chapter i introduction and significance of the...
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A Study of Trade Unions in Selected Large and Medium Scale Industries in Visakhapatanam District (A.P.)
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CHAPTER I
Introduction and Significance of THE STUDY
It is stated that the associations are the outcome of the union of two or more
persons since single individual cannot do the desired work without the strength of
others. With the assistance of these groups or associations the economic status of human
being was improved. As the economic status of human beings is being improving the
whole human society will also be improving its economic status. Thus it can be
concluded that the unity in diversified areas of work also improves the human society
as that leads to develop the economy of human society.
'Trade Unions' was taken place consequent, upon the industrial revolution, as the
capitalists used the labor class without paying at least for their livelihood. So, the
working class .formed themselves into groups to achieve their aims as the capitalist
neglected the individual employees, who were helpless to stand before the management
in bargaining 'individually for their terms of contract. In a developing economy or a
country aspiring for economic development, a systematic growth of trade unions is
more important. To make clear about this potentiality, the country has to examine the
existing human institutions so as to discover their impact upon the economic growth of
the community which, in turn requires a thorough understanding of the institutions
making changes for their improvement.
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Historicity of Visakhapatnam
It is generally held that Visakhapatnam (Vizagapatnam) is named after the
temple of "Visakha" or "Vaisakha" (Subramanyaswami).1 This temple existed in the
past but was later washed away by the sea.2 The district derives its name from
Visakhapatnam, its headquarters. This district lies in the northern part of Andhra
Pradesh and is situated on the east coast known as the Coromandel Coast between
170 15 – 180 32 of north latitudes and between 810 6 – 830 31 of east longitudes. 3
The District
Visakhapatnam district was not a homogenous administrative unit in the past
and its component parts were, at different periods of time, under the Control of
different" imperial dynasties, namely, the Mauryas, Chedis, Satavahanas, Guptas,
Gangas of Kalinga, Chalukyas
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1. Gazetteer of India, op.cit., p.1.
2. Ibid.
3. Krishna Rao, Y.V., and Balarama Murthy, Etukuri, “Andhra Pradesh
Darshini", Visalandhra Publishing House, Hyderabad, 1987, p.808.
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of Vengi, Cholas, Kakatiyas, Reddys of Kondaveedu, Recherla Chiefs, Gajapatis,
Rayos of Vijayanagar, Qutub Shahis, Mughals and Asa! Jahis, besides the local
dynast~es of the Matharas, Vasisthas, Chalukyas of Elamanchi, Velanati Chodas,
Matsyas of Vaddadi, Surabhis of Jantarunadu and Pusapatis, and Madugula
Zamindaries.1 This district was the biggest in the country till 1950. 2 Visakhapatnam
was made the district headquarters in 1803 and it was made a municipality in 1859.
In 1981, it was declared as corporation, the second one in Andhra Pradesh.3
Visakhapatnam district with an area of 11.161 sq.kms is one of the coastal districts of
Andhra Pradesh and 1s surrounded-on the North by Vizianagaram district, on the
South by East Godavari district, on the east by the Bay of Bengal and on the West by
Orissa State.4 Visakhapatnam is now called the 'Steel City' with the location of one
of the biggest steel plants in India.
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1. Ibid.
2. Gazetteer of India, op.cit., pp.1-2.
3. Ibid.
4. Madhusudhana Rao, M., "Labor management Relations end Trade Union
Leadership", Deep and Deep Publications, New Delhi, 1986, p.57.
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DISTRICT (A.P.)
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Population and Literacy
According to the 2001 census, the population of, Visakhapatnam district is
42,72,110. Out of this, 21,86,305 are men and 20,85,805 are women. Out of the total
population of the district, 14,49,792 are from Visakhapatnam city (7,42,771 are men
and 7,07,021 are women). The total number of literates in the district is 34,32,903 as
per 2001 census. On an average both, 1n men and women literacy in the district is
81.6 per cent for a total population of 42,72,110 as per 2001 census. 1
Industrial Growth in Visakhapatnam District
The present Visakhapatnam district came into existence on 1st June 1979
with an area of 11,161 Sq.kms for easy administration by leaving some places to
Vizianagaram district. Before this bifurcation the district had its bifurcation in 1950
when the northern part of it became Srikakulam District.
