PROJECT REPORTON

INDUSTRIAL RELATIONS

SUBMITTED IN PARTIAL FULFILLMENT OF THEREQUIREMENT FOR THE AWARD

OF

MASTERS DEGREEIN

BUSINESS ADMINISTRATION

BY

OSMANIA UNIVERSITY

CONTENTS

CHAPTER TOPIC PAGE NO

1. INTRODUCTION Purpose of Study Scope of Study Objectives of Study Methodology of Study Limitation of Study

2. COMPANY PROFILE

3. Evolution of Industrial Relations

4. Industrial Disputes with Reference To Epsilon Electronic Pvt. Ltd.

5. General Problems

6. Specific Problems

7. FINDINGS

8. CONCLUSION

9. BIBLIOGRAPHY

INTRODUCTION

Introduction:

Evolution of industrial relations

The problem of industrial or labour management did not arise when elaborate

organizational structures came on the scene during the late nineteenth century, when

gigantic industrial empires of the financial tycoons came into existence followed by

technology of mass production in the early twentieth century. The labour management

became on important subject of study only when large aggregations of people came to

work together under one roof in an aggregation.

The gradual evolution of industrial system has passed through these stages:

1. primitive stage

2. agrarian economy stage

3. serfdom stage

4. handicrafts stage

5. cottage or putting out stage

6. factory or industrial capitalism stage

It has been increasingly realized that the industrial revolution has brought about a

number of complexities which have rendered the management of people in an

organization more difficult and complicated, than man power management was in

earlier and simpler societies because free mobile men and women in modern

societies pose complex and ever changing problems for their managers and

employers.

Some features of the early system persist, even now while other features are the

result of industrial revolution and therefore represents sharp breaks with

traditions, creating challenging problems for the management. Employment

relationship is not static but dynamic. The integrated approach would succeed in

India to establish a cordial industrial relations scene in years to come.

Importance of industrial relations:

“Industrial relations” constitute one of the most delicate and complex problems of

modern industrial society. Career patterns have changed as growing proportions

have been compelled to leave the farms and become wage and salary earners

under lying factory conditions. The working organizations in which they are

employed have become larger and shifted from individual to corporate ownership.

Employees have their unions and employers their bargaining associations to give

a tough fight to each other and establish their powers. The government has played

a growing role in industrial relations, in part by becoming the employer for

millions of workers and in part by regulating working conditions in private

employment. Besides rapid changes have taken place in the techniques and

methods of production. Technological advantages have created opportunities that

require different patterns of experience and education. Non-fulfillment of many

demands of the workers has brought industrial unrest.

The creation and maintenance of good relations between the workers and the

management is the very basis on which the development of an industrial

democracy depends. The healthy and orderly industrial is an enterprise generates

attitudes which progress and stabilize democratic institutions.

Stable industrial relations means a situation when requirements of management

and the work-force are discussed between them in a spirit of mutual trust and

confidence and without causing friction. Therefore stable relationship means to an

end not end itself. The unions are also involved in industrial relations through

stability they obtain for the work force more benefits. The government would like

stable relations to prevail both for better production and for easier law and order.

Personnel Management, Industrial Relations and Human Relations:

The concept of industrial relations has become a part and parcel of the science of

management practically that which deals with the manpower of the enterprise and

hence, closely linked with personnel management

Dale Yoder has defined ‘personnel management’ as that phase of management

which deals with deals with the effective control and use of manpower as

distinguished from other sources of power.

Industrial relations are the relations that exist in and grow out of employment. It

refers to a wide field of relationship among the people, human relationship that

exist because of necessary collaboration of men and women in the process of

modern industry.

Personnel management mainly deals with executive policies and activities

regarding the personnel aspects of the enterprise.

While industrial relations are mainly concerned with employee-employer

relationship.

The term “human relations in industry” has also come into vogue. The direct

relationship existing between the employer and his work people considered as

individual, as distinct from term “industrial relations” which is used to denote

collective relations.

Human relations are concerned with relations as a whole at the level of

undertaking, whether they are relations with the union or personnel relations with

the staff.

While industrial relations would apply to the relations between the organizations

of employers and workers at a higher level of economy.

These different interpretations show that, it is difficult to draw a definite line of

demarcation between the concepts of “industrial relations” and “human relations”.

Definition and concept of industrial relations:

The term “industrial relations” comprises “industry” and “relations”. “Industry”

means any productivity activity in which an individual is engaged and the

“relations” that exit in the industry between the employer and his workmen.

“Industrial Relations are developing and dynamic concept and as such no more

limits itself merely to the complex of relations between the unions and

management but also refers to the general web of relationships normally obtaining

between employees.

There are few points on industrial relations:

Industrial relations are the relations which are the outcome of the “employment

relationship” in an industrial enterprise.

The relationship emphasizes on the process of accommodations whereby the

parties involved develop skills and methods of adjusting to and cooperating with

each other.

Every industrial relations system creates a complex of rules and regulations to

govern the work place.

The government/ state evolves, influences and shapes industrial relations with the

help of laws, rules, agreements, awards of the courts, and emphasis on usages,

customs, traditions, implements of its policies and interference through executive

and judicial machinery.

Industrial relations may be defined as “The relations and interactions in the industry

particularly between the labour and the management as a result of their composite

attitudes and approaches in regard to the management of the affairs of the industry,

for the betterment of not only the management and workers but also of the industry

and natural economy as a whole.

Objectives of industrial relations:

The primary objective of industrial relations is to bring about good and healthy

relations between two partners in the industry- the labour and management. Kirkaldy

divided the objectives into four:

Improving the economic conditions of workers in the existing state of

industrial management and political government.

Control by the state over industries to regulate production and industrial

relations.

Socialization or nationalization of industries by making the state itself the

employer.

Vesting the proprietorship of the industries in the workers.

The most important fact be noted is that one thread which runs through the whole

fabric of industrial relations and which is necessary for success is that “Labour is not

an article/commodity of commerce but it is a living being, which need be treated as

human being and that employees differ in mental and emotional abilities, sentiments

and traditions”.

Therefore maintenance of good relationship in the main theme of industrial relations,

because in its absence the whole edifice of organizational structure may crumble down.

Scope and aspects of industrial relations:

The concept of industrial relations has a very wide meaning and connotation. In

narrow sense, it means that the employer, employee relationship confines itself to the

relationship that emerges out of the day-to-day association of the management and the

labour. In wider sense, industrial relations include the relationship between an

employee and an employer in the course of the running of an industry.

