INTRODUCTION

Industrial Relations

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within
the industry between the employer and his workmen.”1

Industrial relations is used to denote the collective relationships between management and
the workers. Traditionally, it covers aspects of industrial life as trade unionism, collective
bargaining, workers’ participation in management, discipline and grievance handling,
industrial disputes and interpretation of labor laws and rules and code of conduct.

Industry:
Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by
co-operation between an employer and his workmen for the production, supply or
distribution of goods or services with a view to satisfy human wants or wishes whether or
not any capital has been invested for the purpose of carrying on such activity; or such
activity is carried on with a motive to make any gain or profit. Thus, an industry is a whole
gamut of activities that are carried on by an employer with the help of his employees and
labors for production and distribution of goods to earn profit.

Employer:
An employer can be defined from different perspectives as:-

 a person or business that pays a wage or fixed payment to other person(s) in exchange
for the services of such persons.
 a person who directly engages a worker/employee in employment.
 any person who employs, whether directly or through another person or agency, one
or more employees in any scheduled employment in respect of which minimum rates
of wages have been fixed.

As per Industrial Disputes Act 1947 an employer means:-

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  in relation to an industry carried on by or under the authority of any department of
[the Central Government or a State Government], the authority prescribed in this
behalf, or where no authority is prescribed, the head of the department;
 in relation to an industry carried on by or on behalf of a local authority, the chief
executive officer of that authority;

Employee: -

 Employee is a person who is hired by another person or business for a wage or fixed
payment in exchange for personal services and who does not provide the services as
part of an independent business.
 An employee is any individual employed by an employer.
 A person who works for a public or private employer and receives remuneration in
wages or salary by his employer while working on a commission basis, piece-rates or
time rate.
 Employee, as per Employee State Insurance Act 1948, is any person employed for
wages in or in connection with work of a factory or establishment to which the act
applies.

In order to qualify to be an employee, under ESI Act, a person should belong to any of the
categories:

o those who are directly employed for wages by the principal employer within the
premises or outside in connection with work of the factory or establishment.
o those employed for wages by or through an immediate employer in the premises of
the factory or establishment in connection with the work thereof
o those employed for wages by or through an immediate employer in connection with
the factory or establishment outside the premises of such factory or establishment
under the supervision and control of the principal employer or his agent.
o employees whose services are temporarily lent or let on hire to the principal employer
by an immediate employer under a contract of service (employees of security
contractors, labor contractors, house keeping contractors etc. come under this
category).

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Employment: The state of being employed or having a job.

Labor market:

The market in which workers compete for jobs and employers compete for workers. It acts as
the external source from which organizations attract employees. These markets occur because
different conditions characterize different geographical areas, industries, occupations, and
professions at any given time.

3.1 OBJECTIVES OF THE STUDY

1. To understand and analyse the current Industrial Relations scenario at Aditya birla
ltd
2. To understand the working of the Industrial Relations department at Aditya birla
ltd
3. To study the impact of current Industrial Relations scenario on employees’ work-
life.
4. To study the various measures taken by the IR dept to maintain cordial relations
between the workers and the management.

RESEARCH METHODOLOGY OF THE STUDY:

The study is both descriptive and analytical in nature. It is a blend of primary data and
secondary data.The primary data has been collected personally by approaching the online
share traders who are engaged in share market. The data are collected with a carefully
prepared questionnaire. The secondary data has been collected from the books, journals and
websites which deal with online share trading.

Source of data

Primary Sources: The primary data was collected through structured unbiased questionnaire
and personal interviews of investors. For this purpose questionnaire included were both open
ended & close ended & multiple-choice questions.

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Secondary method: The secondary data collection method includes:
 Websites
 Journals
 Text books
Method Used For Analysis of Study
The methodology used for this purpose is Survey and Questionnaire Method. It is a time
consuming and expensive method and requires more administrative planning and supervision.
It is also subjective to interviewer bias or distortion.
Sample Size: 100 respondents
Sampling Unit: Businessmen, Government Servant, Retired Individuals

Statistical Tools: MS-excel and pie and bar diagrams are used to analyze the
data.

RESEARCH INSTRUMENTS:

A questionnaire was designed (both in English and Hindi) to collect the data for the
research.The questionnaires were structured.

QUESTIONNAIRE DESIGN:

The questionnaire maily consists of two parts:-

1. Questions related to current scenario of Industrial Relations at Aditya birla ltd

2. Working of the Industrial Relations department.

The questionnaire consists of 25 questions for which respondents gave their responses on
either a likert scale ranging from “strongly disagree” to “strongly agree”or simple scales
with options Yes /No.

Limitations

a. As BSP is a very large organisation it was not possible to cover each and every

department for the survey.

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b. Few respondents were reluctant or suspicious in responding to questions.
c. Respondents may not reveal the fact because of job insecurity.
d. The respondents’ opinion can be biased.
e. Looking at the number of questions, few respondents did not give their opinion

because they did not have enough time to fill it.

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 CHAPTER-II
INDUSTRY & COMPANY PROFILE

INDUSTRY & COMPANY PROFILE

Aditya Birla Group
Aditya Birla Group is an Indian multinational conglomerate, headquartered
in Worli, Mumbai, India. It operates in 35 countries with more than 120,000 employees
worldwide. The group was founded by Seth ShivNarayan Birla in 1857. The group has
interests in sectors such as viscose staple fiber, metals, cement (largest in India), viscose
filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial
services, telecom, BPO and IT services. The group had revenue of approximately US$44.3

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billion in year 2018. It is the third-largest Indian private sector conglomerate behind Tata
Group with revenue of just over US$100 billion and RIL with revenue of US$74 billion.
NON-FERROUS METALS
Main articles: Hindalco and Novelis
The Group's non-ferrous metals are under Hindalco Industries. Its manufacturing locations
are primarily in India and it owns mines in Great Sandy Desert, Australia near Nifty Airport
called Birla Nifty Copper Operation. On 11 February 2007, the company entered into an
agreement to acquire the Canadian company Novelis for US$6 billion, making the combined
entity the world's largest rolled-aluminium producer. On 15 May 2007, the acquisition was
completed with Novelis shareholders receiving $44.93 per outstanding share of common
stock. The Group plans to close a part of its aluminium foil making mill in UK and shift that
to its plant near Nagpur.
Hindalco makes alumina chemicals, primary aluminium, rolled products, alloy wheels,
roofing sheets, wire rods, cast copper rods, copper cathodes and several other products.
Cement
Main articles: UltraTech Cement and Grasim IndustriesThe Group's cement business was
earlier under Grasim Industries and UltraTech Cement. The two entities have now been
merged into UltraTech Cement to form India's largest cement company. UltraTech Cement
was acquired from L&T in 2004.

