A

Summer Training Report

On

“INDUSTRIAL RELATIONS SCENARIO AT BHILAI STEEL PLANT(SAIL)” 

Submitted for partial fulfillment of requirement for the award of degree of

Master of Business Administration Of

MATS UNIVERSITY, RAIPUR (C.G.)

Session 2010-12 

Guided by: - Submitted by:-

Mrs. PRERNA NAIR SUMAN GUPTA

M.B.A. 2rd SEM

Department of Management Roll No. MU10MBA036

MATS University Pandri C.G.

                                  

                                                   

                                                          

1

PROJECT REPORT

ON

Industrial Relations scenario at Bhilai Steel Plant (SAIL) and

Working of the IR Deparment

In partial fulfillment of the Course MBA

Industry Internship Programme (IIP)

in Semester II of the

MASTER OF BUSINESS ADMINITRATION (Batch: Aug 2010-12)

PROJECT GUIDE: SUBMITTED BY:

Mrs. PRERNA NAIR SUMAN GUPTA

MATS UNIVERSITY MBA (II Sem)

RAIPUR PANDRI C.G. MATS UNIVERSITY(C.G.)

2

Declaration

This is to declare that the Report entitled “Industrial Relations scenario at Bhilai Steel Plant

(SAIL) and working of the IR deparment” has been made for the partial fulfillment of the

Course: Industry Internship Programme (IIP) in Semester II (Batch: August 2010-12) by me at

SAIL (Bhilai Steel Plant) under the guidance of Mr. P.P.VARMA DGM(P-

NW) .

I confirm that this report truly represents my work undertaken as a part of my Industry Internship

Programme (IIP). This work is not a replication of work done previously by any other person. I

also confirm that the contents of the report and the views contained therein have been discussed

and deliberated with the guide.

SUMAN GUPTA

MBA (II Sem)

3

Certificate

This is to certify that Ms. SUMAN GUPTA has completed the Report entitled “Industrial

Relations scenario at Bhilai Steel Plant (SAIL) and working of the IR deparment” under my

guidance for the partial fulfillment of the Course: Industry Internship Programme (IIP) in Semester

II of the Post Graduate Programme in Management (Batch: Aug 2010 – 2012). This is an original

work and it has been done by her under my guidance and supervision.

Mr. P.P.VARMA DGM(P-NW)

DGM (P-MPS/RECTT./NW)

BHILAI STEEL PLANT

(C.G.)

4

ACKNOWLEDGEMENT

Guidance, help and encouragement are the essential requirements for successful

completion of any project. I owe my gratitude to all those who have helped me in the preparation

of this project report.

I express my deepest gratitude to my Project Guide Mr. P.P.VARMA DGM(P-NW)

DGM (P-MPS/RECTT./NW) , for his valuable guidance

and help in completion of this project.

I feel obliged to all the staff of Industrial Relations Department, Bhilai Steel Plant in

general and Mr. D.K Sharma, Labour Inspector in particular for their generous help and

support.

I express my thanks to Dr.S.K Shukla, (Senior Research Assistant) for coordinating my

project work in Bhilai Steel Plant.

I also feel obliged to all the respondents, friends and others who have shared their

valuable time and opinion, for making significant contribution directly or indirectly in the

project.

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Table of Contents

S.No. Content Page No.

1. INTRODUCTION 7-9

1.1 INDUSTRY OVERVIEW 10-14

1.2 COMPANY OVERVIEW 19-29

1.3 INTRODUCTION TO INDUSTRIAL RELATIONS AT BSP

30-35

1.4 WORKING OF INDUSTRIAL RELATIONS DEPARTMENT AT BSP

36-39

2. PROJECT PROFILE 40-60

2.1 OBJECTIVES OF THE STUDY 41

2.2 METHODOLOGY 41-60

2.2.12.2.22.2.32.2.42.2.5

RESEARCH DESIGNSAMPLE DESIGNRESEARCH INSTRUMENTSQUESTIONNAIRE DESIGNDATA COLLECTION METHODS

3. OBSERVATIONS & ANALYSIS 61-62

4. FINDINGS 64

5. RECOMMENDATIONS 65

6. CONCLUSION 66

7. LEARNING OUTCOME 66

8. REFERENCES 67

6

9. ANNEXURE 68-73

Introduction

Industrial Relations

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry”

refers to “any productive activity in which an individual (or a group of individuals) is (are)

engaged”. By “relations” we mean “the relationships that exist within the industry between the

employer and his workmen.”1

Industrial relations is used to denote the collective relationships between management and the

workers. Traditionally, it covers aspects of industrial life as trade unionism, collective

bargaining, workers’ participation in management, discipline and grievance handling,

industrial disputes and interpretation of labor laws and rules and code of conduct.

Industry:

Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-

operation between an employer and his workmen for the production, supply or distribution of

goods or services with a view to satisfy human wants or wishes whether or not any capital has

been invested for the purpose of carrying on such activity; or such activity is carried on with a

motive to make any gain or profit. Thus, an industry is a whole gamut of activities that are

carried on by an employer with the help of his employees and labors for production and

distribution of goods to earn profit.

Employer:

An employer can be defined from different perspectives as:-

a person or business that pays a wage or fixed payment to other person(s) in exchange for

the services of such persons.

a person who directly engages a worker/employee in employment.

1 http://industrialrelations.naukrihub.com/introduction.html

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any person who employs, whether directly or through another person or agency, one or

more employees in any scheduled employment in respect of which minimum rates of

wages have been fixed.

As per Industrial Disputes Act 1947 an employer means:-

in relation to an industry carried on by or under the authority of any department of [the

Central Government or a State Government], the authority prescribed in this behalf, or

where no authority is prescribed, the head of the department;

in relation to an industry carried on by or on behalf of a local authority, the chief

executive officer of that authority;

Employee: - 

Employee is a person who is hired by another person or business for a wage or fixed

payment in exchange for personal services and who does not provide the services as part

of an independent business.

An employee is any individual employed by an employer.

A person who works for a public or private employer and receives remuneration in wages

or salary by his employer while working on a commission basis, piece-rates or time rate.

Employee, as per Employee State Insurance Act 1948, is any person employed for wages

in or in connection with work of a factory or establishment to which the act applies.

In order to qualify to be an employee, under ESI Act, a person should belong to any of the categories:

o those who are directly employed for wages by the principal employer within the premises

or outside in connection with work of the factory or establishment.

o those employed for wages by or through an immediate employer in the premises of the

factory or establishment in connection with the work thereof

o those employed for wages by or through an immediate employer in connection with the

factory or establishment outside the premises of such factory or establishment under the

supervision and control of the principal employer or his agent.

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o employees whose services are temporarily lent or let on hire to the principal employer by

an immediate employer under a contract of service (employees of security contractors,

labor contractors, house keeping contractors etc. come under this category).