An industry is a social world in miniature. Associations of various

persons, workmen, supervisory, staff, management and employer in industry create

industrial relationships. This association affects the economic, social, and political

life of the whole community. Industrial relations are, therefore inherent in an

industrial life, these includes:

Labour relations, i.e., relations between union and management.

Employer-employee relations, i.e., relations between the management and

employees.

Groups relations, i.e., relations between various groups of workmen.

Community or public relations, i.e., relations between the industry and the

society.

Collective Bargaining:

The term “collective bargaining”, originated in the writing of Sydney and Beatrice

Webb the famed historians of the British labour movement towards the end of the 19th

century. In India, the first collective bargaining agreement was concluded in 1920 at

the instance of Mahatma Gandhi to regulate labour management relations between a

group.

Collective bargaining is a process of joint decision making and basically represents a

democratic way of life in industry.

The 3 concepts of collective bargaining:

Marketing concept

Governmental concept

Industrial relations or managerial concepts.

Importance of collective bargaining:

Collective bargaining has been primarily use a for two purposes

As a means of regulating wages and conditions of employment

As a means of regulating labour management relations.

Industrial disputes:

There are many causes which have led to poor industrial relations and there are

conditions which can generate good industrial relations. A correct perspective of the

industrial relations position is possible on an appreciation of the stages of

development through which a country has passed over a period of time to the present

moment.

Conditions of good industrial relations:

Every organization should strive to induce good industrial relations, thus ensuring

industrial peace and avoiding labour unrest such as strikes, work stoppages,

demonstrations, gheraos and slogan shouting.

The following are conditions necessary for establishing and maintaining good

industrial relations:

Recognition by the employer that the workers are a part of a team working

towards common objective.

An attitude on the part of the employees of delivering the goods.

Fair redressal of the employee’s grievances such as working conditions, facilities,

attitudes of supervisors and other rights.

Adoption of a policy which ensures to the workers an equitable share of the gains

of increased productivity.

Training in industrial relations and human relations to workers, technical staff and

at all managerial levels.

Sufficient communication to keep the employees informed about decisions which

affect their interest.

Avoidance by workers of being unduly influenced by political leaders staging

strikes as a protest or a publicity for their own political for their own political

gains.

Payment of fair wages and adequate wages structure as well as establishment of

satisfactory working conditions.(Wages Act)

Introduction of a suitable system of employees, education at all levels as well as

providing them with appropriate equipment, where necessary.

Establishment of an atmosphere of participation whether through joint committees

or other methods.

Advice the corporation and the standing committee on matters relating to

administration of medical benefits the certification for the purpose of the grant of

benefits and other connected matters.(ESI)

Every employer shall be bound to pay to every employee in respect of the

accounting year a minimum bonus which shall be 8.33% of the salary or wages

earned by the employee during the accounting year.(Bonus Act)

To make provisions for the future so that in case of retirement, the employee get

some amount and in case of premature death of the employee, the family

members would get some substantial amount.(PF)

Causes of poor industrial relations:

The main causes or source of poor industrial relations resulting in inefficient and

labour unrest because of the following reasons:

Delay in decisions on the part of management and labour.

An intolerant attitude towards the workers on the part of management.

Unhealthy work conditions.

Inadequate fixation of wage or wage structure.

Dispute on sharing the gains of productivity.

Unfair labour practices, like victimization and undue dismissal.

Inter-union rivalries and

General economic and political environment such as rising prices, strikes by

others and general indiscipline having their effect on the employees attitude.

Grievance procedure:

Meaning:

Defining grievance is a difficult task. Personnel experts have attempted to distinguish

between dissatisfaction complaint and grievance. Dissatisfaction is any state of

feeling of discontent whether expressed or unexpressed. A dissatisfaction which is

orally made known by one employee to another is known as complaint. A complaint

becomes a grievance when this dissatisfaction which is mostly related to work is

brought to the notice of the management.

Definition:

“Grievance is any discontent or dissatisfaction whether expressed not, whether valid or

not, arising out of anything connected with the company which an employee thinks

believe and even feels to be unfair unjust or inequitable

Diagrammatic representation of model grievance procedure

Voluntary arbitration

Higher management

Mediation and conciliation:

“Mediation and Conciliation” are regarded as equivalent terms referring to essential the

same kind of third party intervention in promoting voluntary settlement of disputes.

Mediation is an ancient art of the peace-maker. It has been practiced in a number of areas

when people when people disagree, it is an ancient and honorable process for the

settlement of disputes between labour and management.

Mediation process:

Grievance committee

Department head

Officer designation

Work with grievance

Mediation is a process by which a third party brings together the opposing groups not

only to iron out the differences between them but also to find an answer to problems or

specified proposals and after alternative suggestions.

Kinds of mediation:

There are three kinds of mediations according to prof.Pigou:

The eminent outsider

The non-government board

The board connected with some part of government.

Reconciliation may be described as “The practice by which the service of a neutral third

party are used in a dispute as a means of helping the disputing parties to reduce the extent

of their differences and to arrive at an amicable settlement of agreed solutions. It is a

process of rational and orderly discussion of differences between the parties to a dispute

under the guidance of a conciliator.

It is a process by which representative of workers and employers are brought together

before a third person or a group of persons with a view to persuading them to arrive at an

agreement by mutual discussion between them.

Arbitration and Adjudication:

Arbitration:

Arbitration is to be distinguished from reconciliation not only by the fact that its

decision is binding on the parties but also by its differences approaches.

Arbitration is also to be distinguished from mediation. Arbitration is a judicial

process, while mediation has a legislative.

The award of the arbitrator rests on equity and justice i.e., there is no scope for

compromise, while compromise is the very essence of mediation.

Adjudication:

In India, the industrial disputes act, 1947, MRTU-PULP 1971 and other legislations

provided for machinery to adjudicate upon disputes.

In adjudication, the government on receiving report of failure of conciliation

proceeding passes on the disputes to appropriate machinery for settlement of disputes

i.e., adjudication under various legislations.

Types of Adjudication:

There are two types of adjudication

Both the parties agree to reference of disputes for settlement, and then the

government is forced to refer the same.

1. compulsory adjudication:

When both or either one of the parties don’t wish to refer the matter for adjudication,

the government may refer the matter for same.

