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Indian Oil Corporation Limited Project Report on Industrial Relation

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 GOVT FIRST GRADE COLLEGE THIRTHAHALLI Page 1 P P R RO O  J  J E E C C T T  R RE E P P O OR RT T  O ON N   I  I N N D DU U S S T T R R  I  I  A  AL L R RE E L L  A  AT T  I  I O ON N   A  AT T  INDIAN OIL CORPORATION LIMITED IN HARMONY WITH NATURE U U N N D DE E R R T T H H E E  G G U U  I  I D D  A  AN N C C E E  O OF F  S S U U B BM M  I  I T T T T E E D D B BY Y  
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GOVT FIRST GRADE COLLEGE

THIRTHAHALLI Page 1 

P P RROO J  J E E C C T T  RRE E P P OORRT T  

OON N  

 I  I N N DDU U S S T T RR I  I  A ALL RRE E LL A AT T  I  I OON N  

 A AT T  

INDIAN OIL CORPORATION LIMITED

IN HARMONY WITH NATURE

U U N N DDE E RR T T H H E E  G G U U  I  I DD A AN N C C E E  OOF F   S S U U BBM M  I  I T T T T E E DD 

BBY Y  

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PREFACE Knowledge has two aspects - theoretical and practical and no theoretical concept is complete

without having knowledge of its practical application. A few weeks professional training programme

was introduced as a part of curriculum of P.G.D.M. This summer training programme proves

 beneficial to the future managers as they are confronted with the problems of actual work environment

during their training period.

As per the curriculum requirement , I did project on INDIAN OIL CORPORATION LTD. In

INDIA, THIRTHAHALLI. Working in such a big concern, no matter for a very small period was

really a matter of pride. My area of work in that concern was confined to Human resource department

and moreover it was not possible for me to cover all the areas of human resource department in such a

short period of time so I concentrated my working on the project assigned to me i.e. INDUSTRIAL

RELATION. So the learning during the training in INDIAN OIL CORPORATION LTD., a report of

that is being presented in the following pages.

KIRAN D

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ACKNOWLEDGEMENT 

Intention, dedication, concentration and work are very much essential to complete any

task. But still it needs lot of support, guidance, co-operation of people to make it successful.

Heart full thanks to all the respective persons who support and guide me.

I have no words to express a deep sense of gratitude to the management of

INDIAN OIL CORPORATION LIMITED for giving me an opportunity to pursue my

internship.

I sincerely thank _______________  for giving me more than just a training place and

an opportunity for understanding of what is “a good professional culture” 

I express my deep sense of indebtness towards  _________________ (Senior human

resource Manager, Thirthahalli region) for providing me valuable information.

I am also thankful to the officers of training and development department.

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THIRTHAHALLI Page 4 

DECLARATION

I _______________ ,a bonafide student of ________________________________

hereby declare that the Project entitled “INDUSTRIAL RELATION” is an original work and

the same has not been submitted by any other student of my class.

OBJECTIVE OF THE STUDY 

My topic is I.R. the industrial relation, the relationship between the employer andemployee on the basis of certain terms and conditions of employment.The objective of my study is very broad. In keeping consideration the Thirthahalli Refineryi.e the part of IOCL. I broadly concentrated on the cordial relationship between themanagement and worker.

As we know that employees are the assets of the organization and without giving proper attention and satisfaction to the employees, no one organization can survive in thelong run.As a matter of fact, I can say that the employees and the workers are the really the backbone

of IOCL. Without it the organization can‟t get profit. 

I n the context of Thirthahalli Refinery, I can say that workers and employees aresatisfied at the great extent and there is not any strike from January 2009. Also my guide toldme that lockout, layoff and retrenchment having no any relevance in the ThirthahalliRefinery.

So, at the end I want to conclude as the objectives of my study are:

1.  Cause and success of cordial relationship between the employer and employee.

2.  The condition of Trade Unionsnery

3.  Types of grievances arised in ref

4.  Machineries for redressing the grievances

5.  Working conditions of plant

6.  Payment and other factors.

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SCOPE OF THE STUDY 

The relationship between employer and employee is the most important relationship

in the corporate world. The positive relationship between both of them is effective technique

for the growth of the organization. It would almost impossible to increase the production

without greatest co-operation between employer and employee.

One of the most important and the challenging task of the manager is to satisfy

employee to a large extent and to minimize their conflicts. In order to satisfy employees and

manager must have to adopt motivational factors, incentives schemes.

My topic is I.R, which is broadly related with the relationship between the employer

and employee with the terms and conditions of employment.

So, the I.R is very broad topic in present scenario, every company want to enhance its

 productivity. But the productivity can‟t be improved unless and until the employees are not

satisfied. Without satisfying the employees, the organization can‟t go in the long run and

can‟t compete with its competitors.

In order to enhance productivity and satisfying the employees, they have to maintain

a cordial relationship between employees, employer and Government. So that, they can

survive in the long run and can compete with its competitors.

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EXECUTIVE SUMMARY 

My project is based on “INDUSTRIAL RELATION” at Indian Oil Corporation

Limited, THIRTHAHALLI. 

INDUSTRIAL RELATION Analysis is a post mortem of the organization‟s Industrial

relation system. It measures the ability of the organization to meet the requirement of both

employers and employees efficiently or not. Its helps in understanding the actual condition of

workers in THIRTHAHALLI REFINERY.

In this project, I analyzed the different aspects of industrial relation at Thirthahalli

Refinery. My prime objective is to interpret the policies and procedures adopted in

maintaining the industrial relation.

In this study, I had used Descriptive Research Design. This research design is about

the characteristics of particular things. The engraved data is collected from various websites,

manuals, monthly periodicals and different time periods.

My analysis of the study undertaken is quite satisfactory which shows that refinery

has proper system of maintaining industrial relation.

The report includes the concepts of industrial relation, the causes of different

grievances in the organization and the methods and procedures of their redressal with the help

of different laws of Indian Government. 

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THIRTHAHALLI Page 7 

CONTENTS 

PARTICULARS PAGE NO.

CCHHAAPPTTEER R  11-- IINNTTR R OODDUUCCTTIIOONN OOFF TTHHEE CCOOMMPPAANNYY  77--4400 

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CCHHAAPPTTEER R  22-- IINNTTR R OODDUUCCTTIIOONN OOFF TTHHEE TTOOPPIICC  4422--4499 

CCHHAAPPTTEER R  33-- R R EESSEEAAR R CCHH MMEETTHHOODDOOLLOOGGYY  5500--5533 

AA)) R R eesseeaar r cchh MMeetthhooddoollooggyy 

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CCHHAAPPTTEER R  44--  AANNAALLYYSSIISS && IINNTTEER R PPR R EETTAATTIIOONN  5555--5599 

CCHHAAPPTTEER R  55-- CCOONNCCLLUUSSIIOONN  6600--6666 

BBIIBBLLIIOOGGR R AAPPHHYY  6666 

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GOVT FIRST GRADE COLLEGE

THIRTHAHALLI Page 8 

CHAPTER –  1

A) COMPANY’S INTRODUCTION 

B) INTRODUCTION OF THIRTHAHALLI

REFINERY 

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INTRODUCTION 0F THE COMPANY

HISTORY OF INDIAN OIL CORPORATION LTD.

The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover

and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is

administratively controlled by India's Ministry of Petroleum and Natural Gas, a government

entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and

international trading company served the Indian state with the important task of reducing

India's dependence on foreign oil and thus conserving valuable foreign exchange. That

changed in April 2002, however, when the Indian government deregulated its petroleum

industry and ended Indian Oil's monopoly on crude oil imports. The firm owns and operates

seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining

capacity.

1958  

 Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the Chairman.

1959  

 Indian Oil Company Ltd. established on 30th June 1959 with Mr S. Nijalingappa as

the Chairman.

1960

 Agreement for supply of Kerosene and Diesel signed with the USSR. 

 MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for IndianOil

docked at Pir Pau Jetty in Mumbai on 17 th August 1960. 

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1962

 Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Hon‟ble Prime Minister of

India. 

  Construction of Thirthahalli Refinery commenced.

1963  

  Foundation laid for Gujarat Refinery 

  Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.

1964  

  Indian Refineries Ltd. merged with Indian Oil Company with effect from 1

st

 September, 1964, and Indian Oil Company renamed as Indian Oil Corporation Ltd. 

 Thirthahalli Refinery commissioned.

 The first petroleum product pipeline from Guwahati to Siliguri commissioned.

1965

 Gujarat Refinery inaugurated by HE Dr. S.Radhakrishnan, President of India.

Thirthahalli-Kanpur product pipeline and Koyali- Ahmedabad product pipeline

commissioned. 

 IndianOilPeople maintained the vital supply of Petroleum products to Defence

Services during Indo-Pak war.

1967

 Haldia Thirthahalli product pipeline commissioned.Bitumen and marine bunkering

 businesses commenced.

1968

 Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad

Pipelines submitted to Government.

1969

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 Marketing of Madras Refineries Ltd. products commences.

1970

 Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded in favour of

the President of India in 1972.

1971

 Dealership/reservation extended to war widows, disabled Defence personnel, freedom

fighters, etc. for the first time after the Indo-Pak war.

1972

 R&D Centre established at Faridabad. 

 SERVO, the first indigenous lubricant, launched.

1973

 Foundation-stone of Mathura Refinery laid by Mrs. Indira Gandhi, Hon‟ble Prime

Minister of India.

1974

 Indian Oil Blending Ltd. became the wholly-owned subsidiary.

 Marketing Division attained a new watershed with market participation of 64.2%.

1975  

  Haldia Refinery commissioned. Multipurpose Distribution Centres introduced at 132

Retail Outlets pioneering rural convenience.

1977  

  Nutan wick stove launched by R&D Centre.

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1978  

 Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins.

1981  

 Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in

IndianOil and it became Assam Oil Division (AOD) of IndianOil. 

1982

 Mathura Refinery and Mathura-Jalandhar Pipeline commissioned.

1983

 Massive augmentation of LPG storage and distribution facilities undertaken.

 Proposal for the 6 MMTPA Refinery at Karnal submitted.

1984  

 Taluka Kerosene Depots (TKDs) commissioned for improved availability of kerosene

in rural and hilly areas in addition to Multipurpose DistributionCentres.

 Foreshore Terminal at Kandla Port commissioned.

 Integrated Corporate Planning –  a 10-year Perspective Plan and 5-year Long Range

Plan –  initiated.

1985

  New office complex for Registered Office of the Corporation and HeadOffice of

Marketing Division in Mumbai completed. 

1986

 A new Foreshore Terminal at Madras commissioned.

1987

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 Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills and Kumaon.

1989

 Salaya-Mathura crude oil pipeline suitably modified for handling Bombay High

Crude during winter.

1990

 Kandla-Bhatinda product pipeline project approv

  First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at Silchar.

1991  

 Digboi Refinery modernisation project initiated.

  Bunkering facility at Paradip commissioned.

1993  

  New era Micro-processor based Distributed Digital Control Systems replacing the

 pneumatic instrumentations began in refineries.

1994  

 India's first Hydrocracker commissioned at Gujarat Refinery.

 Vision-2000, the Retail Visual Identity programme launched to upgrade retail outlets.

1995

 1,443 km. long Kandla-Bhatinda product pipeline commissioned.

 First lndane Home Shoppe launched.

1996

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 State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes per

annum) commissioned.

  First batch of one-year International MBA (iMBA) programme passes out of

IndianOil Institute of Petroleum Management (IIPM).

1997  

 Business Development received renewed thrust with new functional group.

 Indian Oil enters into LNG business through Petronet LNG -a JV company.

1 1 9 9 9 9 8 8  

 Panipat Refinery was commissioned.

 Haldia, Thirthahalli Crude Oil Pipeline (HBCPL) was completed. The Administrative Pricing Mechanism (APM) was withdrawn from the Refining

Sector effective 1" April 1998. Phase-wise dismantling of APM began.

1 1 9 9 9 9 9 9  

 Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by

Indian Oil on behalf of the oil Industry.

 Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and

Haldia Refineries.

 Manthan -- the IT re-engineering project was launched.

2 2 0 0 0 0 0 0  

 Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore -- the first

Corporate in India to do so.

 Indian Oil entered into Exploration & Production (E&P) with the award of two

exploration blocks to Indian Oil and ONGC consortium under NELP-1

 Y2K compatibility achieved.

