Industrial Relation Issues in Steel Authority of India Ltd

8/3/2019 Industrial Relation Issues in Steel Authority of India Ltd

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INDUSTRIAL RELATION

ISSUES IN STEEL

AUTHORITY OF INDIA

LTD

LABOUR LAW ASSIGNMENT

SUBMITTED BY:

NIDHI MEHROTRA

10PGDM060

SECTION A


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INDUSTRIAL RELATION ISSUES IN STEEL AUTHORITY OF INDIA LTD.

INTRODUCTION OF INDUSTRIAL RELATION

The relationship between Employer and employee or trade unions is called Industrial

Relation. Harmonious relationship is necessary for both employers and employees to

safeguard the interests of the both the parties of the production. In order to maintain good

relationship with the employees, the main functions of every organization should avoid any

dispute with them or settle it as early as possible so as to ensure industrial peace and higher

productivity. Personnel management is mainly concerned with the human relation in industry

because the main theme of personnel management is to get the work done by the human

power and it fails in its objectives if good industrial relation is maintained. In other words

good Industrial Relation means industrial peace which is necessary for better and higher

productions.

A man working in a healthy atmosphere can produce more. Within an industry there is a

hierarchy among the people. From the very beginning there is always a gap between have and

have-nots. In order to bring harmonious relation between the management, workers and

unions for the sake of industry as well as for the nation, positive relation within an industry is

expected. Therefore the term "INDUSTRIAL RELATION came into limelight.

Industrial Relation is a major force which influences the social, political and economic

development of a country .Managing industrial relations is a challenging task because it deals

with a highly complex, fast developing, ever changing and expanding field. There are certain

factors such as composition of working class, work environment, socio-economic status of

the workers and their attitude to work, management's ideology, role of the state, thinking of

the community etc which have a considerable bearing on the state of relationship between

labour and management. Different labour enactments and judicial decisions playa major role

in regulating the employer -employee relationship. It creates an atmosphere in which the

human system will operate harmoniously in a coordinated.way. Keeping in view the different aspects of industrial relations, an attempt has been made

in this project to provide a multi dimensional approach to the subject.
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OBJECTIVES OF INDUSTRIAL RELATION :-

Apart from the primary objective of bringing about sound and healthy relations between

employers and employees, Industrial Relation aims at:-

A. To safeguard the interest of labor and management by securing the highest level of

mutual understanding and good-will among all those sections in the industry which

participate in the process of production.

B. To avoid industrial conflict or strife and develop harmonious relations, which are an

essential factor in the productivity of workers and the industrial progress of a country.

C. To raise productivity to a higher level in an era of full employment by lessening the

tendency to high turnover and frequency absenteeism.

D. To establish and nurse the growth of an Industrial Democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban

individuals personality may grow its full stature for the benefit of the industry and of

the country as well.

E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by

providing reasonable wages, improved living and working conditions, said fringe

benefits.

COMPONENTS OF INDUSTRIAL SYSTEM:-

I) PARTICIPANTS: The participants in the industrial relations sphere are composed of

duly recognized representatives of the parties interacting in several roles within the

system. It includes -

a. Employee Relation - It includes the complex relationship among the

employees.


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b. Labour Relation - It includes the relationship between management and Trade

Union.

c. Public Relation - It includes the relationship of industry with the entire

community as a whole.

2) ISSUES: The power interactions of the participants in a workplace create industrial

relation issues. These issues and the consequences of power interactions find their

expression in a web of rules governing the behaviour of the parties at a workplace. :

3) STRUCTURE: The structure consists of all forms of institutionalised behaviour in a

system. The structure may include collective procedures, grievance settlement

practices etc. legal enactments relevant to power interactions may also be considered

to be a part of the structure.

4) BOUNDARIES: In systems analysis, it is possible to find an issue which one

participant is totally indifferent to resolving while, at the same time, the other

participant is highly concerned about resolution of the same. These issues may serve

to delimit systems boundaries.

FEATURES OF INDUSTRIAL RELATION

A few notable features pertaining to Industrial Relations are as under:

1. Industrial Relation do not emerge in vacuum they are born of employment

relationship in an industrial setting. Without the existence of the two parties, i.e. labor

and management, this relationship cannot exist. It is the industry, which provides the

environment for industrial relations.

2. Industrial Relation are characterized by both conflict and co-operations. This is the

basis of adverse relationship. So the focus of Industrial Relations in on the study of

the attitudes, relationships, practices and procedure developed by the contending

parties to resolve or at least minimize conflicts.

3. As the labor and management do not operate in isolations but are parts of large

system, so the study of Industrial Relation also includes vital environment issues like


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technology of the workplace, country's socio-economic and political environment,

nation's labor policy, attitude of trade unions workers and employers.

4. Industrial Relation also involve the study of conditions conductive to the labor,

managements co-operations as well as the practices and procedures required to elicit

the desired co-operation from both the parties.

5. Industrial Relations also study the laws, rules regulations agreements, awards of

courts, customs and traditions, as well as policy framework laid down by the

governments for eliciting co-operations between labor and management. Besides this,

it makes an in-depth analysis of the interference patterns of the executive and

judiciary in the regulations of labor-managements relations.

FACTORS INFLUENCING INDUSTRIAL RELATION :

The concepts of Industrial Relations are very broad-based, drawing heavily from a variety of

discipline like social sciences, humanities, behavioral sciences, laws etc. In fact, Industrial

Relation encompasses all such factors that influence behavior of people at work. A few such

important factors are details below:

1. Institution: It includes government, employers, trade unions, unions federations or

associations, government bodies, labor courts, tribunals and other organizations which

have direct or indirect impact on the industrial relations systems.

