HINDUSTAND AERONATIC LIMMITED

8/12/2019 HINDUSTAND AERONATIC LIMMITED

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SUBMITTED BY

SUDHIR KUMAR PANI

Roll No. : 10MBA033Regd. No. : 265/09

FOR THE PARTIAL FULFILMENT OF MBA PROGRAMME

UNDER THE GUIDANCE !

". #$l$%&

SUBMITTED T

DDCE SAMBALPUR UNIVERSITY

SESSION 2009-2011

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CERTIFICATE

This is to citify that the work entitled Industrial Relation Practices in

HINDUSTAND AERONATIC LIMMITED, SUNABEDA, ENGINE

DIVISION, is a piece of term project done bySudhir Kumar Pani, a

student of second year MBA, under my guidance and supervision for the

partial fulfillment of MBA curriculum of DDCE SAMBALPUR

UNIVERSITY, SAMBALPUR.

I WISH ALL SUCCESS IN YOUR LIFE

K. PalaniFaculty in Human

Resource Management

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EXAMINERS CERTIFICATE

This project is submitted by Sudhir Kumar Pani of MBA bearing the

Roll No. !MBA!"" under ##$%& Sambalpur 'ni(ersity and for)arded for

e(aluation.

*nternal %+aminer %+ternal %+aminer

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CERTIFICATE OF APPROVAL

This is to Certify that the Project Entitled:

Industrial Relation Practices in HINDUSTAND AERONATIC LIMMITED

Submitted by Sudhir Kumar Pani,%nr. No -/0!12& Sambalpur 'ni(ersity& Burla

to)ards partial fulfillment of the re3uirements for the a)ard of the degree of Master of

Business Administration ,MBA2 is a bona fide record of the )or4 carried out by him

under the able guidance ofK. Palani& 5aculty& N*$%& Angul.

,Appro(al of the $enter #irector2

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DECLARATION

I hereby undertake and declare that this submission is my original

work and, to the best of my knowledge and belief, it contains no

material previously published or written by another person nor

material which has been accepted for the award of any other degree or

diploma of any Institute or other University of higher learning, except

where due acknowledgement has been made in the text.

Sudhir Kumar Pani

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ACKNOWLEDMENT

I express my sincere thanks to the Centre irector, !IC", #ngul for

his valuable suggestions to prepare this pro$ect.

I wish to take this opportunity to express my deep sense of gratitude

to K. Palani for his valuable guidance in this "ndeavour. %e has been

a constant source of inspiration and I sincerely thank him for his

suggestions and help to prepare this report.

&inally it is my formost duty to thank all my respondents who helped

me to complete my filed work without which this pro$ect not has been

possible.

'udhir Kumar Pani

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CONTENTS

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CHAPTER-I

INTRODUCTION:

Labour today is the front page' news throughout the world.

The concept of Industrial Relations & Personnel Management

centers around "labour". Generally labour sells his physical&

mental services to others with a motto to earn his living. Hencethey should be recognized as a part&parcel of the organization.

But in early stages of industrialization he was exploited

ruthlessly due to self seeking objectives of capitalists. During this

period social conditions of workers had reached their lowest ebb.

The workers were over worked. Women&children were employed in

factories&mines in unhygienic conditions, slums & overcrowding

around the factory were common people in industries were not

treated as human beings. Unimaginable long hours of work in ill

lighted, ill-ventilated factories&lower wages barely enabled them to

keep the fire of life burning. It was a movement where out manhood

was brutalized to maximum extent, womanhood was dishonored &

childhood poisoned at every source.

But every day is not Sunday. Gone are those days when

labour was treated as commodity that could be purchased, made

use of&discarded when value went down. Thanks to rapid changes

in science&technology, behavioral science universal recognition of

human rights, the management of industry came to realize thatthe worker does not only brings his hand to the organization but

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he is also utilizes his head for the betterment of the organization &

is essentially

a human being having a heart full of emotions&finer things life.

Simultaneous to this the worker also become educated enlightened

day-by-day & started demanding his rights. Hence they are

regarded as the partner of the production in today's industrial

world.

Now fate of employers is guided by fate of workers. Now

management is trying their best to magnetize workers by providing

different welfare measures. The cordial relationship that exists

between labour & management is known as labour management

relation in industrial cycle.

CONCEPTI CONCEPTUAL FRAMEWORK

Industrial Relation is nothing but an existing relationship

between employees & employers.Itconstitutes of title most

complex & delicate relationship in the course of running of an

industry. An industry is a social world in miniature. As association

of various persons creates industrial relationship. This association

affects social, political & economic life of the whole community.Thus, industrial life creates a series of social relationship, which

regulates the relations not only between workmen & management,

but also of the community; Industrial Relations have been defined

in various way

Dale Yoder defines, "Industrial Relations describe

-relationship between management and employers or among

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company.

In a border sense the present study enables a student to

understand;

Organization structure&internal organization of personnel

department.

Functions of Industrial Relations Department.

Functions & duties of personnel department.

Management culture&style.

The causes, consequences & techniques

of solving disputes.

Handling of day-to-day grievance of

workers.

Trade unionism & collective bargaining.

Thus, both theoretical & practical knowledge will help one to

understand about the subject, projects the whole edifice of the

organization in which the study has been conducted.

SCOPE OF THE STUDY

Though the scope of field study is very vast, keeping in view

the availability of the resources & time factor, the present work is

confined to a single unit. The present

Study also specific in that, it aims at studding how industrial

unit i's organizing its manpower & administration them towards

achieving organizational goal. The present study aims at making an

elaborate analysis of different functions in the area of personnel

administration, industrial relations.

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The scope of the study is confined to H.A.L (K.D) Sunabeda. The

data have been elucidated in the following areas:

Organizational structure and function of the personaldepartment, industrial relations department.

Positive aspects of industrial relations which broadly covers

collective bargaining. Labour management co-operation.

Grievance handling and disciplinary actions.

Trade union and its relationship with the management.

IMORTANCEOFTHESTUDY:

The subject Human Resource Management (MBA) is a

professional source, of which the researcher is a student. In any

Profession, It is not merely academic and theoretical but is

definitely practical in its aim. As such the theory has to be put to

test in practical situations. Human Resource Management

processes a body of knowledge or theory and hence it is an art and

I should deal with the applications of the theory. A student of

M.B.A (HRM) along with theoretical knowledge must also acquire

practical experiences by making field visits to actual industrial

organizations.

PURPOSE OF THE STUDY:

The subject "MBA (HRM)" is considered as a professional one.

So the students are required to gain knowledge not only from thetheoretical aspect but also from the particle experiences. There is

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saying that "Theory is disciplined by practice and practice is

advanced by theory". Moreover theory and practice are

complementary to each other. From this it is implied that a student

must have completely knowledge. So both the learning of theory

and practices are made obligatory.

The prime importance of the study being an academic one,

the researcher as a student of MBA(HRM) has to submit a

dissertation based on the field study report in order to get degree.

Field work report is a part fulfillment of MBA(HRM) course.

METHODOLOGY

For investigating&acquiring scientific knowledge about any

problem situation or subject, a researcher has to make out the

methodology of the study, which refers to the body of methods or

techniques used in conducting the study. To make the present

study more scientific, the following methodology has been adopted.

METHODS OF DATA COLLECTION

For the present study the methods of research utilized are:

Historical method&Survey method. Historical method includes the

personnel bulletins, personnel policy book, records, files, and

documents, pamphlets supplied by them. Survey methods include

the data collected from schedules & questionnaires.