The district has a lot of excellent natural resources like water, sea port,
minerals, forests, marine products, agricultural lands with good climatic
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1. "Visakha Zilla Samacharam" published by District Public Relations Officer,
Information and Public Relations Department, Government of Andhra
Pradesh, Visakhapatnam, 2000-2001.
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conditions and reasonable rainfall. There are good rivers like Machkund, Ghostani,
Champavati, Thandava, Naragudu Gadda and Meghadri Gadda. These rivers give
scope for growing of raw materials like jute and sugarcane. The district has tourist
and religious places like Araku valley, Apuka Ghar, Borra Guhalu, Dolphin Nose
Mount Sea, Simhachalam Sri Varaha Lakshmi Naraslmha Swamy on Simhagiri,
Rushikonda, the modern town, Bheemunipatnam (Bheemllee) with a beach where
the Dutch people dwellings are found. The greatest advantage
of the district is that it has in Visakhapatnam, the headquarters of the district,
Andhra University a centre for education. All these facilitate to locate a number
of tiny, small, medium and large scale industries engineering, electrical, chemical
and agricultural.
Visakhapatnam, a sleepy sea-side fishing village in the seventeenth century,
has become a major industrial city not only in the district but also in the Stat owing
to the tremendous growth of small, medium and large-scale industries. The port is
the sole catalyst in transforming the sea-side fishing village into 'city of destiny'.
The port was. built in 1933. A decade later, the city got Hindustan Shipyard to
build oceangoing ships. There was a lull in the industrial activity for about a
decade afterwards. It was in 1957, the
A STUDY OF TRADE UNIONS IN SELECTED LARGE AND MEDIUM SCALE INDUSTRIES IN VISAKHAPATANAM
DISTRICT (A.P.)
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Caltex Oil Refinery was started. During the next ten years several small,
medium and large-scale industries came into existence. During the Five Year
Plan Period (1969-74) industrialization in the district has been accelerated by
hosting of large scale units such as Zink Smelter, Coromandel Fertilizers Bharat·
Heavy Plate and Vessels, Hindustan Polymers etc. In 1970s the major thrust was
also on strengthening the defense with huge outlays on the Eastern Naval
Command, Naval Dry Dock, Director General of Naval Project. Later in 1980s
the district gave a new dimension to establish several industries to produce
different type of productions like manufacturer floating cranes, cement, marine,
communication equipment, steel, chemicals, electrical and engineering goods.1
Visakbapatnam District on New Horizons of Industrial Growth
Visakhapatnam the rising steel city throbbing with maritime activity is
fast developing into one of the premier industrial centers of the country.
Besides, the first ever port-based steel plant, Visakhapatnam also houses for
some of the major public sector units --
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1. Madhusudhana Rao. M., op.cit., pp.59-62.
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Hindustan Shipyard, Bharat Heavy Plate and Vessels, Hindustan Zinc and
Hindustan Petroleum and in the private and joint sectors are big names such as
Coromandel Fertilizers, Coastal Chemicals, Hindustan polymers and A.P.
Refractors. The city's location as a strategic part endows it with all the requisites for
the establishment of a Free Trade Zone. Visakhapatnam is the biggest urban
complex in the state, next to the capital city of Hyderabad.
An excellent road, rail and air network connects the city with all the
important towns on the east coast as well as places outside the state. With -the
available physical and financial infrastructural facilities, Visakhapatnam in the
district offers sound prospects for industrial development.
Small Scale Industries
As on 31-3-2008, 3,778 small scale industries are working in the district wi th
a capital investment of Rs, 40,73,85,000 providing employment to 32,032 persons.
Concerted efforts continue to be pursued for intensifying the growth and
development of small scale industries, since there is good scope for the same.
The sector-wise breakup of the existing industries is shown in Exhibit 1.1.
A STUDY OF TRADE UNIONS IN SELECTED LARGE AND MEDIUM SCALE INDUSTRIES IN VISAKHAPATANAM DISTRICT
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EXHIBIT 1.1
EXISTING SMALL SCALE INDUSTRIES IN VISAKHAPATNAM DISTRICT (AS ON 31-3-2008) - Source: Records of District Industries Centre, Visakhapatnam.