 JNPT Terminal was commissioned.

2 2 0 0 0 0 1 1  

 Digboi Refinery completed 100 years of continuous operation.

 Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and

Petrochemicals Ltd. (BRPL) were acquired.

 Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.

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 Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed.

 Eight Exploration blocks awarded to the Indian Oilled consortium under NELP-II.

2 2 0 0 0 0 2 2  

 APM dismantled. Pricing of Petroleum products decontrolled.

 IBP Co. Ltd. was acquired with management control.

 Thirthahalli Refinery expansion project completed.

  New generation auto fuels IOC Premium and Diesel Super introduced.

2 2 0 0 0 0 3 3  

 Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.

Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum Company

to begin downstream marketing operations in overseas market. Lanka IOC became an

independent oil company in Sri Lanka

 Gasahol, 5% ethanol blended petrol, was introduced in select states.

 INDMAX unit at Guwahati Refinery commissioned.

2 2 0 0 0 0 4 4  

  Indian Oil turned a Gas marketer by sale of regasified LNG.

  Indian Oil Mauritius Ltd.‟s 18 TMT state-of-the-art Oil Storage Terminal at Mer

Rouge commissioned

  Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.

  Gasahol, 5% ethanol blended petrol, was introduced in select states.

  INDMAX unit at Guwahati Refinery commissioned.

  Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid.

  Maiden LPG supplies to Port Blair.

2 2 0 0 0 0 5 5  

  The year marked Indian Oil's big ticket entry into the high stakes business of E&P.

  Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability

of producing entire quantity of Euro-III compliant diesel by commissioning the Rs

1046 crore DHDT (Diesel hydrotreating unit).

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THIRTHAHALLI Page 16 

  Indian Oil breached the Rs 150, 000 crore mark in sales turnover by clocking Rs

150, 677 in turnover in fiscal 2004.

  Indian Oil signed a JV agreement with GAIL to enter the city gas distribution

 projects in Agra and Lucknow.

  Indian Oil allowed by Government of India to charter crude oil ships on its own

instead of going through Transchart, the chartering wing of the Ministry of

Shipping.

2006

 Panipat Refinery capacity enhanced from 9 to 12 MMTPA

 World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at

Panipat as mother plant for polyester industry Chennai-Trichy-Madurai product pipeline dedicated to the nation.

2007

 Marketing subsidiary IBP Co. Ltd. merged with parent company.

 Concept of SERVOXpress Centres as one-stop shops for autocare services launched.

 Mundra-Panipat crude oil pipeline with facilities for handling heavy crude oil

commissioned.

  Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and

lubricants at Trincomalee

  Concept of „LNG at the doorstep‟ launched for customers located away from gas

 pipelines

2008

  SERVO lubricants launched in Oman.

  IndianOil Chairman elected as President of World LP Gas Association.

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GOVT FIRST GRADE COLLEGE

THIRTHAHALLI Page 17 

Management

Chairman 

B M Bansal Chairman & Director (Planning & Business Development and R&D)

Board of Directors 

S V Narasimhan 

Director (Finance)

V C Agrawal 

Director (Human

G C Daga 

Director (Marketing)

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THIRTHAHALLI Page 18 

Resources) &Director-in-charge (IBPDivision)

B N Bankapur Director (Refineries)

K K JhaDirector (Pipelines)

P K Sinha Additional Secretary &Financial AdvisorMinistry Of Petroleum& Natural Gas

Sudhir Bhargava Additional SecretaryMinistry of Petroleum &

 Natural Gas

Prof.(Mrs.) Indira J.

Parikh Former Prof. IIM,Ahmedabadand President, FLAME,Pune

Anees Noorani Managing Director,Zodiac ClothingCompany Ltd.

Michael Bastian 

Former Chairman &Managing Director,Syndicate Bank

Dr.(Mrs.) Indu Shahani 

Principal, HR College ofCommerce & Economics,Mumbai and Sheriff ofMumbai

Prof. Gautam Barua, 

Director,Indian Institute ofTechnology,Guwahati

N.K. Poddar 

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THIRTHAHALLI Page 19 

Senior Advocate, Kolkata

Raju Ranganathan Company Secretary

Principal Executives 

D K Samantaray Chief Vigilance OfficerVipin Kumar Advisor (Security)

Executive Directors (Corporate Office) 

V P Sharma Internal Audit

V K Sood Corporate Finance

S C Jain Finance-Business Development

R Narayanan Corporate Affairs

K K Gupta IndianOil Institute of Petroleum ManagementThomas Antony Human Resources Development

A M K Sinha Corporate Planning & Economic Studies

 N K Khosla Safety, Health & Environment

Satish Kumar Human Resources

Ms. D Lilly Pricing & Taxation

V S Okhde Exploration & Production

A S Ujwal International Trade

S Ramasamy Information Systems

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GOVT FIRST GRADE COLLEGE

THIRTHAHALLI Page 20 

S C Meshram Petrochemicals

R S Solanki CEO, IndianOil Foundation

A K Marchanda Gas

 N K Gupta Optimisation

S K Sarangi Renewable Energy

Executive Directors (Refineries Division Headquarters) 

P K Goyal Finance (incharge)

H V Singh Incharge Projects PDRP

 N K Bansal Shipping

 N K Khosla Projects - PNCP

Sudhir Bhalla Human Resources

A Panda Safety & Environment

C S Das Maintenance & Inspection

U L Dohare Projects

A S Basu Operations

S K Garg Information Systems

V K Bansal Finance - PDRP

R Shankar Finance

Executive Directors (Refineries Division) 

J P Guharay Mathura Refinery

A K Roy Haldia Refinery

G Bhanumurthy Guwahati Refinery

R K Ghosh Incharge Panipat Refinery

P Sur Gujarat Refinery

S N Choudhary Projects-PNCP, Panipat

A Saran Bongaigaon RefineryAshwini Sharma Panipat Refinery

M K Padia Thirthahalli Refienery

M Vijayawergia Projects PDRP Site

Executive Directors (Pipelines Division)

T Vasudevan Finance

A K Rauniar Human Resources

Anil Tandon Projects PLHQS K Sinha Western Region Pipelines

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GOVT FIRST GRADE COLLEGE

THIRTHAHALLI Page 21 

B V Jankiram Operations

Executive Directors (Marketing Division Headquarters) 

Gautam Datta Incharge Finance

Gautam Dutta Human Resources

 N K Bansal S&EP

Amitava Chatterjee Lubes

R Sareen Aviation

M Nene Supplies

Mrinal Roy Engineering

 N Srikumar Andhra Pradesh State Office

S K Gupta Consumer Sales

V K Jeychandran Gujarat State Office

Satwant Singh LPG

M Ramana Operations

D Sen West Bengal State Office

Deepak Pandya Maharashtra State Office

E Unnikrishnan Coordination/Pricing/Planning

H S Bedi Retail Sales

DSL Prasad Tamil Nadu State OfficeP D Bhaukhandi QC

S Krishna Prasad Finance

Executive Directors (Assam Oil Division) 

Subrato Ghosh Assam Oil Division, Digboi

Executive Directors (R&D Centre) 

Dr. R K Malhotra Incharge R&D

Dr. K P Naithani Lube Technology

Executive Directors (IBP Division) 

S K Roy Cryogenics

V Ramaswamy Finance

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INDIAN OIL CORPORATION LTD.

  Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian

Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).

  At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success

right from inception in the year 1964. The Corporation‟s objectives in this key performance

area are enshrined in its Mission statement: "…to help enrich the quality o f life of the

community and preserve ecological balance and heritage through a strong environment

conscience” 

  .From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38

million tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000

times.

  Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a

sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion) and profits of Rs. 6,963 crore (US $

1.74 billion) for the year 2007-08.

  Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'

listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest

 petroleum company in the world.

  Indian Oil has ambitious investment plans of Rs. 43,250 crore in the next five years. By

2011-12, the Indian Oil Group, with 80 MMTPA refining capacity in its fold, would be playing

a key role in realising India‟s bid to emerge as an export-oriented hub for finished products. 

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PRODUCTS 

Indian Oil is not only the largest commercial enterprise in the country it is the flagship

corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely

recognized as India‟s dominant energy brand and customers perceive Indian Oil as a reliable

symbol for high quality products and services.

Benchmarking Quality, Quantity and Service to world-class standards is a philosophy

that Indian Oil adheres to so as to ensure that customers get a truly global experience in India.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at

another level. While quality, reliability and service remains the core benefits to the

customers.

  Autogas

  Indian Oil Aviation Service

  Bitumen

  High Speed Diesel

  Bulk / Industrial Fuel

  Indane Gas

  SERVO Lubricants & Greases

  Marine Fuels & Lubricants

  MS / Gasoline

  Petrochemicals

  Special Products

  Superior Kerosene Oil

  Crude Oil

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INDIAN OIL PERFORMANCE 2010-2011 

The Corporation's refineries surpassed 100% capacity utilisation and clocked the

highest ever throughput of 51.4 million tonnes. Breaching the 10,000 km mark in length, the

 pipelines network registered the highest ever operational throughput of 59.5 million tonnes of

crude oil and petroleum products.

During the year 2010-2011, IndianOil's sales volume registered a growth of 5.6% and went

up to an unprecedented 62.6 million tonnes of petroleum products as compared to 59.30

million tonnes during the previous year. Sales of natural gas also went up to 1.7 million

tonnes in 2008-09. In addition, product exports rose to 3.64 million tonnes from 3.38 million

tonnes in the previous year.

Among new businesses, Natural Gas marketing and Petrochemicals generated revenues of

Rs. 2425 crore and Rs. 2760 crore during the year 2010-2011

Core Performance 

Financial Performance 

  IndianOil‟s gross turnover (inclusive of excise duty) for the year 2008-09 reached a

new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the

 previous year. The Profit After Tax was Rs. 2,950 crore.

  For the year 2008-09, IndianOil has received Special Oil Bonds worth Rs. 40,383

crore from the Government of India in addition to Rs. 18,210 crore received from

upstream companies towards subsidy-sharing.

  The Gross Refining Margin for April-March 2009 is USD 3.69 per barrel as compared

to USD 9.02 per barrel during the previous year

Marketing 

  IndianOil maintained its dominance in the market place and clocked the highest ever

level of sales during the year 2010-2011

  Domestic sales grew by 5.6% from 59.30 million tonnes in the previous year to 62.6

  million tonnes in the year 2010-2011

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Refineries

  For the year 2010-2011, IndianOil's eight refineries achieved the highest ever

throughput of 51.4 million tonnes and 103.4% capacity utilisation, registering 8.4%

growth in crude oil processing over the previous year.

  IndianOil refineries clocked the lowest overall specific energy consumption of 64

MBTU/BBL/NRGF (MBN) during the year as against 67 in 2010-2011

IndianOil imported a record quantity of 47.8 million tonnes of crude oil in 2008-09 as

against 46.11 million tonnes in 2010-2011

  During the year, IndianOil entered into term contracts with Angola and Brunei for

import of low sulphur crude oil and over 95% of the LPG imports were finalised

through term contracts.

Pipelines

  During the year, IndianOil's network of underground highways breached the 10,000

kilometre mark and registered the highest ever operational throughput of 59.5 million

tones. 

  Compared to the previous year, the crude oil pipelines registered a 6.7% growth at

38.2 million tonnes.

  The year was marked by the commissioning of a record number of pipeline projects,

the foremost being the Paradip-Haldia crude oil pipeline and IndianOil's first Panipat-

Jalandhar LPG pipeline.

  Other projects commissioned during the year include the Koyali-Ratlam product

 pipeline, ATF Pipeline from CPCL (Manali) to Chennai AFS . 