List of various Central Labour Acts

Laws related to Industrial Relations

1.The Trade Unions Act, 1926The Trade Unions (Amendments) Act, 2001

2.The Industrial Employment (Standing Orders) Act, 1946The Industrial Employment (Standing Orders) Rules, 1946

3.The Industrial Disputes Act, 1947

Laws related to Wages

1.The Payment of Wages Act, 1936ThePaymentofWagesRules,1937The Payment of Wages (AMENDMENT) Act, 2005

2.The Minimum Wages Act, 1948 The Minimum Wages (Central) Rules, 1950

3.The Working Journalist (Fixation of Rates of Wages) Act, 1958Working Journalist (Conditions of service) and Miscellaneous Provisions Rules, 1957

4.The Payment of Bonus Act, 1965  The Payment of Bonus Rules, 1975

Laws related to Working Hours, Conditions of Services and Employment

1.The Factories Act, 1948

2.The Dock Workers (Regulation of Employment) Act, 1948

3.The Plantation Labour Act, 1951

4.The Mines Act, 1952

5.The Working Journalists and other Newspaper Employees’ (Conditions of Service and Misc. Provisions) Act, 1955The Working Journalists and other Newspaper Employees’ (Conditions           of   Service and Misc. Provisions) Rules, 1957

6.The Merchant Shipping Act, 1958

7.The Motor Transport Workers Act, 1961

8.The Beedi & Cigar Workers (Conditions of Employment) Act, 1966

9.The Contract Labour (Regulation & Abolition) Act, 1970  The Contract Labour Regulation Rules

10.The Sales Promotion Employees (Conditions of Service) Act, 1976The Sales Promotion Employees (Conditions of Service) Rules, 1976

11.The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

12.The Shops and Establishments Act

13.The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Rules, 1984The Cine Workers’ Welfare Fund Act, 1981.  

14.The Dock Workers (Safety, Health & Welfare) Act, 1986

15.The Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996

16.The Dock Workers (Regulation of Employment) (inapplicability to Major Ports) Act, 1997

Laws related to Equality and Empowerment of Women

1.The Maternity Benefit Act, 1961

2.The Equal Remuneration Act, 1976

Laws related to Deprived and Disadvantaged Sections of the Society

1.The Bonded Labour System (Abolition) Act, 1976

2.The Child Labour (Prohibition & Regulation) Act, 1986

3.The Children (Pledging of Labour) Act, 1933

Laws related to Social Security

1.The Workmen’s Compensation Act, 1923The Workmen's Compensation (Amendments) Act, 2000

2.The Employees’ State Insurance Act, 1948

3.The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996

4.The Payment of Gratuity Act, 1972  The Payment of Gratuity Rules

5.The Unorganised Woekers' Social Security Act 2008 

   The Unorganised Workers' Social Security Rules 2008

Laws related to Labour Welfare

1.The Mica Mines Labour Welfare Fund Act, 1946

2.The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972

3.The Beedi Workers Welfare Fund Act, 1976

4.The Beedi Workers Welfare Cess Act, 1976  The Beedi Worker's Welfare Cess Act Rules, 1977

5.The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976

6.The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Cess Act, 1976

7.The Cine Workers Welfare Fund Act, 1981

8.The Cine Workers Welfare Cess Act, 1981

9.The Employment of Manual Scavengers and Construction of Dry latrines Prohibition Act, 1993

Laws related to Employment & Training

1.The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959    The Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1959

2.The Apprentices Act, 1961

Others

1.The Fatal Accidents Act, 1855

2.The War Injuries Ordinance Act, 1943

3.The Weekly Holiday Act, 1942

4.The National and Festival Holidays Act

5.The War Injuries (Compensation Insurance) Act, 1943

6.The Personal Injuries (Emergency) Provisions Act, 1962

7.The Personal Injuries (Compensation Insurance) Act, 1963

8.The Coal Mines (Conservation and Development) Act, 1974

9.The Labour Laws (Exemption from Furnishing Returns and Maintaining Register by Certain Establishments) Act, 1988

10.The Public Liability Insurance Act, 1991

Labour Laws

Employees’ State Insurance Act, 1948

Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

Employees’ Pension Scheme, 1995

Dangerous Operations Under Maharashtra Factories Rule 114,Framed under Section 87 of The F.A. 1948

Bombay Shops & Establishment Act, 1948

The Mumbai Labour Welfare Fund Act, 1953

Payment of Bonus Act, 1965

Payment of Gratuity Act, 1972

Workmen’s Compensation Act, 1923

Payment of Wages Act, 1936

Liabilities of Directors and officers of Companies 24

Labour LawsPayment of Bonus Act, 1965

Applicability

Eligibility

Benefits

Penal Provisions

Applicability

(a)  Every factory (as def. in Factories Act), & (b) Every other establishment in which 20 or more persons (less than 20 but 10 or more if appropriate Govt. notifies) are employed on any day subject to certain exemptions.

ii)  Employees’ drawing remuneration of Rs. 3,500/- or more and those who have worked for less than 30 days are not eligible to receive bonus under the Act.

iii) Bonus to be paid within eight months from the expiry of the accounting year.

Eligibility

i)  Every person (other than an apprentice) drawing salary up to RS 3,500 per month.

Ii) Every person drawing salary between RS 2,501/- and RS 3,500/- per month. The bonus payable to him is to be calculated as if his salary were RS 2,500/- p.m.

Benefits

i)  Subject to other provisions :— Minimum bonus shall be 8.33% of salary/wages earned or RS 100 whichever is higher.

Ii)  If allocable surplus exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary/wages.

Iii) Computation of bonus is to be worked out as per Schedule I to IV of the Act.

Penal Provisions

Imprisonment up to 6 months and or fine up to RS 1000/-.

Labour Laws

Payment Of Gratuity Act, 1972

Applicability

Eligibility

Benefits

Calculation of Gratuity

Penal Provisions

Applicability

1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.

2. Every shop or establishment to which Shops & Establishment Act of a

State applies in which 10 or more persons are employed at any time during the year end.

3. Any establishment employing 10 or more persons as may be notified by the Central Government.

4. Once Act applies, it continues to apply even if employment strength falls below 10.

Eligibility

1. Any person employed on wages/salary.

2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years,

3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.

Benefits

1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.

2. The total amount of gratuity payable shall not exceed the prescribed limit.

3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit

Calculation of Gratuity

1. Gratuity = Monthly Salary x 15 days x No. of yrs. of service                         26 2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)

Penal Provisions

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.

Labour Laws

Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

Applicability

Eligibility

Benefits

Penal Provisions

Benefits at a Glance

Applicability

1) Every establishment which is a factory engaged in any industry specified in Schedule 1 and in which 20 or more persons are employed and

2) Any other establishment employing 20 or more persons which Central Government may, by notification, specify in this behalf. (Infancy period of 3 years has been withdrawn by ordinance w.e.f.22-9-97)

3) any establishment employing even less than 20 persons can be covered voluntarily u/s 1(4) of the Act.

