s position as further discussions will continue on incentive issue. The union was told that a meeting is being scheduled for 26.07.2010 at 12.00 noon in the office of GM(P&IR) to discuss further. The union members agreed to resume the duties stating that the issue should be settled on 26.07.2010. DGM(P)-I/c PP, DGM(P)-I&M, Personnel Executives of BF and CER were also present. The employees resumed duties at around 4.30 pm.
04 12.08.10 WORK STOPPAGE BY OCR/ RMHP EMPLOYEES DEMANDING SUBSTITUTE MAN POWER
On 11.08.2010 in `C’ shift 35 Non executive employees of Brigade -2, OCR Section of RMHP deptt. did not report to work demanding for posting of one employees in place of Shri R.Bhima Prasad, E.No. 105870, Foreman (S)- (O) , who has been recently transferred to T &DC deptt,. on 04.08.2010.
GM (CO &RMHP), Sr. Executives of RMHP, DGM (P)-I& M & Sr. Manager (P)-RMHP visited the site and discussed with the employees. After verbal assurance given by Management to post one Junior Trainee from the `C’ shift of 13.08.2010 onwards in place of transferred worker, work was resumed at about 1.00 am on 12.08.2010.
07 16.09.10 WORK STOPPAGE BY CONTRACT WORKERS IN CO&CCP71 workers of M/s Multi Tech Constructions and 13 workers of M/s Surya Tej Engg. Works engaged in Battery-4 operation works have struck work since 13.09.2010 demanding payment of Special Miscellaneous Allowance (SMA). Out of these, 67 workers were earlier getting SMA while working in Projects Division through a special approval. However, after they were engaged in the regular maintenance under CO&CCP-Works, a proposal for payment of SMA to these workers has been initiated. It is understood that they are also stopping the refractory and mechanical works being carried by other contractors under Capital Repair Dept. HoD of CO&CCP along with DGM(O)/CO and Zonal Personnel advised the workers to resume the work immediately. The situation is being monitored.
08 05.10.10 CRANE ACCIDENT AT CCD PLAT FORM- EMPLOYEES AGITATED ALLEGING UNSAFE WORKING CONDITION
On 04.10.2010 at 5.15 pm. Tundish no. 99, which was being shifted to Tundish Car 1 at CCM-3 by FH Crane No.3, had fallen on the Tundish Car. This has sparked wide spread protests by the employees at CCD Platform. The employees refused to attend to the CCMs citing unsafe working conditions from around 5.30 pm onwards. They demanded immediate action on the person who is responsible for the accident and improvement in safe working conditions. DGM (SMS)-I/c held a meeting with the representatives of the Recognised Union, INTUC and a group of employees in the 1EP of Machine-3. The employees raised issues relating to Maintenance of all cranes, other machinery, poor welfare measures etc.On assurance by DGM (SMS)-I/c to constitute a committee to study in to their grievances and issues raised by them, the employees dispersed at around 10.00 pm. DGM (P)-I/c PP, DGM (P)-SCM, AGM (P)-SMS, DGM (O)-CCD, DGM (M)-I/c SMS and Sr. Executives of SMS also present in the meeting.
09 07.10.10 DISRUPTIION OF ACTIVITIES AT RMHP AREA ON
NON PAYMENT OF DUES TO THE WORKERS
It is reported that on 06.10.2010 the MD of M/s FRIL along with his workmen created a scene at the office of GM (Projects), RMHP and demanded release of due amounts since the works were llocated to M/s Sunil Hi-Tech Engg Ltd., Project Personnel and executives of Prohjects Department, persuaded them to maintain restrain. The crowd dispersed at around 5.30 pm. This morning also once again the workers resorted to agitation steps and the work resumed at 12.00 non. Police and CISF were present to avert any eventuality.
