PDF Nov-13 issue

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Debi S. Saini

E.I. Ravindranath

Harbhajan Singh

Dr. Rajen Mehrotra

Vijay Deshpande

Surendranath.A

Vivek S. Patwardhan

Nandakumar D.V. Michael Dias Rakesh Pd Srivastav Anil Malik

The emerging dynamics... -Debi S. Saini

The Changing Shades of IR -E.I. Ravindranath

An unpredictable domain -Harbhajan Singh

The Changing World of Industrial Relations -Dr. Rajen Mehrotra

Road to Peaceful IR - Michael Dias

Movi[ei]ng Towards Healthy Industrial Relations -Vivek S. Patwardhan

The Essence of Co-existence -Vijay Deshpande

Transforming IR - A Case Study -Rakesh Pd Srivastav

Creating Robust IR -A Case Study -Anil Malik

Are we transforming? -Nandakumar D.V.

Need to develop IR leadership traits... -Surendranath.A

16-37

Cross culturaldiversitytraining

programs

BY SIMRAN OBEROI

38

Diversity & InclusionPMS and Performance Linked Pay: An Iceberg View

If you wish to make performance linked pay work, you must carefullydefine the purpose and communicate to people extensively and createtheir buy in.The is because performance linked pay could be a gamechanger in the life of people and organizations.An article by Praveen Sinha.06Leadership lessons from Indian Military

Dynamic leaders inculcate a strong sense of mission, a sense ofbelongingness, and camaraderie for each other among the teammembers through their logical approach and conflict solvingtechniques. An article by Capt( Retd) Varun Sharma.08Do Great Companies Think?Think Differently?

CEOs must expand their investments to include employeeempowerment, emotional engagement, values-basedleadership and related societal contributions.An article by K.S. Ahluwalia.10HRM in Public Sector

The source of recruitment in public sectors areemployment exchange, open advertisement, deputationfrom other sources, campus promotion from within,transfer from other unit etc. An article by Chinmay Kumar Podder.12

Union Office in the Air

- Dr. PVR Murthy

15

Questions by readers on variety ofproblems they face at work andanswered by Anil Kaushik ChiefEditor. Look at it. These may also be ofsome help to you.

Latest from theCourtsLatest verdicts from different High Courts and SupremeCourt effecting employer employee relations.4239

Government Notifications 41

Ideal IndustrialRelationshipBy Prof. Ravi Dharmarao

Business Manager November 201303

Chief Editor ANIL KAUSHIK

Associate Editor Anjana Anil

Hon'y Editorial Board Dr. T.V. RaoDr. Rajen MehrotraDr. V.P. SinghH. L. Kumar

Hon’y Research LeadIndranil [email protected]

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Need for panel ofIndependent EnquiryOfficers

The Enquiry Officer, howsoever impartial he may be,does not inspire the confidence of the delinquentworkmen. This feeling frustrates the very essence ofnatural justice. Therefore, it is necessary that the lawshould provide a 'panel of Enquiry Officers'. An articleby H.L. Kumar.53

55

56Policy of Recruiting

right in the key

Intellectual Property LawAuthor : Avtar Singh

Model Appointment Letters &Service Rules -Author : H.L. Kumar

Essentials of Human RightsAuthor : Raj Kumar Gupta

Production and operationsManagement -Author : Kanishka Bedi

Digest of Labour Cases 1990-2013 -Author : H.L. Kumar

Practical Guide to Contract LabourAuthor : H.L. Kumar

60

IR conclave onemployment compliances

South Gujarat IR Conclave

Mega HR Conclave

Impacting businessresults through HR

Encourage contract employment with moresecurity measures : study

Beware of fake interviews & offers

EPFO to be strict with contractors evading PF

6 Months Jail for liberty shoes Director

ISF opposes ESI cap increase

PF Online Transfer becomes functional: EPFO

By Mihir Gosalia

58


Customised practiceThe cover story emphasising the importance ofhiring and process to identify the right fit islaudable. This has always been one of the mostcomplex and fascinating subjects. HR tendencythat impacts organisation performance is lack ofgoal or objective in hiring. The experts’ viewsshowcasing different facets make the storyinsightful. In today’s environment, the best wayto identify to right fit and talent rise in businessleaders rising above inherent human frailties inorganisational activities. HR need to evolve freshparadigms, standard methods and metrics forcustomisation. No single practice of hiring whichis workable in one organisation will necessarilygive same result in other organisation.

-Deepak Bhullar

ImpressedI am highly impressed by the articles of variousprofessionals on recruitment and selectionprocess. Inspite of having experience of yearstogether in interviewing and selection of persons.This is the single hardest task in organisationallife one could have. You are not sure that the trickand intuition which worked yesterday, will alsosuccessfully identify and bring good persons inthe organisation tommorrow. I have seen manyexperienced managers falling in trap ofsubjectivity and going by the decision of “justliking”. Many managers are poor at predictingwho will be the best hire, especially for a job thatrequires significant experience ; unless they arespecially trained in the process, they maysuccumb to personal biosis.

-Pratima Joglekar

UnmatchedI am new reader of your magazine from last three-four months. What has compelled me to write youis the consistent powerful and quality contentstotally unmatched you provide. Each issuecoming one after another brings the variety insuch a balanced manner that no HR professionalcan afford to ignore this magazine. I amrequesting you to please send me all avilable pastissues of last three years.

-V.P. Venkatesh

Must alignHR people must align to business needs on realtime basis which will ensure them status ofbusiness partner.

-Sanjay Panse

CandidRitu Mehrotra in her article dealing withworkplace negativity has very precisely indicatedthe reasons and pit falls. She has very candidlygiven tips to manage this menace at workplacewhich you can minimise by your intelligence andemotional strength.

-Surekha

Enhancing capabilityI am regular reader of Business Manager and thearticles are really interesting and enhanceprofessional outlook and capabilities.

-Uday Ghag

SharpI Have been a regular reader of your magazineand I like your style of writing and the way inwhich you have exposed the contents of yourmagazine very sharply. I am sure that the readerswho are related to HR get very useful guidanceand more different types of point views fromvarious senior HR Executives who give excellenttopics like "Workplace Negativity","Organisational Excellence", "Satisfaction atwork" and also "Conservation" etc...

-S. Jeyaseelan

NiceAw, this was a truly nice post. In thought I wouldlike to put in writing like this moreover - takingtime and actual effort to make a highly decentarticle?- but what can I say?- I procrastinate a lotand by no indicates seem to obtain somethingdone.

-Yateender Pal

InterestingRef. your editorial note of Aug. issue on Coaching.One can find some interesting points in time inthis write-up but I do not know if I see all of themcentre to heart. There is some validity but I willtake hold opinion until I look into it further.Fantastic article , thanks and we want extra!

-Sonam Kapoor

Simple & ClearI enjoyed reading this article (editorial) which isvery well written. It is often difficult to explainwhat coaching is and what a coach does - you havedone a great job of explaining in a simple andclear manner. Congratulations!

-T.V. Srinivasan

Business Manager November 201304Readers are invited to comment on articles published in BM through email at : [email protected], [email protected]

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Anil Kaushik



In spite of the fact that historically employer and labour have been adversaries, the need of sincere efforts

by managements and unions to transform themselves from archaic mind set to progressive havealways been asserted by all .Much and repeatedly has been said that every one should play by the ruleof the game to keep industrial relations healthy and smooth.

This is the relationship which can never be taken for granted in the industry. What impacts morale ofemployees, which approach counters each other, what makes workers to die for organization andwhat makes them to take life of some one , is difficult to predict. Neither this relationship is a sciencenor an art but something beyond that where both have to check, repair and nurture the relationshipwith honesty.

It is good to know that after spate of clashes in industry throughout country in past, between managementsand unions, signs of transformation are visible though not so strongly as required.A gradual increasein the dedicated efforts on the part of organizations has been noticed in this direction but much isrequired to be done with speed.

Managements have been advocating for reforms in employment regulations compatible to changingbusiness environment since long but Govt. did not demonstrate enough courage and commitmentto act upon in spite of agreeing in principle.The question comes; should industries keep waiting forsuch reforms and allow deteriorating IR? Organizations have to evolve their own strategies to fosterstrong relationship to avoid disputes and tension without banking much upon regulatory reforms.

One of such strategies could be to effectively train shop floor managers in people management skills andmake them sensitized towards employees’ issues, developing empathy and not translating everyinitiative from economic angle. Second could be to create and maintain balance between flexibilityand cost effectiveness in respect of hiring contractual/ temporary workforce. Organizations inchanging business equations can’t afford to ignore this class of workforce which has attained a largespace as high as 70 % in many industries which is capable of turning the tide in any direction.Whenit is clear that this “permanent temporary” category of workmen is going to stay for ever, addressingtheir compensation and social security issues and managing their aspirations have to be on top HRagenda. Third one could be making sincere efforts towards educating workers for understandingwork culture and their obligations towards the organization.

Unions also have to introspect whether they are hurting the interests of workers by pushing them on theway to confront management on every issue that can be sorted out by understanding each other’slimitations?

BM’s this issue is an initiative to find out whether Organizations are transforming themselves on the front ofIndustrial relations? Industry experts who have handled the toughest storms of IR in their career havemuch to offer to readers to understand the tricks and basics to sail the ship in troubled waters.

If you like it let us know. If not, well, let us know that too.

Happy Reading!

Sounds Utopian?

The wreckage and sinking of 'Titanic' hasmoved into the pages of history, but thereis a lot to learn from the fatal damagecaused by the iceberg, i.e., the unknownfloating below the waterline, the power of

invisible…the risk of not knowing it.

We often say 'if you know it, you can manage it'.When we look at the concept of performance linkedpay (also known as incentive pay, performanceaward, etc.), we generally focus on two variables(output) KRA achievement and earning of incentivepay. These two variables lie at the top of thewaterline, therefore, clearly visible and easilybecomepoint of attention where we channelize lotsof energy throughout the year.

At the end of appraisal cycle or performancelinked pay cycle, we get mixed reaction-note ofhappiness and note of despair and then we try tomanage negative human emotions…and again walkinto the corridor of new cycle without actuallysolving the issue…the life goes on.

What makes performance linkedpay succeed

The big question is what makes performancelinked pay succeed - goal itself (yes, we cannotignore it) or practice of the 'desired behaviour' toachieve the goal. This debate may lead to thepossible answer of another question - whycompanies are not able to get the desired results inspite of introducing carefully crafted performancelinked pay scheme? What is the missing link?

It appears that if we wish to make performancelinked pay work, we must carefully define thepurpose and communicate to people extensively andcreate their buy in. The purpose is beyond buildinga performance culture in the organization. Thepurpose is also not confined to rolling out of TotalReward System (TRS) as part of best practice.

The performance linked pay could be a gamechanger in the life of people and organizations. Inthe light of this statement, we may examine thecurrent practices prevalent in organizations.


PRAVEEN SINHAAssociate Vice President - CorporateHR, Escorts Ltd, Faridabad

PMS and PerformanceLinked Pay: An Iceberg ViewIf you wish to make performance linked pay work, you must carefully define thepurpose and communicate to people extensively and create their buy in. The is becauseperformance linked pay could be a game changer in the life of people andorganizations.

If we look at the iceberg, the 'above waterline'area is marked as 'KRAs/Goals/PerformanceLinked Pay (PLP). The area 'below waterline' is'desired behaviour' which comprises of motives, self-image, etc. Since our current PMS system is topdown, therefore, individual KRAs/Goals also havethe same slant. There is nothing wrong with thissystem as it creates a right linkage withorganizational objectives. The top down approach isacceptable till we arrive at some better alternativeor innovative system which could create a good mixof top down and bottom-up approach withoutdebilitating the balance of organizational andindividual need for achievement.

The bigger challenge is not in managing 'abovewaterline' phenomenon, i.e., 'KRAs/goals' rather inmanaging and energizing 'below the waterline'forces and help people createdesired behaviour in making themachieve or exceed their goals andthereby earning performancelinked pay and strive more andmore in the years ahead.

Often in PMS system, we do notfind built-in distinct mechanism foreliminating/minimizing 'undesiredbehaviour', i.e., behaviour notconsistent with the environment orpresence of certain workplacebehaviour inhibiting achievementof KRAs/goals - this piece is aninvisible massive underwater'iceberg'…which ripped and sankthe 'Titanic' in North AtlanticOceanin April 1912.

Incorporating 'corevalues' in PMS

There are many organizationswhere they have incorporated 'corevalues' in PMS, however, the debateis on whether adherence to 'core values' should bemeasured (measurement through 360 degree surveyfeedback) and become part of performance score.The debate can go on, but one good thing aboutincorporating 'core value' is that people will bealigned to the organizational identity - WHO WEARE - which will reward right behaviors inachieving KRAs/goals.

Coming back to the main issue - should we buildanother core dimension (to address under the 'waterline' concern) in our existing PMS system tocreate/reinforce desired behaviour to make peopleachieve/exceed KRAs/Goals and motivate them to

earn performance linked pay…and even go beyond100 per cent? The other school of thought may bethat we need not touch PMS system; rather weconsider it as a reference point and create a separatestream to create/reinforce desired behaviourleading to desired results.

The route to success could be many, however, onepoint has emerged that while indulging in annualKRAs/goal setting (where performance linked pay ispart of the total concept/package), organizationmust simultaneously examine in-depth individualneed (it may not be required at all level) forcreating/reinforcing 'desired behavior' (by choosingright measurement tool and mechanism) to makepeople succeed in achieving/exceed their annualtargets in line with organizational priorities - a'WIN-WIN' scenario.

Why the Titanic sank?Until its April 14, 1912 sinking in

the North Atlantic Ocean, RMSTitanic was the biggest and mostluxurious of the Olympic-classOcean liners built during theprosperous Edwardian era aroundthe turn of the 20th century. Thesinking claimed over 1500 lives andoccurred following an 11:40 pm'collision with an iceberg'. Thewreckage of the RMS Titanic splitinto its bow and stern portionsduring the sinking, which today lieon the ocean floor over 1900 feetfrom each other 12467 feet from thesurface. The remains of the shipwere lost until explorer RobertBallard rediscovered them in 1985.This rediscovery began a renewedwave of public interest in theTitanic and its stories. We all knowthat the iceberg was the cause that

lead to it sinking, but what exactly did the icebergdamage that caused the ship to snap in half and fallto the bottom of the Atlantic Ocean? Turns out,where the ship was hit proved just as important asthe fact that it suffered a blow at all.The Titanic, uponencountering the iceberg, attempted to steer aroundthe massive block of ice. But in doing so, the side ofthe Titanic scraped up against the iceberg-which wasmuch more massive underwater than above water-ripping opened a hole towards the front of the ship.Attempting to sail on, the ship filled full of water,causing the bow to dip down into the water.

Internet accessed to have data on 'Titanic'



The big question is what makes performance linked pay succeed - goal itself (yes, wecannot ignore it) or practice of the 'desired behaviour' to achieve the goal.This debatemay lead to the possible answer of another question - why companies are not able toget the desired results in spite of introducing carefully crafted performance linked payscheme? What is the missing link?

The bigger challenge isnot in managing 'abovewaterline' phenomenon,i.e., 'KRAs/goals' rather in

managing andenergizing 'below thewaterline' forces andhelp people create

desired behaviour inmaking them achieve orexceed their goals and

thereby earningperformance linked pay

and strive more andmore in the years ahead.

PMS and Performance Linked Pay: An Iceberg View

BM


Indian defense forces have beenfighting numerous battles onvarious fronts, such as fighting onthe western borders or dealingwith Internal security or natural

calamities, with great success and havebeen driving success for themselves andfor the country. There are numerousexamples in our history and the mostrecent one is the flood relief operationsin Uttrakhand wherein our armed forcesdisplayed indomitable courage in tryingcircumstances. Indian Air force, IndianArmy and Indian Navy are highlyorganized, well disciplined, extremelyprofessional and among the mostreliable organizations in our countryand they have always held the nationalinterest high during the times of crisis.The military leaders have played asignificant role over the years inmaintaining the high standards ofoperational readiness and combateffectiveness. They have exceptionalleadership qualities which have a lot ofbusiness value and can attribute tosuccess in corporate India too.

Mission-The Top PriorityThe result of the missions allotted in

Indian armed forces have repercussions

that are not limited to the defense forcesbut to the security of the entire nation.Such is the sensitivity of these missionsthat failure of one mission can lead toembarrassment for the country at theglobal platform. Thus, It's mandatoryfor a military leader to accomplish themission irrespective of the difficulties,or circumstances. These dynamicleaders have a strong sense for missionand they always keep the mission aheadof every other factor or need in terms ofpriority; rather mission takes the toppriority and rest everything comesmuch later. However, giving top priorityto mission by the leader has littlerelevance if each individual in the teamdoesn't willingly follow the leader.

The teams in military are generally acomposite group of diverse people withdiversity ranging from differentreligion, race, and cast, to differentplace of residence. It is normal formembers of a team of such diversity tohave a different outlook or difference inattitude or incompatibility among eachother. However, These dynamic leadersinculcate a strong sense of mission, asense of belongingness, andcamaraderie for each other among theteam members through their logical

Leadership lessons from Indian Military

CAPT( RETD) VARUN SHARMA CEO & Co-founder - M2CGhaziabad

Dynamic leaders inculcate a strong sense of mission, a sense of belongingness, andcamaraderie for each other among the team members through their logical approachand conflict solving techniques.

If a leader is alwayspunctual, self-discipline, cooperative,loyal, and unbiased orimpartial in conduct, avery high chances arethere that not only theteam members will tryto adapt the qualitiesof the leader but alsothey will show faith inleader's decisions.

approach and conflict solving techniques. Moreoverthe high ethos and traditions of our forces foster thespirit of belongingness among the troops. Such isthe respect for the task each member has that theyrefuse to quit in spite of fatal injuries during battleand many of our warriors have succumbed to theirinjuries and attained martyrdom while fighting forthe mission. Mission accomplishment in militaryand target achievement in corporate have a directcorrelation for none of them can be achieved if theteam responsible is not a cohesive team and everymember of the team is not committed to the cause ofthe organization. A leader cum manager plays asignificant role in building team spirit, andcohesiveness among the team members during theroutine work and infuse a strong sense for the taskat hand through his or her charismatic leadership.

Set Examples; Every member Follows

The professionalism percolates down the chain ofcommand in military. In the times of crisis, men lookat the leader to show them the right way and steerthem out of the critical situation. The leader'simpressive conduct and positive appearance lead tothe gaining of respect of followers and their willing,and unconditional support even in trying conditions.In forces, leaders set very high standards throughpersonnel example and through performing theirduties in an exceptional manner in all the fields andthey hold every member to those high standards. If aleader is always punctual, self-discipline, cooperative,loyal, and unbiased or impartial in conduct, a veryhigh chances are there that not only the teammembers will try to adapt the qualities of the leaderbut also they will show faith in leader's decisions.

Act Selflessly For Your TeamMembers; Team Will Be Yours

The nurturing of relationship between a leaderand it's team is an effort taking, continuous processwherein a military leader does the following things

to ensure a strong relationship with teammembers:- Knowing that each human is different,Initially The leader tries to acquaint with themindividually, both professionally and personally,including knowing their strengths and weaknessesand their expectations and needs. Familiarizationwith the characteristics of team members go longway in understanding their real potential and thedrivers that move each individual. The Leader tries tobe friendly, appreciative, and approachable. This waynot only that the one leading is more accessible butalso leads to better working environment. This alsoleverages the scope for determining the mentalattitude and emotional state of members. To help outthe one going through trouble mentally or physically,The leader acts selflessly to spare him or help himand doesn't mind sharing the work. Also, The leaderadministers justice impartially without any favouron any baises. If a business manager takes note ofsmall little achievements and gives recognition to themembers even by simply saying 'Well Done', The actof appreciation motivates the morale of the membersand increases their enthusiasm for work. A realconcern for your team members and keeping interestof them ahead of yours will not only earn you agenuine respect from them but you will be able to wintheir hearts and mind and channelize them for yourorganization's growth and profit.

Offensive Spirit-Strive For Top Position

In military, the offensive spirit relates to thefeeling or desire to get closer with the enemyaggressively and destroy it completely.Aggressiveness or offensive spirit surges theadrenaline rush in your blood and takes over themind to achieve impregnable targets in adominating manner. It's the leader that infuses theoffensive spirit into the minds of team membersthrough body language, discussions, plans and pep-talks. Aggressiveness correlates with taking theearly lead and maintaining that dominance throughout. It is equally applicable to a 100 m race inathletics or to a newly launched business. Offensivespirit works at two ends; on the one side it allows thedoer to be ahead and maintain dominance in a swiftmanner and on the other hand , It also acts likeshock action to the opposition or competitors anddemoralizes them to an extent that many leave thegrounds to quit. Not only aggressiveness leads toachieving targets in the given time frame but alsoraises the morale and motivation of the team,leading to job satisfaction. To achieve targets in abusiness environment or to accomplish mission in acombat zone, Leadership plays a crucial role indefining the course of action and subsequentsuccess. The qualities that a leaders in militaryrequires have a lot in correlation with the qualitiesthat a leader cum manager requires in businessworld. The value of leadership and team buildinghas a defining role in the success of a operation orprofessional growth and increase in profits in abusiness and therefore requires due deliberation onpart of leaders and managers at all levels.



Leadership lessons from Indian Military

BM

It's time that beliefs and theoriesabout business catch up with theway great companies operate andhow they see their role in theworld today. Traditionally,

economists and financiers have arguedthat the sole purpose of business is tomake money-the more the better.

That conveniently narrow image,deeply embedded in the world'seconomic system, molds the actions ofmost corporations, constraining themto focus on maximizing short-termprofits and delivering returns toshareholders. Their decisions areexpressed in financial terms.

I say convenient because thislopsided logic forces companies toblank out the fact that they commandenormous resources that influence theworld for better or worse and that theirstrategies shape the lives of theemployees, partners, and consumers onwhom they depend. Above all, thetraditional view of business doesn'tcapture the way great companies thinktheir way to success.

Those firms believe that business isan intrinsic part of society, and theyacknowledge that, like family,government, and religion, it has beenone of society's pillars since the dawn ofthe industrial era. Great companies

work to make money, of course, but intheir choices of how to do so, they thinkabout building enduring institutions.They invest in the future while beingaware of the need to build people andsociety.

In this sharing, I turn the spotlighton this very different logic-a social orinstitutional logic-which lies behindthe practices of many widely admired,high-performing, and enduringcompanies. In those firms, society andpeople are not afterthoughts or inputsto be used and discarded but are core totheir purpose.

My continuing field research onadmired and successful companies,across spectrum has provided memeaningful insights about the role ofinstitutional logic in business.

Institutional logic holds thatcompanies are more than instrumentsfor generating money; they are alsovehicles for accomplishing societalpurposes and for providing meaningfullivelihoods for those who work in them.

According to this school of thought,the value that a company creates shouldbe measured not just in terms of short-term profits or paychecks but also interms of how it sustains the conditionsthat allow it to flourish over time.


Do Great Companies Think?

Think Differently?

K.S. AHLUWALIAExecutive Coach and Mentor-Excalibre

CEOs must expand their investments to include employee empowerment, emotionalengagement, values-based leadership and related societal contributions.

Those firms believethat business is anintrinsic part ofsociety, and theyacknowledge that,like family,government, andreligion, it has beenone of society'spillars since thedawn of theindustrial era.

These corporate leaders deliver more than justfinancial returns; they also build enduringinstitutions.

Rather than viewing organizational processes asways of extracting more economic value, greatcompanies create frameworks that use societalvalue and human values as decision-makingcriteria.

They believe that corporations have a purposeand meet stakeholders' needs in many ways: byproducing goods and services that improve the livesof users; by providing jobs and enhancing workers'quality of life; by developing a strong network ofsuppliers and business partners; and by ensuringfinancial viability, which provides resources for

improvements, innovations, and returns toinvestors. In developing an institutional perspective,corporate leaders internalize what economists haveusually regarded as externalities and define a firmaround its purpose and values. They undertakeactions that produce societal value-whether or notthose actions are tied to the core functions ofmaking and selling goods and services.

Whereas the aim of financial logic is to maximizethe returns on capital, be it shareholder or ownervalue, the thrust of institutional logic is to balancepublic interest with financial returns.

Institutional logic should be aligned witheconomic logic but need not be subordinate to it. For

example, all companies require capital to carry outbusiness activities and sustain themselves.However, at great companies profit is not the soleend; rather, it is a way of ensuring that returns willcontinue.

The institutional view of the firm is thus nomore idealized than is the profit-maximizing view.Well-established practices, such as R&D andmarketing, cannot be tied to profits in the short orlong runs, yet analysts applaud them. If companiesare to serve a purpose beyond their businessportfolios, CEOs must expand their investments toinclude employee empowerment, emotionalengagement, values-based leadership, and relatedsocietal contributions.

Business history provides numerous examples ofindustrialists who developed enduring corporationsthat also created social institutions. The Houghtonfamily established Corning Glass and the town ofCorning, New York, for instance. The Tata familyestablished one of India's leading conglomeratesand the steel city of Jamshedpur, Jharkhand. Thatstyle of corporate responsibility for society fell outof fashion as economic logic and shareholdercapitalism came to dominate assumptions aboutbusiness and corporations became detached fromparticular places.

In today's global world, however, companies mustthink differently.



Do Great Companies Think? Think Differently?

BM

Human Resource Manage-ment is all about managingpeople in the organisation.Today, of course the scopeof HRM has been expanded

to include all conceivable people relatedissues. Though there are number ofcommonalities between public sectorand private sector as far as scope ofHRM is concerned there are alsosignificant areas which are typical ofpublic sector. HRM is more challengingin Public Sectors than in PrivateSectors. I have explained themhereunder point-wise for easyunderstanding.

RecruitmentRecruitment in public sectors

are according to laid down policies and subject to regulatory restriction.The following will give a clear picture.

Source of recruitment : The sourceof recruitment in public sectors areemployment exchange, openadvertisement, deputation fromother sources, campus promotionfrom within, transfer from other unitetc. But the source of recruitment in

private sectors are wider. They canconsider forced applications,referrals, third party source likeconsultants, head hunters etc.

Compulsory notification ofvacancy : In case of public sectorvacancies in group C & D posts haveto be compulsorily notified to localemployment exchange/ stateemployment exchange underCompulsory Notification of VacancyAct 1959 whereas it has not been madeapplicable to private sectors as yet.

