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CHAPTER 1
INTRODUCTION
2
The phrase of collective bargaining was coined by Sydney and Beatrice Web.
According to them collective bargaining is a method by which trade unions protected
and improved the conditions of their members‟ working lives.
It is the public policy of the United States that the determination of employer
– employee relationship in terms engaged in interstate commerce shall take place
through collective bargaining. The right of the employee to join and work through
organizations is protected by various labor statutes. The National Labor Relations
Act specifies that it is an unfair labor practice for the employer to refuse to bargain
collectively with chosen representatives of a certified labor organization. The Labor
Management Relation Act specifies that, it is an unfair practice for the
representatives of a labor organization to refuse to bargain in good faith with the
employer. Collective bargaining is the approved answer to the employee – employer
relationship.
management rights. Focus is on such variables as the economic costs of offer made,
likelihood and costs of a strike and the sources of bargaining power.
CHAPTER 2
OVERVIEW OF
INDUSTRY
5
The textiles and apparel industry is an ancient one; bone needles have been
found dating as far back as 30000 BC. Before then, clothing articles were thought to
be simply pieced together using knots or by lacing hides. The industry experienced
slow development and few major changes until the industrial revolution, when the
production of textiles and apparel was significantly altered by technology. In fact,
due to the difficulty of making a piece of fabric, the textile industry was the first to
be mechanized. Since then, there have been many technological advances, mostly
incorporating the use of automation to improve quality and cost competitiveness.
The textile industry occupies a pride of place in the Indian economy. It is one
of the largest industries in the world in terms of spinning and weaving capacities.
The first attempt to start a textile mill in India was made in Kolkata by an English
man named Bowreah in 1819. Textile industry is one of the oldest and key segments
of our economy accounting for almost 14 percentage of the industrial production of
the country and providing direct and indirect employment to 35million people. This
industry is one of the largest net foreign exchange earner and accounting for almost
27 percentage of the country's total exports.
The cotton yarn exports from India have grown substantially in last 20 years
and at present it has 25 percentage market share in the global cotton yarn trade. The
exports of cotton yarn from India can be divided into three categories viz., coarse
counts, medium count and fine & super fine yarn. Almost 85 percentage of the cotton
yarn exports from India are of coarser counts and the balance 15 percentage
comprises medium, fine & superfine yarn, which are mostly combed.
of the total exports. In fact Indian textile industry is the second largest in the world,
second only to China.
Till the year 1985, development of textile sector in India took place in terms
of general policies. In 1985, for the first time the importance of textile sector was
recognized and a separate policy statement was announced with regard to
development of textile sector. In the year 2000, National Textile Policy was
announced. Its main objective was: to provide cloth of acceptable quality at
reasonable prices for the vast majority of the population of the country, to
increasingly contribute to the provision of sustainable employment and the economic
growth of the nation; and to compete with confidence for an increasing share of the
global market. The policy also aimed at achieving the target of textile and apparel
exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25
billion.
The share of Indian cotton yarn exports in the world trade, which at present
stands at 25 percentage has been stagnating due to recession in the world market and
global events. Competition from the countries like Pakistan, Indonesia, Syria, Egypt
& Turkmenistan is also affecting the trade.
7
These factors, however, affect mainly in the coarser count sector up to 30s,
which constitute 85 percentage of the trade. Upon dismantling quota system under
WTO export to EU & USA, will be completely free from January 2005 resulting in a
free world trade.
In a free market scenario, it is only the units, which are most efficient and can
produce goods in cost effective manner with strong emphasis on quality and
customer services, will be able to survive and prosper.
Besides, the Indian textile has the inherent advantage of home grown cotton,
comparatively cheaper labor and India that has the largest area under cotton
cultivation, has one of the lowest yields i.e., 300kg per hectare. The technological
mission on cotton launched by the government recently is expected to improve the
productivity to nearly double of the present yield will help the industry to meet its
growing of raw cotton at reasonable prices.