2. Characters: It aims to study the role of workers unions and employers' federations

officials, shop stewards, industrial relations officers / manager, mediator / conciliators

/ arbitrator, judges of labor court, tribunal etc.

3. Methods: Focus on collective bargaining, workers' participation in the Industrial

Relation schemes, discipline procedure, grievance re-dressal machinery, dispute

settlements machinery working of closed shops, union reorganization, organizations

of protests through methods like revisions of existing rules, regulations, policies,

procedures, hearing of labor courts, tribunals etc.

4. Contents: Includes matter pertaining to employment conditions like pay, hours of

works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals


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retirements etc., laws relating to such activities, regulations governing labor welfare,

social security, industrial relations, issues concerning with workers' participation in

management, collective bargaining, etc.

5. History of industrial relations: No enterprise can escape its good and bad history of

industrial relations. A good history is marked by harmonious relationship between

management and workers. A bad history by contrast is characterized by militant

strikes and lockouts. Both types of history have a tendency to perpetuate themselves.

Once militancy is established as a mode of operations there is a tendency for

militancy to continue. Or once harmonious relationship is established there is a

tendency for harmony to continue.

6. Economic satisfaction of workers: Psychologists recognize that human needs have a

certain priority. Need number one is the basic survival need. Much of men conducted

are dominated by this need. Man works because he wants to survive. This is all the

more for underdeveloped countries where workers are still living under subsistence

conditions. Hence economic satisfaction of workers is another important prerequisite

for good industrial relations.

7. Social and Psychological satisfaction: Identifying the social and psychological urges

of workers is a very important steps in the direction of building good industrial

relations. A man does not live by bread alone. He h61s several other needs besides his

physical needs which should also be given due attention by the employer. An

organization is a joint venture involving a climate of human and social relationships

wherein each participant feels that he is fulfilling his needs and contributing to the

needs of other. This supportive climate requires economic rewards as well as social

and psychological rewards such as workers' participation in management, jobenrichment, suggestion schemes, re-dressal of grievances etc.

8. Off-the-Job Conditions: An employer employs a whole person rather than certain

separate characteristics. A person's traits are all part of one system making up a whole

man. His home life is not separable from his work life and his emotional condition is

not separate from his physical condition. Hence for good industrial relations it is not

enough that the worker's factory life alone should be taken care of his off-the-job

conditions should also be improved to make the industrial relations better .


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9. Enlightened Trade Unions: The most important condition necessary for good

industrial relations is a strong and enlightened labor movement which may help to

promote the status of labor without harming the interests of management, Unions

should talk of employee contribution and responsibility. Unions should exhort

workers to produce more, persuade management to pay more, mobilize public opinion

on vital labor issues and help Government to enact progressive labor laws.

10. Negotiating skills and attitudes of management and workers: Both management

and workers' representation in the area of industrial relations come from a great

variety of backgrounds in terms of training, education, experience and attitudes. These

varying backgrounds playa major role in shaping the character of industrial relations.

Generally speaking, well-trained and experienced negotiators who are motivated by a

desire for industrial peace create a bargaining atmosphere conducive to the writing of

a just and equitable collective agreement. On the other hand, ignorant, inexperienced

and ill-trained persons fail because they do not recognize that collective bargaining is

a difficult human activity which deals as much in the emotions of people as in their

economic interests. It requires careful preparation and top -notch executive

competence. It is not usually accomplished by some easy trick or gimmick. Parties

must have trust and confidence in .each other. They must possess empathy, i.e. they

should be able to perceive a problem from the opposite angle with an open mind.

They should put themselves in the shoes of the other party and then diagnose the

problem. Other factors which help to create mutual trust are respect for the law and

breadth of the vision. Both parties should show full respect for legal and voluntary

obligations and should avoid the tendency to make a mountain of a mole hill.

11. Public policy and legislation: When Government, regulates employee relations, it

becomes a third major force determining industrial relations the first two being the

employer and the union. Human behavior is then further complicated as all three

forces interact in a single employee relation situation. Nonetheless, government in all

countries intervenes in management -union relationship by enforcing labor laws and

by insisting that the goals of whole society shall take precedence over those of either

of the parties. Government intervention helps in three different ways 1) it helps in

catching and solving problems before they become serious. Almost every one agrees

that it is better to prevent fires them to try stopping them after they start; 2) It provides


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a formalized means to the workers and employers to give emotional release to their

dissatisfaction; and 3) It acts as a check and balance upon arbitrary and capricious

management action.

12. Better education: With rising skills and education workers' expectations in respect of

rewards increase. It is a common knowledge that the industrial worker in India is

generally illiterate and is misled by outside trade union leaders who have their own

axe to grind. Better workers' education can be a solution to this problem. This alone

can provide worker with a proper sense of responsibility, which they owe to the

organization in particular, and to the community in general.

13. Nature of industry: In those industries where the costs constitute a major proportion

of the total cast, lowering down the labor costs become important when the product is

not a necessity and therefore, there is a little possibility to pass additional costs on to

consumer. Such periods, level of employment and wages rise in decline in

employment and wages. This makes workers unhappy and destroys good industrial

relations.

COMPANY PROFILE

Steel Authority of India Limited (SAIL) is the leading steel-making company in India. SAIL

traces its origin to the formative years of an emerging nation, India. After independence the

builders of modern India worked with a vision -to lay the infrastructure for rapid

industrialization of the country .It is a fully integrated iron and steel maker, producing both

basic and special steels for domestic construction, engineering, power, railway, automotive

and defence industries and for sale in export markets. Ranked amongst the top ten public

sector companies in India in terms of turnover, SAIL manufactures and sells abroad range of

steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical

sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels.