Carbon black
After purchasing Columbian Chemicals Cothe Group is now the largest manufacturer
of Carbon black worldwide.
Textile business
The Aditya Birla Group is the world's largest producer of Viscose staple fibre. It operates
from India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart
from viscose staple fibre, the group also owns acrylic fibre business in Thailand, viscose
filament yarn businesses and spinning mills in India and South East Asia. The group has pulp
and plantation interests in Canada and Laos. It also owns the Domsjö factory in Sweden
which exports viscose today. The Swedish government is hoping to negotiate further
investments in Sweden, in particular in the hyper-modern future biorefinery in the city
of Örnsköldsvik.[18] Its two companies i.e. Aditya Birla Nuvo Ltd and Grasim Bhiwani
Textiles Ltd which is a subsidiary of Grasim Industries are in textile business. Grasim

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Industries was recently placed 154th in a list of the world’s best regarded firms compiled by
Forbes.
Fashion
See also: Pantaloons Fashion & Retail
Aditya Birla Group sells in-house and other branded apparel via brick-and-mortar and online
stores. The group's firm Aditya Birla Fashion & Retail Ltd sells in-house brands such
as Louis Philippe, Allen Solly, Peter England and People via their individual brand stores and
through other multi brand outlets. It also operates a multi brand fashion retail chain
Pantaloons which it acquired from Future Group.
The group ventured into niche target and select portfolio apparel in October 2015
with Abof. However the group decided to shut ABOF citing non profitability of eCommerce
sector.
Planet Fashion
Planet Fashion is a men’s clothing brand. Commencing in 2001, Planet Fashion now has
more than one hundred fifty retailers in 100 cities throughout India. Planet Fashion, [23] right
now, is an acronym being a menswear getaway giving comprehensive closet alternatives for
all those occasions, around price things, while using greatest brands throughout each
category.
The Aditya Birla Group’s retail store enterprise – Madura Fashion & Lifestyle – is one of the
strongest developing brand clothes corporations throughout The Indian subcontinent. Global
marketing involves models like Van Heusen, Allen Solly, Philip Britain and Louis Philippe.
Madura Fashion & Lifestyle has 1607 shops, covering 2.2 sq. ft. connected with retail store
room. It has 1,500 premium multi-brand shops along with 320+ departmental shops
worldwide. The company outsources engineering, textiles and apparel.
Telecom services
Main article: Idea Cellular
Aditya Birla Group is the majority shareholder of Idea Cellular. Idea Cellular was started as a
joint venture with the AT&T and the Tata Group. After an IPO on the Indian stock markets,
Idea Cellular now accounts for a third of the group's market capitalisation. The company is
headquartered in Mumbai. On 31 August 2018 Idea Cellular completed its merger with
Vodafone India and thereby became largest telecom company in terms of subscribers and
revenue, surpassing Airtel.
Financial services

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Aditya Birla Capital (ABC) is the umbrella brand for all the financial services business of
The Aditya Birla Group. ABFSG ranks among the top 5 fund managers in India (including
LIC) with an AUM of US$23 billion.Having a strong presence across the life insurance, asset
management, lending (excluding Housing), housing finance, equity & commodity broking,
wealth management and distribution, online money management portal—Aditya Birla Money
My Universe, general insurance advisory and private equity and health insurance businesses.
In FY 2013–14, ABFSG reported consolidated revenue from these businesses at just
under ₹70 billion (US$970 million) and profits of about ₹7.5 billion (US$100 million). The
financial services arm of the group is currently headed by Ajay Srinivasan
A US $44.3 billion corporation, the Aditya Birla Group is in the League of Fortune 500.
Anchored by an extraordinary force of over 120,000 employees belonging to 42 nationalities,
the Group is built on a strong foundation of social value creation. With over seven decades of
responsible business practices, our businesses have grown into global powerhouses in a wide
range of sectors – metals, textiles, carbon black, telecom and cement. Today, over 50% of
Group revenues flow from overseas operations that span 35 countries in North and South
America, Africa and Asia. Great businesses are never built on the quick sands of
opportunism. I reiterate that, if living by our values means, perhaps growing at a pace slower
than we would otherwise have liked, so be it. For us, leadership lies at the heart of knowing
what we stand for.

Mr. Kumar Mangalam Birla

Chairman, Aditya Birla Group

Beyond business

The Aditya Birla Group transcends conventional barriers of business because we care deeply
about the community and we believe it is our duty to facilitate inclusive growth. Our work in

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the community focuses on health-care, education, the girl child, sustainable livelihood,
women empowerment projects, infrastructure and espousing social reform. It include
To actively contribute to the social and economic development of the communities in which
we operate. In doing so, build a better, sustainable way of life for the weaker sections of
society and raise the country's human development index.
Mrs. Rajashree Birla, ChairpersonAditya Birla Centre for Community Initiatives and
Rural Development.
Heritage

The Group's roots can be traced back over 150 years to the 19th century. The flagship
company Grasim, established in post-independence India in 1947, was one of the first Indian
businesses to set up international operations.
Mr. AdityaVikram Birla

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global
business empire at the age of 24. He was the first to put Indian business on the world map, as
far back as 1969, long before globalisation became a buzzword in India.

In the then vibrant and free market South East Asian countries, he ventured to set up world-
class production bases. He had foreseen the winds of change and staked the future of his
business on a competitive, free market driven economic order. He put Indian business on the
global stage, 22 years before economic liberalisation was formally introduced by the former
Prime Minister, Mr. NarasimhaRao, and the former Union Finance Minister, Dr. Manmohan
Singh. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the
Philippines and Egypt. Interestingly, for Mr. Aditya Birla, globalisation meant more than just
geographic reach. He believed that a business could be global even while being based in
India. Therefore, back in his home-territory, he drove single-mindedly to put together the
building blocks to make our Indian business a global force. Under his stewardship, his
companies rose to be the world's largest producer of viscose staple fibre, the largest refiner of
palm oil, the third-largest producer of insulators and the sixth-largest producer of carbon
black. In India, they attained the status of the largest single producer of viscose filament yarn,
apart from being a producer of cement, grey cement, and rayon grade pulp. The Group is also
the largest producer of aluminium in the private sector, the lowest first-cost producers in the

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world and the only producer of linen in the textile industry in India. At the time of his
untimely demise in 1995, the Group's revenues had crossed Rs.8,000 crore globally, with
assets of over Rs.9,000 crore, comprising 55 benchmark quality plants, an employee strength
of 75,000 and a shareholder community of 600,000. Most importantly, his companies earned
the respect and admiration of the people, as one of India's finest business houses, and the first
India-based international Group. Through this outstanding record of enterprise, he helped
create enormous wealth for the nation, and respect for Indian entrepreneurship in South East
Asia. In his time, his success was unmatched by any other industrialist in India. That India
attains respectable rank among the developed nations was a dream he forever cherished. He
was proud of India and took equal pride in being an Indian.

Our Corporate Logo

Share
A brand new journey: a new mark for new milestones
A major step that our iconic Group has taken under the stewardship of our Chairman, Mr.
Kumar Mangalam Birla, is to introduce a brand new avatar of our Aditya Birla logo. To set
the context, it is worthwhile to bring you excerpts from our Chairman's address to all of us –
120,000 colleagues globally, given that the new mark is reflective of his vision, first and
foremost, and from there it plays down the organisation.

Our new mark for new milestones

Our new mark for new milestones – It's all about us, our glorious past, our unmatchable
legacy, our ongoing success and our exciting journey into the future. Our Aditya Birla logo in
its brand new avatar that crystallizes our fascinating story of change and transformation. We

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have changed, and how. What we were two decades ago when we launched our first Aditya
Birla logo and what we are today, is phenomenal. These 20 years have seen us evolve
andscale new heights. It has been truly a transformative journey.e In essence, we are a much
more dynamic, vibrant, youthful Group across five continents. In keeping with this change, I
felt the need to refresh our earlier logo. Contemporising it made sense. It has served its time
and helped build our Group identity and lent heft to our Group's business identity.
Our new corporate mark is a fine blend of continuity and change. So it admirably captures
our legacy and moves on with modernity. Our energy derives from the sun, termed Aditya in
our mythology, and so closely linked with the name of our legendary leader and my father,
AdityaVikram Birla. His persona evoked all that is positive in business and in life"

Mr. Kumar Mangalam Birla, Chairman

The name Aditya Birla exemplifies integrity, quality, performance, perfection and above all
character. Our logo is the symbolic reflection of these traits. It is the cornerstone of our
Corporate Identity. It helps us leverage the unique Aditya Birla brand and endows us with a
distinctive visual image. On the imagery and the nuances of the new mark: The bright
colourful sun at the base forms its solid foundation in a bolder and more forceful global
version. The crisscrossing sunbeams connote the vibrant internal and external movement of
energy. Like a prism, it refracts the multi-dimensional facets of our Group. A deep sense of
simplicity, solidity, permanence.Vim and vigour. Hope. Our timeless values.Our boundless
optimism. And all these culminate in the dramatic ascension of our Group, rising in
perpetuity, reaching higher peaks. To sum up, our new mark embeds a sense of pride, unity
and belonging in all of us. In our Chairman's words again: "I look upon it as our best calling
card as we move onto a brave new horizon, big on growth, based on strong fundamentals, and
as One ABG family".