CHAPTER 3
COMPANY PROFILE
9
Over 90 percentage of the production is fine and superfine combed yarns and
compact yarns. GTN Group has its own cotton trading division; the company has a
great advantage of buying quality raw materials through out the tear. GTN has fully
equipped Quality Assurance Laboratory with latest facilities to achieve optimum
productivity and produce yarn of the highest quality at par with the international
quality standards. GTN has a policy of regularly meeting customers in their country
and discussing their requirements of yarn first hand and understanding problems if
any and taken suitable steps to remove them. Thus equity shares of GTN Textile
Limited (formerly GTN Industries Limited) are listed on Bombay Stock Exchange
10
Limited (BSE), National Stock Exchange Limited (NSE), and Cochin Stock
Exchange Limited (CSEL).
The company works for 7 days in a week using three-shift timing, viz., 8am
to 4pm, 4pm to12pm, and 12pm to 8am. The Alwaye unit recruits only male
employees. It employs 100 staff and 150 workmen.
GTN has followed the policy of up gradation of its equipment and adoption
of state-of-the art technology. The manufacturing facilities and testing laboratory of
the organization are equipped with modern equipment and machinery, majority of
which are state-of-the art technology. The organization has set up an organization
framework complete with quality assurance personnel and the systems.
The GTN Textiles LTD is an ISO-9001 certified company. GTN, Alwaye has
received "Award for excellence" from the ICMF Birla Economic and Textile
Research Foundation for sustained modernization and technological up gradation,
"Texprocil Award" for outstanding export achievements for the last 16 consecutive
years, GTN is named as the "Star Exporter" and "Export House" for its excellent
performance in export.
Patspin India Ltd: 100 percentage export oriented cotton yarn spinning unit in
collaboration with M/S ITOCHU Corporation, Japan with latest Trutztscher,
Rieter, Toyoda, Luwa, Spinlab, Uster equipments to produce counts from 245 to
805 combed of world class quality standard.
11
"The market place is the driving force behind everything we do, and we aim
and achieve the highest level of customer satisfaction on a continuous basis in all our
transactions."
3.4 Mission:
●Textile yarn diversification
●Survival of the company
●Maximum profit while reduce the cost
●Improve value addition process
Name Designation
B L Singhal Director
C D Thakker Director
R Rajagopalan Director
3.7 Auditors
M S Jagannathan & Visvanathan
GTN group has the distinction of pioneering exports to Japan and Italy
especially fine and superfine yarns. 2/3 of the group's productions are sold in Japan
and Italy.
13
The following chart gives the break up of GTN group's exports to various
countries.
Country Percentage
Japan 30%
Italy 40%
Belgium 6%
South Korea 7%
UK 4%
Australia 4%
China 2%
Others 7%
3.9.1 STRENGTH
Latest technology
Established product
Established market
Strong finance
Experienced and committed personnel.
95 % capacity utilization.
State of the art quality assurance.
Foreign collaboration.
Stock of raw materials for 5-6 months.
Decades of experience in trading cotton and yarn before venturing into
this line of activity.
14
3.9.2 WEAKNESS
3.9.3 OPPORTUNITIES
Expanding exports.
Availability of cheap labor.
Forward as well as backward integration.
3.9.4 THREAT
Chart No. 1
16
CHAPTER 4
DEPARTMENTS
18
The store department carries out the requirements of all the departments
of the company. The function of this department is to purchase and store
various materials according to the requirements.
This department checks the time of entry and exit of all the workers,
mark the attendance of the workers in the register. Metal disc method is used
for this purpose. Each worker is given a token bearing his details. All the
tokens are hung on a board at the entrance of the factory. One entering the
factory, each worker removes from the board his card and put to other board
kept near by. Later the time-keeper records the attendance in a register known
as “Daily Muster Roll”.
This department looks after the safety of the company, make right
patrolling inside the company premises, check the workers and vehicles at the
time of entry & exit.
4.1.11.1 HR Values
4.1.11.2 HR Principles
4.1.11.3 HR Functions
Fixing the number and qualification of the employees for the functioning of
the company.
Recruitment and selection.
Preparation of appointment letters.