SAIL produces iron and steel at five integrated plants and three special steel plants, located

principally in the eastern and central regions of India and situated close to domestic sources

of raw materials, including the Company's iron ore, limestone and dolomite mines. The

company has the distinction of being India's largest producer of iron ore and of having the


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country's second largest mines network. This gives SAIL a competitive edge in terms of

captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

SAIL's wide ranges of long and flat steel products are much in demand in the domestic as

well as the international market. This vital responsibility is carried out by SAIL's own Central

Marketing Organisation (CMO) and the International Trade Division. CMO encompasses a

wide network of 34 branch offices and 54 stockyards located in major cities and towns

throughout India.

With technical and managerial expertise and know-how in steel making gained over four

decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and

consultancy to clients world-wide.

SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at

Ranchi which helps to produce quality steel and develop new technologies for the steel

industry .Besides, SAIL has its own in-house Centre for Engineering and Technology.

(CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive

mines are under the control of the Raw Materials Division in Kolkata. The Environment

Management Division and Growth Division of SAIL operate from their headquarters in

Kolkata. Almost all our plants and major units are ISO Certified.

MAJOR UNITS OF SAIL:

A. INTEGRA TED STEEL PLANTS

1. Bhilai Steel Plant (BSP) in Chhattisgarh

2. Durgapur Steel Plant (DSP) in West Bengal

3. Rourkela Steel Plant (RSP) in Orissa4. Bokaro Steel Plant (BSL) in Jharkhand

5. IISCO Steel Plant (ISP) in West Bengal

B. SPECIAL STEEL PLANTS

i. Alloy Steels Plants (ASP) in West..J3engal

ii. Salem Steel Plant (SSP) in Tamil Nadu

iii. Visvesvaraya Iron and Steel Plant (VISL) in Karnataka.


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SAIL TODAY

SAIL today is one of the largest industrial entities in India. Its strength has been the

diversified range of quality steel products catering to the domestic, as well as the export

markets and a large pool of technical and professional expertise. Today, the accent in SAIL is

to continuously adapt to the competitive business environment and excel as a business

Organisation, both within and outside India.

ROURKELA STEEL PLANT

Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India, was

set up with German collaboration with an installed capacity of 1 million tonnes.

Subsequently, the capacity was enhanced to 1.9 million tonnes. The plant was modernized in

the mid 1990s with a number of new units with state-of -the-art facilities. Most of the old

units have also been revamped for effecting substantial improvement in the quality of

products, reducing the cost and ensuring cleaner environment.

The govt. of India under the able leadership of the then Prime Minister Pt. Jawaharlal Nehru,

decided to set up large steel plants by the government itself after the general election of 1952.

Rourkela and its adjacent areas are rich in iron ores, manganese, dolomite and lime stones,

the basic materials required for production of steel and iron. Considering Rourkela to be the

best place for a steel plant, the survey work was completed in the year 1954. The

infrastructure work of the plant was accomplished in between 1955 and 1960. The Republic

of Germany extended technical know how for the construction of the steel plant and the plant

was considered a joint venture of the govt. of India and Germany. The initial production limit

of one million tonnes steel per annum was raised to 1.8 million tonnes in the subsequent

years. The internationally reputed firms like the Krrups, Dimag, G.H.H. Sag, Scholomen,Cemens and Voist Eipine etc supplied different machines and machinery parts to the plant at

the beginning stage. The Rourkela Steel Plant took the part of leadership in the process of

steel production under L.D. techniques. It could also establish itself as one of the premier

industries of the world under the system of basic oxygen converter. The extension work of

the plant was over by the year 1968. A circular welding pipe plant and special plate plant

were set up in the decade of seventies for production of different ready -made materials. To

avoid scarcity of power supply, power plant was set up with a capacity of 120 M. W at the

plant. The power plant is able to cater the requirement of power supply from the year 1986.


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STAGES OF DEVELOPMENT OF RSP:

1953 Agreement signed with KRUPP -DEMAG for Rourkela

1958 First Coke Oven Battery lit at Rourkela

1959 First Blast Furnace inaugurated

Blooming and Slabbing Mill commissioned

First L.D. Converter commissioned

1960 Plate Mill commissioned

ERW Pipe Plant commissioned

1961 Hot Strip Mill Commissioned

1962 Fertilizer Plant commissioned

1965 Sintering Plant Commissioned

1966 Expansion of L.D. Converter commissioned

1967 Expansion of Blast Furnace commissioned

1968 Tandem Mill Electrolytic Timing Line Electric Mill commissioned

1969 Galvanizing Sheet Mill commissioned

1982 Foundation laid for the first slab cement plant SAIL

1987 Inauguration of latest energy efficient KOREX process

1991 Inauguration of 2nd phase of RSP Modernization

1994 Inauguration of biological oxidation dephenolisation plant

1996 Inauguration of new dividing line, new BOF shop and new Sinter Plant

SPECIAL FEATURES OF RSP:


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It is the first plant in Asia to adopt LD process of steel making.

It is the only plant producing large diameter ERW I SW Pipes conforming to most

rigid standards of API.

It is the first steel plant in India to adopt external desulphurization of hot metal be

calcium carbide injection process.

It is the only plant in SAIL producing Cold Rolled Non Oriented (CRNO) sheets for

use in the electric industries with installed capacities of 73,000 ton per year.

It is the first plant to adopt vacuum degassing metallurgy, primarily for production of

silicon steel for the CRNO sheets.

It is the first integrated steel plant in SAIL family to produce 100% of steel through

the cost effective and quality centered continuous casting route.

All the major production departments and some service departments certified with

ISO 9001 :2000 QMS.