Reservation of posts : In case ofrecruitment in private sectors,employer is under no legal obligationto reserve any post for any categorywhereas the public sectors arerequired to follow the Presidentialdirectives of reservation of posts forSC, ST, OBC, physically handicapped,ex-servicemen, women etc. So muchso each public sector is required toappoint one of its officers as LiaisonOfficer who would ensureimplementation of various policies,provisions and guidelines ofreservation.


CHINMAY KUMAR PODDERExecutive Director (HR/IR)Neelachal Ispat Nigam Ltd.,Bhubaneswar

The source ofrecruitment in publicsectors areemploymentexchange, openadvertisement,deputation fromother sources,campus promotionfrom within, transferfrom other unit etc.

inPublic Sector

Length of experience required for the post :Every position has a prescribed requirement ofage, experience, qualification. For example, incase of Neelachal Ispat Nigam Ltd. theexperience requirement for an AGM level officeris minimum 14 years which include at least 2years at immediate below level i.e. at SeniorManager level. In case of private sectors they arenot so rigid and adopt a flexible approach.

Filling up vacancies from within or induct atbottom level : Many public sectors are underpressure not to make lateral entry unless suchtalents are not available from within. Forexample, all OIL PSUs induct executives only atbottom level and rarely go for lateral entry.Private Sectors do not face similar kind ofpressure in recruitment.

Flexibility in age : Though both public sectorsand private sectors have an age limit for any post,private sectors apply a very flexible approach butpublic sectors are very rigid both for minimumand maximum age limit, for example, onceagainst the requirement of 45-50 years age limitfor the post of a V.P. (HR) as per theadvertisement I was advised to apply when I wasat 55. But just see in case of a public sector theselection proceeding for appointment of aDirector(Finance) in Schedule A public sectorwas cancelled where it came to notice afterselection that the candidate recommended forthe post is short of few months. The specified agelimit was minimum 45 years.

Flexibility in designation : Designations are

flexible and at times customized/ personalized toattract the talents but in public sectors deviationsare very rare. Once I found an executive who wasa management at Paradeep Phosphates with justone year at that level was selected for a Dy.General Manager level post by a private sectorCement Plant though between Manager and Dy.General Manager there are 2 to 3 levels. In publicsectors they cannot customize designationhowsoever brilliant the candidate may be.

CompensationCompensation administration is another vital

area of HRM. Cpmpensation has a significatnt rolein attracting and attrition of employees. There arenumber of aspects in which public sectors differfrom private sectors.

Annual Increment : Employees in public sectorare placed in a particular grade with an annualincrement. This annual increment is mere anannual ritual in case of public sectors whereas incase of private sectors it is more performancelinked. The annual increment in case ofexecutives are personalized and quite flexibleand there is no uniformity between theexecutives in terms of payment of increment. Incase of private sectors it is also linked tofinancial health and profitability of the companyand not an annual ritual.

Cap in compensation : Today Chairman of ascheduled A public sector organisation is placedin the scale of Rs.80,000 - 1,25,000/- which is thetop most pay scale for a public sector. The post ofcourse entitled to DA, HRA/ accommodation,perquisite allowance, medical facilities, PRP,leave encashment, PF and gratuity. May be at themaximum level the CTC could be 5 to 6 lakhs andannually may be maximum of Rs.70 lakhs. Butsee the private sector. Shri Naveen Jindal as CMDof Jindal Steel gets an annual salary of Rs.73crores. In case of private sectors there is no capin managerial remuneration and hence there isbrain drain from public to private sectors.

ESOP : Employees Stock Option Plans/Employee Incentive Plans (commonly referred toas ESOPs) have been in practice for a long timeand are being increasingly used as acompensation tool by both multinational andIndian companies. The popular reason forimplementing ESOPs are wealth creation foremployees, retention, attracting new talent andinculcating the feeling of employees ownershipto motivate employees while it has been widely



HRM in Public Sector

Compensation administration is another vital area of HRM. Cpmpensation has asignificatnt role in attracting and attrition of employees.

influenced in private sector companiespredominantly IT, ITEs, Pharmaceutical and fewmanufacturing companies. It is yet to take off inpublic sector organisation through revised wagerevision guidelines applicable to central publicsector which provides 10 to 15% payment ofperformance related pay as ESOPs. NALCOwhich was to implement ESOPs as first publicsector has not yet implemented so far.

Training Each public sector is required to sign an MoU

with its administrative ministry which interaliacovers the training of personnel. Each public sectoris committed to comply agreed no. of trainingmandays for its employees which is evaluated by theadministrative ministry whereas there is no suchrequirement in private sector. While in public sectorthe focus is to achieve the target of trainingmandays, in private sector it is absolutely needbased and capacity building.

Organisational commitment andretention of employees

Organisation commitment seems to be higher forpublic sector organisation as compared to publicsector organisation. It seems due to factors like jobsecurity and status employees exhibit higher level ofcommitment in public sector organisation. Publicsector organisation provides higher level ofperceived job security and there is a well definedsystem to hire and retrench employees from theorganisation. Govt. organisation provide higherlevel of security - the psychological make up ofemployees in India is still valid. On the other handprivate sector organisation are not able to providethis kind of psychological security to employees. Asa result employees always feel insecure about theirjob status and are in more of chasing the job wherethere will be an appropriate time. Even where theyshow commitment, it is pseudo commitment in thatorganisation. Attrition rate in private sector ishigher than the public sector. HR's challenge asregards attrition rate is less vis-à-vis private sector.But in private sector HR enjoys autonomy andflexibility of retaining a good performer throughpromotion to next level, quantum jump incompensation etc. which is not available in case ofpublic sector. Hence certain advantage gets nullifiedby other disadvantages.

PromotionPromotion in the public sectors are linked to

eligibility period, vacancy besides seniority andperformance while in case of private sector growthand compensation are absolutely linked tocontribution and performances.

Performance AppraisalIn public sector appraisal of employees

performance is an annual exercise. DPE guidelinesprovide that appraisal of employees be made in such

a manner that when plotted it would present a bellshaped curve meaning thereby not less than 15%employees be rated below average and not more than10 to 15% employees to be rated outstanding. Theappraisal is predominantly used for promotion andidentification of training needs. While in case ofprivate sectors its uses is for wider purposes. Meritincrements are considered based on appraisal apartfrom prior promotion and new assignments.

Rewards and recognitionFor performers there are number of rewards and

recognition apart from merit increment and fastergrowth. In case of public sector neither out of turnpromotion nor merit increments are in practice. Therewards and recognition in private sector are in theform of family excursion in India and abroad atcompany expenses, lumpsum cash award, fastergrowth recognition as employee of the month,employees of the year etc.

Retirement ageThe retirement age of employees in public

sectors is between 58 - 60. In rare cases employeesare given extension for some more time. Privatesectors do provide similar retirement age. But inpractice many employees are allowed to continue aslong as health permits and carry regulardesignation; for example, a friend of mine is aV.P.(HR) in a Kolkata based Pharmaceuticalcompany even at 66. In fact many private sectors areresorting to large scale recruitment of retiredpublic sector executives as experienced hands arereadily available at cheaper compensation.

Separation of employeesWhile private sector as far as managerial

personnel are concerned are free to hire & fire, it islittle cumbersome in case of public sector as notonly the procedure is lengthy and time taking theemployees enjoy constitutional protection againstseparation.

Interface with constitutionalmachineries

HR managers in public sectors besides facingscrutiny by number of parliamentary/ legislativecommittees like committee on public sectorundertakings, committee on implementation ofofficial language, parliamentary committee onreservation policies etc. they have also to attend tonumber of questions by legislative bodies likeAssembly and Parliament which are not there in thecase of private sector. Many of the questions are tobe addressed by definite time frame.

From above it can be seen that there aresignificant differences and in a way HRManagement in public sector is a different ballgame. Private sectors do enjoy certain advantage interms of hiring and compensation management butdespite many positive aspects there are brain drainfrom private sector to public sector.


HRM in Public Sector

BM


In all sectors, the profile ofemployees is undergoing changes.The number of younger generation

is increasing and likely to besignificant in number by 2020.

Hence in order to prepare for thethe future scenario, we need tounderstand their profile.1. They are better educated : Being

second or even third generationemployees ,majority of the skilledand semi-skilled employees todayare diploma holders or ITI passed.In some cases they are evendegree holders (Part-timequalified).

2. Independent thinkers :Theywatch TV and read news papersevery day, and they formopinions all matters especially onmatters impacting them. Unliketheir predecessor employees,they do not get carried away byspeeches of Political leaders orunion leaders affiliated to variouspolitical parties but exercise

independent thinking.3. They question every thing and

accept only when they are fullyconvinced.

4. They do not hesitate to expresstheir opinions. Being confidentand clear in their thinking, theyopenly articulate their opinionsespecially on matters pertainingto them.

6. They are ambitious: ask any ofthem whether they would like toretire as workers/employees andmajority of them would say 'No'.Constant exposure to TV andNewspaper advertisementscreates a desire in them tocontinuously improve theirstandard of living with higherearnings in the minds of of themand their family members.

7. They respect only knowledge andnot hierarchical positions.

8. Being knowledge workers ,knowwhere profits are made and itsimpact on their salaries etc..

9. They are well networkedamongst themselves and evenacross nearby companies andsome of them are on Face Booktoo.

10. They are net savvy and some ofthem have computers at home oraccess the net at web centers.With increasing penetration ofnet in to even remote areas, theyhave good access to the internet.

11. They are transparent and expectHR also to be transparent.

12. They seek instant gratificationand do not have patience forprotracted negotiations unliketheir earlier generationemployees.

13.Their charter of demands will bedifferent and it will be based onresearch and facts thanemotional.

14. The bargaining will change gearsfrom collective bargaining modeto individual level. There may beeven job changes among skilledcategory of employees due todemand and supply gaps.

If these are somedimensions of futureworkforce, what are itsimplications for HR?1. HR needs to learn to handle

future employees on logic andfacts. Most of to-day's HR knowshow to read a balance sheet andinterpret. If they do not know,they need to acquire thiscompetence.

2. HR has to be more transparent inpolicy formulation andimplementation.

3. HR is respected by knowledgeand professional competenceand not by their position. Hencethey need to enhance itcontinuously.

4. The new employee may slowlystop "slogan -shouting" oppositeto gate but may become activeon the net. Being net-savvy, theymay float viral message againstmanagement or management'sactions, the moment they feelthat any injustice is done to them.

5. The Employee's point of actionwon't be at the traditional unionoffice but will be a virtual office inany of the social networking sites.The active member in thenetworking site become unionleader and thus the union officewill operate from the air, even inclouds…….

When such a thing happens, HRcannot depend on the traditionalintelligence gathering mechanismsbut should learn to gather from theair…


Dr. PVR MurthyFounder Director,

Exclusive Search Recruitment Consultants

Union Office in the Air

HR needs to learnto handle future

employees on logicand facts. HR

cannot depend onthe traditional

intelligencegathering

mechanisms butshould learn togather from the

air…

BM


Mfg. Organisations specially inauto sector all have taken a hit inproduction due to labour unrestand strikes. Each case ofindustrial unrest and evenviolence is unique, it has ademand desired to be fulfilled bythe parties, along with a historyand profile of the twoconstituents, i.e., management,

employees / trade unions.Thereis a need for the twoconstituents, i.e., managementand trade union to build arelationship of trust with eachother, so that the issues involvedcan be discussed and resolvedand even if there are unresolvedissues the parties agree todisagree and move forward.

During the last five years or so several incidents ofunprecedented breakdown of industrial relations(IR) have been witnessed in India. Some five ofthese, which can be labelled as the worst suchcases, involved lunatic behaviour by the worker

groups of killing the CEO or the HR manager concerned.But still more surprisingly, it is alarming to witness thatemployee relations violence, which led to death of two youngmen in Gurgaon on 5th October 2013, is gettingextended to the call-centre industryas well, which does not evenhave any trade unionhistory so far. Perhapsnever before theIR violence ofthis type andmagnitude wasvisible, even asthe numbers ofindustrialdisputes and theemployeesinvolved inthem interms of man-days lost havesubstantiallydeclined duringthe lasttwo decades.This is so due to avariety of factorsrelated to theimplementationof theglobalisation



Hence it becomes important toemphasise on building sound,harmonious and productive IR,which is far more critical than anymanufacturing and technologyprocesses. It requires veryconscious and mindful efforts bymanagement and workforce totransform themselves andchange mindsets.

Employee Relations

The emergingdynamics...DEBI S. SAINI

Professor & ChairpersonHRM Area at Management Development Institute, Gurgaonand member of the Committee on Industrial Relations, CII, Gurgaon

philosophy globally. Those expected to play the roleof the custodians of industrial peace have hadsleepless nights thinking of the possibility of a flareup of the type of the Maruti-Suzuki incident (July,2012), for example, in their own organization.

It is ironical that most CEOs and the HR chiefslook at the issues involved in these eruptions aspiecemeal; they treat the symptoms of industrialunrest as the causes of IR breakdown and often donot make any scientific analysis of the causality ofthese new symptoms. Any wrong diagnosistherefore, is bound to lead to wrong prescriptions forthe treatment of the disease, without touching thefundamentals of the problem. Among the MNCs,especially Japanese companies have shown lesscross-cultural sagacity in managing their ERscenes; they are known to be more ethno-centric,appointing the Japanese expatriates as their topmanagers and CEO in their foreign localesincluding India, with their belief in the supremacyof the Japanese work practices. Interestingly, someisolated change is now visible; Mitsubishi in Indiahas recently appointed an Indian CEO, perhaps tomanage its cross-cultural balance moreefficaciously.

Companies need to comprehensively understandthe changes that are taking place in themanagement of collective andindividual IR

i s s u e sglobally. Many of the

global as well as local managementissues including IR practices have been

converging all over including in the emergingeconomies, through the multinational companies'(MNCs) route. The typical adversarial approachenvisaged in the classical Oxford School of IR isgiving way to the neo-pluralist (or cooperativeunionism) IR due to the changing attitude ofemployers who expect greater degree oforganizational and labour flexibility so as to remaincompetitive in the chaotic product market. At thesame time, a vast non-union sector is emerging forvariegated reasons including the practice of union-substitution strategies by companies leading tounitarist (non-union) IR. Due to the emergence of alarge section of non-unionized employees in thelabour market, employee relations (ER) has emergedas a more popular term, which reflects more of anindividualized bipartite than a collectivist tripartitesituation as envisaged in IR. ER is being seen asconcerning itself with "… how to gain people'scommitment to the achievement of anorganisation's business goals and objectives in anumber of different situations" or a system ofmanaging relationships through HR practices andinterventions for promoting employee commitment.

Some of the critical elements of cooperative ER arecommunication, psychological contract (unwrittenconnect between the employee contribution andemployer's promise in return), employee care,empowerment & involvement, and giving just & fairtreatment to employees. In the western countries,empowerment has been viewed as "the elixir of the1990s" and beyond, and a key focus area of the newHR thinking. These are seen as necessary pre-conditions for promoting high employeecommitment through cooperative ER, as also forpromoting neo-pluralist IR reflecting union-management partnerships for commonality oforganizational vision and goals.

Unfortunately, most Indian employers have notread these writings on the wall. They often wish topursue unitarist ER strategies, but withoutattending to the pre-conditions for building suchrelationships. One of my recent researches hasrevealed that the main reason of the employeediscontent today is the changing nature of theworkforce, which is young, talented, educated, moredemanding for career opportunities andreward as compared to theolder generation

of theworkforce. Their general

level of expectations from theiremployers is also higher; they are less likely to

tolerate bad working conditions. These Gen Yworkers are more internet savvy and betterconnected with their peers in other locales. Theyreact more aggressively if they perceive the practiceof poor people-centricity and greater task-centricityby managers, and violation or denial of theirindividual or/and collective rights at the workplace,despite a lower propensity to join trade unions. Yetthe employers often take such workers for granted,not grasping their mind set fully.

These have been the key reasons for the sporadicincidents of the above-mentioned extremely violentworker behaviour. After the disastrous violence, theemployer attempts to indulge in reactive fire-fighting. That is analogous to learning lessons ingeology and seismology too late after theearthquake has destroyed the building completely.

It is well-known that employers who aremanaging their organizations on yester years'realities are obliterating into archives. On the otherhand, there are others who have done commendablework in this regard without squandering awayunmerited perquisites to employees that are notpermitted by their financial capacity. However, theyare taking good care of the psychological and dignityneeds of their employees. My recent research revealsthat a number of firms (mostly newly formed private


With recent cases of IR breakdowns, it has become imperative for organizations to

understand the changes that are taking place in the management of collective and

individual IR issues. The need to adopt a softer, more flexible, and proactive, faster-

resolution oriented approach in managing ER issues has to form the key part of an

overall people-management philosophy.

INDUSTRIAL RELATIONS : ARE WE TRANSFORMING

firms, MNCs and joint ventures) are deployingstrategic HR techniques so as to proactively detectemployee dissatisfaction. In the manufacturingsector, some of the employers who have done good orgreat in building requisite conditions for cooperativeER, among others, include, Hindustan Unilever Ltd.,Tata group of companies and especially Tata Steel,Mahindra & Mahindra group, Hero MotoCorp,Sapient and Asian Paints. These companies havebeen pursuing employee engagement policies quiteprofessionally for building employee cooperation.The example of Classic Stripes Ltd., an SME,operating in its three campuses at Haridwar, Vasaiand Mumbai, is noteworthy. It employs less than 500workers in all, has a motto of "dignity at work," has arelationship committee which meets every fortnightto discuss and resolve grievances if any, has createdconducive ambiance for managing the diversity ofwomen and physically-challenged employees, andhas won the prestigious SIGA international awardsfor safety, environment-orientation and quality. Thecompany does not have a trade union, and itsemployees' genuine respect for the company has ledto it consistently getting one or the other top ten slots

in the best employer company survey in India almostevery year, leaving behind many MNCs includingthose in the software industry. This is a wonderfulexample of building proactive ER climate throughemployee care, carrying lessons that cooperative ERcan be promoted in any sector and type oforganization, if there is a will.

It is important that in order to promote better ER,companies focus themselves on understanding theaspirations of the new, Gen Y worker who aims athigher professional goals for himself and has adoptedindividualistic values. In this regard, employers needto give particular attention to grievance resolution,meaningful communication, nurturing relationshipsthrough employee care, and building organizationalculture as aspects of cooperative ER. The front-linemanagers' attitude towards the workers has a directbearing on the workers' perception of fairness andjustice in the organization. Therefore, they should berecruited after careful testing of attitudes andemotional intelligence; and they should be competentin soft skills, employee care and grievancemanagement-all these should be part of the largercause of organizational culture-building. The globaldownturn during the last few years too has put costpressures on employers. Often, especially their less-competent managers press the panic button too soonand more often while managing organizationalperformance, not knowing its impact on theemployee psyche. But the adoption oftransformational leadership through "employee firstand customer second," philosophy has taken the HCLTechnologies to 20 per cent increased profitability

and 40 per cent increase in employee satisfactionduring the downturn. So formidable is the power ofpracticing transparency and employee care andinvolvement.

One may also blame the archaic portions ofIndian labour laws, especially Chapter V-B of theIndustrial Disputes Act, 1947 (IDA) as the villain ofthe peace, which necessitates government'spermission for every case of retrenchment, lay-off,and closure by any factory, plantation and mine thatemploys 100 or more workers. This has led toemployers choosing to employ less number of coreand more of contract workers. The latter are paidfar less than what the core workers doing almostsimilar work in the same plant are paid. The legalfiction of the contractor being a separate employerwithin the same premises enhances the perceptionof unjust feeling among contract workers, who werethe key-conspirators in the case of the Maruti-Suzuki fiasco. The Contract Labour (Regulation &Abolition) Central Rules envisage payment of samewages to contract workers when they are doingsame or similar work as is done by the core workers.

But this Rule is observed in its totalviolation, leading to the

possibility of the ER situationbecoming still moreexplosive. The trade unions'rigid attitude to the fate ofchapter V-B of the IDA has

allowed this part of the IDA toremain on the statute book thus

far, despite the July 1991 economicpolicy declaration making a clear case for labourlaw reform, so as to be in consonance with thechallenges of the new times. Any governmentshowing the courage to reform this provision wouldneed substantial majority in Parliament, whichappears to be unlikely in the present scenario. Theemployer will have to learn to live with thissituation till then, and think of alternative andmore systemic ways to confront industrial unrest.

It is also evident that the governments and labourdepartments in most states have ceased to beeffective as institutional actors in labour disputesresolution in the globalization scenario. The tradeunions are struggling with their own crises and arenot able to mitigate the problems faced by theworkers, partly due to the employers' role of thedominant but unwilling institutional actor in ER. Ifemployers do not perform this role well, theythemselves may have to pay a heavy price, like it hasbeen so in these cases of disruptive employeebehaviour. They would need to adopt a morestrategic role that would align their peoplemanagement approaches to the vision and goals ofthe organization concerned. That would necessitatetheir re-orientation to the new ER dynamics, and theconsequent transformational change in theirattitude towards handling the issues in the newercontext. They also need to adopt a softer, moreflexible, proactive, and faster-resolution orientedapproach to managing ER issues so as to becomepart of the organizational overall people-management philosophy. Otherwise, we can foreseestill darker days ahead on our ER front!



After the disastrous violence, the employer attempts toindulge in reactive fire-fighting. That is analogous to

learning lessons in geology and seismology too late afterthe earthquake has destroyed the building completely.

BM


The last two decades, witnessedrapid change in the socio-economic fabric of thecountry as a result of whichthere have been visible

changes in every sector. Themanufacturing industries and theservice sector have grown phenomenally,attracting huge domestic as well ForeignDirect Investments. With suchphenomenal growth, the job-market andemployment levels also have grownproviding the much-needed occupationfor the teaming millions of the qualifiedyouth of the country. In the context ofsignificant all-round growth, we need tointrospect whether we are transformingin certain critical areas. Anytransformation to make sense and to bemeaningful must be for the better. If weapply this question to the IndustrialRelations climate as well asopportunities for its improvement, wewill be flooded with different shades ofviews and opinion, some of which maywell border the extreme ends of the

spectrum! In order to analyze thisquestion deeper, we need to assess theinteracting forces: (i) the governmentthat provides the legal framework for theother players to operate in; (ii) theemployers, who provide the neededinvestments and management toleverage the liberalized economicpolicies of the Government; (iii) theworkforce - the important pillar of alleconomic endeavors; (iv) the consumers,who derive the benefits of the economicengine that has picked up speed and isoffering greater competition to satiatetheir need for better products andservices; (v) the society at large, whichstands to gain in tangible and intangibleforms through the Tax revenues createdby economic growth.

It would be necessary to focus on theprocess of transformation itself,without going into elaborate argumentsand counter-arguments about thecontributions, capabilities andwillingness of each of these sets ofstakeholders.


Trade unions and theirleaders will continue tomake a formidableeffort to keep thedivide between theemployers and theiremployees alive andactive. Only a few ofthese leaders try to bean effective bridgebetween theemployers andemployees.

TheChangingShades of IR


Any transformation to make sense andto be meaningful must be for the better.However, the onus of driving anytransformational change rests squarelyon the employers and the employees…..

E.I. RAVINDRANATH

Director, Corp.-Biz Solutions, Vellore

The legal framework, in spite of the changes inthe economic policies of the government, haslargely remained static. In an era of coalitionpolitics, and vote-bank strategies, it is notreasonable to expect breakthrough changes inLabour Laws. Undoubtedly there is a world ofopportunities for rationalizing the Labour Laws andto make them vibrant, responsive and relevant tothe context of rapid industrialization. However thisis not easy to come by.

Employers come with different shades ofcompulsions, beliefs, competencies and capabilities.Many of the Multinational companies are used to anentirely different way of managing their businesses.However, at the end of the day the 'show must go on'.Therefore, substantial part of the onus oftransformation rests with the Employers. As wekeenly tract the events in Industrial Relations, thetransformational efforts by the Employers, havegrown in the last two decades. The compellingnecessities for change towards the better areperhaps best realized by the Employers themselves.Yet, there are opportunities for furthering this causeby enlightened cooperation and by introducing self-regulating mechanisms to encourage fairness,justice and principled-management strategies,without being short-sighted about certain otherbusiness compulsions and exigencies.

The workforce is vastly different now than itused to be a couple of decades ago. The average ageof the Indian workforce is admittedly very low. Theyare better informed, better qualified, and come withenergy and motivation to succeed in their careers,even if the opportunities take them far away fromtheir native places. They are willing learners; theyadopt themselves to newer situations both in termsof cultural adjustments as well as technologicaldemands. They are relatively less aggressive interms of ideological pursuits, though they arewilling to make sacrifices for a common cause forthe improvement of the well-being of the entire lotof the workforce in a given organization or anindustry.

However, there is a significant change in theirmind set and their aspirations are growing in leapsand bounds. Over the period of next 10 years, thisworkforce would have grown further. A vastmajority of them would naturally become older andhave greater economic demands to be met at homeand in their social front. Therefore, pressures togarner a larger pie of the economic growth wouldalso increase and will become the order of the day.To this extent the challenges that the managementmay have to face may become more complex andexasperating. Trade unions and their leaders willcontinue to make a formidable effort to keep thedivide between the employers and their employeesalive and active. Only a few of these leaders try to bean effective bridge between the employers andemployees.

Consumers, as a collective force, are reaping thebenefits of the rapid industrialization and theeconomic growth. In fact they are the very purposeand beneficiaries of the rapid growth and

increasing prosperity. The consumers have becomebetter informed, more discerning and extremelydemanding. It is this force that would help bringabout any transformation at all in the IR climate inevery industry and in the larger context, the wholeof India!

The society, as the highest beneficiary and thebenefactor of the economic growth, would largelyremain neutral to the happenings in the industriesand the service sectors. Like the politicalestablishment, the society is deeply divided and isunlikely to respond with any degree of cohesion andcollectivity to enforce their will and wisdom inshaping the industrial climate and improvingharmony between employers and their employees.

Yes, we are transforming!Most professionals can perceive clearly the

transition and transformation - from irreconcilableconfrontations, to a stage of being faced withresolvable disputes. Recent events in the industrialrelations front, supported by vast amount of reliablemeta-data on disputes, strikes, lockouts, man-days-lost, violence, and work-stoppages, clearly indicatediscernable transformation in industrial relationsacross the country, for the better. However, it is by nomeans significant enough to make an impact in thenear future. The fact that there has been reductionin the number of man-days lost due to disputes onthe national level, is no consolation for a particularorganization or an industry that is facing seriousdisputes, strikes and lockout. We need to recognizethe fact that things may worsen anytime, more so inthe context of electoral politics and populistmeasures promised by the diverse political parties.

