Case : Hindustan Lever Limited

MACRO ISSUES

Exemptions from licensing, excise to small

scale

sector

Legislation of Contract labour

Mergers, Amalgamation, and Takeovers

Diversification and geographic relocations

MACRO ISSUES

Shift in Union focus from wages to protection of

jobs

Decontrol and delicensing

Competition from small and local players

Restructuring and modernisation

Productivity, cost and quality

Micro Level Issues

Union

Inter-Union dynamics

Contract labours

Influence of Datta Samant

Reaction to restructuring

Federation

Subcontracting to rural sector

Bitter taste with attitude of management

Linking wages with productivity
Mathadi work by permanent workers
Individual settlement

Management

External compulsions - Competition

Restructuring

Decentralise production relocation

Showdown union

Reluctance in signing settlement

Developing a culture of awards

Counter proposals Quick gains

Calculations about workers attitude towards union

Dependance on Government intervention

Under-estimating Mathadi issue

Solving Mathadi issue with permanent workers

Preference to individualism

BAJAJ LOCKOUT
CONCERNS FOR THE MANAGEMENT
IMMEDIATE:
LIFT LOCKOUT AND RESUME OPERATIONS
ARRANGE FINANCES FOR LOCKOUT
SHORT TERM :
RECOVER LOSSES FINANCIAL & MARKET
LONG TERM :
RE - EXAMINE PERSONNEL POLICIES
REVIEW EXPANSION PLANS
ENFORCE AUTOMATION TO REDUCE EMPLOYEES
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SOME IMPORTANT ACTIONS AND EVENTS

LOCAL RECRUITMENT OF EMPLOYEES

NO TRANSFER FROM PUNE PLANT

PROMOTE INTERNAL UNION NURTURED BY
MANAGEMENT
DEFINING SCOPE AND ROLE OF TRADE UNION
UNION CONTINUED FOR MORE THAN 18 MONTHS
WITHOUT REGISTRATION
CHANGES IN STANDING ORDERS WITHOUT PROPER
INFORMATION TO WORKERS
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WORKERS LOSING FAITH IN EXISTING UNION FORMED

NEW UNION

NEW UNION SUBMITTED CHARTER OF DEMAND

MANAGEMENT OFFERED WAGE REVISION WORKERS
REJECTED OFFER
LOCKOUT DECLARED DUE TO GROSS VIOLENCE AND
INDISCIPLINE
MANAGEMENT MOVED COURT AGAINST UNION
UNION ALSO MOVED COURT AGAINST MANAGEMENT
UNFAIR LABOUR PRACTICES
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WHERE POLICIES OF
MANAGEMENT
WENT WRONG ?
HANDLING OF UNION
AMENDMENT IN STANDING ORDER
RESOURCING POLICY

LOCAL MARKET

QUALITY OF WORKLIFE
SOCIAL ENGINEERING -

ASPIRATIONS OF YOUNG

WORKERS

DISPARITY BETWEEN PUNE AND WALUJ

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BROAD LEARNINGS FROM THE

CASES
An ill organisation is likely to more conflict prone

An ill organisation is likely to be influenced from external environment

leading to imbalances

Consultative practices require strong institutional bases

Effectiveness depends on how organisation devotes energy to solving

and understanding tasks.
Conflict resolution pre-requires understanding of organizational dynamics
and processes that led to distortions

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 IF OUR SOCIAL SKILLS HAD ADVANCED STEP

BY STEP WITH OUR TECHNICAL SKILLS, THERE
WOULD NOT HAVE BEEN ANOTHER EUROPIAN
WAR

MAYO

GEORGE ELTON

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I came long ago to the conclusion that the three most

important requirements for getting along with people were,
First, Communication. The importance of frank and
sometimes continuous discussion between people or groups
Second is the need for total honesty and sincerity in
dealing with people. Third is to trust and, if possible, to
like the people with whom one deals and inspire a similar
response to them J.R.D. Tata
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CAUSES OF INDUSTRIAL PEACE

Finally
..
MANAGEMENT INITIATIVES

1. The Companies were convinced that unions were here to stay

2. Management cooperated in building the strength, prestige and
membership support of unions to increase the unions
responsibility.
3. Information sharing and advance consultation on matters
affecting job interests o employees.
4. Good personnel administration and developing outside the scope
of formal bargaining.

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UNIONS INITIATIVES:
1. Unions considering economic position of Company
2. Unions acting as the main channel of communication between
management and employees.
3. Proactive unions.
4. Unions attempting to build prestige and influence in local and
national affairs.
Based on 18 Case studies by NPA, USA

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