S. No
Category No. of Units
Investment (Rs. In 000’s)
Employment
1 Food Products
513 67055 5073
2 Bevarages, Tobacco and Tobacco Products
22 6072 226
3 Cotton-Textile
24 787 132
4 Jute, Hemp, Mesta, Coir
3 1123 75
5 Hosiery & Garments
77 1502 700
6 Wood products
380 21901 3000
7 Paper Products & Printing
236 25962 1200
8 Leather Products
96 1741 399
9 Rubber and Plastic Products
99 27182 947
10 Chemical and Chemical Products
95 24071 976
11 Non-metallic mineral products
272 46317 5829
12 Basic Metal Industries 113 35239 1924
13 Metal Products
422 45685 3602
14 Machinery and parts except electrical
81 7011 599
15 Electrical Machinery & Apparatus
25 4115 268
16 Transport equipment & parts 14 2365 169
17 Miscellaneous Manufacturing Industries
200 27475 1818
18 Repairing and Servicing. Industries
1106 61782 5095
Total 3778 40,73,85.000 32032
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From the Exhibit 1.1, it is clear that the repairing and servicing small scale
industries number (1106) is high followed by Food products with 513 units and with
the least number of units (3) is jute, hemp, Mesta, coir industries, among 18 types of
small scale industries for the total of 3,778 units.
The total investment-on 3,778 small scale industries is Rs. 40,73,85,000. Out of
the 18 types of small scale industries the highest investment (Rs. 6,70,55,000) on
Food product industries followed by the repairing and servicing industries (with
Rs. 6,17,82,000) and the cotton textile industrial units investment is the least (Rs.
7,87,000).
The total employment potentiality of all the 3,778 small scale industrial units
in 18 types is 32,032 persons. Among the 18 types the non-metallic mineral products
industries· are stand on first by providing the employment for 5,829 persons
followed by repairing and servicing industries second (5,095 persons) and the least
is jute, hump, Mesta, coir industry which is providing only for 75 persons.
GROWTH OF LARGE AND MEDIUM INDUSTRIES. There are 32 large and medium scale industries in Visakhapatnam district as on 31-
3-2008. The particulars of these industries have been collected and shown in Exhibit
1.2. from this exhibit, it is evident that the oldest industry in the district was the
chittivalasa jute mills (A Divison of Willard India Ltd) was established in the year
1926 which is providing employment facility for 5,336 employees. This is the first
large scale industry in the district under private sector before independence.
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The Hindustan shipyard Limited is the second large scale industry in the
district which was established in 1941. At the beginning it was under public
sector by providing the employment facilities for 9,648 persons with an
investment of Rs. 8,897 lakhs. This is only the industry in India equipped with
all modern technology for ship construction with huge investment in public
sector.
After independence a large number of industries were located both under
private and public sector. During the second five year plan period 1956-61 the
government of India gave top priority for establishing the different category of
industries in the district. During this period under private sector the Caltex oil
Refinery (1957) was started.
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EXHIBIT 1.2
EXISTING LARGE AND MEDIUM INDUSTRIES IN VISAKHAPATNAM
DISTRICT AS ON 31-3-2008
S.No Name Capital invested
(Rs. In Lakhs)
Employment No.
FOOD AND AGRO
INDUSTRIES
1 Marine Products Processing
Plant(Chowhan Export Ltd)
84 81
2 Phoenix India Marine (p)Ltd. 145 48
3 The Anakapalle Co-operative
Sugars Ltd
146 649
4 The Chodavaram Co-operative
Agricultural & Industrial
Society Ltd.
696 896
5 The Etikoppaka Co-operative
Agricultural & industrial
Society
LTD.
597 747
6 The Srinivas Sea Foods (p) Ltd. 57 99
7 The Thandava Co-operative
Sugars Ltd.
1420 1007
8 Union carbide Ltd. 971 788
9 Nava Bharat Ferro Alloys Ltd. 835 103
CHEMICAL AND ALLIED
INDUSTRIES
10 Andhra Pradesh Industrial
Gases Ltd
137 56
11 Coromandal Fertilisers Ltd. 7023 2328
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Exbibit 2.2 Contd ..