Projects

  IndianOil is implementing projects of over Rs. 60,000 crore currently. Major ones

among them are: 15 MMTPA refinery at Paradip (Rs. 29,777 crore);

  capacity augmentation of Panipat Refinery (from 12 to 15 MMTPA, Rs. 1007.83

crore);

  MS quality improvement projects at Panipat (Rs. 1,131 crore), 

New Businesses

  IndianOil took big strides in new businesses during the year 2010-2011  

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VARIOUS DIVISIONS OF IOCL 

REFINERIES DIVISION

Indian Oil controls 10 of India‟s 18 refineries –   at Digboi, Guwahati,

Thirthahalli, Koyali, Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon

 –   with a current combined rated capacity of 54.20 million metric tones per annum

(MMTPA)* (one million barrels per day). Indian Oil registered a record throughput of

36.63 millions tones during the year 2004-05 with a capacity utility of 88.6%. Indian

Oil accounts for 42% of India‟s total refining capacity. Overall Energy consumption

of Indian Oil refineries was lowest at 109 MBTU/BBL/NRGF against earlier best of

111, achieved in 2003-04. Gross Refining Margin (GRM) rose by almost one dollar

 per barrel during the year 2004-05. It is expected to be the highest at US$ 6.25/bbl

for the year 2004-05 as against $5.30/bbl in 2003-04. All refinery units are accredited

with ISO 9002 and ISO 14001 certifications.

DIGBOI REFINERY (UPPER ASSAM)

The Digboi Refinery in North Eastern India is India‟s oldest refinery and was

commissioned in 1901. Originally a part of Assam Oil Company, it became part of

Indian Oil in 1981, its original refining capacity has been 0.5 MMTPA since 1901.

Modernization project of this refinery has been completed and the refinery

now has an increased capacity of 0.65 MMTPA. The Digboi refinery produces

distillates, heavy ends and excellent quality wax from indigenous crude oil produced

at the Assam Oil fields. Petroleum products are supplied mainly to northeastern India

 primarily through road and by rail wagons. A new Delayed Coking Unit of 1,70,000

TPA capacity was commissioned in 1999. A new solvent dewaxing unit for

maximizing production of microcrystalline wax was installed and commissioned in

2003. The refinery has also installed Hydrotreater to improve the quality of diesel. 

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GUWAHATI REFINERY

The Guwahati Refinery in North East India –  the first Public Sector refinery of

the country-was commissioned in 1962 with a capacity of 0.75 MMTPA which wassubsequently increased to 1.0 MMTPA through debottlenecking projects.The refinery

 processing only indigenous crude oil from the Assam oil fields. It supplies petroleum

 products to North-Eastern India and surplus products onwards to Siliguri in West

Bengal in 2003. Hydrotreater unit for improving the quality of diesel has been

commissioned in 2002. In 2003, the refinery installed an IndMax Unit  a novel

technology developed by Indianoil‟s R & D center for upgrading heavy ends into

LPG, motor spirit and diesel oil. 

THIRTHAHALLI REFINERY

C further to its current capacity of 6.0 MMTPA through low cost revamping

and debottlenecking. Matching secondary processing facility such as RFCC (Resid

Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement

have been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli

crude oil pipeline, the refinery now received imported crude for processing. A CRU

(Catalytic Reformer Unit) was also added to the refinery in 1997 for production of

unleaded motor spirit. Projects are also planned for meeting future fuel quality

requirements. Thirthahalli refinery supplies distillate products beside eastern India to

northern India through a product pipeline to Kanpur in Uttar Pradesh.

GUJARAT REFINERY

The Gujarat Refiner y at Koyali in Gujarat in Western India is IndianOil‟s

largest refinery. The refinery was commissioned in 1965. Its facilities include five

atmospheric crude distillation units. The major units include CRU, FCCU and the

first Hydro cracking unit of the country.Through a product pipeline to Ahmedabad

and a recently commissioned product pipeline connecting to BKPL product pipeline

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and also by rail wagons/trucks, the refinery primarily serves the demand for

 petroleum products in Western and Northern India.When commissioned, the Gujarat

refinery had a design capacity of 3.0 MMTPA. It was increased to 4.3 MMTPA by

the revamping of three distillation Units. In 1978, its processing capacity was further

increased to 7.3 MMTPA by the addition of a crude distillation unit. Subsequently

the crude capacity was increased to 9.5 MMTPA by 1990 and then by 12.5 MMTPA

in 1999. Since it has been increased to its present capacity of 13.70 MMTPA by low

cost debottlenecking.

HALDIA REFINERY

Haldia Refinery, the fourth in the chain of seven operating refineries of

IndianOil, was commissioned in January 1975. It is situated 136 km downstream of

Kolkata in the district of East Midnapur, West Bengal, near the confluence of river

Hoogly and river Haldi. The refinery had an original crude oil processing capacity of

2.5 MMTPA. Petroleum products from this refinery are supplied to eastern India

through two product pipelines as well as through Barges, tank wagons and tank

trucks.Products like MS, HSD and Bitumen are exported from this refinery.Refinery

was increased to 2.75 MMTPA through de-bottlenecking in 1989-90. Refining

capacity was further increased to 3.75 MMTPA in 1997 with the

installation/commissioning of second Crude distillation unit of 1.0 MMTPA

capacity.Diesel Hydro Desulphurisation (DHDS) unit was commissioned in 1999, for

 production of low sulphur content (0.25%wt.) High Speed Diesel. With augmentation

of this unit, refinery is producing BS-II and Euro-III equivalent HSD at present.

MATHURA REFINERY 

The Mathura Refinery was commissioned in 1982 with an original capacity of

6.0 MMTPA. The capacity was increased to 7.5 MMTPA by debottlenecking and

revamping. With its fluid catalytic cracking units, the refinery mainly produces

middle distillates and supplies them to Northern India through a product pipeline to

Jalandhar, Punjab via Delhi. A hydro cracker for increasing middle distillates was

also completed in 2000. The present capacity of the refinery is 8 MMTPA. In order

to meet future fuel requirements, facilities for improvement in quality of MS & HSD

are under installation and planned to be completed by 2005.

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PANIPAT REFINERY

IndianOil‟s seventh refinery, commissioned in 1998, is located at Panipat, 125

kms away from Delhi, the capital of India, in the state of Haryana in Northern India.

The main units are OHCU (Once-through-hydro cracker), RFCC, CCRU (Continuous

Catalytic Reformer unit) besides other secondary treatment units. This 6 MMTPA

refinery caters to the high demand centers of Northern India. The product to increase

the capacity of Panipat refinery to 15 MMTPA is already under implementation,

which also takes into account future fuel quality requirements for 2005. The

expansion project is expected to be completed in 2005.

MARKETING DIVISION

The Marketing Division of IOCL handles the responsibility of delivering

 petroleum products to the customers. The Marketing Division has set up various

marketing terminals where storage tanks are built up to hold the products. The

 petroleum products are transferred to the marketing terminals by the Pipelines

Division, which charges the Marketing Division for the same. Indian Oil caters to

over 53.2% of India‟s petroleum consumption. 

Indian Oil‟s Marketing Network is spread throughout the country with over

23,000 sales points (the largest in the country

RESEARCH & DEVELOPMENT DIVISION

Indian Oil owns world-class “research and development” centre headed by

Director. It provides services to all other divisions of the Corporation and bin that

sense it is a form of “SHARED SERVICE UNIT.” Established in 1972 for the

development of lube as well as refining process technologies, the Indian Oil R & D

Centre at Faridabad near New Delhi has completed around 30 years of glorious

service to the nation. It is one of its kind in Asia and has grown into a major

technological development center of international repute in the down stream areas of

lubricants, pipelines and refining processes.

Over the years, it has successfully perfected the state-of-the-art lube formulation

technology meeting latest national and international specifications with approvals

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from major original equipment manufacturers. Indian Oil markets around 450 grades

of lubricants under the brand name “SERVO” based on its R&D technology. It has

extensive laboratory and pilot plant facilities to successfully pursue projects in lube,

refining and pipeline areas making it a unique technology centre. Its rich reservoir of

highly qualified / specialized scientific and technical manpower has elevated this

center to global status. Creativity and innovative research has led to technological

innovations, some of which have received prestigious national and international

awards.

ASSAM OIL DIVISION

The assets of the erstwhile Assam Oil Company were taken over by IOCL in

the year 1981. It is kept as a separate division in IOCL. Assam Oil Division owns the

Digboi refinery and is also into marketing. It owns one petrol pump on the Delhi-

Mathura Road.

MISSION  

To  achieve international standards of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and services,

and cost reduction.

To maximize creation of wealth, value and satisfaction for the stakeholders.

To  attain leadership in developing, adopting and assimilating state-of-the-art

technology for competitive advantage.

To  provide technology and services through sustained Research and

Development.

To  foster a culture of participation and innovation for employee growth and

contribution.

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To  cultivate high standards of business ethics and Total Quality Management for a

strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance

and heritage through a strong environment conscience.

VISION  

A  major, diversified, transnational, integrated energy company, with national

leadership and a strong environment conscience, playing a national role in oil security and

 public distribution.

VALUES

Care  –  Stands for  Concern  Empathy  Understanding  Cooperation  Empowerment

Innovation  – Stands for  Creativity  Ability to learn  Flexibility  Change

Passion - Stands for  Commitment  Dedication  Pride  Inspiration  Ownership

  Zeal & Zest

Trust - Stands for  Delivered Promises  Reliability  Dependability  Integrity  Truthfulness

  Transparency

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OBLIGATIONS  

Towards customers and dealers

To  provide prompt, courteous and efficient service and quality products at fair and

reasonable prices. 

Towards suppliers 

To  ensure prompt dealings with integrity, impartiality and courtesy and promote

ancillary industries. 

Towards employees

Develop  their capability and advancement through appropriate training and career

 planning.

Expeditious redressal of grievances

Fair  dealings with recognized representatives of employees in pursuance of healthy

trade union practice and sound personnel policies. 

Towards community To  develop techno-economically viable and environment-friendly products for the

 benefit of the people.

To encourage progressive indigenous manufacture of products and materials so as to

substitute imports.

To ensure safety in operations and highest standards of environment protection in its

manufacturing plants and townships by taking suitable and effective measures. 

Towards Defence Services

To  maintain adequate supplies to Defence Services during Norman and emergency

situations as per their requirement at different locations

\

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CORPORATE OBJECTIVES 

  To serve the national interests in the Oil and related sectors in accordance and consistent with

Government policies.

  To ensure and maintain continuous and smooth supplies of petroleum products by way of

crude refining, transportation and marketing activities and to provide appropriate assistance

to the consumer to conserve and use petroleum products efficiently.

  To earn a reasonable rate of interest on investment.

  To work towards the achievement of self-sufficiency in the filed of Oil refining by setting up

adequate capacity and to build up expertise in laying of crude and petroleum product

 pipelines. 

  To create a strong research and development base in the field of Oil refining and stimulate

the development of new product formulations with a view to minimize/eliminate their

imports and to have next generation products.

  To maximize utilization of the existing facilities in order to improve efficiency and increase

 productivity.

  To optimize utilization of its refining capacity and maximize distillate yield from refining of

crude to minimize foreign exchange outgo.

  To minimize fuel consumption in refineries and stock losses in marketing operations to effect

energy conservation.

  To  further enhance distribution network for providing assured service to customers

throughout the country through expansion of reseller network as per Marketing

Plan/Government approval.

  To avail of all viable opportunities, both national and global, arising out of the liberalization

 policies being pursued by the Government of India.

  To  achieve higher growth through integration, mergers, acquisitions and diversification by

harnessing new business opportunities

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FINANCIAL OBJECTIVES

To ensure adequate return on the capital employed and maintain a reasonable annual

Dividend on its equity capital.

To ensure maximum economy in expenditure. 

To manage and operate the facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment, without

 budgetary support.

To develop long-term corporate plans to provide for adequate growth of the activities

of the corporation.

To  endeavor to reduce the cost of production of petroleum products by means of

systematic cost control measures.

To  endeavor to complete all planned projects within the stipulated time and cost

estimates.

PRINCIPAL SUBSIDIARIES 

Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petronet

India Ltd. (16%); Petronet VK Ltd. (26%); Petronet CTM Ltd. (26%); Petronet CIPL Ltd.

(12.5%); IndianOil Petronas Ltd. (50%); Indian Oil Panipat Power Consortium Ltd. (26%);

Indian Oil TCG Petrochem Ltd. (50%); Librizol India Pvt. Ltd. (50%). 

PRINCIPAL COMPETITORS 

Bharat Petroleum Corporation Ltd.

Hindustan Petroleum Corporation Ltd.

Royal Dutch/Shell Group of Companies.

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SWOT ANALYSIS

STRENGTHS

HIGH FOREIGN EXCHANGE DEBT.

IOCL has managed to significantly cut its borrowing cost due to high share of foreign

exchange debt. Its share of foreign exchange borrowings is increasing with foreign exchange

loans crossing 50% of its total debt compared to 42% at the end of the last financial year. 