Employment: The state of being employed or having a job.

Labor market: 

The market in which workers compete for jobs and employers compete for workers. It acts as the

external source from which organizations attract employees. These markets occur because

different conditions characterize different geographical areas, industries, occupations, and

professions at any given time.

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Industry Overview

Global Steel Scenario

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Though iron and steel have been used by man for almost 6000 years, yet the modern form of iron

and steel industry came into being only during the 19th century.The growth and development of iron

and steel industry in the world until the 2nd world war was comparatively slower. But the industry

has grown very rapidly after the 2nd world war.World production of steel, which was only 28.3

million tones (MT) in 1900, rose to 695 MT by 1992. The oil crises of 70’s affected the entire

economy of the world including steel industry.The position started improving after 1983 and peaked

at 780 MT in 1989.World steel production was around 1220 MT in 2009.

Historical Background

There are evidences that man knew the use of iron since the ancient civilities of Babylon, Mexico,

Egypt, China, India, Greece and Rome. Archeological findings in Mesopotamia and Egypt have

proved that iron and steel has been in the service of mankind for nearly 16000years.The origin of the

methods used by early man for extracting iron from its ores is unknown. In early days the product

probably was so relatively soft and unpredictable, that bronze continued to be preferred for many

tool and weapons .Eventually iron replace the nonferrous metal for these purposes when man learned

how to master the difficult arts of smelting , forging , hardening and tempering iron.

Iron, in the beginning was smelted by charcoal made from wood .Later coal was discovered as a

great source of heat. Subsequently, it was converted in to coke, which was found to be ideal for

smelting of iron. Iron kept its dominant place for 200 or more years after the Saugus works that was

the 1st successful iron works in America founded in 1646.With the advance of industrial revolution,

iron form the rails for the newly invented a rail road trains. It was also used to amour the sites of

fighting ships. About the mid-19th century the new age of steel began with the invention of Bessemer

process (1856) making steel available in large quantities at reasonable cost.

Top 30 steel producing companies in the world (2010-11)

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S.no Company Name Country Crude Steel output per year (million tonnes)

12

1 Arcelor Mittal Luxembourg 103,300,0002 Nippon Steel Japan 37,500,0003 Baosteel China 35,400,0004 Posco South Korea 34,700,0005 Hebei Iron & Steel Group China 33,300,0006 JFE Holdings Japan 33,000,0007 Wuhan Iron & Steel Group

(Wisco)China 27,700,000

8 Tata Steel India 24,400,0009 Jiangsu Shagang Group China 23,300,00010 U.S.Steel USA 23,200,00011 Shandong Iron & Steel Group China 21,800,00012 Nucor USA 20,500,00013 Gerdau Brazil 20,400,00014 Severstal Russia 19,200,00015 Evraz Group Russia 17,700,00016 Gruppo Riva Italy 16,900,00017 Anshan Iron & Steel Group China 16,000,00018 Thyssenkrupp Germany 15,900,00019 Maanshan Iron & Steel

CompanyChina 15,000,000

20 Sumitomo Metal Industries Japan 14,100,00021 Steel Authority of India Ltd.

(SAIL)India 13,700,000

22 Shougang Group China 12,200,00023 Magnitogorsk Iron and Steel

works(MMK)Russia 12,000,000

24 Novolipetsk Steel(NLMK) Russia 11,300,00025 Hunan Valin Steel Group China 11,200,00026 China Steel Corporation Taiwan 11,000,00027 Techint(Tenaris) Luxembourg 10,400,00028 Iranian Mines & Mining

Industries (IMIDRO)Iran 10,000,000

29 Industrial Union of Donbass (ISD)

Ukraine 9,900,000

30 Hyundai Steel (HSC) South Korea 9,800,000

Source: http://www.steelads.com/info/largeststeel/TOP30-Worlds-Largest-Steel-Companies.html

13

14

http://www.steelworld.com/newsletter/may11/ws0511.pdf

15

History of Steel in India

The Indian iron and steel industry is nearly a century old, with Tata Iron & Steel Co (Tata Steel)

as the first integrated steel plant to be set up in 1907. It was the first core sector to be completely

freed from the licensing regime (in 1990-91) and the pricing and distribution controls. The steel

industry is expanding worldwide. For a number of years it has been benefiting from the

exceptionally buoyant Asian economies (mainly India and China). The economic modernization

processes in these countries are driving the sharp rise in demand for steel.

The New Industrial policy adopted by the Government of India has opened up the iron and steel

sector for private investment by removing it from the list of industries reserved for public sector

and exempting it from compulsory licensing. Imports of foreign technology as well as foreign

direct investment are freely permitted up to certain limits under an automatic oute. This, along

with the other initiatives taken by the Government has given a definite impetus for entry,

participation and growth of the private sector in the steel industry. While the existing units are

being modernized/expanded, a large number of new/greenfield steel plants have also come up in

different parts of the country based on modern, cost effective, state of-the-art technologies.

Soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad,

has put India's steel industry on the world map. Dominating the Indian horizon is steel giant Tata

Steel, whose takeover of the UK-Dutch steel company Corus is the country's biggest buyout.

Meanwhile, the LN Mittal-owned Mittal Steel acquired French steel company Arcelor to create

the world's number one steel company, Arcelor Mittal; and Korean steel giant POSCO is

pumping money into mines and steel plants in Orissa to emerge as one of the biggest steel plants

in the state.

Indian history is also replete with references to the usage of iron and steel. Some of the ancient

monuments like the famous iron pillar near New Delhi or the Massive beams used at the Sun Temple

at Konark bear ample testimony to the technological excellence of the Indian metallurgist. The

history of iron in India goes back to ancient era, Our ancient literary sources like Rig-Veda, the

Atharva Veda, the Parana’s and the other Epics are full of references to the iron and its uses in peace

and wars. According to one of the studies, iron has been produced in India for over 3000 years, in

the primitive small scale facilities.

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Formation of Hindustan Steel Limited

When the Government of India decided to enter into the field of iron and steel production, it

broadly envisaged not to run the firm as a departmental undertaking. Although initially steel

project administration was directly under a Ministry of the Central Government, Hindustan Steel

was formed as a Limited Company, with President of India owing the shares on behalf of the

people of India. Thus Hindustan Steel Limited was set up on January 19, 1954.

Industry Structure2

Indian Iron and steel Industry can be divided into two main sectors Public sector and

Private sector. Further on the basis of routes of production, the Indian steel industry can be

divided into two types of producers.

.

Integrated producers2 http://www.cci.in/pdf/surveys_reports/iron-steel.pdf

17

Those that convert iron ore into steel. There are three major integrated steel players in India,

namely Steel Authority of India Limited (SAIL), Tata Iron and Steel Company Limited

(TISCO) and Rashtriya Ispat Nigam Limited (RINL).