SOURCES OF DATA COLLECTION

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Collection of data from primary sources likes management

representatives, union representatives &workers on random

sampling basis & secondary sources include the records &

documents supplied by them. The tools&techniques used for data

collection were with the help of structural scheduled

questionnaires. A cross section of group "A to group AF' workers&,

grade I to grade "II' executives as well as union office bearers were

interviewed in this regard.

LIMITATIONS

While conducting the research work, the researcher had to

face some or other difficulties. The present study also does not

escape from it. The limitations are as follows:

The time allowed for data collection was about to one

month. It is difficult to get all information within a short

span of time.

HAL, KD being a defense production unit, most of the

data are kept confidential, as per "Official Secret Act

1923".

The hindrance before the researcher was that most of the

executives as well as the workers were busy with their

normal work.

Some times the executives opined from their own

personal experiences while the workers, union office

bearers gave information from their angle and not as per

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the demand of the study.

Finally the company is a big concerned & has huge

records & data & the researcher had to carry out his

study on random sampling basis, omitting many of the

cases & records.

CHAPTERISATION

The study is presented in a more specific manner for better

convenience of the readers & for this, the entire study has been

divided in to five chapters & is arranged in logical sequence. So

far as the first chapter is concerned it covers the introduction of

the subject. In the second chapter, a brief profile of the

organization is given. In the third chapter a detail function of

personnel department & industrial relations department is

made. In the fourth chapter, industrial relations practices it

H.A.L, (KD) is given. In the fifth chapter the whole discussion is

concluded&suggestions are given.

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CHAPTER-II

BRIEF HISTORY OF HAL

The Hindustan Aeronautics Limited at Koraput division was

established to manufacture aero engines for fitment of MIG type of

aircraft. Construction for Koraput division at Orissa started in

1964&the actual production of engines started in 1969.

HAL is the backbone of India's Air Defense. An agreement

was signed in August of 1962, with the Soviet Union for the

manufacture of MIG-21 EZFL Aircraft under license. The Aero

engines factory at Koraput, Hyderabad has been set up to meet his

requirement under the name of Aeronautics India Limited on 15t

Oct. 1964&the company under the name Hindustan Aeronautics

Limited was formed.

The government sanction for the first phase of construction

of the aero engine factory at Sunabeda, in the Koraput district of

Orissa was accorded in March 1964 & the factory started

manufacture of R11 F2-300 series III engines for the fitment on

MIG-21 FL Aircraft from 1968-69 onwards. The first engines ofimported category were manufactured in Dec. 1968&various

categories of engines were produced during the subsequent years.

The first raw material engine was produced in Feb. 1971.

The floor area of factory buildings (1,09,212 sq. mts.) as well

as plant&machineries have provisioned for the manufacture of

120 engines ofF2 series&overhaul of 144 engines per annum on

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two shift basis initially. Subsequently, plant&machine provision

for the overhaul of engines has been increased to 160 in the year

1984-85.

The production programmes for the factory also includes

manufacturing of forgings&castings required of MIG-21 aircraft.

To meet the air force requirement for imported fighter or

interceptor aircraft an agreement was signed with USSR in Aug.

1976 for manufacturing ofMIG-21 BIS aircraft.

The government's approval for setting up capital facilities

was accorded in Oct. 1977.The first engine of the imported

category was delivered to HAL Nasik Division in the year 1978-79.

A total of 300 engines were to be delivered under this project.

In August 1966 an agreement was signed with Soviet Union

to set up overhaul project in this division&government sanction

was accorded in1967. The factory started overhaul of R11 F2-300

series-III engines from 1970-71& the first overhaul engine was

delivered in Feb. This division till the end of March 1985 has

overhauled a total of 1576 enigmas.

Establishment of facilities of overhaul of R-25 series have

been almost completed & the first interim overhaul of engine of R-

25 series has been delivered during March 1983, with signing of

the inter government agreement for the manufacture of MIG-27.M.

Aircraft on 19thMarch 1982, the division was involved in

manufacture of 200 nos. of R29 B series of engines for the year

1984-85. Government during Sept. 1985 approved the preliminary

project report for the manufacture of R29 B series. The

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reproduction activities like establishment of capital facilities,

provision of tools, finalizations of technologies etc. are in progress.

The raw materials production was launched in the year 1985-86&

the first raw material engine was delivered in the year 1987-86.

The organization comes under the Factories Act 1948.

Organization at Present

Over the last six decades, HAL has grown progressively into

an integrated Aerospace Organization with the indigenous design

and development of advanced light Helicopter (ALH-Dhruv),

Intermediate Jet Trainer (UT) and light Combat Aircraft (LCA-Tejas).

The ongoing major projects and programmes include ALH

(both in military and civil roles), IlT, LCA, Pilot less Target Aircraft

(PTA), SU-30 MKI and Hawk Advanced Jet Trainer.

Aligning with emerging future requirement, HAL has

initiated the indigenous development of light Combat Helicopter

(LCH); as well as naval and trainer versions of LCA.

Geographical Location

While installing an industry an entrepreneur has to choose

the location properly considering the pre-requisites like availability

of land, labour, power, raw materials, communication facilities etc.

If these factors are taken as units of measuring rod, the company

Hindustan Aeronautics Limited, KD is located in a very advantages

position. This company is located at Sunabeda in the Koraput

district of Orissa, which is adjacent to the national highway no. 43

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linking Vishakapatnam-Raipur. The nearest railway station is

Koraput station&nearest airport is Vishakapatnam dock, which

is approximately 210km from Sunabeda. The river "kerandi" which

acts as a perennial source for supplying water is flowing in the

northeastern side of HAL Township&a proposal for construction

of a permanent airfield is under progress in the township. The

organization located at Sunabeda in Koraput district, which is

about

139Kms from Vishakapatnam in A.P. and 39Kms from south

to Jeypore in Orissa.

Locational Advantage

The location of the factory has got many advantages. The

hilly area of Koraput District is a high strategic from Defense point

of view. The dense forest provides camouflage of the factory from

Arial view and from this angle an enemy plane may miss the

location of the plant. The Kerandi river acts as a perennial source

of supplying water which in the Northeastern side of HAL KD,

Sunabeda. Water supply is available through out the year.

Excellent power supply is provided by the Orissa State Electricity

board (OSEB), which is having a separate grid for HAL Koraput

Division. The labour force is available at a cheaper ate.

Moreover this factory is adjacent to the NH-43 linking

Vishakapatnam, Raipur. The nearest railway link is Koraput

station, which is 15Kms from Sunabeda, which comes under

Southeastern railway and nearest port is Vishakapatnam that is

approximately 210Kms from Sunabeda. An airfield located at

Jeypore, which is 39Kms from Sunabeda.

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Above all, the atmosphere of Sunabeda is cool and is more or

less pollution free which is an important advantage for location an

aeronautic factory.

These are the requirements of an entrepreneur before

installing an industry. The aero engines plant was set up at

Sunabeda because it is back ward area and if developed it can be

modernized by the establishment of the factory. It was also the

selection of the collaborators and geographical climatic conditions.

The place become a reality with the establishment of the aero

engine factory at Sunabeda and the place has been developed and

meet the needs of our define, as well as the local people and above

all to the country to a greater extent.

Establishment

HAL, KD was established in the year 1964, Management is a

private sector under taking under the ministry of defense,

Government of In1ia. As this organization is registered one, the

Regd. No. is KT-62 (SI. No. 00169).

Raw Materials

The work of HAL, KD is mostly concerned with mechanical

meteorological engineering activities. The main raw materials used

for this purpose are steel, aluminum, manganese etc. are produced

with in the country. However, some materials like alloys are

imported from Russia as well.

Trade Unionism

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There are two-registered unions among which one is the

recognized union& the other is not recognized, existing in this

organization. At present the recognized union is the HAMS with

whom the management negotiates& forms participative forum.

