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Ms-24 dec 2008

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MS-24    dec-2008


1. Present  a  brief account  of industrial  relations  (IR) in  India. Discuss  the  current developments  in  IR.

2. Explain  how  internal  affairs  of  the  union  are managed.  Outline  the factors  responsible  for persistence  of outside  leadership  in  the  unions in India.

3. Explain  the  concept  of  collective  bargaining (CB)  and  discuss the  emerging  issues  of  CB in India.

4. Describe different  approaches  to.  Grievance resolutions.  Discuss  the recommendation  of National  Commission  on labour  for  effective grievance  procedure.

5. Write  short  notes  on  anY  three  of  the following  :

(a)  Arbitration.

(b)  Activities  of managerial  associations.

(c)  Red  hot  stove  rule.

 (d)  Craft union.

(e)  Misconduct


6. Read  the  case  carefully  and  answer the questions  given at the  end.

V.  J.  Textiles  is  a  leading  industry having a workforce  of  more than  1200  employees, engaged  in  the  manufacture  of cotton  yarn of different counts.  The company  has  a well-established  distribution  network  in  different parts  of the  country. It  has  modernised  all its plants,  with  a  view  to  imProve  the productivity  and  maintain  quality.  To maintain good human relations  in  the plants and  the  organisation as a whole,  it  has extended  all  possible  facilities  to  the employees.  Compared to  other mills,  the employees  of  V.  J.  Industries  are enjoying higher  wages  and  other  benefits. The company has a Chief Executive, followed  by Executives  in-charge  of different functional  areas.  The  Industrial  Relations Department is  headed by  the  Industrial Relations Manager.  The  employees are represented  by five trade  unions  -  A,B,  C,D and E  (unions  are alphabetically  presented based  on membership)  -  out of which  the  top three  unions  are  recognised  by  the management  for  purposes  of  negotiations.  All the  unions  have  maintained  good  relations with  the  management individually  and collectively.

For  the  past  ten years,  the  company  has been  distributing bonus  to  the  workers  at  rates more than  the  statutory minimum  prescribed under  the  Bonus  Act.  Last  year,  for  declaration of rate  of  bonus,  the  management  had  a  series of discussions  with  all recognized  unions and finally  announced  a  bonus,  which was  in turn agreed  upon by  all  the  recognized  unions. The very  next  day  when  the  management  prepared the  settlement  and  presented  it  before  the  union representatives,  while  Unions  A and  C  signed the  same,  the  leader  of Union B  refused  to do so  and walked out,  stating that the  rate of  bonus declared was not  sufficient.  The next  day, Union  B  issued  a  strike  notice  to  the management  asking for  higher  bonus. The

 management  tried  its level  best  to  avoid  the unpleasent  situation,  but in vain.  As a  result, the  members  of Union B  went on strike.  They were  joined  by the  members  of Union D. During the  strike,  the  management  could probe  the  reason  for the  deviant  behaviour  of Union  B leader;  it  was found  that  leader of Union A"  soon  after  the  first  meeting,  had  stated in  the  presence  of a group  of workers, "  It  is because  of  me  that the  management has  agreed to  declare  this  much amount of bonus to the employees;  Union  B has miserably failed  in its  talks  with  the  management for  want  of initiative  and  involvement".  This  observation somehow  reached  the  leader  of Union  B as  a result  of which he  felt insulted, Soon  after identifying  the  reason  for

Union  B's  strike call,  the Industrial  Relations Manager  brought  about  a  compromise

between the  leaders of  Unions  A  and  B. Immediately  after  this  meeting  the  strikers

(members  of Unions B  and D) resumed  work and  the  settlement was  signed for the same rate of bonus  as  was originally  agreed  upon.


(a)  Was the  leader of  Union  A  justified  in making remarks  which  made  the  leader of Union B  feel  offended ?

(b)  What  should  be management's long  -term  strategy  for  avoiding  recurrence  of inter-union  differences  on such  issues  ?

(c)  If  you  were  the  Industrial  Relations Manager what  would  you  have done had the  Union  B resorted  to  strike for  a reason  other than that mentioned in  the case  ?

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