Secondary producers

These are the mini steel plants (MSPs), which make steel by melting scrap or sponge iron or

a mixture of the two. Essar Steel, Ispat Industries and Lloyds steel are the largest producers

of steel through the secondary route.

Market Shares of Iron and Steel Industries in India

Source: CMIE (2007)

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1120692&

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Source: http://www.steelworld.com/newsletter/may11/isp0511.pdf

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Company Overview

20

Steel Authority of India Limited

Formation of Steel Authority of India Limited (SAIL)

The Committee of public Undertaking of the 5th lok Sabha was the 1st parliamentary Committee

to undertake a significant review of the question of setting up a holding Company for steel. It

was 1st considered in the Department of steel in 1971 with the following 2 objectives:

Rapid growth of the industrial sector, of the state as a leading agent of the growth

process; and

Ability of the Government to divert investment into areas which are strategic from the

point of view of future development.

In this context, it was recognized that the public sector had to be made more efficient in order

that it might be able to contribute far more than it had to the common pool of investible surplus

in the economy. Further such a holding company could perform a number other important

functions like coordination and control of constituent units, planning long term program,

introduction of necessary technological changes, setting up of an R & D organization and

training of managerial personnel for the public sector as a whole.

Based on the above consideration, the proposals to set up a holding company for steel and

associated input industry was approved by the Government in January 1972. Accordingly, the

formation of steel authority of India Limited was approved by the Government in December,

21

1972. The company was incorporated in January 24, 1973 with an authorized capital of Rs 2

thousand crore. In 1978 SAIL was restructured as an operating company.

Vision:

To be a respected world class corporation and leader in Indian steel business in quality,

productivity, profitability and customer satisfaction.

CREDO

1. We build lasting relationships with customers based on trust and mutual benefit.

2. We uphold highest ethical standards in conduct of our business.

3. We create and nurture a culture that supports flexibility, learning and is proactive to

change.

4. We chart a challenging career for employees with opportunities for advancement and

rewards.

5. We value the opportunity and responsibility to make a meaningful difference in

people’s lives.

SAIL is a Maharatna. PSU companies are divided into three categories:

Maharatna

Navratna

Miniratna CPSEs

o Category I

o Category II

22

ORGANISATION STRUCTURE OF SAIL

23

DIRECTOR (TECH)

DIRECTOR (PERSONNEL)

DIRECTOR (FINANCE)

CHIEF VIGILANCE

EXE. DIR (OPRAN)

EXE. DIR (IA)

ED (TECH & LEGAL SERVICE)

EXE. DIR (PROJECTS)

EXE. DIR (CMMG)

EXE. DIR. (CIG)

EXE. DIR. (CP)

CHAIRMAN

CEO, BSP)

CEO

CEO, RSP

CEO, DSP

EXE. DIRECTOR VISL

EXE. DIRECTOR SSP

EXE. DIRECTOR ASP

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

fully integrated iron and steel maker, producing both basic and special steels for domestic

construction, engineering, power, railway, automotive and defence industries and for sale in

export markets. SAIL is also among the five Maharatnas of the country's Central Public Sector

Enterprises.

SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets

and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods,

stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and

three special steel plants, located principally in the eastern and central regions of India and

situated close to domestic sources of raw materials, including the Company's iron ore, limestone

and dolomite mines. The company has the distinction of being India’s second largest producer of

iron ore and of having the country’s second largest mines network. This gives SAIL a

competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are

inputs for steel making.

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

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

Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices

spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27

Customer Contact Offices. CMO’s domestic marketing effort is supplemented by its ever

widening network of rural dealers who meet the demands of the smallest customers in the

remotest corners of the country. With the total number of dealers over 2000 , SAIL's wide

marketing spread ensures availability of quality steel in virtually all the districts of the country.

SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of

CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel

plants.

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

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

consultancy to clients world-wide.

24

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

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

Besides, SAIL has its own in-house Centre for Engineering and Technology (CET), Management

Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the

control of the Raw Materials Division in Kolkata. The Environment Management Division and

Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and

major units are ISO Certified.

Major Units 

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal

Salem Steel Plant (SSP) in Tamil Nadu

Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

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BHILAI STEEL PLANT

Bhilai Steel Plant is the flag ship unit of Steel Authority of India Limited. SAIL, a

fully integrated iron and steel maker, produces both basic and special steels for

domestic construction, engineering, power, railway, automotive and defense industries

and for sale in export markets. In terms of annual production SAIL is the 16th largest

steel producer in the world.Bhilai steel plant – a symbol of Indo –soviet techno –

economic collaboration ,is one of the first three integrated steel plant set up by

Government of India to build up a sound base for the industrial growth of the country,

The agreement for setting up the plant with a capacity setting up the plant with a

capacity of 1MT of Ingot steel was signed between the govt. of erstwhile U.S.S.R and

India on 2nd feb,1955,and after a short period of 4yrs,India entered the main stream of

the steel producer with the commissioning of its 1st blast furnace on 4th feb 1959 by the

then President of India Dr Rajendra Prasad. Commissioning of all the units of 1MT

stage was completed by 1961. In the initial phase the plant had to face many teething

problems , mostly unknown to the work force at the time, But by meticulous efforts

and team spirit ,these problem where surmounted and the rated capacity production

was achieved only within a yr of integrated operation of the plant.

Thereafter, the plant was expanded to 2.5MT capacity per yr, and than to 4 MT of

crude steel per yr, Bhilai expended its production capacity in two phases 1st to 2.5MT

which was completed on sept. 1, 1967 and the 4 MT Stage, which was completed in the

yr 1988.All the units of the plant have been laid out in sequential formation according

to technological interrelation ship so as to ensure uninterrupted flow of in process

material like coke, sinter, molten iron, hot ingot, as well as disposal of metallurgical

wastages and slag etc, minimizing the length of various inter plant communications,

utilities & services Bhilai has its own captive mines spread over 10929.80 acres. Iron

ore from dalli-rajhara group of mines, 85 km south west of bhilai .Lime stone

requirements are mate by nandini mines, 20 kms north of bhilai & dolomite comes

from hirri in bilaspur district, 135 kms north east of the plant. To meet the future

requirements of iron ore, another mining site rowghat, situated about 100 kms south of

rajhara, is proposed to be developed as the ore reserve as at rajhara are depleting the

26

plant now consist of 10 coke oven batteries. Six of them are 4.4 MTS tall. The 7 meters

tall fully automated batteries NO 9&10 are among the most modern in India. Of

Bhilai’s 7 blast furnaces, there are of 1033 cu.meters capacity each, 3 of 1719

cu.metres and 1 is 2000 cu.metres capacity each, 3 of 1719 cu.metres 1 is 2000

cu.metres capacity. Most of them have been modernized incorporating state-of-the-art

technology.