Silicon Steel Mill, Environmental Engineering Department and Sinter Plant -II, Hot

Strip Mill and Plate Mill certified with ISO 14001 :2004 EMS.

MAJOR UNITS OF RSP

Raw Materials play the most vital role in RSP's production of 1.9 million tonnes (MT) of

steel per annum. Each year, 2.3 MT of Coking Coal, 1.5 MT of Boiler Coal, 1.8 MT of Iron

Ore Lumps, 1.5 MT of Iron Ore Fines, 1.6 MT of fluxes and other materials viz. Tin, Zinc,

Aluminium and Ferroalloys constitute RSP's input requirements.

A) Ore Bedding and Blending Plant

The Ore Bedding and Blending Plant has a base mix preparation system with on-ground

bedding, blending and conveying facilities. Set up under the modernization programme to

provide pre-mix feedstock to Sinter Plant -1 & Sinter Plant -II, the plant has a dispatch


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capacity of 5,00,000T of material per annum. The facilities includes major installations like

Wagon unloading (tipplers & track hoppers), Iron Ore Crushing and Screening System, raw

material storage yard, rod mills and roll crushers for flux and coke crushing, proportioning

bins and elaborate conveying systems.

B) Coke Oven

The 4.5-meter tall coke oven batteries produce coke as the input for Blast Furnaces. The coke

ovens are equipped with wagon tipplers, automatic handling and conveying facilities, coal

blending provisions, coke wharf age crushing together with screening and conveying

systems.

C) Sintering Plant

RSP'S two sinter plants feed sinter to the blast furnaces with a combined capacity of 3.07

million tonnes per annum. Set up as part of the modernization drive, Sintering Plant -II is

operating at more than its rated capacity since the year 2000. This has facilitated the

increased usage of sinter bin blast furnace burden.

D) Blast furnaces

The four Blast Furnaces of RSP, with a...combined capacity of 2 MT, produce hot molten

metal for steel production.


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E) Steel Melting Shops .

SMS-I

Apart from a computerized LD process, which has enhanced shop capability, the LA VacuumMetallurgy Technique, has been also adopted for secondary refining of steel. This facilitates

production of special steels for application in electrical machines, pipe making, tinplate,

boilers and auto chassis members. The shop was originally designed to produce ingots for

conversion to slabs through the Slabbing Mill route. However, after the discontinuation of

the ingot route, the SMS-I produces slabs through casting machine.

SMS-II

The Shop is provided with the latest steel making, secondary refining (ladle furnace and

argon rinsing) facilities and two single strand slab casters to produce 1,355,000 tonnes of

steel slabs annually. This is the biggest unit set up under the modernization programme. The

shop is provided with automation through three levels of computerised control, LD gas

cleaning and recovery , power distribution system, water and utility services.

F) Plate Mill

This 3.1 MT wide, 4 high reversing mills is equipped with on-line thickness measurement

facilities. Facilities for inspection by customer's nominees, on-line ultrasonic testing and

checking ensure the quality of plates dispatched to the customers. A new walking beam type

furnace with a capacity of 100 Tonnes/hour was installed during the modernization

programme for slab heating. The mill has a production capacity of 2,99,000 Tonnes per

annum .

G) Hot Strip Mill

The facilities of the 1.440 Million Ton per annum mill were augmented during modernization

with the installation of :

Two new walking beam type reheating furnace (225 TPH)

Roughing/sizing stand ROVO a with automation

Automated coil box

Quick roll change system in Roughing Stand-I and finishing mills.


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Coil marking, sampling and conveying systems.

H) Cold Rolling Mill

This features a modern 5-stand tandem mill and a 4-high 1700-mm reversing mill. The

tandem mill is equipped with automatic gauge control, x-ray gauge, data logging and

thyristorisation. It produces about 6,78,000 tonne per annum of cold rolled sheet .

I) Electrolytic Tinning Line

The continuous electrolytic tinning line produces a shining tin-coated surface in a variety of

coating thickness. The tinplate shearing lines are equipped with sensitive pinhole detectors

and an automatic sorting system.

J) Galvanising Lines

Two continuous hot-dip galvanizing lines are equipped with jet-coating facilities. There are 2

multi-roller-corrugating machines, which produce corrugated sheets.

K) Silicon Steel Mills

This unit produces steel for the electrical industry through various operations carried out in

sophisticated, continuous/semi-continuous processing lines and a 4-high reduction mill.

Advanced process control and product testing facilities ensure product quality.

L) Pipe Plants

A highly sophisticated Spiral Welded Pipe Plant (SWPP) is equipped with submerged arc

welding process and produces large diameter pipes. Hydrostatic pressure testing, ultrasonic

testing and eddy current testing are some of the features, which ensure quality control. The

Electric Resistance Weld Pipe Plant (ER WPP) caters to the smaller diameter pipe

consumers. This plant has been recently upgraded to enable it to produce API grade pipes.

M) Traffic & Raw Material

The Traffic and Raw Material department deals with procurement and supply of raw

materials to various user departments, internal movement of in-process and other material

from one unit to another and dispatch of finished products to outside parties or SAIL stock


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yards in railway wagons. The department maintains 350 wagons, 40 locomotives and a

network of 240 kilometers rail tracks all over the plant.

N) Environment Management

IRSP has invested about Rs. 340 crores on environment protection measures in 95 schemes,

since 1990-91.By formulating and implementing a strategy of3-R's namely, Re-use, Recycle

and Reduce, RSP is now able to achieve the twin objectives of generating resources as well

as controlling pollution. Since its inception, RSP has so far planted 37 lakh saplings in and

around the steel city and in 2005 RSP has planted 70,000 saplings in and around Rourkela.