And the other union is HAEA. It is recognized through Check-off

system. At the end of the year there would be election.

Environmental Policy

Sunabeda being remotely located offered a closest

environment to its inmates& posed challenges to a higher

magnitude like creating a convenient&congenial social set up for

the employees.

The HAL, Koraput Division has undertaken plantation drive

that ultimately contributes to environmental protection& also

helps the natural wealth of the state.

Waste Management System Of The Organization

There are seven wastes are to be minimized or removed.

They are motion, delays, transport, defects, overproduction,

overworking&storing.

PRODUCTS MANUFACTURED BY HAL

Indigenous Names Of Hal Products

Sl.No, AIRCRAFT ENGINE INDEGOUS NAME

1 MIG-21FL R-ll BADAL

2 MIG-21 M/MF RII-F2S/F2SK TRISHUL

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3 MIG-21 BIS R-25 VIKRAM

4 MIG-23 MF R-29 RAKSHAK

5 MIG-23 BN R-29B VIJAY

6 MIG-25 R-29B GARUD

7 MIG-27M R-29B BAHADUR

8 MIG-29 RD-33 VAJ

9 GANT ORPHEUS AJEET

10 HF-24 ORPHEUS MARUT

11 HJT-16 VIPER-II KIRAN

12 JAGUAR ADOUR MK-803 SHAMSHER

13 MIKAGE-2000 M-53 VAJRA

14 HS-748 (A VRO) DART-531 CHITRA15 ALLOUTEE ARTOUSTE-IIIBCHE (HELL COPTER)

16 AN-32 SUTLUJ

17 MI-8 PRATAP

18 MI AKBAR

19 HPT-32 PISTON

20 SU-30 AL 31 FP

The following are the products developed and designed by

HAL :

Sl.No. NAME OF THE CRAFT PURPOSE

1 HT TRAINER

2 PUSHPAK TRAINER

3 KRISHAK AIR OBSERV A nON

4 MARUT (HF-24) GROUND ATTACK

5 MARUT (TRAINER) ADVANCED JET TRAINER

6 KIRAN MAKE-II&IA AGRICULTURAL

7 BASANT GROUND ATTACK

8 AJEET ABTRAINER

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9 HPT-32 TRANSONIC JET

10 AJEET TRAINER

QUALITY POLICY

Manufacture&overhaul products to fully meet customers

quality& reliability requirements including functions,

maintains ability&life characteristics with due attention

to economy in production&delivery schedule.

Adherence to approved specification during receipt

manufacture, assembly test & delivery with strict

prevention of defects.

Selection, development, evaluation & monitoring of

suppliers & subcontractors using scientific methods&

extending adequate technical support to them.

Planned& systematic execution of the programme for

familiarizing customers, adequately on proper usage of

the products.

Periodic review for continuous improvement bases on the

feed back of field performance from the customer&their

own experience.

Development of human resource by imparting knowledge

& skill through one concept to all personnel in the

company.

CUSTOMERS

The main customer of the organization of the HAL, KD is

India Air Force. But after the new economic policy was introduced

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Commitment to total quality

Cost and time consciousness

Innovation and creativity

Trust and team spirit

Respect for the individual

Integrity

Vision: - To make HAL a dynamic, vibrant, value based learning

organization with human resources exceptionally skilled, high1y

motivated and committed to meet the current and futurechallenges. This will be driven by core values of the company fully

embedded in the culture of the organization.

OBJECTIVES

The objectives of the company are as follows:

To conduct its business economically and effectively that

it can contribute its due share to the national effort for

achieving a self-reliant and self-generating company.

Serve as an instrument of the National policy to achieve

self-reliance in the design and production of aircraft: and

aeronautical equipment to meet the countries changing

and growing needs with special emphasis on military

requirements.

To develop and maintain an organization which readily

respond and adopt the changing motive of socio-techno

economic relationship and wherein a climate of growing

professional competence self-discipline, mutual

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understanding deep commitment and a sense of

belonging will be fastened and each employee will be

encouraged to grow in accordance with this potential for

the furtherance of the organization goals.

CLASSIFICATION OF EMPLOYEES

The employees are classified according to their status. They

are classified into direct workmen& indirect workmen. All the

employees are skilled. All the employees are paid on time rated

basis. The employees are placed in Scale-l to Scale-IO according to

their status. The total manpower is 3410, out of which 762 are

executives, workmen-2648, direct workmen-I 539, indirect

workmen-II 09, ladies approx-100.

COMPETITORS

These are the indirect competitors because HAL is a supplier

of fighter planes where as these are supplier of passenger planes.

They are -The Boeing, The Lockheed Martin, The DassauIt, and

The Saab Gripen. There are no direct competitors of HAL.

India has signed a $1.75 billion contract to buy 66 Hawk MK

132 Advanced Jet Trainer.

LEADERSHIP STYLE OF THE MANAGEMENT

As it is a public sector enterprise, the leadership style is

democratic in nature. Employees at all levels are being consulted&

suggestions are taken. Long term and short term development

plans are not kept secret.

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TRANSPORTATION

Company's transport is provided for recreation /picnic

purposes to employees welfare fund on payment of nominal rates.

Children of the employees studying in DA V College, Koraput&

school children inside the township are provided free transport to

their schools.

CORPORA TE SOCIAL RESPONSIBILITIES

This Division has adopted 8 surrounding villages for the

socio-economic development in line with company's corporate

social responsibility programme. The villages are -Old Sunabeda,

Jadaguda, Maliguda, Kakigam, Janiguda, Sanabadigam,

Chikapara , Dumriput.

The following facilities are being extended to these villages by the

division-

Complete Medical aid & treatment in HAL hospital.

Besides this special medical camps are organization

periodically in these villages for treatment, surgery, family

planning&child immunization.

Free/confessional education to the children of these

villages in the educational institutions runs by HAL

through Aeronautics Education Society.

For the benefit of the school going children, there is free

distribution of study materials in the schools of the

adopted villages.

Provision of community center.

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Provision of drinking water in the villages through tube

wells or open wells.

Provision of sports activities&cultural activities through

the Division's Sports club, Employees Welfare Fund&

Cultural Association.

Repair or Renovation of all schools building, provision of

toilets in all schools of adopted villages.

Sponsoring of teams in District Level Tournaments&

distribution of game items.

One shop has been allotted to women self help group for

selling their products.

Other initiatives such as blankets&sarees to needy&

poor persons&it continuous every year.

Facilities issue of BPL cards to eligible persons in

coordination with State Government.

Facility payment of old aged pension to eligible

persons in coordination with State Government.

FINANCIAL POSITION

HAL is a profit making public sector unit. The financial status

of the organization for the last 5 years is as follows:

Year Profit (In Lakhs)

2006-07 51.13

2007-08 58.64

2008-09 67.64

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2009-10 81.00

2010-11 126.30

STANDING ORDER IN HAL, KD

HAL, KD has a codified standing order, which is in with the

Model Standing Orders under the industrial Employment

(Standing Order) Act 1946.

The certifying officer certifies the starring orders after

approval of the draft by the trade union&workmen. The standing

orders came in to operation after 30 days from the date of

certification standing orders finally certified shall not be amended

or modified until the expiry of 6 months from the date on which

the standing orders or last modification carne into existence. The

standing orders or the amendment is only liable for modification if

there is an agreement (bipartite) between the employer& the

workmen (or trade union)

The standing orders of H.A.L., KD canteen all the matterslisted in the schedule of the act such as:

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SOURCES OF FUNDS APPLICATION OF FUND

Funds from operation Loss from operations

Issue of share capital Redemption of share capital

Issue of debenture Redemption of debentures

Long term borrowing Repayment of loans

Sale of asset /investment Purchase of asset/investment

Non-operating income Payment of dividend


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The application of standing orders.

