1. (a) Industrial dispute.
(b) Compulsory arbitration.
(c) Joint management council.
(d) Social customs.
(e) Minimum wage.
(f) Partial disablement.
2. Explain the progress of collective bargaining in India.
3. Review the evolution of industrial relations in India.
4. Describe the machinery available for the settlement of industrial disputes.
5. Elucidate the functioning of works committees.
6. What are the forces that influence modern social legislation?
7. State the salient features of Equal Remuneration Act.
8. Machinery and Tools Ltd. was established in Hyderabad in 1996. The total employee strength is 1000
of which 2/5th are shop floor workers. The workers belong to Mysore Division, Industrial Workers
General Union (affiliated to AITUC) and are registered under the Trade Union Act of 1926.
In 1999, the management decided to introduce CNC (computer numerically controlled) machines to
increase the speed and efficiency of production. "Higher productivity would lead to higher profits and
enable then to survive in the market characterised by a competitive environment. This would mean
even workers benefiting in the long run" was the opinion of management.
However, the workers came to know about this stand or mgt. through an informal channel of
communication and resulting in them immediately preparing a Charter of Demands and presenting it
to management.
The main demands in the charter related to increase in wage scale and ensuring job, guarantee for all.
There were other petty demands that the mgt. conceded to. But management could not afford to raise
wage levels currently as they had already placed orders for the CNC machines and incurred huge
investments. On the other hand, CNC machines would require a minimum number of operators and
certainly meant job cuts to the extent of 10% of workers.
When the parties met at the Bargaining Table, the management tried to explain that it would be the
workers benefiting in the long run. Hence, if the workers allowed them to have job cuts, the mgt. would
definitely raise the wage levels in the next financial year.
The union numbers put on a hostile stand saying that wage raises would be no use to them if they had
no jobs. Mgt. made it clear that they could not cancel the orders for CNC machines as it would mean
huge losses for the company and in turn for workers and mgt.
The union members felt neglected and exploited and decided to go on a strike where upon the matter
was referred to a III party for resolution.
Questions :
(a) Why do you think, the collective bargaining exercise failed?
(b) Are the union members justified in going on strike? If yes, what action would you
take-assuming that you are on the mgt's side?
(DEM2BC 3)
(c) What was the root cause of the problem? Could the conflict be avoided? If yes, how?

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