O) Computerisation

Rourkela Steel Plant has introduced an on-line system named as Production Planning and

Control System (PPCS), which connects various functional departments of RSP into a single

network system. Developed and executed in-house by a team of dedicated professionals of

the Information Technology and Production Planning and Control Department with the

support of the Works and Projects units.

P) Human Resource Development Centre (HRDC)

The Human Resources Development Centre of Rourkela Steel Plant was set up in the late

1950s and it consists of the Management Development Programme wing, auditoriums, well

equipped workshops, skill up gradation shops, lecture halls for act apprentices and a well-

equipped library on a plethora of Technical and Managerial subjects.

Q) Central Power Training Institute (CPTI)

The Central Power Training Institute (CPTI) has facilities to impart training in operation andmaintenance of power plants and power distribution systems. The Institute conducts training

largely for operation and maintenance personnel of SAIL captive power plants and Power

Distribution Network departments.

PRODUCT MIX OF RSP (IN TONNES PER ANNUM)

PRODUCT-MIX TONNES / ANNUM

Plate Mill Plates 2,99,000


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HR Plates 92,500

HR Coils 3,98,000

ERW Pipes 75,000

SW Pipes 55,000

CR Sheets & Coils 4,33,000

Galvanized Sheets (GP& GC) 1,60,000

Electrolytic Tin-Plates 85,000

Silicon Steel Sheets 73,500

Total Saleable Steel 16,71,000


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PRODUCT AND IT APPLICA TIONS

Products Applications

HR Coils LPG Cylinders, automobile, railway wagon chasis and all

types of high strength needs.

Plates Pressure vessels, ship building and engineering structures

Chequered Plates Flooring & staircases in the industrial sectors and railway platforms

etc.

CR Sheets & Coils Steel furniture, white goods like refrigerators, washing machines,

automobile bodies, railway coach paneling, drums, barrels, deep

drawing and extra deep drawing etc.

Galvanised Sheets Roofing, paneling, industrial sheeting, air conditioner ducting and

structural

Electrolytic Tin

Plates

Containers for packaging of various products including edible oils,

vegetables and confectionary items.

Silicon Steel sheets

&

Small generators, stators for high efficiency rotating equipment and

relays etc.

Spiral Weld Pipes High pressure transportation of crude oil, natural gas and slurry

transportation, water supply, sewage disposals, grain silos, civil

engineering pilings etc.

Spiral Weld Pipes High pressure transportation of oil and water, sewage disposal, tube

wells etc.


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ORGANISATION STRUCTURE OF ROURKELA STEEL

PLANT

Managing Director

Executive

Director

Personnel &

Admn

General

Manager

Finance

accounting

Executive

Director I/C Mat

mgr & proj

Executive

Director

WorksExecutive

Director Mgt

serv.& business

lanning

Executive

Director Medical

& health service

General

ManagerPersonnel &

Admn

General

ManagerMarketing

General

Manager

Material

Mgt

Dy GeneralManagerMarketing

Dy General

Manager

Material

Mgt

General manager

CO.CC&FP

General managerSinterin Plants

General manager

Iron

General managerSteel

General manager

Hot Stri Mill

General manager

Cold Rollin Mill

General manager

Mechanical

General manager

Electrical

General manager

Services

General manager

Research &

Control lab

DGM Safety

DGM Fire Services

Dy General Manager

C & IT

Total Quality Mgt

Dy General Manager

SQC

Dy General Manager

IED


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INDUSTRIAL RELATION IN RSP

Before 2004 working environment at RSP was taken up by Discipline Department which was

one of the reasons for RSP's huge loss continuously. After the year 2004, both the workers

and management realized that if they work united then only productivity and profit of RSP is

possible. The positive approach started from 2004 and the relationship continues to improve

future management and workers. So, we can blindly express that in this 21 st century there is

a good and co -ordinal relation between worker and management. They together share both

the bad and good times of RSP.

RSP is professionally managed through their IR System. RSP has positive industrial relations

with better understanding, better co-operation between management and worker with greater

emphasizing, grievance handling procedure, safety and various facilities provided to the

workers which motivates them to do their work hard. Positive industrial relations include

many more things as it is discussed here.

The indicators of positive industrial relation within the premises of RSP are explained

below:-

(A) WPM :- Workers participation in Management

Workers participation in management is a method through which workers are able to express

their view collectively for the smooth functioning of the industrial enterprise. In the words of

Pt. Jawaharlal Nehru,

"The wealth of the country is not its gold and silver, but the goods manufactured by

the hard labour of her people."

Keeping this national objective in view, the Rourkela Steel Plant with the active participation

of various functioning trade unions and recognized union has involved various participative

forms from 1969 onwards. Various tripartite agreements were signed between the

management of RSP and the Rourkela Majdoor Sabha and then the recognized union to

involve workers in various participative activities such as grievance, production, safety, and

welfare amenities etc. Thus RSP with the active participation of Rourkela Majdoor Sabha


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became the pioneer in the field of participative culture in general and in the steel industry in

particular.

(B) Grievance Machinery

According to the code of discipline there should be grievance machinery every industrial

establishment for the sake of workers grievances. In the certified standing orders of the

company, it is mentioned that all grievances of the employees shall be dealt with by the

grievance Machinery which is to be set up as far as possible on the lines of the model

grievance procedure involved by the Indian labour conference in 1958.

The Grievance Machinery is now operating in RSP at the Department / Unit level. The

concerned personnel executives hears and records the grievances of individual employees and

takes up the grievance with authorities concerned to settle the matter.

In order to supplement the above method of grievance redressal, a 2 tier formal grievance

form is being put up in place. The 1 st tier is known as Grievance Redressal Committee for

employees and the apex committee as Grievance Redressal Apex Committee for employees

at the higher level. The committees are competent to involve their procedure to settle

grievances as and when referred to for a solution.