Therefore, the onus of responsibility to drive anytransformational change rests squarely on theemployers and the employees.

ConclusionWith the growing opportunities for learning,

consolidating and collaborating, employers andtheir collective bodies, need to put in their jointefforts for sustainable industrial peace, harmonyand create reliable climate by improving the safety,health and the economic-lot of the workforce. It isneedless to emphasis that an improved IR climate could make managing an organizationeasier and thus help improve the overall business performance. We do see occasionaldemonstration of firmness coupled with fairness.This is a significant requirement. One could alsowitness that the thin line between need and greedvanishes, and questionable motives form the basisfor strategies.

Holistic and purposeful transformational drive,which is promoted actively by industry bodies, canlead to significant gains for all the stakeholders. Toleave it to the government to take up this delicateresponsibility may be asking for too much. The timehas come now to pursue it vigorously and to makeconcerted efforts to create a better world for everyone by bringing in a climate of harmony, certainty,peace and uninterrupted economic pursuits.




BM

There was a Pilot flying aHelicopter. He realized someproblem in the engine, beforethe chopper would crash, hefixed his parachute and

jumped out of the chopper to save hislife. It was a cold winter night. Theparachute landed over the top of thetree. As it was dark he decided to stay onthe tree top. At dawn he saw a manpassing below the tree. He asked him, "can you tell me, where am I?" The manlooked up and said, " You are on the topof the tree", Pilot was puzzled, than heasked, "are you a teacher?" The man wassurprised and said, " Yes, but how do youknow". Pilot, "because what you say isRight, but not of any use to me."

The same is true of IR managers,what they keep on saying to unionleaders is right but not of any use tothem. The mutually beneficial solutionsare the key to success. Many a timesthings do not move forward because oflack of trust which exists between boththe parties. Both keep on saying to each

other, you do this first, then I will dothat, and nothing moves forward. Manya times a constructive dialogue nevertakes place as both the parties keep onblaming each other for the mistakes ofthe past. We need to look forward, takethe risk of trusting each other andsomebody has to take the first step. Theissue is what if the first step dwindlesand the other party breaks the trustagain. Then what? Take the second step,another risk of trusting, hopefully itwill not keep on failing again and again.The day it happens, the foundation ofstrong union-management relationshipis laid.

The mutual trust and cooperationbetween employees and management isthe core to industrial peace. When thetrust exists, all problems are mutuallyexplorable and the solutions becomevisible.

Unions are representatives of theworkers. Treating them with respect aspartners in progress and taking themalong in achieving the goal of the


Anunpredictabledomain

Belive in change, but also be sensitive tothe needs of the people. Your credibilityis your biggest strength in developingcordial industrial relations.

HARBHAJAN SINGH

Vice President, General and Corp. affairsHonda Motorcycle & Scooters India Ltd., Gurgaon

The mutual trust andcooperation betweenemployees andmanagement is thecore to industrialpeace.When the trustexists, all problems aremutually explorableand the solutionsbecome visible.


organization makes the journey easier andmeaningful. Workers believe union more than themanagement. In fact the formation of unionhappens only when the loss of trust takes placebetween the employees and the management andgrievances are not heard and resolved.

Organisations employ people to deliver someresult through their role. The level may be at thepeak or at the bottom. What needs to be understoodis the importance of one and all roles in theorganization. No position is insignificant. It isimportant that right cultural set up is created tomake everybody comfortable. How people relate tothe organization for which they are working for?What feelings do their roles trigger in their minds?Do their designations create a social respect, are

their compensations and benefits adequate to takecare of their needs? How do they perceive thepolicies of the organization- fair or unfair? What istheir image of career path over the years? How dothey connect with their seniors & peers? How thegrievances are handled? If these issues areaddressed and taken care of by HR/IR managers,the possibility of IR breakdown would beminimized, but cannot be totally eliminated.

Why IR risk cannot be totally eliminated? GreekPhilosper Aristotle said, " man is a social animal".But time has proved again and again that man in notonly a social but also a political animal whose needscan be satisfied for a given time frame only, buteventually greed always prevails over the needs. Allrelationships stand on the cornerstone of selfinterest and pride. As long as the role extends asense of pride in doing what we are doing, and the

compensation takes care of most of our needs, wetend to remain motivated. As the time passes, theneed for novelty arises and what we don’t have,starts attracting us in relation to what we have.

Keeping in view the above cycle of humannature, it is futile to dream that IR problems can beeliminated for once and all. It is a cycle withdifferent phases of existence connectivity oforganizations to people prevailing in the system.Now a days the external political factors havestarted playing a major role in the labour issues.The militancy has increased in the internaldealings. There are no set prescriptions for allsituations. All HR/IR Managers need to keep theirears to the ground and take appropriate actions atright time. Else seemingly small problems will

become majorindustrial relationissues.

The power of theunion comes from itsstrength to createnuisance and curbnuisance. As long asthey create nuisancewhich organizations donot appreciate even if attimes their causes areright, we term them asnegative and when aphase comes, the trustgets created betweenunion and managementand they startcooperating with themanagement to curbnuisance of thenegative elements inthe workforce, we startterming them aspositive and theybecome very powerfulchannels ofcommunication andchange whichotherwise would havebeen very difficult to

achieve. Understanding the socio-political needs ofthe union, grooming them to play positive role in theexistence and growth of the organization,maintaining a respectable distance with them andallowing them their space and not make themappear as arm of the management in the eyes of theworkforce whom they represent is important forlong term peace and mutually beneficial coexistence.

Belive in change, but also be sensitive to theneeds of the people. Like the relationship of parentand child, view and feel the same of managementand union, even if the child gets spoiled, we don'tthrow it out of the family but try to correct themwith love and patience. Your credibility is yourbiggest strength in developing cordial industrialrelations.




BM

When I started my corporate career in1970 in Mumbai, I recollect incidentsof industrial violence taking place incertain enterprises in Mumbai, Puneand Nasik industrial belt due to

interunion rivalry for recognition or when themanagement failed to reach a settlement / agree tothe wage increase demands of the workmen madeby the unions led by certain militant trade unionleaders in the 1960's, 1970's 1980's. During theseperiods, many executives of enterprises in WestBengal, and some other states also experiencedGherao's, which was another approach ofintimidation and pressure tactics in IndustrialRelations.

However, the 1990's and 2000's in the country sawa decline of violence and militancy after the new

economic policy of 1991, when most enterprises bothin manufacturing and service sector reduced theirpermanent workforce covered under the IndustrialDisputes Act,1947 through Voluntary RetirementSchemes (VRS). It is true that 2010's is once againwitnessing industrial violence and militancy incertain parts of the country. Presently anyindustrial violence occurrences' get flashed onelectronic media immediately as "news" coverage ofthe incident, and there is limited coverage on theanalysis. Each of these occurrences has two sidesand a history of earlier actions that leads to the finalincident. The killing of Awinash Kumar Dev,General Manager (HR) of Maruti Suzuki India Ltdin August 2012 is not the only incident of violence inthis country, though this incident has generated a lotof debate not only in the personnel professional


In this new business environment,there is a need for employerorganizations, trade unions and theGovernment to jointly work andensure that violence in any form iscondemned, avoided and the guiltypunished. This article exploresmore in to the transformingindustrial relations scenario.

TheChangingWorld ofIndustrialRelations

DR. RAJEN MEHROTRA

President, Industrial Relations Institute of India (IRII),Former Sr. Specialist on Employers' Activities for South,(ILO), Mumbai


fraternity but also in other professions. There wereother incidents also in the last three years, wherelives have been lost.

An analysis of cases where industrial violenceoccurred will indicate that these could be because ofinterunion rivalry, certain union desiring to be thesole bargaining agent, non recognition of tradeunion, contract workers desiring permanent jobswith the principal employer, large wage and benefitsdisparity between contract workers and permanentworkers, ineffective neutralization of inflation,harsh working conditions, wage freeze , frustrationof no signs of settlement in a long drawn out strike,demand for reinstatement of dismissed workmen /union leaders, demand for wage increase whichmanagement not agreeable to give / concede, vestedinterest of contractors / service providers not to bereplaced, local political interests, local mafiainterest , militant external / internal trade unionleaders .

Each case of industrial violence is unique, it hasa demand desired to be fulfilled by the parties, alongwith a history and profile of the two constituents,i.e., management, employees / trade unions. Thereis a need for the two constituents, i.e., managementand trade union to build a relationship of trust witheach other, so that the issues involved can bediscussed and resolved and even if there areunresolved issues the parties agree to disagree andmove forward.

These last three years incidents of violence haveshaken the top management of many organizations,who have started reviewing their policies of dealingwith the work force covered by the IndustrialDisputes Act. I do see a trend towardstransformation by certain managements. I havepersonally known of some enterprises, who havetaken a conscious decision to educate all theirmanagement staff on Industrial Relations, and howto effectively deal with the trade union leaders,company workers and also contract workers.

Steps taken by enterprises to deal with thetrade union leaders, company workers and alsocontract workers:

Developed an efficient and credible grievanceredressal mechanism and institutionalized the

same,Developed training programmes for educating allworkers,Organized joint programmes of managementstaff and internal union leaders,Daily morning assembly, daily morning prayer,Gate meeting on occasions ,Open house meeting every month of all theworkers ,Employee &/or employee's family participationin contest on various themes,Portal for employees including workers to posttheir views on various topics and interact amongthem and also with top management (Limited tosome large enterprises in public sector andprivate sector that have set up kiosks in thefactories),Interactive web telecast on occasions forreaching out to employees and their family toparticipate and ask questions (Limited to somelarge enterprises in public sector and privatesector who),All employees to be members of one of the fourhouses / colour like the concept in boardingschool,Sports / cultural activities for all employeesincluding workers,Fellowship dinner meet of employees at periodicintervals,Speed in settling the long-term settlement,Reviewing the contract workers and having newpolicies for them, such as, wages higher than theminimum wage, giving additional wage when thewages of permanent workers is revised, andscheme for absorption based on qualifying inteats.

There is a need for employer organizations, tradeunions and Government to jointly work and ensurethat violence in any form is condemned avoided andthe guilty punished. At the same time all thetripartite constituents need to also see each other'spoint of view and resolve the differences throughdialogue in the interest of the nation, employees andthe enterprise.



Last three years incidents of violence haveshaken the top management of many

organizations, who have started reviewingtheir policies of dealing with the work forcecovered by the Industrial Disputes Act. I do

see a trend towards transformation bycertain managements.

BM


BM:What have organizations learnt from the recent past labour unrest incidents?

MD: The basic lessons learnt by organizations in the recent past has been to ensurethat mere Labour Law compliances is not adequate to ensure harmonious labourrelations; the HR team is expected to effectively reach out to the workforce viz.permanent, and contract labour engaged on their premises. Hence, a critical lessonlearnt is that all workmen/employees on the employer's premises need to beensured decent wages, working conditions, with work-life balance routine. Thetrend of exploiting contract labour, in whatsoever manner, will not be acceptedeither by the workmen or by the Trade Unions. This is an important lesson learntfrom the recent past labour unrest incidents.

BM: Where are organizations heading and how much have theytravelled towards peaceful IR?

MD: Regrettably,all organizations have not fully understood the mechanism of evolvingharmonious employer-employee relations. Hence,organizations who continue with oldpractices and methods with regard to working relations continue to face seriousdifficulties with their workforce. Over a period of time,a large number of organizations


Road toPeaceful

IR

Business Managerin conversation withMichael Dias,Labour Law Expert,Delhi on IndustrialRelations and sharesa few key learningsfor organizations tobetter manage theirworkforce in thisdynamic businessenvironment.

MICHAEL DIAS

Labour Law Expert,Advocate, New Delhi


have appreciated,understood and valued a peacefulindustrial relations environment,consequently,have walkedthose extra miles to ensure the benefits of a peaceful IRenvironment in their respective organizations. It should beclearly understood that there is no magic wand available,that the waiving of which brings in a peaceful IR scenario atthe workplace. Whereas,the HR team is perforce requiredon a daily basis to work to achieve that end of peaceful IR intheir Establishment,which is based on a combination ofseveral factors,amongst others,decent wages,workingconditions,empowerment,compassion,communication,understanding of the needs and requirements of theworkforce,based on economic imperatives, impacting theemployees. To illustrate, issues relating to canteen,transportation, leaves,holidays,are key and criticalingredients to ensure peaceful IR at the workplace. It is notmerely the statutory requirements but the mechanism andmethodology in implementing these critical dimensions atthe workplace.

BM: Can the present economic downturn trigger an IR crisis?

MD: The current economic downturn has alreadytriggered serious IR crisis. A large number ofestablishments are unable to provide regular work totheir employees due to the economic downturn. Further,inflation has seriously impacted the employees. Thepro-active measures to be taken in this regard, is toeffectively communicate with the employees with regardto the economic health of the organization includingorder book status and other imperatives. We have, incurrent times, resorted to reduction in wages withsimultaneous reduction in working hours. We havearrived at arrangements for employees to avail of theirleaves, thereby ensuring that production is met by alesser number of employees strictly as per marketrequirements. Several other pro-active measures havebeen taken that are industry specific to cope up with theeconomic downturn.

BM: Are archaic Labour Laws only responsible for IR breakdowns in last few years?

MD: It would be unfair to say that only archaic Labour Lawsare responsible for IR breakdowns,but the fact is that,whilewe live in the 21st century,our Labour Laws were conceivedin the early 20th century. The work dynamics and ethos areentirely different. The aspirations and needs have changeddramatically. The statutory requirements,as also theapplicability and interpretation of Labour Laws haschanged,most particularly,ever since India embarked uponthe goal of liberalization, privatization and globalizationof our economy under the leadership of Dr.ManmohanSingh as the Finance Minister in the late 20th century. Weare in the second decade of the 21st century whereas theLabour Laws existing are totally irrelevant to ensure qualityproduction,productivity,performance,discipline and thelike. We need to ensure that our Labour Laws are in tunewith the international market needs. Today,the employee isnot at the centre of the law. It is the customer and consumerwho is king and determines the future of the industry andthat of the employee. Hence,Labour Laws urgently requireto be made relevant to our times.



BM: How is the hire and fire (flexibility)policy/laws/rights promote and generateemployment?

MD: Flexibility is a market requirement. The employer has norole to determine the market conditions of supply and demand.In fact, government policies, to a great extent, determine themarket, and consequently, the employee-employer relations. Insuch a scenario, rigid laws only inhibit growth of the industry,and consequently, generate a larger employment potential.One important requisite in today's time is a flexible labourpolicy that permits the employer to engage and disengageemployees, based on market needs and requirements. Thebelief that once employed, always employed in theorganization, is no longer either true or relevant.

BM: What kind of reforms should be introduced in theEmployment Laws? How can industrial harmony,productivity and growth be achieved through suchmeasures?

MD: The reforms to be made in Employment Laws should bemarket friendly, keeping in view the needs of the economy andindustry.The law should be fair and equitable to all stakeholders.In fact, the role of the government should be substantiallyreduced - our experience with Inspector Raj, courtesy the labourdepartment, has proved to be counter-productive as neither theemployee nor the employer benefits but the Inspectoratethreatens coercive action, thereby makes the employercompliant to his demands. This scenario cannot continue. It istime that self-certification should be the way forward. However,as and when an employee has a specific allegation or claim, thesame needs to be independently investigated after giving theemployer a fair opportunity of a hearing in the matter. Asregards industrial harmony, productivity and growth areconcerned; they can be achieved through policies that promotemutual cooperation between stakeholders. Today's youth whoare joining the workforce are not only dedicated but realisticallyunderstand the challenges faced by industry. Consequently, aforum where dialogue and discussion are held will go a longway in achieving our national objectives.

BM: Are trade unions discharging theirresponsibilities in developing industrial harmony?What should be their role in changing the businessenvironment?

MD: Trade unions, since independence, have been misunderstoodby employers. Regrettably, trade unions have themselves notdone much to improve their image either in society or amongstthe employer community. Based on my own experience, there area wide variety of trade unions, some good, others very good butquite a few are rotten; it is this small community of rotten tradeunion leaders and their organizations that brings a bad name toall trade unions in the country. My own experience has been thattrade unions can play a pivotal role in harmonizing industrialrelations at the workplace. They fully understand the dynamicsprevailing both inside the establishment and outside; they needto harness their energy to create a positive, pro-active employee-employer relation in the organization. In this regard, the tradeunions need to take the initiative so that the businessenvironment in the country improves.


BM

Industrial relations are like a Bollywood movie. The 'formula' is same, no matterwhere it is played. There is a hero and a villain and an elusive heroine. There is afight scene to reach the climax and then there is a group photograph a la AVMmovies style! Like in Bollywood, the trend setting 'new wave' or 'art' films whichraise and explore deep issues of relationship, there are organisations which do it

in Industrial Relations. And unlike formula movies, these are not-so-common pieces ofwork, usually do not have 'high profile' actors, but those who are trying to establish inthe industry or do it because they love it.

We read about Bajaj Auto, and about Maruti Suzuki, and the like, because the Pressenjoys covering it. There is captivating drama in a conflict. The feelings of hostility areon public display. Relationship building on the contrary is like wooing and cooing, whichis known only to the players [or so they think]! Many initiatives of good organisations arenot known to people because nobody speaks about it. But they exist. And like art films


Movi[ei]ngTowards HealthyIndustrialRelations

purpose. Nobody likes a constraint,certainly not the one imposed by law.Like the hero's [or heroine's, whyexclude him?] father in movies whosays 'Yeh shaadi nahi ho sakti', andyet is persuaded at the end to blessthem, it is all about perceptions andmindset.

Let us move away from movies.Let us look at aspirations.

Blue collar workers are buying atwo-wheeler in two years of theiremployment, they wear brandedclothes, wear branded sports shoesand are tech savvy. A shop floorleader of a certain engineeringcompany in Pune searched myprofile in Google and LinkedInbefore meeting me! I thought onlyplacement consultants did it!! Thelifestyle changes among white collaremployees are indistinguishablefrom those of managers. They buy acar, visit the same mall, pub, andtravel abroad with a tour operatorand aspire to be in managerial cadrewithin a short time. Girls from poorfamilies are wearing western dress[their parents are usually veryconservative about women's dress]to work in malls and that ischanging many attitudes andremoving taboos. Are we aware ofthe changes that are happeningaround us and its impact onaspirations of employees?

An industrial relationsmanager's job is unenviable anddifficult - on one hand he must beaware of the gradual social changesthat become perceptible only in thelong run, and on the other hand hemust be aware of the vicissitudes ofeconomy and its impact. This is likekeeping one eye on microscope andthe other on telescope!

Managing industrial relationsmeans knowingly setting traditionsthrough managing conflicts and alsobuilding relationship. These are likethe two wheels of a bicycle; youmove ahead when you keep bothwheels running at same speed andalso maintain your balance. No oneaspect will suffice. People who run'unicycle' - the cycle with one wheel,are found mostly in circus andusually the jokers in the circus do it!

But whoever said that managingindustrial relations was easy? Andwhoever said that easy assignmentswere the most satisfyingassignments?

they are on show only at few places, one has to make an effort to find out. For a personin search of inspiration it is not a difficult job. There are organisations which have donesoul searching in their HR meets. Not just presentations. There are organisations whichrealise that the focus should be on building culture, on developing right work ethic andnot just on 'engagement.' The questions that they explore and the answers, or morequestions which they beget are not easy ones. They also discover what 'constructivedissatisfaction' means. There are organisations which decided that there should be nounion in their establishment, and when one came on the scene, they decided to follow the'maha-mantra' of building relationship - Be honest, Be open and Establish boundaries![Believe me that this trend is increasing, I have been working with some of these, butmany good organisations are either publicity shy or resist making of case studies. Sothere are not many well written case studies on positive industrial relations in recenttimes]. For every such organisation, there are a dozen other organisations that willresist unions, enter in a power game rather than focusing on retaining influence on theiremployees. Maruti Suzuki and Bajaj Auto are cases in point in my opinion. And for everymature union leader, there are a dozen 'leaders' who connive with managements to get ridof unwanted workers. I can certainly mention a few names but only at the risk ofinviting libel suits.

Is the archaic law coming in the way of striking good industrial relations? Let us askourselves, what really matters in a relationship building - law and rules or perceptionsand trust? In Vanaz Engineering at Pune all employees [were asked to and] resigned andmore than 50% reapplied for the jobs, and re-joined on reduced salaries. Thisorganisation came out of bad weather and emerged a winner. Were there possibilitiesfor workers to go to court in this case? Yes sir, at every stage, but what held them back wasthat the action was rooted in trust and confidence. And a commitment to broader

VIVEK S. PATWARDHANExecutive Coach and OD Consultant, Mumbai


BM

'Industrial Relations' is a collective term that signifiesrelationship between the Labour - people who work andthe Management - people who get the work done. At thevery cognitive and perceptive level, IR is seen as "aconflict between two sides". Conflict is understandable. It

is inevitable in any relationship. Any view will have a contraryview, contrary interpretation. Any opinion will have a differing,dissenting other side. What one group wants may conflict withwhat other group desires. This happens in all transactions of anybusiness. Not only business transactions but it happens routinelyin every household, every societal dealings. It happens so madly inpolitics. However, conflicts are dealt with rationally, logically,sensibly, sometimes judiciously and sometimes even emotionally.That is the essence of coexistence.

When the co-existence is must, working together is must,sharing business problems, concerns, obstacles, hurdles is mustand above all mutuality of interests is must, why should there beany violent conflict? Why should there be so deafening,thunderous clamour of protests? Why should the hatred reach thecrescendo of killing another human being who had been a co-employee, a colleague? How can the build-up of anger reach sucha peak that a colleague, a co-employee is hacked to death?

What went wrong? What do we have to learn?

The essence of healthier relationship is communication -empathic communication

There is an excellent quote which goes in the name of Osho -In one of the discourses, he said "I am responsible for what I spokebut not responsible for what you understood". This may have beenright for his discourses. He indeed left his disciples to draw theirown meaning of his sayings. However, in an IR scenario, this doesnot hold well, not right. What the management wants to conveyhas to be understood by the labour/ union in its true sense. Andmaking it rightly understood is also the management'sresponsibility. It is conversely true for labour/ union. If themanagement wants to convey that "we cannot grant this wageincrease' or that "you have to increase productivity/ maintaindiscipline on shop floor", it has to be said with all the rational,



The Essence ofCo-existence

The article explores ways to negotiate difficult settlements with dominant and commanding union leaders. It emphasizes on grit and determination,rationale and sound reasoning, personal rapport and empathy along with mutual understanding.

VIJAY DESHPANDEVice president & Head HRJK Tyre & Industries Limited, New Delhi


convincing deliberations. Or else, it gets heard, seen asoppressive, tyrannical, unjust and such like dictate.Conversely, it is also the responsibility of labour/ unionto be responsible not only for 'what you spoke but also forwhat other side understood'. However, I have a rider, astipulation to put in here. The labour and internal unionleaders may not have the maturity and wherewithal toexpress their thoughts, demands, opinions, views and thelike. They may not even understand the dimensions,consequence, farther effects of what they say. Obviously,they are not managers. It is here, a competent managerhas to help them clear their thinking. It is here that a lotof counselling has to happen like a family head would dowith his seemingly errant child. It is at this stage, theemotions have to be nursed so that differences do notresult in to hatred and anger. The essence of healthierrelationship is communication - EmpathicCommunication. And there is no substitute to empathiccommunication, there is no shortcut to the process ofcommunication.

IR is not only Bi-partiteThe scenario of industrial relations has grown

tremendouslyand cannot be represented merely byrelations between management and labour. It has becomea comprehensive and total concept embracing the sumtotal of relationship that exists at various levels of theorganizational structure. IR has to be understood in thecontext of whole field of relationships that exists becauseof the necessary collaboration of men and women in theemployment of an industry. IR, unfortunately, areperceived as responsibility of Department of HumanResource and CEO to an extent. Some years ago, it wasfashionable to speak of "workers' participation inmanagement'. And there was some experimentation ofunion leader being put as head of large PSU plants.However, neither then nor today there is any feel of'managers' participation in Industrial Relations'. Whathappened in one large auto company is clear indication ofthis malady. Line managers, managers in direct contactwith shop floor workmen hardly knew or hardly wereinvolved in on-going issues in industrial relations. Theywere mere rule keepers and reporters of any non-confirmatory actions. On one hand, line managers/managers other than HR develop tendency of staying'aloof and detached' from industrial relations and otherhand the rift widens. On part of unions also, this maladyis evident. The union leaders do not keep fellow workersfully informed and involved in what is happening atmacro level. However, that is a lesser evil than 'non-involvement of line managers'. The line managers haveto be effectively sensitized to Industrial Relations. Thegroup that the author is working in, has recognized thisimperative and has been training/ sensitizing all plantmanagers in all dimensions of industrialrelations.Industrial Relations management cannot justbe departmentalized. It has to be a central theme runningthroughout the organization

Labour laws and IRTo say that the current archaic Labour Laws are

responsible for disturbed industrial relations scenario islike the old adage: beating the rope while the snakeslithers away. No one can deny the role of laws in thesociety. Likewise, labour legislation also has a 'governing

role' in industrial relations. No one can deny that thelabour laws need major amendments. But to blame theviolence that industries all over India witnessed in recentpast on the archaic labour laws is a useless blame game, ameaningless excuse, an exercise in evadingresponsibility. Industrial relations are a matter ofrelationship. A couple goes to the family court whenrelationship has almost ceased or seems to breaking.There are incidents that family court made efforts tomend the relationship by helping couple with counsellingand giving time to 'cool off'. But it is not the law that wasresponsible for relationship coming to a brink of closure.The same is true for Industrial Relations. IndustrialRelations are a matter that has to be managed andresolved with deeper understanding between the parties.The laws and legal machinery have some role especiallywhen disputed are in conciliation process but the IRfraternity knows very well the effectiveness ofconciliation.

Business compulsions in the face ofspiralling competition

One of the important consequences of globalizationand intense competition has been the pressure oncompanies to be flexible. Organizations have sought toachieve competitiveness in two ways. First, throughtechnology and a much wider worker skills base thanbefore in order to enhance productivity. And second, bytaking recourse to less expensive labour - contractlabour/ casual labour and the like. However,organizations cannot be insensitive to aspirations of thisfloating population. So long as there is fairness and noexploitation, it will work. But this also requires dialogueand empathic communication at all levels so that therationale is clearly understood.