Eligibiligy

1) Any person who is employed for work of an establishment or employed through contractor in or in connection with the work of an establishment.

Benefits

Employees covered enjoy a benefit of Social Security in the form of an unattachable, unwithdrawable (except employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death. Other Benefits include Employes’ Pension Scheme and Employee’s Deposit Linked insurance Fund.

Penal Provisions

Liable to be arrested without warrant being a cognisable offense. Defaults by employer in paying contributions or inspection/ administration charges attract imprisonment up to 3 years and fines up to Rs. 10,000 (S.14.) For any retrospective application, all dues have to be paid by employer with damages up to 100% of arrears.

Benefits at a glance

1. Advance for Purchase of Dwelling Site.

2. Advance for Purchase of Dwelling House/flat.

3. Advance for Construction of a House.

4. Advance for Repayment of housing loan to State Govt. housing board or any other govt. recognised housing finance body.

5. Advance for IIIness viz. Hospitalisation for more than month, major surgical operations or suffering from TB, leprosy, paralysis, cancer, heart ailment etc.

6. Advance for Marriage of Self/Son/Daughter/Sister/Brother.

7. Advance for Post MatriculationEducation of Son/Daughter.

8. Advance for Damage to the property Due to Natural calamity (Flood Riot/Earthquake).

9. Advance for Member affected by cut in the supply of electricity.

10. Advance for Member who is physically handicapped.

[ A member employee can also withdraw full amount standing to his credit. in fund (para 69).....]

a) on Resignation.

b) On Retirement from the service on attaining the age of 58 yrs.

c) on Retirement on account for permanent or total incapacity to work.

d) immediately before Migration from India for permanent settlement abroad or for taking upemployment abroad.

e) on Termination due to voluntary retirement Scheme, retrenchment, closure of the factory/establishment.

Labour LawsWorkmen’s Compensation Act, 1923

Applicability

Eligibility

Benefits

Penal Provisions

Applicability

Employer includes any person whether incorporated or not and any agent of employer and when services are temporarily lent or let on hire to another person, then means such other person.

Eligibility

Any workman who is injured by accident arising out of and in the course of his employment in specified list of employment contracts any disease specified therein as an occupational disease peculiar to that occupation.

Benefits: Amount of compensation shall be payable by the employer

i)  Where death results from injury 40% of monthly wages x relevant factor or Rs. 20,000/- whichever is more.

ii) Where permanent total disablement results from the injury 50% of monthly wages x relevant factor or Rs. 24,000/- whichever is more (relevant factor depends upon the age of a workman)

iii)Where permanent, partial disablement or temporary disablement results from injury as per prescribed schedule.

Penal Provisions

Any contract by a worker waiving his right to be compensated under this Act is null and void. Compensation should be paid early–delay beyond 1 month attract interest @ 6% p.a. and penalty of up to 50% of the compensation. Certain other offenses attract fine up to RS 5,000

Labour Laws

Employees’ Pension Scheme, 1995

DEFINITION

CHARACTERISTICS

EARLY PENSION ON CESSATION OF EMPLOYMENT

SCHEME CERTIFICATE

WIDOW PENSION

WIDOW PENSION AFTER COMMENCEMENT OF MONTHLY PENSION

COMMUTATION OF PENSION

OPTION FOR RETURN OF CAPITAL

Definition

Employees’ Pension Scheme is Pension Scheme for survivors, old aged and disabled persons. The earlier Family Pension Scheme, 1971 offered only one type of benefit, namely, survivor’s benefit, i.e. (payment of pension to widow/widower on death of the member in service. On the other hand, the new scheme caters for three types of contingencies :—1. Survivor Pension : If death occurs during service period.2. Old Age Pension : Pension or Superannuation.3. Permanent Disability : In the event of member suffering Pension permanent disability while in service.

Characteristics

In the scheme three scales of pensioners benefits have been offered according to the length of service.

2.1

For service below 10 years Return of contribution on exit from employment - Table - DExample : Suppose a member exits from employment after four years of service his wage on exit is Rs. 4,000, (Return of contribution will be calculated as Rs. 4,000 x 4.18 of wages on exit) i.e., Rs. 16,720/-

2.2

Service above 10 years but below 20 yearsIn the first instance pension will be calculated by applying the formula, i.e.—                    Pensionable Salary X Pensionable service                                         70Say, a member has done 18 years of pensionable service, Pensionable Salary determined as Rs. 4,000/- pension payable to him will be Rs. 1,029/-

2.3 Service over 20 years full pension according to the formula stated

above. It is to be noted here that for rendering 20 years of pensionable service or more, member’s pensionable service shall in all cases be increased by adding 2 years. In other words, 20 years actual pensionable service will be treated as 22 years of pensionable service for calculation of pension.

2.4

Special provisions for existing members special provisions have been made for calculation of pension in case of member who was a member of the ceased Family Pension Scheme 1971 and who has attained the age of 48 years on the 16th November, 1995 or a member who has attained the age of 48 years but is less than 53 years on 16th November, 1995, member who has attained the age of 53 years or more on the 16th November, 1995. In the aforesaid cases the formula for calculating pension will be as follows -

2.4 a. Member has not attained the age of 48 years on 16.11.1995:Pension is determined by the above formula; i.e.,

Pensionable Salary X Pensionable Service                             70 for the period of pensionable service rendered from the 16th Nov. 1995 or Rs. 635/- whichever is more plus past service benefits as under :-Sr. No.

Years Of Past Service The Past Service Benefits payable on

completion of58 No. years of age on 16.11.95

     Salary up to Rs. 2,500/- p.m.

Salary more than Rs. 2,500/p.m.

1. Up to 11yrs. Rs.80/- Rs.85/-2. More than 11 yrs.

but up to 15 yrs.Rs.95/- Rs.105/-

3. More than 15 yrs. Rs.120/- Rs.135/-4. Beyond 20 yrs Rs.150/- Rs.170/-Subject to a minimum of Rs. 800/- per month provided the past service is 24 years. If the member’s aggregate service is less than 24 years, Pension and the benefits computed as above will be reduced proportionately to a minimum of Rs. 450/- per month.2.4.b Member has attained the age of 48 years but is less than 53 years on 16.11.1995

Pension as determined by the above mentioned formula; i.e.

Pensionable Salary X Pensionable Service                             70 for the period of service rendered form 16.11.1995 or Rs. 438/- per month whichever is more plus past service as laid down in Para 12(3) subject to a minimum of Rs. 600/- per month, in case the past service is 24 years. If it is less than 24 years, pension payable and the past service benefit taken

together shall be proportionately less subject to a minimum of Rs. 325/- p.m.2.4.c Member has attained the age of 53 years or more on 16.11.1995Pension as determined by the above mentioned formula i.e.