S.No Name Capital
Invested Rs
in Lakhs)
Empolyment
No.
12 Hastalloy castings Ltd. 209 79
13 Hindustan polymers 1498 594
14 Hindustan Petroleum
Corporation Ltd.
2546 1093
15 Indian Oxygen Ltd. 257 126
16 Mc Dowell & Co Ltd. 4311 1367
17 Pragati Fertilizers Ltd. 217 51
18 Southern Electrodes Ltd. 303 65
19 The Andhra Oxygen (p) Ltd. 53 79
20 The coastal chemicals Ltd. 3022 1003
JUTE BASED INDUSTRIES
21 Chittivalasa Jute Mills
(a Divison of Willard India Ltd).
1254 5336
CEMENT INDUSTRIES
22 The Andhra Cement Co.Ld.
(Visaka cement works)
2390 381
ENGINEERING INDUSTRIES
23 Andhra Pradesh refractories Ltd. 1461 505
24 AKC steel Industries Ltd. 198 578
25 B.E.Pumps (p) Ltd. 49 43
Contd…………
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Exhibit 2.2 Contd
S.No Name Capital
Invested
(Rs. In
Lakhs)
Employment
No.
26. Hindustan Shipyard Ltd. 8897 9648
27. Hindustan Zinc Ltd. 6721 1997
28. Steel Crete Ltd. 995 23
29. Visakha Wire Ropes Ltd. 153 124
ELECTRICAL INDUSTRIES
30. Andhra Pradesh Electrical Equipment
Corporation
547 206
31. Bharat Heavy Plate and Vessels Ltd. 4984 5312
32. Marine and Communication
Electronics (India) Ltd. APIE'
286 792
Total 51,113 36,161
Per capita investment : 1.41 lakhs
Source : Compiled from "Directory of Large and Medium Industries in
Andhra Pradesh", All India Manufacturers Organization, Andhra
Pradesh State Board, Hyderabad, 2008, pp.29-35.
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Later, it was nationalized by the Government of India and merged in Hindustan
Petroleum Corporation Ltd.
Like this the district gave scope to establish more large and medium
industries in public, private and joint sectors. At present (as on 31-3-2008) there are
32 large and medium industries with an investment of Rs. 51113 lakhs by
providing employment opportunity to 36,161 persons with Rs. 1.41 lakhs per
capital investment on employment.1
The industrial development in the district occupies a significant importance
in the country with establishment of Visakha Steel Plant in 1970. The Governmental
agencies, the commercial banks, State Industrial Financial Corporation, and the
District Industries Centre are the main agencies which gave scope for the growth of
large and medium scale industries in the district at faster rate compared to other
districts in the state.1 Normally, the -faster growth rate of industrialization results
in faster growth of trade unions.
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1. "Directory of Medium and Large Scale Industries in Andhra Pradesh", All
India Manufacturers Organization, Andhra Pradesh State Board,
Hyderabad, 2008, p.c.
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Significance of the Study
Trade union is almost parallel to the organizational structure of an industry.
It is interlinked with the management of work between the employer and
employee which is based on some functions. Trade unions perform various roles in
order-
1. To secure fair wages for workers;
2. To safeguard security of tenure and improve conditions of service;
3. To improve opportunities for promotion and training;
4. To provide educational, cultural and recreational facilities;
5. To improve working and living conditions;
6. To co-operate in and facilitate technological advance by broadening the
understanding of workers of the underlying issues;
7. To promote the identity of interest of the workers with their industry;
8. To offer responsive co-operation in. improving levels of production and
productivity, discipline and high standard of quality; and
9. To promote individual and collective welfare.
Trade unions thus perform a very important role in protecting the
interest of the workers. Trade unions are as significant as the management of
an industry.
The study on Trade Unions in Visakhapatnam district of Andhra
Pradesh in particular assumes significance in view of rapid growth of
industries in this district compared to other districts in the State.
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Need for the Study
The studies reviewed above mainly deal with various aspects of trade
unions in industrially advanced areas. But only a few studies were conducted in an
industrially fast advancing district like Visakhapatnam. Visakhapatnam is the
second largest city next the capital city of Hyderabad in Andhra Pradesh. As it is
situated on the east coast of India on the boundaries of Orissa and Andhra Pradesh
state, an excellent road, rail and air network connects the city with all the important
towns on the east coast as well as places outside the state.