OVERALL WELLBEING

 Vitamin H is an informative portal which offers all health and wellness related
information with a range of possible solutions for employees and their family
members

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 Life Unlimited our Employee Assistance Program (EAP), provides free and
confidential counseling support to address and resolve issues that are important to
employees and their families
 Annual Health Check-Up is offered to employees at all business locations, providing
them with a detailed health report and a doctor consultation. This program is also
extended to family members at a discounted rate

QUALITY OF LIFE

 Add More To Life (AMTL) is a Quality of Life initiative in townships through which
we create an urban and modern life experience for employees and families at our
manufacturing locations

 Infrastructural Support at Units & Offices includes hospitals, gymnasiums and yoga
classes thereby promoting a healthy life
 Telemedicine Facilities in our remote locations provide the best of healthcare at the
doorstep at a minimal cost
 Maternity Support Program is a combination of various benefits that will support a
woman employee during her maternity phase as well as when she comes back to work

 The AWOO Scholarship Program: A World of Opportunity Foundation is a

registered charitable trust. It is committed to providing timely educational
scholarships to deserving and capable youths. It aims to provide scholarships to needy
and deserving students for undergraduate and postgraduate professional courses, with
the aim of increasing their employment opportunities. These scholarships can also be
extended to children of our workmen and supervisors
 Policies encouraging Work Life Balance

- Flexible work arrangement is offered to employees

- Compulsory Annual Leave encourages employees to take a break by allowing for
only 50% of the annual privilege leave entitlement to be carried forward

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  Pratibha Scholarships is a Group-wide employee scholarship program offered to
children pursuing higher education. This is provided to those pursuing both
undergraduate and postgraduate programs across the world

 Near Relations Policy enables and encourages our existing employees to refer their
competent and professionally qualified relatives (including spouses and children)
thereby extending our World of Opportunities to their families

Company Perspectives

Our Vision: To be a premium global conglomerate with a clear focus on each business.

Our Mission: To deliver superior value to our customers, shareholders, employees and society
at large.

Our Values: Integrity; Commitment; Passion; Seamlessness; Speed.

History of Aditya Birla Group

Aditya Birla Group is one of India's largest conglomerates and also claims to be the most
international of the country's major corporations. The company acts as a holding company for
more than 72 manufacturing and services subsidiaries throughout India, and in Thailand,
Indonesia, the Philippines, Malaysia, Australia, China, Egypt, and Canada. Aditya Birla's
major subsidiaries include Grasim, the world's leading producer of viscose staple fiber, and a
manufacturer of rayon grade pulp, cement, sponge iron, textiles, and chemicals; Hindalco, a
leading producer of aluminum and copper; UltraTech Cement, which produces portland
cement and related products; Aditya Birla Nuvo, which manufactures clothing, textiles, and
carbon black and is India's second largest producer of viscose filament yarn; Indo Gulf,
a fertilizerproducer; Birla NGK Insulators (a joint venture with NGK of Japan), which is the
world's leading producer of insulators; and Idea Cellular Ltd., a mobile service provider
jointly owned with fellow Indian conglomerate Tata Industries. The company also produces
software and provides IT services, and operates a number of financial productssubsidiaries.
The company's Birla Sun Life InsuranceCo. is the second largest private sector insurance
company in India, and its Birla Sun Life Asset Management Co. is the country's fourth largest
assets manager. In other areas, the company claims to be the world's eighth largest producer
of cement and the world's fourth largest producer of carbon black. These operations combine

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to generate revenues of nearly $7.6 billion per year. The company is led by Kumar Mangalam
Birla, son of Aditya Birla.

Indian Financial Dynasty in the 19th Century

The Aditya Birla Group was founded in the 1960s by Aditya Birla, who started building his
business empire at the age of 24. By then, however, the Birla family had been one of India's
most prominent industrial and financial families for nearly a century. The origins of the Birla
family fortunes lay in the second half of the 19th century, when in 1870 Seth ShivNarayan
Birla launched a cotton- and jute-trading business in the town of Pilani, in Rajasthan, India.
Despite the British occupation, and the attempt to establish monopolies by the British trading
companies, Birla succeeded in building the family's first fortune.

The next phase of the family's success came at the beginning of the 20th century, when Birla's
grandson Ghanshyamdas took over as head of the family fortune. The younger Birla led the
family into the industrial sector, setting up a jute mill in 1919. The Birla family also became
important supporters of the independence movement led by Mahatma Ghandi.
Ghanshyamdas Birla not only provided the financial backing for Ghandi, he also participated
in the talks with the British that ultimately led to the country's independence. The company's
wealth, and its intimate connection with the new Indian government, enabled it to emerge as
one of a small number of Indian families that dominated India's quasi-socialist economy
through the end of the century.

With independence, Birla began developing his industrial empire in earnest. The family
quickly branched out into a number of sectors. Just days after the country's declaration of
independence, for example, Birla founded Grasim Industrial Ltd., opening a small weaving
plant in Gwalior. By 1950, Grasim had begun importing the recently developed rayon fiber,
and it began producing rayon-based fabrics. In 1954, Grasim launched its own rayon
production, opening a factory in Nagda. By the mid-1960s, Grasim also had launched
production of the rayon pulp itself.

The family's interest in textiles and rayon in particular led it to acquire another branch, Indian
Rayon Corporation, in 1966. That company had been founded just a decade earlier, and in
1963 had expanded with the construction of its own viscose filament yarn factory in Veraval.
As part of the Birla family holdings, Indian Rayon, which later evolved into the Birla group's
largest subconglomerate, Aditya Birla Nuvo, developed diversified operations, including the

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production of garments, textiles, carbon black, and insulators. The company also entered
cement production, launching its own factory in 1985.

In the meantime, Birla's industrial interests had led it into a new area, the production of
metals, and specifically aluminum. The family established a new company, Hindalco, in 1958
and began construction of their first smelter. That complex, in Renukoot, launched production
in 1962. By 1967, the company had set up its own power plant, in Renusagar, described by
the company as "a significant strategic move." The company later branched out into copper
production as well.

The development of the family's business interests had been turned over to Ghanshyamdas
Birla's sons, K. K. Birla, C. K. Birla, and B. K.Birla. While B. K. Birla took over the family's
raw materials and related industrial operations, his brothers took charge of other Birla family
holdings, including Hindustan Motors, part of India's big three automakers, and
the Hindustan Times,one of the country's major newspapers.

International Pioneer: 1970-80

In the mid-1960s, AdityaVikramBirlajoined his father, B. K. Birla, in that branch of the

family business, which by then consisted of Grasim, Hindalco, and Indian Rayon. By the end
of the decade, Aditya Birla, then 24 years old, was placed in charge of these companies,
which formed the basis of the Aditya Birla Group.