Definitions.

Classification of workmen.

Identification badge.

Entry&exit.

Search.

Working hours.

Publication of holidays&paid days.

Publication of wage rates&classification of jobs.

Shift working.

Attendance&late coming.

Duties&obligations of workmen during working hours;

prohibition of political party.

Leave.

Festival holidays.

Payment of wages/salaries.

Stoppage of work.

Essential services.

Termination of employment.

Transfers.

Holding office of profit elsewhere.

Forwarding of application.

Medical.

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Safety measures.

Complaints&grievances.

Acts of misconducts.

o Minor misdemeanors.

o Major misdemeanors.

Penalties for misconduct.

Procedure for dealing cases.

Special procedure.

Service certificate.

Inventions&patents.

Retirement.

Liability of manager.

Exhibition of standing orders.

Proof of age or date of birth.

Sufficiency of service of notice, etc.

Loss of company property.

Processions.

Accidents.

Interpretation of standing order.

Saving.

WELFARE MEASURES

Statutory Welfare Measure

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Some of the statutory welfare measure is as follows:

Cleanliness.

Lighting&

Ventilation.

Disposal of wastes, effluents, dust&fumes.

Overcrowding.

Drinking water.

Latrines, urinals&spittoon.

Facilities for washing, storing&

drying cloths.

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Non-Statutory Welfare Measure

Some of the non-statutory welfare are as follows:

Medical facilities

Housing

Educational facilities

Welfare fund (RA.E.W.F)

Sports facilities

Benevolent fund. (RA.E.B.F)

Co-operation stores. (H.A.E.C.S)

Social Security Measures

Some of the social security measures are as follows:

Workmen Compensation Benefit.

Maternity Benefit Act.1961.

Payment of Maternity Benefit

incase of death

The Payment of Gratuity Act 1972

Pension Scheme

Provident Fund

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Present status

A long term agreement with M/sPratt&Whitney Corp.

Canadahave been signed for export of critical rotating components

HAL has been accorded"NAVARATNAstatusbythe government.

FUTURE EXPANSION PROGRAMME

Aligning with the increasing demands and tough global

competition HAL has also decided to put a foot forward towards

making indigenous Light Combat Helicopter; a dedicated attack

helicopter& 50/1OO-seater air bus. The more sophisticated

edition of AL31FP is in the pipeline.

WAGE OR PAY STRUCTURE OF EMPLOYEES

WORKMEN

SCALE SCALE OF PAY (RS)

1 2900-45-3125-50-4875

2/A 3000-55-3275-60-5735

3 3200-65- 3525- 7 5-6150

4/B 3650-80-4050-90-6660

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5 3950-95-4425-105-

6/C 4100-110-4650-120-

7/D 4500-130-5150-140-

8/E 4700-150-5450-160-

9/F 5200-170-6050-180-

10 6100-185-7025-195-


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EXECUTIVES

HRD PHILOSOPHY OF HAL. KORAPUT DIVISION

Koraput Division has been doing pioneering work in the field

of HRD. Not withstanding its remote location, HAL, KD, has been

trendsetter in the field& has successfully implemented various

innovation HRD interventions over the year. For instance, theprogramme on coping with the post retirement life for both

executives & non-executives. The executive effectiveness

programme designed exclusively for executive whose performance

has shown a decline. Planned & systematic execution of

programme for familiarizing customers, adequately on proper usage

of their products. Periodic review for continuous improvement

based on the feed back of field performance from the customer&

MBA-09

Grade Scale of payGrade EO 13500-23000 .

Grade E1 17500-30000

Grade E2 22000-34000

Grade E3 26500-37000

Grade E4 30500-40000

Grade E5 34000-44000

Grade E6 37000-47100

Grade E7 40000-52500

Grade E8 45000-58200

Grade E9 52000-64000

DIRECTOR 75000 (Fixed)

CMD 80000 (Fixed)


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their experience. Development of human resource by imparting

knowledge& skill through one concept to all personnel in the

company.

LINE&STAFF FUNCTIONAL RELATIONSHIPS

The Industrial organization commonly divides the

management functions into line & staff relations. The line

executives are those who directly control subordinates in

production lines while staff executive are those who act in advisory

or functional relationship to other executives. An officer has direct

control over the staff in his own department&in relation to other

department his work is advisory. According to the organization

chart of HAL, KD, it has following departments. The function of the

department is directly related to production staff department is as

follows:

Personnel Department.

Industrial Relations Department.

Legal Department.

Security Department.

Town Administration Department.

Transport Department.

Medical Department.

Besides these, this division has other department such as:

Central laboratory Department.

Civil Engineering Department.

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Commercial Department.

Computer Service Department.

Customer Service Department.

Design Liaison&Indigenization.

Diversification&Exports.

Forge&Foundry.

Manufacturing Division.

Overhaul Shop.

Plant Engineering Department.

Quality Control Department.

System Audit.

Tool Engineering Department.

COMMUNICATION REVOLUTION

Catching up with the modern times, HAL took a big leap to

install tools of corporate communications. With a view to

streamline the flow of information from the company a state of the

art corporate communications department started functioning

officially on June 4, 2006.

Three months into its launch in the Delhi Wing of cropcom

was set up in mare cord time of seven days. With the sole aim of

empowering people through the simple yet powerful channels of

information& to build a corporate identity a series of measures

are being initiated by corpcom for the fusty time in the history of

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any PSU in India,& in house weekly news paper named "Minsk

Square Matters" was launched by HAL.

A world-class publication, set to act as HAL's official

mouthpiece is also on the anvil.

ACCOLADES&ACHIEVEMENTS

HALhaswonseveralInternational&NationalAwardsfc

achievementsinR&D,Technology,ManagerialPerformance

Exports,EnergyConservation,QualityandFulfillmentofSodsResponsibilities.HALwasawardedthe"INTERNATIONALGOLD

MEDALAWARDorCorporateAchievementinQualityandEfficiency

aheInternationalSummit(Global Rating Leaders 2003),London,

(UJ)yM/sGlobalRating,UKinconjunctionwiththeInternational

informationandMarketingCentre(IIMC).HALwaspresentedthe

International- "ARCHOFEUROPE\wardinGoldCategoryin

recognitionforitscommitmenttoQualityleadership,Technology

andInnovation.AttheNationallevel,HALwonthe"GOLDTROPHY"

ofexcellenceinPublicSectorManagement,institutedbythe

StandingConferenceofPublicEnterprises(SCOPE).On17thofJuly

'2006HALwasdeclaredranking45thamongthe00defense

companiesoftheworldasreleasedbyUS-basesdefensenews.The

Companyscalednewheightsinthefinancialyear2004-2005a

turnoverofRs.4534CroresandexportoverRs.150.05crores.HAL

hasbeensuccessfulinnumerousR &0programmesdevelopment

bothDefenseandCivilAviationsectors.HALhasmadesubstantial

progressinitscurrentprojects:

Dhruv,whichisAdvancedLightHelicopter(ALH)

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inexportinmorethan30countries,havingdemonstrateditsquality

andpricecompetitiveness.

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CHAPTER-III

STRUCTURE

AND

FUNCTIONS

OF

THE

PERSONNEL

DEPARTMENT

INTRODUCTION

The duties & responsibilities of the personnel department to help

the management regulate & administer the employment of human

resourse effectively. The personnel department looks-after recruitment,

selection, placement, induction, performance appraisal, promotion &

transfer of its personnel. The Personnel Department is headed by the

Genera Manager. There is a Deputy Personnel Manager, Personnel Office

(Recruitment) & an Assistant Personnel Officer (Statistical Policy) to help

the chief Manager. Below the ranks of the Deputy Personnel Manager,

there is an Assistant Personnel Officer 8 subordinate to him are two

supervisors. Similarly, two Chief Supervisors are placed under the

personnel officer (Recruitment) to help the management under scale 10.