With the available physical and financial infrastructural facilities,
Visakhapatnam district offers sound prospects for industrial development. It is a
growing industrial city with many giant public and private sector units viz.,
Hindustan Shipyard, Bharat Heavy plates and Vessels, Hindustan Zinc and
Hindustan Petroleum public sector and Coromandel Fertilizers, Coastal Chemicals,
Hindustan Polymers and A.P.Refractors in the private and joint sectors, The city's
location as a strategic port confers upon it all the requisites for the establishment of
a Free Trade Zone, Chittivalasa, the biggest jute mill in Andhra Pradesh, is on the
A STUDY OF TRADE UNIONS IN SELECTED LARGE AND MEDIUM SCALE INDUSTRIES IN VISAKHAPATANAM
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boundary lines of Vijayanagaram and Visakhapatnam districts. Bhimunipatnam,
the famous port during the period of the domination of the Dutch on the town, is
also situated in Visakhapatnam district.
Hence the study on Trade Unions in Visakhapatnam district is need of the
hour in view of the variety of industries flourishing in the district.
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Objectives of the Study
The objectives of the study are :
i) To examine the socio-economic backgrounds of the union leaders and
members;
ii) To enquire into the growth of trade union leadership and its impact on
growth of unions;
iii) To study the trends in growth of union membership;
iv) To analyze the financial position of trade unions; and
v) To enquire into the goals and objectives of the trade unions and their
achievements.
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Hypothesis :
1. Trade Unions have helped to up-lift the socio-economic conditions of the
workers who are working in all industries up to last seven years. But, right
now, Trade Union Movement has got a setback in the process of
Globalization. ( Ho= Null Hypothesis)
2. Opinion of Respondent Leaders and Management Representatives
regarding the above Hypothesis :
3. Opinion of Respondent Members regarding the above Hypothesis :
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Scope of the Study :
1. This study will be confined to Visakhapatanam District.
2. The study will mainly focus on Trade unions in Selected Large and
Medium Scale Industries in Visakhapatanam District.
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Research Design
Methodology and Sampling
To attain the objectives stated above information has been collected both from
primary and secondary sources. Primary data have been collected mainly through
administering three comprehensive questionnaires -- for union members, union
leaders and management: representatives. The questionnaires were designed
exhaustively to cover the socio-economic background of leaders. unions'
membership, finances, leadership, goals and-attainment. These questionnaires
also cover the opinions of various parties on different aspects of union
management.
The canvassing of the questionnaires was done during July 2009 to
February 2010.
Apart from administering the questionnaires, Informal discussions were
also held with personnel managers, general managers of the industries, trade
union leaders, members etc., to understand clearly their feelings and problems.
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In addition to the primary data that have been collected, secondary sources
are also relied upon for information relating to the number of employees, wages,
Collective bargaining, grievance handling etc. Secondary data have mostly been
obtained from the District Industries Centre, from the records of industries
selected, respondent unions, Offices of the Assistant Labor Commissioner, the
Deputy Commissioner of Labor, the Commissioner of Labor, Government of
Andhra Pradesh etc.
In Coastal Andhra, Visakhapatnam district occupies first place in terms of
capital invested, employment potentiality and per capita investment on
employment. There are 32 large and medium scale industries in the district which
can be divided into five categories viz., food and agro-industries, chemical and
allied industries, electrical industries, engineering industries and jute industries.
Five industrial units, one under each category, are selected for the present study
(Table 1.3). All unions in these industrial units numbering nine are taken up for the
study (Table 1.4).
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A sample of 216 members (approximately 1 per cent of the total of 22,953
of the union members) is studied from the existing 9 unions of the selected
industrial units. 24 members from each Trade Union are selected for the study.
Four leaders from each union (both internal and external) of the sample industrial
units are selected for the study. The total sample of leaders comes to 36. Two
management representatives from each industrial unit, representing the categories
of the General Manager/the Deputy General Manager, the Manager (Industrial
Relations)/the Deputy Manager (Industrial Relations)/the Senior Manager
(Industrial Relations) and the Manager (Personnel)/the Deputy Personnel
Officer/the Senior Personnel Officer/ the Assistant Personnel Officer, which come
to 10 are selected.