Steel is made through twin hearth furnaces in steel melting shop I as well as through

LD convertor –continuous casting route in SMS II. Steel grades conforming to various

national &international specifications are produced in both the melting shops.

Production of cleaner steel is ensured by flame enrichment and oxygen blowing in

SMS I while secondary refining in vacuum are degassing ensures homogenous steel

chemistry in SMS II. Also in SMS II is a 130 T capacity RH degassing unit, installed

mainly to remove hydrogen from rail. Annual capacity 1.425 MT cast steel.Steel and

ladle furnace to meet present and future requirements of quality steel. Bhilai is capable

of providing the cleanest & finest grades of steel. The rolling mill complex consists of

the blooming and billet mill, rail and structural mill, merchant mill, wire rod mill and

also a most modern plate mill. While input to the BBM and subsequently to merchant

mill and wire rod mill comes from the twin hearth furnaces, the rail and structured mill

& plate mill roll long and flat products respectively from the continuously cast bloom a

slabs only. The total length of rail rolled at Bhilai so far would circumvent the globe

more than 4.5 times. To back this up, there is the ore handling, plant, 3 sintering plants-

of which 1 is most modern, 2 captive power plants with a generating capacity of 110

MW, 2 oxygen plant, engineering shops, To back this up, there is the Ore Handling

Plant, three Sintering Plants - of which one is most modern, two captive Power Plants

with a generating capacity of 110MW, two Oxygen Plants, Engineering Shops,

Machine Shops and a host of other supporting agencies giving Bhilai a lot of self-

sufficiency in fulfilling the rigorous demands of an integrated steel plant. Power

Plant No.2 of 74 MW capacity has been divested to a 50:50 SAIL/NTPC joint

venture company NSPCL.BSP is the sole manufacturer of rails and producer of

the widest and heaviest plates in India. Bhilai specializes in the high strength UTS

90 rails, high tensile and boiler quality plates, TMT bars, and electrode quality wire

27

rods (plain, Electrode quality) in 5.5,6,7,8,,&10mm, 8, 12 mmTMT. plain and ribbed,

and 12 mm plain in coil form.. It is a major exporter of steel products with over 70% of

total exports from the Steel Authority of India Limited being from Bhilai.The

distinction of being the first integrated steel plant with all major production units

and marketable products covered under ISO 9002 Quality Certification belongs to

BSP. This includes manufacture of blast furnace coke and coal chemicals,

production of hot metal and pig iron, steel making through twin hearth and basic

oxygen processes, manufacture of steel slabs and blooms by continuous casting,

and production of hot rolled steel blooms, billets and rails, structural, plates,

steel sections and wire rods. The plant’s Quality Assurance System has been

awarded ISO 9001:2000 certification. Not content with the Quality Assurance system

for production processes, Bhilai has obtained ISO 14001 certification for its

Environment Management System and for its Dalli Mines. Besides environment-

friendly technology like Coal Dust Injection System in the Blast Furnaces, de-

dusting units and electrostatic precipitators in other units, BSP has continued a

vigorous a forestation drive, planting trees each year averaging an impressive 1000

trees per day in the steel township and mines. A leader in terms of profitability,

productivity and energy conservation, BSP has maintained growth despite recent

difficult market conditions. A significant reason for BSps performance is adherence

to quality management systems in different fields.: Bhilai has become the first

public sector organization to have been awarded all the four certifications of ISO

9001 for quality, ISO 14001 for environmental management system for plant and

mines, OHSAS 18000 for safety and health and SA 8000 for social accountability.

28

Flow Chart of Production

29

Introduction to

Industrial Relations

at BSP

30

General Industrial Relations scenario in BSP and Introduction about different

Trade Unions operating in BSP.

Bhilai Steel Plant has had a chequered history of peaceful and harmonious industrial

relations. There has been no loss of production on account of strikes or work stoppages for last

many years. The importance of discipline in maintaining the health and well – being of an

organization, cannot be over – emphasized. The optimum utilization of manpower is absolutely

central to the productivity and profitability of an organization.

The recognized union at Bhilai Steel Plant, i.e. INTUC – affiliated Steel Workers Union

(SWU) has always acted responsibly in the sense that it has not given strike calls. This union has,

in general believed in collaboration and dialogue, in stead of confrontation and agitation. This

has played a major role in ensuring a peaceful and harmonious Industrial Relations climate at

Bhilai Steel Plant. However, during last four – five years this union has been in disarray, due to a

long running intra-union rivalry resulting in formation of several fractions. This has also resulted

in several court cases which have been pending for last few years in different courts, with no or

little hope of an early situation.

As a result, the ‘representative union’ has not been functioning for last few years, leading

to a vacuum in the union scenario. On 12 th January 2005 the Assistant Labour Commissioner,

Durg, was appointed by honorable Industrial Court, Raipur Court as ‘administrator’ of this union

to manage day-to-day affairs of the same.

However, there are other fringe unions at BSP with their limited spheres of influence. Most of

these unions are leftist in terms of ideology. In order to make their presence felt at the local level

as well as to be in line with their national leadership, these unions have given strike calls once

annually during last several years.

However, these strike calls have elicited no or little response from the employees of

Bhilai Steel Plant, thereby, ensuring continued industrial peace and harmony.

Industrial Relations in BSP – Major milestones:

1. Consistent profit for last two decades.

31

2. No man-days lost on account of strike / work stoppage for last three decades.

3. Bagged CII-CG award for best IR Practices.

4. Bagged the first Confederation of Indian Industry (CII) – CG HR Excellence Award.

The concept of ‘Representative Union’ as per MP and CG Industrial Relations ACT and

applicable to Bhilai Steel Plant --

The Act extends to whole of MP and CG. The Act is applicable to Scheduled Industries

wherein the numbers of employees are more than 100. Iron and Steel Industry is a scheduled

industry.

The Act covers all –

1. Employer / HOD / Owner

2. Employee – doing skilled, unskilled, manual, supervisory, technical, or clerical work for

hire or reward, includes contract workers, dismissed, discharged, retrenched and

terminated employees.

Authorities under the Act –

1. Commissioner / Deputy Commissioner, Assistant Commissioner of Labour

2. Conciliator

3. Registrar / Assistant Registrar of Representative Trade Union

4. Labour Officer / Deputy Labour Officer

5. Labour Court Presiding Officer, Industrial Court President / Member Board of

Arbitrators.

Recognition as Representative Union –

A “Representative Union” gets recognition under the following conditions:

1. Application to registrar.

2. If the application is not rejected during the last 12 months.

3. The union having highest membership.

4. If the application is in bonafide interest of employees.

32

5. Union did not instigate, aid, or assist, the continuation of illegal strike or stoppage during

the last 6 months.

6. Membership of the union must be open to all employees.

7. 25% of the employees are members (past 3 months).