Pensionable Salary X Pensionable Service                             70for the period of service rendered form 16.11.1995 till the date of exit or Rs. 335/- p.m. whichever is more plus past service benefit as provided in para 12(3) subject to a minimum of Rs. 500/- p.m. (both together) in case past service period is 24 years. If it is less than 24 years pension payable and the past service benefit shall be proportionately lesser subject to a minimum of Rs. 265/- p.m.

EARLY PENSION ON CESSATION OF EMPLOYMENT

Old age pension on account of superannuation/retirement is normally payable on attaining the age of 58 years. However, member can opt for taking earlier than 58 years on his exit from employment but under no circumstances pension will be payable before the age of 50 years. A member who desires to draw monthly pension from a date earlier than 58 years of age will be allowed to draw a monthly reduced pension. The amount of pension in such a case shall be reduced at the rate of 3% for every year the age falls short of 58 years.

SCHEME CERTIFICATE

There are occasions when a member may leave employment and or may move from a covered establishment to an uncovered establishment before he reaches the date of superannuation, he may opt for a Scheme Certificate. The certificate will indicate his pensionable salary and the amount of pension due on the date of exit from employment. If the member is subsequently employed in a covered establishment. his pensionable service in the scheme certificate will be taken into account for working out his full pensionable service.

WIDOW PENSION

5.1 Widow pension is of three categories — one of death of the member during service, second on the death of the member after leaving service but before attaining the age of 58 years and the third in case of death of the member after commencement of payment of monthly members pension.

5.2 Widow pension on death of the member during the service is equal to monthly members pension.

5.3 The essential conditions for grant of widow pension are as follows:-

5.3a. The death of the member occurred while in service.5.3b. The member has contributed at least one month’s contribution.5.3c. The member had not attained the age of 58 years.5.3.d. The death of the member had taken place before the

commencement of monthly members pension.Example 1:

Mr. ‘X’, a worker in an establishment, became member of the Employees Pension Scheme on 2nd January, 1996. He died in February 1996 after a short illness. His wages at the time of death were Rs. 1,500/- p.m. He left behind his widow aged 22 years and a child aged 1 year What will be the widows pension in this case? It is confirmed that pension contribution for Mr. ‘X’ was paid by the employer for the month of January 1996.Widows pension entitlement. (i) Pensionable service One month Pensionable salary Rs. 1500/-

Either   (ii) Pension according to the formula :                        Pensionable Service X Pensionable Salary   i.e. 1 X 1500                                                       70                                     12       70                                                                                                    = 1.78Or        (ii) Minimum pension payable as per para 16(2)(a)(i) of the Scheme - Rs. 450/- p.m.

Or        (iii) The amount indicated in-table ‘C’ — Rs. 718/- per month whichever is more.             Since (iii) is more than (i) & (ii), Widow pension will be fixed at Rs. 718/- per month for life or remarriage of the widow, whichever is earlier.             (iv) For the child, 25% of the widow pension will be granted as monthly pension; i.e.,  25% of Rs. 718 = Rs. 179.50 or Rs.180/- p.m., till 25 years of age.Example 2:

Mr. ‘Y’ joined Family Pension Scheme in January 1972. He died while in service, say, on 30 March, 1998. He was drawing a salary of Rs. Rs. 2,500/- p.m. from January, 97 till death. He had attained the age of 48 years at the time of his death. He left behind the widow, two sons - one aged 16 years, one 7 year and one daughter aged 20 years. What would be the widow pension and children pension, payable?

(i) Mr. ‘Y’ had done 26 years 3 months of pensionable service at the time of his death. In calculation of eligible service for pension, fraction of three months will be ignored as per, explanation to para 9(a) of the Scheme and thus eligible service will be taken as 26 years only. The average 12 months. salary at the time of his death was Rs. 2,500/- Hence member’s monthly pension will be :—                Either Pensionable Service X Pensionable Salary

                                                 70i.e. (i) 26 x 2500 = Rs. 928.57 or Rs. 929/- p.m.                70Or (ii) In term of para 16(2)(a)(ii)—Rs. 250/- p.m.5.4 Children Pension.5.4-i. The member left behind three children one daughter aged 20 years,

one son aged 16 years’ and the other son age 7 years. To start with only the elder two, the daughter and the elder son will get pension. The daughter will get pension for 5 years by which time she will be 25 years for age after 5 years of the vesting of pension. After the daughter ceases to be the beneficiary, the youngest child, then age 12 years, will start receiving pension till the age of 25 years.

5.4-ii. The amount of children pension will be @ 25% of widow pension for each of the two children. Viz. 25%+25% of Rs.1,087 or Rs. 272+Rs. 272 for two children.

WIDOW PENSION AFTER COMMENCEMENT OF MONTHLY PENSION

6.1 In case of death of the member after vesting of pension, the amount of widow pension is payable @ 50% of the monthly member’s pension subject of minimum of Rs. 250/- p.m. for example. Mr. ’Z’ a pensioner, dies at the age of 66 years leaving behind his widow aged 62 years. Mr. ’Z’ drawing pension @Rs. 1000/- p.m. The widow pension in this case will be Rs. 500/p.m.

6.2 In case the member leaves behind any child less than 25 years of age, children pension is payable for each equal to 25% of the widow pension subject to a minimum of Rs. 115/p.m.

COMMUTATION OF PENSION

(This facility is available three years after the commencement of the scheme, i.e. w.e.f. 16th November 1995.)The member may commute one-third of his monthly pension. The commuted value shall be 100 times the monthly pension. Balance Pension shall be paid on monthly basis. He may also opt for return capital u/p 13 of the EPS of the balance pension payable.OPTION FOR RETURN OF CAPITAL

The member may opt to draw revised pension and avail of return of capital under any one of the three alternatives as per the table shown u/p 13 of the scheme.

Labour LawsLiabilities Of Directors And Officers Of Companies

  Act Person Responsible Penal Provisions

1. Payment of Bonus Act, 1965.

Every Person who was in charge and was responsible to the Company

Imprisonment for six months or with fine of Rs.1,000 or with both.

2. Payment of Gratuity Act,1972 The person who has the

ultimate control over the affairs of the establishment or where such affairs are entrusted to any other person, whether called a Manager, Managing Director & by any other name such person.

Imprisonment for minimum 6 months and maximum one year or with fine up to Rs. 20,000 or with both.

3. Payment of Wages Act, 1936

Whoever is responsible for the payment of wages to an employed person.