10 08.11.10 CONTRACT WORKERS STRUCK WORK IN RMHPAll the contract workers of RMHP Department have struck work from 06:00 a.m. onwards today demanding for settlement of pending issues as submitted to HOD-RMHP on 23-10-2010.Initially, GM(CP&C) held a meeting with the DGM (RMHP)I/c in the office of HoD wherein GM(P&IR), DGM(P)-PP I/c, DGM(P)-I&M, ZPE of RMHP and other senior executives were present.Subsequently, HOD (RMHP) and representatives of Personnel and RMHP held meeting with the CITU union on the issues raised by them. After lengthy discussions, the following points were decided to be looked into:1) To take action for processing of temporary passes of some Contract Workers of RMHP as permanent passes as per the guidelines.2) To arrange temporary enclosures with sheets for use by the female contract workers.3) To initiate proposal to constitute a committee to study other demands like dust allowance, positions as per their nature of work and other welfare amenities after studying the position throughout the Plant. Finally, the union has requested the management to complete the exercise of constituting the Committee, decisions on implementation of their request etc., within one and half months time. Management advised the union that since their issues are being positively taken up, the union should maintain restraint in view of the critical condition of the Plant. The work was resumed at around 1:00 P.M. today. Situation is being monitored by the Personnel Department.
11 13.11.10 DEMONSTRATION BY CONTRACT LABOUR UNIONS AT BC GATEContract labour unions affiliated to CITU, AITUC, HMS, INTUC &TNTUC staged a demonstration near B.C Gate from 8.00 am to 9.00 am today demanding to continue the contract workers even though the contractor changes. The members of unions raised slogans in support of their demand and addressed the gathering stating that they approached Management on the above issue and expect amicable solution. Due to persuasive efforts made with the
representatives of unions in the meeting held on 12.11.2010, there was no obstruction to the traffic movement. Police and CISF were present to oversee the Law and Order situation.
12 15.12.10 Work stoppage in SMS
Contract labour led by Contract Labour Union (CITU) engaged in the following jobs, struck work demanding immediate settlement of PF issue of M/s Mukundhara Engineers & Contractors in SMS.
a) Repair of Technological structures in Convertor Shopb) Technological upkeep of converter shop floors and equipmentsc) Repair and revisioning of various mechanical equipments of convertor in Convertor Shop d) Shell repair works in various sections of Converter ShopDiscussions were held in the office of HoD, yet stalemate continues and situation is being monitored closely.
13 16.12.10 CONTRACT LABOUR RESUME WORK AT SMS
Contract labour resumed to their duties in ‘B’ shift today following a meeting held in the office of DGM (P)-I/c PP, along with Sr Personnel officials, HOD of SMS and with the senior leaders of CITU. The union was advised to restore normalcy immediately in the interest of the Plant and in their own interest. Contractor of M/s Mukundhara Engineers & Contractors attended the meeting and explained that he had not defaulted in PF remittances and briefed that the problem occurred due to certain discrepancies in reconciliation of amounts transferred from Bank. Further the Contractor has given a written assurance that he would follow up with PF officials for early payment of claims made by his contract workers. With this union members were satisfied and normalcy was restored by 2 pm.
14 21.01.11 CONTRACT LABOUR STRUCK WORK IN BF ZONE
Today, at around 10.30 AM, a group of 25 workers of M/s JS Engineering engaged in Track Maintenance work in BF Zone struck work for not issuing muster card to one of the workers. AGM(Traffic) and Zonal Personnel Executives discussed with the TNTUC representatives for resumption of work. The Contractor, later explained that these workers were to carry on the work on piece rate but later demanded for time rate engagement. The contractor was advised to resolve the issue amicably as the work was suffering. It is learnt that the workers are likely to resume work by tomorrow.
02. CONTRACT LABOUR RESUMED TRACK MAINTENANCE WORK IN BF ZONE
The contract workers of M/s JS Engineering engaged in Track Maintenance work in BF Zone who struck work in the morning of 21.01.2011 for not issuing muster card to one of the workers, resumed their duties after discussion by the contractor with the representatives of TNTUC Contract Labour Union.
