Case Study on Industrial Relations - Part 1

Case No.1: In Jay Engineering Works after a three months strike the work had resumed. However on the very first day of
resumption of work there was a problem on account of shortage of snacks in the first shift which resulted in a tool down. In the first
shift on the day of resumption of work, Samosas were served as snacks for breakfast. The normal rule was that each workman
should take only two pieces of snacks. However as the Samosas were tasty, the workmen started consuming more than two
Samosas which resulted in shortage of Samosas. Ashok, a workman who was a very reasonable person and who was considered
as very close to the management, had come late to the canteen. When he found that the Samosas were not available, he raised a
hue and cry and demanded from the Canteen Officer that Samosas should be served to him and that he would not accept any
other snacks except Samosas. The Canteen Officer expressed his inability to serve Samosas and instead offered to serve
biscuits. Ashok declined to accept the same and once again insisted that he should be served Samosas. When the canteen
Officer told Ashok that it was not possible for him to serve Samosas, Ashok got upset and took his grievance to the Union
Committee members. The Union Committee members felt that this was an opportunity for them to win over Ashok to their side.
They, therefore took up the cause of Ashok with the Canteen Officer. They threatened the canteen Officer that they resort to a tool
down if the grievance of Ashok was not resolved. The Canteen Officer expressed his inability to serve Samosas to Ashok, but
offered to serve biscuits instead. Not satisfied with the solution given by the Canteen Officer, the Union Committee members gave
a call for a tool down. The activities of Jay Engineering works came to a grinding halt.
As a Personnel Manager of this Company how would you handle this case?
CASE No. 2: A Multinational Company specialised in food processing has been operating in India for about 3 decades. The
Company has recently decided to expand its production. It was decided to shift the factory to a new location about 20 kms. away
from its present site. As the workers transferred to the new site were living in town, the union demanded an increase of Rs. 60/per month in the salary, but the Company offered to give Rs. 25/- only to cover the transport cost.
When the plant was being shifted to the new site, negotiations went on uninterrupted between the Management and the Union on
this issue. However both the parties could not come to a settlement even after 6 months.
The Management was firm on their decision even though the union indicated some flexibility. The Union refused to compromise
fully on the issue. They adopted go-slow tactics to pressurize the Management. The production went down drastically, but still the
Management was firm on their stand. In the meanwhile the Management charge-sheeted some of the Trade Union leaders and
suspended them pending enquiry.
Questions :
a)
b)
c)
d)

Analyse the case given above and elucidate the problem and causes.
Do you justify the Managements decision ? If Yes/No- why ?
Are the workers right in their approach ? Comment.
As a General Manager HR of this Company how would you resolve the
problem ?

CASE No. 3: The main business of Damodar Electric Supply Corporation is to supply electric energy to the entire district. The
Corporation has a work for, Mazdoors etc. General Manager is the Chief Executive, having full authority on all matters of
administration. During the last two years, the Corporation has come into financial problems due to economic recession. As such,
to bring control on the expenses the General Manager, has issued an unconditional order forbidding supervisory foremen to
authorise over-time work under any circumstances.
One day, a cable-laying workman was working inside a wet manhole, in the marshy area near a river. About an hour before
closing time he realised that he could not finish the job within the regular working hours. He estimated, that the work would be
over within four hours more. The foreman having no authority to grant over-time telephoned the Section Officer at the Head Office.
Section Officer, unwilling to breach the rule, contacted the Superintendent who in turn asked the Section Officer, to use his
discretion. Section Officer conveyed the same message to the foreman. The Foreman, however, was still afraid of the

consequences of over-time order. He therefore told the cable lay-man to wrap the cable securely and leave the work, to be
finished the next day.
During the night, the river went on flood. Water entered the man-hole by the river-side and the cabling was damaged. The
damage to the cable was corrected after many days, involving a great expenditure.
Questions
1.
2.
3.
4.
5.

Was the Corporations over-time policy wrong?

Does the Management-by-rule restrict the initiative of the staff and suppress innovativeness?
Under such rules, can there be a sense of achievement and job satisfaction for the subordinates?
Do you feel No Rules Situation can be advisable for a company?
Recommend an over-time Policy to the Damodar Electric Supply Corporation.