(C) Settlement Machineries

In Industrial Dispute Act, 1947 there are some machinery for the investigation and settlement

of industrial disputes. They are as follows:-

a) Conciliation :

It is a peace making process in RSP. A conciliator contacts both the parties by separatemeetings and jointly through joint conference. The parties mayor may not accept his

suggestions.

b) Arbitration :


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If the parties are not satisfied with the decision of the conciliation machinery then a third

party interference known as "Arbitrator" is introduced. There are two types of Arbitrations in

RSP. They are:

Voluntary Arbitration

Compulsory Arbitration

c) Adjudication:

It is the last remedial step for the settlement of Industrial Disputes. In RSP the disputes are

sent to the adjudicative authorities by the appropriate govt. after proper examination and

verification such as:

Labour courts call the cases mentioned in the 2nd schedule of Industrial Dispute Act.

Industrial Tribunals call the cases mentioned in II and III schedule of Industrial

Dispute Act.

National Tribunal call the cases which involve questions of national importance or are

of such a nature that Industrial establishment situated in more than one state are likely

to be interested in or affected by such disputes.


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(D) Joint Committees in RSP

Central Safety Committee

The Central Safety Committee (CSC) is a statutory requirement under Orissa

Factories Act is functioning at Rourkela Steel Plant comprising Management's

representatives and employees representatives who are basically members of the

recognized union as prescribed under the factory rules.

Orissa Factory rules, 1950 stipulates that the safety committee shall consist of equal

number of representatives of the management and the employees and the minimum

number of representatives shall be 6.

In order to comply the observation of the Inspector of Factories and Boilers, Rourkela

zone -I, Rourkela, there was no scope to include any person who is not an employee

of RSP. Accordingly, the CSC was reconstituted on 2003 and 2004.

To improve safety consciousness and make the movement broad based, 9 "Safety

committees of Departments" zone wise, have been constituted covering all the areas

of the Integrated Steel Plant as well as Township.

Central Consultative Committees (CCC) -

In addition to the measures taken for implementation of various activities concerning

welfare, cleanliness, punctuality, system improvement etc. further steps were taken to

have broad based discussion on consultations on the aforesaid aspects and other allied

issues by involving other employees forms and important groups to improve

production and productivity.

All registered trade unions who had participated in the verification of membership

through secret ballot in RSP were called upon to participate in discussions at routine

intervals with a Central Consultative Committee constituted by the management

representing various departments to improve welfare, safety and other amenities

concerning employees.

Canteen Managing Committee (CMC) -


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Under secretary of govt. of Orissa Labour and employment dept. vide his letter dated

03.12.1998 intimated that the members of the canteen managing committee are

decided to be nominated from amongst the workers of the factory belonging to the

recognized union instead of conducting election through secret ballot system.

Reconstitution / change of members has been done on several occasions from time to

time and the committee is functioning smoothly.

The manager of the factory has the right to nominate the members from among the

workers of the factory belonging to the recognized union to the CMC. The CMC was

last reconstituted on 16.02.2004 and the melting of the CMC is held from time to time

and functioning smoothly.

(E) Works Standing: Order

Works Sanding Order provides the frame work to an organisation. This is a booklet

containing company's rules, regulations, procedures in accordance with section 7 of the

industrial employment (Standing Order Act, 1946).

Works Standing Order of RSP contains certain provisions, rules and regulations regarding

leave, misconduct, strike, lockout, holdings, discharge, dismissal, deductions, fines,

complaints, overtime, resignation, P .F ., stoppages etc which provides a systematic

procedure to maintain industrial relations. In other words we can say that Works Standing

Order is basically needed to secure and promote better industrial relations.

(F) Suggestion Scheme

Motivation and Moral is also helped through an appropriate suggestion scheme. For example

the suggestion scheme is described as partnership for progress scheme at RSP. According to

the company, it has helped in boosting the employee's moral under this scheme. Some cash

awards are offered to employees who come up with practical ideas to: -

1. Increase in production, higher productivity, improvement in production.

2. Improvement in methods machinery, equipment or tools process layout,

practices and procedure.

3. Reduction in cost wastage or spoilage.


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4. Reduction in frequency of idle time or repair and maintenance of machinery,

equipment tools etc, removal of hazards to health and possibility of accident.

5. Increase in utility, equality, yield or output of products.

6. Conservation of materials energy, times in process or their utilization for

better purpose.

(G) AWARDS FOR LONG TERM SERVICES:-

The company has a provision to make an award to the person for long service sometimes in

money, a deal or in kind. If an employee has completed 25 years of continuous services he

becomes eligible for long service award of 25 years service. It is a silver medal and a dinnerset or a specific amount.

TRADE UNION:

According to Data Yoder, "A Trade Union is a continuous association of Wage - learners for

the purpose of maintaining or improving the conditions of their work life."

The recognition of Trade Union in Rourkela Steel Plant is conducted by rules for verification

of membership and recognition of Trade Union's through secret ballot in industry .The

Rourkela Sramika Sangha (RSS) affiliated to Indian National Trade Union Congress

(INTUC) has been recognized as the sole bargaining agent for all RSP employees at Rourkela

falling in the union spheres and the union existing in RSP. The other trade unions other than

RSS are:

1. RMS -Rourkela Majdoor Sangha

2. SETU

3 . RIKKS

4. RWU -Rourkela Workers Union

5. SEAR

6. ILU - Ispat Labour Union


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7. HSWA -Hindustan Steel Workers Association

8. KISS -Kalinga Ispat Sramika Sangha

9. JMS -Jharkhand Majdoor Sangha

10. RSP -Rourkela Sramika Panchayat

The recognized union in RSP is given the following facilities: -

An office outside the premises of the industry with minimum fittings and fixtures,

electricity and water supply, free of cost

Adequate number of office furniture one for all for office purpose.