Varied punishments with fine ranging from two hundred rupees to one thousand Rupees, depending on the violation of concerned provisions.

4. The Bombay Shops and EstablishmentsAct, 1948

Person owning or having charge of business of an Establishment, and includes a Manager, agent or other persons acting in the General Management or control of an establishment.

For first, second or subsequent offenses, fine of Rs. 100/- which may extend to Rs. 1500/-.

5. The Workmen’sCompensationAct, 1923

Every employer.(Employer means body of persons)

Fine up to five hundred rupees

6.The Industrial Employment Standing Order Act. 1946

The Owner of an Industrial Establishment. Five thousand rupees and in

the case of a continuing offenses with a further fine which may extend to two hundred rupees for every day.

7. The Maternity Benefit Act, 1961 The person who has the

ultimate control of the affairs of the establishment or where the any other person, whether called Manager, Managing Director orManaging agent, such

Imprisonment which shall not be less than three months but which may extend to one year and with fine which shall not be less than two thousand rupees.

person.8. The MinimumWages Act, 1948

The Manager of the Factory in Factories or in any other case any person responsible to the owner for the supervision and control of employees.

Imprisonment for six months or with fine which may extend to five hundred rupees or with both.

9. The Motor Transport WorkersAct, 1961

If the Commissioner is attributable to any neglect on the part of any Director, Manager, or any Officer of the Company, such director, manager or officer shall be liable.

Punishment varies with imprisonment which may be for one month or three months or with fine, depending on the violation of concerned provision.

10. The Industrial DisputesAct, 1947

Every Director, Manager Secretary or other Officers or person concerned with the Management thereof, unless he proves that the offenses was committed without his knowledge and consent.

Punishment varies depending on the violation of concerned provisions. Imprisonment for six months or one year and fine of Rs. 1000 and Rs. 5,000 as the case may be.

11. The ApprenticesAct, 1961

Any person who employs person to do any work and includes any person entrusted with the supervision and control of employees in such establishment.

Imprisonment for six months or with fine or with both.

12. The Contract Labour Act, 1970

Director of the Company unless he proves that the offenses was committed without his knowledge.

Imprisonment for three months or with fine of Rs. 500 or with both.

13. The Employees’ Provident Funds andMiscellaneousProvisions Act, 1952.

Director of the Company Imprisonment up to five years.

14. The Employees,

State InsuranceAct, 1948

In a Factory, the owner or Occupier, In any other case, the person

Imprisonment for one year or six months according to the violation of concerned provision and with fine.

responsible for the supervision and Control of the Establishment.

15. The Factories Act, 1948

The occupier and manager of the Factory years or with fine (Occupier means the Director of the Company).

Imprisonment for two years or with fine which may extend to one lakh rupees or with both and if the contravention is continued with a further fine which may extend to one thousand for each day.

COMPANY PROFILE

COMPANY PROFILE

PROFILE OF THE APGENCO

Andhra Pradesh Power Generation Corporation Limited is one of the pivotal

organizations of Andhra Pradesh, engaged in the business of Power generation. Apart

from operation & Maintenance of the power plants it has undertaken the execution of the

ongoing & new power projects scheduled under capacity addition Programmer and is

taking up renovation & modernization works of the old power stations.

APGENCO came into existence on 28.12.1998 and commenced operations from

01.02.1999. This was a sequel to Government’s reforms in Power Sector to unbundle the

activities relating to Generation, Transmission and Distribution of Power. All the

Generating Stations owned by erstwhile APSEB were transferred to the control of

APGENCO.

The installed capacity of APGENCO as on 01.04.2009 is 7548.9 MW comprising

3882.50 MW Thermal, 3664.4 MW Hydro and 2 MW Wind power stations, and

contributes about half the total Energy Requirement of Andhra Pradesh. APGENCO is

third largest power generating utility in the Country next to NTPC and Maharashtra. It's

installed Hydro capacity of 3664.4 MW is the second highest among the Country.

CAPITAL STRUCTURE

The authorized share capital of the company is Rs 2500 corers divided into 25

cores Equity shares of Rs .100 each. The entire issue and subscribed capital of Rs

2106.80 cores is owned by government of Andhra Pradesh And by virtue of this

APGENCO Is a government undertaking u/s 619 of the companies Act .in terms of the

Andhra Pradesh Electricity Reforms (Transfer Scheme) Rules, 1999 APGENCO was

vested with assets over Rs.1000crores out of which the fixed assets were Rs.9682crores.

APGENCO has an equity base of Rs 2304.43 Cores with 10870 dedicate

employees as on 31.03.2008. The company has an asset base of approximately Rs

16,062crores

HISTORY OF APGENCO

When APSEB came into existence in 1959, APSEB started functioning with the

objectives of maintaining the power sector efficiently and economically simultaneously

ensuring demand meets the supply.

During the last decade inadequate capacity addition and low system frequency

operation of less than 48.5 Hz for more than half a decade considerably reduced the

power supply reliability.

The imbalance of the revenues against the cost of production, no significant

reduction in technical losses and energy thefts, high cost purchases from IPP's, other

SEB's gradually worsened the financial position of APSEB.

HIGH LEVEL COMMITTEEAND ITSRECOMMENDATIONS:

Government of Andhra Pradesh realizing the declining tendency of the financial position

of APSEB and considering the Government of India’s Liberalized policy fir attracting

private investment into power sector set up a high level committee in January 1995 to

look into present working of the APSEB and suggest remedies for improvement.

The committee after detailed deliberations with all the concerned and critical analysis

submitted the report in which it suggested some recommendations. Government of

Andhra Pradesh considering the recommendations made by committee had embarked

upon the AP ELECTRICITY REFORMS ACT in 1998. As a sequel the APSEB was

unbundled into Andhra Pradesh Power Generation Corporation (APGENCO) and

Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) on 01.02.99.

APTRANSCO was further unbundled W.E.F.01.04.2000 into “Transmission

Corporation” and four “Distribution Companies” (DISCOMS).

Thus APGENCO was incorporated as a company under the provisions of Companies Act,

on 29.12.1998. According to the Andhra Pradesh Electricity Reforms Act, 1998.

APGENCO commenced its business operations effective from 01.02.1999 and

according to the memorandum of APGENCO has to acquire, establish, construct and

operate Power-generating stations.

APGENCO VISION AND MISSION’ S

APGENCO VISION To be the best power utility in the country and one of the best in the world.

APGENCO MISSION

To generate adequate and reliable power most economically, efficiently and Eco-

friendly.

To spearhead accelerated power development by planning and implementing new

power projects.

To implement Renovation and Modernization of all existing units and enhance

their performance.