LIST OF REGISTERED TRADE UNIONS IN VSP
SNo NAME OF THE UNION & ADRESS PRESDT&GEN.SEC MOBILE NO01 Visakha Steel Employees Congress (INTUC)
(Regd.No.D-1085/89)G Venkata RaoM Rajasekhar
98663349799866136789
02 Steel Plant Employees Union (CITU)(Regd.No.D-597/82)
N Rama RaoD Adinarayana
93964555659849609777
03 Visakha Steel Workers Union (VSWU)(Regd.No.D-533/82)
04 Democratic Steel Employees Union (HMS)(Regd.No.D-1335/82)
N Appa RaoB Yellaji Rao
92923008489390028628
05 Republic Steel Employees Union (RSEU)(Regd.No.D-1979/04)
N PaidayyaKBR Ambedkar
939513337080191442739704563739
06 Rashtriya Ispat Mazdoor Sangh (BMS) (Regd.No.D-1343/93)
I LakshminarayanaG Harish Varma
98663157029440326226
07 Telugu Nadu Steel Employees Council(TNTUC)(Regd.No.D-1912/02)
P UgramV.Ramamohankumar
93464362049346295559
08 Visakha Steel Employees Union (VSEU)(Regd.No.D-482/80)
GRK NaiduM Simhachalam
9346071020 9346113799
09 United Steel Employees Union (DITU)(Regd.No.D-1397/94)
B ShankarD Suresh Babu
93482244039348254835
10 Congress of Visakha Steel Workers (CVSW)(Regd.No.D-1367/93)
DA NaiduP Rama Appa Rao
98661154499849490043
11 Steel Plant Employees Association(Regd.No.D-1862/00)
G Venkata RatnamV Srinivasa Rao
99089725009866356789
12 Visakha Steel Staff & Workers Union(AICTU)(Regd.No.D-1159/91)
Ch Sanyasi RaoAV Ramana
99669036159848394857
13 Visakha Steel Plant Workers & Employees Union(Regd.No.D-1461/95)
L Sanjeeva RaoB Sadhu Reddy
93463256839849389682
14 Visakha Steel Mazdoor Sangh (VSMS)(Regd.No.D-620/82)
Ch VSR MurthyT Jagadish
98481116809989694949
15 Union of Steel Employees (USE)(Regd.No.D-2041/06)
B Kameswara RaoK Paramdhamaiah
99494498899348497989
16 Andhra Nadu Visakha Steel Employees Union(Regd.No.D-1955/03)
A ManiD Appala Reddy
994982096093951517229 133358378
17 National Trade Union of Re-united Steel Employees Council S Chinna Rao 9908677245
(NTRSEC) (Regd.No.D-1499/96) G Satya Rao 9912374670
18 Visakha Steel Progressive Employees Union (VSPEU)(Regd.No.D-2044/06)
K Srinivasa NaiduASSVV Prasad
98496938779290431720
19 Visakha Ukku Shramika Sangh (TNTUC)(Regd.No.D-1113/90)
Koganti Lenin BabuBoddu Paidi Raju
98661996439908022555
20 The Greater Visakhapatnam Ukku Karmagara Employees’ Union(Regd.No.D-2063/08)
B VenkatarajuK Ramakrishna
94904940589391727606-07
21. Visakha Steel Janshakti Mazdoor Sabha (LPF)(Regd.No.D-2066/08)
N.Babu RaoK Sailash Babu
90006916929949799399
22 Hind Mazdoor Steel Employees Union (HMS)(Regd.No.32/2011)
D Appa RaoG Ganapathi
98668254679848395024
23 Steel Progressive Employees Union(Regd.No.003/2010)
J Ayodya RamuYT Das
93914456799347059630
LIST OF REGISTERED CONTRACT LABOUR UNIONS IN VSP
Sl.No. Name of the Contract Labour Union Affliliatio
nRetistration No &
Year1 STEEL PLANT CONTRACT LABOUR UNION CITU 519/80
2 VISAKHA INDUSTRIAL CONTRACT KARMIKA SANGHAM NONE D-533/81
3 VISAKHA UKKU CONRACT KARMIKA SANGAM NONE D-686/82
4 VISAKHAPATNAM STEEL PROJECT CANTEEN WORKERS’ UNION AITUC D-845/86
5 VISAKHA STEEL PROJECT CONTRACT WORKERS’ UNION AITUC D-878/86