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TABLE 1.3
EXISTING LARGE AND MEDIUM INDUSTRIES (AS ON 31-3-2008) IN
VISAKHAPATNAM DISTRICT AND THE SELECTION OF SAMPLE
S.No Type of Industries Number of
Exiting
Industrial Units
Number of
Industrial units
selected
1. Food and Agro 9 1
2. Chemicals and allied 11 1
3. Electricals 3 1
4. Engineering 7 1
5. Jute and Cement 2 1
Total 32 5
Source : Compiled from "The Directory of Large and Medium Industries in
Andbra Pradesh". All India 'Manufacturers Organization, Andhra Pradesh
State Board, . Hyderabad. 2008.
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TABLE 1.4
UNIONS COVERED FOR THE STUDY
S.No Type of industrial unit Names and the place of industrial units
Selected for the study
Names of the unions selected
For the study
1 Food and Agro The Thandava Co-operative sugars Limited
Payakaraopet
1. The Thandava sugar Karmik sangh
(TSKS)
2. The Thandava Co-operative
agricultural and industrial society
Employees & workers union
(TCAISEWU)
3. The Visakha refinery workers
union (VRWU)
4. The Hindustan Petroleum Workers
Union (HPWU)
5. The Bharat heavy Plate & vessels
National Employees union
(BHPVNEU)
6. The Hindustan Shipyard staff
Association (HSSA)
7. The Hindustan Shipyard labor
union (HSLU).
8. The Chittivalasa Labor union
(CLU)
9. The Chittivalasa congress Karmik
Sangh (CCKS)
2 Chemicals and allied The Hindustan Petroleum Corporation Ltd,
Visakhapatnam
3 Electricals The Bhara Heavy plateand Vessels Ltd,
Vishakapatnam.
4 Engineering The Hindustan Shipyard Ltd, Vishakapatnam
5 Jute The Chittivalasa jutemills, Chittivalasa
Source : Field Survey.
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Scheme of Presentation of the Study
The study is presented in 11 chapters. Introduction and Significance, need for the study,
objectives, Hypothesis, Scope of the study, Research Design, methodology, sampling
and limitations of the study is dealt with in Chapter I. Chapter II deals with - Trade
Unions in India – A Profile - Approaches, Origin and Growth in India. Chapter III deals
with Profile of Trade Unions in Visakhapatanam District. Chapter IV - Deals with
Functions and Policies of Trade Unions. It also deals with Trade Union Rivalries,
Multiple Unionism, Social Responsibilities, Recognition and Workers Participation in
Union Activities. Chapter V deals with Literature Review.
Chapter VI deals with Socio-economic backgrounds of the respondents, Chapter
VII deals with Membership of trade unions, Chapter VIII deals with financial positions
of trade unions Chapter IX deals with leadership of trade unions.
Chapter X deals with goals and achievements of trade unions. The evaluation on
the study, Findings and the Suggestions for sound trade unions in Andhra Pradesh in
general and Visakhapatnam district in particular is presented in Chapter XI. Testing
and Concluding of Hypothesis is done at the end.
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Limitations of the Study
The data gathered is potentially based and has Specific to it certain validity threats:
i. Owing to financial constraints and time limit the study has been restricted to five
industries in the district in which 9 unions are in existence.
ii. As the area of trade unions is both in organized and unorganized unions. the
study 1s limited to only organized unions.
iii. The researcher could have only, restricted access to the trade union records. The
records in the trade union offices were not systematically maintained so as to
make available the necessary information in the study.
iv. The conservative attitude on the part of some officers to part with information
'also prevented in collecting the required data.
However, some of these limitations were sought to be overcome through the
preparation of more elaborate and exhaustive questionnaires and schedules to
trade union members and leaders. Further, every possible effort is made to
evaluate the situation as accurately and objectively as possible.
v. In the case of First 5 Chapters, whatever the information and data is available
and possible to obtain from primary and secondary sources up to 4/5/2010,
those information and data incorporated here.
vi. In the case of Chapter VII, VIII and IX – information pertaining to years 2004 –
2008 is considered.