HIGHEST MARKET SHARE 

As India's flagship national oil company, Indian Oil accounts for 56% petroleum

 products market share, 42% national refining capacity and 67% downstream pipeline

throughput capacity.

EXPERTISE IN OIL & GAS INDUSTRY

Indian Oil is one of the leaders in providing engineering, construction and

consultancy services to the pipeline industry. Highly qualified professionals with vast

experience execute pipeline projects from concept to commissioning and provide services for

construction supervision and project management.

FOREIGN SUBSIDIARIES AND JOINT VENTURES

Indian Oil is strengthening its existing overseas marketing ventures and

simultaneously scouting new opportunities for marketing and export of petroleum products in

foreign markets. Two wholly owned subsidiaries are already operational in Sri Lanka and

Mauritius, and regional offices at Dubai and Kuala Lumpur are coordinating expansion of

 business activities in Middle East and South East Asia regions. The Corporation has launched

eleven joint ventures (listed separately) in partnership with some of the most respected

corporate from India and abroad . 

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WEAKNESSES

STRINGENT CORPORATE POLICIES 

The decisions relating to administration are taken at the corporate level. Even minor

 proposals are to be referred to the top management. This leads to a delay in decision-making. 

LACK OF MARKETING EFFORTS

Among the public sector oil companies, Indian Oil Corporation is the only one to

follow a weak marketing strategy. It in only in the recent years that the company has started

to market its products. However, still the efforts seem to be weak when compared with the

competitors like BPCL and HPCL.

PROMOTION POLICY

Most of the public sector companies seem to suffer from these lacunae. The

employees are promoted mainly on the basis of experience and not on the efforts and

initiatives displayed by the employee in his work. This results in demotivation and lack of

interest for their work on the part of the hardworking employees, who then tend to shift jobs

to satisfy their need for self-esteem.

TENDER PROCESS

The policy of selection of the lowest bidder tends to affect the quality of the

 products/services on some occasions. A more simplistic procedure is also likely to generate

some savings for the company, since tendering process leads to expenses on account of

advertisement.

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OPPORTUNITIES

Exploration and Production

Indian Oil is metamorphosing from a pure sectoral company with dominance in

downstream in India to a vertically integrated, transnational energy behemoth. The

Corporation is making investments in E&P and import/marketing ventures for oil and gas in

India and abroad, and is implementing a master plan to emerge as a major player in

 petrochemicals by integrating its core refining business with petrochemical activities. 

THREATS

Entry of Big Private players

The opening up of the oil sector for private players poses a threat even for this well-

established company. With Indian players like Reliance and Essar and foreign players like

Shell planning their entry into the Indian scenario, the road seems to be tough for Indian Oil. 

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INTRODUCTION TO THIRTHAHALLI

REFINERY

The Thirthahalli Refinery in Eastern India was commissioned in 1964 with a capacityof 2.0 MMTPA. The refining capacity was increased to 3.0 MMTPA by 1969 andFluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have

 been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli crude oil pipeline, the refinery now received imported crude for processing. A CRU (CatalyticReformer Unit) was also added to the refinery in 1997 for production of unleaded motorspirit. Projects are also planned for meeting future fuel quality requirements. Thirthahallirefinery supplies distillate products beside eastern India to northern India through a product

 pipeline to Kanpur in Uttar Pradesh.

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PRODUCTS FROM REFINERY

With the expansion of Thirthahalli Refinery to 12.0 MMTPA total high speed diesel

 produced from entire refinery will meet BS-II and BS-III Grade required for NCR. After

stabilisation of units, the high value product yield from the refinery will be further improved

 by reducing the production of black oil like HPS and Bitumen. With state-of the-art matching

secondary processing facilities was approved at a cost of Rs.4165 crore.

INTEGRATED POLICY 

ON 

QUALITY, SAFETY, HEALTH & ENVIRONMENT (QSHE)  

SULPHUR

HEAVYPETROLEUMSTOCK 

SKO 

ATF 

MOTORSPIRIT 

NAPHTHALPG

BITUMEN 

HSD 

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''PRISM''(Panipat Refinery Integrated System of Management)

Integrated PolicyQuality, Safety, Health & Environment

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CHAPTER-2 

INTRODUCTION OF THE TOPIC

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INTRODUCTION OF THE TOPIC

INDUSTRIAL RELATION

INTRODUCTION

ABOUT INDUSTRIAL RELATIONS

Industrial Relations is a dynamic socio-economic process. It a “designation of a whole

field of relationship that exists because of the necessary collaboration of men and women inthe employment process of industry”. It is not the cause but an effect of social, political and

economic forces.Economists have traditionally identified four factors of production, viz.,land labour,

capital and organization. The role of labour as a factor of production is becomingincreasingly important in the modern society. Capital and natural resource endowments, nodoubt, are vital elements in the production process but it is labour which contributes most tothe wealth of a company. “Human beings are the active agents who accumulate capital,

exploit natural resources, build social, economic and political organizations and carryforward national development”. Growing industrialization and the rapid expansion of theservices sector resulted in the galloping demand for skilled labour after 50s. The emergenceof the concept of human relations, human resource management (HRM) and human resourcedevelopment (HRD) contributed to the growing importance of labour. The issue ofINDUSTRIAL RELATIONS arose from the issue of divorce of the workers from theownership and management of the production process. This has brought about a sense of

deprivation and loss of independence on the part of workers and is probably the primarycause of industrial disputes. Industrial work has drastically reduced the independence ofworkers and made them mere cogs in the machine  –  a kind of „second class citizens‟. The

disciplinary rules for work have become quite harsh and arbitrary. The heterogeneous natureof workers, illiteracy and politicization of trade unions made it impossible for the workers to

 bargain for their rights unitedly. All these factors have led to growing unrest among the rankof workers.

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Examination of INDUSTRIAL RELATIONS

Employer-Employee interactions: Industrial Relations arise out of employer-employee interactions. These relations cannot exist without the basic building blocks, i.e., theemployer and on one side and the employees on the other side. Web of rules: Industrial

Relations are a „web of rules‟ formed by the interaction of the government, the industry andthe labour. They include the relations between employer and employees and betweenemployers` associations, trade union as well as the State.

Multidimensional: Industrial Relations are fairly multi-dimensional in nature as theyare influenced, by a complex set of institutional, economic and technological factors.

Dynamic and changing: Industrial Relations change with the times, generallykeeping pace with the expectations of employees, trade union, employers` associations, andother economic and social institution in a society.

Spirit of compromise and accommodation: The Industrial Relations system ischaracterized by forces of conflict and compromise on either side. In the large interests ofsociety, both the employer and the employees must put out fires amicably and get along witheach other in a spirits of compromise and accommodation. The individual differences anddisagreements must be dissolved through persuasion and even pressure. The factorsresponsible for conflictful situations need to be resolved through constructive means.

Government’s role: The government influences and shapes IndustrialRelations with the help of laws, rules, agreements, awards of courts andemphasis on usages, customs, traditions, as well as the implementation of its policies and

interference through executive and judicial machinery.

Wide coverage: The scope of Industrial Relations is wide enough to cover a vastterritory comprising of grievances, disciplinary measures, ethics, standing orders, collective

 bargaining, participatory schemes, dispute settlement mechanisms etc.

Interactive and consultative in nature: Industrial Relations include individualrelations and joint consultation between labour, management.

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Factories Acts and Industrial Relations

Factories Act of 1946 is a culmination of a series of earlier acts for IndustrialRelations. The act makes extensive provisions for healthy relations in various areas in the

workplace.

S.NO. Year EHS (Environment, Health, & Safety) REGULATION,

Acts

S.NO.  Year  EHS (Environment, Health, & Safety)

REGULATION,

Acts 

01.  1974/1998  The Water (prevention & control of pollution)Act, including amendments.

02.  1977/1992/2003  The Water (prevention & control of pollution) Act,including amendments. 

03. 1981/1987  The Air (prevention & control of pollution)Act, including amendments.

04.  1982  The Air (prevention & control of pollution) Rules

05.  1986  Environment (protection) Act 1986 includingamendments of 1991, Environment (protection)Act 1986 including amendments of Rules

06.  1989/2000/2003  The Hazardous wastes (mgt. and handling)rules, including amendments 2000/2003

07.  1989/2000  Manufacture, storage and import of Hazardouschemical rules, including amendments rules

08.  1989  The Central Motor Vehicle rules (under motorvehicle Act, 1988)

09.  1963/1995/2000   Noise pollution (regulation & control)rules,2000

10.  2004  Ozone depleting substances (regulation)rules,2004

11.  2000  The battery (Mgt. and handling) rules, 2004

12.  1948/1987  The factories Act (As amended fill 1987)

13.  1952  Punjab state factory rules

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14.  1956/2003  Indian Electricity rules

15. 1934/1997 The petroleum Act (as amendment till 1997)

16. 1984/1993/2004 Gas cylinder rules, including amendment rules,1993/2004

17. 2000/2002 The DG rules, 2000 with amendment 2002

18. 1984 The Explosive Act

19. 2001 Energy conservation Act, 2001

20. 1983/1989 The Explosive rules, including amendmentrules, 1989

21. 1970 The contract labour regulation & control Act,1970 and rules 1971

22. 1952 The Punjab welfare officer recruitment &condition of services rules

23. 1998/2003 The Bio medical waste (Mgt. and handling)rules

24. 1986 The Child labour (prohibition and regulation)Act

This cover section 11-20 and 42-49 & the items covered are related to:

Sec 11:- General cleanlinessSec 12:- Disposal of wastes and affluentSec 13:- Ventilation and temperatureSec 14:- Free from dust and fumesSec 15:- Artificial humidificationSec 16:- Overcrowding and congestionSec 17:- LightingSec 18:- Drinking waterSec 19:- Kamotes and urinalSec 20:- Provision for spittoonsSec 42:- Washing facilitySec 43:- Keeping clothing not worn during working hours and for drying of wet clothesSec 44:- Sitting for workers who are obliged to work standing

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Sec 45:- Maintenance of first aid box with prescribed contents for every employeesSec 46:- Canteen facility for more than 250 workersSec 47:- Suitable rest rooms or lunch room with provision for drinking water and should be

 provided in factory employing more than 150 workers and for more than 500 workersambulance room of prescribed size, prescribed equipments and in charge of qualified medical

and nursing staffSec 48:- Crèches for women, workers more than 30Sec 49:- Appointments of welfare office for more than 500 employees

Some Social Security Provision for workers.(Statutory)

a) Medical treatment and compensation for industrial injury, accident, ailments etc. b) Financial assistance during absence due to ill health or accidents.c) Old age pensiond) Gratuitye) Provident Fundf) Financial assistanceg) Maternity benefit to women worker up an extremely large public sector. There are pointsto examination of the Industrial Relations:

Industrial Relation System in Thirthahalli Refinery:

 An industrial relations system consists of the whole gamut of relationships

between employees and employees and employers which are managed by the

means of conflict and cooperation.A sound industrial relations system is one in which

relationships between management and employees (and their representatives) on

the one hand, and between them and the State on the other, are more harmonious

and cooperative than conflictual and creates an environment conducive to economic

efficiency and the motivation, productivity and development of the employee and

generates employee loyalty and mutual trust.

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 Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers:  Employers possess certain rights vis-à-vis labors. They have the right

to hire and fire them. Management can also affect workers’ interests by exercising

their right to relocate, close or merge the factory or to introduce technological

changes.

Employees: Workers seek to improve the terms and conditions of their employment.

They exchange views with management and voice their grievances. They also want

to share decision making powers of management. Workers generally unite to form

unions against the management and get support from these unions.

Government: The central and state government influences and regulates industrial

relations through laws, rules, agreements, awards of court and the like. It also

includes third parties and labor and tribunal courts.

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Importance of Industrial Relations

The healthy industrial relations are key to the progress and success. Their

significance may be discussed as under – 

Uninterrupted production – The most important benefit of industrial relations is

that this ensures continuity of production. This means, continuous employment

for all from manager to workers. The resources are fully utilized, resulting in the

maximum possible production. There is uninterrupted flow of income for all.

Smooth running of an industry is of vital importance for several other industries;to other industries if the products are intermediaries or inputs; to exporters if

these are export goods; to consumers and workers, if these are goods of mass

consumption.

