Company Profile

 Headquartered in Calcutta.

BATA
 Bata sold over 60 million pairs per annum in India and also exported its
products

 Plants located in Batanagar (West Bengal), Faridabad

(Haryana), Bangalore (Karnataka), Patna (Bihar) and Hosur (Tamil
Nadu).

 Distribution network of over 1,500 retail stores and 27 wholesale depots.

 Bata was India's largest manufacturer and marketer of footwear

products.

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  Reasonably priced

 Sturdy footwear

 Market valuation of Rs 3.7 billion

 Employed over 15,000 people in its

manufacturing and sales operations.

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 BACKGROUND
• 1990- signed agreement with AIBSMU, which stipulated
that the management would fill up 248 vacancies in its
retail outlets.

• 1995 - BSO restructured the entire board and sent in a

team headed by Weston.

 Sold its headquarter building in Calcutta for Rs 195 million.

 Company shifted wholesale, planning & distribution, and the
commercial department to Batanagar, despite opposition from
the trade unions.
 Implemented a massive revamping exercise
 Decided to stop further recruitment
 Allowed redundant staff to fill the gaps created by
superannuation and retirements.
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  1996-Reported net profits of Rs 41.5 million
on revenues of Rs 5.9 billion.

 1997-Reported net profits of Rs 167 million on

revenues of Rs 6.7 billion.

 Rewarded workers with a 17% bonus

 Workers achieved 93% of their production targets
Faced problems of a high-cost structure and
surplus labour.

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  Weston failed to strike a deal with the All India Bata Shop
Managers Union (1992)
 AIBSMU opposed the move to sack all the cashiers in
outlets with annual sales of less than Rs 5 million, which
meant elimination of 690 jobs.

 1998- first time signed long-term bipartite agreement with

the unions without any disruption of work.
 1999-February 1999, a lockout(8 months) was declared in
Bata's Faridabad Unit

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  March 8, 2000-lockout was declared at Bata's Peenya factory in
Bangalore, following a strike by its employee union

 July 2000-Lifted the lockout at the Peenya factory.

 Workers opposed the company's move to get an undertaking

from the factory employees to resume work.
 Employees demanded revocation of suspension against 20 of
their fellow employees.
 Demanded that conditions such as maintaining normal
production schedule, conforming to standing orders and the
settlement in force should not be insisted upon.
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  September 2000- Bata was headed for a labor dispute
when the BMU asked the West Bengal government to
intervene in what it perceived to be a downsizing exercise
being undertaken by the management.

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 REASONS FOR STRIKE
 Downsizing
 Change in management
 Increase in working hours
 Change in employment policy
 Demand of union for workers participation in management.
 Wage hike

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 MEASURES TAKEN BY BATA
1995,96 &98
 Bipartite agreements to resolve labour concerns

1999
 Signing of three year wage agreement that included fiscal
benefits.
 Payment of Rs 4000/employee.
 Management agreed to include 10% of 400 contract labors

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 OUR VIEWS
 Bata should not give the charge to expatriate manager as it
brought the feeling of distrust with the management
 Secondly, they shouldn't begin the downsizing exercise
instantaneously and rapidly. It should be a slow exercise.
 Instead of outsourcing 23 million pairs per year from other
industries, they should have started manufacturing it in their
own unit.

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