Arranging training and development Programs for the employees.
Keeping all statutory obligations.
Liaison with other firms.
Advising the concerned departments about the changes in factory rules and
other related Acts
Maintaining strict discipline.
Making daily attendance of the employees, pay and overtime
Doing all correspondence relating to the ESI and PF.
Running of canteen
4.1.11.4 RECRUITMENT
The company identifies the need for personnel and tries to recruit then through
employment agencies and through advertisement given in the papers and sometimes
on the basis of recommendations. The company‟s recruitment policies are however
recruiting women into the most of managerial orders.
4.1.11.5 TRAINING
Both the workers and staffs are given training. Both on the job and off the job
are also gives as and when need for the employees. Many management development
programs are also organized. The management believes that the goodwill of the
customers can be ensured through offering high quality products. In order to meet
requirement need to ensure efficiency of operations and this could be realized only
through training
22
7. Jobbers union
CHAPTER 5
PRODUCT PROFILE
24
GTN Textiles is one of the largest cotton yarns exporting organization from
India and is currently exporting at most 100 percentage of its total production to
countries like Japan, Italy, South Korea, Taiwan, Indonesia, Singapore, Malaysia &
West Germany. The company pioneered exports of cotton yarn to Japan & Italy
where it has maintained its leadership.
GTN manufactures 100 percentage cotton yarn, carded and combed with
counts ranging from Ne 30s to 140s single, double for knitting and weaving and
geared yarns. The organization has specialized in the production of fine and super
fine yarns.
5.1.1 PRODUCTS
5.1.2 MACHINERY
GTN Textiles is fully equipped with state of the art machineries which
include latest generation Rieter, Autoleveller Draw F rames, Schlafhorst Model
AC238 Autocorner, Savio Orion fully automatic Auto corner, Two-for-One Twister
and SSM Singeing Machine, Precision Winding Machine etc. The spinning machine
is mainly supplied by M/s Rieter, Trutzgler, Toyota, Schalafhorst, Lakhmi, Suessen
ssm, luwa etc. Besides GTN Textiles has followed a policy of continuous
modernization and up gradation of technology
5.1.3.1 MIXING
5.1.3.3 CARDING
In this process, the blow room lap/chute material is cleaned; the fibers are
made parallel as well as individualized of fibers, waste extracted and assembled
into a continuous strand. This strand (end product) is called card silver. The
silvers are coiled and stored in cans.
26
5.1.3.4 COMBING
The Card Silver, then, prepared for combing in Silver Lap machines. The
product thus prepared is called ribbon lap. These laps are then fed to comber
machine. In comber the short fiber (low length fiber) and minute impurities are
removed and, the fibers are made parallel and assembled in the form of silver.
5.1.3.5 DRAWING
1. SIMPLEX
2. SPINNING
In doubling process two or more single yarns are twisted together. This
process consists of two processes viz. the assembly winding and twisting. In
assembly winding the required amount of single yarns of definite length (or
27
4. CONVENTIONAL WINDING
5. SINGEING:
In this process, yarn is passed through a flame at high speed to remove the
protruding fibers. The object of singeing is to make the yarn lustrous, which can
be used, for some special end uses.
6. PRECISION WINDING
CHAPTER 6
LITERATURE REVIEW
29
6. Literature Review
6.1 Definitions:
6.2.1 Collective:
Workers collectively bargain for their common interests and benefits.
Workers and management jointly arrive at an amicable solution through negotiations.
6.2.2 Strength:
With industrial democracy at work, both the parties bargain from the position
of equal strength.
6.2.3 Flexible:
Collective Bargaining cannot be rigid or inflexible as it‟s aim is to arrive at a
consensus.
30
6.2.4 Voluntary:
Both the parties negotiate voluntarily in order to have a meaningful dialogue.
Through negotiations, they try to probe each other‟s views thoroughly before
arriving at an acceptable solution. The implementation of the agreement resulting
from such a bargaining process is also voluntary.
6.2.5 Continuous:
This process begins with negotiations but does not end with an agreement.