Reduction in Industrial Disputes  –  Good industrial relations reduce the

industrial disputes. Disputes are reflections of the failure of basic human urges or

motivations to secure adequate satisfaction or expression which are fully cured

by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and

grievances are some of the reflections of industrial unrest which do not spring up

in an atmosphere of industrial peace. It helps promoting co-operation and

increasing production.

High morale  – Good industrial relations improve the morale of the employees.

Employees work with great zeal with the feeling in mind that the interest of

employer and employees is one and the same, i.e. to increase production. Everyworker feels that he is a co-owner of the gains of industry. The employer in his

turn must realize that the gains of industry are not for him along but they should

be shared equally and generously with his workers. In other words, complete

unity of thought and action is the main achievement of industrial peace. It

increases the place of workers in the society and their ego is satisfied. It naturally

affects production because mighty co-operative efforts alone can produce great

results.

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Mental Revolution – The main object of industrial relation is a complete mental

revolution of workers and employees. The industrial peace lies ultimately in a

transformed outlook on the part of both. It is the business of leadership in the

ranks of workers, employees and Government to work out a new relationship in

consonance with a spirit of true democracy. Both should think themselves as

partners of the industry and the role of workers in such a partnership should be

recognized. On the other hand, workers must recognize employer’s authority. It

will naturally have impact on production because they recognize the interest of

each other.

Reduced Wastage  –  Good industrial relations are maintained on the basis of

cooperation and recognition of each other. It will help increase production.

Wastages of man, material and machines are reduced to the minimum and thus

national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher

production with minimum cost and higher profits. It also results in increased

efficiency of workers. New and new projects may be introduced for the welfare of the

workers and to promote the morale of the people at work. An economy organized for

planned production and distribution, aiming at the realization of social justice and

welfare of the massage can function effectively only in an atmosphere of industrial

peace. If the twin objectives of rapid national development and increased social

 justice are to be achieved, there must be harmonious relationship between

management and labor.

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Objectives of industrial relations

The main objectives of  industrial relations system are:-

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.

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.

To raise productivity to a higher level in an era of full employment by

lessening the tendency to high turnover and frequency absenteeism.

To establish and promote 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.

To eliminate or minimize the number of strikes, lockouts and gheraos

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

fringe benefits.

To improve the economic conditions of workers in the existing state of

industrial managements and political government.

Socialization of industries by making the state itself a major employer.

Vesting of a proprietary interest of the workers in the industries inwhich

They are employed.

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Role of State in Indian Industrial Relations

India is socialist democratic republic state. Every elected government of thecountry has as its bounden duty to secure upliftment of all citizen and to that extent

the constitution provides for rules and regulations through a system of laws that

would facilitate progress, redress of grievances and thereby would maintain peace

and harmony in the society!

 As regards "labour" while the State is committed to promote industrial growth

through bilateral relations between employers and employees for mutually healthy

existence, cooperation and progress, the state is NOT oblivious to the fact that

despite best intentions and efforts, sometimes the issues between the parties may

not get resolved at bilateral level and unless a way ro resolve is sanctified through

the constitution of the country and the system of law, there would be impediments to

progress and the expected peace and harmony may get vitiated. Against this

backdrop, it is simple to accept and apreciate that the State has reserved a a role of

an "Umpire or a Referee" in the game of industrial relations in the country. Its

provides all kinds of mechanisms to parties through law to resolve their own

problems bilaterally and has further taken care to provide a quasi judicial/judicial

system for determination of disputes.

Personally and professionally, one feels that this is an ideal system. Unfortunately,

the experience shows that corrupt administration, adventurous unionism, sluggish

 judiciary and tight fisted managements have made a virtual mockery of the concept.

But the idea essentially is excellent in the State becoming an Umpire and to help

parties become mature in resolving problems amongst themselves! The role of the

State in Indian Industrial Relations is that of an Umpire, Elder brother andwell-

wisher! That the concerned parties have vitiated the golden thought is the country's

misfortune!!!

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Employers' organization

 An employers' organization, employers' association or employers' federation

is an association of employers. A trade union, which organizes employees is the

opposite of an employers' organization. The role and position of an employers'

organization differs from country to country, dependent on the economic system of a

country. In countries with a pluralist or anglo-saxon economic system (such as the

United Kingdom and the United States), where there is no institutionalized

cooperation between employers' organizations, trade unions and government, an

employers' organization is an interest group or advocacy group that through lobbying

tries to influence government policy. In these countries, employers' organizations

tend to be weak, with many of their functions taken over by industry trade groups,

which are basically public relations organization.

In countries with a social market economy, such as Austria, Sweden and the

Netherlands, the employers' organizations are part of a system of institutionalized

deliberation, together with government and the trade unions. In tri-partite bargaining

the so-called social partners strike agreements on issues like price levels, wage

increases, tax rates and pension entitlements. In these countries collective

bargaining is often done on a national level not between one corporation and one

union, but national employers' organizations and national trade unions.

INDUSTRIAL RELATIONS MACHINERY IN THIRTHAHALLI

REFINERY

Today we are going to study the means and ways to resolve industrial

disputes. We should understand that whenever there is some problem in our

professional or personal life, we should not get disturbed by the problem .We shouldlook for solutions. Please remember that Go d helps those who help themselves! At

this encouraging note let us get into the technicalities of resolving conflicts in

organisations.

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INDUSTRIAL RELATIONS MACHINERY

Cordial industrial relations and lasting industrial peace require that the causes

of industrial disputes should be eliminated. In other words, preventive steps should

be taken so that industrial disputes do not occur. But if preventive machinery fails

then the Government should activate the industrial Settlement machinery because

non-settlement of disputes proves to be harmful not only for the workers, but also the

management and the society as a whole. The machinery for handling the industrial

disputes has been shown in the following figure:

MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN THIRTHAHALLI

REFINERY

Preventive Machinery(Voluntary or Non-statutory)

Settlement Machinery (Statutory) 

This is sure that all of us would have heard the saying that prevention is

better than cure. Keeping that in mind let us discuss the prevention machinery before

the settlement machinery. I hope all of you have understood the difference between

the two. If you have not, let me explain it to you. The preventive machinery ensures

that there are no disputes. It aims at creating an environment in which the

employees are allowed to participate and there are very less chances of conflicts. It

is thus proactive in nature. Now don’t tell me that you don’t understand the meaning

of pro activity…Anyhow, pro activity means that actions are taken before there is a

problem. The settlement machinery on the other hand is reactive in nature. After

there is a problem or a dispute, the settlement machinery comes into the picture.

Prevention of industrial disputes:

The preventive machinery has been set up with a view to creating harmonious

relations between labour and management so that disputes do not arise. It

comprises the following measures:

a) Schemes of workers’ participation in management such as works committees,

 joint management councils and shop councils and joint councils.

b) Collective bargaining.

c) Tripartite bodies

d) Code of discipline.

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The schemes of workers’ participation and collective bargaining will be discussed in

greater detail as a separate topic. As of now, please read something on these

schemes and we will discuss it in the due course.

Rests of the preventive measures are discussed below:

• Tripartite Bodies

I ndustrial relations in India have been shaped largely by principles and policies

evolved through tripartite consultative machinery at industry and national levels. The

aim of the consultative machinery is “to bring the parties together for mutual

settlement of differences in a spirit of cooperation an goodwill” Thus these bodies

play the role of consultants!!

Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have

been constituted to suggest ways and means to prevent disputes. The

representatives of the workers and employers are nominated to these bodies by the

Central Government in consultation with the All-India organisations of workers and

employers.

The Labour Ministry settles the agenda for ILC/SLC meetings after taking into

consideration the suggestions sent to it by member organisations. These two bodies

work with minimum procedural rules to facilitate free and fuller discussions among

the members. Please note that the ILC meets once a year, whereas the SLC meets

as and when necessary. I am sure you would have read in the newspapers that the

ILC meet is being organized.

The functions of ILC are:

(a) To promote uniformity in labour legislation

(b) To lay down a procedure for the settlement of industrial disputes

(c) To discuss matters of All-India importance as between employers and

employees. The ILC advises the Government on any matter referred to it for advice,

taking into account suggestions made by the States and representatives of the

organisations of workers and employers.

The Standing Labour Committee’s main function is to consider and determine

such questions as may be referred to it by the Plenary Conference or the Central

Government and to render advice, taking into account the suggestions made by

various governments, workers and employers.

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• Code of Discipline

The Code of Discipline is a set of self-imposed mutually agreed voluntary

principles of discipline and relations between the management and workers in the

industry.In view of growing industrial conflict, the Fifteenth Indian Labour Conference

agreed that there should be a set of general principles of discipline, which should be

adopted by labour and management voluntarily. To evolve such a set of principles, a

tripartite sub-committee was set up. The resulting draft was discussed at Standing

Labour Committee meeting in October 1957. At the Sixteenth Indian Labour

Conference held in 1958, the final form of the Code of Discipline was approved. The

details of the code are discussed later.As of now please understand that there are

three sets of principles in the Code Of Discipline. The first set of principles is for the

management and the union. The second set is for the Management and the third one

is for the union

Central Industrial Relations Machinery (CIRM)

The Chief Labour Commissioner’s (Central) [CLC(C)] Organisation, also

known as Central Industrial Relations Machinery, is an attached office of the

Ministry. The CIRM is headed by the Chief Labour Commissioner (Central). It has

been entrusted with the task of maintaining Industrial Relations, enforcement of

Labour Laws and verification of Trade Union Membership in central sphere. CIRM

has complement of 25 officers at the Head Quarters and 253 Officers in the field.

The offices of these Officers are spread over different parts of the country with zonal,

regional and unit level formations.

Functions of the organisation:

The functions of CIRM broadly are given as under:

  Prevention and settlement of Industrial Disputes, in central sphere;

  Enforcement of Labour Laws and Rules made thereunder in central sphere;

  Implementation of awards.

  Quasi-Judicial functions.

  Verification of the membership of the Trade Unions.

  Welfare.

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DDU U N N LLOOP P ' ' SS C C OON N T T RRI I BBU U T T I I OON N  T T OO I I N N DDU U SST T RRI I  A ALL RRE E LL A AT T I I OON N SS 

Dunlop's Model One of the significant theories of industrial labor relations

was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations

system consists of three agents  –  management organizations, workers and

formal/informal ways they are organized and government agencies. These actors

and their organizations are located within an environment  –  defined in terms of

technology, labor and product markets, and the distribution of power in wider society

as it impacts upon individuals and workplace. Within this environment, actors interact

with each other, negotiate and use economic/political power in process of

determining rules that constitute the output of the industrial relations system. He

proposed that three parties - employers, labor unions, and government-- are the keyactors in a modern industrial relations system. He also argued that none of these

institutions could act in an autonomous or independent fashion. Instead they were

shaped, at least to some extent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to

three environmental constraints- the markets, distribution of power in society and

technology.

Dunlop's model identifies three key factors to be considered in conducting an

analysis of the management-labor relationship:

1. Environmental or external economic, technological, political, legal and social

forces that impact employment relationships.

2. Characteristics and interaction of the key actors in the employment

relationship: labor, management, and government.

3. Rules that are derived from these interactions that govern the employment

relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in

the field of industrial relations may be regarded as a system in the sense that each of

them more or less intimately affects each of the others so that they constitute a

group of arrangements for dealing with certain matters and are collectively

responsible for certain results”. In effect - Industrial relations is the system which

produces the rules of the workplace. Such rules are the product of interaction

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between three key “actors” –  workers/unions, employers and associated

organizations and government The Dunlop’s model gives great significance to

external or environmental forces. In other words, management, labor, and the

government possess a shared ideology that defines their roles within the relationship

and provides stability to the system.

Industrial Relation Policy

Prior to 1991, the industrial relations system in India sought to control conflicts

and disputes through excessive labor legislations. These labor laws were protective

in nature and covered a wide range of aspects of workplace industrial relations like

laws on health and safety of labors, layoffs and retrenchment policies, industrial

disputes and the like. The basic purpose of these laws was to protect labors.

However, these protectionist policies created an atmosphere that led to increased

inefficiency in firms, over employment and inability to introduce efficacy. With the

coming of globalization, the 40 year old policy of protectionism proved inadequate for

Indian industry to remain competitive as the lack of flexibility posed a serious threat

to manufacturers because they had to compete in the international market.