There; one senior Assistant Supervisor to assist the Assistant Personnel

Officer(Statistical & Policy) under scale 9. The structure of personnel

deptt. is given in figure-2.

FUNCTIONS OF PERSONNEL DEPARTMENT

The various sections of the personnel department who has the

respective function are as follows:

ESTABLISHMENT SECTION:

The personnel officer of the establishment department ha certain

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functions such as:

Maintenance of the personnel records of all officers in Grade-

I. And above the records of the workmen is Grade-F & below.

Processing of application for the merit scholarship also for

the outside employment. (3) Keeping liaison with the District

Policy Authorities regarding their stay & movement. (4)

Arranging release of employees for training course in India &

Abroad.

STATISTICS SECTION:

The personnel officer of the statistics section deals with the

following functions:

To maintain the record regarding manpower in MiG

information system format for submission to corporate office.

To provide certificate/watches to the eligible employee on

their completion of 10/15/25 years of services.

To send performance appraisal report to officers 0 probation.

Arranging pre- retirement medical checkup of the section.

POLICY SECTION:

The personnel officer of this section deals with the policy matter

regarding service conditions of employees, correspondence with the MD's

office/corporate office seeking various classification on rules &

regulation received from the corporate office. It also deals with personnel

bulletin, personnel memorandum 8 circular relating to various rules &

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regulations affecting the service conditions of the employees.

RECRUITMENT:

The sources of manpower supply are many & varied & the

organization must know what & where they are, in order to fill up their

personnel needs. There are varieties of sources of recruitment, but in

H.A.L, KD, It fills up its various vacancies with the help of following the

sources.

Employment Exchange

Local press.

Campus Recruitment.

Recruitment of dependent of the deceased employees.

Recruitment of land affected persons.

Recruitment of distinguished sportsman.

However, presently the recruitment has stopped due to the surplus

manpower. Voluntary retirement scheme was operation for the few years

back which has also been stopped s a company has been able to reduce

the workmen to considerable extent especially the dead wood workers

were given the first preference to the option for the VRS.A 'resent, only

the professional owing skills of managerial engineers are given preference

for recruitment.

DISCIPLINARY ACTION:

Disciplinary action means taking necessary action against anindividual when the departs from the code of conduct observed by the

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organization, the main function of the disciplinary section is:

To frame charge sheet.

Examination of various report from department on

disciplinary matters.

Receiving explanation & putting up notes to higher

authorities for decision.

HUMAN RESOURCE DEVELOPMENT CELLS:

The manager (P & D) performs' the HRD functions which are as

follows:

Monitoring the performance appraisal system, -

Career planning & succession planning of officers,

Job rotation,

Sponsorship of officers to premier engineering management

institutes,

Grant of study leave,

Performance feed back to Officers,

Maintenance of computerized HRD database.

Conduct of periodic surveys.

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Training of P.G. students in plant units.

PERSONNEL POLICY:

The company has well formulated & declared personnel policy. The

personnel policy is formulated at the corporate level. The policy of the

company is very much necessary essential to guide & lead. If there is no

policy, there will be chaos. Management finds maturity over its decision

through personnel policy. Personnel policy relates to the overall business

needs through, recruitment & training. Thus, according 0 the needs, the

organization gets good people & acquires them according to their skills &

experience.

WAGE AND SALARY ADMINSTRATION:

H.A.L, KD, it has 12 divisions at different places. Wages are fixed at

the corporate level i.e. head office at Bangalore he negotiation betweenthe representatives of different recognized Trade Unions of the division

(known as coordinate committee) & the representatives of management.

The wage structure is revised from time to time in such settlement held

at intervals of 4 to 5 years. It is the corporate level, that has to decide

whether all individuals in the job of the employee.

INDUSTRIAL RELATION DEPARTMENT:

The industrial relations department of this division functions

harmoniously. There is one recognized union call* HAL. There has been

no loss of man hour due to strikes lockouts or no such practice during

last 5 years. Consequently or its accident free record the division has

been receive National Safety Schedule".

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Industrial relations department has started since the inception of

the plant. It is an independent department. Structure of The Industrial

Relations Department has been (described below in figure-3)

Brief on working of Industrial Relations Department in

HINDUSTAN AERONAUTICS LIMITED

Industrial Relations department functions with the objective of

maintaining a constant and cordial Industrial Relations climate for

facilitating un-interrupted continuance of the process of main production

activities. With this objective in view the department deals with

implementation of main provisions of labour laws and pursuance of

various statutory and non-statutory welfare activities.

In this process the department interacts with the officers union

and workers union. The department also deals with public relations

function of the division which besides doing various image building

activities takes care of visits of outsiders to the division, public action of

quarterly house magazine press releases etc. The department also brings

up to the notice of higher management about various press reports

published in the leading news papers where in HAL is focused.

As a part of welfare/ Cultural activities the department coordinates

the various activities of carious voluntary and cultural organizations

existing in Sunabeda via-Hindustan Aeronautics Employees Welfare

Fund, Hindustan Aeronautics Consumers Co-op Stores Ltd., Credit

Society Ltd. Etc.

Besides thirteen religious, linguistic and cultural association.

The printing press of the Division is functioning in the Industrial

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Relations Department.

Printing of various proformas/formats in day to use in the division

is done in the press. It also caters to the duplicating needs of stencil,

Type-outs of all the offices/Dept. of the entire factory. The printing press

also binds the booklet etc. thus printed as per necessity.

Workers Canteen Caters Tea/Snacks services six times in a day of

24hrs. in all the departments and shops at 25 service points. It provides

daily lunch to- 500 employees approx and to 400 contract laborers (only

issuing of rations)

It also provides dinner to 200 employees daily. In order to cater to

these needs workers canteen works round the clock on shift basis.' Since

canteen is the most vulnerable point for eruption of industrial relation

problem, all the activities are carried on with care, caution and adequate

planning.

Executive canteen provides tea services in the Administrative

Building. It also provides lunch to about 100 executives daily.

Industrial Relations department deals with establishment and

administrative matters pertaining to 383 PF Alc holder contract labourers

deployed in the division through seven labour supply contractors. The

department exercises control over sanctioned man days accorded every

quarter.

All the bills submitted by the contractors through user

departments are checked/verified and concurred by Industrial Relations

Department and sent to Bills Payable section for payment.

Different statistics regarding these contract labourers are

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maintained in the dept. and sent to different authorities.

Brief on the functions of Industrial Relations Department.

Implementation of provisions of labour laws.

Interaction with labour Authorities.

Interaction with recognized trade union and officers

association. At present two Trade unions namely (i) Hindustan

Aeronautics Employees Association (HAEA) affiliated to INTUC

and (ii) Hindustan Aeronautics Mazdoor Sangh are existing in

the Division. Based on result of the last referendum held by the

appropriate Govt. The Hindustan Aeronautics Mazdoor Sangh

(HAMS) is at present the recognized one. The date of next

referendum is yet to be notified.

Nomination of members to various voluntary organizations viz-

Educational Society Co-op societies sports club, benevolent

fund, welfare fund, officers club etc. and extension of necessary

facilities to them.

Submission of statutory reports and returns to concerned

authorities.

PFAlcholder contract labour establishment who are working in

the division prior to 1982.