Some more case studies:

A) In a company employing 200 workmen there is a stalemate in the negotiations between the Management and the Union. The
Union has asked the workmen to resort to a slow down to pressurise the management to concede their demands. The slowdown
is to the extent of 50 to 60 %. You are the Personnel Manager of this Company. The Managing Director of this Company has
asked you to take drastic action to curb the slow down tactics of the Workmen. Explain as to how you would handle the situation.
B) A workman has joined a factory on 1st May 2007. He is on the rolls of the Factory till 31st December 2007. During this period
of 8 months, he has worked for 128 days. Will this workman get leave with wages under the Factories Act, 1948? If so, for how
many days and why? If not, why?
C) You are the Personnel manager of XYZ Company. On 3rd May, 2008 at about 19.30 hours you receive a phone call from the
Shift in-charge that a fatal accident has taken place on account of which 2 workers have died on the spot. There is a lot of
commotion inside the factory. He has asked you to advise him as to what is to be done in order .to comply with the provisions of
the Factories Act, 1948. Advise the Shift-in-charge accordingly.
D) Ramesh, a workman of Usha Electronics has been a chronic absentee. His past record is extremely poor. He has remained
absent continuously for 20 days from 1st April to 24th April 2008. Draft a Charge-sheet-cum-notice of enquiry scheduling a
Domestic enquiry on 5th May 2008 at 11.00 hours in the Personnel Department of the Company
E) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of financial
crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of Wages Act, 19936.
The Director of the Company has received a summons from the Authority under the Payment of Wages Act, 1936.
The Director of the Company has passed on the summons to you and asked for your comments on the same. The Director of the
Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
F) The wages of employees of XYZ Company is being paid by cash every month. The Director of the Company now wants the
wages to be paid by cheque instead of cash. You are the Personnel Manager of this Company. The Director wants to know from
you as to how the change is to be brought about.

CASE STUDIES IN INDUSTRIAL RELATIONS - Part 3

Case No. 1:
In a Company employing 500 employees, a Settlement has been signed between the Representatives of the

Management and the Union. The Settlement has been signed with the Recognised Union. Under the terms of the
Settlement the average raise given per workman is Rs.900/- per month .The Settlement is for a period of 3 years effective
from 1st January 2002 to 31st December 2004. The settlement provides for improvement in productivity by 10%. The
workmen are generally happy with the Settlement. All of them are religiously implementing the provisions of the
Settlement as far as improvement in productivity is concerned. After about one year when the other Companies signed
new settlements there was discontentment among the workers as the wages of workers in the other Companies had gone
up substantially. The workers were now discussing with their Union Leaders and telling them about the need to get some
further increases in their emoluments.
The Union leaders met the Representatives of the Management and told them that they were under very severe pressure
from the workers for demanding further increase in view of the changed industrial scenario .The Management
Representatives told the Union leaders that till the subsisting Settlement was in force they should not expect any increase
in their emoluments
The Union under pressure from the workers gives a supplementary Demand to the Management demanding an adhoc
increase of Rs.600/= per employee. They also told the Management that hereafter the operators would not do the job of
pushing the trolleys as this job has to be done by Helpers. Immediately thereafter one of the operator refused to push the
trolley which he had been doing for years together. The Supervisor told the workman that he should do the allotted job
otherwise it will be treated as a case of insubordination for which would be liable for punishment.
The workman however was reluctant to do the job of pushing the trolley and therefore the Supervisor reported the matter
to his Department Head. The Department Head took up the matter with the Top Management and it was decided to
Suspend the Workman pending enquiry. As soon as this was done the Union Committee Members who were present
gave a call for a lightening strike and the entire operations came to a standstill.
Analyse the case and answer the following questions
1.
Do you think the Union was right in putting up supplementary demands When the Settlement was still in
force.
2.
What do you think about the legality of the Settlement?.
3.
What advise would you give to the Management to deal with the lightening strike?.
4.
What action do you think should be taken against the workman who has refused to push the trolley?.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400
employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00
p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash
counter to collect his wages. The Cashier noted Sunil Deshpandes ticket number and searched for his wage packet and
he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his
wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and thats why he had come. On
this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the
identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his
identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was
legitimately entitled. Suresh and Direj, union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3: The main business of Damodar Electric Supply Corporation is to supply electric energy to the entire district.
The Corporation has a work for, Mazdoors etc. General Manager is the Chief Executive, having full authority on all matters
of administration. During the last two years, the Corporation has come into financial problems due to economic recession.
As such, to bring control on the expenses the General Manager, has issued an unconditional order forbidding supervisory
foremen to authorise over-time work under any circumstances.
One day, a cable-laying workman was working inside a wet manhole, in the marshy area near a river. About an hour
before closing time he realised that he could not finish the job within the regular working hours. He estimated, that the
work would be over within four hours more. The foreman having no authority to grant over-time telephoned the Section
Officer at the Head Office. Section Officer, unwilling to breach the rule, contacted the Superintendent who in turn asked
the Section Officer, to use his discretion. Section Officer conveyed the same message to the foreman. The Foreman,