The younger Birla soon proved himself a visionary, leading the company's development from
an India-focused industrial group to India's first and largest internationally operating
conglomerate. The company enjoyed the advantages of India's "License Raj," a license-
permit-quota system devised by the country's first prime minister, Jawarharal Nehru, that
made it difficult for new domestic competitors to emerge. Although this system protected and
reinforced the Birla family's interests, it also subjected the Birla group to strict capital
controls. At the end of the 1960s, however, Aditya Birla recognized a means of skirting these
controls, through the development of foreign interests.

In 1969, Birla launched its first subsidiary, Indo Thai Synthetics, to produce and export
synthetic yarns in Thailand. Into the 1970s, the company continued to invest in Thailand,
launching two new subsidiaries in 1974. The first of these, Thai Rayon, launched production
of viscose rayon staple fiber, which it marketed on a global basis as Birla Cellulose. That
company quickly grew into a major exporter, while also supplying the Thai textile industry.

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The company set up in 1974 was Century Textiles Co., which operated a weaving and dyeing
plant, producing Centex-branded fabrics, including polyester, rayon, linen, and later lycraand
others. By the end of the 1970s, the company's Thai holdings included Thai Carbon Black
(TCB), founded in 1978. Carbon black, also known as soot and lampblack, was used as a
black pigmentfor inks, food colorings, and especially for the production of rubber tires. TCB
grew strongly, building the world's largest carbon black facility on a single location, and
counting among its customers the global big three tire manufacturers. The company was
particularly successful in Japan, where it captured more than half of the total carbon black
market.

Birla's success in Thailand encouraged the group to extend its operations elsewhere in the
region. In 1975, the company launched a joint venture in the Philippines, to produce spun
yarn. The operation became the basis of the group's other Filipino holdings, grouped under
the Indo Phil name. Malaysia became the company's next foreign market, with the opening of
an edible oil production subsidiary in 1978. That business, Pan Century Edible Oils, became
the world's largest single-location palm oil refinery.

Steady Growth Through the End of the 20th Century

The Birla group's expansion continued through the 1980s. The company moved into
Indonesia in 1982, setting up PT Indo Bharat Rayon. In Thailand, in 1984, the company
expanded into the production of sodium phosphates for the detergents industry, establishing
Thai Polyphosphates and Chemicals. The company added yet another Thai unit in 1987,
deepening its interests in that country's textile sector with the founding of Thai Acrylic Fibre.
The company also expanded into the chemicals market in Thailand, founding a joint venture,
Thai Peroxide Co., with the United States' FMC Corporationin 1989.

In the meantime, Birla's Indian holdings continued to expand and diversify as well. Grasim,
for example, added cement production in 1985, launching the Vikram Cement plant at Jawad,
in Madhya Pradesh. By the beginning of the 1990s, that operation had tripled its production
capacity. Through the 1990s, Grasim added other diversified businesses, including merchant
exporter Birla International Marketing Corporation in 1992, and VikramIspat, a gas-based
sponge iron factory, in 1993. Grasim also expanded its cement holdings, opening two new
cement plants, Grasim Cement in Raipur and Aditya Cement in Shambhupura, in 1995. The

17
growth of Grasim's cement operations led Birla to transfer its other cement production
operations from Indian Rayon into Grasim.

This restructuring was launched under the leadership of Aditya Birla's son, Kumar Mangalam
Birla, who took over the company after his father's death in 1995. Until then, the Birla group
of companies had been described by Institutional Investor International Editionas a "murky
empire." The younger Birla, who had been educated at the London Business School, now
became determined to transform the company into a modern corporation. Birla now led a
restructuring of the company's holdings, grouping all of its businesses under the single
umbrella holding, Aditya Birla Group. Birla also continued to streamline operations,
regrouping various industrial operations into a more coherent structure.

Leading Diversified Conglomerate in the New Century

Aditya Birla nonetheless remained committed to its structure as a highly diversified

conglomerate. The company also took advantage of the liberalization of India's economy,
launched during the country's economic crisis in 1991, to enter a number of new areas. In
1988, for example, the company launched a petroleum refining joint venture with Petroleum
Corporation. The company then entered the telecommunications market, forming a joint
venture with AT&T of the United States, Birla AT&T, in 1995. That company merged with
Tata Communications in 2000, becoming one of the country's leading telecom groups.

Through Hindalco, the company launched fertilizer production, under subsidiary Indo Gulf in
the late 1980s; in 1998, Indo Gulf added the production of copper as well. In 2002, Hindalco
was restructured, with its fertilizer production spun off into a separate company, Indo Gulf
Fertilisers. Indo Gulf's copper business was placed directly under Hindalco. By then,
Hindalco had acquired major rival Indal, an aluminum producer founded near Kolkata in
1938. That acquisition was completed in 2000; two years later, Indal boosted its aluminum
foil production through the purchase of control of AnapurnaFoils. Indal was merged into
Hindalco in 2004.

Other new markets for Birla included software development and IT services, which were
regrouped into Birla Technologies Ltd. in 2001. The company entered the power generation
market through a joint venture with Powergen PLC. In 1999, Birla added financial services to
its range, forming a joint venture with Canada's Sun Life Assurance.

18
Into the mid-2000s, Birla also continued to expand its international network. The company
made its first entry into the North American market, acquiring the Atholville Pulp Mill in
New Brunswick, Canada. The purchase, completed in 1998, established Birla as the world-
leading producer of viscose staple fiber and also marked its first major foreign acquisition. In
2003, the company turned to Australia, buying up the Nifty Copper mines in Western
Australia. The purchase enabled Birla to develop into an integrated copper group, supplying
its factories in India with raw material. Later that year, the company bought up a second
Australia copper mine, at Mt. Gordon. In that year, as well, Birla extended its reach into the
mainland Chinese market, where it established a carbon black production unit, Liaoning Birla
Carbon. Back at home, the company launched a project to build a new aluminum production
complex in Orissa, beginning construction in 2005.

Birla's international expansion continued to drive the company's growth into the mid-2000s.
In 2005, for example, the company reached an agreement to acquire the St. Anne Nackawic
Pulp Mill in Canada. The company also sought out new markets; in March 2006, the
company announced its plans to build a $350 million viscose staple fiber plant in Laos.
Aditya Birla had grown into one of India's leading conglomerates, and a major player on the
world market.

Principal Subsidiaries

Aditya Birla Chemicals (Thailand) Ltd.; Aditya Birla Nuvo Ltd.; Alexandria Carbon Black
Company S.A.E. (Egypt); Alexandria Fiber Company S.A.E. (Egypt); AV Cell Inc. (Canada);
AV Nackawic Inc. (Canada); Birla Mineral Resources Pty. Ltd. (Australia); Birla Mt. Gordon
Pty. Ltd. (Australia); Century Textiles; Grasim Industries Limited; Hindalco Industries
Limited; Indo Gulf Fertilisers Limited; Indo Phil Textile Mills (Philippines); Indo Thai
Synthetics; Liaoning Birla Carbon Co. Ltd. (China); Pan Century Edible Oils (Malaysia); PSI
Data Systems Limited; PT Elegant Textile Industry (Indonesia); PT Indo Bharat Rayon
(Indonesia); PT Sunrise Bumi (Indonesia); Thai Acrylic Fibre; Thai Carbon Black; Thai
Peroxide; Thai Rayon; TransWorks Information Services Ltd.