6 VIZAG STEEL PLANT CONTRACT WORKERS’ UNION TNTUC D-1149/91
7 VISAKHA STEEL PROJECT CONTRACT WORKER’S UNION AITUC D1154/91
8 RAJEEV SHRAMA SHAKTI (STEEL CONTRACT WORKERS UNION) INTUC D-1257/92
9 STEEL PLANT CANTEEN EMPLOYEES UNION CITU D-1261/92
10 BHARATHA KARMIKA SANGAM NONE D-1330/93
11 VISAKHA STEEL PLANT CLUB, CANTEEN & HORTICULTURE WORKERS UNION AITUC D-631/95
12 VISAKHA INDUSTRIAL EMPLOYEES & WORKERS’ UNION NONE D-1409/95
13 VISAKHA DIVISION INDUSTRIES CONTRACT KARMIKA SANGHAM TNTUC D-1451/95
14 VIZAG STEEL PLANT WORKERS & EMPLOYEES UNION NONE D-1461/95
15 VISAKHAPATNAM STEEL CONTRACT LABOUR UNION NONE D-1640/97
16 VISAKHA UKKU CONTRACT LABOUR UNION NONE D-1664/97
17 VISAKHA STEEL CITY MOTOR WORKERS’ UNION AITUC D-1668/97
18 STEEL CITY CONTRACT LABOUR UNION DITU D-1824/2000
19 REPUBLIC STEEL CONTRACT LABOUR UNION NONE D-2042/2000
20 VISAKHA UKKU NIRVASITHA CONTRACT LABOUR UNION NONE 002/10
21 ANDHRA NADU VISAKHA STEEL CONTRACT LABOUR UNION NONE 005/2011
LIST OF REGISTERED TRADE UNIONS IN VSP
SNo NAME OF THE UNION & ADRESS PRESDT&GEN.SEC MOBILE NO01 Visakha Steel Employees Congress (INTUC) G Venkata Rao
M Rajasekhar98663349799866136789
02 Steel Plant Employees Union (CITU) J.Ayodhya ramuY T Das
93914456799347059630
03 Visakha Steel Workers Union (VSWU) D AdinarayanaN Rama Rao
98496097779396455565
04 Democratic Steel Employees Union (HMS) P Ramulu Naidu 9866285588
05 Republic Steel Employees Union (RSEU) N PaidayyaKBR Ambedkar
939513337080191442739704563739
06 Rashtriya Ispat Mazdoor Sangh (BMS)
I LakshminarayanaG Harish Varma
98663157029440326226
07 Telugu Nadu Steel Employees Council(TNTUC) P UgramV.Ramamohankumar
93464362049346295559
08 Visakha Steel Employees Union (VSEU) GRK NaiduM Simhachalam
9346071020 9346113799
09 United Steel Employees Union (DITU) B ShankarNB Bhaskara Rao
93482244039348654835
10 Congress of Visakha Steel Workers (CVSW) DA NaiduP Rama Appa Rao
98661154499849490043
11 Steel Plant Employees Association G Venkata RatnamV Srinivasa Rao
99089725009866356789
12 Visakha Steel Staff & Workers Union(AICTU) Ch Sanyasi RaoAV Ramana
99669036159848394857
13 Visakha Steel Plant Workers & Employees Union L Sanjeeva RaoB Sadhu Reddy
93463256839849389682
14 Visakha Steel Mazdoor Sangh (VSMS) Ch VSR MurthyT Jagadish
98481116809989694949
15 Union of Steel Employees (USE) B Kameswara RaoK Paramdhamaiah
99494498899348497989
16 Andhra Nadu Visakha Steel Employees Union A ManiD Appala Reddy
994982096093951517229 133358378
17 National Trade Union of Re-united Steel Employees Council (NTRSEC)
S Chinna RaoG Satya Rao 9912374670
18 Visakha Steel Progressive Employees Union(VSPEU)
K Srinivasa NaiduM Srinivasa Rao
98666360089885214189
19 Visakha Ukku Shramika Sangh(VUSS)
G Sankara RaoU Rama Krishna
99499578669949957866
20 The Greater Visakhapatnam Ukku Karmagara Employees’ Union B VenkatarajuK Ramakrishna
94904940589391727606-07
21. Visakha Steel Janshakti Mazdoor Sabha (VSJMS-LPF) N.Babu RaoK Sailash Babu
90006916929949799399
22 Hind Mazdoor Steel Employees Union (HMS) D Appa RaoG Ganapathi
