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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
EXECUTIVES NON-EXECUTIVES TOTAL
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
EXECUTIVES NON-EXECUTIVES TOTAL
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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