Principal Competitors

RPG Enterprises; Tata Sons Ltd.; Murugappa Group; Jaypee Group; Amalgamations Ltd.;
Dabur India Ltd.; BalmerLawrie and Company Ltd.; Escorts Ltd.; HMT Ltd.; Greaves Cotton
Ltd.; Bombay Burmah Trading Corporation.
19
Chronology

 Key Dates
 1870Seth ShivNarayan Birla launches a cotton- and jute-trading business in the town
of Pilani, in Rajasthan, India.
 1919Grandson Ghanshyamdas Birla sets up a jute mill, establishing the family's
industrial holdings.
 1947The Birla family sets up the Grasim weaving plant, later adding production of
rayon.
 1958The company establishes Hindalco for production of aluminum.
 1966Indian Rayon Corporation is acquired.
 1969Under Aditya Birla, the company launches international expansion, founding
Indo Thai Synthetics in Thailand.
 1978Carbon black production is launched in Thailand.
 1988Indo Gulf is formed under Hindalco for the production of fertilizer.
 1995Aditya Birla dies and is succeeded by son Kumar Mangalam Birla, who later
leads a restructuring and streamlining of the group; a joint venture, Birla AT&T, is
formed.
 1998Info Gulf begins copper production; Birla enters Canada with the purchase of
Atholville Pulp Mill in New Brunswick.
 1999Birla adds financial services through an insurance joint venture with Canada's
Sun Life.
 2000Birla AT&T merges with Tata Communications; Hindalco acquires Indal.
 2002Hindalco restructures and spins off Indo Gulf Fertilizers; Anapurna Foils is
acquired.
 2003Birla acquires Nifty Copper and Mt. Gordon Copper mines in Australia; the
company enters China with the creation of the carbon black joint venture, Liaoning
Birla.
 2004Indal merges into Hindalco.
 2005Construction of a new aluminum facility begins in Orissa, India; the St. Anne
Nackawic Pulp Mill in Canada is acquired.
 2006The company announces plans to build a new viscose staple fiber plant in Laos.

Additional Details

20
  Public Company
 Incorporated:1870
 Employees:72,000
 Sales:$7.59 billion (2005)
 Stock Exchanges:India
 Ticker Symbol:BIR
 NAIC:331491 Nonferrous Metal (Except Copper and Aluminum) Rolling, Drawing,
and Extruding; 551112 Offices of Other Holding Companies; 423990 Other
Miscellaneous Durable Goods Merchant Wholesalers; 331111 Iron and Steel Mills;
313210 Broadwoven Fabric Mills; 325120 Industrial Gas Manufacturing; 325131
Inorganic Dye and Pigment Manufacturing; 325221 Cellulosic Manmade Fiber
Manufacturing; 327124 Clay Refractory Manufacturing; 313210 Broadwoven Fabric
Mills; 322110 Pulp Mills; 322121 Paper (Except Newsprint) Mills; 325181 Alkalies
and Chlorine Manufacturing; 327310 Cement Manufacturing

Further Reference

 "AV Birla Group Charts 3-Pronged Growth Plan," India Business Insight,March 16,
2004.
 "Birla Makes Changes," Nonwovens Industry,November 2004, p. 20.
 "Birla Plans Expansion," Mining Journal,April 27, 2001, p. 315.
 "Birla Renames Thai Unit," Chemical Week,January 25, 2006, p. 14.
 Chandler, Clay, "Dealing with Dynasties," Fortune International,October 31, 2005, p.
56.
 Clarke, Jo, "India's Birla in Deal to Buy Second Australia Copper Mine for
$14.3M," American Metal Market,September 25, 2003, p. 4.
 "India: High Profile Family-Owned Businesses," International Market Insight
Reports,May 16, 2000.
 Lachner, David, "Birla Breaks Ranks," Institution Investor International
Edition,August 2000, p. 16.
 Viscusi, Gregory, "India (the World's Billionaires)," Forbes,July 20, 1992, p. 186.

21
 CHAPTER-III
REVIEW OF LITERETURE
22
General Industrial Relations scenario in BSP and Introduction about
different Trade Unions operating in BSP.
Aditya birla ltd has had a chequered history of peaceful and harmonious industrial
relations. There has been no loss of production on account of strikes or work stoppages for
last many years. The importance of discipline in maintaining the health and well – being of an
organization, cannot be over – emphasized. The optimum utilization of manpower is
absolutely central to the productivity and profitability of an organization.
The recognized union at Aditya birla ltd, i.e. INTUC – affiliated Steel Workers Union
(SWU) has always acted responsibly in the sense that it has not given strike calls. This union
has, in general believed in collaboration and dialogue, in stead of confrontation and agitation.
This has played a major role in ensuring a peaceful and harmonious Industrial Relations
climate at Aditya birla ltd. However, during last four – five years this union has been in
disarray, due to a long running intra-union rivalry resulting in formation of several fractions.
This has also resulted in several court cases which have been pending for last few years in
different courts, with no or little hope of an early situation.

23
 As a result, the ‘representative union’ has not been functioning for last few years,
leading to a vacuum in the union scenario. On 12 th January 2005 the Assistant Labour
Commissioner, Durg, was appointed by honorable Industrial Court, Raipur Court as
‘administrator’ of this union to manage day-to-day affairs of the same.

However, there are other fringe unions at BSP with their limited spheres of influence. Most of
these unions are leftist in terms of ideology. In order to make their presence felt at the local
level as well as to be in line with their national leadership, these unions have given strike
calls once annually during last several years.
However, these strike calls have elicited no or little response from the employees of
Aditya birla ltd, thereby, ensuring continued industrial peace and harmony.

Industrial Relations in BSP – Major milestones:

1. Consistent profit for last two decades.
2. No man-days lost on account of strike / work stoppage for last three decades.
3. Bagged CII-CG award for best IR Practices.
4. Bagged the first Confederation of Indian Industry (CII) – CG HR Excellence Award.
The concept of ‘Representative Union’ as per MP and CG Industrial Relations ACT and
applicable to Aditya birla ltd --

The Act extends to whole of MP and CG. The Act is applicable to Scheduled
Industries wherein the numbers of employees are more than 100. Iron and Steel Industry is a
scheduled industry.

The Act covers all –

1. Employer / HOD / Owner
2. Employee – doing skilled, unskilled, manual, supervisory, technical, or clerical work
for hire or reward, includes contract workers, dismissed, discharged, retrenched and
terminated employees.

Authorities under the Act –

1. Commissioner / Deputy Commissioner, Assistant Commissioner of Labour
2. Conciliator
3. Registrar / Assistant Registrar of Representative Trade Union
24
 4. Labour Officer / Deputy Labour Officer
5. Labour Court Presiding Officer, Industrial Court President / Member Board of
Arbitrators.
Recognition as Representative Union –
A “Representative Union” gets recognition under the following conditions:
1. Application to registrar.
2. If the application is not rejected during the last 12 months.
3. The union having highest membership.
4. If the application is in bonafide interest of employees.
5. Union did not instigate, aid, or assist, the continuation of illegal strike or stoppage
during the last 6 months.
6. Membership of the union must be open to all employees.
7. 25% of the employees are members (past 3 months).
8. Union must not sponsor / declare or support a strike without ballot and the support of
two-third members.
Cancellation of Recognition –
Recognition of “Representative Union” gets cancelled under the following conditions:
1. If recognition was by mistake or fraud or misrepresentation.
2. If the strength of union falls below the minimum (continuous 3 months).
3. If the membership is not open for all.
4. If the union is not conducting in the bonafide interest of employees.
5. If the union is not functioning as per its constitution.
6. If the union has instigated, aided, or assisted illegal strike or stoppage of work.
7. If the union has sponsored illegal strike.
8. In case of cancellation appeal may be made to Industrial Court within 30 days.
9. In case of recognition of another union.
10. Legal practioner not allowed.
11. Employee to appear through union only (representative or other).