98668254679848395024
LIST OF REGISTERED CONTRACT LABOUR UNIONS IN VSP
Sl.No. Name of the Contract Labour Union Affliliatio
nRetistration No &
Year1 STEEL PLANT CONTRACT LABOUR UNION CITU 519/80
2 VISAKHA INDUSTRIAL CONTRACT KARMIKA SANGHAM NONE D-533/81
3 VISAKHA UKKU CONRACT KARMIKA SANGAM NONE D-686/82
4 VISAKHAPATNAM STEEL PROJECT CANTEEN WORKERS’ UNION AITUC D-845/86
5 VISAKHA STEEL PROJECT CONTRACT WORKERS’ UNION AITUC D-878/86
6 VIZAG STEEL PLANT CONTRACT WORKERS’ UNION TNTUC D-1149/91
7 VISAKHA STEEL PROJECT CONTRACT WORKER’S UNION AITUC D1154/91
8 RAJEEV SHRAMA SHAKTI (STEEL CONTRACT WORKERS UNION) INTUC D-1257/92
9 STEEL PLANT CANTEEN EMPLOYEES UNION CITU D-1261/92
10 BHARATHA KARMIKA SANGAM NONE D-1330/93
11 VISAKHA STEEL PLANT CLUB, CANTEEN & HORTICULTURE WORKERS UNION AITUC D-631/95
12 VISAKHA INDUSTRIAL EMPLOYEES & WORKERS’ UNION NONE D-1409/95
13 VISAKHA DIVISION INDUSTRIES CONTRACT KARMIKA SANGHAM TNTUC D-1451/95
14 VIZAG STEEL PLANT WORKERS & EMPLOYEES UNION NONE D-1461/95
15 VISAKHAPATNAM STEEL CONTRACT LABOUR UNION NONE D-1640/97
16 VISAKHA UKKU CONTRACT LABOUR UNION NONE D-1664/97
17 VISAKHA STEEL CITY MOTOR WORKERS’ UNION AITUC D-1668/97
18 STEEL CITY CONTRACT LABOUR UNION DITU D-1824/2000
19 REPUBLIC STEEL CONTRACT LABOUR UNION NONE D-2042/2000
20 VISAKHA UKKU NIRVASITHA CONTRACT LABOUR UNION NONE 002/10
21 ANDHRA NADU VISAKHA STEEL CONTRACT LABOUR UNION NONE 005/2011
22 VIZAG STEEL MAZDOOR CONTRACT LABOUR UNION HMS C-004/2011
QUESTIONNAIRE ON INDUSTRIAL RELATIONS IN VSP
Please find here under a few questions/statements aimed for study and survey for academic purpose. You are requested to please indicate your immediate response in one of the columns against each question which in your opinion is most appropriate.
Name: _____________________
Designation: ________________
Department : ________________
No.of Yrs. Of experience: _________
S.No.
Question/statement Stronglyagree
Agree
Cannot say
Disagree
Strongly disagree
1. IR management machinery is very important in any large scale production industry like VSP.
2. The dispute settlement procedure (collective bargaining) followed by the management in VSP is able to resolve Industrial disputes satisfactorily.
3 The IR section and other Management machineries in VSP have been taking prompt action in solving grievances of employees.
4 The participative committees help in maintaining harmonious relationship
between employees and the Management.
5 One Union in one Industry is healthier for the promotion of Industrial relations.
6 The incentive schemes, awards, rewards introduced in VSP are additional welfare measures to the employees to motivate them for more efficient discharge of duties.
7 Political interference in the activities of Trade Unions will be adversely effecting the smooth relationship between the trade Unions and the Management.
8 When compared to other organisations, in VSP the Trade Unions have got a little role in achieving demands, since management itself extends many benefits.