Public Relations:

o Issuing of press releases arranging of press conferences

putting of news papers cuttings relating to HAL to higher

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management including translation of vernacular ones.

o Publication of House magazines "Aeroflash".

o Conducting of cultural functions on the occasions of

National festivals and VIP Visits in co-ordination with

welfare fund and educational Institutions.

o Conducting of National Festivals viz. Republic day,

Independence Day etc. and other functions as per

corporate office instructions, via- Anti-terrorism days,

Martyr's day, Auami-Ekta Divas.

o Formation of puja committee annually and enabling

them to conduct "Sarvamin" pujas in the township. They

are" Sital Sashti", " Ratha Yatra", "Janmastami",

"Dussehera" and "Shyama Puja".

Interaction with recognized linguistic cultural Associations

including extension of facilities to them for their programmes,

functions.

Administration of statutory and non statutory viz.

(a)Canteens (Statutory):

Workers canteen & executive canteen separately exist in the division.

While the canteen is located near the main gate, the executive canteen

is located in the upstairs of IR Deptt. In the extension block of the

Administrative building. Both the canteens have been out sourced

since 151August 2000 to a single contractor Sri. A V Appa Rao whose

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term has already expired and is on extension. The fresh tendering

process for a new party is under process.

The system of issue of Sodexho meal voucher coupons to

employees in lieu of canteen subsidy also exists in the division. As on

date 542 employees are availing the same.

(b) Extension of individual facilities to employees for social functions i.e,

marriage, birthdays, puja etc by allotting Kalyan Mandap, primary

school premises and provisions of dead body truck in case of death of

employee&family members.

(c) Issuing of salvaged empty 200 Itr. Capacity barrels to employees to

storing water.

(d) Issuing of bus passes to sons&daughters of employees for going to

college at Koraput.

(e) Sanctioning of bi-cycle advances.

(f) Granting of permission for further studies.

(g)Administrative approval referred medical cases to outside hospitals

and allied correspondences.

Printing press:

A printing press is functioning in the division under IR Deptt. the

press is a traditional one and printing of various formats, invitation

cards for official functions, booklets, programme cards on VIP visits etc

of urgent nature are only undertaken in the press.

Innovative welfare measures: Peripheral Development.

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The division has adopted 8 surrounding villages for their overall

development. Since most of them were displaced due to establishment of

the division. The inhabitants of the villages get complete medical aid and

treatment in the company's hospital. Special medical camps are

organized periodically for treatment, surgery, family planning& child

immunization. Beside study materials i.e. note books, pencils, erases etc

are supplied once in a year to UP schools of adopted villages. Rural

sports are conducted amongst youths of the villagers once in a year.

Further the division has constructed a Community centre in one of the

villages and handed over to the Sunabeda NAC for the benefits of the

villages.

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CHAPTER-IV

TRADE UNION: A THEORETICAL FRAMEWORK

INTRODUCTION:

In India Trade Union is a response to the challenge thrown by the

modern factory system. The economic activity of man which developed

gradually from the hunting, fishing an pastoral mode of life, through the

agricultural,demostic an handicrafts stage, to the modern work shop and

factory system created along with this development a number of

problems some of which are the recognition of private property, division

of society into two distinct classes of divergent interests, control of

industry and consequently of the means of production in the hand of few

entrepreneurs, emergence of industrial proletariats, unplanned growth of

cities and increasing unemployment arising out of technologies" changes,

cutting down the wages below the subsistence level, exploitation of

female and juvenile workers and intensification of labour. So the birth of

labour movement and later of the Trade Union Movement can be traced

to the attempts of certain social workers.

In the modern day, the relationship between the employer and

employees has been lost and their relations become very cold. Today in

an industrial life the wage earners stand isolated in a very weak

bargaining position with their employers, because labour has certain

peculiarities. So labour is the most perishable of commodity dependence

and immobility. It has no reserve power. Hence workers are unable to

bargain with the employers on -fair terms and deserve for higher profits.

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Individually, the worker does not know his importance and value in the

market and hence he is not in a position to place himself accurately with

his employers. Hence

he Trade Union came into existence; their growth and function are

depended on the political, economic and intellectual development in a

country.

So Trade Unions are important constituents of the industrial relation

system in any society that permit decentralized decision making and

group interest to shape the work rules.

TRADE UNION PRACTICE AT HAL, KORAPUT DIVISION

HISTORY OF TRADE UNION IN H.A. L, KORAPUT

DIVISION:

H.A.L.KD came into existence in the year 1964 by way getting up

of its project office. The first batch mechanic trained at HAL, Bangalore

for Koraput division have join he division in the year 1966,After their

joining the number of workmen have substantially increased. They felt

the need in having a Trade Union to voice their immediate grievancematters of heal the welfare etc. As an outcome of such feeling the Trade

Union titled "Hindustan Aeronautics Employees

association'(H.A.E,A)came in to existence and got register ! N the year

1966, registration nO.514/66. The original by-laws of H.A.E.A did not

provide for affiliation to any major political party and as such the said

union remained none affiliated to any political party till the end of May

1966. as a unique feature of H.A.E.A and was appreciated by many

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people, since due to non-affiliation itcould serve the best interest of the

working class without political interference This single union remained

in power in H .A. L, KD for more than three decades i.e, from 1966 till

the end of may 1996.

As the country experienced the wave of BJP after 1990,in the

same way some of the members of the working class in H.A. L felt the

need of bringing another union into power Such disgruntled members

formed another union titled "Hindustan Aeronautics Mazdoor Sangh

(HAM.S)'affi1iated to BMS which turn owes its originating from

BJP political party. The said union was registered with the appropriate

registering authority wide registration NO.57/92.However,HAEA

continue to remain in power being the recognized union by HAL

management till the end of may 1996 in the absence of definite rules

regarding verification of union membership for the purpose of according

recognition. The Government of Orissa in order to overcome suchdifficulty in recognition has formulated rules titled Verification of

Membership and Recognition of Trade Unions Rules, 1994.'Based on the

repeated representations made by HAMS, Labour-Commissioner-Cum

Secretary Implementation and Evaluation officer, Orissa Bhubaneswar

in September 1995 have appointed Returning officer and polling officers

for verification of membership of the two unions for the purpose of

recognition by the employer viz. HAL, KD. The process of verification

continued till May 1996 and the election amongst the workmen was held

on 28th may 1996 for the first time in the division. The Labor

Commissioner-Cum-State Implementation and Evaluation officer,

Orissa, Bhubaneswar has directed the General Manager HAL, KD to

recognize HAMS based on number of votes secured by them in the said

election. They remained power for the next two years as per provisions of

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t he aforesaid rule.

On completion of the said tenure of two years. Verification of

membership through secret ballot as per the provision of the aforesaid

rules was again held on 8th June 1998.This time also HAMS won the

election by securing 56.731 votes in there favors. Accordingly HAMS was

recognized it remained in power till the end of June 2000.

The election was held on 17th may 2000; the HAEA secured more

number of votes (54-71%) then HAMS. Accordingly it was recognized by

the management of HAL, KD and came in to power after a break of four

years.

Thus as on date of this project being made, HAEA is the

recognized union of HAL, KD. HAMS being affiliated to Bipeds major

political support from the said party. In order to match the saidchallenge in equal terms, late, HAEA has affiliated itself with INTUC

which owes 11 origination to the congress party.

The HAEA will remain in power for 3 years. Since "Verification of

Membership and Recognition of Trade Union Rules, 1994' has been

amended making such provision (Le, t h tenure of recognition will

remain in force for 3 years instead of 2 years) .

SALIENT FEATURE OF HAEA

As per bye-laws, the HAEA possesses the following officer bearers:

Sl.No. Office Bearers Numbers

1 President 1

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2 Working President 1

3 Vice-President 5

4 General Secretary 1

5 Secretary 6

6 Treasurer 1

The above 17 office bearers and 40 nos. of executivemembers constitute the Executive Body of HAEA.