Role of unions in IRUnions are there to stay and they are very much a part

of democracy. It is the constitutional right to formassociation and belong to association. All that we must dois we don't interfere in workers' right to form and belongto a union. The unions definitely have a responsible rolein IR. It is a matter of managerial competency to use thisforum constructively in harmonizing the IR. And if wecan manage an oppressive customer, an irate consumer,demanding supplier, difficult banker, and a difficultvillage Panchayat next to our plant and so on, what is theproblem in managing positive relations with a union? Itrequires grit and determination, rationale and soundreasoning, personal rapport and empathy, along withmutual understanding and consideration, on part of bothparties to find common meeting grounds and create aharmonious relationship

Hence it becomes important to emphasise on building sound, harmonious and productive IR,which is far more critical than any manufacturing andtechnology processes. It requires very conscious andmindful efforts. In the expediency of Human ResourcesDevelopment/ Organization Development initiatives anda plethora of high sounding jargon, we seem to have beenoverlooking the critically important dimensions of IR.Let us not, unconsciously though, fall into the trap ofmanaging 'Resource' and ignoring the 'Human' side ofbusiness.



BM

Every company strives forindustrial peace and adoptsvarious strategies to eliminateevery possibility which may giverise to industrial strife. Bad IR

does not emerge in vacuum; it is born due tobad handling of union and the employees.

In one of my previous companies, I had agood experience of handling such a situationwhere management's good intentions gotdefeated due to immature and inexperiencedunion leadership. The company is one of thelargest auto components manufacturingcompanies in the world and has one of itsplants in a city known more for tourism,gems and jewelry than industrial growth andculture; hence most of the workers are of'first generation'. The recruitment policy ofthe company is based on pure merit and nocompromise is ever made in recruitment ofany category of employees. The companyenjoys a good reputation for being fair and

reasonable to its employees.

Auto industries experience seasonalgrowth and sale of automobiles dependingupon many factors such as auspicious day/period for buying a new car /vehicle orinauspicious period like Shradh andMalmas, etc. However, to fulfill the demand ofcustomers during festive seasons andauspicious period (usually 3rd and 4thquarter of a year), the company had torecruit trainees (ITIs only). Over the periodof time, the number of such trainees swelledas company could not take immediate stepsto limit the number of such trainees to amanageable level. Naturally, the alreadyswollen number of trainees was bound toimpact the business adversely on the longterm if this issue was not addressed properly.

The company was just nine years inexistence and had a union which got formedin the sixth years of company coming to




Transforming IR- A Case Study

RAKESH PD SRIVASTAV

Head - HR, National Engineering Industries Ltd.,(Newai) Jaipur

The case study focuses on the most important conditions necessary for good and longlasting cordial industrial relations which is the existence of a strong and enlightenedunion that promotes the status of the workmen without harming the interest of themanagement.


existence. The union very soondeveloped skill for bargaining andthey used to bargain hard and longon every single issue. Workmen'sgrievances used to be captured andresolved with the involvement ofunion, therefore, union had fullsupport of workers and they werefully united behind the union.

When the company decided toaddress the issue of surplustrainees, the union resisted and didnot allow the discontinuance ofany trainee and quoted the pastpractice of absorbing the traineeson company's permanent rolls.However, the managementprevailed and did not allow a groupof trainees to go for furthertraining. Their training had endedafter the completion of theirstipulated training period. Themanagement was technically rightin taking that decision, however,the union resisted firmly and did notget persuaded /convinced bycompany's pleas.

Understanding the scenarioIndustrial relation is characterized by both

conflicts and co-operations and depends onattitudes, relationship, practices and proceduresadopted by both the parties to resolve the conflicts.The mutual trust, confidence and goodwill weresomehow lacking in the union and the union gave anotice of strike to the management even whenmutual discussions were still on. The matter went toconciliation and a series of meetings were held inthe Office of Conciliation Officer. However, theunion yet again showed complete sense ofimmaturity, inexperience and disregard even to thelaw of land and went on Strike during the course ofconciliation proceedings. Finding no solutioncoming forth due to intransigency of the union, theConciliation Officer submitted the 'Failure Report'.The Appropriate Government later on alsoprohibited the continuance of strike under Section10 (3) of I D Act, 1947 and referred the matter toindustrial court for adjudication. Despiteprohibitory order, Union did not call off their illegalstrike and persisted on their intransigent andirrational behavior. In retaliation to this illegalstrike, management declared 'indefinite lock out' ofthe plant. However, kept the plant running with thehelp of the 'Management Staff' and managed to meetthe critical demands of the customers. Fortunately,the management also managed to sustain the strikeand customers' pressure due to slackness in demandowing to sudden global recession which hadengulfed the globe at that time very unexpectedly.The union, although continued their illegal strike,had realized by this time that strike was declared atan inappropriate time and that too not for a veryvalid cause. Ultimately, the union agreed to call offtheir strike after 72 days and a Memorandum of

Understanding was signed in whichthe management also agreed to lift thelock out. The normal plant operationsstarted with permanent workmen only.

The negative consequence of thestrike was that the workmen lost their72 days of wages on the principle of 'nowork, no wage' and company also lostproduction opportunity of 72 days. Theimage of Union and Company gottarnished and there was a slide ofmutual trust, confidence and goodwillin workmen and management againsteach other.

The outcomeThe positive outcome was that the

company gained 'No Nonsense' imageacross the Group as the company hadhandled the situation veryappropriately and effectively.Manpower in the company was nowonly as required and it succeeded increating a flexible temporary workforce

which could be discontinued wheneverthere would be reduction in demand.

Further, the management prevailed upon theunion to give a 'Good Conduct Bond' on behalf of

all the workmen which was subsequently used veryeffectively by the Management to erode theinterference of the union in disciplinary matters.The Union also learnt a bitter experience andrealized that solution can be reached only throughthe means of dialogues and not by coercive means.

There were some good learningalso during this Strike and LockOut, such as :

Appropriate government can issue the order of"Prohibiting a Strike" but there is no authority inlaw to ensure its compliance by union.Disciplinary action against errant workmenduring strike helps the management to negotiatebetter, put snaffle on union and thus put union ondefensive stance.The lock out can be applied selectively only tostriking workmen and plant can be run duringstrike and lock out with the help of managementstaff.Good liaisoning with the government officialsalways helps.

The most important condition necessary for goodand long lasting cordial industrial relations isexistence of a strong and enlightened union whichpromotes the status of the workmen withoutharming the interest of the management.Management should also perceive a problem fromthe opposite angle with an open mind. No law orstatute can bring industrial peace if union andmanagement do not exhibit desired maturity. Theymust have faith, respect, empathy and confidencefor each other.


Managementprevailed upon

the union togive a 'Good

Conduct Bond'on behalf of all

the workmenwhich was

subsequentlyused veryeffectively

by theManagement to

erode theinterference of

the union indisciplinary

matters.

BM

In the last 32 years of my professional career, Ihave seen the various phases of IndustrialRelations. In the 1990s, industries saw a newtrend of handling people through good HRpractices, best engagement through optimum

productivity and minimum waste, etc.

In these years, I have worked in all kind ofindustries such as textile, chemical, engineering, andceramic, etc.

Kirloskar Brothers Limited, Dewas was establishedin the year 1962 for the manufacturing of small pumps.The plant was equipped with machine shop andfoundry having workforce around 950.The overall IRscenario was not good. Lethargy was the order of theday; indiscipline was at its peak, lack of mutualrespect, no inter-personal relationship, etc. The plantwas running with high foundry rejection, lowproductivity, idle time, underutilization of effectiveworking hours, low profitability in manufacturing, lowenthusiasm, interpersonal conflicts and opiniondifferences among the union leaders/representatives.The moral of the managerial employees was equallylow.

In the beginning of the new century and with theemerging trend of liberalization of the Indianeconomy, KBL- Dewas also thought of transformingthe manufacturing processes for meeting therequirement of the newer markets that were facingtremendous challenges from emerging competitors.

The trigger point was our vision to be knownglobally as a reliable, innovative and cost effectivesolution provider in hydraulic machines and system.

It was 2004 when with the change of leadership inthe plant, it was decided to review the overall situationand after one-to-one interactions with all workers. Wealong with the employees arrived at the conclusionthat smooth and strategic industrial relations can onlybring the change and add value in transformationprocess.

A committee was formed led by the ManufacturingHead and HR Head. As per the plan, all the above issueswere discussed in the APEX level Joint DevelopmentCommittee represented by equal representation by themanagement and workers, and unanimously aconsensus was formed that for the growth of theorganization all the above critical issues arenecessarily required to be addressed. Workersrepresentatives have also given their writtencommitment for extending support in all thedevelopmental and improvement initiatives.

It was also agreed mutually that present target ofproductivity are dubious, and taking forward to it forproductivity measurements through an independentagency the concept of MOST (Maynard OperatingSequence Technique) emerged and the concernedagency was engaged for introduction, training,execution and implementation of MOST in KBL -Dewas. A two days awareness workshop was conductedfor 40 manufacturing engineers and representatives ofUnion on August 04. This was followed by an assessorstraining where 10 manufacturing engineers qualifiedthe examinations conducted in November 04.



Creating Robust IR-A Case Study

This case study traverses the journey of changeat Kirloskar Brothers Limited, Dewas whichcame about through robust industrial relations.This has not only helped to step upproductivity but has also helped to enhancethe engagement of people and ultimatelyimprove the bottom line.

ANIL MALIK

Associate Vice President, HRM & C- KBL, Dewas


Strategic approach derivationThe functionaries of Dewas, HR, Production and

Manufacturing Engineering have taken the lead indeveloping the approach based on strategic decision.HR was made responsible to take union intoconfidence and further the union to communicate allthe operators, the benefits and develop the clarity ofMOST implementation by projecting a win-winsituation for both management and workmen. Aneffective training was given to all the workmen's ofManufacturing Shop in the presence of theirsupervisors, on what is MOST, how it will beimplemented and it's working in August 2005. Thiswas followed by the validation process.

The golden handshake scheme On the request of the union and as part of the

strategy for the old and sick employees, a GoldenHandshake Scheme was introduced and around 170workmen were departed with a smile under thescheme. Within a week's time, we were able to reduce170 new workers in a highly conducive and amicableenvironment.

Resolving process of groupconflicts

Within the union representatives and amongdifferent workforce there had been unending conflictswhich were resolved one by one and people weremotivated towards the achievement of common goal ofgrowth of the organization.

Improvement of living standardsMeanwhile some efforts were made to improve

their living standards and on persuasion ofmanagement banks offered the housing loan, vehicleloan and consumable loan for the fulfilment of theirneeds. This initiative has generated a huge trust formanagement in the mind of people as they realizedthat management is sincerely thinking for their well-being and serious for the growth of organization andpeople as well.

Key role of communicationIn the whole process of transformation,

communication has been the key role of bringing thepeople together for the common cause. A flow ofcommunications by way of one to one interactions,notices, display of newspaper clippings were done. Apartfrom this, more than 10,000 man-hours invested in thetraining people. Right from the top leadership to thebottomline supervisors, everyone has maintained theprinciple of one voice which has left no room for anykind of humours and doubts. At the end, an amicableagreement with the union was signed with the rise of 300per cent productivity. This has given the real push to thechange and people followed the provisions of agreementand got the benefits.

Reward & recognitionThe reward & recognitions process also played a

key role in motivating the people for leaving no stoneunturned. The early bird awards were given to the

achievers who have crossed the target as set throughMOST technique and agreed in the bipartiteagreement. Besides this, the spontaneous awards andcash awards were also introduced to recognize thegood and innovative work.

Formation of internal unionorganization

So far in KBL- Dewas, there has been a union withoutside leadership affiliated to INTUC. However in theprocess of this change, people realized that outsideleadership has no role in the improvement of theirwork life and unanimously it has been decided it hasbeen decided to form the internal union organization.The management grabbed the opportunity andfacilitated for organising the independent election inthe premises. People did participate in the electionprocess and elected their own representatives. Eightyears have passed and people have happily acceptedthe internal union organization. Every three years,union elections are organize, which has remainedconsistent over the years.

Career progression schemeA career progression scheme was prepared and

announced for encouraging the multi-skillingoperations and for the career development ofworkforce. This has helped a lot in enhancing the skillinventory in the plant and as a result, flexibility inworking has developed and people have accepted tomove from one work station to another.

ConclusionWhen this journey of transformation was initiated

way back in the year 2004, the plant had a capacity ofproducing 7000 pump per month with the help of 950operators. As on today, the plant capacity is 45000pump per month, which are produced with the help of450 operators. This journey of change occurredthrough robust industrial relations which has notonly given the rise in the productivity but alsoenhanced the engagement of people and ultimatelyimproved the bottom line. Now the morale of themanagerial employee is also high and people areconfident that they can bring the change. KBL hasparticipated in various competitions and securedlaurels. Some of the awards are 3rdAsia's Best CSRPractice award, Golden Safety Award 2013 organizedby Greentech Foundation, MT award for excellence insafety, the Kaizen award, etc. Finally, with a belief thatindustrial relations comes from the shop floor notfrom the cabin of the HR Head, the line mangers /supervisors have been trained to act as firstrepresentatives of the management with the peopledown below. This has given confidence to the linemanagers and the supervisors to provide all-timesolutions and handle the grievances of their people.

As on today at KBL- Dewas, people trust each andevery decision of the management and people are inthe line for the achievement of the common goalwhich is the growth of the organization. We are reallyproud of the fact that KBL- Dewas has transformedwith the help of its people by encouraging robustindustrial relations.



BM

Recently there has been an increase in thespate of incidents of industrial unrest.Some unfortunately even involved loss ofprecious lives. Incidents at GrazianoNOIDA, PRICOL, Coimbatore, Graphite

India, Balangir, Regency Ceramics, Yanam, AP &Maruti, Manesar come readily to our mind. Suchincidents should be condemned unambiguously byone and all, as they bring disrepute to workforce andeven dissuade fresh investments in a country riddenwith such high levels of unemployment. Strikes andlockouts though may have reduced in sheer number,they were painful, prolonged and could only beresolved after protracted negotiations andlitigations. Overall man days lost due to unrestmight have come down but it has left overall a badtaste. Employers now look for ways to avoidregularization of workforce and the formation ofunion itself, as long as they can. Some of them are pursuing a de-risking strategy with capacity back up and build strategic stocks to be a reliable supplier, thought it certainly adds to cost. It is ironical that some of these unrestshave occurred in companies known for theirprogressive policy of paying a 'fair wage' and oftenoffer a set of unmatched facilities and benefits. Whatcould be the issues causing these acrimoniousunrests?

Some of the major issues whichcontributed to these recentindustrial unrests are :

1) Status of employment. Employers arebecoming increasingly wary of adding to their'permanent' headcount. Organized work forcewhich enjoys employment guaranteed by archaiclabour laws and led by rigid trade unions. They areconcerned that unions wrest huge wage increasesthrough collective bargaining boosting labour costsperpetually, but without ceding correspondingly toenhance plant competitiveness. Restrictive shopfloor practices limit smooth change management.Managements fight shy of confronting, in order notto risk 'reliable supply'. Companies with globalcommitments become even more vulnerable. As a




Are wetransforming?

NANDAKUMAR D.V.

HR Consultant & Advisor Bosch & Siemens Household Appliances (BSH), Chennai

result, employers prefer to have flexible and temporaryworkforce, whom they can engage/ release, as per customerorder schedule.

2) Productivity increase generally has been an anathemato most workmen and unions. Accurate job descriptions andcleverly designed incentive schemes are actually provingcounterproductive. Soaring labour and other over head costs

Industrial relations have become an out-dated concept. In this new age, there canbe no 'master-servant' relationship!Workmen demand better levels ofcommunication, involvement and lookfor a stimulating work environment.Lets explore further….

compel employers to explore avenues forproductivity increase just to survive in this era ofglobal competition. Employers prefer to offer awage increase as a variable component linked tohigher performance, which they can roll back incrunch times. On the other hand, unions pitch forassured increases, without a link to productivityincrease.

3) Engagement of contractors' labour toperform their same work gives a jitter to permanentworkmen. When it is convenient to them, someunions may extend their 'co-operation' to extracttheir pound of flesh later. However, suchunprincipled actions invariably lead to a mess, withseveral axes to grind in the process. Employers findit an attractive option at least, in the immediate run.

4) Continued violation of labour law. Withtheir eagerness to attract investments many stateswant to be known as 'investment friendly '. Some aresilently giving implementation of labour laws a go-by, in absence of long pending labour law reform.Authorities 'look the other side' paving way forrampant unfair labour practices by unscrupulousemployers like denial/suppression of workmen andunion rights, engagement of CL in regular jobs, 'use& discard' trainee/temporary system and evendenial of statutory benefits. This breeds afrustration and causes dismay against entire eco-system. Certainly this sows seed of suspiciousmistrust. Opportunistic union leaders wait toexploit such situations.

5) Wage negotiations. Wage settlements areinevitable, when the going is good. Most companiesin organized sector are legally bound by theirsettlements to review wage, service and workingconditions periodically. This wage increase is overand above the built-in adjustment mechanismsinstalled to neutralize rate of inflation. Whileunions and workmen gain more and moreconcessions, they are rarely reciprocallyforthcoming in value contributions. Unions do notaccept a package which is less attractive than theprevious and not in line with other offers in theregion-cum-industry.

6) Loss of employment. Retrenchment ofsurplus / termination is a source of seriousindustrial unrest, unless if it was for a specificmisconduct. Workmen find it difficult to findalternate jobs in view of stigma associated and highunemployment levels, making it a 'capitalpunishment' for entire family.

Economic reforms were initiated in India wayback in 1991, with focus on Liberalization,Privatization and Globalization. Obviously, muchwater has flown under the bridge, as they say. Wageshave risen and productivity has improved. However,inflation has eroded the real earnings of workmen.Global competition and easing of imports requirescompanies to improve their competitiveness year onyear, just to survive.

While minimum wages are prescribed by law,maximum wages are left open to negotiation.Probably, right time has come to suggest industry

wise cap, regionally instead of allowing a drag racingof wages. Otherwise, employability of blue collarworkmen itself can come in question. Capital may beforced to shift to other countries where cheaperlabour will produce same with much less and in amuch better investment climate. Data shows, Indiancompanies invested more abroad in recent years thanin India. It should be an eye opener and taken up byworkmen and unions as a wakeup call.

Industrial relations as it was practiced are anoutdated concept. There can be no 'master-servant'relationship in this age! There will be associates,technicians and managers, working as colleagues.Soon, we will begin to see a shortage of manpowerwilling to work in round the clock shifts. If youthought this is too farfetched consider this.Sufficient unskilled manpower even is available notfor MNREGA projects. Even in Bihar!! House help iscarefully retained. Talented workmen will need tobe engaged & retained.

Workmen will expect better levels ofcommunication, involvement and would look for astimulating work environment. Not just salary andbenefits. Production and quality need not be'extracted' by supervision. Educated workmen willcome forward to assume responsibility and go for it,in a proper work atmosphere. Workmen understandthat it is their work performance and skill levelswhich will secure their employment. Employabilityis the key to their employment. Not their unions orflags.

Such transformation need to be nurturedcarefully by facilitating unions and workmen tochange their mindset. There is need to approach IRin a holistic manner. We should perhaps look at IR asakin to parenting. Parenting is not just giving food.It involves a close and continuous engagement. AsPeter F Drucker said long ago, 'Management obtainsthe union it deserves. Union gets management itdeserves'. Win-win thinking, interdependence andworking together for common goal pursued withhigh integrity will hold the key. Tomorrow's HRpolicies would focus on respect for human dignity,fairness, mutual respect and a long termcommitment to employee development.

India is slated to be among the top threeeconomies of the world. The per capita Indianincome is expected to triple by 2020. Aspirations willbe sky high too. A manager thinking of a 'win-win'strategy would also find innovative ways of valueaddition. He would do so partnering his associatesin the path of progress. Industry, workmen andunions will find ways to secure their ownemployment. Managers would find new ways toinspire lead and reward. They would lead from frontwith their expertise, improved soft skills andempowerment. They would manage changes at workplace smoothly and would be more pro-active teamplayers. They will try to build a team of solidperformers around them. They will be goodlisteners, with empathy and capability to buildtrust, and unions will 'choose' to co-operate withthem.

(Views expressed here are the author's own)



BM

Human Resources have become vital to meet thedemands of competition in market, satisfyingcustomers and managing change. IndustrialRelations, which is a major part of HRencompassed with large number of labour laws is

not an exception. In true sense HR aims at individual employeewhile IR covers group of employees. But what is lacking inindustry today is a strategy for Industrial Relations while thehype is on HR Strategy forgetting that IR is an integral part ofHR. All HR initiatives and practices, like talent management,competency development, training and performancemanagement, covers only management cadre employees andseldom unionized workers. Only draw back for these workers,who form the large component of Human Resources, is theperceived thinking of employers that these workers have rightsand they can make dispute on any matter given their attitude.Added to this aspect, workers have unreasonably have higherexpectations even in the industries providing the best facilitieswith respect for individuals and enormous scope for trainingand growth. This group of employees is one of the key actorswhose potential, an employer has to tap for enhanced

performance. These unionized employees have faced theonslaught of free economy where businesses are struggling tosurvive and there is evidence of change of approach by tradeunion which resulted in less number of strikes etc in generalduring the early phase of liberalized economy and may be tillthe year 2008. But later happenings from the year 2009 onwardsreflect the approach of trade unions reverting back to theirearlier attitude reinforced with violence as we witnessed. Thedisputes are not only for wage hike which was the majordemand in the earlier days but for reinstatement of dismissedworkers, removal of some probationers for unsatisfactoryperformance; suspension of union leaders, regularization ofcontract labour/outsourced employees, against company'srecruitment and wages policy and demanding ESOP. CEO, VicePresident Operations, HR heads were killed in the aboveagitations both in North and South India. On examining deeperin the above issues, we may identify the following factorscontributing to the labour unrest.

Presence of large component of Gen Y workers bothpermanent and contact labour whose typical characteristic isto earn more money quickly having unrealistic expectations.Employing large numbers of contract labour on productionactivities with lesser wages than the permanent workers.Dwindling numbers of permanent workers while thenumbers of contract labour/outsourced employees are on

the raise on shop floor while both categories do similar work.Non-implementation of the provisions of Contract Labour(Regulation & Abolition) Act which stipulates equal pay forsimilar work which is also a condition while grating alicense for the contractors.Demand to regularize contact labour and increase theirwages. But in reality the permanent workers get pay hike insettlements and not the contract labour.Entry of large number of MNCs who have less knowledge

of domestic environment like culture and legal frame workin which workers perform but aim at quick economic gains.

Workers perception of HR Professionals as managementwho put stumbling blocks to get their genuine rights is thereason for violence in which HR professionals have losttheir lives.

Exploitation of contract labour as cheap labour. In thesecircumstances, there is every need to transform IR bydeveloping leadership traits for IR. The role of IRprofessionals in the changing business scenario has become

crucial for win-win settlements with unions. TheIR role makes it necessary to develop leadershiptraits such as inclusion being the part of totalprocess as catalyst, to keep up the words; tochange the work methods to increase productivityand competence to deliver the results. We talk alot about HR Competencies but not IRcompetencies. We talk about HR Partnering butnot IR Partnering. McEvoy (2005) ,Ulrich (2007),and SHRM (2011) have analyzed key HRCompetencies out of which the following eightare essential for IR professionals to maintainharmonious employer-employee relations andachieving results.

1. Integrity, 2. Ethical Behaviour, 3. EffectiveCommunications, 4. Credibility, 5. StrategicThinking, 6. Change Management/CultureShaping/Stewardship, 7. Leading Change, 8.Results Orientation

Unless CEOs focus on IR recognizing it as an integralimportant part of HR, no meaningful strategy can be made.The following IR strategies are necessary to sail in tune withmarket conditions and business needs:

Develop IR Competencies for both HR and Line Managers.Sustained training of trade union leaders to understand everchanging business scenario and bring awareness on the needto revise settlements to meet the changing market conditioneven before completion of the existing settlements.Sustained training of Line Managers in People Skills.Fair process and respect for individuals.Effective employee communication.Complying with all statutory obligations.Involve workers in CSR activities to use their energies in auseful manner outside their work.

In a nutshell, IR must transform from reactive style toproactive approach integrating with HR Strategy for thesuccess of an enterprise with the following behaviour hallmarks at workplace:

Be honest and sincereDo what you say and, meet the deadlinesUnderstand businessManage and lead the changeImplement labour laws and HR policies



Need todevelop IRleadershiptraits...SURENDRANATH.A

NulineHR Consulting, Bangalore


BM

We have all heard of, discussed anddebated about the pros andcons of globalization. It is a much

understood fact that this has had a hugeimpact on people mobility and talentequations worldwide. In the wake ofsuch a transformation, HR practitionershave realized the need to havesensitization and assimilation trainingswhich can help their employees in termsof managing cultural changes whenshifting countries.

The ability to scale up on this front, is animportant parameter that is used byglobal organizationsto assess theiremployees for bigger leadership roles.Hence HR practitioners must spend timeand effort in guiding the employees onthe kind of competencies, businessetiquette, cultural knowledge that theyneed to possess in order to succeed inroles which require relocation to newcountries. Many Indian organizationssuch as the Tatas, Aditya Birla Group,Ranbaxy, Reliance, HCL, Wipro, Infosysand so on have established a globalpresence and work on such programsvery effectively.

Apart from cross cultural trainingprograms, the HR should also beproviding ready counseling toemployees, till they acclimatize and areable to assimilate the new culture andbusiness environment.This is imperativefor business success in that market.

Here are some key points that one needsto bear in mind when designing theprograms.

Criticality of establishing thebusiness linkage to the ability ofthe employees, to work cohesivelyacross cultures.

The training content must giveinsights into how the behavior andapproachto a certain challenge orsituation may differ from culture toculture. Hence understanding and

respecting that approach is importantfor business success.

Trust and acceptance -

There will be diverse value systemsand beliefs.Conflicts and friction arebound to arise from time to time. Butemphasizing on trust and acceptanceis essential.This kind of trust can leadto greater team bonding and forgepartnerships even with local clients,that can result in significantly superiorperformance at the individual andorganization levels.

Knowledge of the business,economic and talent landscape -

While most training programs coverthe business and economic landscapeinformation, the talent pool relatedinformation is not provided. HR mustwork on collecting authenticinformation on this front and share itwith the relocating employees.Thisgives a deeper insight into the peoplethere.