Implementation of such an agreement, which is an on-going process, is also a part of
Collective Bargaining.
6.2.6 Dynamic:
The whole process of Collective Bargaining is influenced by the mental
make-up of the parties involved. As a result, the concept of Collective Bargaining
changes, grows, and expands over time.
6.2.8 Representation:
The participants in Collective Bargaining do not act for themselves. They
represent the claims of labour and management while trying to reach an agreement.
Each participant is an authorized representative of workers and employers.
Examples:
1. Wages and working conditions;
2. Work norms;
3. Incentive payments;
4. Job security;
5. Changes in technology;
6. Work tools, techniques and practices;
7. Staff transfers and promotions;
8. Grievances;
9. Disciplinary matters;
10. Health and safety;
11. Insurance and benefits;
12. Union recognition;
13. Union activities/responsibilities;
14. Management rights
32
bargaining? In this method, labour bargains for wages as usual. In addition, they also
bargain for such issues that, if permitted, may result in lower employment in some
other plant, diluting the bargaining powers of unions.
E.g. Workers demand further equity in matters relating to work norms, employment
levels, manning standards, environmental hazards, sub-contracting clauses, etc.
We see that workers are no longer solely interested in the monetary aspects to
the exclusion of work related matters. Through composite bargaining, unions are able
to prevent the dilution of their powers and ensure justice to workers by putting
certain limits on the freedom of employers. For the employer, this is the lesser evil
when compared to strikes and lockouts.
Nature of the problem also influences the selection of representatives, their size,
period of negotiations, and duration of the agreement that is ultimately reached.
34
Chief negotiator presents the problem, its‟ intensity and nature, and the views
of both the parties. Then, the representatives of both the parties are invited to present
their views. Principle to be followed by both the parties at the time of negotiations
`being attentive to the other party‟ While negotiating, each party, instead of paying
attention to the point of view of the other party, tends to think more about their
counter arguments and how to say `no‟ to their offer. Both the parties need to
maintain a positive attitude and should `think‟ rather than `feel‟ their way through the
problem under consideration. Both parties should try to reach an amicable solution.
When a solution is reached at, it is put on paper, taking into consideration the
concerned legislations. Thereafter, both the parties sign the agreement, which, in turn
becomes a binding contract for both the parties. On the other hand, if no amicable
solution is reached, both parties may consider arbitration.
35
6.6.4 Implementation:
The agreement resulting from Collective Bargaining may be temporary. In
this case, before its expiry, both parties consult each other and can terminate or
renew the agreement depending upon the circumstances. Depending on the
attractiveness of the agreement for either of the parties, one may want a renewal
while the other may want a termination. This leads to further negotiations. So, in
reality, Collective Bargaining is a continuous process and not a temporary
accommodation.
bargaining collectively gained strength in the early part of the 18th Century. Initially,
the negotiations were carried out at plant level. By early 1900, industry and national
level agreements became quite common. The idea spread across to France, Germany,
and USA. And today, through the process of Collective Bargaining, organizations
have learnt to cope with industrial conflict.
In India, trade unions gained prominence much later – only after 1900. In
1918, Gandhi - as the leader of the Ahmadabad textile workers – advocated the
resolution of conflict through Collective Bargaining agreements. But the idea
gathered interest only after the Second World War. The Government of that time
took steps like setting up of machinery for negotiations, conciliation and arbitration.
The trade union movement and also Collective Bargaining agreements became
popular after Indian independence. Moving from agreements at the plant level, such
agreements spread to industries such as chemicals, petroleum, tea, coal, oil and
aluminum. In ports and docks, banking and insurance, collective agreements were
arrived at, right at the national level.
Reasons:
Lack of statutory recognition of unions by the country as a whole.
Lack of provisions requiring employers and workers to bargain in „good
faith‟.
The historical problem of „lack of trust‟ between the parties
Have all stood in the way of collective agreements contributing towards
industrial harmony.
37
CHAPTER 7
RESEARCH
METHODOLOGY
42
Objectives:
Methodology:
Type of study:
Source of information:
The relevant data in the subject under study was collected from
the following sources.