They are elected through secret ballot method. The term office is

two years. The returning officer conducts the election who is nominated

by the President or the President himself acts as a returning officer if he

is not contesting. The union subscription is deducted from members

through payroll from their monthly salary bills. So the recognize union

enjoys the check-off system. The subscription rate is Rs. 5 per month.

The union account is maintained by its treasurer. And it is audited by

the registered auditors. The mount received byway of subscription is

utilized in all types of union activities. The accounts are always made

available for verification by the members. The HAEA makes demands

based on the resolution of the Executive Body Meeting and General Body

Meeting and all the policy and resolutions re implemented by the office

bearers of HAEA.

SALIENT FEATURES OF HAMS

As per bye-laws, the HAMS possess the following officer bearers.

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Sl.No Office Bearers Numbers

1 President 1

2 Vice-President 7

3 General Secretary 1

4 Secretary 6

5 Treasurer 1

6 Office secretary 1

The above 14 office bearers of 37 nos. of executive committee

members constitute the executive body of HAMS.

Unlike HAEA, these office bearers of HAMS are unanimously

selected in their annual conference/General Body Meeting. Term of

office is for one year. The organizing secretary, Southern Division of

Orissa acts as a returning officer and conducts the election.

Since it is not a recognized union. The subscription collected from

the members by concerned executive committee members on rendering

proper receipts. The rate of subscription is RS.5 per month.

On the whole, the unions activities are controlled at guided as per

there central direction. Besides, the local issues are taken up as per the

resolutions adopted in 11 executive Committee/General Body Meetings.

ANALYSIS OF RADE UNION ACTIVITES IN H.A.L, KD

In the H.A. L, KD all the welfare facilities (both statutory/non-

statutory) are extended by the management all areas and the recognized

unions support the management all such activities. The office bearers of

the reorganization union negotiate with the management. At the

division level, the negotiation process starts with discussions across the

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In this study it is limited to Industrial dispute only.

Industrial Dispute Act 1947 defines, "industrial Dispute means

any dispute or difference between employers and employees or between

employers and workmen or between workmen andworkmen which is

connected with the employment or not employment or terms of

employment or the conditions of labour if any person.

Industrial Dispute means disputes relating to industry. There are

mainly two types of disputes.

1.Disputes that arises out of dead locks in the negotiations for

a collective agreement popularly known as Interest Dispute".

2.Dispute that arises from day to day workers

grievances,popular1y known as "Grievance Dispute."

There are various factors which are responsible for raising industrial

disputes. These factors are:

Industrial factor.

Management attitude towards labour.

Government

Machineries.

Other causes including political factor.

Whatever may be the reasons of industrial dispute it should be

settled at the initial level only? The impact of industrial dispute is

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very far reaching. They disturb the economic, political and social life

of a country. Industrial dispute are not less- than war. As it was the

causalities and sufferings do not remain confined to soldiers fighting

in the front. Similarly in case of industrial disputes adverse effect

doesn't remain confined to the employees and employer of the

industry. Though it starts locally. A war has every possibility of

engulfing the entire humanity; similarly the industrial dispute affects

the entire community. Indus trial dispute in basic Industries is like

big stone thrown in to a pond causing ever widening wave: till the

entire pond is engulfed. Naturally the workers, the employers, the

community and the nations suffer more or less the industrial dispute

results in huge wastage of man-day and hamper the production. The

workers are also badly affected more than one ways. They loss wages

for striking time. For meeting day to day expenses debts have to be

incurred, employment is lost and future prospects becoming down,

disturbing the family life, personal hard ship mental tension developand persist. The unsuccessful strikes leads to financial losses make

workers disappointed and shake their confidence in the trade union.

The employers also suffers heavy losses not only through

stoppage of production, reduction in sales and loss of crushing down

the strikes, engaging strike breakers and black legs, maintaining a

police force and guards, organizing counter demonstration,

processions and meetings of blacklegs or protecting plant and

machinery and for undertaking publicity, propaganda. Besides these

loss of mental peace respect and status in the society is beyond

estimation terms of money.

The Industrial disputes create law and order problem increased

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vigilance on the part of state, causing additional expenditure.

DISPUTE SETTLEMENT METHODS

Dispute is one of the aspects of Industrial Relation HAL as built up its

own tradition in setting of disputes relation an industry. It has developed

its own setting methods. The disputes are settled in three levels.

(1) DISPUTE SETTLEMENT AT THE CORPORATE OFFICE:

There are issues which involves implication of the corporate

level which are usually referred to the corporate office of Banglore

such major issues which have wide implications are sent to the

corporate office for fu rather action e.g. wage revision is done in the

corporate official. In case of new problem the gravity of it is assessed

by the divisional management and then either in it is referred he

head office or reserved for settlement of the unit level itself.

(2) DISPUTE SETTLEMENT AT THE 0 IV IS IONA L LE VEL:

Settlement by agreement - Many of the major problems is

settled by a formal agreement with recognized union. Since there is

only one recognized union in this division getting in to an agreement is

not different across the negotiation table.

(3) UN I LATERAL DIVISIONS AND ACHIEVEMENT BYTHE

MANAGEMENT

This type of settlement is adopted for minor demand: raised by

the union. If the management is convinced about the union's points of

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review then intakes decision unilaterally. This doesn't review any type

of agreement between the management and union. Most of the minor

facilities have been extended to the workman through this kind of

method.

(4) SHOP COUNCIL AGREEMENT:

Shop council was established in 1976 in this division for

ensuring better worker's participation in management. By-today it

doesn't exist.

(5) OTHER METHODS:

Issues are also settled at intervention of the head office, even it is

not a regular pattern of settlement it is carried out where the head office

feels that it mediation if required.

Industrial Relation problems which results in law an order

problem where government feels its intervention is highly essential then

it is settled in such manner.

The Grievance procedure may also be described as system for

handling individual problems.

These are the various stages of which the dispute is settled.

To settle industrial disputes both management as well as workers

involves settling it. In the organization there are various

methods/committees where workers can participate. Out of this

collective bargaining one of the methods.

The researcher has observed that in this organization there are

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minimum industrial disputes.

In its life time on two strikes have occurred first in the year 1981-

82 and another in the year 1988.lt was preceded by lockouts. Except

these two disputes these has been no major disputes in the

organization.

IMPLEMENTATION OF AGREEMENTS

After collective bargaining both party reach to agreement where

the negotiation takes place. The agreement plant level is done by the

recognized union. In the organization the recognized union is

Hindustan Aeronautics Majdoor Sangh. After completion of the

negotiation. The agreements are implemented by the management.

Industrial Peace and harmony has remained at its best H.A.L, KD,

since its inception. The continuous appraisal of the industrial relations

climate in H.A.L.KD shows that very cordial and harmonious industrial

relations are maintained in the division since its inception till date.

During all these years, the division has experienced two strikes and

one lock out, except, the same there has not been any instance of

breaking down of industrial peace (Relations Machinery).The details of

the above two strikes and one lock-out are as follows:

(1) The first strike occurred in the division in 1997. Its duration

was for 7 days. The immediate cause of the strike was improper water

supply to the township maintained by this company. The strike was

resolved with the signing of tripartite agreement after discussion

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across the table between the both the parties and the conciliation

officer. Approximately 10,500 man days were last during the said

strike.

(2) The second strike occurred in the division in 28th December

1980 and continued up to 19th March 1981 for 81 days. The strike

commenced at the cal! Of the ALHALTUCC as protest demanding

priority with the settlement of Bangalore based public sector

understanding BHEL. Since the wage settlement signed by the HAL

prior to it was having a clause providing scope that HAL will reconsider

giving increase wage provided a similar public sector undertaking

signing wage settlement on a later date gives increase of wage to it

worker, Approximately 1,53,9000 man days were lost by the division.