APGENCO CORE VALUES:

To proactively manage change to the liberalized environment and global trends.

To build leadership through professional excellence and quality.

To build a team based organization by sharing knowledge and empowering

employees.

To treat everyone with personal attention, openness, honesty and respect they

deserve.

To break down all departmental barriers for working together.

To have concern for ecology and environment.

LANDMARKS AND ACHIEVEMENTS

APGENCO is the third Largest Power utility in the country in terms of Installed

Capacity 6760.9 MW.

APGENCO Hydro Installed Capacity 3586.4 MW is the highest in the country.

Thermal plants are consistently winning the Gold and Silver medals for

Meritorious Productivity Award.

Availability of thermal plants has been (over a decade) well above the national

average.

Recently Srisailam Left Bank Power House, a unique complete under ground

powerhouse is successfully commissioned and being operated. This is the first

such one in southern region.

AMRP LIFT IRRIGATION Scheme is taken upon and completed well below the

stipulated time and budget .In that the pumping station commissioned (18MW) is first

such one in India where water is lifted to a height of 100Mts.

Srisailam complex is the largest hydro power station with installed capacity

1670 MW in the country.

Nagarjuna Sugar Left canal powerhouse is the first hydro station in the country to use

SCDCA for operation of the units from control room besides enhancing the Excitation

and Governor system with microprocessor controls.

Pochampadu Hydro electric scheme is the first hydro power station to use

microprocessor controls in the powerhouse.

Thermal generation during 2006-07 – 22067 MU – is highest ever achieved by

APGENCO.

The average PLF of 89.7 % during 2004-05 is the highest ever achieved and highest

in the country when compared with the utilities having comparable installed capacity and

vintage.

Since 1994-95 VTPS and RTPP are occupying top two positions in terms of PLF

rankings, except in the year 1999-00 in which RTPP stood second. VTPS stood FIRST in

the country during 1994-95, 1995-96, 1996-97, 1997-98and 2001-02 and RTPP stood

first in the country during 1998-99, 2000-01, 2002-03 and 2003-04.

RTPP has been receiving meritorious productivity Award for last six consecutive

years and bagged Gold Medal five years in a row since 1998-99.

VTPS has been receiving Meritorious Productivity Award for last twenty consecutive

years and bagged Gold Medal 9 times in a row since 1994-95.

About VTPS STAGE-IV (1x500MW)

Orders were placed on M/s BHEL manufactured items and zero date

commenced on 5-08-2005.

Consultancy contract is awarded on 20-09-2005.

For Balance of plant and civil works, Pre-bid meeting with pre-qualified

bidders was conducted on 27-01-2006 and 28-01-2006 Receipt of

technical and financial bids are due on 28-02-2006.

Unit will be commissioned by May 2008.

KTPS-V Stage has been receiving Meritorious Productivity Award for last four

consecutive years and bagged gold medal four times in a row since 1999-00.

1. EMPLOYEE AGE

Age Total %

25-35 12 40

35-45 14

47

Above 45 4 13

INTERPRETATIONS;-40% of the respondents age is between 25 - 35 year 46% of them. Satisfied the 35-45 year 13% of the respondent above 45year

Inference; - maximum of the respondents are satisfied Experience

2. Employee Experience

Experience Total %

1-5 8 27

5-10 10

33

Above 10 12 40

INTERPRETATIONS;- 27% of the respondents is 1-5year 33% of the respondents is 5-10year respondents above 10year respondent is 40%

Inference; - maximum of the respondents are satisfied Experience

3. Present Job Satisfaction

Satisfied Total %

YES 29 96.6

NO 1

3.3

INTERPRETATIONS; - 97% of the respondents are satisfied 3% of them not Satisfied

Inference; - maximum of the respondents are satisfied present job

4. Working Condition

Satisfied Total %

YES 28 93.3

NO 2

6.66

INTERPRETATIONS;-93% of the respondents are satisfied 7% of them are not Satisfied

Inference;-maximum of the respondents are satisfied working condition

5. Collective Agreement

INTERPRETATIONS;-70% of the respondents are satisfied 30% of them are not Satisfied.

6. YES PLEASE Tick

Satisfied Total %

Win-Win 11 52

Satisfied Total %

YES 21 70

NO 9

30

Loss-Win 3

14

Win-Loss 4 20

Can’t Say 3 14

YES PLEASE Tick

INTERPRETATIONS;-52% of the respondents win - win 14% of them

Satisfied they can’t Say 14%of the Loss-Win 20% of the win - loss

7. Union & Management Relations:

Satisfied Total %

Good 23 76.6

Average

6

20

Bad 4 10

INTERPRETATIONS;-77% 0f the respondents are good 20% of them

Average 10% of the respondents are bad

8. Management Meeting

Satisfied Total %

YES 21 70

NO 9

30

INTERPRETATIONS;-70% of the respondents are satisfied 30% of them are not

satisfied

Inferences;-maximum of the respondent are satisfied management meeting

9. Strikes & Lockout in APGENCO No:

Satisfied Total %

YES 10 33.3

NO 2.0

66.6

INTERPRETATIONS; - 33% of the respondent are satisfied. 64% of them are not

satisfied

Inferences;-maximum of the respondents are satisfied strikes are lock

outs in APGENCO

10. Grievance Redressel Methods:

Grievance Total

%

Satisfied 21 70

Neutral 8

26.6

Dissatisfied 1 3.33

INTERPRETATIONS;-70% of the respondent satisfied 27% of the neutral 3% of the

Dissatisfied

Inferences; - maximum of the respondents are satisfied grievance redressel

11. Dissatisfaction Employees:

Satisfied Total %

YES 27 90

NO 3

10

INTERPRETATIONS;-90% of the respondents are satisfied 10% of them

not satisfied

Inference;-maximum of the respondents are not satisfied dissatisfaction

employees

12. To what extent the union and management relations are effective in your organization

Opinion No. of. Respondents %

Effective 26 87

Natural 3 10

Not Effective 1 3

Total 30 100

INTERPRETATIONS:-The union and management relations in organization, the

respondents were asked to express their opinion. The overall 87% of employees answered

effective, 10% of the employees are natural upon statement and 3% of the employees

answered as not effective

13. Does the organization have effective participative system in

involvement of decision making?

Opinion No. of. Respondents %

Effective 27 90

Natural 2 7

Not Effective 1 3

Total 30 100

INTERPRETATIONS:-To understand that organizations have an effective participative

system in involvement of decision making, the respondents were asked to express their

option. The overall 90 of % of employees answered effective, 7% of employees are

neutral upon the statement and only 3% of employees answered as not effective.