however, was still afraid of the consequences of over-time order. He therefore told the cable lay-man to wrap the cable
securely and leave the work, to be finished the next day.
During the night, the river went on flood. Water entered the man-hole by the river-side and the cabling was damaged.
The damage to the cable was corrected after many days, involving a great expenditure.
Questions :
1.
Was the Corporations over-time policy wrong ?
2.
Does the Management-by-rule restrict the initiative of the staff and suppress innovativeness?
3.
Under such rules, can there be a sense of achievement and job satisfaction for the subordinates?
4.
Do you feel No Rules Situation can be advisable for a company?
5.
Recommend an over-time Policy to the Damodar Electric Supply Corporation.
Some more Case Studies:
A) In a company employing 200 workmen there is a stalemate in the negotiations between the Management and the
Union. The Union has asked the workmen to resort to a slow down to pressurise the management to concede their
demands. The slowdown is to the extent of 50 to 60 %. You are the Personnel Manager of this Company. The Managing
Director of this Company has asked you to take drastic action to curb the slow down tactics of the Workmen. Explain as to
how you would handle the situation.
B) You are the Personnel manager of XYZ Company. On 3rd May, 2008 at about 19.30 hours you receive a phone call
from the Shift in-charge that a fatal accident has taken place on account of which 2 workers have died on the spot. There
is a lot of commotion inside the factory. He has asked you to advise him as to what is to be done in order .to comply with
the provisions of the Factories Act, 1948. Advise the Shift-in-charge accordingly.
C) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of
financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of
Wages Act, 1936. The Director of the Company has received a summons from the Authority under the Payment of Wages
Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the same.
The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
D) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place
on account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948.
The factory inspector has prosecuted the Occupier and Manager of this factory for violation of the provisions of the
Factories Act, 1948. The Occupier wants to know from you as to what is the maximum and minimum punishment that can
be awarded to him under the Factories Act.
E) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He has
now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness
allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the
Company. Calculate the pension which Ashok should draw.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in
the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen
had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken,
he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to
stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take
against these 15 workmen.
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CASE STUDIES IN INDUSTRIAL RELATIONS - Part 2

CASE STUDIES IN INDUSTRIAL RELATIONS
Case No. 1:
In a Factory employing 300 workmen, there is a very strong Union led by the Bharatiya Kamgar Sena. The previous
settlement had expired on 31st of March 2002. The Union had demanded a wage increase of Rs. 2000 per month per
workmen. The Management had told the Union Committee Members that it was not in a position to pay such a hefty
increase since the Company was facing recession on account of competition arising out of the recession that was
prevailing in the market. The Management however told the Union that it was prepared to give an increase of Rs.800 per
month per workman for which they would have to give an overall improvement in productivity of 10%. The Union did not
accept the offer of the Management. It told the Management that their minimum expectation is Rs. 1500 per month per

