V CASE NO. 16: STATUS OF UNION Aircraft Maintenance Engineers of Indian Air Lines Corporation formed the bulk of engincers having AME license. The recent pay revision announced by Govt has resulted wide disparity between wages and allowance between Engineers and pilots. Engineers, accordingly joined together and formed the union and got it registered. Nearly 90 per cent of serving Engineers joined the union. During the recent negotiation with the managment, Engineers insisted to intreduce a clause to make union membership mandatory to all employed engineers which in other words talled “union shop.”” A section of union leaders preferred “maintenance shop”’ characteristics to their union where as some others insisted an ‘Agency-shop’ status. Opinions are also divided whether they should get themselves affiliated to National union. They decided to seck the opinion of a Consultant Questions 1, Asa consultant, what status you recommend for the Engineers union. [llustrade your answer with proper justification What will be your advice regarding their affiliation to the national union.ail Coolers as Basins EGL is a professionally managed company with a fair record of labour-management relations, Its headquartersare located in Nehru Place, New Delhi. It houses about 500 employees in three floors. One day, a senior manager in the human resource department observed that a few women employees were washing their hands afier lunch at the water cooler in the third floor. The manager immediately reported the matter to his supervisor, who got a notice put up and circulated it to all employees. It reads as follows: ‘It was observed that some employees are washing their hands at the water cooler. Water coolers are for dispensing drinking water. They are not meant for cleaning hands and utensils. Appropriate action will be taken against any one seen washing their hands/utensils at the water coolers.” The same evening a few empl barged into the concerned officer’s room and told him, ‘With no wash rooms and washing basins in the third floor and no lift in the building, what else do you expect us to do? Use the stationery?’ Over the next two days, more and more people start;d_imaking liberal use of the water cooler for the purpose of washing their hands and even utensils. The subject was discussed over the next few days with passion, animation, and animosity.Questions 1. Is the case above one of grievance or of indiscipiine? 2. What is the root cause of the problem? What is the solution? 3. If, during the domestic enquiry, it is found that the allegation is proved beyond reasonable doubs, can disciplinary action be taken against the charge-sheeted werker immediately on receipt of the enquiry report establishing the guil? 4. Can the presenting officer in domestic enquiry be a witness? 5. What are the rights of a charge-sheeted employee? 6. What is meant by the ‘principle of natural justice’?Holiday Duty You, Mr A of Alfa Community, are a newly appointed manager of a workshop, which has been categorised as an essential service. This means that the workshop must function on all days. Rules lay down that, at least, two individuals must be on duty irrespective of their seniority or specialisation. The workshop is manned by an equal number of individuals of the two communities, Alfa and Beta. A good tradition has been built, i.e. when one community has a festival, the workers from the other community man the workshop and vice versa. Recently, there were labour union elections and Mr B of Beta community has been elected as the leader. The new leader is reported to be very whimsical, though very good at heart. Your day of trial dawned when it came to light that on Friday next, both the communities claim to be their religious day. Both the communities want the other community to perform the duty on that day, While Alfa community is banking on you; the others are equally sure of their union leader from Beta community winning the day for them. You realise that there have been a lot of discussions and more negotiations and discussions are making the situation worse. The attitudes of both the parties are hardening and the last discussions had ended as a war of words. You do not want to damage the good relations between the two communities built over the years but still have to solve the problem. What will you do?Increasing Operations M/s Anant Printers is a small printing press. It has three tradle machines and one modern offset machine and DTP equipment. It has nine workers for doing all jobs in the press. The whole unit is just like a family and the proprietor has excellent relations with the workers. The press has a large number of orders. There is good demand and it can increase its operations, if the proprietor wishes to do so. The proprietor has come across four offset machines in a medium-size press at Mumbai, which has been closed due to the death of its owner. If the proprietor purchases these machines, the total number of workers would increase to twenty. The trade union would come forward and build a union of the workers in M/s Anant Printers. It is difficult to anticipate whether the wage rates could be maintained at the same level after union is formed. One alternative is to import fully automatic machine from Germany, then the number of workers could be limited, but the capital cost is very high, besides skilled technicians will have to be appointed to run the modern automatic machines. The cost of production is expected to be very heavy. Advice the proprietor on following questions: 1. Should the proprietor increase his operations or should he maintain the present set-up? 2. If he wants to increase his operations which alternative he should select? Why?Astra Corporation ‘The best test and the acid test of sound policy in industrial relations,’ said the General Manager, Astra Corporation, ‘is our ability to make a union unnecessary in this organisation. I say that,” he continued, ‘not because of any personal objection to unions. If | weze an employce of most organisations, I think, I wou!d belong to a union, even if I had to organise it. Unions neyer appear unless management is negligent. Employees join unions because management has somehow overlooked their interests and needs.’ Six months after this statement to his associates, the GM was presented with a demand for elections among the employees of Astra. Shortly after, the local office of Central Trade Union Congress, was certified as their bargaining agent. The GM immediately asks resignation of IR Director and his staff. The new IR Director was asked to get rid of the union within twelve months, Questions 1. Summarise the points you would make in agreeing or challenging the manager's viewpoint 2. How would you regard the test to be applied to the new Industria! Relations Director? 3. What should be the course of action for IR Director to get rid of unions?Sin TRE OEE Opening Case Globalisation and Industrial Relations? Personnel working in production and marketing | departments of Hindustan Fertilisers Limited were furious | during 2004 and 2005. The company did not grant deorness allowance based on the cost of living index in 2003, 2004 and 2005. In fact, the prospects for the year 2007 are slim. The company cut the benefits and welfare measures. Working conditions in the company have worsened. In fact, there has been over 20% staff shortage | in both the departments. Salaries in the company are 20% below than that of the competitors Mr Prakash-an employee in the Quality Control Department | was suspended from duties in December 2005 as he failed to attend to work for two days. Mr.Chakravarti one of the trade union leaders, made the following comments: “We have to do something here. Our morale is at an all time low. Our solories and benefits are low and the working conditions are quite poor. On the one side, management has not been taking care of employees and on the other side, it is disciplining the employees. Therefore, it is the time for us fo meet the management and get some answers. {| hope, the company won't enhance our salaries and benefits, if we keep quite. To get the appropriate levels of salary and benefits from the management, we must act as one. If we separate, we will go down the drain.” Mr-Arya Bhatt, the CEO of the company, on hearing rumours of the meeting, met the office bearers of the trade union to discuss the concerns of the employees with regard to the suspension of Mr.Prakash “Dear friends, | think we have a problem that needs immediate attention. Our employees are upset over a lot of things. In fact, their most outspoken member is getting them united. If we do not act quickly and wisely, our employees’ morale will | go down further. In foct, the company is under severe | competition particularly from the foreign competitors consequent upon globalisation. Company's finencial position is bleak and as such, we are unable to enhance salaries and benefits and improve the working conditions. The company has been contemplating to improve brand loyalty, market position, market share and financial position and then enhance employees’ compensation. As such, the company wants to improve employee commitment to the work. |, therefore, strongly feel that the action taken against Mr.Prakash| in the bes! interest of the company. I request you to Bo you ih ai you think thot the suspension of MnProkesh ws rivince the employees not fo fake any action in this regard too strike? Se eee vee to enhance their contribution. . }. What wauid be the outcome of the CEOs discussion with the! esiions office bearers of the trade union? |, What problems at Hindustan Fertilisers do you think led to the union problems? * 1 aELE SEED ES ITE ETE Clesing Case A Contended Employee and the Trade Union Mr.Raghupati started a carrier company in 1998 with just Rs.1,00,000 and three employees. He developed the company to the tune of Rs.100 million turnover and 300 employees by 2007. He wants to expand the operations of the company to new towns and also to new customers. The company had always paid higher salaries and provided better benefits than comparable employers in the city. But, he found that his employees wanted to form a union, even though he offers higher salaries One day Mr.Roghupati was overhearing the conversation of employees about the formation of union in the company. He thought for a while and got disappointed immediately as he has been one of the good pay masier; but yet he could not get the moximum contribution, commitment and support of the employees. He spent whole night thinking of the possible problem. He got into a different psychological state and started thinking of how he could make use of the situation for the betterment of the company. He got an idea that he should inspire the employees to form a union and let the union demand for still higher salaries. Immediately he implemented the idea and encouraged the employees to form a union. His idea worked well, Quite a surprise to the expectations of the employees, #4 Mr.Raghupati inaugurated the union and encouraged the! union to make their demands. Trade Union leaders after! «a yer met the CEO with a charter of demands. He made g counter proposal while appreciating the union leaders§ for their charter of demands. His counter proposal includes § additional contribution and commitment from employees; side for every rupee of hike in salaries and benefits. Trode union leaders appreciated and accepted the counter; proposal made by the CEO. Mr.Raghupati encouraged trade union leaders to enlighten: employees and enhance their deficiencies for higher wants and better life. Questions 1.Why were the employees not content with the salaries and benefits? 2. How do you analyse Mr.Raghupati's strategy of encouraging employees to form a trade union?