Usage of relevant tools -

One of the most effective tools in thisarea is the Intercultural developmentinventory developed by MitchellHammer. It gives the organization aninsight into the different abilities ofindividuals to make adjustments to anew culture.This is based on theassumption that the comfort levelsare different. Here is a link which cangive you further insight into the tool.http://www.idiinventory.com/

Background understanding ofthe relocating employees-

The trainer must get detailedinformationof the relocatingemployees such as the demographics,

education, urban - rural upbringing andso on.This will help him or her to allow theindividuals to introspect about theirown value system and how it differsfrom the new culture that they aregoing to.

Creating the right checklist-

This gives the employees a readyreference to what is key for smoothtransition.The checklist can bedivided into various aspects andbecome like a handbook - so it cancover the do's and don'ts of thebusiness and cultural aspects, as well as provide more logisticalinformation such as the emergencycontact numbers, things to do (especially when one is relocating withfamily), a local mentor ( this could besomeone from the local office),accommodation support, allowancesand exchange rates, infrastructureand public transport information, andso on.

Real life examples and casestudies -

This is an integral part of the training since it allows employees totransfer their theoretical knowledgeinto practical information, and absorb it through experientiallearning.

This kind of training can only becomplete if there is a high degree ofopenness within the employees. Somelevel of orientation may also be neededat the local office where the relocatingemployee is moving, to get them alsoaware of the kind of culture he or she iscoming from.Hence cross culturaltraining is a two way process, eventhough the onus is on the relocatingemployees.


Diversity & Inclusion

Cross cultural diversitytraining programs

SIMRAN OBEROI, Sr. Knowledge Consultant, SHRM India

BM

Apart from cross cultural training programs, the HRshould also be providing ready counseling toemployees, till they acclimatize and are able toassimilate the new culture and business environment.


Anil Kaushik Management Expert -HR & IR

Q. Few of our employees stay back beyond their duty hoursin the factory to wait for other co-workers belonging to theirsame village. They go together in the evening. Now thoseemployees have claimed for over time on the basis of the cardpunching, where infact they were never retained by thecompany for extra working. Labour Inspector is alsoinsisting us to pay their O.T. on the basis of time card report.Are we liable to pay O.T. to such employees? What law says?

Ans. No! You are not liable to pay O.T. to suchemployees whom you neither authoriesd to stay back inthe factory nor took extra work from them. There mustbe some nomination or due authority from themanagement in writing in favour of workmen doingover time. It is for the workmen to prove thatmanagement authorised them to stay back beyond dutyhours. Merely relying upon time card and its punchingwill not be sustainable since it only reflects the entryand exit of the employee and not authorised workingbeyond duty hours. Madras HC in the case of VelloreCo-operative Sugar Mills 2005 LLR 653: 2005 (105) FLR681 has also held in the same direction. SC in the samecompany case- D. Krishnan vs Special Officer, VelloreCo-operative Sugar Mills 2008 LLR 1188: 2008 (118) FLR1196 has held that in the absence of authorisation by themanagement / employer for working extra beyond dutyhours, claim for over time wages can’t exists. M.P. HC inthe case of Madhaw Prasad vs Municipal Council,Damoh 1998 LLR 817 has also held that unless anemployee is asked to work over time, his claim for thesame will not be sustainable.

It is suggested that you should make a policy of notallowing workmen to stay back in the factory premisesafter completing their duty hours. It may create manyother complications and liabilities for the managementapart from over time payment in case some thinghappens in the plant.

Q. One employee is absenting from duty since last onemonth. We have sent him two letters asking him to reportfor duty and explain the reason of absence but he has notreported so far. In the third letter we have informed himthat he is deemed as abandoned the job voluntarily beingremained absent for more than 8 days as per standingorders. We have also written him that his name is kept inabeyance from the muster roll and he is asked to be presentin enquiry to explain his reasons of absence. Is thisprocedure correct? Should he not be issued charge sheetbefore initiating enquiry?

Ans. Procedure adopted by you does not appear to becorrect. The clause of assumption of voluntary

abandonment of job after 8 days of absence has beendeclared illegal by SC in D.K. Yadav vs J.M. A Industriescase 1993 LLR 584. Since such clause is illegal, you can’tmake it operative without adopting the properprocedure of disciplinary action. Your letter appearsself contradictory. On one side you are asking theemployee to present himself in the enquiry and explainhis absence and on the other side you have kept hisname in abeyance on the ground of voluntaryabandonment. You have already asked him to explainhis absence in earlier two letters.

The proper procedure is that the employee should havebeen issued a proper charge sheet of unauthorisedabsence and then he should have been asked to explainand then if found necessary, enquiry should have beeninitiated. Your letter presuming his voluntaryabandonment can’t be treated as charge sheet.Karnataka HC in the case of G.V. Aswathanarayanacase 2003 LLR 937 has held that a charge sheet is the rootof the disciplinary action and if vague, will vitiate thewhole procedings. Your last letter as narrated appearsto be like the matter which was decided by P&H HC inthe case of Faridabad Central Co-operative Bank Ltd.2002 LLR 507 where court refused to treat the letter ascharge sheet which was written by the bank to theemployee asking him to either refund money asembezzled or to face the disciplinary procedings.

It is suggested that before starting the disciplinaryprocedings, proper charge sheet should be issued to theemployee. Treating the employee as abandoning the jobvoluntarily even after enquiry carry more risk thanterminating his service on the ground of misconduct ofunauthorised absence.

Q. In domestic enquiry the workman is absenting. Ourconsultant has advised us to send the proceedings ofenquiry of each date to the employee by post even if heremains absent in the enquiry. What is the legal position?

Ans. No! Principles of natural justice do not requirethat employer should send the copy of proceedings tothe employee of each date by post to him even if heremains absent from the enquiry. Madras HC in the caseS. Muthuraman vs P.O. Labour Court Madurai 2003 LLR790: 2003 (99) FLR 157 has held that even non providing ofproceedings of enquiry at the end of each day will notvitiate an enquiry when there is no such stipulation inthe certified standing orders.

So if the court is of the view that even during thepresence of worker, not providing the copy of

Solutions provided here are in context to narrated facts & not in general.


proceedings will not make the enquiry invalid, thensending the copy of proceedings of each date to theworker at his residence by post even if he is absents isneither relevent, nor necessary and nor legallyrequired.

Q. We have a worker’s union. One workman has beendismissed. Union and management are reaching to anagreement that dismissed workman will not raise hisdispute before the court and issue will be deemed as settled.But workman is not ready to settle the dispute. Theworkman was member of the union. Can we execute suchsettlement with the union and will it be binding on thatworkman.

Ans. No! Your such settlement with the union about thedismissed workman will have no legality. A trade unioncan’t enter into a settlement with the management inrespect of the matter of discharge / dismissal orretrenchment of the workman of their own without theconsent of the concerned worker. You are advised tofirst obtain the consent of such worker and then enterinto a settlement either with the worker himself undersec. 18(2) of ID Act or with the Trade Union. If there isno consent of the dismissed worker, such settlementwith the union will not be binding on the workman evenif he was member of the union. It has so been held bythe Allahabad HC in the case of Hari Fertilizer 1992LLR 418: 1992 (64) FLR 889. HP HC in the case of RaviDutt 2008 LLR 853 has also held that if a settlementdeprives the workmen of their certain rights, it will beagainst of the policy.

Q. Our departmental head issued the chargesheet to theemployee whereas the dismissal order is signed by thedirector. The appointment order was also signed by thedirector. Would the chargesheet in this case be held invalid?What is your expert opinion?

Ans. No! chargesheet issued by the manager will not beheld invalid with the assumption that under yourcertified standing orders all managers will be havingpowers to manage the administration and functions ofthe factory. No doubt, that director being senior havingsigned the appointment order and dismissal order issuperior than the departmental head but that does notmean departmental head lacks administrative powersto issue chargesheet. Ordinarily, the person whoappoints has powers even to dismiss a workman. But, inso far as issuance of chargesheet is concerned, it is anintermediary procedure. It is to be conducted as perprinciples of natural justice and procedure as laid downin certified standing orders. It is not necessary that theauthority competent to impose penalty must initiate thedisciplinary proceedings. The proceedings can beinitiated by any superior authority who can be held tobe controlling authority subordinate to the appointingauthority. The Supreme Court in the case of DirectorGeneral ESI vs. T. Abdul Razak, 1996 II CLR 619 has alsoheld in the same direction.

Q. We have auto dealership company. We sell the vehicles inexchange of used vehicles under some schemes. One of thebuyer paid the difference amount to the sales executive in

cash and took the delivery of the new vehicle. Salesexecutive did not deposit the same amount in the companyand with held some cash with him on the plea that buyerwill pay later on. When the issue was exposed and thebuyer made complaint, we chargesheeted the salesexecutive. The employee deposited the cash with thecompany and buyer withdrew the complaint. Now whatwill be the fate of the disciplinary proceedings initiatedagainst him?

Ans. The proceedings started by you against theemployee holds good even if the buyer withdraws hiscomplaint and the employee deposits the cash with thecompany. The act committed by the executive is of mis-appropriation and fraud. His depositing the cashdifference after the matter was exposed will not absolvehim from the gravity of the misconduct he committed.Withdrawal of complaint by the buyer does notobliterate the misconduct already committed. M.P. HighCourt in the case of Ram Ratan Dwivedi vs. Municipalcouncil, 2006 LLR 457 has also held that a misconduct ofembezzlement will not be swept because the employeedeposited the impugned amount.

Q. Employee has worked for 239 days, just one day less thanrequired under sec. 25F of ID Act to get retrenchmentbenefits. Can such an employee claim reinstatement?

Ans. No! In such cases conditions prescribed by the lawcannot be flexible or streched to the benefit of theemployee. If the employee has not completed 240 days inlast 12 months preceding the date of termination, he isnot entitled to any relief. Delhi HC in the case of (MeharChand vs NDMC, 2002 LLR 1059) has also held in thesame direction.

Q. Can you tell us few factors which are capable of vitiatingthe domestic enquiry?

Ans. Though there may be many factors responsible forvitiating the enquiry but Calcultta High Court in the caseof Swapan Ray vs. Indian Airlines Ltd., 1996 I LLN 765 hasheld the following factors which vitiated the enquiry :

1. The workman was not informed that he is entitled tothe help of co-worker for defense.

2. No witness was examined to prove the documents andthe charges against workman.

3. E.O. considered the circulars and the report ofvigilance officer behind the back of the workman.

4. E.O. took into consideration various irrelevant andextraneous matters.

5. E.O. did not give opportunity to the workman toproduce his defense.

6. The disciplinary authority did not record his findingson each charge as required under Airlines serviceregulations.

7. The appelate authority did not grant any opportunityof hearing to the workman.

Patna High Court in the case of Duryodhan PrasadSingh, 1996 II LLN 36 vitiated the enquiry where E.O.himself became witness.

Business Manager November 201340Readers are invited to ask for Solutions of their Labour Problems through e-mail - [email protected]

BM

Government Notifications


Revised Minimum Wages in Delhi w.e.f. 01-10-13Notification No. 12(142)/02/MW/VII/3124 Dt. 03-10-2013 Figures in Rupees

Category Minimum Wages Dearness Allowance Minimum Wages (P.M.) Minimum Wagesas on 01-April-13 wef 01-Oct. 13 wef 01-Oct. 13 Per day

Unskilled 7,722 364 8,086 311

Semi-skilled 8,528 390 8,918 343

Skilled 9,386 416 9,802 377

Non-matriculate 8,528 390 8,918 343

Matriculate but not Graduate 9,386 416 9,802 377

Graduate & above 10,218 468 10,686 411

Revised Minimum Wagesin Uttar Pradesh

From 1.10.2013 to 31.3.2014

Category Basic DA Monthly Per day

Unskilled 2600.00 2600.00 5200.00 200.00

Semi-Skilled 2964.00 2964.00 5928.00 228.00

Skilled 3290.00 3290.00 6580.00 253.08

Notification dated 3.10.13

Ministry of Labour & EmploymentDirectorate General of Employment and Training

NOTIFICATIONNew Delhi, the 27th September, 2013

G.S.R. 662(E). - In exercise of the powers conferred by sub-section (1) of Section 37 of the Apprentices Act, 1961 (52 of 1961),the Central Government after consulting the CentralApprenticeship Council, hereby makes the following rules furtherto amend the Apprenticeship Rules, 1992, namely:-

1. (1) These rules may be called the Apprentiship (SecondAmendment) Rules, 2013.

(2) They shall come into force on the date of their publication inthe Official Gazette.

2. In the Apprenticeship Rules, 1992, in sub-rule (1) of Rule 11,for clauses (a), (b), (c) and (d) and the entries relating thereto, thefollowing shall be substituted, namely:-

"(a) During the first year of training - Rs. 2100 per month(b) During the second year of training - Rs. 2400 per month(c) During the third year of training - Rs. 2800 per month(d) During the fourth year of training - Rs. 3100 per month

[F. No. DGET - 4(1)/2012 - AP]SHIKHAR AGRAWAL, Directorate General/Jt. Secy.

Foot Note - The Principal rules were published vide numberG.S.R. 356, r date the 15th July, 1992 in the Gazette of India Part - II,Section 3, sub-section (i), dated the 1st August, 1992 and lastamended vide number G.S.R. 75(E) dated the 8th February, 2012.

Minimum Rates of Wages in Punjab

w.e.f. 01.09.13The minimum rates of wages for different categories of

employees in respect of 71 scheduled employments wasRevised/Fixed w.e.f. 01.09.2012 vide notification no. S.O./94/C.A.1l/1948/Ss 3 & 5/2012 dated 15-11-2012. The said rates were linkedto Consumer Price Index Numbers (State Series 1987-100). Theadjustment of wages are made after an interval of six monthstaking the average of CPI numbers compiled by the PunjabGovernment.

By a Notification dated 16.9.2013 the Govt. of Punjab hasenhanced the minimum rates of wages w.e.f. 01.09.2013. Theincrease in wages for monthly rated employee is 552.75, for dailyrated workers is 21.44 and for hourly rated worker is 2.68.

TABLE OF MINIMUM WAGES

Revised Rates w.e.f. Enhanced Rates w.e.f.01.03.2013 01.09.13

Category Monthly Daily Monthly Daily

Unskilled 5695.00 219.20 6247.75 240.64

Semi-skilled 6475.00 249.20 7027.75 270.64

Skilled 7372.00 283.70 7924.75 305.14

Highly- 8404.00 323.40 8956.75 344.84Skilled

Staff- 10865.00 418.10 11417.75 439.54Category-A

Staff- 9195.00 353.90 9747.75 375.34Category-B

Staff- 7695.00 296.20 8247.75 317.64Category-C

Staff- 6495.00 250.00 7047.75 271.44Category-D

The Building & Other Constraction Workers (Regulation of Employment andConditions of Service) Act, 1996

U.P. Gazette, Ext., Part 4, S.(Kha), dt. 25-7-2013, P.2 , July 25, 2013 , NOTIFICATIONNoti. No. 488/36-2-2013.- In exercise of the powers under clause (d) of sub-section (1) of Section 2 of The Building and Other Construction

Workers' (Regulation of Employment and Conditions of Service) Act, 1996 (Act No. 27 of 1996), the Governor is pleased to specify that all thecategory of works mentioned below shall be the work under the said Act from the date of publication of this notification in the Gazette. Welding,Carpentry, Well Digging, Roller Driving, Roofing, Masonry (Rajgiri), Plumbing, Blacksmith, Mosaic Polishing, Road Work, Mixer Operation,Painting, Electric Work, Hammering, Tunnel Work, Tiles Fixing, Well Silt removing/Driving, Some Quarries Work or Mining, Spray work orMixing work (engaged in road construction), Marble/Stones work, Guarding (for providing security at construction sites), Lime making, EarthWork, Works related to carry cement, concrete, bricks etc., Lift and escalators fixing, Fixing Security Gates or other machineries, Extraction ofSand, Soil or Core Sand, Bricks manufacturing works at Brick kilns, Construction of Community parks or footpath, Fixing Modular units usedin Kitchens, Fixing and moulding of Window, Grill, Doors etc., Interior Decoration of Houses/Buildings, Large mechanical works likeMachinery Bridges works etc., Fixing and repairing of Fire Extinguishers System, Fixing and repairing of Cooling and Heating Machinery, Allthe works related to flood management or same types of other work, Construction of Dams, Bridges, Roads or any operations under buildingconstruction, Construction of Swimming pool, Gold course including any other recreational amenities, Clerical/Accountancy (All types ofworkers working as clerk and accountant for any construction establishments), All types of stone cutting, breaking or grinding works.



Recent Important JudgmentsLatest Judgments

BonusNo bonus will be payable by a new

establishment for the first five years when therehas been no profit.

Gurdaspur Co-operative Sugar Mills Ltd. vs. PresidingOfficer and Another. 2013 LLR 1053 (P&H H.C.)

ChargesheetNon supply of documents with the

chargesheet would not defeat the enquiy.Chargesheet can only be time barred if issuedafter specified period as prescribed in theservice rules and not otherwise.

Issuing of charge-sheet can only be time barred ifthe same is issued beyond the specific period oflimitation, as prescribed in the service rules of theemployer-organisation and not otherwise. If thepetitioner does not prove that he has been seriouslyprejudiced by non-supply of documents with thecharge-sheet, mere technical violation would notdefeat the enquiry proceedings.

Shri D. K. Gupta vs. Punjab National Bank. 2013LLR 1044 (Delhi H.C.)

CompensationReinstatement is not the rule even if the

retrenchment is held illegal. While decidingabout compensation in lieu of reinstatementfactors to be considered will be mode andmanner of appointment, nature ofemployment, length of service and ground oftermination.

Reinstatement is not necessarily awarded whenthe termination of a workman is held to be illegalsince at the time of termination the workman hasnot been paid retrenchment compensation or onemonth's notice or pay in lieu thereof hence it can beconverted into appropriate compensation in lieuthereof. Although the Limitation Act, 1963 is notapplicable in the matter of industrial dispute but atthe time of granting relief it is to be seen that it hasits own significance. Whenever reinstatement of a

workman is with full or partial back-wages and isconverted into compensation, the relevant factors tobe seen are whether the dispute has been raisedbelatedly, the mode and manner of appointmentnature of employment, length of service, ground onwhich the termination has been set aside etc.

Assistant Engineer, Rajasthan State AgricultureMarketing Board, Sub-Division, Kota vs. Mohan

Lal. 2013 LLR 1009 (S.C.)

When management and the workman havelost confidence of each-other, compensationinstead of reinstatement would be proper.

Unauthorised absence after expiry of leave evenfor leading agitation or going on strike is amisconduct. While awarding quantum ofpunishment, past record may be taken intoconsideration. When the Management and theworkman have lost confidence of each other, areasonable lump sum compensation in place ofreinstatement with back-wages would beappropriate.

Press Trust of India Ltd. vs. Neeraj Bhushan.2013 (3) LLN 592 (Delhi H.C.)

Companies ActEmployee rightly convicted for not vacating

the residential quarter after leaving the service.

No fault can be found in the judgment of trialcourt in convicting the petitioner for not vacatingthe accommodation as allotted to him by virtue ofhis employment after cessation of his employment.

A.B. Singh @ Azir Bihari Singh vs. State ofJharkhand and Another. 2013 (138) FLR 742 (Jhar. H.C.)

Contract LabourFor presecution under the Contract Labour

(R&A) Act complaint has to be filled withinthree months from the date of commission ofoffence.

No court shall take cognizance of an offencepunishable under the Contract Labour (Regulationand Abolition) Act, 1970 unless the complaint is

made within three months from the date ofcommission of the offence came to the knowledge ofthe Inspector or where a written order is made bythe Inspector, complaint thereof can be made withinsix months from the date of commission of theoffence. Cognizance of an offence punishable underthe Contract Labour (Regulation and Abolition) Act,1970 by the Trail Court is barred by section 27 of theAct if it is filed after a lapse of six or more monthsfrom the date of occurrence of the alleged offence.

M.S. Prasad & Anr. vs. The State of Andhra Pradesh& Anr. 2013 LLR 1057 (A.P. H.C.)

When the workman was mere contractlabour, his services were never engaged by thecorporation against a regular vacancy, hisclaim for regularisation is unjustified.

Regularisation of a workman may be consideredonly when there exists employer-employeerelationship. Regularisation takes within its foldreference of reinstatement, hence, relief ofreinstatement, awarded by the Industrial Tribunalis not beyond jurisdiction of the Tribunal.

Contractor's employees have no legitimate right to claim absorption as regular employees of the principal employer i.e. regularisation in future. When the finding given by the Industrial Tribunal/Labour Court is afterconsidering all relevant facts on appreciation ofevidence and legalities involved, interference by thewrit court is not warranted to avoid any otherplausible view.

Matters within the jurisdiction of the LabourCourt are as per Second Schedule. Matters falling within the jurisdiction of IndustrialTribunal are given in the Second Schedule andadditionally in the Third Schedule to the IndustrialDisputes Act, 1947.

Indian Railway Finance Corp. Ltd. vs. RajendraPrasad & Others. 2013 (3) LLN 606 (Delhi H.C.)

Court PowersWhen court held dismissal as justified, it will

not be in powers of the court to awardcompensation also.

Awarding compensation despite holdingdismissal as justified is not within the power of theLabour Court under section 11A of the IndustrialDisputes Act, 1947. When the Labour Court is notsatisfied with the order of dismissal passed by theDisciplinary Authority or found punishment ofdismissal disproportionate to the gravity of themisconduct, it may set aside the order of dismissal,directing reinstatement of the workmen on suchterms and conditions as it thinks fit or award anylesser punishment in lieu of dismissal as thecircumstances of dismissal as the circumstancesand facts of the case may require.

The Management of M/s. V.G. Taxtiles (P) Ltd. vs.The Presiding Officer, Labour Court, Coimbatore

and Ors. 2013 LLR 1028 (Mad. H.C.)

Disciplinary ProceedingsWhen the employee fails to participate in the

enquiry, he would not be entitled to claim thatthere was violation of principles of naturaljustice. Acts like dishonesty, breach of trust andmisappropriation of public money by bankemployee are serious misconduct that warrantdismissal.

While dealing with public money, commission ofacts like dishonest, breach of trust,misappropriation of public money etc. are grave andserious misconducts attracting dismissal ofemployee from his service. When the delinquentemployee fails to participate in departmentalproceedings to contest the charges, he would not beentitled to claim that there was violation ofprinciples of natural justice.

Departmental proceedings vis-a-vis criminalproceedings need a different mode of proofs i.e. incriminal case, the offence has to be proved beyondreasonable doubt, whereas the departmentalproceedings age governed by civil law i.e. onus ofproof is discharged on preponderance ofprobabilities. In banking services, integrity ofemployees is very important as the banks are to dealwith public money, as such, an act by a Bankemployee adversely effecting his integrity issufficient to attract dismissal from his service onaccount of breach of trust or loss of confidence.

Y.S. Kapoor vs. Central Bank of India & Ors. 2013LLR 1017 (Delhi H.C.)

Non supply of documents or list of witnessesto employee who fails to participate in theenquiry will not be violative of principles ofnatural justice.

Dismissal justified for insubordination,misappropriation, damage to companyproperty, negligence of work, unsatisfactoryworkmanship and habitual breach ofinstructions.

The nature of charges like insubordination,misappropriation, damage to company's properties,negligence of work, acting against the interest ofthe company, unsatisfactory workmanship andhabitual breach of rules/instruction etc. cannot beheld to be vague when the same are with respect tospecific instances.

There is no violation of principles of naturaljustice on account of non-supply of documents orlist of witnesses to delinquent employee whodeliberately with full knowledge refrains fromparticipating in enquiry. Non-supply of documentsor list of witnesses to delinquent employee whodeliberately with full knowledge refrains fromparticipating in enquiry, are not defences availableto the delinquent employee.Long and unblemishedrecord of service can be taken into consideration forinterference in quantum of punishment undersection 11A of the Industrial Disputes Act if thesame is totally unblemished.




Fertilizers & Chemicals Travancore Ltd., Representedby its Chief Personnel Manager (Marketing), Cochin

vs. P. S. Giri & Anr. 2013 LLR 1026 (Ker. H.C.)

When employee declined to appear in theenquiry, ex-parte is proper. Mere technicalviolations would not be violative of principlesof natural justice.

If the delinquent employee declines to appear inthe enquiry proceedings despite opportunities givento him, holding the ex-parte enquiry is justified.

Unless the petitioner does not prove as to whatprejudice has been caused to him or suffered by himby non-providing of (i) defence assistant, (ii) enoughtime to submit written brief, (iii) charge-sheet wasnot accompanied with documents etc. being meretechnical violations, if would not be violative ofprinciples of natural justice. Only when the order ofthe Disciplinary Authority is hit by the Doctrine ofproportionality i.e., judicial conscience is shockedwith respect to quantum of punishment imposed,the same would be disproportionate to the gravity ofmisconduct. Orders of Departmental Authoritiesare not challengeable under article 226 of theConstitution of India (writ jurisdiction) unless thesame are violative of the rules of theorganisation/law or are perverse or there isviolation of principles of natural justice or thepunishment imposed violates the doctrine ofproportionality.

Shri D. K. Gupta vs. Punjab National Bank. 2013LLR 1044 (Delhi H.C.)

In banking industry where trust is lost,punishment of dismissal is justified. Nonsupply of documents will not effect the enquiryunless shown beyond doubt that it causedprejudiced to the employee.

Once trust upon a bank employee is lost,punishment of dismissal from service is justified,particularly when he has been held guilty byconducting departmental proceedings for themisconducts of financial irregularities. Court canonly interfere in departmental enquiries if thefindings and conclusions of DepartmentalAuthorities are perverse, against law or the rules ofthe organisation or if the principles of naturaljustice are violated or on the basis of violation ofDoctrine of Proportionately.

Non-supply of documents, in itself, cannot helpthe charged official because it must be shown beyonddoubt as to how non-supply of the documents hascaused prejudice to the charged official. Doctrine ofdisproportionality is to be raised after accepting thefindings and conclusions of DepartmentalAuthorities as correct. Doctrine ofdisproportionality is applicable only if thepunishment imposed has to be so grosslydisproportionate that judicial conscience of thecourt is shocked. Keeping in view the gravity ofmisconducts i.e., grave financial irregularities itcannot be said that punishment of dismissal fromservice is shockingly disproportionate attractinginterference of the court on the ground of violation

of Doctrine of Proportionately under article 226 ofthe Constitution of India. Once no ground is pleaded,there does not arise any basis to argue the becauseunless the factual ground is pleaded and sufficientfacts are set out, the respondent would have noopportunity to effectively rebut and meet the same.