With the advent of liberalization in1992, the industrial relations policy began to

change. Now, the policy was tilted towards employers. Employers opted for

workforce reduction, introduced policies of voluntary retirement schemes and

flexibility in workplace also increased. Thus, globalization brought major changes in

industrial relations policy in India. The changes can be summarized as follows:

  Collective bargaining in India has mostly been decentralized, but now in

sectors where it was not so, are also facing pressures to follow

decentralization.

  Some industries are cutting employment to a significant extent to cope with

the domestic and foreign competition e.g. pharmaceuticals. On the other

hand, in other industries where the demand for employment is increasing are

experiencing employment growths.

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  In the expansionary economy there is a clear shortage of managers and

skilled labor.

  The number of local and enterprise level unions has increased and there is a

significant reduction in the influence of the unions.

  Under pressure some unions and federations are putting up a united front e.g.

banking.

   Another trend is that the employers have started to push for internal unions

i.e. no outside affiliation.

  HR policies and forms of work are emerging that include, especially in multi-national companies, multi-skills, variable compensation, job rotation etc.

These new policies are difficult to implement in place of old practices as the

institutional set up still needs to be changed.

  HRM is seen as a key component of business strategy.

  Training and skill development is also receiving attention in a number of

industries, especially banking and information technology.

Perspective of IR

  Unitary Perspective: In unitarism, the organization is perceived as an

integrated and harmonious system, viewed as one happy family. A core

assumption of unitary approach is that management and staff, and all

members of the organization share the same objectives, interests and

purposes; thus working together, hand-in-hand, towards the shared

mutual goals. Furthermore, unitarism has a paternalistic approach

where it demands loyalty of all employees. Trade unions are deemed as

unnecessary and conflict is perceived as disruptive. 

From employee point of view, unitary approach means that:

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  Working practices should be flexible. Individuals should be business process

improvement oriented, multi-skilled and ready to tackle with efficiency

whatever tasks are required.

  If a union is recognized, its role is that of a further means of communication

between groups of staff and the company.

  The emphasis is on good relationships and sound terms and conditions of

employment.

  Employee participation in workplace decisions is enabled. This helps in

empowering individuals in their roles and emphasizes team work, innovation,

creativity, discretion in problem-solving, quality and improvement groups etc.

  Employees should feel that the skills and expertise of managers supports their

endeavors.

From employer point of view, unitary approach means that:

  Staffing policies should try to unify effort, inspire and motivate employees.

  The organization's wider objectives should be properly communicated and

discussed with staff.  Reward systems should be so designed as to foster to secure loyalty and

commitment.

  Line managers should take ownership of their team/staffing responsibilities.

  Staff-management conflicts - from the perspective of the unitary framework -

are seen as arising from lack of information, inadequate presentation of

management's policies.

  The personal objectives of every individual employed in the business should

be discussed with them and integrated with the organization’s needs 

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Pluralistic-Perspective :

In pluralism the organization is perceived as being made up of powerful and

divergent sub-groups - management and trade unions. This approach sees conflictsof interest and disagreements between managers and workers over the distribution

of profits as normal and inescapable. Consequently, the role of management would

lean less towards enforcing and controlling and more toward persuasion and co-

ordination. Trade unions are deemed as legitimate representatives of employees.

Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing

and if managed could in fact be channeled towards evolution and positive change.

Realistic managers should accept conflict to occur. There is a greater propensity for

conflict rather than harmony. They should anticipate and resolve this by securing

agreed procedures for settling disputes.

The implications of this approach include:

  The firm should have industrial relations and personnel specialists who advise

managers and provide specialist services in respect of staffing and matters

relating to union consultation and negotiation.

  Independent external arbitrators should be used to assist in the resolution of

disputes.

  Union recognition should be encouraged and union representatives given

scope to carry out their representative duties

  Comprehensive collective agreements should be negotiated with unions

Marxist Perspective: This view of  industrial relations is a by product of a theory of

capitalist society and social change. Marx argued that:

Weakness and contradiction inherent in the capitalist system would result in

revolution and the ascendancy of socialism over capitalism.

Capitalism would foster monopolies.

Wages (costs to the capitalist) would be minimized to a subsistence level.

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Capitalists and workers would compete/be in contention to win ground and

establish their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital

and labor, and sees workplace relations against this background. It is concerned with

the structure and nature of society and assumes that the conflict in employment

relationship is reflective of the structure of the society. Conflict is therefore seen as

inevitable and trade unions are a natural response of workers to their exploitation by

capital.

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INDUSTRIAL DISPUTEIndustrial disputes are organised protests against existing terms of employment or

conditions of work. According to the Industrial Dispute Act, 1947, an Industrial dispute means

“Any dispute or difference between employer and employer or between employer and workmen orbetween workmen and workmen, which is connected with the employment or non-employment or

terms of employment or with the conditions of labour of any person” 

In practice, Industrial dispute mainly refers to the strife between employers and their

employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a

large number of workers’ community having common interests.

Prevention of Industrial Disputes in Thirthahalli Refinery

The consequences of an Industrial dispute will be harmful to the owners of industries,

workers, economy and the nation as a whole, which results in loss of productivity, profits, market

share and even closure of the plant. Hence, Industrial disputes need to be averted by all means.

Prevention of Industrial disputes is a pro-active approach in which an organisation

undertakes various actions through which the occurrence of Industrial disputes is prevented. Like

the old saying goes, “prevention is better then cure”. 

1.  Model Standing Orders: Standing orders define and regulate terms and conditions of

employment and bring about uniformity in them. They also specify the duties and

responsibilities of both employers and employees thereby regulating standards of their

behaviour. Therefore, standing orders can be a good basis for maintaining harmonious

relations between employees and employers.

Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required

to frame standing orders in consultation with the workers. These orders must be certified

and displayed properly by the employer for the information of the workers.

Methods forprevention of

Industrial Disputes

Model StandingOrders

Code of Discipline Works Committee

Labour

Welfare

Officers

Collective BargainingJoint Management

CouncilsSuggestion Schemes Tripartite Bodies Joint Councils

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2.  Code of Industrial discipline: The code of Industrial discipline defines duties and

responsibilities of employers and workers. The objectives of the code are:

  To secure settlement of disputes by negotiation, conciliation and voluntary

arbitration.

  To eliminate all forms of coercion, intimidation and violence.

  To maintain discipline in the industry.

  To avoid work stoppage.

  To promote constructive co-operation between the parties concerned at all levels.

3.  Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of

works committees. In case of any industrial establishment in which 100 or more workers are

employed, a works committee consisting of employees and workers is to be constituted; itshall be the duty of the Works Committee to promote measures for securing and preserving

amity and good relations among the employees and workers.

4.  Joint Management Councils: 

5.  Suggestion Schemes:

6.  Joint Councils:

7.  Collective Bargaining: Collective Bargaining is a process in which the representatives of the

employer and of the employees meet and attempt to negotiate a contract governing theemployer-employee-union relationships. Collective Bargaining involves discussion and

negotiation between two groups as to the terms and conditions of employment.

8.  Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour

welfare officer in every factory employing 500 or more workers. The officer looks after all

facilities in the factory provided for the health, safety and welfare of workers. He maintains

liaison with both the employer and the workers, thereby serving as a communication link

and contributing towards healthy industrial relations through proper administration of

standing orders, grievance procedure etc.

9.  Tripartite bodies: Several tripartite bodies have been constituted at central, national and

state levels. The India labour conference, standing labour committees, Wage Boards and

Industries Committees operate at the central level. At the state level, State Labour Advisory

Boards have been set up. All these bodies play an important role in reaching agreements on

various labour-related issues. The recommendations given by these bodies are however

advisory in nature and not statutory.

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Machinery for settlement of Industrial Disputes in Thirthahalli Refinery

1.  Conciliation: Conciliation refers to the process by which representatives of employees and

employers are brought together before a third party with a view to discuss, reconcile their

differences and arrive at an agreement through mutual consent. The third party acts as a

facilitator in this process. Conciliation is a type of state intervention in settling the IndustrialDisputes. The Industrial Disputes Act empowers the Central & State governments to appoint

conciliation officers and a Board of Conciliation as and when the situation demands.

Conciliation Officer: The appropriate government may, by notification in the official gazette,

appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a

conciliation officer are:

a)  To hold conciliation proceedings with a view to arrive at amicable settlement between

the parties concerned.

b)  To investigate the dispute in order to bring about the settlement between the parties

concerned.

c)  To send a report and memorandum of settlement to the appropriate government.

d)  To send a report to the government stating forth the steps taken by him in case no

settlement has been reached at.

The conciliation officer however has no power to force a settlement. He

can only persuade and assist the parties to reach an agreement. The Industrial Disputes

Act prohibits strikes and lockouts during that time when the conciliation proceedings are

in progress.2.  Arbitration: A process in which a neutral third party listens to the disputing parties, gathers

information about the dispute, and then takes a decision which is binding on both the

parties. The conciliator simply assists the parties to come to a settlement, whereas the

arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration:

  It is established by the parties themselves and therefore both parties have good

faith in the arbitration process.

  The process in informal and flexible in nature.

  It is based on mutual consent of the parties and therefore helps in building healthy

Industrial Relations.

Disadvantages:

  Delay often occurs in settlement of disputes.

  Arbitration is an expensive procedure and the expenses are to be shared by the

labour and the management.

  Judgement can become arbitrary when the arbitrator is incompetent or biased.

There are two types of arbitration:

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a)  Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both

the parties through mutual consent and the arbitrator acts only when the dispute is

referred to him.

b)  Compulsory Arbitration: Implies that the parties are required to refer the dispute to

the arbitrator whether they like him or not. Usually, when the parties fail to arrive at

a settlement voluntarily, or when there is some other strong reason, the appropriate

government can force the parties to refer the dispute to an arbitrator.

3.  Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute.

Adjudication means intervention of a legal authority appointed by the government to make

a settlement which is binding on both the parties. In other words adjudication means a

mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the

purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery:

a)  Labour court 

b)  Industrial Tribunal 

c)  National Tribunal 

a)  Labour Court: The appropriate government may, by notification in the official gazette

constitute one or more labour courts for adjudication of Industrial disputes relating to

any matters specified in the second schedule of Industrial Disputes Act. They are:

  Dismissal or discharge or grant of relief to workmen wrongfully dismissed.

  Illegality or otherwise of a strike or lockout.

  Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold

its proceedings expeditiously and shall, within the period specified in the order referring

such a dispute, submit its report to the appropriate government.

b)  Industrial Tribunal: The appropriate government may, by notification in the official

gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial

disputes relating to the following matters:

  Wages

  Compensatory and other allowances

  Hours of work and rest intervals

  Leave with wages and holidays

  Bonus, profit-sharing, PF etc.

  Rules of discipline

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  Retrenchment of workmen

  Working shifts other than in accordance with standing orders

It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submitits report to the appropriate government within the specified time.

c)  National Tribunal: The central government may, by notification in the official gazette,

constitute one or more National Tribunals for the adjudication of Industrial Disputes in

  Matters of National importance

  Matters which are of a nature such that industries in more than one state are

likely to be interested in, or are affected by the outcome of the dispute.

It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its

report to the central government within the stipulated time.

Workers’ Participation in Management 

A suitable step taken by the management of

IOCLWorkers’ participation in management is an essential ingredient of Industrial democracy.

The concept of workers’ participation in management is based on Human Relations approach toManagement which brought about a new set of values to labour and management.

Traditionally the concept of Workers’ Participation in Management (WPM) refers to

participation of non-managerial employees in the decision-making process of the organization.

Workers’ participation is also known as ‘labour participation’ or ‘employee participation’ in

management. In Germany it is known as co-determination while in Yugoslavia it is known as self-

management. The International Labour Organization has been encouraging member nations to

promote the scheme of Workers’ Participation in Management.

Workers’ participation in management implies mental and emotional involvement of workers in the

management of Enterprise. It is considered as a mechanism where workers have a say in the

decision-making.

Definition: According to Keith Davis, Participation refers to the mental and emotional involvement

of a person in a group situation which encourages him to contribute to group goals and share the

responsibility of achievement.

According to Walpole, Participation in Management gives the worker a sense of importance, pride

and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of

belongingness with the place of work and a sense of workmanship and creativity. The concept of

workers’ participation in management encompasses the following:

  It provides scope for employees in decision-making of the organization.