9 Workers extend full support to the calls of Trade Unions on all occasions.
10 Trade Unions must acquire much more knowledge and information to sit across to discuss issues with the Management.
11 There should be more opportunities for the Trade Unions to associate in decision making at different stages to improve all round performance of VSP
12 Employees' satisfaction is the key as a motivational factor for higher productivity and performance.
13 The present grievance redressal system may not be sufficient to resolve the individual grievances of employees.
14 The Management is always pro-active in resolving the IR issues with cordial relationship with the Unions.
15 Contract Labour issues in VSP are one of the important influencing situations on IR scenarios.
16 The disciplinary procedure and its implementation by the Management are very satisfactory.
17 The procedure of Recognition of Trade Union supports the Management in maintaining IR situations under control.
18 VSP Management maintains very good rapport and relations with the concerned agencies like Labour Authorities, Govt. agencies etc., for their help in matters of IR settlements.
19 Compared to the allround activities in VSP and the conditions, the IR situation in VSP is more or less sound.
20. Employees repose confidence and trust on the Leaders of different Trade Unions with respect to up keep of their interests
21 The organizational culture and nature of employees in VSP indicates that despite differences and odd situations, they strive their best towards the targeted production etc.
22. In view of well established communication system, meetings and other methods, Management is able to resolve issue arising out of Trade Unions and such groups.
CHAPTER 5
SUMMARY,
FINDINGS, SUGGESTIONS,
CONCLUSION
SUMMARY
The over all Industrial Relations scenario in RINL / VSP is peaceful,
cordial
and healthy. A host of proactive IR measures which inter-alia include Confidence
Building Measures (C B Ms) between Union – Management, Extensive
communication, continuous interaction with unions and partnership in
Management in various participative forums have helped in developing a congenial
IR climate propitious for high production and productivity. With the dedication
and commitment of VSP collective, the organization has surmounted all odds and
achieved best ever records by crossing its rated capacities continuous efforts to
improve the employees morale have resulted in improving the technological and
operational discipline which ultimately helped in heightening the motivation of the
employees.
One of the most important factor is the productive work culture, which is
being considered as of crucial importance in Visakhapatnam steel plant. As such
several initiatives have been taken to adopt a multi-skill and multi-trade pattern of
working with emphasis on flexibility in job deployment thus ensured the optimum
utilization of its human resources. To augment the above, Visakhapatnam Steel
Plant has bagged runners-up award in the year 1994 in recognition of excellence in
Management, which has facilitated harmonious industrial relations in the
organization. Visakhapatnam Steel Plant also bagged the best Management award
for the year 2000-01 from the State government of Andhra Pradesh for outstanding
contribution in maintenance of industrial relations, labour welfare and productivity.
FINDINGS:
According to the opinion of various respondents in VSP it was found that
majority of employees are satisfied with the existing IR scenario in VSP. As we
all know that human wants are unlimited there do few employees who expressed
their dissatisfaction with the various IR practices exist in VSP?
The following are the findings of my study.
1. The overall IR situation is very cordial.
2. The safety measures and welfare measures taken by the management of VSP
are good.
3. All the employees of the organization are satisfied with the disciplinary
procedures and working conditions.
4. Grievance redressal forum is working very well.
5. Management attitude is positive towards the settlement of grievances,
because all the grievances are settled at the initial stages (i.e., at unit level)
6. Understanding between the superiors and subordinates is formal and cordial.
7. Political affiliation and Inter-union rivalry are the main cause for the
disputes between trade unions.
SUGGESTIONS:
1. It is better that Trade Unions should not have affiliation with Political
parties.
2. There should be a Grievance Handling Committee each at shop floor
level and at every departmental level. It should review its functions at regular
intervals.
3. There should be a proper and adequate two-way communication between
management and workers to increase the morale of both executives and
workers and ensure peaceful industrial relations and thereby achieve better
production & productivity.
4. To discourage the multiplication of trade unions it should discouraged
orr restricted at the stage of registration itself by the Registering Authority.
CONCLUSION:
Visakhapatnam Steel Plant has been considered as the best industrial
relations plant in the country with the young and dedicated workforce. In ture with
its concept, VSP has formulated contingent plans to maintain industrial peace
through harmonious relations between management and employees. It helps the
management to gain the support of employees for the promotion and
implementation of its plans and procedures. To sustain a peaceful IR climate
throughout the plant, VSP initiated continuous interactions with employees and
unions, proactive IR initiatives to maintain harmonious relations, effective
functioning of participative committees. One of the controlling absenteeism was
introduced of Dail Attendance Recording System (DARS). Another notable step is
access to the Chief Executive Officer (CEO) through “ACCESS” scheme for
redressal of employees grievances. Communication between employees and the
top management is being facilitated through open house forums.