N.C. Chaturvedi vs. Bank of India and Ors.2013 LLR 1114 (Delhi H.C.)

Employees’ Compensation ActRs. 50,000 towards cost in addition to

payment of accident compensation, will beappropriate when the order of theCompensation Commissioner was prolonged byabusing the process of law.

Managing Committee, Ram Dei Devi Kanya InterCollege, Gorakhpur vs. Smt. Bahorna Devi and

Another. 2013 LLR 1031 (All. H.C.)

Married sister does not fall under thedefinition to dependant.

Only an unmarried sister who, in whole or inpart, is dependent on the earnings of theemployee/deceased brother at the time of his death,could claim compensation under the Employees'Compensation Act, as a dependent. A married sisterof the deceased cannot claim compensation underthe Employees' Compensation Act as a dependent.

National Insurance Co. Ltd. vs. Bhanumathy.2013 LLR 1037 (Ker. H.C.)

The concept of functional disablement isquite distinct with loss in earning capacity ofan individual who suffers injury in an accident.

The Commissioner under workmen's/Employees'Compensation Act is empowered to direct theemployer for payment of simple interest on theamount of arrears i.e., amount of award @ 12% perannum or at such higher rates which do not exceedthe maximum lending rates of any scheduled bankas may be specified by the Central Government,from the date of default i.e., from the date ofaccident till the date of actual payment.

The percentage of permanent disability in respectof whole body or different parts of body of the injuredis different from loss of earning capacity of theinjured, to be examined and assessed by the doctorconcerned and by the Tribunal/Commissioner underthe Workmen's/Employees' Compensation Actrespectively. While awarding compensation underworkmen's/Employees' Compensation Act, theCommissioner is to award the amount ofcompensation on the basis of loss of earning capacityof the injured and not on the basis of percentage ofpermanent disability suffered by the injured as shownin the certificates issued by the doctor, as per lawsettled by the Apex Court.

H.D.F.C. Ergo General Insurance Co. Ltd. vs.Virendra Gaur & Anr. 2013 LLR 1098 (All. H.C.)

High Court will not interfere in the Award ofthe Compensation Commissioner awardingcompensation to the woman pertaining to death



of her son in an accident arsing out of andduring the course of employment.

Executive Engineer, Electricity Distribution Divison,Nakur, Saharanpur and Another vs. Mahipal and

Another. 2013 (138) FLR 602 (All. H.C.)

Appeal under Employees'/Workmen'sCompensation Act, 1923 itself is notmaintainable if no substantial question of lawis involved.

When the happening of accident andinjuries/disabilities suffered by the workman areproved by documentary evidence including medicalcertificate, the compensation awarded by theCommissioner would be justified. Presumptionadversely drawn against the employer is justifieddue to non-production of relevant records by theemployer to prove his version regarding age andincome of the workman.

Naba Kumar Roy vs. Swapan Kumar Dhara.2013 (3) LLN 554 (Cal. H.C.)

“Bhatta” would be part of wages.

The term "wages" includes not only the actualsalary payable to a workman but also any otherbenefit that can be considered to be in terms ofmoney, such as dearness allowance or any otherallowance, or any contribution paid towardspension or provident fund or any special expensesentailed on him by the nature of his employment.The amount of bhatta would be part of wages andthe Commissioner has fallen in error in not takinginto account the amount of bhatta as part of salaryfor the purpose of computation of compensation.

Rakesh Kumar Upadhyah vs. Shiv Singh and others.2013 (138) FLR 1038 (Chht. garh H.C.)

Employees’ Provident FundUnder section 7-A, when the order of the

authority indicates the calculated efforts tosubvert justice, demonstrating abject apathy, isliable to be set aside.

When the pleadings of the parties indicate thatthe quasi-judicial authority has made calculatedefforts to subvert justice for over a decade to harassthe petitioner, the order so passed is liable to be setaside being perverse, non-speaking, demonstratingabject apathy, refusal to apply mind. An ex-parteorder passed by the EPF Authority in haste withoutgiving opportunity of hearing to the employer isliable to be set aside.

Quasi-judicial authorities are duty-bound notonly to follow principles of natural justice inmaking enquiries but also to write down speakingorders with reasons, reflecting the decisions-makingprocess and proper application of mind by theconcerned authority.

Hindi Press vs. Regional Provident FundCommissioner and Ors. 2013 LLR 1021 (P&H H.C.)

Damages imposed cannot, at any stage ofdefault, exceed the amount of arrears.

Penalty under the Employees' Provident Fundsand Miscellaneous Provisions Act, 1952 and theScheme framed thereunder, to be imposed cannot, atany stage of default, exceed the amount of arrears.Penalty under the Employees' Provident Funds andMiscellaneous Provisions Act, 1952 and the Schemeframed thereunder, to be imposed, can be only uptothe rates of damages specified in the sliding table.Penalty is to be imposed by due adjudication makingcompliance of principles of natural justice. Anestablishment crippled with financial difficultiescannot be burdened with penal consequences as thesurvival of employer is equally important for theemployees too.

Section 7Q of the Employees' Provident Fundsand Miscellaneous Provisions Act, 1952 makes theemployer liable to pay simple interest at 12% perannum or at specified higher rates on delayedpayment of principal amount i.e. amount ofcontributions due (both employer and employees'shares) from the date on which the amount becamedue, till its actual payment. Officers/Authoritiesacting under various enactments have tounderstand the principle and purport of theenactment, comprehend the true import and spiritof adjudicatory powers conferred on them, whilemaking adjudication. An adjudicator, be it a welfarelegislation or otherwise, does not stand in the shoesof a recovery officer nor he is aimed at achievingfinancial targets.

Regional Provident Fund Commissioner vs.Harrisons Malayalam Ltd. 2013 LLR 1083 (Ker. H.C.)

EPF authority is expected to comply with theorder of the tribunal granting relief to theemployer.

Although the public authority like RPFC isexpected to be strict in recovery of the dues payableby the employer, but at the same time, it is alsoincumbent upon it that when a competent judicialforum grants some relief to the employer (assessee),the Authority has to comply within a reasonabletime, instead of filing a counter petition challengingthe order of the EPF Appellate Tribunal which lacksthe bona-fides of the APFC.

Shiva Industrial Security vs. Regional ProvidentFund Commissioner. 2013 LLR 1091 (Guj. H.C.)

Provident Fund contributions are to be paidregularly by the employers after allotment ofCode Number.

The respondent is a mercantile bank to which theprovisions of the E.P.F. & M.P. Act were madeapplicable. It was however noticed that therespondent bank was not complying with theprovisions of the Act. Hence the E.P.F. Organizationallotted a Code Number to it on 23.3.1999. Thereafterthe respondent bank remitted the payments of itsdues which had fallen due between April 1995 andFebruary 1999. Since there was a delay in payment,the petitioner E.P.F. Organization issued a showcause notice dated 20.6.2000 u/s. 14-B of the said Actcalling upon the respondent bank to show cause whydamages should not be imposed and recovered from




it. The reply given by the respondent bank wasfound not satisfactory by the petitioner. Hence theimpugned order dated 6.9.2000 was passed and theamount of damages was determined at Rs. 7,00,758/-.Feeling aggrieved thereby, the respondent filed anappeal to the Appellate Tribunal and the same cameto be allowed. Hence the writ petition was filed bythe appellant. The Single Judge dismissed thepetition. Hence the present Letters Patent Appealwas filed.

The Division Bench held that the respondentcould not deposit the amount as Code Number wasnot allotted to it and since the Code Number wasallotted in the year 1999, it paid the amount ofprovident fund for the period from April 1995 toFebruary 1999. Thus it cannot be said that therespondent bank has committed default whichwarranted it to pay interest as delayed remittances.Hence the appeal was dismissed.

Employees' Provident Fund Organization vs. SihorMercantile Co-op. Bank Ltd. CLR II 2013 P. 1072.

(Guj. H.C.)

E.S.I.Sales incentive will attract E.S.I.

contribution. City compensatory allowance willnot be wages under E.S.I.

Sales incentive paid to the employees by theemployer would form part of wages to attract ESIcontributions when the employer fails to prove thatit was being paid on the basis of an agreement withthe employees or that it was being paid unilaterallyand voluntarily at three months intervals.

City Compensatory Allowance paid by theemployer to employees to defray special expansesentailed on by nature of their employment and notby nature of place of posting, same would notconstitute as 'wages' to attract ESI contributions.

The primary liability for payment of ESIcontributions for the employees engaged by thecontractor (immediate employer) will be ofprincipal employer more so when the control andsupervision upon the employees of the Packingcontractor was being exercised by the principalemployer. When the principal employer is requiredto pay ESI contribution for the employees engagedthrough the contractor the law provides that therecovery can be made by the principal employerfrom the contractor.

K.P.L. Oil Mills (P) Ltd., Koungalloor Road,Irinjalkkuda, Thrissur District, rep. by its

Managing Director vs. Employees' State InsuranceCorporation, Regional Office, Panchdeep Bhavan,

North Swaraj Round, Thrissur-20, rep. by itsRegional Director. 2013 LLR 1038 (Ker. H.C.)

When employee on duty dies of heart attackin the premises or rest room, thory of notionalextension would be applicable.

When the insured employee dies of heart attackwhile on duty and he has no previous history about

heart ailment, his widow would be entitled todependent's benefits as stipulated by section 51A ofthe ESI Act. Theory of notional extension would beapplicable when an employee dies of heart attackwhile during the course of employment.

Bhagyashree Bharguram Mahadik vs. ESIC & Ors.2013 LLR 1106 (Bom. H.C.)

Fixed Term EmploymentTermination on expiry of the fixed term

contract will not be retrenchment under I.D.Act. The mere fact that appointment order usedthe expression “daily wages” does not make theappointment casual.

Termination of the workman, engaged on fixed-period as mentioned in the contract of appointment,would not amount to retrenchment sinceterminations are excluded by section 2 (oo) (bb) ofthe Industrial Disputes Act. When termination ofthe workman does not amount to retrenchment, thequestion of applicability of 25G providing forfollowing the principle of 'last come, first go' forretrenching the workman and also section 25Hproviding for re-employment of the workman wouldnot be applicable.

Bhavnagar Municipal Corporation vs. SalimbhaiUmarbhai Mansuri. 2013 LLR 1042 (S.C.)

GratuityMonetary penalties imposed upon the

employee in various disciplinary orders can berecovered from retiral benefits except gratuity.

Internal rules of the employer-corporationcannot prevail over section 4(6) of the Payment ofGratuity Act, 1972 i.e. statutory law. Employer canadjust penalties amount, if any, from other retiraldues except the gratuity. Forfeiture of gratuityamount has to effected only for prescribedeventualities as provided under section 4 (6) of thePayment of Gratuity Act, 1972.

Mahavir Singh Tyagi vs. Food Corporation of India& Ors. 2013 LLR 1016 (Delhi H.C.)

No scheme of the corporation shall runcontrary to the payment of Gratuity Act.Gratuity cannot be held merely becausevigilance case was pending against theemployee.

Power of the employer to forfeit gratuity is onlywhen termination of services of an employee is onthe basis of any act or wilful omission or negligencecausing loss or destruction of property belonging tothe employer that too only to the extent of damagesor loss so caused. No scheme for payment of gratuityshall run contrary to the provisions of the Paymentof Gratuity Act, 1972 in detriment to the employee.

As per provisions of section 7 (3A) of thePayment of Gratuity Act, the interest on delayedpayment is payable by the employer if the delay isnot due to any fault of the employee. When the



Gratuity Rules of a Company do not provide forinterest on delayed payment of gratuity, interest ondelayed payment will be attracted as per theprovisions of the Payment of Gratuity Act.

Kerala Land Development Corporation Ltd. vs.Raveendran. 2013 LLR 1024 (Ker. H.C.)

Industrial Disputes ActWhen the workman was denied

reinstatement as per award, labour court cancompute the value of benefit in terms of moneyarising out of denial of reinstatement undersection 33-C(2) of the I.D. Act.

If the employer fails to implement an Award, theworker can file an application under section 33-C(2)of the ID Act for computation of his correct wagesfor calculation of his correct arrears. The executioncourt cannot decide the disputed question about theage of retirement and the actual retirement.

It is well settled principle of servicejurisprudence that when an employee is appointedin an organization, the date of birth of the employeeis recorded in the registers of the organizationwhich eventually becomes part of the service recordof that employee, but such date of birth was notbrought forward at any stage hence the age recordedin the voters list is not the gospel truth and cannotbe relied upon.

Board of Directors, Allahabad Agricultural,Institute & Anr. State of U.P. & Ors. 2013 LLR 1094

(All. H.C.)

Application under section 33-C(2) is notmaintainable for claiming equal pay for equalwork.

Recovery of money due from an employer undersection 33-C(2) of the Industrial Disputes Actclaiming 'equal pay for equal work' would not betenable since there has been no determination ofIndustrial Disputes Act in the absence of referencefor adjudication.

Superintending Engineer & Anr. vs. Zile Singh &Ors. 2013 LLR 1104 (P&H H.C.)

When findings of the labour court inmodifying the punishment of dismissal intoreinstatement, are in contravention to theallegations, defence and evidence, will be liableto be set aside.

An Award passed by the Labour Court bymodifying the punishment of dismissal fromservices into reinstatement with full-back wages byexercising its power under section 11A of theIndustrial Disputes Act would be completelyerroneous, perverse and liable to be set aside whenthe findings of the Labour Court are totally incontravention to the allegations, defence andevidence on record. Acquittal in criminal casewould not affect adversely the finding in domesticenquiry as the standard of proof different incriminal case and domestic enquiry.

Cuddalore District Central Co-operative Bank Ltd.rep. by its Special Officer, No. 1, Beach Road,

Cuddalore - 607001 vs. Presiding Officer, LabourCourt, Cuddalore and Another.

2013 (3) LLN 748 (Mad. H.C.)

The real object of enacting S.9A of the I.D.Act is to afford an opportunity to the workmento consider the effect of the proposed changeand if necessary to represent their point ofview on the proposal.

The petitioner company has its corporate officeat Kolkata and factories at Gauhati and Hyderabad.The service conditions of the workmen were guidedby the General Service Rules, 1969 of the company.There was a dispute relating to the age of oneworker namely Aditya Kumar. It appears that thecompany calculated the age of superannuation withreference to the Rules of 1984. The grievances of theworkmen was that at no point of time the companyinfimated that another service rules were inexistence. Their further grievance was that theService Rules were prepared without the consent ofthe workmen. The new Service Rules of 1984 aimedat the age long right and service protection benefitsof the workmen which they had been enjoyingunder the Rules of Service, 1969.

The High Court held that one of the pre-conditions for invoking the provisions of S.9A of theI.D. Act is that the change contemplated in thesubsequent rules must adversely affect theworkmen. The necessary corrollory that followsfrom it is that if the changes are more beneficialthan the previous rules, S.9A has no application andmerely because the beneficial rules were notcirculated amongst the workmen, it could not beheld that the company was guilty of violating theprovisions of S.9-A of the Act. Hence that writpetition was allowed.

Bijoy Bouri vs. Coal India Ltd. & Ors.CLR II 2013 P. 992 (Cal. H.C.)

Lay-OffWhen lay-off declared by the employer is not

legal, proceedings initiated by the workmen torecover payment is justified.

The management of the petitioner maill declaredlay-off from 10.6.1995 to 25.6.1995 on the ground ofnon-supply of raw materials.

The Labour Officer informed the Deputy LabourCommissioner about it and on that basis the DeputyLabour Commissioner issued a notice to themanagement of the petitioner mill to show causewhy recovery to the tune of Rs. 2,28,000/- towardsloss of payment of 535 workers should not be madefrom the mill on the basis of the decision taken bythe Labour Court. It may be stated that the LabourCourt had earlier held that the reason for lay-off i.e.lack of raw material was not correct and that nolegal permission was taken for the said lay-off. Onconsidering the reply filed by the petitioner mill, theDeputy Labour Commissioner issued a Revenue




Recovery Certificate against the petitioner Millwhich was sought to be impugned by it in thepresent writ petition. It was contended that recoverycannot be made under the provisions of S.33-C (1) ofthe I.D. Act.

The High Court observed that this contentionwas misplaced. It was held that S.33-C (1) providesthat where money is due to a workmen from anemployer under the provisions of Chapters V-A & V-B of the I.D. Act and if the Government is satisfiedthat any amount is so due, it shall issue a certificatefor that amount in the manner as arrears of landrevenue. Chapter V-A and Chapter V-B deal with lay-off and retrenchment and as such any recovery forillegal lay-off comes within the provisions of thesaid Chapters. It was held that invoking jurisdictionu/s. 33-C(1) of the I.D. Act was just and proper. Hencethe writ petition was dismissed.

Mohan Jute Mills Ltd. vs. Dy. Labour Commissioner.LLN (3) 2013 P. 166 (Chht. garh H.C.)

MisconductDismissal justified for the misconduct of

preventing ingress and egress of willingworkmen and material, threatening andabusing supervisor being serious and grave.

Preventing ingress and egress of other willingworkmen, materials, extending threat toSupervisor/senior (s), using abusive languageagainst the Supervisor and indulging in strikedeclared as illegal are serious and gravemisconducts attracting dismissal from service to bejustified. After having found the domestic enquiryas fair, proper and holding the dismissal justified,Labour Court is not empowered to award monetarycompensation on humanitarian ground. Whendismissal from service is held by the Labour Courtto be justified, awarding compensation onhumanitarian ground is misplaced sympathy, notjustified.

The Management of M/s. V.G. Taxtiles (P) Ltd. vs.The Presiding Officer, Labour Court, Coimbatore

and Ors. 2013 LLR 1028 (Mad. H.C.)

Peaceful demonstration during lunch breakof bank will not amount to misconductwarranting disciplinary action.

Peaceful demonstration, as held by the officers ofthe States Bank of India between 2.00 PM and 2.10PM, will not amount to misconduct to warrantholding of enquiry and disciplinary action by theManagement and, as such, the Division Bench of theHigh Court held that the respondent (Managementof the bank) did not dispute that the right to hold ademonstration in a peaceful manner is within thescope of Article 19 of the Constitution of Indiahence the charge memo as issued by the State Bankof India have been quashed.

Demonstration of the employees of the bankwhen peaceful demonstration is protected by the Constitution of India, in its Article 19 (1) (c) andalso it will not be violative of Rules 50 (5), 50 (6) and

50 (7) of the State Bank of India Officers ServicesRules.

D. Thomas Franco Rajendra Dev & Another vs. TheDisciplinary Authority and Circle Development

Officer, State Bank of India, Chennai & Another.2013 LLR 1065 (Mad. H.C.)

ProbationerWhen the maximum period of probation is

neither in the employment contract nor instatutory laws, it should be around three yearsin education sector.

When employment terms in appointment letterdo not contain only the maximum probationaryperiod but requires confirmation order, statutorylaw does not contain maximum period of probation,termination of services of the employee/teacherduring her third year of service is not illegal.

When the maximum period of probation isneither in the employment contract nor in statutorylaw, the maximum probationary period in the case ofa teacher should ordinarily be around three years.When letter of appointment specifically states thatprobationary period will come to an endsuccessfully only by a specific order ofconfirmation, a probationer will not be deemed to beconfirmed till a specific confirmation order isreceived by him.

Till confirmation, the probationary period of aprobationer will be deemed to be extended whensuch a stipulation is there in letter of appointment.Maximum probation period of three years would bereasonable when such an outer limit ofprobationary period is not provided by statutory lawor contract of employment.

Hamdard Public School vs. Directorate of Education& Anr. 2013 LLR 1115 (Delhi H.C.)

Merely on expiry of the probation, theprobationer does not automatically standconfirmed. Express order of confirmation inwriting is necessary.

The petitioner Company engaged respondentNo.2 as Regional Sales Manager initially onprobation for a period of 6 months by an Order dated5.4.2008. The petitioner company did not find theperformance of respondent to be satisfactory andtherefore terminated his services by an order dated4.11.2008 by invoking probation clause in theappointment letter. The resplendent No. 2 made agrievance to the Prescribed Authority u/s. 28-A ofthe Rajasthan Shops and Establishment Act whichallowed his application and set aside thetermination order. Feeling aggrieved thereby, thepetitioner Company approached the High Court tochallenge that order.

One of the questions before the High Court was:"Whether on expiry of probation period of 6 months,respondent No.2 would be deemed to be confirmed inabsence of any specific written order ofconfirmation?" The High Court referred to the



condition of probation stated in the appointmentletter which inter alia reads: "...On successfulcompletion of the aforesaid period to oursatisfaction, your appointment will be confirmed inwriting." The High Court relied on several SupremeCourt decisions and observed that where a person isappointed as a probationer and a period of probationis specified, it does not follow that at the end of thesaid probation period, he obtains confirmationautomatically.

Continuation is service after extended period, heobtains confirmation requisite specific order, entitlethe employee to claim deemed confirmation. TheHigh Court further observed that the very object ofkeeping an employee on probation is to test hissuitability for the job and in case he is not foundsuitable, the employer certainly has power toterminate his services. In view of this position, thewrit petition was allowed.

Managing Director, Energetic Lighting (India) P.Ltd. vs. Presiding Officer, Shops and CommercialEstablishment, Jaipur & Anr. CLR II 2013 P. 1062

(Raj. H.C.)

Services of a probationary employee canalways be terminated by a non-stigmatic orderduring the period of probation.

The petitioner was appointed as a co-pilot onprobation in the respondent aviation company. Theprobation period was specified in the appointmentletter as one year. It was however made clear in thesaid letter: "During probation, your services may beterminated at any time without assigning anyreasons thereof by giving 30 days notice in writingor payment in lieu of such notice... "The petitioner'sservices were terminated by a letter without giving30 days notice. The petitioner therefore impugnedthe termination letter by filling the present writpetition.

The first contention was the termination was badfor want of 30 days notice. The High Court, however,rejected this contention by observing that the orderof termination is not vitiated on that ground only.At the most, the petitioner is entitled to get paymentin lieu of the notice. The second contention was thatthe petitioner was removed from service withoutany enquiry and hence there was violation of theprinciples of natural justice. The High Court did notaccept this contention also and observed that theimpugned order of termination of services is non-stigmatic and therefore there is no question ofviolation of the principles of natural justice. Hencethe petition is dismissed.

Aditya Beri vs. Air India & Anr. CLR II 2013 P. 849(Delhi H.C.)

PunishmentWhen the misconduct is of misappropriation

of public money, punishment of dismissal fromservice cannot be termed as shockinglydisproportionate.

The petitioner was a bus conductor with therespondent Corporation. He received a sum of Rs.170/- from the passengers and though the bus hadtravelled about 138 kilometers, he had not issuedticket to the passengers. He was served with acharge-sheet and a departmental enquiry wasconducted against him. He was held guilty and wasdismissed from service.

The petitioner carried the matter to the HighCourt and challenged the dismissal order on theground that the punishment was disproportionateand shocking. The High Court pointed out that thepetitioner had a blemished record of service as aconductor. During the span of two years of service,he was punished on seven occasions out of whichfive were for shortage of amounts. The High Courtwas therefore of the view that the misconduct of thepetitioner was very serious since it wasmisappropriation of public money. Hence thepunishment of dismissal in the circumstances,could not be called as disproportionate. Hence thepetition was dismissed.

Vikram Gopalsingh Zalpe vs. M.S.R.T.C.CLR II 2013 P. 942 (Bom. H.C.)

ReferenceWhen the employer agreed with the union

not to deploy contract labour on perennialnature of job, reference by the Govt. pertainingto engagement of contract labour will not beinterfered.

High Court will not interfere in the order orreference as made by the appropriate government toadjudicate the dispute about contract/casualemployee as engaged by the Management in place ofpermanent vacancy-moreso when it has been earlieragreed that such employee will not be engagedhence there is no question of regularisation of thecontract/casual labour.

When the Union has no locus standi, it is not forthe High Court to interfere at the initial stage whenthe reference was made since it can be decided bythe Industrial Tribunal.

M/s. Voltas Limited & Ors. vs. State of Maharashtra& Ors. 2013 LLR 1116 (Bom. H.C.)

ReinstatementReinstatement with back wages awarded to

the bus driver who was terminated forallegedly guilty of abusing and mis-behavingstaff members under influence of liquor.

Reinstatement, as awarded by the IndustrialTribunal in setting aside termination of the busdriver allegedly guilty of abusing staff membersand misbehaving under the influence of liquor, hasbeen rightly upheld by the High Court in the writpetition hence the Supreme Court would not




interfere. Instead of full back-wages, onreinstatement, the workman would be paid total Rs.5 lakhs and a sum of Rs. 3.6 lakhs is allowed to beadjusted.

U.P. State Road Transport Corporation vs. C. P.Goswami. 2013 LLR 1013 (S.C.)

When employee was terminated withoutpaying retrenchment compensation,reinstatement with back wages is longer a rule.

Reinstatement with full or partial back-wages isno longer a rule of thumb when the employer, at thetime of termination of an employee, has not paidretrenchment compensation and one month's pay inlieu of notice, hence compensation in lieu ofreinstatement with 50% back-wages would beappropriate.

High Court, in writs jurisdiction pertaining tochallenge of validity of an Award by the LabourCourt, has limited powers and cannot re-appreciateevidence and, as such, interference will be onlywhen the Award suffers from perversity or manifesterror of law and jurisdiction and, as such, if theAward is based on some evidence, the High Courtwould not interfere.

M/s. Bansal Udyog vs. N.C.T. of Delhi & Anr. 2013LLR 1051 (Delhi H.C.)

If the enquiry was found unfair andmanagement failed to make good the charges inthe labour court, reinstatement with backwages is justified.

When the workman has been dismissed fromhis service on the basis of finding in domesticenquiry, which while challenged by the workmanby raising an industrial dispute, is found to be notfair and proper being not done in proceduralmanner, setting aside the dismissal order by theLabour Court by awarding reinstatement with fullback-wages to the workman, is justified. If themanagement fails to make good the charges byadducing evidence before the Labour Court,quashing of the enquiry proceedings isappropriate.

Divisional Controller, North-Eastern Karnataka Road Transport Corpn., Bijapur

Division, Gulbarga vs. Abdul Shukur.2013 LLR 1103 (Kar. H.C.)

Reinstatement uncalled for by the courtignoring all vital legal aspects.

Order of dismissal of conductor, forunauthorised absence without explanation, setaside by Labour Court. Best opportunities given toconductor not availed by him at any stage. Notparticipated in enquiry. Ignoring all vital legalaspects the Labour Court ought not to haveinterfered with order of dismissal by directing toreinstate him.