43
Sampling design:
Sample size:
Respondents:
Pre- Testing:
Pilot study:
Survey:
STUDY DESIGN
Table No. 1
A study to find out the effectiveness
Title of the study of collective bargaining in GTN
Textiles Ltd. Aluva
1. Primary data
Sources of information
2. Secondary data
1. Questionnaire
Tools for data collection
2. Personal interviews
1. Percentage
Tools for data analysis 2. Pie diagram
3. Bar Charts
CHAPTER 8
Designation Distribution
Cleaning gang worker 18
Sider 17
Electrician 6
Winder 14
Dofingmen 12
Operator 2
Helper 5
Packer 9
Spinner 5
Occupational reserve piecer 2
Total 90
Chart No. 2
48
Chart No. 3
49
Table No. 4
Chart No. 4
Interpretation
Table No. 5
Sl. No. Opinion No. of respondents % of respondents
1 Yes 25 28
2 No 65 72
Chart No. 5
Interpretation
3. Do you think that the trade unions take an active role in the welfare of
employees?
Table No. 6
Sl. No. Opinion No. of respondents % of respondents
1 Yes 76 84
2 No 14 16
Chart No. 6
Interpretation
84 percentage of the respondents think that the trade unions take an active
role in the welfare of employees. This is due to the fact that if they don‟t perform
correctly they will create a bad impression in the minds of employees which will
affect their very existence.
52
Table No. 7
Chart No. 7
Interpretation
Table No. 8
Sl. No. Opinion No. of respondents % of respondents
1 Capacity to present/ Bargain 18 20
2 Appearance of the person 0 0
Ability to provide quick and
3 wise suggestions and 72 80
present it.
Chart No. 8
Interpretation
6. Is your opinion considered by the union leader before they present the matter
to the management?
Table No. 9
Sl. No. Opinion No. of respondents % of respondents
1 Yes 68 76
2 No 22 24
Chart No. 9
Interpretation
7. Are you satisfied with the statutory welfare services provided in the
organization?
Table No. 10
Chart No. 10
Interpretation
Table No. 11
Chart No. 11
Interpretation
9. Is your present pay and allowances sufficient to meet your daily necessities in
life?
Table No. 12
Sl.
Opinion No. of respondents % of respondents
No.
1 Yes 76 84
2 No 14 16
Chart No. 12
Interpretation
84 percentage of the employees believe that the present pay and allowances
are sufficient to meet the daily necessities of life as against just 16 percentage. This
is because GTN is providing pay according to the present industrial standards even
with the present economic slowdown.
58
10. According to you, what percentage of your pay and allowances is a result of
union activity?
Table No. 13
Chart No. 13
Interpretation
Almost all of the employees believe that only less than 75 percentage of their
pay and allowance is a result of union activity. This is because GTN is providing pay
and allowance according to the present industrial standards even with the present
economic slowdown without much union pressure.
59
Table No. 14
Chart No. 14
Interpretation
12. Do you think that the shift hours and timing provided by the management is
apt?
Table No. 15
Sl. No. Opinion No. of respondents % of respondents
1 Yes 70 78
2 No 20 22
Chart No. 15
Interpretation
78 percentage of the employees believe that the shift hours and timing
provided by the management is apt as against 22 percentage. This is evident from the
reduced number of absenteeism of employees in the organization.
61
Table No. 16
Sl. No. Opinion No. of respondents % of respondents
1 Yes 68 76
2 No 22 24
Chart No. 16
Interpretation
Table No. 17
Chart No. 17
Interpretation
15. Is there any work committee or joint management committee formed in the
organization?
Table No. 18
Chart No. 18
Interpretation
16. Do you think that the VRS will result the better performance of the
organization?
Table No. 19
Sl. No. Opinion No. of respondents % of respondents
1 Yes 54 60
2 No 36 40
Chart No. 19
Interpretation
60 percentage of the employees believe that VRS will result the better
performance of the organization as it helps aged employees who find it difficult to
work leave with dignity. While 40 percentage is of the opinion that VRS gives
employees an opportunity to use GTNs resources and gain experience and exit the
organization by taking a huge pay.