  The participation may be at the shop level, departmental level or at the top level.

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  The participation includes the willingness to share the responsibility of the organization by

the workers.

Features of WPM:

1.  Participation means mental and emotional involvement rather than mere physical presence.

2.  Workers participate in management not as individuals but collectively as a group through

their representatives.

3.  Workers’ participation in management may be formal or informal. In both the cases it is a

system of communication and consultation whereby employees express their opinions and

contribute to managerial decisions.

4.  There can be 5 levels of Management Participation or WPM:

a.  Information participation: It ensures that employees are able to receive information

and express their views pertaining to the matter of general economic importance.

b.  Consultative importance: Here workers are consulted on the matters of employee

welfare such as work, safety and health. However, final decision always rests with the

top-level management, as employees’ views are only advisory in nature. 

c.  Associative participation: It is an extension of consultative participation as management

here is under the moral obligation to accept and implement the unanimous decisions of

the employees. Under this method the managers and workers jointly take decisions.

d.  Administrative participation: It ensures greater share of workers’ participation indischarge of managerial functions. Here, decisions already taken by the management

come to employees, preferably with alternatives for administration and employees have

to select the best from those for implementation.

e.  Decisive participation: Highest level of participation where decisions are jointly taken on

the matters relating to production, welfare etc.

Objectives of WPM:

1. 

To establish Industrial Democracy.

2.  To build the most dynamic Human Resources.

3.  To satisfy the workers’ social and esteem needs. 

4.  To strengthen labour-management co-operation and thus maintain Industrial peace and

harmony.

5.  To promote increased productivity for the advantage of the organization, workers and

the society at large.

6.  Its psychological objective is to secure full recognition of the workers.

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Strategies / Methods / Schemes / Forms of WPM:

1.  Suggestion schemes: Participation of workers can take place through suggestion

scheme. Under this method workers are invited and encouraged to offer suggestions for

improving the working of the enterprise. A suggestion box is installed and any workercan write his suggestions and drop them in the box. Periodically all the suggestions are

scrutinized by the suggestion committee or suggestion screening committee. The

committee is constituted by equal representation from the management and the

workers. The committee screens various suggestions received from the workers. Good

suggestions are accepted for implementation and suitable awards are given to the

concerned workers. Suggestion schemes encourage workers’ interest in the functioning

of an enterprise.

2.  Works committee: Under the Industrial Disputes Act, 1947, every establishment

employing 100 or more workers is required to constitute a works committee. Such acommittee consists of equal number of representatives from the employer and the

employees. The main purpose of this committee is to provide measures for securing and

preserving amity and good relations between the employer and the employees.

Functions: Works committee deals with matters of day-to-day functioning at the

shop floor level. Works committees are concerned with:

  Conditions of work such as ventilation, lighting and sanitation.

  Amenities such as drinking water, canteens, dining rooms, medical and healthservices.

  Educational and recreational activities.

  Safety measures, accident prevention mechanisms etc.

Works committees function actively in some organizations like Tata Steel, HLL, etc

but the progress of Works Committees in many organizations has not been very

satisfactory due to the following reasons:

  Lack of competence and interest on the part of workers’ representatives. 

  Employees consider it below their dignity and status to sit alongside blue-

collar workers.

  Lack of feedback on performance of Works Committee.

  Undue delay and problems in implementation due to advisory nature of

recommendations.

3.  Joint Management Councils: Under this system Joint Management Councils are

constituted at the plant level. These councils were setup as early as 1958. These councils

consist of equal number of representatives of the employers and employees, not

exceeding 12 at the plant level. The plant should employ at least 500 workers. The

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council discusses various matters relating to the working of the industry. This council is

entrusted with the responsibility of administering welfare measures, supervision of

safety and health schemes, scheduling of working hours, rewards for suggestions etc.

Wages, bonus, personal problems of the workers are outside the scope of

Joint management councils. The council is to take up issues related to accident

prevention, management of canteens, water, meals, revision of work rules,

absenteeism, indiscipline etc. the performance of Joint Management Councils have not

been satisfactory due to the following reasons:

  Workers’ representatives feel dissatisfied as the council’s functions are

concerned with only the welfare activities.

  Trade unions fear that these councils will weaken their strength as workers

come under the direct influence of these councils.

4.  Work directors: Under this method, one or two representatives of workers arenominated or elected to the Board of Directors. This is the full-fledged and highest form

of workers’ participation in management. The basic idea behind this method is that the

representation of workers at the top-level would usher Industrial Democracy, congenial

employee-employer relations and safeguard the workers’ interests. The Government of

India introduced this scheme in several public sector enterprises such as Hindustan

Antibiotics, Hindustan Organic Chemicals Ltd etc. However the scheme of appointment

of such a director from among the employees failed miserably and the scheme was

subsequently dropped.

5.  Co-partnership: Co-partnership involves employees’ participation in the share capital ofa company in which they are employed. By virtue of their being shareholders, they have

the right to participate in the management of the company. Shares of the company can

be acquired by workers making cash payment or by way of stock options scheme. The

basic objective of stock options is not to pass on control in the hands of employees but

providing better financial incentives for industrial productivity. But in developed

countries, WPM through co-partnership is limited.

6.  Joint Councils: The joint councils are constituted for the whole unit, in every Industrial

Unit employing 500 or more workers, there should be a Joint Council for the whole unit.

Only such persons who are actually engaged in the unit shall be the members of JointCouncil. A joint council shall meet at least once in a quarter. The chief executive of the

unit shall be the chairperson of the joint council. The vice-chairman of the joint council

will be nominated by the worker members of the council. The decisions of the Joint

Council shall be based on the consensus and not on the basis of voting.

In 1977 the above scheme was extended to the PSUs like commercial and

service sector organizations employing 100 or more persons. The organizations include

hotels, hospitals, railway and road transport, post and telegraph offices, state electricity

boards.

7.  Shop councils: Government of India on the 30th

 of October 1975 announced a newscheme in WPM. In every Industrial establishment employing 500 or more workmen, the

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employer shall constitute a shop council. Shop council represents each department or a

shop in a unit. Each shop council consists of an equal number of representatives from

both employer and employees. The employers’ representatives will be nominated by the

management and must consist of persons within the establishment. The workers’

representatives will be from among the workers of the department or shop concerned.

The total number of employees may not exceed 12.

Functions of Shop Councils: 

1.  Assist management in achieving monthly production targets.

2.  Improve production and efficiency, including elimination of wastage of man power.

3.  Study absenteeism in the shop or department and recommend steps to reduce it.

4.  Suggest health, safety and welfare measures to be adopted for smooth functioning

of staff.

5.  Look after physical conditions of working such as lighting, ventilation, noise and

dust.

6.  Ensure proper flow of adequate two way communication between management and

workers.

WORKERS PARTICIPATION IN MANAGEMENT IN INDIA

Workers’ participation in Management in India was given importance only after Independence.

Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting

up of works committees. The joint management councils were established in 1950 which increased

the labour participation in management. Since July 1975 the two-tier participation called shop

councils at shop level and Joint councils were introduced.

Workers’ participation in Management Bill, 1990 was introduced in Parliament which

provided scope for upliftment of workers.

Reasons for failure of Workers participation Movement in India:

1.  Employers resist the participation of workers in decision-making. This is because they feel

that workers are not competent enough to take decisions.

2.  Workers’ representatives who participate in management have to perform the dual roles of

workers’ spokesman and a co-manager. Very few representatives are competent enough to

assume the two incompatible roles.

3.  Generally Trade Unions’ leaders who represent workers are also active members of various

political parties. While participating in management they tend to give priority to political

interests rather than the workers’ cause. 

4.  Schemes of workers’ participation have been initiated and sponsored by the Government.

However, there has been a lack of interest and initiative on the part of both the trade unions

and employers.

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5.  In India, labour laws regulate virtually all terms and conditions of employment at the

workplace. Workers do not feel the urge to participate in management, having an innate

feeling that they are born to serve and not to rule.

6.  The focus has always been on participation at the higher levels, lower levels have never been

allowed to participate much in the decision-making in the organizations.

7.  The unwillingness of the employer to share powers with the workers’ representatives, the

disinterest of the workers and the perfunctory attitude of the government towards

participation in management act as stumbling blocks in the way of promotion of

participative management.

Measures for making Participation effective:

1.  Employer should adopt a progressive outlook. They should consider the industry as a joint

endeavour in which workers have an equal say. Workers should be provided and

enlightened about the benefits of their participation in the management.

2.  Employers and workers should agree on the objectives of the industry. They should

recognize and respect the rights of each other.

3.  Workers and their representatives should be provided education and training in the

philosophy and process of participative management. Workers should be made aware of the

benefits of participative management.

4.  There should be effective communication between workers and management and effective

consultation of workers by the management in decisions that have an impact on them.

5.  Participation should be a continuous process. To begin with, participation should start at the

operating level of management.

6.  A mutual co-operation and commitment to participation must be developed by both

management and labour.

Modern scholars are of the mind that the old adage “a worker is a worker, a manager is a

manager; never the twain shall meet” should be replaced by “managers and workers are

partners in the progress of business” 

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COLLECTIVE BARGAINING IN THE

CONTEXT OF THIRTHAHALLI

REFINERY

Good relations between the employer and employees are essential for the success ofindustry. In order to maintain good relations, it is necessary that industrial disputes are settledquickly and amicably. One of the efficient methods of resolving industrial disputes anddeciding the employment conditions is Collective Bargaining . Industrial disputes essentiallyrefer to differences or conflicts between employers and employees.

Collective Bargaining is a process in which the management and employeerepresentatives meet and negotiate the terms and conditions of employment for mutual

 benefit. Collective bargaining involves discussion and negotiation between two groups as to

the terms and conditions of employment. It is termed Collective because both the employer‟snegotiators and the employees act as a group rather than individuals. It is known asBargaining because the method of reaching an agreement involves proposals and counter-

 proposals, offers and counter offers. There should be no outsiders involved in the process ofcollective bargaining.According to Walton and McKersie the process of Collective Bargaining consists of fourtypes of activities:

1)  Distributive Bargaining: It involves haggling over the distribution of surplus.

Various activities involved in this activity are wages, salaries, bonus and other

financial issues. In this activity, both the parties face a win/lose situation.

2)  Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are

not damaging to either party are discussed. It is a negotiation strategy in which both

the parties collaborate to find a win-win solution to their problems. This strategy

focuses on developing mutually beneficial agreements based on the interests of the

disputants. Issues brought up may be better job evaluation procedures, better

 performance appraisal methods or training programmes etc.

3)  Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to

shape their opponents' perceptions about the nature of the issues to be negotiated. By

cultivating an atmosphere of friendliness, mutual respect, trust, and cooperation,negotiators can encourage their opponents to view issues largely in integrative terms

and participate in joint problem solving. This activity involves shaping and reshaping

some perceptions like trust/distrust, friendliness/hostility, co-operative/non-

cooperative between the labour and management. When there is a backlog of

 bitterness between both the parties, attitudinal structuring is required to maintain

smooth and harmonious industrial relations.

4)  Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus

among the workers and management. Even within the union there may be differences

 between different groups as may be the case with the management. Intra-

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organisational consensus is required for the smooth acceptance of the outcome of

Collective Bargaining.

Objectives of Collective Bargaining:

1.  To maintain cordial relations between the employer and employees.

2.  To protect the interests of the workers through collective action and by preventing

unilateral actions from being taken by the employer.

3.  To ensure the participation of trade unions in industry.

4.  To avoid the need for government intervention as collective bargaining is a voluntary

collective process.

5.  To promote Industrial democracy.

Characteristics of Collective Bargaining:1.  It is a group or collective action as opposed to individual action. It is initiated through

the representatives of the employees.

2.  It is a flexible and dynamic process where-in no party adopts a rigid attitude.

3.  It is a continuous process, which provides a mechanism for continuous negotiations

and discussions between management and the trade unions.

4.  It is a voluntary process without any third-party intervention. Both workers and

management voluntarily participate in the negotiations, discuss and arrive at a

solution. That is why it is known as a bipartite process where workers‟ representatives

and management get an opportunity for clear, face-to-face communication.

5.  It ensures industrial democracy at the workplace; it is a self-run government in action.

6.  It is a two-way process. It is a mutual give and take rather than a take home all  

method of arriving at a solution to a dispute.