The Labour Court, while exercising the inherentpower conferred under section 11-A of the Act,before setting aside the order of dismissal that was

passed for unauthorised absence, has not assignedto itself any good reason. Secondly, as highlightedabove, the employee did not even care to submit hisexplanation to any stage. Under this background,this court, finding fault with the routine and casualexercise of inherent power by the Labour Court, isinclined to interfere with the award of the LabourCourt in setting aside the order of dismissal passedagainst an unauthorised absentee. Therefore,finding fault with the approach adopted by theLabour Court, Salem in exercising thediscretionary power conferred under section 11-Aof the Industrial Disputes Act, the impugned awardis set aside.

Managing Director, T.N. State TransportCorporation Ltd., Dharmapuri-5 vs. M . Subramani

and another. 2013 (138) FLR 1071 (Mad. H.C.)

RetrenchmentTermination of services of a daily wager,

who worked for more than 240 days inprevious calender year without compliance ofS.25-F of the I.D. Act is illegal and cannot besustained.

The respondent was working as daily rated LabAssistant with the Horticulture Department of ZilaPanchayat. His services were terminated. Hence heraised an industrial dispute rather belatedly. TheLabour Court declined to entertain the reference.The respondent carried the matter to the HighCourt. The High Court considered mainly the issuethat the respondent worked for more than 240 daysin the year preceding to his termination and the hewas not given neither the notice nor retrenchmentcompensation. The High Court therefore directedhis reinstatement though without his back wages.Hence the aggrieved appellants - Director ofHorticulture filed the present appeal in the SupremeCourt by special leave.

The Supreme Court observed that there was abreach of condition u/s. 25-F of the I.D. Act andtherefore the High Court's order cannot be faulted.It was pointed out that the prayer for interim reliefwas specifically rejected and as such therespondent must have been taken back on dutywith continuity of service. The appeal wastherefore dismissed.

Director of Horticulture & Anr. vs. H. A. Kumar.CLR II 2013 P. 863 (S.C.)

A part-time worker is also entitled toprotection of section 25F of I.D. Act.

A Part-time is equally protected by the provisionsof Industrial Disputes Act hence his terminationwithout complying with the provisions of section25F of the Industrial Disputes Act would be illegaland as such he will be paid Rs. 1 lakh ascompensation.

Sohan Lal Workman vs. Addl. District and SessionsJudge and Others. 2013 LLR 1056 (P&H H.C.)



When removal of the name of employee frommuster roll is not specified as punishment inthe certified standing orders, it would amountto retrenchment.

When removal of the name of petitioner-workman has not been one of the punishments inthe Certified Standing Orders, such removal wouldamount to retrenchment and the employer is tofollow the provisions of section 25F of the IndustrialDisputes Act providing for payment ofretrenchment compensation and giving one month'snotices or pay in lieu thereof and, as such, theworkman will be entitled to reinstatement with 30%back-wages.

T. Kandasamy vs. Presiding Officer, CentralGovernment Industrial Tribunal-Cum-LabourCourt, Chennai and Another. 2013 (138) FLR 758

(Mad. H.C.)

SuspensionThe claim for suspension allowance by a

workman, cannot be rejected in the absence ofany circumstances which justify the rejection.

The petitioner was an employee in therespondent company. There was a criminal casefiled against the petitioner and for avoiding hisarrest, he absconding and not attending his duty. Hewas therefore suspended and later after enquiry hewas dismissed from service. It appears that beforehis dismissal, the petitioner claimed suspensionallowance for the period between 15.7.1986 and30.11.1988. But his claim was rejected by the LabourCourt which held that the petitioner would beentitled to get suspension allowance only for thedays he got his attendance marked in the office.Hence the aggrieved petitioner filed the present writpetition.

The High Court observed that the impugned orderwas based on the alleged abscondance of thepetitioner. The provisions contained in clause 27.2.2.of the Certified Standing Orders clearly prohibit thesuspended workman from entering upon the workpremises except with the permission of themanagement. But the registration of the criminalcase would not raise a presumption that the petitionerwas absconding. The alleged abscondance of thepetitioner would have no bearing on the entitlementof the petitioner for suspension allowance. It waspointed out that there was no finding of the LabourCourt with regard to the declaration to be submittedby the petitioner in terms of clause 27.2.4 that duringthe suspension period the petitioner had not engagedin any other employment, business, profession oravocation. Hence the petition was allowed.

Raj Ballava Singh vs. Presiding Officer, LabourCourt, Dhanbad & Ors. CLR II 2013 P. 1079 (Jhar.

H.C.)

TransferPersonal difficulties are no ground to stall

transfer. If transfer is to be effected as per

convenience of an employee, no organisationcan function.

An employer knows the best as to how and wherethe services of an employee can be used moreeffectively. Personal difficulties including old age ofparents of daughter's marriage in the near futureetc. are no ground to stall transfer. If transfer is to beeffected as per convenience of an employee, noorganisation can function. Transfer of an employeecannot be stalled unless any legal right of theemployee is adversely affected or the same is not asper employment contract. Transfer of an employeeis effected due to many reasons keeping in view theinterest of the organisation. Necessity of transfer ofan employee is to be decided by the employer.

Sudhir Pathak vs. Indian Oil Corporation & Anr.2013 LLR 1015 (Delhi H.C.)

When employee remained absent on medicalground and did not report at transferred place,his termination without enquiry will result intoreinstatement. Transfer cannot be stalled onthe ground of personal or family difficulties.

If the transfer of an employee has been made tomeet the business or administrative exigencies,personal or family difficulties or even languageproblem, are no ground to stall transfer. When anemployee himself remained absent from reporting forduty at the place of transfer, the is not entitled to back-wages. If an employee has been terminated, by way ofpenalty for committing any misconduct includingunauthorised absence from duty, without holdingdomestic enquiry, proving the charges against him byfollowing the principles of natural justice, the LabourCourt would be justified in awarding himreinstatement with or without back-wages.

Sitra Employees' Union vs. The Presiding Officer,Labour Court, Coimbatore and Anr. 2013 LLR 1058

(Mad. H.C.)

Transfer under written agreement withunion will not attract section 9A of the I.D. Act.Security guard or general service assistantdrawing salary from eighty thousand to onelakh cannot be termed as low paid employee.

Since transfer of an employee from one place toanother, in public sector undertaking, is an incidentof services, the transfer of employees from kandlato Ajmer, getting monthly emoluments from Rs.80,000 to Rs. 1,00,000 irrespective of theirdesignation being Security Guard or GeneralService Assisstant Cluster-A, is justified as suchemployees cannot be termed as low-paid employees'.

When transfer of services of employees has beeneffected on the basis of written agreement enteredinto with the recognized union, there is no occasionfor giving Notice under Section 9A of the IndustrialDisputes Act by the employer regarding change ofservice conditions.

When the employees were transferred beforeraising of industrial dispute before the ConciliationAuthority, that too on the basis of writtenagreement with the recognized union, such a




transfer is not violative of Section 33A of theIndustrial Disputes Act.

Not permitting the transferred employees toperform duty at the place from where transferredcannot be termed or apprehended as lock-out by theemployer qua the petitioners/employees so as toattract Section 22 (2) of the Industrial Disputes Act.

Bharatsinh Chanubha Zala & Ors. vs. HindustanPetroleum Corporation Ltd. & Anr. 2013 LLR 1077

(Guj. H.C.)

Transfer cannot be avoided on frivolouspretexts.

The petitioner is a college lecturer. On 25.6.2010she was transferred to government college, Shimlaand worked there till July 2012 and thereafter shewas transferred elsewhere. The petitionerchallenged the transfer order on the grounds thatshe has not completed her normal tenure of 3 yearsat the present station and that she was transferredonly to accommodate respondent No.3. In reply,respondent No.3 submitted that she had maderepresentation to the authorities foraccommodating her at Shimla in view of certaindifficulties.

The High Court observed that every employeehas a right to represent to the departmenthighlighting his/her grievances and it is the duty ofthe employer to consider the same. At the same time,the employee has no right to remain at a particularstation of his choice, nor he has a right to dictate theemployer as to who should be transferred to whatplace.

The High Court pointed out that as between thepetitioner and respondent No.3, the petitioner hasno comparative difficulty. In the instant case, it wasobligatory on the part of the petitioner to join at thenew posting and she cannot avoid her transfer anfrivolous grounds since her transfer was in thepublic interest and efficiency of publicadministration. Hence the petition was dismissed.

Anjana Sood vs. State of H. P. LLN (3) 2013 P. 218(H.P. H.C.)

U.P. Industrial Disputes ActWhen a worker himself kept away from

work, the provisions for compliance ofcondition precedent for retrenchment wouldnot be applicable.

Basant Lal Verma vs. State of U.P. and Others.2013 LLR 1033 (All. H.C.)

In order to determine whether anestablishment is an 'industry' under section 2(j)of the Industrial Disputes Act, dominant naturetest is to be applied and, as such, the IrrigationDepartment of the Government will be an'industry'.

State of U. P. vs. Labour Court II, U. P., Kanpur andAnother. 2013 (138) FLR 596 (All. H.C.)

When workman completed 240 days and wasnot paid retrenchment compensation, rejectionof dispute by court is not proper.

Rejection of a dispute raised by the petitioner-workman challenging his termination, not properby the Labour Court, since it has been overlookedthat the workman has worked for more than 240 daysand also he has not been paid retrenchmentcompensation as required under the law besidesthat the principle of 'last come, first go' has also notbeen followed while terminating his services.

Umesh Chandra vs. State of U. P. and Others.2013 (138) FLR 591 (All. H.C.)

WorkmanOnly the employees engaged to do any

manual, unskilled, skilled, technical,operational, clerical or supervisory work in theindustry can claim to be 'workman' u/s.2(s) ofthe Act.

The petitioner and his colleagues weresportsmen and had at one time excelled in hockey.On account of their excellence, they were engagedby the JCT Mills to play hockey for them at the statelevel and national level under the brand name JCTHockey Team. They were essentially engaged tobring goodwill to the company and promote itsbrand name and thereby promote the sale of itsproduct. After some time, the hockey brand nameand thereby promote the sale of its product. Aftersome time, the hockey team was disbanded onaccount of low performance. They were given thewholesome designation of officers and AssistantOfficers. On the team being disbanded, thepetitioner and others raised an industrial disputewhich was referred to the Labour Court foradjudication. The Labour Court held that the hockeyplayers engaged by the management were notworkmen and therefore they had no industrialrights and their disengagement without complyingwith the provisions of S.25-F of the Act was in order.Hence the present writ petition.

The High Court observed that the petitioner andhis hockey team mates were not engaged to do anywork directly relating to promotion of sales orbusiness but they were engaged to promote thebrand name of the respondent company as anemblem and enhance the prestige of the employer.They were not engaged to do any manual, uskilled,skilled, technical, operational or supervisory workin the industry at all. Their specialised employmentwas beyond the pale of industrial employment.They were not the part of the workforce engaged forthe production of goods or services at Phagwara.The remedy, if any, would not lie within theadjudicatory machinery established under labourlaws. Hence the petition was dismissed.

Harpreet Singh vs. Presiding Officer, IndustrialTribunal Jalandhar & Ors. CLR II 2013 P. 1056

(P&H H.C.)



Courtsey - Labour Law Reporter,FLR, CLR , LLJ & APS Labour Digest

BM

There is a great need to change theprocedure of the domestic enquiries sothat it can win the confidence and instillthe sense of impartiality and justiceamong the employees. Although there is

no provision, much less any procedure of holdingthe enquiries into the alleged misconduct of anyemployee before taking any action like thesuspension or dismissal, yet it has been seen thatLabour Courts and Industrial Tribunals have setaside the punishments when they have found theenquiries to be vitiated.

Here it must be mentioned that in thedevelopment of legal system, the decisions of theCourts play a very important role, particularly theratio decidenting verdicts. Sometimes, obiter dictaverdicts also help to arrive at a plausible conclusion.That is why in spite of the absence of the provisionsof the domestic enquiries in the Industrial DisputesAct, the domestic enquiries have now becomealmost obligatory for every employer.

There is maxim, 'Nemo debet esse judex in propria

causa' i.e. nobody should be condemned unheard.This principle applies not only to judicialproceedings but also to quasi judicial andadministrative proceedings. In view of this, theneed of the domestic enquiries is fully justifiedbecause they are held in accordance with theprinciples of natural justice. In domestic enquiries,a chance is given to the person against whomcertain actions are proposed to be taken, to defendhimself and tell the Enquiry Officer that theproposed punitive action is unreasonable or out tothe proportion to his misconduct.

As of today, most of the industrial disputesbefore the Labour Courts/Tribunal, pending foradjudication, pertain to dismissal and discharge ofworkmen. Gone are the days when employer coulddispense with the services of an employee at hiswhims and fancies. With the disappearance of theprinciples of laissey faire which were governing therelationship between an employer and employee, amemployer cannot dismiss or discharge an employeehowsoever undisciplilned, undesirable or unwanted



H.L. KUMAR,Advocate, Supreme Court, New Delhi

The Enquiry Officer, howsoever impartial he may be, does not inspire the confidence ofthe delinquent workmen. This feeling frustrates the very essence of natural justice.Therefore, it is necessary that the law should provide a 'panel of Enquiry Officers'.

Need for panel ofIndependent EnquiryOfficers

he may be. The current labour legislation, judicialpronouncements which have for their objective theamelioration of the lot and the betterment of theservice conditions of the working class, have to agreat extent, restricted rights of an employer andsecured, to the corresponding extent, the jobsecurity of a workman.

Disciplinary proceedings in private employment,a domestic enquiry is that of mistrust which arisesessentially because the charge-sheet is given by theemployer and the enquiry is also held by an officeror an outsider appointed by the employer. Theemployer, as such, represents the both, theprosecutor and the judge. A suspicion of bias isinevitable in such a situation. This is the mainreason that the delinquent employees do not havefaith in the Enquiry Officer. They participatereluctantly and take every possible step to frustratethe enquiries. They raise number of objectionsincluding that of the validity of the appointment ofEnquiry Officer. They also demand to berepresented either by a lawyer or the union leaders.They ask for number of the documents, whetherrelevant or not. Also the delinquentemployees or their representatives do notrestrict the cross-examination of thewitnesses and the Enquiry Officerhas to take decision under the givencircumstances.

As and when any enquiry is to beinitiated against a delinquentemployee, the employer is in adilemma as to who should beappointed an Enquiry Officer -particularly when there is no suchofficer in the establishmentconversant with the procedure ofenquiry or that the officers are notinclined to take up the responsibilityin holding the enquiry. Mostly, theyapproach their Advocate or theLabour Adviser for holding ofenquiry.

The Advocates are, by and large,conversant with the laws asprevailing and under normalcircumstances there is no such bar. InBiecco Lawrie Ltd. & Anr. vs. State ofWest Bengal & Anr., 2009 LLR 1057, theSupreme Court has held that anAdvocate of a Company can be anEnquiry Officer and no bias can bepresumed. It is alright to an extent butpreferably the enquiry should not beheld by the Advocates who are torepresent the employer before the Labour Court/Industrial Tribunal or the High Courtparticularly in a case where he hasheld the enquiry.

Needless to reiterate that the

Enquiry Officer should not be biased provided theEnquiry Officer is impartial. The element of 'bias'has been a subject matter of judicial interpretationsalso. In this context, reference is made to the case ofM/s. Luxco Electronics (Paper Cone) vs. P.O.,Industrial Tribunal - 1, Allahabad & Ors., 2004 LLR461, wherein the Allahabad High Court has held thatthe bias of the Enquiry Officer can be inferred whenhis son has been representing the Management inthe instant and also in the other cases. In anothercase, Taj Mahal Hotel vs. Industrial Tribunal - 1 &Ors., 2010 LLR 1077, the Delhi High Court hasobserved that the Industrial Tribunal has rightlyheld that the Enquiry Officer, being a lawyerbelonging to a lawyers firm who has been associatedin the process of disciplinary proceedings rightfrom suspension of the employees, will not beimpartial and his bias will be presumed because alegal advisor would not allow that his legal advice,being rendered, as wrong. (This is challenged beforethe Division Bench also)

Since the employees have preconceived feelingthat the Management has already taken a

decision to get rid of him and theenquiry is only a postmortem to

comply with the legal formalities,the Enquiry Officer, howsoeverimpartial he may be, does notinspire the confidence of thedelinquent workmen. This

feeling frustrates the veryessence of natural justice.

Therefore, it is necessarythat the law shouldprovide a 'panel ofEnquiry Officers' whomay be, amongstretired judges, labourofficers. They shouldbe empowered withsemi-judicial powers

while holding ofenquiries and be vested

with the powers to (a)enforcing the attendance of

any person or examininghim on oath, (b) requiring the

discovery and production ofdocuments, (c) receiving evidence

on affidavit, and (d) issuingcommissions for the examination of

witnesses. As a result of suchenquiries, the weightage will be given

to the findings of such Enquiry Officerand the number of industrial disputes

will be considerably reduced since theparties will know their fate on theconclusion of enquiries. A panel beconstituted for holding of enquiries. Suchenquiries will generate a sense of trust andconfidence among the workers andemployers alike.


Need for panel of Independent Enquiry Officers

BM


Trade Unions submit their charterof demands to the Managementand the Management agrees to

their proposals either in total or partialdepending up their paying capacity, etc.This is an established practice formaintaining a better harmoniousrelationship. In this case study, theManagement requests the Union toconsider their proposal and cooperatewith the Management to increase theproductive hours put up by theemployees, while negotiating with theUnion. This proposal was received bythe Union in a positive manner and afterdiscussing with their Union CommitteeMembers and employees, the proposalwas accepted by the Union and theirproductive hours increased. The Union-Management relationship is highlycommendable.

M/s. Sohan Industries, situated inMadhya Pradesh, is a big Company with3,200 employees on their role. ThisCompany started in 1972. A trade unionwas formed by their employees,affiliated to INTUC, and was recognizedby the Company in 1980. Therelationship between the employers andemployees was cordial and they did nothave any industrial relations problem.According to their agreement, thewages were being revised after everyfive years.

There has been a practice in theindustry almost since its inception thatworkers in 'A' shift (6-00 A.M. to 2-00 P.M)used to enter the Works at 6-15 A.M.The employees would punch theirtickets at the Time Office, situated justby the side of the Main Gate and used toreach their place of work leisurely,without any tension for their late

coming. It was almost 7-00 A.M. whenthey used to start their actual work.This was a daily practice for majority ofemployees, except for a few. TheStanding Orders clearly mentioned thata grace time of 15 minutes would beallowed only on exigencies and morethan three times in a month wouldcause for disciplinary action.Unfortunately, this rule was not beingimplemented from the beginning andbecame a part of their culture. At theend of their shift also they used to leavetheir place of work by 1-00 P.M., go totoilet, search for cotton jute to washtheir hands, comb their hair, etc. beforereaching the Main Gate, punch theircards and were ready to go home by 1-45P.M.

The Main Gate would open by thistime to let the 'A' shift employees go.Similarly, employees who were in 'B', 'C'and General Shift (7-00 A.M. to 4-00 P.M.with one hour break for lunch) wouldreport for their work late. Someemployees were in the habit of cleaningtheir two-wheelers in the factory withinthis time only.

The Management was very critical inthis matter and was helpless to stop thisbad practice. In the past, someexecutives wanted to correct this but itbecame a sensitive issue. Due to heavy

competition in their field, theManagement introduced severaltechnological improvements to reducethe cost of production. This was notenough. The M.D. gave a seriousthought on the late-coming issue andappointed a Consultant, an MBA degreeholder IIM, Kolkata, to go through thewhole subject and suggest remedialmethods.

After a couple of months, theConsultant submitted his report. Thestudy revealed that the productivehours of the employees, who wereregular late-comers, were only four tofive hours in a shift of 8-hours. The badpractice posed a big problem to theManagement. The cause for the wholeissue was the slackness on the part ofthe shop supervisors earlier who were abit reluctant to ask the employees toreport on time at the place of work.Slowly, other employees andparticularly the new employees learntthis bad habit from their seniors andcolleagues. The new employees,initially, would experiment to come late.As their supervisors were not taking them into task seriously, theywere also falling in line with their oldcolleagues.

In the year 2002, their previous wageagreement expired and preparations

Experts are invited to send solutions. Best will bepublished.

Ideal Industrial Relationship

PROF. RAVI DHARMARAOProfessor & Head-HR Emeritus,

ICBM-School of Business Excellence , Hyderabad

QUESTIONS FOR DISCUSSION

1. What is the importance of this Case Study?2. What were the reasons for low-productivity of workers?3. When Union behave in a responsible manner?4. What are the main causes for ideal industrial relations?



were going on for a new WageAgreement to be signed with theirrecognized Union. This time, theManagement had decided to bring to theknowledge of the Union to improve theproductive hours being put up by theiremployees. The M.D. had a brainstorming session with all his executivesin camera. The Consultant's Report was the main agenda in thatmeeting. On the request of the M.D. theConsultant attended the meeting andsuggested some positive solutions to theproblem.

This time, the Union prepared a longcharter of demands particularly forintroduction of some new welfaremeasures which, if Management accepts,would be an additional financial burdenon the Company. The hike in their wageswas also a necessity. Discussions startedwith the Union on their charter ofdemands. And in a span of three months,almost all their demands were met. TheUnion was happy.At this time, theManagement raised the issue of latereporting of employees and the

subsequent loss of productive hours.They convinced the Union that it was notpossible any more to bear this additionalfinancial burden by the Management andrequested the Union to think deeply whatthey could offer to the Management.

It was not necessary every time thatManagement would only give additionalbenefits to the employees, but the Unionalso could play an important role to offersomething to improve the productivityand for the benefit of employees at largeand the industry. Initially, the Unionwondered what they could offer. TheManagement raised the topic of latecoming of employees, loss of productionhours, the results of the study and otherrelated matters.

The Union Members received themessage positively and wanted sometime to give their opinion. They alldiscussed with their CommitteeMembers. This time, in the new WageAgreement, many more benefits to theemployees were on the way. They allknew that after the agreement, almost all

employees would be quite satisfied. TheUnion, therefore, considered that thiswas the right time to stop the badpractice of late coming and agreedunanimously in their committee meetingto offer to stop this menace once and forall. In a reasonable span of time, allemployees were slowly convinced by theUnion and expressed their willingness tocooperate with the Management whole-heartedly to stop the bad practice.

In their new wage agreement signedin the last part of 2002, the offer of theUnion to increase the productive hoursby stopping the menace of reportinglate to duty was also incorporated. Witheffect from 1st January 2003, the wageagreement was implemented totallybenefiting the employees and theorganization. The rule with regard tolate coming as mentioned in thestanding orders was implemented in itsright spirit cordially. The employees'late coming to the factory and the loss ofproduction hours was a story of yesteryears.

MIHIR GOSALIA

Assistant Manager - ISO &OHSAS, Kesari Tours Pvt Ltd.,Mumbai

This Case Analysis refers to Case Study‘Focusing on recruitment policy’ published inOctober 13 Issue

Policy of Recruiting right in the key1. Critical analysis of therecruitment policy of thecompany:

The new HR Head, Stanley Joseph,after reviewing the existing status ofthe company rightly decided to focuson the recruitment policy sincerecruiting the correct manpower is thefirst and foremost step towardsbuilding a professional company.Companies must recruit, hire, place,and retain employees who will meet

skill requirements required to positionit for future success. Obviously,recruiting the right employee is a keyfactor in high performance.

The company also has manpowerplanning system in place whichsupports the overall strategy. Howeverwhether those plans address potentialchanges in manpower capability andcapacity is not understood from thepolicy. Many a times, in order toexecute the company's strategicbusiness plans, the employee's mustpossess skills, knowledge, or abilities

that they do not currently possess.Without appropriate plans to develop,acquire, or motivate the employeesnecessary to carry out desired actions,the company may not be able to achieveits business objectives. The employeesmay not have the skills, knowledge, orabilities to carry out the actionsrequired for success in the future.

Another observation regarding therecruitment policy is that it does notstate whether before recruitment,immediate successor is considered forthe vacant position. In case the

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successor is not available, thenwhether suitable candidates areidentified within the existing staffacross various levels. In case the sameis not available then only outsiderecruitment to be done.

The recruitment policy objectivesstates that for recruitment; jobdescription, competency level,experience and nature of work islooked into. This should be availablefor each position.

The recruitment policy states thatall employees with prior workexperience will be on probation for aperiod of one year while new recruitswill be on probation for a period of oneand half years. It could look at revisingthe probationary time period to threemonths for experienced employees andsix months for new recruits or freshers.Probation periods are usually dayswhere extra feedback is given andemployees are warned that they can beterminated.

2. Is the organizationtapping all the channelsfor recruitment? What arethe other channels ofrecruitment?

The recruitment policy has listedvarious channels of recruitment likeInternal Resources, EmployeeReferral's, Open Recruitment throughnewspaper advertisements andmagazines, universities andeducational institutions for recruiting freshers, display oncompany notice board and placementconsultants.

It could look at Job Portals likeNaukri and Monster as one morerecruitment channel. There is alsonowhere mention of the Company'sWebsite / Career's Section as anotheralternative recruitment channel whichcould be looked into as well. Therecruitment channels can be furtheraugmented by tapping into various costeffective resources like LinkedIn - aprofessional networking site, YahooGroups, etc…This would also ensure awider brand visibility and enhance thequality of relevant staff recruited,apart from significantly lowering therecruitment costs.

3. Suggest the requiredchanges, if any, in therecruitment policy of thecompany:

The recruitment policy of thecompany could mention as to how itwill ensure that the staff recruited

represents the diverse ideas, cultures,and thinking of the hiring andcustomer community. The staff shouldnot only reflect the diversity of thehiring community but also thecustomer community. By failing toreflect the customer community, thestaff may find it difficult to developand support strong customerrelationships and customerengagement. This may erode customerconfidence and loyalty.

As per the recruitment policy,Manpower plans are preparedannually for each department byrespective department heads alongwith the annual budgeting process,approved by the CEO and monitoredfor implementation by HR Head, apolicy could be in place for reportingManpower Summary on monthly basisto the CEO from HR Head thatcaptures critical data points likeManpower variances, Manpower ratio,churn, etc…Review of the report willensure that all critical operations ofthe company are adequately staffedand geared in line with the growthplans.

Pre-joining: The recruitment policycould also include details onprocedures to be followed once thecandidate is selected and an offer letteris to be given.