Industrial Matter-
Industrial matter consists of all the matters related to:
1. Employment
2. Terms and conditions of employment
3. Work and hours of work
25
 4. Wages
5. Privileges
6. Rights or duties
Industrial Dispute-

Dispute or difference connected with industrial matters between –

Employer and employees
Employer and employer
Employees and employees

Settlement Mechanism –
Industrial dispute can be solved through following mechanism:
1. Joint consultation
2. Conciliation
3. Settlement and report to registrar / chief conciliator
4. (FOC) failure of conciliation report to chief conciliator
5. Chief conciliator to forward report to the government
6. Arbitration – (by written agreement) submission to Labour court, Industrial Court,
Board or Person, or Arbitrator.
7. Reference of dispute by government

INDUSTRIAL RELATIONS CONTROL AND MONITORING:

It includes the following functions:

1. Regular monitoring of the prevailing IR scenario inside the plant area and the

township in general. This includes the area ranging from ALC Durg office to

Khursipara area and includes various Union Offices at different locations.

2. Dealing with various IR problems like strikes, dharnas, demonstrations, lock outs etc.

3. Dealing with fatal works as well as road accidents and taking care of related activities

like postmortem, assisting in arranging decent cremation etc.

26
 4. Dealing with other accidents and taking care of related activities like follow-up with

sector-9 hospital & other concerned depts.

5. Maintaining regular liaison with district admn. , police and factory inspectorate.

6. Maintaining of Industrial Relations Control Room and performing regular activities

like providing telephonic clearance to Plant Vehicle Pool for release of truck for

funeral of deceased employees or dependents.

7. Keeping a regular vigil on the activities of various Trade Unions.

8. Maintaining event register and preparing quarterly compilation of IR activities.

9. Maintaining funeral Imprest and related records, i.e. related to the funeral expenses

provided by Aditya birla ltd to its employees.

10. Maintaining newspaper clipping register.

11. Manning every spot during VIP visits and giving regular feed back.

12. Dealing with various issues related to Contract Labour such as work stoppage at

different sites, periodic agitations.

The Industrial Relations Department is entrusted with looking after the welfare of SCs
/ STs / OBCs employees of the plant and proper implementation of Presidential Directives
with respect to reservation policy for SCs / STs / OBCs. In this connection the Industrial
Relations Department performs the following tasks:

I. Ensuring that in departmental promotions within the plant, the posts reserved for
SCs / STs, i.e. 15% and 7.5%respectively, are utilized by employees of these categories only.
For this purpose, a system has been put in place, wherein the promotion orders for
employees are released only after the Departmental Promotion Committee (DPC), statements
are signed by the representative of “Liaison Officer” for SCs / STs in Aditya birla ltd, i.e.
DGM (Personnel-IR).
These statements are signed and cleared; only after it is checked that due
representation has been given to the eligible SC/ ST employees in promotion in accordance
with the prescribed quantum of reservation for them.

27
 II. For those reserved posts, for which no eligible SC / ST
employee is available in the feeder cadre and at the same time
these posts are compulsorily required to be filled owing to operational requirements; there is
a statutory provision in place, that these posts can be “de-reserved” by the Competent
Authority for that particular DPC (June / Dec), and filled up by general candidates.
The Industrial Relations Department acts as the Liaison Agency to facilitate the above
process. For these, the “de-reservation” proposals are sent by the ‘personnel executives’ of
the concerned departments to Industrial Relations Department by mid – June or
mid – Dec., whatever the case may be.
The proposals are compiled and scrutinized at the SC/ ST Liaison Cell of Industrial
Relations Department. Then, a comprehensive “de-reservation” proposal for the entire plant
is prepared and put up to MD for approval. Copies of the approved proposal are then sent to
the concerned ‘personnel executives’ to facilitate the issue of promotion orders of general
candidates against the de-reserved posts.

III. The in-charge Industrial Relations also acts as the Liaison Officer for OBCs. His
task is to ensure the implementation of reservation policy for OBCs in direct recruitment, as
per the quantum of reservation prescribed for C.G state for state level recruitment.

IV. Quarterly meetings are held at the level of Liaison Officer for SCs / STs, i.e.
DGM (Personnel - IR) with the office bearers of the sole recognized association of SC / ST
employees of BSP, i.e. “BSP SC / ST Employees Association”. This forum is used for
addressing the genuine problems / grievances of the SC / ST employees and solves them to
the extent possible.

28
 Data Analysis
and Interpretation

29
1Part 1 (Current IR scenario)

1. Are you aware that there is a concept of “Single Representative Union” under MP &
CG IR Act?

30
 As we can see from the pie-chart that 78% of the employees are aware of the concept
of “Single Representative Union” under the MP & CG IR Act where as 22% of the
employees don’t know about this concept.

2. Are you aware that there are 15 registered trade unions operating at BSP (Plant
location)?

31
 Only 53% of the employees know about the 15 registered Trade unions operating at
BSP (Plant location) whereas 47%, which is a relatively large number, are not aware
of this situation. This reemphasizes the point that the concept of “Single
Representative Union” has been central to the IR scenario at BSP for decades, and
therefore the awareness about other unions is quiet low. It also proves that these
unions at best have been just fringe unions which have been able to do little to catch
the imagination of the employees. They also have highly limited spheres or pockets of
influence.

3. Industrial Disputes Act, 1947 is being implemented at BSP (Plant location) in place of
MP & CG IR Act?

32
 As per the above figure, 67% of the employees know that ID Act is being
implemented at BSP in place of MP & CG IR Act which is a good number to start off
with but still 33% employees are not aware of the implementation of this Act.

4. Are you aware that Steel Workers Union (affiliated to INTUC) has for long been the
single Representative Union at BSP (Plant location) as per MP & CG IR Act?

Almost 91% of the employees are aware that Steel Workers Union has for long been
the Single Representative Union at BSP (Plant location) as per MP & CG IR Act
which is an appreciable figure whereas still there are only 9% of them who are not
aware of this. This reemphasizes the credibility as well as clout of this union for such
a long time.

5. Are you aware that the captive mines of BSP are already under the ambit (scope) of
Industrial Disputes Act?

33
 Only 59% of the employees know that the captive mines of BSP are under the scope
of ID Act but 41% are still not aware. Perhaps the distance of the mines from the plant
location as well as the lack of regular interaction between the employees of plant and
mines respectively is responsible for this lack of information.

6. Does the absence of a strong trade union affect your working?

According to the figure, 76% of the employees say that their work is affected by the
absence of a strong trade union, but 24% of them feel that the absence of a strong
trade union does not affect their work. This again underlines the importance that the
employees in general have attached to the Steel Workers Union traditionally.

7. The IR scenario at BSP is harmonious and peaceful.

34
 As per the graph 67% of the employees agree and 10% strongly agree that the IR
scenario is peaceful whereas 20% of them disagree and 3% strongly disagree on the
same point. This is an important finding in view of the fact discussed above that the
Single Representative Union has stopped functioning for last many years.

8. The absence of a Strong Representative Trade Union is affecting the genuine interests
of employees.

According to the above figure, 67% and 16% of the employees agreed and strongly
agreed resp. to the statement that the absence of a Strong trade union is affecting the
genuine interests of employees where as 9% and 8% of the employees disagreed and
strongly disagreed to this statement.

This indicates that most of the employees are affected by the absence of a strong trade
union but still around 17% of employees are not affected. So management should take
care of this.