65
17. According to your knowledge did the trade unions ask for any modifications/new
demand during the validity of the last 4 long term settlement?
Table No. 20
Chart No. 20
Interpretation
All the respondents believe that the trade unions had asked for modifications/new
demand during the validity of the last 4 long term settlement. This is because of the
change in economic and political conditions.
66
Table No. 21
Sl. No. Opinion No. of respondents % of respondents
1 Through Strike 0 0
Through Supplementary
2 90 100
Settlement
Through government
3 0 0
Intervention
Chart No. 21
Interpretation
All the respondents unilaterally agreed that any modifications/new demand during
the validity of the last 4 long term settlement was settled in the form of
Supplementary Settlement through bilateral talks.
67
19. Was there cordial relationship between the management and trade unions during
the validity of the last 4 long term settlement?
Table No. 22
Chart No. 22
Interpretation
84 percentage of the respondents believe that there was cordial relationship between
the management and the trade unions during the validity of the last 4 long term
settlement.
68
20. Was there any token strike or non-cooperation from trade unions during the
Table No. 23
Chart No. 23
Interpretation
All the respondents are sure that there has been no token strike or non-cooperation
from trade unions during the validity of the last 4 long term settlement.
69
CHAPTER 9
FINDINGS, SUGGESTIONS
AND CONCLUSION
70
FINDINGS
1. Most of the respondents are satisfied with the statutory welfare service
provided in the organization.
2. It is observed that the union leaders considered the employees opinion while
they present a matter before management.
5. Respondents are satisfied with the shift hours and timing provided by the
management
7. Most of the respondents are aware about the work committee and joint
management committee formed in the organization.
8. The trade unions had asked for modifications/new demand on the then long
term settlement during its validity.
9. The demands were settled through supplementary settlement after bilateral
talks.
10. There was cordial relationship between management and trade union during
the period of long term settlement.
11. There was no token strike or non-cooperation from the workers during the
period of long term settlement.
71
SUGGESTIONS
2. The quality circle and welfare amendments is to get improved, this will
change the workers perception and work culture through proper discussions,
4. Union must understand the economic implication and realize that union‟s
demands must be met from the income and resources of the organization.
the company.
72
CONCLUSION
BIBLIOGRAPHY
74
BIBLIOGRAPHY
Books
Rao, V.S.P. “Human Resource Management”, 2nd edition, Excel
Books, 2000. Pg.513-528.
Kothari C.R. “Research Methodology
Sanjiv Misra, “India‟s Textile Sector” 1st edition, Anand books.
Pg.23- 31.
B. Saloo, “Problems & Prospects of Textile Industry” 1st
edition, Flipping Publishing. Pg. 17-35.
Journals
GTN Textile - Quality Manual 2008
GTN Textiles - Annual Report 2008
Websites
http://www.gtntextiles.com/homepage.html
http://en.wikipedia.org/wiki/Textile_industry
http://en.wikipedia.org/wiki/Research_methodology
75
ANNEXURE
76
QUESTIONNAIRE
Designation :
Years at Service :
3 Do you think that the trade unions take an active role in the welfare of
employees?
Yes
No
6 Is your opinion considered by the union leader before they present the matter to
the management?
Yes
No
7 Are you satisfied with the statutory welfare services provided in the
organization?
Yes
No
77
9 Is your present pay and allowances sufficient to meet your daily necessities in
life?
Yes
No
12 Do you think that the shift hours and timing provided by the management is
apt?
Yes
No
16 Do you think that the VRS results in the better performance of the
organisation?
Yes
No
17 According to your knowledge did the trade unions ask for any
modifications/new demand during the validity of the last 4 long term settlement.
Yes
No
19 Was there cordial relationship between the management and trade unions
during the validity of the last 4 long term settlement?
Yes
No
20 Was there any token strike or non-cooperation from trade unions during the
validity of the last 4 long term settlement?
Yes
No