workmen without any condition of improvement in productivity. They can think of improvement in productivity for any offer
above Rs.1500 per month. This led to a stalement. The Workmen under the instructions of the Union resorted to a slow
down in work.
They were found loitering about here and there having informal meetings and on many occasions refused to carry out the
lawful and reasonable orders of the superiors. The productivity of the Factory had fallen down to 50% and it became
difficult for the Management to carry out the activities in such a tense atmosphere.
The Managing Director of this Company is very much upset with the way the things are going on in the Factory. He tells
the Chief Personnel Manager of the Company to chalk out a plan of action to deal with the situation.
As the Chief Personnel Manager of this Company chalk out a plan of action you feel suitable to deal with the situation.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400
employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00
p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash
counter to collect his wages. The Cashier noted Sunil Deshpandes ticket number and searched for his wage packet and
he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his
wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and thats why he had come. On
this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the
identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his
identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was
legitimately entitled. Suresh and Direj union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3
A Company which was started 6 years back on a humble beginning with 50 workmen on a turnover of 20 lakhs had
grown in leaps and bounds and today the turnover of the company is 3 crores with a manpower strength of 300
employees.
The wages in this company was being paid on the 4th of the subsequent month right from the inception of the company.
Most of the employees were residing in the city. The companys factory was situated in a remote place about 25kms. from
the city. One day when the cashier went to the bank to collect cash from the Central Bank of India, on his way back he
was stopped by dacoits, who at gunpoint took away the entire cash of Rs.4 lakhs that was meant for disbursement of
wages on the 4th of that month. The casher returned bare handed to the factory and informed the Managing Director
about the cash being taken away by the dacoits.
The Managing Director summoned a meeting of the Union Committee and appraised them of the happenings and
expressed his inability to pay wages on 4th of the month. He said that he would arrange to pay the wages by the 15th of
the month. The Union leaders positively responded to the suggestion of the Managing Director, but complained that
practically every month they come across many grievances of the workmen particularly relating to wages being paid for
less number of days than worked, overtime wages being paid for less numbers of hours than worked, less/more society
deductions etc. which have to be adjusted in the subsequent months.
The Managing Director calls the Personnel Manager and tells him about the grievances of the employees regarding the
payment of wages. The Personnel Manager tells the Managing Director about the problems faced by the Personnel
Department for paying wages on the 4th of each month. He tells him that the Consumer Price Index numbers on which
the Dearness Allowance is paid is available only on the 1st or 2nd of the month. The leave cards of the workmen dully
filled in and sanctioned by the Department Heads comes very late to the time office. In many cases leave cards do not
reach the Time office even on the 2nd of the month pertaining to the leave availed during the last week of the previous
month. The overtime slips duly authorized and sanctioned by the Dept. Head comes to the Personnel Department only on
the 2nd or 3rd of the month. He further tells the Managing Director that on the 2nd or 3rd of the month, the Personnel
Dept. employees have to work right up to the early hours of the morning to prepare the wage roll.
The Managing Director after hearing the problems of the Personnel Department is upset .He tells the Personnel Manager

to have a dialogue with the Union and change the date of payment of wages from the 4th to the 7th of the month.
He also tells the Personnel Manager to ensure that hence forth the wages should be paid by Cheque and not by cash as
he does want to take risk of getting large sum of money in cash from the bank.
As a Personnel/HRD Manager how will you bring about changes in an amicable manner without affecting the cordial and
peaceful industrial relations
that are existing in the Company. Also examine the legal provisions that are to be followed to bring about the above
changes.
Some more case studies:
A) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place on
account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948. The factory inspector has
prosecuted the Occupier and Manager of this factory for violation of the provisions of the Factories Act, 1948. The
Occupier wants to know from you as to what is the maximum and minimum punishment that can be awarded to him under
the Factories Act.
B) Ramesh, a workman, working in the machine shop of XYZ Company meets with an accident resulting in 20% loss of
earning capacity. Ramesh was drawing a wage of Rs. 6440/- per month. His age was 20 years and the relevant factor for
the purpose of calculating compensation was 206.23. Calculate the compensation payable to Ramesh under the
Workmens Compensation Act, 1923.
C) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He
has now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness
allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the
Company. Calculate the pension which Ashok should draw.
D) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of
financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of
Wages Act, 19936. The Director of the Company has received a summons from the Authority under the Payment of
Wages Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the
same. The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
E) The wages of employees of XYZ Company is being paid on the 4th of every month. The Director of the Company now
wants the wages to be paid on the 7th of the month instead of the 4th of the month. You are the Personnel Manager of
this Company. The Director wants to know from you as to how the change is to be brought about.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in
the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen
had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken,
he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to
stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take
against these 15 workmen.