8. Union must not sponsor / declare or support a strike without ballot and the support of

two-third members.

Cancellation of Recognition –

Recognition of “Representative Union” gets cancelled under the following conditions:

1. If recognition was by mistake or fraud or misrepresentation.

2. If the strength of union falls below the minimum (continuous 3 months).

3. If the membership is not open for all.

4. If the union is not conducting in the bonafide interest of employees.

5. If the union is not functioning as per its constitution.

6. If the union has instigated, aided, or assisted illegal strike or stoppage of work.

7. If the union has sponsored illegal strike.

8. In case of cancellation appeal may be made to Industrial Court within 30 days.

9. In case of recognition of another union.

10. Legal practioner not allowed.

11. Employee to appear through union only (representative or other).

Industrial Matter-

Industrial matter consists of all the matters related to:

1. Employment

2. Terms and conditions of employment

3. Work and hours of work

4. Wages

5. Privileges

6. Rights or duties

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Industrial Dispute-

Dispute or difference connected with industrial matters between –

Employer and employees

Employer and employer

Employees and employees

Settlement Mechanism –

Industrial dispute can be solved through following mechanism:

1. Joint consultation

2. Conciliation

3. Settlement and report to registrar / chief conciliator

4. (FOC) failure of conciliation report to chief conciliator

5. Chief conciliator to forward report to the government

6. Arbitration – (by written agreement) submission to Labour court, Industrial Court, Board

or Person, or Arbitrator.

7. Reference of dispute by government

INTRODUCTION TO DIFFERENT TRADE UNIONS OPERATING IN

BHILAI STEEL PLANT:

There are various registered Trade Unions operating in Bhilai Steel Plant. The list is as

follows:

34

LIST OF REGISTERED TRADE UNIONS

S no. Name of the Union Affiliation

1 Steel Workers Union INTUC

2 Hindustan Steel Employees Union CITU

3 Bhilai Steel Mazdoor Sabha AITUC

4 Bhilai Shramik Sabha, Bhilai H.M.S.

5 Bhilai Ispat Shramik Panchayat, Bhilai H.M.K.P

6 Hind Mazdoor Kisan Panchayat, Bhilai H.M.K.P

7 Bhilai Ispat Mazdoor Panchayat, Bhilai H.M.K.P

8 Center of Steel Workers AICCTU

9 Bhilai Ispat Mazdoor Sangh BMS

10 Steel Employees Union, Bhilai INTUC

11 Bhilai Ispat Theka Shramik Sangh INTUC

12 Bhilai Ispat Shramik Sangh Independent

13 Bhilai Steel Janshakti Workers Union Janshakti Mazdoor Sabha

14 Ispat Janshakti Union, Bhilai Janshakti Mazdoor Sabha

15 Chhattisgarh Ispat Shramik Sangh Independent

35

Working of

Industrial Relations Department

at BSP

36

INDUSTRIAL RELATIONS CONTROL AND MONITORING:

It includes the following functions:

1. Regular monitoring of the prevailing IR scenario inside the plant area and the township in

general. This includes the area ranging from ALC Durg office to Khursipara area and

includes various Union Offices at different locations.

2. Dealing with various IR problems like strikes, dharnas, demonstrations, lock outs etc.

3. Dealing with fatal works as well as road accidents and taking care of related activities

like postmortem, assisting in arranging decent cremation etc.

4. Dealing with other accidents and taking care of related activities like follow-up with

sector-9 hospital & other concerned depts.

5. Maintaining regular liaison with district admn. , police and factory inspectorate.

6. Maintaining of Industrial Relations Control Room and performing regular activities like

providing telephonic clearance to Plant Vehicle Pool for release of truck for funeral of

deceased employees or dependents.

7. Keeping a regular vigil on the activities of various Trade Unions.

8. Maintaining event register and preparing quarterly compilation of IR activities.

9. Maintaining funeral Imprest and related records, i.e. related to the funeral expenses

provided by Bhilai Steel Plant to its employees.

10. Maintaining newspaper clipping register.

11. Manning every spot during VIP visits and giving regular feed back.

37

12. Dealing with various issues related to Contract Labour such as work stoppage at different

sites, periodic agitations.

LIAISON CELL FOR ENSURING IMPLEMENTATION OF

PRESIDENTIAL DIRECTIVES ON RESERVATION POLICY FOR SCs/

STs / OBCs. ---

The Industrial Relations Department is entrusted with looking after the welfare of SCs /

STs / OBCs employees of the plant and proper implementation of Presidential Directives with

respect to reservation policy for SCs / STs / OBCs. In this connection the Industrial Relations

Department performs the following tasks:

I. Ensuring that in departmental promotions within the plant, the posts reserved for SCs /

STs, i.e. 15% and 7.5%respectively, are utilized by employees of these categories only.

For this purpose, a system has been put in place, wherein the promotion orders for

employees are released only after the Departmental Promotion Committee (DPC), statements are

signed by the representative of “Liaison Officer” for SCs / STs in Bhilai Steel Plant, i.e. DGM

(Personnel-IR).

These statements are signed and cleared; only after it is checked that due representation

has been given to the eligible SC/ ST employees in promotion in accordance with the prescribed

quantum of reservation for them.

II. For those reserved posts, for which no eligible SC / ST

employee is available in the feeder cadre and at the same time

these posts are compulsorily required to be filled owing to operational requirements; there is a

statutory provision in place, that these posts can be “de-reserved” by the Competent Authority

for that particular DPC (June / Dec), and filled up by general candidates.

The Industrial Relations Department acts as the Liaison Agency to facilitate the above

process. For these, the “de-reservation” proposals are sent by the ‘personnel executives’ of the

38

concerned departments to Industrial Relations Department by mid – June or

mid – Dec., whatever the case may be.

The proposals are compiled and scrutinized at the SC/ ST Liaison Cell of Industrial Relations

Department. Then, a comprehensive “de-reservation” proposal for the entire plant is prepared

and put up to MD for approval. Copies of the approved proposal are then sent to the concerned

‘personnel executives’ to facilitate the issue of promotion orders of general candidates against

the de-reserved posts.

III. The in-charge Industrial Relations also acts as the Liaison Officer for OBCs. His

task is to ensure the implementation of reservation policy for OBCs in direct recruitment, as per

the quantum of reservation prescribed for C.G state for state level recruitment.

IV. Quarterly meetings are held at the level of Liaison Officer for SCs / STs, i.e. DGM

(Personnel - IR) with the office bearers of the sole recognized association of SC / ST employees

of BSP, i.e. “BSP SC / ST Employees Association”. This forum is used for addressing the

genuine problems / grievances of the SC / ST employees and solves them to the extent possible.