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Process of Collective Bargaining

Preparation for

Negotiation

Identifying issues for Bargaining

Negotiation

Ratification of Agreement

1.  Preparation for Negotiation: Preparation for

negotiation in Collective Bargaining is as important as the negotiation process itself. Upto 83%

of the outcomes are influenced by pre-negotiation process. Such preparation is required for

both management as well as the union representatives. From the management’s point of

view, pre-negotiation preparation is required as:

  Management should decide when and how to open the negotiations/dialogue.

  Management must choose the representatives to negotiate at the negotiation table.

  Draft for likely decisions should be prepared in advance so that the final agreement

draft can be prepared as soon as the negotiation process is over.

From the employees’ side also, preparation is required for the following reasons: 

  The union should collect the information related to the financial position of the

company and their ability to pay the employees.

  The union must also be aware of the various practices followed by other companies

in the same region or industry.

  The union must assess the attitudes and expectations of the employees over

concerned issues so that the outcome of negotiations does not face any resistance

from them.

2.  Identifying issues for Bargaining: The second step in bargaining process is the determination

of issues which will be taken up for negotiations. The different types of issues are:

Negotiated Agreement

Implementation of Agreement

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  Wage-related issues: Include wage or salary revision, allowance for meeting

increased cost of living like Dearness Allowance (D.A), financial perks, incentives etc.

  Supplementary economic benefits: These include pension plans, gratuity plans,

accident compensation, health insurance plans, paid holidays etc.

  Administrative issues: Include seniority, grievance procedures, employee health and

safety measures, job security and job changes.

The wage and benefits issues are the ones which receive the greatest amount of attention

on the bargaining table.

3.  Negotiation: When the first two steps are completed, both parties engage in actual

negotiation process at a time and place fixed for the purpose. There a re two types of

negotiations:

Boulwarism: In this method, the management themselves takes the initiative to find out

through comprehensive research and surveys the needs of the employees. Based on the

analysis of the findings, the company designs its own package based on the issues to be

bargained. Thereafter, a change is incorporated only when new facts are presented by the

employees or their unions.

Continuous Bargaining: Involves parties to explore particular bargaining problems in joint

meetings over a long period of time, some throughout the life of each agreement. The basic

logic behind this method is that all persistent issues can be addressed through continuous

negotiation over a period of time. The success of negotiations depends on the skills and

abilities of the negotiators.

4.  Initial negotiated agreement: When two parties arrive at a mutually acceptable agreementeither in the initial stage or through overcoming negotiation breakdown, the agreement is

recorded with a provision that the agreement will be formalized after the ratification by the

respective organizations.

5.  Ratification of agreement: Ratification of negotiated agreement is required because the

representatives of both the parties may not have ultimate authority to decide various issues

referred to for collective bargaining. The ratification of agreement may be done by the

appropriate manager authorized for the purpose in the case of management, or trade

executives in the case of the employees. Ratification is also required by the Industrial Disputes

Act. It is important that the agreement must be clear and precise. Any ambiguity leads tofuture complications or other such problems.

6.  Implementation of agreement: Signing the agreement is not the end of collective bargaining,

rather it is the beginning of the process when the agreement is finalized, it becomes

operational from the date indicated in the agreement. The agreement must be implemented

according to the letter and spirit of the provisions made by the agreement agreed to by both

parties. The HR manager plays a crucial role in the day-to-day administration implementation.

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CHAPER –  3 

RESEARCH

METHODOLOGY

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A research methodology is a sample framework or a plan for study that is usedas a guide for conducting research . It is a blueprint that is followed in processingresearch work. Thus in good research methodology the line of action has to be chosencarefully from various alternatives.

RESEARCH DESIGN 

Meaning of research

“Research in common parlance refers to a search for knowledge”. Research can be explained as a

movement, a movement from known to unknown. It is actually a voyage of discovery.

  Research always starts with a question or problem.

  Its purpose is to find answers to questions through the application to the scientific

method.

  It is a systematic and intensive study directed towards a more complete knowledge of the

subject studied.

So Research is scientific and systematic search for gaining information and knowledge on a

specific topic or phenomena.

Research Design“Research Design is the plan and structure of investigation so conceived as to obtain

answers to research questions.” 

Nature of Research

Descriptive Research design is used for study.

Descriptive research as the name suggests is designed to describe something –  for example the

characteristics of users of a given product ; the degree to which product use varies with income,

age, sex or other characteristics; or the number who saw a specific television commercial.

To be of maximum benefit, a descriptive study must only collect data for a definite purpose.

Your objective and understanding should be clear and specific. It is a kind of survey method.

This project study is related with the inventory management so the data is collected in this regard

only.

I studied the various types of inventory through out the training period.

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METHODS OF DATA COLLECTION 

TYPES OF DATA

PRIMARY DATA SECONDARY DATA 

This project is mainly based on the secondary data and information beside this primary

data is also used.

1) Primary data:- primary data are to be collected by the researcher , they are not present

in reports or journals etc. and can be collected through a number of method which can be

classified as follow

  Personal interview of sample.

  Telephonic interview.

  E- Mails.

  Observations.

  Questionnaires.

  Interviews.

Primary data for my project : The primary data for my research is the dispatch registers

maintained by the company to know the purchase and stock of inventory in the organization.

2) Secondary data:- Secondary data are the data collected for some purpose other than the

research situations; such data are available from the sources such as books, company reports,

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 journals, rating organization, census department etc.. The secondary data are readily available

and therefore they are less costly and less time consuming. Sources of secondary data are

  Internets.

  Book and journals.

  Company reports.

  Census department.

  Research work of others.

Secondary data for my project: Mainly the used in this project is secondary. The data is the

already maintained in the manuals.

SURVEY PERIOD

Survey period is of few weeks from June 14th, 2010 to July 27th, 2010. It is not enough periods

for the study to get the accurate a specific result of the study.

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CHAPTER –  4 

ANALYSIS

&

INTERPRETATION

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SAMPLING PLAN

Sample Size:- 40 employees

Sample unit:- Indian oil cor. Ltd.

Method of sampling:- Simple randamsampling

Method of data collection:- Primary &secondary

Research design :- Descriptive Design

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DATA ANALYSIS AND INTERPERTATION 

 TOTAL NO OF RESPONDENTS =40 

1) Are you satisfied with the Working Condition in IOCL?

Total Respondents  % of Respondents 

SATISFIED 15 37.5

DISSATISFIED  25 62.5

I. R. Rating 

0

10

20

30

40

50

60

70

satisfied

dissatisfied

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2) Are you aware of all the Welfare schemes provided by IOCL?

I. R. Rating  Total Respondents  % of Respondents 

YES 35 87.5

NO  5 12.5

0

10

20

30

40

50

60

70

80

90

satsisfied

dissatisfied

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3) Are you satisfied with the wages and incentives provided by IOCL.?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 30 75

DISSATISFIED  10 25

0

10

20

30

40

50

60

70

80

90

satsisfied

dissatisfied

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4) Are you satisfied with the provision of canteen at your workplace providedby IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 25 62.5

DISSATISFIED  15 37.5

0

10

20

30

40

50

60

70

satsisfied

dissatisfied

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5) Are you satisfied with the provision of toilets at your workplace providedby IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 33 82.5%

DISSATISFIED  7 17.5%

0

10

20

30

40

50

60

70

80

90

satsisfied

dissatisfied

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6) Are you satisfied the Drinking Water facility in IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 32 80

DISSATISFIED  8 20

0

10

20

30

40

50

60

70

80

satsisfied

dissatisfied

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7) Are you satisfied with compensation provided by IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 17 42.5

DISSATISFIED  23 57.5

0

10

20

30

40

50

60

satsisfied

dissatisfied

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8) Are you satisfied with the medical benefits provided by IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 18 45

DISSATISFIED  22 55

0

10

20

30

40

50

60

satsisfied

dissatisfied

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9) Are you satisfied retirement benefits provided by IOCL?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 8 20

DISSATISFIED  32 80

0

10

20

30

40

50

60

70

80

satsisfied

dissatisfied

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10) Are you satisfied with the recreation facilities?

I. R. Rating  Total Respondents  % of Respondents 

SATISFIED 5 12.5

DISSATISFIED  35 87.5

0

10

20

30

40

50

60

7080

90

satsisfied

dissatisfied

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FINDINGS

1)  37.5% Employees are satisfied, and 62.5% dissatisfied with the working condition provided by the IOC Ltd.

2)  Majority of Employees are aware about the welfare schemes provided by the IOCLtd.

3)  Majority of Employees are satisfied with the salary and incentives provided bythe IOC Ltd.

4)  62.5% Employees are satisfied, with the rest room facility provided by the IOC

Ltd.

5)  Majority of Employees are satisfied with the drinking water facility provided bythe IOC Ltd.

6)  Majority of Employees are satisfied with their job profile.

7)  42.5% of Employees are satisfied, 57.5% are dissatisfied with the compensation provided by the IOC Ltd.

8)  Majority of Employees are dissatisfied with the medical benefits provided by the

IOC Ltd.

9)  Majority of employees are dissatisfied with the retirement benefits provided by the

 IOC Ltd.

10)  Majority of employees are dissatisfied with the recreation facilities provided by theIOC Ltd.

11)  60% satisfied and remaining employees are dissatisfied with the transportfacilities provided by the IOC Ltd.

12)  40% are dissatisfied with the grievance handling procedure of the company.

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LIMITATIONS

1) The sample collected is very small compared to the population of the company. Thus itmay not bring out the exact analysis.

2) Some of the respondents do not react favorably to the questionnaires.

3) It is possible that respondents might have tried to maintain consistency in terms of theirresponses.

4)time of 6-8 weeks are also very less for the study.

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CONCLUSION

Indian Oil Cor. Ltd. is growing at a very good place .Asfrom graphs it is clear that the industrial relation operationin IOC Ltd. is effective one.There are different kind ofwelfare schemes like weekly rest ,medical allowance, deathrelief fund are provided by the company to the employees tomaintain the industrial relation better one . Instead of all thatthere is also a effective grievance handling machinery formaintaning it.

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SUGGESTIONS

If the employees are in good condition then it drives their capability to give maximum outputto the company. Indian Oil Co.Ltd. had successfully accomplished their target to uplift thestandards of the people but somewhere they lag behind to give proper insight into the true

 benefits availed to the people. In this context I want to suggest some points that are more orless based on my findings.

1)Implementation of the Code of Discipline.

2) I also found that there is no medical Officer. This is needed to provide quick action in caseof any accident.

3)there should be need of improvement in recreation facilities provided by the Indian Oilcorporation Ltd.

4)there should need to increase the retirement benefits provided by the Indian OilCorporation Ltd.

5)management should provide wage revision to the employees which is due from January2007.

6)internal management should be more strong so that it can create more healthy workingconditions in the organization.

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BIBLIOGRAPHY

Manual and books:Personnel Manual by Indian oil corporation Limited..

Industrial Relations & Labour laws (fourth edition) by S C SrivastavaPersonnel Management by S.K. GuptaHuman Resource Management (second edition) by V.S.P. Rao 

Search Engine:

http://www.google.comhttp://www.ask.com

Website:http://www.iocl.com

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ANNEXURE 

Employee Name: _______________ Designation: ___________

1) Are you satisfied with the Working Condition in IOC Limited?a)Yes b)No

2) Are you aware of all the Welfare Activities in IOC Limited??a)Yes b)No

3) Are you satisfied with the wages and incentives provided by IOC Ltd.?a)Yes b) No

4) Are you satisfied with the provision of toilets at your workplace?a)Yes b)No

5) Are you satisfied the Drinking Water facility in IOC Limited?a)Yes b) No

6) Are you satisfied with the compensation provided by IOC Ltd?a)Yes b)No

7) Are you satisfied with the medical benefits provided by IOC Ltd?a)Yes b)No

8) Are you satisfied retirement benefits provided by IOC Ltd?a)Yes b)No

9) Are you satisfied with the recreation facilities provided by the company?a)Yes b)No

10)Are you satisfied with the transport facility provided to you by the IOC Ltd?a)yes b)No

11)Is there any kind of grievance handling procedure provided to you by the IOC Ltd?a)yes b)No

12)Are you satisfied with the grievance handling procedure provided to you by the company?a)yes c)No

13)if there any suggestion regarding to improve the industrial relation operation in IOCLtd.please mention here

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