Wherever possible, one internal telephone connection to the union office and at least

two connections to the office bearers who are employee of industry or establishment

and reside in the country's township.

To provide transport for the office bearers of the union then called for discussion by

the employer at places other than in the industry an allow TA/DA to such personnel as

per their entitlement treating the day shift discussion as on duty.

To allow minimum of two representations to at least conciliation, arbitration and

adjudication cases in their cost.

All Registered Trade Unions who had participated in the verification of membership through

secret ballot in RSP were called upon to participate in the discussion at routine intervals with

a central consultative committee constituted by the management representing various

departments to improve welfare safety and other amenities concerning employees.

INDUSTRIAL DISCIPLINE:

The word 'DISCIPLINE' connotes that the number of a group should reasonably conformed.

Webster's dictionary gives three meanings of the word discipline. First it is the training that

corrects moulds, strength or profit. Secondly it is the control gained by enforcing obedience.

Thirdly it is essential for the smooth running of industrial peace which is the very foundation

of industrial democracy.


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In RSP all the settlement machineries are there to deal with causes of misconduct. With

impartiality and fairness has been introduced in the works standing order which as a whole

provides abetter discipline in the company.


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NEW TRENDS OF INDUSTRIAL RELATION :-

The march of RSP towards profit after sustaining loss for last several years is now noticeable

from its result oriented performance, during 2003 -2004. The combined efforts of all its

employees and officers under the leadership of the managing director have made the

turnaround of RSP a successful phenomenon. This is now being sustained and improving

continuously.

Mass Contact Exercise

This meeting is popularly known as MCE in RSP. It is a unique procedure prevailing in RSP

conducted by the MD itself. In this meeting the MD interacts with merely 1500 workers

every week (Wednesday, for 2 hours ). In this interaction nearly 50 different employees from

all the departments of RSP priorities before the organisation are spilt out and factors that can

pull back the plant from profitability are discussed. In all such interaction safety of human

lives and maintenance of plant machinery and equipment are focused, the workers also give

their suggestion, discuss about their grievances along with the company's profitability.

Very encouraging results have been achieved from a large number of workshops, interaction

sessions, information sharing meetings and mass contact exercises on the survival and futureof RSP. Workers have started thinking for further improvement of the plant and have come

out with various suggestion many of which have been implemented such as workers

participation in the plant under the aforesaid process has reached its zenith and all the

employees both executives and non executives have thus directly participated in the decision

making process of the management. All this has resulted in improved work life culture,

transparency in administration and an understanding of the need of hour to make the plants

new found profitability a sustainable proposition.

All the above activities are driven by the MD itself under a movement called "SAMSKAR"

which is by itself unique in Indian Corporate history. The SAMSKARmovement states that:

-

"We have to create and sustain a peaceful work environment where every employee

can contribute to the plant in assigned area of work with full freedom and dignity and without

fear."


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In addition to the measures taken for implementation of various activities concerning welfare,

cleanliness, punctuality, system improvement etc steps have been taken to have broad base

discussion and considerations on the aforesaid aspects and other allied issues by involving

other employees and other important groups to improve production and productivity.

Employee Relations and Employee Services at SAIL, RSP

In SAIL employee relations and employee services go hand in hand. Personalised services to

employees improve the employee employer industrial relationships. The IR scenario in

SAIL has been fairly satisfactory. The concern for human beings transforms itself into SAIL.

Lookiong after the human resource is the main concern, which brings about credibility and

image in the organization.

Employee services in SAIL:

To look after the human resources in

i. Proper recruitment

ii. Efficient training

iii. Looking after promotions, transfers and leaves.

iv. Redressed of grievances

v. Housing and medical facilities.

vi. Recreational facilities.

vii. Other services.

The need is to provide these personalized services with efficiency, speed and dedication. It is

the responsibility of the organization to ensure that individuals get a proper induction to the

organization are trained periodically to do their job.

In SAIL employee relations are improved by:

i. Adopting preventative rather than reactive strategies.

ii. Time bound implementation of unanimous recommendations of Bipartite forums.iii. Monitoring of unproductive work practices.

iv. Better administration of welfare facilities.

MANPOWER SUMMARY OF RSP: -

It is no wonder that today the total workforces of RSP i.e. about 22000 employees are

committed like never before to profitability and prosperity, meaning thereby the profitability


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for the steel plant and prosperity for the employees as well as those who depend on it for a

livelihood.

YEAR WORKS

EXECUTIVES NON-EXECUTIVES TOTAL

2004 - 2005 1381 16292 18610

2005 - 2006 1465 16345 17810

2006 - 2007 1445 15949 17394

2007 - 2008 1361 15534 16895

2008 - 2009 1303 15199 16502


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YEAR NON-WORKS


2004 - 2005 704 3977 4681

2005 - 2006 831 3656 4487

2006 - 2007 765 3521 4286

2007 - 2008 820 3459 4279

2008 - 2009 804 2886 3690

YEAR WORKS & NON-WORKS


2004 - 2005 2085 20906 22991

2005 - 2006 2296 20001 22297

2006 - 2007 2210 19470 21680

2007 - 2008 2181 18893 21174

2008 - 2009 2107 18085 20192

EEFFCTS OF POOR INDSTRIAL RELATIONS

Poor Industrial Relation produces highly disquieting effects on the economic life of the

country. We may enumerate the ill-effects of poor Industrial Relations as under:

1. Multiplier effects: Modern industry and for that matter modern economy are

interdependent. Hence although the direct loss caused due to industrial conflict in any

one plant may not be very great, the total loss caused due to its multipliers effect on

the total economy is always very great.