35
 This is an interesting finding because on one hand the IR scenario in general is found
to be harmonious by the respondents, whereas on the other the absence of a strong
representative union is felt.

9. In the changed industrial scenario in the country, trade unions are increasingly
becoming irrelevant.

As per the above figure, 58% and 5% of the employees agreed and strongly agreed
resp. that trade unions are becoming irrelevant in today’s changing industrial scenario
whereas 28% and 9% disagreed and strongly disagreed resp. to this.
This shows that still there are almost 37% of the employees who think that trade
unions are relevant even in today’s changing industrial scenario which is relatively a
big number.
This is also an interesting finding similar to 8 above.

10. The BSP management accedes (agrees) to the genuine demands of employees even
without any role performed by the trade unions.

36
 As per the above figure, 53% and 6% of the employees agreed and strongly agreed
resp. that BSP management accedes to the genuine demands of the employees even
without any role performed by the trade union, whereas 23% and 18% disagreed and
strongly disagreed resp. to the same statement.
This underlines the credibility of the management in caring for the employees, despite
the employees’ traditional belief in the strength of the representative union to get their
genuine demands fulfilled.

11. The work culture at BSP is based on discipline and self-motivation.

According to the above figure, 71% and 21% of the employees agreed and strongly
agreed resp. to the statement that work culture at BSP is based on discipline and self
motivation, whereas only 3% and 5% disagreed and strongly disagreed to it.
This shows that BSP management is doing a good job in providing the best possible
work culture to its employees because 92% of the employees agree that the work
culture here is based on discipline.

37
12. The suggestion scheme and quality circle scheme facilitates as well as rewards
creativity and innovation amongst employees.

According to the above figure 94% of the employees agree to the statement that The
suggestion scheme and quality circle scheme facilitates as well as rewards creativity
and innovation amongst employees whereas only 6% of them disagree to this.
This result shows that BSP management is doing really well in promoting creativity
and innovation amongst employees.

13. BSP management is prompt and generous in recognizing and rewarding good
performance.

38
 As per this figure 71% and 13% of the employees agreed and strongly agreed resp. to
the statement that BSP management is prompt and generous in recognizing and
rewarding good performance whereas 10% and 6% of the employees disagreed and
strongly disagreed to the same statement.
This gives the picture that BSP management is working well towards enhancing the
morale of the employees and has been successful in its attempt to make employees
feel that they are doing a good job.

14. The working condition in BSP is good and conducive for better performance.

As per the figure, 66% and 19% of the employees agreed and strongly agreed resp. to the
statement that the working condition in BSP is good and conducive for better
performance where as 13% and 2% of the employees disagreed and strongly disagreed to
this statement.

39
 This result shows that majority of the employees are happy with their working conditions
whereas still there are 15% of the employees who are not satisfied with their working
conditions.

15. The employee morale at BSP is quiet high.

As per the figure 68% and 23% of the employees agreed and strongly agreed resp. to the
statement that the employee morale at BSP is quiet high but 3% and 6% of the employees
disagreed and strongly disagreed to this statement.
This is a very positive indicator for the management, as 91% of the employees say that the
employee morale is quiet high.

40
Part 2 (Working of IR)

16. Are you aware that there is a truck provided by BSP free of cost to facilitate a
cremation in case of death of an employee or his/her dependent?

According to the above figure 100% of the employees are aware that a truck is
provided by BSP free of cost to facilitate a cremation in case of death of an employee
or his/her dependent.
This is a very high level of awareness amongst the employees and management
should be relieved that this initiative is well appreciated by the employees.

41
 17. Are you aware that an amount of 5000 is paid by BSP through IR section as
funeral expenses in case of death of an employee?

As per the figure 96% of the employees are aware that an amount of 5000 is paid by BSP
through IR section as funeral expenses in case of death of an employee. This also shows a
high level of awareness amongst the employees related to this issue.

18. Are you aware that the helpline counter at Main Hospital Sector- 9 is run by IR
section?

42
As per the figure 79% of the employees are aware that the helpline counter at Main Hospital
Sector- 9 is run by IR section whereas 21% of them are still unaware about this.
This shows that there is less awareness about this facility provided by IR than the other
facilities provided. It may be possible that the employees, who have not availed of medical
services of late or might not have faced any problem wherein the helpline staff could have
helped them, are the ones who are not aware of this.

19. Are you aware of the existence of a separate liaison cell for SC/ST within IR section?

As per the figure 78% of the employees are aware of the existence of a separate liaison
cell for SC/ST within IR section whereas 22% are not aware about this.
This is a substantial number because of the fact that the majority of the employees belong
to the general category and they don’t need to avail the services provided by this cell.

20. Are you aware that the various scholarship schemes for wards of BSP employees are
now being run by education department instead of IR section?

43
 As per the figure, 89% of the employees are aware that the various scholarship
schemes for wards of BSP employees are now being run by education department
instead of IR section, whereas 11% of them are still not aware. In general the
awareness level is sufficiently high.

21. The IR section responds quickly and efficiently to situations like work accidents and
employee unrest.

As per the above figure, 68% and 15% of the employees agreed and strongly agreed resp. that
the IR section responds quickly and efficiently to situations like work accidents and employee
unrest whereas 13% and 4% disagreed and strongly disagreed to this statement.
This result shows that the IR section is working efficiently in case of work accidents because
85% of the employees agree and are satisfied with the working of the IR dept.

44
 22. The IR section acts as an effective communication channel between management and
employees in general.

As per the above figure 65% and 10% of the employees agreed and strongly agreed to the
statement that the IR section acts as an effective communication channel between
management and employees in general, whereas 16% and 9% of the employees disagreed and
strongly disagreed to the statement.
This shows that three quarters of the employees are appreciating the efforts of IR in acting as
an effective communication channel between management and employees which is a very
good number.

23. The IR section has to perform various difficult and unpleasant jobs.

45
 As per the above figure 66% and 13% of the employees agreed and strongly agreed to
the statement that IR section has to perform various difficult and unpleasant jobs
whereas 16% and 5% of the employees resp. disagreed and strongly disagreed to the
statement.
Almost 79% of the employees agree that IR has to perform various difficult jobs
which means that the employees are also aware of the situation and condition in
which IR dept. has to work.

24. The IR section plays the role of facilitating negotiation between management and
employees in the exigency (urgent need) of employee unrest quiet effectively.

As per the above figure, we can see that 63% and 13% of the employees agreed and strongly
agreed to the statement that the IR section plays the role of facilitating negotiation between
management and employees in the exigency (urgent need) of employee unrest quiet
effectively whereas 20% and 4% of the employees disagreed and strongly disagreed to the
statement resp.

46
This shows that 76% of the employees are satisfied by the role played by IR for negotiations
in case of any exigency which is a very substantial number.

25. a) Do you have any suggestions for improving the working of IR?

b) If yes, what are your suggestions?

1. Personnel from IR section should visit shopfloors more frequently and they should
directly interact with the people.
2. Workshops should be conducted more frequently to increase the awareness about the
working of the IR department.
3. At the grass root level awareness is not there about IR.
4. IR should not act as Middleman.
5. IR should not act as a part of management but as a representative in neutral to both
management and employees keeping in sight the interests of both. In recent past it has
secured the interest of management only.

47
FINDINGS

1. The current IR scenario at Aditya birla ltd is peaceful and harmonious.

2. More than 66% of the employees are aware that Industrial Disputes Act is being
implemented at BSP in place of MP & CG IR Act.

3. Although there are 15 Registered Trade Unions operating at BSP (Plant Location) ,
almost half of the employees are unaware of it.

