A PROJECT ON INDUSTRIAL RELATIONS SCENARIO AND ITS IMPACT AT VISAKHAPATNAM STEEL PLANT A PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY GOURI SANKAR ACHARYA Regd No. 1106222004 UNDER THE GUIDANCE OF Mr. O.R.M RAO ASST. GENERAL MANAGER (HRD) & Mr. R. APPA RAO Jr. Officer(Personnel) IR VISAKHAPATNAM STEEL PLANT FACILIATED BY SRI O.R.M RAO (AGM, HRD) SRI M.L.S VARMA (DY.MANAGER)
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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
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)
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