39

PROJECT

PROFILE

40

3.1 OBJECTIVES OF THE STUDY

1. To understand and analyse the current Industrial Relations scenario at Bhilai Steel

Plant

2. To understand the working of the Industrial Relations department at Bhilai Steel Plant

3. To study the impact of current Industrial Relations scenario on employees’ work-life.

4. To study the various measures taken by the IR dept to maintain cordial relations

between the workers and the management.

3.2 METHODOLOGY

SAMPLE SIZE:

A sample size of 79 workmen was considered for the survey. They were randomly selected from

various departments like Rail and Structural mill, Coke Oven, Steel Melting Shop – 1, Plate

Mill, Transport and Diesel(T & D).

Sampling Method:

The sampling method used is Non-Probabilistic (Convinience Sampling). The sampling unit is

the employees of BSP and they were chosen on the basis of convenience from departments like

Plate Mill

Rail and Structural Mill

Coke Oven

Bloom and Billet Mill

41

Diesel and Transport

SMS-1

RESEARCH INSTRUMENTS:

A questionnaire was designed (both in English and Hindi) to collect the data for the research.The

questionnaires were structured.

QUESTIONNAIRE DESIGN:

The questionnaire maily consists of two parts:-

1. Questions related to current scenario of Industrial Relations at Bhilai Steel Plant

2. Working of the Industrial Relations department.

The questionnaire consists of 25 questions for which respondents gave their responses on either a

likert scale ranging from “strongly disagree” to “strongly agree”or simple scales with options

Yes /No.

DATA COLLECTION METHODS:

The data collected in the study is both from primary and secondary sources.Primary data is

collected through questionnaire and the secondary data sources were company databases,

journals, reports and internet. Surveys were administered to employees on a voluntary basis

during their work hours.All of the sample units were approached individually where it was

explained that the purpose of the study was to understand how workers view their jobs (to avoid

priming effects, it was emphasized that there were no right or wrong answers and that employees

should respond as openly and honestly as possible). Employees then were asked (but not

required) to participate. Identity disclosure was optional to respondents, however strict

confidentiality was ensured to avoid revealing of any personal information to anyone.

42

Data Analysis

and Interpretation

43

1Part 1 (Current IR scenario)

1. Are you aware that there is a concept of “Single Representative Union” under MP & CG

IR Act?

As we can see from the pie-chart that 78% of the employees are aware of the concept of

“Single Representative Union” under the MP & CG IR Act where as 22% of the

employees don’t know about this concept.

2. Are you aware that there are 15 registered trade unions operating at BSP (Plant location)?

44

Only 53% of the employees know about the 15 registered Trade unions operating at BSP

(Plant location) whereas 47%, which is a relatively large number, are not aware of this

situation. This reemphasizes the point that the concept of “Single Representative Union”

has been central to the IR scenario at BSP for decades, and therefore the awareness about

other unions is quiet low. It also proves that these unions at best have been just fringe

unions which have been able to do little to catch the imagination of the employees. They

also have highly limited spheres or pockets of influence.

3. Are you aware that Industrial Disputes Act, 1947 is being implemented at BSP (Plant

location) in place of MP & CG IR Act?

45

As per the above figure, 67% of the employees know that ID Act is being implemented at

BSP in place of MP & CG IR Act which is a good number to start off with but still 33%

employees are not aware of the implementation of this Act.

4. Are you aware that Steel Workers Union (affiliated to INTUC) has for long been the

single Representative Union at BSP (Plant location) as per MP & CG IR Act?

Almost 91% of the employees are aware that Steel Workers Union has for long been the

Single Representative Union at BSP (Plant location) as per MP & CG IR Act which is an

appreciable figure whereas still there are only 9% of them who are not aware of this. This

reemphasizes the credibility as well as clout of this union for such a long time.

5. Are you aware that the captive mines of BSP are already under the ambit (scope) of

Industrial Disputes Act?

46

Only 59% of the employees know that the captive mines of BSP are under the scope of

ID Act but 41% are still not aware. Perhaps the distance of the mines from the plant

location as well as the lack of regular interaction between the employees of plant and

mines respectively is responsible for this lack of information.

6. Does the absence of a strong trade union affect your working?

According to the figure, 76% of the employees say that their work is affected by the

absence of a strong trade union, but 24% of them feel that the absence of a strong trade

union does not affect their work. This again underlines the importance that the employees

in general have attached to the Steel Workers Union traditionally.

47

7. The IR scenario at BSP is harmonious and peaceful.

As per the graph 67% of the employees agree and 10% strongly agree that the IR scenario

is peaceful whereas 20% of them disagree and 3% strongly disagree on the same point.

This is an important finding in view of the fact discussed above that the Single

Representative Union has stopped functioning for last many years.

8. The absence of a Strong Representative Trade Union is affecting the genuine interests of

employees.

According to the above figure, 67% and 16% of the employees agreed and strongly

agreed resp. to the statement that the absence of a Strong trade union is affecting the

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genuine interests of employees where as 9% and 8% of the employees disagreed and

strongly disagreed to this statement.

This indicates that most of the employees are affected by the absence of a strong trade

union but still around 17% of employees are not affected. So management should take

care of this.

This is an interesting finding because on one hand the IR scenario in general is found to

be harmonious by the respondents, whereas on the other the absence of a strong

representative union is felt.

9. In the changed industrial scenario in the country, trade unions are increasingly becoming

irrelevant.

As per the above figure, 58% and 5% of the employees agreed and strongly agreed resp.

that trade unions are becoming irrelevant in today’s changing industrial scenario whereas

28% and 9% disagreed and strongly disagreed resp. to this.

This shows that still there are almost 37% of the employees who think that trade unions

are relevant even in today’s changing industrial scenario which is relatively a big number.

This is also an interesting finding similar to 8 above.

10. The BSP management accedes (agrees) to the genuine demands of employees even

without any role performed by the trade unions.

49

As per the above figure, 53% and 6% of the employees agreed and strongly agreed resp.

that BSP management accedes to the genuine demands of the employees even without

any role performed by the trade union, whereas 23% and 18% disagreed and strongly

disagreed resp. to the same statement.

This underlines the credibility of the management in caring for the employees, despite the

employees’ traditional belief in the strength of the representative union to get their

genuine demands fulfilled.

11. The work culture at BSP is based on discipline and self-motivation.

According to the above figure, 71% and 21% of the employees agreed and strongly

agreed resp. to the statement that work culture at BSP is based on discipline and self

motivation, whereas only 3% and 5% disagreed and strongly disagreed to it.

50

This shows that BSP management is doing a good job in providing the best possible work

culture to its employees because 92% of the employees agree that the work culture here is

based on discipline.

12. The suggestion scheme and quality circle scheme facilitates as well as rewards creativity

and innovation amongst employees.

According to the above figure 94% of the employees agree to the statement that The

suggestion scheme and quality circle scheme facilitates as well as rewards creativity and

innovation amongst employees whereas only 6% of them disagree to this.