Progressive concept of Joint Consultative Machinery (JCM) was set up in
the year 1996 with 3 major unions which secured more than 15% of votes polled in
elections with a view to reduce inter-union conflicts and to achieve consensus on
several work related issues and also to provide unions participation in the
management. Around 66 participative committees were constituted in the areas
like safety, canteen, welfare, recreation, sports & games, provident fund trust,
Superannuation Benefit Fund Scheme and Shop Floor Cooperative Committees.
The creativity of employees is nurtured and exploited by VSP through Suggestion
Scheme. This Scheme not only help the plant by way of substantial savings also
motivates the employees through recognition. VSP also introduced Quality Circles
(QCs) in a big way to facilitate the employees to discuss the work related problems
and come out with suitable solutions
ANNEXURE
A STUDY ON INDUSTRIAL RELATIONS SCENARIO AND ITS IMPACT
IN VISAKHAPATNAM STEEL PLANT
Please find here under a few statements with five options for each and I
request you to please indicate one option which is most appropriate, in your
opinion, by making tick in the relevant column. I undertake to state this
information shall be used only for my project work.
1 NAME:
2 AGE:
3 DEPARTMENT:
4 DESIGNATION:
5 EXPERIENCE IN VSP (YEARS):
S.No. Statement Totally
Agree
Agree Cannot
Say
Disagree Totally
Disagree
1. Positive IR is essential to
achieve the goals of an
organization.
2. In VSP, trade unions are
matured & play a vital
role to achieve the growth
of the org’n as well as the
employees.
3. The role of mgt. & Trade
unions are equally
important for the better IR
scenario, which directly or
indirectly contributes to
the functioning of the
organization.
4. IR situation is dependant
on the well being of the
organization.
5. Trade union leader should
be knowledge oriented
about the org’n to respond
to its requirements.
6. The IR situation is
congenial in VSP.
7. The trade unions operating
in VSP are cost conscious
& do not encourage
wasteful practices.
S.No. Statement Totally
Agree
Agree Cannot
Say
Disagree Totally
Disagree
8. The participative fora in
VSP play a significant role
to reduce the
discontentment among
workmen.
9. Sporadic IR scenarios are
mostly common in VSP.
10. The impact of IR scenario
in VSP is always noticed.
11. Most of the IR situations
developed due to the lack
of understanding by trade
unions.
12. Management is also
responsible for bad IR
scenario due to the nature
of demands to agree to the
unions and the workmen.
13. In VSP, comprehensive &
effective IR policy is
followed by the mgmt.
14. Management is positively
going ahead with
expansion program as they
have confidence on the IR
dynamics in the plant.
15. The management – union
relationship is
strengthened by the
participative management.
16. In VSP, management has
been always successful to
keep the IR situation
under control.
17. Multiplicity of trade
unions is a discouraging
factor in VSP commonly
for uncomfortable IR
scenario.
18. Unions affiliated to
national level parties have
a better scope to
contribute towards
harmonious IR situations.
19. IR scenario is one of the
factors to gauge the
performance of the
organization.
20. Your valued suggestions
to improve Industrial
Relations in VSP?
BIBILOGRAPHY
MANAGEMENT OF HUMAN RESOURCES ---- L.M. PRASAD
HUMAN RESOURCE MANAGEMENT ---- Dr.P.SUBBA RAO
INDUSTRIAL RELATIONS ---- Dr.P.SUBBA RAO
UNION MANAGEMENT RELATIONS AND GLOBALIGATION ------
C.S.VENKATA
RATNAM
SPECTRUM OF INDUSTRIAL RELATIONS ----- BAGARAM
TULPULE
INDUSTRIAL RELATIONS IN INDIA AND WORKERS INVOLVEMENT
IN
MANAGEMENT ----- V.P.MICHAEL