4. Concept of “Single Representative Union” has been central to the IR scenario at BSP
for decades, and therefore the awareness about other unions is quiet low.

48
5. The employees in general have attached to the Steel Workers Union traditionally.

6. The IR scenario in general is found to be harmonious by the respondents, whereas the

absence of a strong representative union is also felt at the same time.

7. Management has in general proved to be capable of fulfiling the genuine demands of

the employees.

8. Work culture is based on discipline.

9. BSP management is doing well in promoting creativity and innovation amongst

employeesby implementing various schemes.

10. Working conditions at BSP are conducive and employees are happy with it.

11. Employee morale is quiet hig in the employees.

12. Almost 75% of the employees are appreciating the efforts of IR in acting as an
effective communication channel between management and employees.

13. Majority of the employees are satisfied by the role played by IR for negotiations in
case of any exigency.

49
RECOMMENDATIONS

1. As per the majority of the respondents, the absence of a strong trade union is affecting
the working of the employees. Therefore the management should communicate with the
employees more to understand what exactly is their problem and how do they suggest
to solve it and may consider it favourbly.

2. Awareness about the working of the IR department should be conveyed to the

employees so that they are able to be more benefitted from its services, by organizing
workshops or putting relevant and updated information on BSP’s Intranet.

CONCLUSION

50
This project helped me in getting an insight into the iron and steel industry and working of a
unit (BSP) of SAIL. The anlysis of current Industrial Relations scenario at BSP helped me in
gaining real world knowledge and how does it work.
Currently there are 15 registered Trade Unions operating at BSP, but there is no Strong trade
union worth its name. Also the rivalry among the trade unions is not proving to be beneficial
because in any case the interests of the employees are at stake. On one hand employees say
that they want a union to fulfil their genuine demands and on the other hand there are already
15 registered unions, out of which the Steel Workers Union has for long been the Single
Representative Union, now embroiled in its internal disputes and connected court cases.

Although the IR department is doing great but certainly it cannot be a substitute for a strong
trade union and therefore need is felt for a Strong Trade Union by many employees because
according to the survey carried out, the respondents feel that their genuine interests are not
taken care of. Inspite of all this the IR scenario at BSP is reasonably harmonious and peaceful
which is credited to the management. The proactive measures taken by management have
proved to be a great support.

However, the present IR scenario at Aditya birla ltd is set to undergo many changes in near
future because the central government has issued a notification that henceforth the
“Appropriate Government” for Aditya birla ltd shall be the central government as SAIL of
which BSP is a unit, is a central government undertaking. The foremost implication of this
developement is that henceforth Aditya birla ltd shall be governed under Industrial Disputes
Act,1947(ID Act), instead of the existing MP & CG IR Act,1960. In turn the concept of
“Single Representative Union” shall be replaced by multiplicity of trade unions. This will
facilitate the formation of new unions ( this trend has already begun) and shall increase inter-
union rivalry. This development is not likely to be good for the IR scenario in general and
employees in particular. But, the process of implementation of ID Act 1947 is very slow due
to central government’s own compulsions such as shortage of personnel/staff, lack of
infrastructure. The BSP management can afford to breathe easily atleast till the time the
above issues are setteled.
LEARNING OUTCOME

51
 1. Working of a large organisation like BSP which is a unit of SAIL (Steel Authority of

India Limited).
2. Operation of various departments (both Works and Non-Works).
3. How does actually the concepts of HR apply in real sense in such a large organization

whose manpower is approximately 31,000 (As on 1st June 2011) .

4. Day-to-day working of IR department in a large organization
5. Measures taken to maintain good relations with employees
6. How does the nature of this relationship impact the employees
7. Relevance of Trade Unions in the current industrial scenario
8. Better understanding of IR in terms of what are the tasks to be done by the IR

department and how should the situations be tackled.

References

1. Comapny website

2. C.S.V. Ratnam, Industrial Relations, Oxford University Press, N. Delhi, 2006

3. Company Journals

4. Reports on Documentation of Major IR activites

5. Internet

a. http://www.sail.co.in/
b. http://www.sail.co.in/pnu.php?tag=bhilai

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c. http://pblabour.gov.in/pdf/acts_rules/inustrial_disputes_act_1947.pdf
d. www.cci.in/pdf/surveys_reports/iron-steel.pdf
e. http://www.steelworld.com/newsletter/may11/ws0511.pdf
f. http://www.steelads.com/info/largeststeel/TOP30-Worlds-Largest-Steel-
Companies.html

Annexures
53
Questionnaire
Dear Sir/Madam,
I am conducting a survey on “Industrial Relations scenario at BSP and working of the IR
department” to be submitted towards the partial fulfillment of MBA Degree. Kindly extend
your help. The information you give will be kept confidential and will be used only for study
purpose.
Thanking You
Sonal Piparsania
Alliance University,
School of Business, Bangalore
MBA (HR)

Name (optional): ____________________________________________

Department: ________________________________________
Designation: ________________________________________
Year of Joining: ________________

Part 1
1. Are you aware that there is a concept of “Single Representative Union” under MP &
CG IR Act?

Yes No
2. Are you aware that there are 15 registered trade unions operating at BSP (Plant
location)?

54
 Yes No
3. Are you aware that Industrial Disputes Act, 1947 is being implemented at BSP (Plant
location) in place of MP & CG IR Act?

Yes No

4. Are you aware that Steel Workers Union (affiliated to INTUC) has for long been the
single Representative Union at BSP (Plant location) as per MP & CG IR Act?

Yes No

5. Are you aware that the captive mines of BSP are already under the ambit(scope) of
Industrial Disputes Act?

Yes No
6. Does the absence of a strong trade union affect your working?
Yes No

7. The IR scenario at BSP is harmonious and peaceful.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

8. The absence of a Strong Representative Trade Union is affecting the genuine interests
of employees.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

9. In the changed industrial scenario in the country, trade unions are increasingly
becoming irrelevant.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

10. The BSP management accedes (agrees) to the genuine demands of employees even
without any role performed by the trade unions.

o Strongly Disagree
o Disagree
o Agree

55
 o Strongly Agree

11. The work culture at BSP is based on discipline and self-motivation.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

12. The suggestion scheme and quality circle scheme facilitates as well as rewards
creativity and innovation amongst employees.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

13. BSP management is prompt and generous in recognizing and rewarding good
performance.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

14. The working condition in BSP is good and conducive for better performance.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

15. The employee morale at BSP is quiet high.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

Part 2
16. Are you aware that there is a truck provided by BSP free of cost to facilitate a
cremation in case of death of an employee or his/her dependent?

Yes No

56
17. Are you aware that an amount of 5000 is paid by BSP through IR section as
funeral expenses in case of death of an employee?

Yes No

18. Are you aware that the helpline counter at Main Hospital Sector- 9 is run by IR
section?

Yes No
19. Are you aware of the existence of a separate liaison cell for SC/ST within IR section?

Yes No

20. Are you aware that the various scholarship schemes for awards of BSP employees are
now being run by education department instead of IR section?

Yes No

21. The IR section responds quickly and efficiently to situations like work accidents and
employee unrest.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

22. The IR section acts as an effective communication channel between management and
employees in general.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

23. The IR section has to perform various difficult and unpleasant jobs.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

24. The IR section plays the role of facilitating negotiation between management and
employees in the exigency (urgent need) of employee unrest quiet effectively.

o Strongly Disagree
o Disagree
o Agree
o Strongly Agree

57
 25. a) Do you have any suggestions for improving the working of IR?

Yes No

b) If yes, what are your suggestions?

Date:

58