This result shows that BSP management is doing really well in promoting creativity and

innovation amongst employees.

13. BSP management is prompt and generous in recognizing and rewarding good

performance.

51

As per this figure 71% and 13% of the employees agreed and strongly agreed resp. to the

statement that BSP management is prompt and generous in recognizing and rewarding

good performance whereas 10% and 6% of the employees disagreed and strongly

disagreed to the same statement.

This gives the picture that BSP management is working well towards enhancing the

morale of the employees and has been successful in its attempt to make employees feel

that they are doing a good job.

14. The working condition in BSP is good and conducive for better performance.

.

52

As per the figure, 66% and 19% of the employees agreed and strongly agreed resp. to the

statement that the working condition in BSP is good and conducive for better performance

where as 13% and 2% of the employees disagreed and strongly disagreed to this statement.

This result shows that majority of the employees are happy with their working conditions

whereas still there are 15% of the employees who are not satisfied with their working

conditions.

15. The employee morale at BSP is quiet high.

As per the figure 68% and 23% of the employees agreed and strongly agreed resp. to the

statement that the employee morale at BSP is quiet high but 3% and 6% of the employees

disagreed and strongly disagreed to this statement.

This is a very positive indicator for the management, as 91% of the employees say that the

employee morale is quiet high.

53

Part 2 (Working of IR)

16. Are you aware that there is a truck provided by BSP free of cost to facilitate a cremation

in case of death of an employee or his/her dependent?

According to the above figure 100% of the employees are aware that a truck is provided

by BSP free of cost to facilitate a cremation in case of death of an employee or his/her

dependent.

This is a very high level of awareness amongst the employees and management should be

relieved that this initiative is well appreciated by the employees.

54

17. Are you aware that an amount of 5000 is paid by BSP through IR section as funeral

expenses in case of death of an employee?

As per the figure 96% of the employees are aware that an amount of 5000 is paid by BSP

through IR section as funeral expenses in case of death of an employee. This also shows a high

level of awareness amongst the employees related to this issue.

18. Are you aware that the helpline counter at Main Hospital Sector- 9 is run by IR section?

55

As per the figure 79% of the employees are aware that the helpline counter at Main Hospital

Sector- 9 is run by IR section whereas 21% of them are still unaware about this.

This shows that there is less awareness about this facility provided by IR than the other facilities

provided. It may be possible that the employees, who have not availed of medical services of late

or might not have faced any problem wherein the helpline staff could have helped them, are the

ones who are not aware of this.

19. Are you aware of the existence of a separate liaison cell for SC/ST within IR section?

As per the figure 78% of the employees are aware of the existence of a separate liaison cell

for SC/ST within IR section whereas 22% are not aware about this.

56

This is a substantial number because of the fact that the majority of the employees belong to

the general category and they don’t need to avail the services provided by this cell.

20. Are you aware that the various scholarship schemes for wards of BSP employees are now

being run by education department instead of IR section?

As per the figure, 89% of the employees are aware that the various scholarship schemes

for wards of BSP employees are now being run by education department instead of IR

section, whereas 11% of them are still not aware. In general the awareness level is

sufficiently high.

21. The IR section responds quickly and efficiently to situations like work accidents and

employee unrest.

57

As per the above figure, 68% and 15% of the employees agreed and strongly agreed resp. that

the IR section responds quickly and efficiently to situations like work accidents and employee

unrest whereas 13% and 4% disagreed and strongly disagreed to this statement.

This result shows that the IR section is working efficiently in case of work accidents because

85% of the employees agree and are satisfied with the working of the IR dept.

22. The IR section acts as an effective communication channel between management and

employees in general.

As per the above figure 65% and 10% of the employees agreed and strongly agreed to the

statement that the IR section acts as an effective communication channel between management

58

and employees in general, whereas 16% and 9% of the employees disagreed and strongly

disagreed to the statement.

This shows that three quarters of the employees are appreciating the efforts of IR in acting as an

effective communication channel between management and employees which is a very good

number.

23. The IR section has to perform various difficult and unpleasant jobs.

As per the above figure 66% and 13% of the employees agreed and strongly agreed to the

statement that IR section has to perform various difficult and unpleasant jobs whereas

16% and 5% of the employees resp. disagreed and strongly disagreed to the statement.

Almost 79% of the employees agree that IR has to perform various difficult jobs which

means that the employees are also aware of the situation and condition in which IR dept.

has to work.

24. The IR section plays the role of facilitating negotiation between management and

employees in the exigency (urgent need) of employee unrest quiet effectively.

59

As per the above figure, we can see that 63% and 13% of the employees agreed and strongly

agreed to the statement that the IR section plays the role of facilitating negotiation between

management and employees in the exigency (urgent need) of employee unrest quiet effectively

whereas 20% and 4% of the employees disagreed and strongly disagreed to the statement resp.

This shows that 76% of the employees are satisfied by the role played by IR for negotiations in

case of any exigency which is a very substantial number.

25. a) Do you have any suggestions for improving the working of IR?

b) If yes, what are your suggestions?

60

1. Personnel from IR section should visit shopfloors more frequently and they should

directly interact with the people.

2. Workshops should be conducted more frequently to increase the awareness about the

working of the IR department.

3. At the grass root level awareness is not there about IR.

4. IR should not act as Middleman.

5. IR should not act as a part of management but as a representative in neutral to both

management and employees keeping in sight the interests of both. In recent past it has

secured the interest of management only.

FINDINGS

61

1. The current IR scenario at Bhilai Steel Plant is peaceful and harmonious.

2. More than 66% of the employees are aware that Industrial Disputes Act is being implemented at BSP in place of MP & CG IR Act.

3. Although there are 15 Registered Trade Unions operating at BSP (Plant Location) , almost half of the employees are unaware of it.

4. Concept of “Single Representative Union” has been central to the IR scenario at BSP for decades, and therefore the awareness about other unions is quiet low.

5. The employees in general have attached to the Steel Workers Union traditionally. 6. The IR scenario in general is found to be harmonious by the respondents, whereas the

absence of a strong representative union is also felt at the same time.

7. Management has in general proved to be capable of fulfiling the genuine demands of the employees.

8. Work culture is based on discipline.

9. BSP management is doing well in promoting creativity and innovation amongst employeesby implementing various schemes.

10. Working conditions at BSP are conducive and employees are happy with it.

62

11. Employee morale is quiet hig in the employees.

12. Almost 75% of the employees are appreciating the efforts of IR in acting as an effective communication channel between management and employees.

13. Majority of the employees are satisfied by the role played by IR for negotiations in case of any exigency.

Limitations

a. As BSP is a very large organisation it was not possible to cover each and every

department for the survey.

b. Few respondents were reluctant or suspicious in responding to questions.

c. Respondents may not reveal the fact because of job insecurity.

d. The respondents’ opinion can be biased.

e. Looking at the number of questions, few respondents did not give their opinion because

they did not have enough time to fill it.