Induction: Before putting on the job,details about induction program to beconducted for all newly recruitedexecutives could be a part of therecruitment policy. Example: 2 weekclassroom training sessionsinterspersed with behavioralworkshops and other interactivesessions.

Exit Interviews: Herein the detailsto be mentioned in the policy could beon How Exit Interviews are conductedfor each resigned staff and HowAnalysis of exit interviews are carriedout to ensure that the attrition patternsare analyzed and adequate controlmeasures framed.


In case of non receipt of the copy, Please mail inthe same month to get the free replacement.

Attentio

n Subscr

ibers

E-mail : [email protected] Mob.: 09785585134 Ph : 91-144 - 2372022

The staff should not only reflect the diversity of the hiring community but also the

customer community.

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Law & Management

Essentials ofHuman RightsAuthor : Raj Kumar GuptaPublisher : Universal LawPublishing Co. Pvt. Ltd., A-58, G.T.Karnal Road Industrial Area, (NearAzadpur Metro Station),Delhi-110 033Price : Rs. 295/- Website: www.unilawbooks.com

IntellectualProperty LawAuthor : Avtar SinghPublisher : EBC Publishing (P) Ltd.,34-A, Lalbagh, Lucknow-226 001Price : Rs. 410/-Website : www.ebc.co.in

ModelAppointmentLetters &Service RulesAuthor : H.L. KumarPublisher : Universal LawPublishing Co. Pvt. Ltd., A-58, G.T.Karnal Road Industrial Area, (NearAzadpur Metro Station),Delhi-110 033Price : Rs. 325/- Website: www.unilawbooks.com

This concept of property has assumed special importancebecause of the budding needs and application of innovationsin the business world. Things covered by intellectual propertylegislation are creations of the mind. The creation by the legalsystem of intellectual property rights for providing them dueprotection has now become a sizeable part of legislativeactivity running into seven major Acts, namely Trade MarksAct, Copyright Act, Patents Act, Geographical Indication ofGoods Act, Designs Act, Biological Diversity Act andProtection of Plant Varieties and Farmers' Rights Act. Some ofthese Acts, particularly Trade Marks Act, Copyright Act andPatents Act are revised or amended version.

Intellectual Property Law by Dr. Avtar Singh is a scholarlywork covering all the aspects of the subject including the latestdevelopment in the field in India and abroad.

This book addresses a host of difficult, complicated andcontroversial concepts in such a way that even a beginner willhave no difficulty in understanding the intricacies of thisgrowing branch of law. It also brings out several unexploredand evolving dimensions to further enhance theunderstanding of the subject.

Overall this book will prove to be of great help to students,academicians, IP professionals, industrialists, lawyers, judgesand those interested in the study of IPR.

There is no provision under the Factories Act or the Rulesproviding for giving appointment letter to a worker. Most ofShops & Establishments Acts of various States don't stipulatesuch a condition. Nevertheless, it is always desirable for anemployer to issue appointment letter spelling out the terms andconditions of service. So far as leave are concerned, unlike theFactories Act, there is no unanimity and the conditions foreligibility, entitlement, accumulation of leave differ from oneState Act to another. Hence it is desirable to state in theappointment letter, that the employee will be entitled to leave asper the Shops & Establishments Act of the State where he/she isworking.

The importance of the appointment letter can be understoodthat whatever conditions have been enumerated in it, these canneither be changed nor withdrawn by the employer.

This book is a further improvement on its earlier editions to meet the requirements of those who have to manage people at work, law students at the graduate and post-graduatelevel and advocates/HR Executives by explaining theimplications of labour laws with emphasis on readymade draftswhich are generally needed. Given to its practical andapplication-oriented approach, it will be much more useful forprofessional engaged in consultancy and imparting training toexecutives.

The author in this book has dealt with the different facets ofhuman rights that could and should be made available to allhuman beings, with particular reference to India. He has dealtwith the historical development of the concept of human

rights and their violation throughout history. Mr. Gupta hasalso dealt with human rights and their impact on women andchildren, religious harmony, education, preventive detention,physically disabled people and even people who are infectedwith the HIV Syndrome. That apart, Mr. Gupta has dealt withhuman rights and the rule of law and has very appositelyreferred to the rule of law being the foundation of the Indianlegal system.

The author has referred to the various conventions whichhad impacted world society at large. While referring to theFrench Declaration of Rights and the American Bill of Rights,he has also referred to the various Conventions anddeclarations of the United Nations.

The book contains reference to the basic laws relating tohuman rights and their violation, within its covers. It will beuseful to all people, who are in any way involved in humanrights activities, in understanding the concepts of humanrights and the solutions available where they are violated, therole of the National Human Rights Commission, as also thejudiciary, in the protection of human rights.

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Management/Labour Law Books Publishers & Authors are welcome to send their books for review publication.

Management & Labour Law

Practical Guide to

ContractLabourAuthor : H.L. KumarPublisher : Universal LawPublishing Co. Pvt. Ltd., A-58, G.T.Karnal Road Industrial Area, (NearAzadpur Metro Station),Delhi-110 033Price : Rs. 425/- Website: www.unilawbooks.com

PRODUCTIONANDOPERATIONSMANAGEMENTAuthor : Kanishka BediPublisher : Oxford University Press,YMCA Library Building, 1 Jai SinghRoad, New Delhi-110 001Price : Rs. 575/-Website : www.oup.com

Digest of

Labour Cases1990-2013

Author : H.L. KumarPublisher : Universal LawPublishing Co. Pvt. Ltd., A-58, G.T.Karnal Road Industrial Area, (NearAzadpur Metro Station),Delhi-110 033Price : Rs. 1295/- Website: www.unilawbooks.com

This subject area seeks to understand, examine, and optimizethe processes practised at organizations. Product and processdesign, operations, and supply chain are some key aspects ofproduction and operations management. The field includesthe areas of facility location planning, product development,production and lean manufacturing. The field includes theareas of facility location strategies. The book has been revisedkeeping in mind new developments in this area. The textcontinues to provide a well-defined approach to productionand operations management. It strives to lucidly explain eachtopic, particularly those requiring statistical/mathematicaltreatment. This edition features several new case studies thatdemonstrate the inter-linkages of operations with otherfunctional areas of management. The professional journeys ofmany business luminaries have been included to allow thelearners to have a glimpse of the management of operationalong with other functional areas during the formative yearsof a business enterprise. The text provides in-depth coverage oftopics such as aggregate planning, work design, demandforecasting, and operations scheduling. The book has beenrevised to provide students with the contemporary approachesin the field. It is imperative for the students to understand thatoperations cannot be managed in isolation and their closerelationship with marketing, finance, human resources, etc. shouldbe understood properly in order to manage them effectively.

The size of this revised edition and the table of cases will tellthe readers at a glance, that the book covers a wide range ofcases pertaining to labour-related laws. The main object ofthis digest is to place before the employers, employees, tradeunions, labour law practitioners and advisors and thoseconcerned with labour laws and compliances of labour-relatedActs. The book carries an analytical study of topics such asawarding back-wages, accident compensation, condition ofservices, dismissal, suspension, punishment, disciplinaryproceedings, gratuity, retrenchment, wages transfers andtrade unions and various industrial enactments like, theEmployees' Provident Funds & Miscellaneous Provisions Act,Contract Labour (R&A) Act, etc. etc.

The topics have been alphabetically arranged and synopsisof important headings has also been appended. An exhaustivelist of contents of the subjects dealt with is also given. Thecases which have been either over-ruled or have becomeredundant have been deleted. The brevity has been primeconsideration by emphasizing the ratio decidendi. It would bea great time-saver for the professionals and as a readyreferencer. It is hoped that this Digest of Labour Cases willprove to be an indispensable companion for all those who areconcerned with labour, particularly Industrialists, FactoryOwners, Corporate Bodies, Lawyers, Consultants and all thosewho are, in any way, interested in the subject.

Labour-used practices of employers have been another cause ofincreasing magnitudes of contract Labour. Employers areincreasingly concentrating on core activities and engage

regular workers only in core activities. They depend on contractlabour for peripheral activities. Understanding the complexitiesof contract labour, its engagement and legal compliances is noteasy. The subject is highly mis-understood capable of creatingconfusions. The book under review by Mr. Kumar is an answerto all practical questions which one may have about the subject.The various drafts/documents, explanation of various termsand concepts in easy to understand language with support ofcase law is the USP of this book. Judicial interpretations ofContract Labour Act and its various provisions alongwithcontract labour system adopted by managements lift the veiland put the correct understanding of subject. The author hasvery intelligently used the court judgments at proper placesmaking the subject easier to understand. The popularity of thebook can be measured from the fact that in last twelve years,book has seen seven editions with too reprints. The last one of2013 is fully updated version highly beneficial to industries,labour practitioners, contractors and managers dealing withsubject.

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Aparajitha with The Economic Times and CII organized its firstever IR conclave on 6th Sep. 2013 at New Delhi. The theme wasLaws on employment-compliances or complaints. A gamut ofeminent leaders from corporate world, employer forums andprofessional bodies, HR/ Labour law practitioners, legislators andGovt. authorities across India graced the conclave as speakers,panelists and moderators.

In explicit recognition and earnest appreciation of H L Kumar, ChiefEditor, Labour law Reporter and advocate Supreme court of India, for hisexceptional dedication and sterling contribution to labour andemployment domains, he was facilitated with LIFE TIME ACHIEVEMENTAWARD.

The chief guest of the conclave was Sh. Suresh Kodikunnil, Ministerof State for labour and employment, Govt. of India. In his inauguraladdress he cited the Govt's efforts in taking up the social securitymeasures for organized and unorganised labour more effectively andthrew some light on proposed amendments in various labouremployment regulations.

T K Arun Editor (Opinion), ET, in his welcome address, stressedupon the need of labour law reforms that the corporate India waswaiting for a long. He also pointed at the role of trade unions that needto be transformed according to changing times. He talked about microand macro level rationalization and up gradation of workers skills.

Arvind kapoor, Co-Chair, CII national committee on IR and CMDof RICO Auto, also said that much awaited labour law reformsdiscussed several times with the Govt. would help increasingemployment opportunities and Industrial relations scenario wouldbe cordial.

First session on contract labour was moderated by Prof. J.S.Sodhi, Director, Shriram centre of IR & HR. Other panelists were

Michael Dias, Alok Bhasin and K. Kasturi. All are renownedadvocates of employment laws who deliberated uponcomplexities of contract labour law & its applications inindustry. The panelists also clarified doubts of participants.


IR conclave onemploymentcompliances

IR CONCLAVE ON 6TH SEP. 2013 AT NEW DELHI



Second penal discussion was onemployee compensation. Vineet Soni ofTata Motors, Anil Kaushik, ManagementExpert-HR & IR and Rajeev Das of TCSwere panellists whereas Dr. KrishnaMurthy, Director-Industrial RelationsInstitute of India moderated the session.Vineet Soni elaborated about performance& reward mechanism developed by TataMotors. Anil Kaushik discussed aboutwages definition under variousemployment laws & implications of courtverdicts on bifurcation of minimumwages for various purposes. Rajeev Dastalked about international workers andtheir compensation packages strategy.

Third penal discussion was on socialsecurity laws. Panellists included AbhayKapoor-Head Corporate-ER, Escorts,P.K. Srivastava, InsuranceCommissioner (benefit) ESIC and A.N.Roy, former Addl. Central PFCommissioner. The session wasmoderated by K. Varadan, C.O.O.,Aparajitha. Abhay Kapoor talked aboutrelevance and importance of socialsecurity schemes applicable to workmenand practical difficulties inimplementation. Mr. Srivastavaelaborated about benefits provided byESIC. Mr. Roy replied the questions ofparticipants on various PF provisions.Mr. Varadan emphasised upon the timelycompliance of various employmentregulations in specific social securitylaws.

Last penal discussion was onindustrial relations moderated by S.Y.Siddiqui, C.O.O. (HR), Maruti. J.N.Amrolia, founder director & chairman,Chennai Business School, RajeevKapoor, C.P.O., Fortis, R. Mohan Das,Director-P & IR, Coal India & R. VenkatNarayanan, president (HR) werespeakers. J.N. Amrolia cautionedagainst increasing outside influence on

workers & trade unions & underlined thereasons of deteriorating IR scenario.Venkat Narayanan emphasised on pro-active HR managers to be taken forharmonious IR. Rajeev Kapoor gave tipsto handle next generation workmen. R.Mohan Das shared his experience ofhandling multi trade unions at workplaceand striking a balance between differentwork groups. Mr. Siddiqui whilemoderating talked about flexibility,changing demographics of workforce andinclusivity of sharing profits and growth.

All Speakers, moderators, panellistsand delegates extensively deliberated uponcontemporary perspectives, opportunitiesand challenges with regard to Industrialand Employee Relations, Contract Labour,Compensation and Social Security toemployees. The following observationscoupled with recommendations/way-forward,have emerged out of spiritedinteractions among diverse stakeholders:

Swift stride of economicliberalization, privatization andglobalization continuously alter theentire business landscape and greatly

impact labour and employment domains.

All the stake-holders come together, inan organisation, for a common cause.Yet, in some situations, the individualagenda grows bigger creating a dent inthe commonality of interests. It isimportant that all the stake-holdersare onthe same page at any given point of time.

Despite the fact that labour laws aremany, complex and out-dated, we need tolive and comply with. Collectively we needto strive for sustained networking andpartnering in advocacy and policyinfluencing initiatives whichwouldguarantee simplification/revisiting ofexisting labour laws, contributing towardsgreater labour reforms. Corporate leaders,HR and line-management professionals, tostay connected with workforce, promote fairand just practices, minimise wage disparityamong different strata of employees , ensureculture of compliance permeating allthrough the organisation and effectivelymanage statutory compliances onemployment laws. Appointment of adequatenumber of enforcement authorities andawarding incentives to employers for bestand next compliance practices arerecommended to Central Government andState Governments. Karnataka model onContract Labour may be studied in-depthand suitably adopted by respectiveGovernments.

Social security measures to be madeinclusive, covering unorganised section oflabour population. Gaps inimplementation are adequately addressed.Business Schools are challenged to equipstudents in employee relations andindustrial Relations. All stakeholders areencouraged to transit from "minimum"and "compliance"to "beyond" and "best& next practices", which ensure resoluteprogress in the domains of labour andemployment. BM


The Industrial Relations Conclave 2013,organised by National HRD Networkproved to be an enriching and valueadding event. The theme of the Conclavewas 'Towards Enriched EmployeeRelations for Prosperous India.

Over 150 professionals participated from 70Units. Not only senior HR professionals butmany senior functional heads from variousorganisations participated. The Conclave hadtwo major focus areas: Best Practices of IR anddeeper understanding of Industrial Law forEnriched Employee Relations.

The Keynote address was delivered by Prof.Dr. Jerome Joseph - IIM A and the Chief Guestwas Shri Y S Trivedi of L&T. Shri SaradGangal - President HR of Thermax, Dr VikasSirodkar - Head HR of General Motors, SeniorAdvocates Shri Aswinbhai Hathi, Dr. MaheshThakar, Shri K H Patel, and Shri ArvindShrouti spoke on Industrial Relations andlabour laws in current context. Shri VivekPatwardhan, Executive Coach and HRConsultant [former Head HR of Asian PaintsLtd] conducted all the sessions as ConclaveDirector.

Two veteran Trade Union Leaders ofNational repute from Gujarat Shri Hasubhai

NHRDN

South Gujarat IR Conclave

Dave - Bharatiya Majdoor Sangh and Shri Sanatbhai Mehta - Shramik VikasSangathan were felicitated. They both shared their many inspiring experiences.Shri Kamleshbhai Udani chaired this session.

NHRDN South Gujarat unit, under the Presidentship of Mr Himanshu Bhatthas been very active in holding sessions which bring reputed professionals andHR managers together.

Mega HR ConclaveDMA (Delhi ManagementAssociation) and IBA (IndusBusiness Academy) organized 5thMega HR Conclave on 10th October,2013 at Hotel Fortune Select Global,Gurgaon. The theme of this one dayconclave was "High PerformanceOrganizations: HR as a Catalyst".

The event began with the welcomeaddress by Mr. Sunil Omanwar,Chairman-Human Capital Committee &Head-Talent Management, TatateleServices Ltd. followed by the programoverview.

The event was graced by esteemedspeakers from the HR fraternityincluding HR Heads from corporatehouses such as Fortis HealthcareLimited, Zee Media CorporationLimited, Tata Teleservices Limited,Thomas International, Blue StarLimited, Coca Cola India Limited,Mercer, Devyani International Limited,Ayurvet Limited, Exchange4Media

Limited, HT Media Limited, Panarc Consultants, Viom Networks Limited, PavanDuggal Associates, Seth Associates, Foundation Futuristic Technologies Pvt. Ltd.

Vote of thanks was proposed by Dr. Ekta Saxena, Program Convener for the 5thMega HR Conclave and Head & Faculty in charge - Corporate Relations, Indus BusinessAcademy, Greater Noida.



Great Lakes Institute ofManagement, a premier BusinessSchool in the country, founded byProf. Bala V Balachandran,hostedthe sixth Annual HRConference at their Chennai campus.The conference was graced by Mr.Mohan Narayanaswamy, MD & COO,iNautix Technologies India Pvt. Ltd.,Mr. P Dwarakanath, Advisor, GroupHuman Capital, Max India Ltd andMr. Ashok Vasudevan, ChiefExecutive at Preferred BrandsInternational.

The theme for the event this year,"Strategic HR - Impacting BusinessResults" was set up considering that thebusinesses are going through turbulenttimes.

In his inaugural address Prof. Bala V.Balachandran, Founder & Dean said,"Every business functions with acommon ideology of keeping itscustomers first, but in my opinion it ishuman capital that comes first becausehuman capital enables the service tocustomers.

"Are we learning as fast as the world ischanging?" is the question Chief GuestMr. Mohan Narayanaswamy, MD & COO,iNautix Technologies India Pvt. Ltd.started with. He also mentioned that, Thecollective intelligence of people is veryimportant, human resourcemanagement is transforming thephysical structure into virtualenvironment and this aspect catalyses the

collective intelligence. Delivering his keynote address Mr. P Dwarakanath,Advisor, Group Human Capital, MaxIndia Ltd. said, “We are in age wherecompetitors' intelligence is not just thefactor to succeed in market but humancapital plays the major role in driving thecompetitive advantage. For anyorganization people and talentdevelopment is the real asset. HR Playsthe important role in aligning the corevision and mission of the organization.”

In his speech Mr. Ashok Vasudevansaid, "If you find harmony in your work,harmony with your colleagues and

harmony in your work environment, thenyou have the work and life balance. Thebiggest challenge is not to get anchored toanything and when you do that you are inharmony with work."

Three panel discussions were alsoheld in the conference and the panelistscomprised of vice presidents and seniormanagement from top companies such asFrost & Sullivan, Nokia, Citibank,Mphasis, Asian Paints, Ingersoll Randand ICICI Bank. The panelistsrepresented different sectors therebygiving the students a picture of how thedifferent industries work.

(From left) P Dwarakanath, Advisor-Group Human Capital, Max India Ltd, Prof. Bala V. Balachandran,Founder & Dean, Great Lakes Institute of Management, Mohan Narayanaswamy, MD & COO, iNautix

Technologies India Pvt. Ltd. and Prof. S Sriram, Executive Director, Great Lakes Institute of Management

Impacting business results through HR

Encourage contract employment with more security measures : studyIn a bid to generate formal employment, especially in themanufacturing sector, an internal study conducted by Export-Import Bank of India titled 'Comparison of labour Laws; SelectCountries' suggested that the country needs to encouragecontract employment, with adequate safeguard measures whichinclude provisions of social security measures.

According to Exim Bank chairman and managing director TCARanganathan, the industrial-intensive countries have beenencouraging contract form of employment in order retain thentalent pool. In developed countries, contact employment is thepreferred course for both employers as well as employees.

'With favourable demo-graphic dividend, we need to align ourpolicies to match with those of our competitors so that theimplications of free trade agreement and preferential tradeagreement would be favourable to our business,' Ranganathan

said. The study has undertaken a comparative analysis of labourlaws in 20 countries including in France, Germany, Russia, UK,Brazil, US, Kenya, South Africa, Bangladesh, China, India,Indonesia, Malaysia, Pakistan, Sri Lanka, Thiland and Vietnam.

According to the study, the Indian Trade-Union Act was enactedin the colonial period, during which the focus was on industrialdevelopment, which is different from what is being propagatednow. The study said that outdated labour laws are principalreasons for declining employment potential in India.

While the labour regulations in India are made with theobjective of protecting the interests of employees, they give asense of neglecting the interest of employers who are investors.Inflexible labour market is oe of the factors that hinder large-scaleinvestments, technology absorption, productivity enhancementand high employment growth in the country, the study said.


PF Online Transfer becomesfunctional: EPFO

The filing of online provident fund accounts transfer claims onchanging jobs for subscribers of the retirement fund body EPFO hasbecome a reality now. The facility has been made available as theEmployees' Provident Fund Organization (EPFO) has launched itsonline transfer claim portal (OTCP) on October 2, 2013, as per anoffice circular said. According to the circular to its field staff,EPFO's Central Provident Fund Commissioner K.K. Jalan has said,'handling of transfer cases generates maximum bad publicity and itis expected that this issue shall be resolved after OTCP is made fullyfunctional.' Jalan has also directed that after October 31, there shallbe no physical movement of paper (either claims or Annexure 'K') intransferring member accounts from one office to another.

Annexure K contains details of service period with an employerand the amount of funds deposited in the pension fund account ofthe subscribers who seek transfer of PF accounts. The facility ofonline transfer of provident fund accounts will reduce the work loadof the body substantially as over 13 lakh applicants' files such claimsevery year. EPFO officials say that job changes are more frequent inbig firms employing more than 500 workers, especially in sectorssuch as information technology. The body managed PF accounts ofabout 6.9 lakh establishments in 2011-12.

Beware of fake interviews & offersOn October 7, eight floors below KPMG's office at theWorld Trade Centre building in Bangalore, an elaboratedeception was under-way.

A bunch of impostors posing as KMPG managers interviewed,hired and issued fake offer letters to half a dozen job aspirants.They even asked the candidates to report to the 12th floor, thereal KPMG office. By the time the candidates and the companycould figure they had been duped, the impostors had left. Theunsuspecting aspirants were earlier beguiled into transferringmoney into a bank account.

Candidates did not realize that no big firm will ask for moneyfor a vacancy and one cannot respond to mails that ask for acertain recruitment fee. 'They had the nerve to book a businesscentre in the same building as our office. The proportion of thisfraud is ridiculous,' says Shalini Pillay, head of HR, KPMG. Shehastens to add that KPMG's recruitment process is very robust.'We have codes for every applicant and even our recruiters areaware of this.' Calls to these candidates were made from anumber that was identical to KPMG's board line, but thecompany says none of their staff are involved. It has reportedthe incident to the cyber crime cell in Bangalore. Officials feel itcould be a case of hacking as well.

This is the second such con on KPMG. Last month, anotherbunch of candidates were similarly duped in Hyderabad. In all,about 30 candidates have walked into KPMG offices with fakeoffer letters. Most were engineers from small towns of AndhraPradesh. The company suspects the same fraudsters werebehind both incidents. The frequency of such frauds and thenumber of victims is rising alarmingly as candidates desperatefor a job are easily fooled. Not too long ago, Tata ConsultancyServices (TCS) was being hit with 15 such fake offers every day.Stung by a similar fraud, Hyundai Motor India and Marutiwarned job aspirants of such frauds.

EPFO to be strict withcontractors evading PF

Private placement agencies supplying contract labour togovernment departments have come under the scanner ofEmployees’ Provident Fund Organisation (EPFO) forallegedly stripping workers of salaries and evadingprovident fund (PF) payments.

While the government departments have been paying wages tooutsourced workers in full, some job agencies are ‘bifurcating’those wages into basic wage and various allowances. Since PFpayments are based on basic pay, the wage spilt lowers the PFcontribution to contract workers even as it lowers their tax outgo.In a strongly worded circular to all government departments,EPFO said, ‘This diversion of residual employers’ contribution istantamount to pilfering of PF money.’ As the employer ofcontract workers, the respective government department‘unwillingly become a party to this pilferage’, EPFO did not nameany placement firms in its circular. The clampdown assumesimportance in the wake of a rising trend among governmentdepartments to hire contract workers for a wide range ofactivities, from housekeeping and security to IT-related work.The central government, along with its PSUs, employs about 18.4lakh contract workers. In December 2012, labour commissionerstarted inspecting ministries and departments, finding close to5,000 contract workers. The health and family welfare ministryemploys around 1,794 contract workers while the railwaysengaged 704 such workers. The figure for commerce and industryministry was 401, revenue and expenditure departments underfinance ministry 413, and HR ministry 249.

6 Months Jail for liberty shoes DirectorIn a complaint, filed before the Chief Judicial Magistrate at

Karnal (Haryana), the workers through their advocate allegedthat the Liberty Enterprises has adopted unfair labour practiceby closing down the factory at Gharounda in November 2008 andinstead of obtaining prior permission from the LabourAuthorities, as stipulated by section 25-O of the IndustrialDisputes Act (when 100 or more workers are employed),transferred the workers to three isolated locations where nomanufacturing plants existed. They were made to markattendance in open fields and most of them were forced to quitafter being denying wages for months. By an order dated19.10.2013, the Chief Judicial Magistrate Amit Kumar passed theorder against Adarsh Gupta owner of Liberty Enterprises andsentenced him to six months imprisonment.

ISF opposes ESI cap increaseThe Indian Staffing Federation (ISF), an apex body of flexistaffing industry in India, set up by leading staffingcompanies in India, today strongly disagreed with theIndian Labour Ministry's decision to raise the salary cap ofESIC beneficiaries to Rs. 25,000 from the current Rs.15,000.

As of 2012 ESIC is sitting on a corpus which is in excess of halfthe contribution of Rs 7070 crores. That amounts to substantialfund to address the plaguing issues around inadequate doctors,poor diagnostic services and non-availability of common drugs.It is more critical to address the absolutely lack of faith in theinstitution of ESIC amongst the very people that the authoritiesare presumably trying to protect. An employee with gross salaryof Rs 25000 works upto a Cost to Company Salary ofapproximately Rs 28000. This single move shall lead to anadditional burden of Rs 1200 for employers for every employeewith Gross Salary of Rs 25000 and decrease the net pay of theemployee by Rs 450. Given the uncertainty all around, which isaffecting industries, this single move is yet another stepdiscouraging job creation and encouraging available work to beshifted to the informal sector.

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