14. Do you feel that management committee meetings are helpful in solving all your

problems?

Opinion No. of. Respondents %

Helpful 29 97

Natural 1 3

Not Helpful 0 0

Total 30 100

INTERPRETATIONS:-The management committee meetings are helpful to employees

in solving their problems, the respondents were asked to express their opinion. Overall

97% of the employees answered as helpful to them, 3% of employees are neutral upon

the statement.

15. Management is supportive with you in all statements

Opinion No. of. Respondents %

Agree 23 77

Natural 5 16

Disagree 2 7

Total 30 100

INTERPRETATIONS:-The management is supportive of them in all aspects, the

respondents were asked their opinions. Upon the statement. Overall 77% of the

employees agree to it and 16% of the employees are neutral upon the statement 7% of the

employees are disagreeing.

16. Employees enjoy job satisfaction in the organization

Opinion No. of. Respondents %

Agree 19 63

Natural 5 17

Disagree 6 20

Total 30 100

INTERPRETATIONS: - The opinion of whether they have job satisfied in the

organization the respondents were asked. Over 63% of the employees agree, 17% of the

employee is neutral upon the statement and 20%of the employees disagree to the

statement.

17. The working conditions prevailing in the company are safe and healthy.

OpinionNo. of. Respondents %

Agree 26 87

Natural 4 13

Disagree 0 0

Total 30 100

INTERPRETATIONS:-To know the working conditions in the company are safe and

healthy the employees were asked to express their opinion. Overall 87% of the employees

agree and30% of the employees are neutral upon the statement.

18. All levels of employees are treated impartially by the management of the

organization.

Opinion No. of. Respondents %

Agree 17 57

Natural 7 23

Disagree 6 20

Total 30 100

INTERPRETATIONS:-The opinion of whether they are treated imperially by

management, the respondents were asked to express their opinion. Over 57% of the

employees agree to it, 23% of the employee is neutral upon the statement and 20%of the

employees disagree to the statement

19. Are trade unions/association members solving all the problems of

the organization?

Opinion No. of. Respondents %

Yes 14 47

Average 16 53

No 0 0

Total 30 100

INTERPRETATIONS:-The trade unions are solving the problems of the organization,

the respondents were asked to express their view. Overall 47% of the employees

answered yes, 53% of the employees answered as an average.

20. Are you satisfied with the industrial relation maintained at

APGENCO ?

Opinion No. of. Respondents %

Effective 22 73

Natural 8 27

Not Effective 0 0

Total 30 100

INTERPRETATIONS: - The maintenance of industrial relations in organization the

respondents were asked to express their views. Overall 73% of the satisfied and 27% of

the employees are neutral upon the statement

21. How do you feel about recreation activities followed in APGENCO?

Opinion No. of. Respondents %

Satisfied 28 93

Natural 2 7

Not Effective 0 0

Total 30 100

INTERPRETATIONS To know the opinion of the employees about the recreation

activities in the organization the respondents were asked. Overall 93% of the employees

are satisfied and 7% of the employees are neutral upon the statement.

FINDINGS

FINDING:

Epsilon Electronic Pvt. Ltd. Is a 30years company which produces and

supplies all electronic goods and equipment to Indian Railways. Here are the few points I

noticed and observed while doing my project on Industrial Relations i.e. Employee &

Employer Relations.

The company is a “Small Medium Enterprise” certified by the Government of

India.

The company follows all rules and regulations laid down by the Government of

India.

The company provides allowances and pensions for welfare of the Employees like

P.F, ESI, Bonus, Gratuity and many other funds.

Industrial Relations constitute one of the most delicate and complex problems of

the modern industrial society due to changes in technologies and techniques.

The creation and the maintanence of good relations between the Workers and

Management is the very basic on which the development of an Industrial

Democracy depends.

SUGESSTIONS:

SUGESSTIONS:

While my interaction with the Employees of the company I came to know the practical

problems faced by them and solved between the Management and them.

Labour Dispute:

Being a manufacturing company it is very important to take care of the

final process of production. The company has got a problem while finalizing labour laws.

The situation has arisen and taken into a political twist which the

Management Exchange Board to fill the posts with suitable individuals to take a step to

request the employment.

Wages:

Another problem is Wages when I was discussing regarding payments of

Wages with Personnel Manager. The company has structured the employees into the

daily wages, semi skilled, skilled, supervisory, managerial, senior manager and cadres.

There was a tool down strike in 2000year by employees for implementing of equal pay to

all the employees to implement as per latest rules of the Government.

EMPLOYER’S SHOULD DO:

The Rules and Regulations of the company should properly defined.

The Employee pay structure should be informed properly.

The Employee should Educate Specific Industry Problems.

The Employee benefit during Probation should be properly defined.

The Employee benefits after Probation should be properly explained to them.

The leave rules should be properly explained.

The Internal benefits and External benefits should be properly explained like free

pairs of employee dress, employee shoes, food etc.

The support for eligible employee children.

The Insurance benefits to family.

The Pension of pay dates and eligibility criteria.

The supports for any leave urgency on Critical Problems etc.

EMPLOYEE’S SHOULD DO:

They should have good ability, character and truth to the Organization.

They should have full integrity to the company.

They should do hard work as per company standard Labour hours.

They should be sincere, must not divulge any information to competitors.

They should guard the rules and regulations of the company.

They should eliminate, discourage, grapevines, unhealthy workers in the

Organizations.

They should know all benefits clearly and get registered in near by recognized

labour Unions.

They must coordinate, cooperate full length during Labour hours.

They should take full energy to give maximum productivity to the company.

They should not become thieves, drunkards, terrorist, politicians, and public law

breakers in the Organization.

The Employees are well trained in their specialized departments. The company has got

different department:

1. Production Department

2. Purchase Department

3. Quality Department

4. Accounting Department

5. Manufacturing Department

6. Sales Department

7. Research & Development Department

8. Packaging Department

CONCLUSION

CONCLUSION:

Finally the most important fact that I noticed is that one thread

which runs through the whole fabric of Industrial Relations and which is necessary for

success is that “Labour which is not an article/commodity of commerce but it is a living

being, which need to be treated as Human Being and that employees differ in mental and

emotional abilities sentiments and tradition”.

The Epsilon Electronic company success key factor is the

“Management” i.e. the way the Management treats and behaves with its Employees, the

environment created by the Management. Inspite of many up’s and down’s in the market

due to new technologies, inventions, competition and many other problems how the

management is maintaining a strong and good relationship between the “Employee’s &

Employer’s” is the key of sustainable in the Market.

BIBLOGRAPHY