63

RECOMMENDATIONS

1. As per the majority of the respondents, the absence of a strong trade union is affecting the

working of the employees. Therefore the management should communicate with the

employees more to understand what exactly is their problem and how do they suggest to

solve it and may consider it favourbly.

2. Awareness about the working of the IR department should be conveyed to the employees

so that they are able to be more benefitted from its services, by organizing workshops or

putting relevant and updated information on BSP’s Intranet.

64

CONCLUSION

This project helped me in getting an insight into the iron and steel industry and working of a unit

(BSP) of SAIL. The anlysis of current Industrial Relations scenario at BSP helped me in gaining

real world knowledge and how does it work.

Currently there are 15 registered Trade Unions operating at BSP, but there is no Strong trade

union worth its name. Also the rivalry among the trade unions is not proving to be beneficial

because in any case the interests of the employees are at stake. On one hand employees say that

they want a union to fulfil their genuine demands and on the other hand there are already 15

registered unions, out of which the Steel Workers Union has for long been the Single

Representative Union, now embroiled in its internal disputes and connected court cases.

Although the IR department is doing great but certainly it cannot be a substitute for a strong

trade union and therefore need is felt for a Strong Trade Union by many employees because

according to the survey carried out, the respondents feel that their genuine interests are not taken

care of. Inspite of all this the IR scenario at BSP is reasonably harmonious and peaceful which is

credited to the management. The proactive measures taken by management have proved to be a

great support.

However, the present IR scenario at Bhilai Steel Plant is set to undergo many changes in near

future because the central government has issued a notification that henceforth the “Appropriate

65

Government” for Bhilai Steel Plant shall be the central government as SAIL of which BSP is a

unit, is a central government undertaking. The foremost implication of this developement is that

henceforth Bhilai Steel Plant shall be governed under Industrial Disputes Act,1947(ID Act),

instead of the existing MP & CG IR Act,1960. In turn the concept of “Single Representative

Union” shall be replaced by multiplicity of trade unions. This will facilitate the formation of new

unions ( this trend has already begun) and shall increase inter-union rivalry. This development is

not likely to be good for the IR scenario in general and employees in particular. But, the process

of implementation of ID Act 1947 is very slow due to central government’s own compulsions

such as shortage of personnel/staff, lack of infrastructure. The BSP management can afford to

breathe easily atleast till the time the above issues are setteled.

LEARNING OUTCOME

1. Working of a large organisation like BSP which is a unit of SAIL (Steel Authority of India

Limited).

2. Operation of various departments (both Works and Non-Works).

3. How does actually the concepts of HR apply in real sense in such a large organization

whose manpower is approximately 31,000 (As on 1st June 2011) .

4. Day-to-day working of IR department in a large organization

5. Measures taken to maintain good relations with employees

6. How does the nature of this relationship impact the employees

7. Relevance of Trade Unions in the current industrial scenario

8. Better understanding of IR in terms of what are the tasks to be done by the IR department

and how should the situations be tackled.

66

References

1. Comapny website

2. C.S.V. Ratnam, Industrial Relations, Oxford University Press, N. Delhi, 2006

3. Company Journals

4. Reports on Documentation of Major IR activites

5. Internet

a. http://www.sail.co.in/

b. http://www.sail.co.in/pnu.php?tag=bhilai

c. http://pblabour.gov.in/pdf/acts_rules/inustrial_disputes_act_1947.pdf

d. www.cci.in/pdf/surveys_reports/iron-steel.pdf

e. http://www.steelworld.com/newsletter/may11/ws0511.pdf

f. http://www.steelads.com/info/largeststeel/TOP30-Worlds-Largest-Steel-

Companies.html

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Annexures

68

QuestionnaireDear Sir/Madam,I am conducting a survey on “Industrial Relations scenario at BSP and working of the IR department” to be submitted towards the partial fulfillment of MBA Degree. Kindly extend your help. The information you give will be kept confidential and will be used only for study purpose.Thanking YouSonal PiparsaniaAlliance University,School of Business, BangaloreMBA (HR)

Name (optional): ____________________________________________Department: ________________________________________Designation: ________________________________________Year of Joining: ________________

Part 11. Are you aware that there is a concept of “Single Representative Union” under MP & CG

IR Act?

Yes No 2. Are you aware that there are 15 registered trade unions operating at BSP (Plant location)?

Yes No 3. Are you aware that Industrial Disputes Act, 1947 is being implemented at BSP (Plant

location) in place of MP & CG IR Act?

69

Yes No

4. Are you aware that Steel Workers Union (affiliated to INTUC) has for long been the single Representative Union at BSP (Plant location) as per MP & CG IR Act?

Yes No

5. Are you aware that the captive mines of BSP are already under the ambit(scope) of Industrial Disputes Act?

Yes No 6. Does the absence of a strong trade union affect your working?

Yes No

7. The IR scenario at BSP is harmonious and peaceful.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

8. The absence of a Strong Representative Trade Union is affecting the genuine interests of employees.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

9. In the changed industrial scenario in the country, trade unions are increasingly becoming irrelevant.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

10. The BSP management accedes (agrees) to the genuine demands of employees even without any role performed by the trade unions.

70

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

11. The work culture at BSP is based on discipline and self-motivation.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

12. The suggestion scheme and quality circle scheme facilitates as well as rewards creativity and innovation amongst employees.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

13. BSP management is prompt and generous in recognizing and rewarding good performance.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

14. The working condition in BSP is good and conducive for better performance.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

15. The employee morale at BSP is quiet high.

o Strongly Disagree

71

o Disagree

o Agree

o Strongly Agree

Part 216. Are you aware that there is a truck provided by BSP free of cost to facilitate a cremation

in case of death of an employee or his/her dependent?

Yes No 17. Are you aware that an amount of 5000 is paid by BSP through IR section as funeral

expenses in case of death of an employee?

Yes No

18. Are you aware that the helpline counter at Main Hospital Sector- 9 is run by IR section?

Yes No 19. Are you aware of the existence of a separate liaison cell for SC/ST within IR section?

Yes No

20. Are you aware that the various scholarship schemes for awards of BSP employees are now being run by education department instead of IR section?

Yes No

21. The IR section responds quickly and efficiently to situations like work accidents and employee unrest.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

22. The IR section acts as an effective communication channel between management and employees in general.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

72

23. The IR section has to perform various difficult and unpleasant jobs.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

24. The IR section plays the role of facilitating negotiation between management and employees in the exigency (urgent need) of employee unrest quiet effectively.

o Strongly Disagree

o Disagree

o Agree

o Strongly Agree

25. a) Do you have any suggestions for improving the working of IR?

Yes No

b) If yes, what are your suggestions?

Date:

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