2. Fall in normal tempo: poor Industrial Relations adversely affect the normal tempo of

work so that work far below the optimum level. Costs build up. Absenteeism and


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labor turnover increase. Plants discipline breaks down and both the quality and quality

of production suffer .

3. Resistance of change: Dynamic industrial situation calls for change more or less

continuously. Methods have to be improved. Economics have to be introduced. New

products have to be designed, produced and put in the market. Each of these tasks

involves a whole chain of changes and this is resisted bitterly if these are industrial

conflict.

4. Frustration and social cost: every man comes to the work place not only to earn a

living. He wants to satisfy his social and egoistic needs also. When he finds difficulty

in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll

in terms of human frustration. They reduce cordiality and aggravate social tension.


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PROBLEMS OF INDUSTRIAL RELATION:

Due to surplus of manpower in Rourkela Steel Plant labour productivity could not be

achieved at the desired level which creates some problems in Industrial Relation situation of

RSP.

A good number of employees had been recruited earlier are not fit for that posts in

which they are in now so they are unable to understand the practical scenario, which become

an obstacle in Industrial Relation of RSP .

Multiplicity of trade unions also poses a problem.

Sometimes terrible situations create due to some misunderstanding between

management and worker by Trade Union.

Rigid labour legislation delay in disposal of grievances causes harassment for the

workers.

A VIEW FROM WORKERS AND MANAGEMENT

We have conducted an interview through questionnaire method and collected some

information regarding suggestions to improve healthier Industrial Relation in RSP from

worker management and union as well.

Workers suggest that:

There should be awareness programmes to be organized by he management in respect of the

benefits of good relationship and better future.

Union Representatives suggest that:

Vandalism in name of trade unions should not be tolerated within the working premises of

Rourkela Steel Plant.

Management suggests that:


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There should be proper co-operation between management and workers. Workers should help

the management in decision making process so that the Industrial Relation situation and

productivity of Rourkela Steel Plant is better possible.


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SUGGESTIONS

Both management and unions should develop constructive attitudes towards each

other .

All basic policies and procedures relating to Industrial Relation should be clear to

everybody in the organization and to the union leader. The personnel manager must

make certain that line people will understand and agree with these policies.

The personnel manager should remove any distrust by convincing the union of the

company's integrity and his own sincerity and honesty. Suspicious, rumors and doubts

should all be put to rest.

The personnel manager should not vie with the union to gain workers' loyal to both

the organization. Several research studies also confirm the idea of dual allegiance.

There is strong evidence to discard the belief that one can owe allegiance to one group

only.

Management should encourage right kind of union leadership. While it is not for the

management to interfere with union activities, or choose the union leadership, itsaction and attitude will go a long way towards developing the right kind of union

leadership. "Management gets the union it deserves" is not just an empty phrase.

Some awareness programmes should be arranged so as to avoid the ignorance of

illiterate workers.

Both the management and workers should shoulder their responsibilities properly in

order to minimize burden over a few mass.

The grievances of workers should be taken into consideration individually to free

them from mental anguish and allow them to work without any hesitation.

Workers should be given chances to show their creativity and talent before

management and must be rewarded for that.


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The union for their interest workers often shows that the management is superior and

there is a large gap between them so this type of wrong notion should be confirmed to

them.

The management should give fair and prompt decision to the workers so that they

don't favour to knock the doors of court of law.

The workers must also be co-operative to their management and help them in

achieving the profit of the company.

CONCLUSION

The study that has been conducted has resulted in justifying a wide scope for further

research and analysis in this field within the organization. It has been witnessed that

RSP, has grown by leap and bounds and its facilities and policies are world class in

comparison to other steel company in India. Before the year 2002, Rourkela Steel

Plant suffered continuously from huge loss and was unable to provide maximum

benefits to its workers. There by increasing the quality and quantity of production this

organisation tried to create its existence in this competitive steel world. After this the

management and worker both sweat for the sake of Industry as well as for themselves.

From last 3 years RSP is gaining profit and is doing well for the betterment of the

employees like extending its welfare and health facilities to a greater extent.

A very healthy and friendly atmosphere is developed within its premises. The workers

directly interact with the management for their grievances and other matters through

Mass Contact Exercise. Even the management is looking forward with some proactive

actions in order to avoid strikes, lock-out or any type of other violent situation. Due tothis the interference of unions are gradually loosing their value.

RSP is always trying to facilitate the self respect and dignity of its employees. Both

the executives and non executives are cent percent efficient. RSP take a lot of care not

only of it employees but also their families. Nowadays it has become a proud for the

whole democratic nation and each one of them wants to be a proud member of it.

It has also been seen that there has been a sincere effort on the part of RSP to providethe best possible solutions for their growth and development, both personally and


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professionally. There is a clear understanding of the way each individual's

contribution is related in regarding the achievements of the organizational goals. The

researcher has provided a glimpse of the RSP industrial relation in the study and

through a few humble suggestions hope to provide a few possible solution in order to

enhance the work experience and employee's morale in RSP .

RSP is considered to be the turning point in the history of Indian Steel Company. In

the major leap forward, RSP has not adhered the need for self sufficiency in steel but

also given the country a technological edge in producing this strategic metal as per the

world standard. With consistent track record in capacity utilization, technology

absorption, quality assurance, export performance and posting of profits, RSP is a

bright example of India's industrial capacity. And keeping the present scenario in the

view it can be concluded that RSP is the torch bearer among all sections in the never

ending path of success.


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Industrial Relation Issues in Steel Authority of India Ltd

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