(3) The division experienced one lock-out for 11 days fro 13th

December 1988 to 23rd December 1988.The employees of the shift ke.

Once at the commencement of the shift. Next after lunch break and at

the end of the shift. The standing order provides for late entry into the

factory only at the commencement of the shift i.e, within 15 minutes of

commencement of the shift and with in one hour with the permission

of the departmental head. It was observed by the management that

most of the employees entered the factor late by more than 15 minutes

after lunch breaks. A circular was issued by the management that both

the entry gates will be closed after 5 minutes of closer of lunch break.

This caused wide spread resentment among the employees. The started

tool down strike from 8th December 1988 and the employees planned

to take lunch in the subsidized canteen managed by HAL emeses on

12th August 1988.The coupons for lunch were sold in huge quantity.

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During lunch hour employee: in large gathered in the canteen and

started throwing food I plates, utensils, furniture, etc. and abused the

canteen staff. There was total lawlessness in the canteen. The senior

officer including the Additional General Managers, Industrial Relations

Managers rushed to the canteen to pacify the unruly mob and control

the situation. The situation worsened and the Additional General

Managers, Senior Administrative Manager; and other senior officers

were manhandled. It became impossible to restore normalcy in the

factory. As a result of such deplorable and violent situation

management was concerned to declare lockout with effect from 13th

December 1998.

DISCIPLINARY PROCEDURE IN HAL

HAL CONSUCT DISCIPLINE RULES

"Conduct Rules" and "Disciplinary action rules" applicable 0 the

employees in the company not covered by the Industrial employment

(Standing Orders) Act, were introduced in the company during the

year 1967. These rules as amended from time to time continued in

operation till the year 1984. PUNISHMENT:

The following punishments may for good and sufficient reasons be

imposed on an officer by the competent authorities empowered to

impose such punishments under this rules.

(1) MINOR PENAL/TIES

Censure

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Reversion of an officer appointed on probation to any grade

or post to his previous grade or post or post during or at the

end of the period of probation in accordance with the terms

of his appointment or the rules and orders governing such

probationary,

(b) TERMINATION OF THE SERVICES

Of an officer appointed on probation during or at the' end of

the period of his probation in accordance with the terms

and conditions of his appointment or the rules and orders

governing such probation or,

Of a temporary officer in accordance with the provision of

his appointment, or,

Of an Officer employed under a contracting accordance

Of an officer as a result of retirement/premature retirement.

PROCEDURE FOR DISCIPLINARY ACTION:

Where disciplinary action is to be taken against an officer under

Rule-11 the following procedure will be followed,

Investigation,

Charge sheet.

Enquiry.

Witness,

Common proceedings,

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Final statement.

Report to the enquiry committee,

Order by competent authority,

General

CASE STUDIES OF DISCIPLINARY ACTION

Disciplinary Action is to be taken as corrective measure against

delinquents. Timely action will stream Line the activities of all

concerned and build up moral inside any industry. Such typical cases

of discipline are given below.

Case Number:

A case study relating to proxy punching of cards. An employee I x I

proxy punched the time card of another employee thereafter punchedhis own time card. At that time the other employee was not present.

Deputy Manager of security and vigilance Department 'Proposed to

issue charge sheet on 28/03/95 to the delinquent employee stating

that "you were caught by vigilance staff while proxy punching the card

and therefore you are called upon to explain in writing the aforesaid

misconduct with days of charge sheet."

In his explanation the worker has derived the charge against him.

The past record was without blemish. Deputy General Manager ordered

to conduct enquiry and consider another Deputy Manager (Personnel

Department) to be enquire officer. Then the person concerned wrote an

application he personnel department to go through his past 20 year

record.

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The personnel manager was not satisfied with his explanation

that it has been decided to constitute and fixed the time of enquiry.

The Deputy Manager again sent a letter to the delinquent employee to

choose the co-workman, wit ness before the date of enquiry, sent

another better shop floor to free the witness of delinquent employee for

attending domestic enquiry.

The enquiry proceeding started on the first day proceeding i.e.,

5.6.95 following members were present i.e., enquiry officer,

management representative, charge sheet employee and co workman.

Management representative then gave explanation. The co-workman

was cross examined. T he management witness have also cross

examined by co-workman.

At last deputy manager gave his conclusion that the delinquent

employee is guilty of the charge of deliberate proxy punching of time

card of other employee. It may also to mention that the delinquentadopted delivery tactics to prolong the enquiry which resulted delay in

completing proceedings. The personnel manager then sent a letter to

the delinquent that, "taking in to account considering gravity of

misconduct proved your past record of service has ordered that the

punishment i.e., RS.50/- be imposed

COLLECTIVE BARGAINING: A STUDY IN H.A.L., KD

INTRODUCTION

Negotiation about working condition and terms of employment

between a group of employers on one hand and one or mo

representative of workers organization on the other is known as

collective bargaining.

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According to the Encyclopedia of Social Science, "Collective

Bargaining is a process of discussion and negotiation between two

parties, one or both of whom is a group of persons acting in concert.

The resulting bargaining is an understanding as the terms and

conditions under which a continuing service to be performed. Mo re

specifically collective bargaining is procedure by which employers and a

group of employees a group on the conditions of work"

In short it can be said that it is a technique adopted the

organizations of workers and employers collectively resolve their

existing or future differences with or without the assistance of third

party. Its ultimate aim is to reach some settlement acceptable to both

the parties involved labour management relations, although each of

them may try imposing its own terms upon the other through pressure

tactics and negotiations. The Assistance Administrative Manager head

this section and he is in charge to conduct bargaining session with

trade union.

POLICY OF H.A. L REGARDING PROCESS OF

COLLECTIVE BARGAINING ADOPTED IN HAL, KD

It was found from the practice that the following processes of

collective bargaining are adopted in H.A.L, K D.

(1) AGENDA OF DEMANDS:

It starts with the agenda of demands from the side of the Trade

Union; the Industrial Relation Departments scrutinized the demands

and try to resolve/eliminate the demands which can be solved by

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them.

(2) CHARTER OF DEMANDS:

After scrutinizing the demands, the charter of demands are jot

out, keeping the said policy in view.

(3) DATE AND TIME AND PLACE OF BARGAINING:

Management fixes the date, time and place of bargaining anddecides the negotiation team for bargaining.

(4)COMPOSITION OF NEGOTIATION TEAM:

HAL is not hardly a permanent negotiation team, there parity in

the side of both teams, the teams are composed according to the

nature of issue discussed. From union sit more or less the key officebearers of the union representatives. From the management side top

management people are the bargaining agent, assisted by supporting

departments and advised by industrial relations departments whoever

required.

(5) BARGAINING:

The bargaining is carried out by demand from one side and

counter from the other side

(6)SETTLEMENT:

When both the parties agrees, a settlement is reached is signed by

the chairman and by both parties. The settlement s valid for a

particular period and no party can alter the agreement without the

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approval of other party.

The researcher has observed that the union is headed by literate

and efficient persons. The trade union leaders and management are

equally strong so far is collective bargaining s concerned, this creates a

healthy atmosphere for collective bargaining. Further -the management

of HAL and its trade union not only sign the collective bargaining in

words but also fulfill them in deals.' The researcher is of view that the

collective bargaining in HAL is quite successful.

WORKER'S PARTICIPATION IN MANAGEMENT:

The term participation has different meanings for different

purposes in different situations. According to Keith Davis

"participation is the mental and emotional involvement of person in a

group situation which encourages him to contribute to group goals and

share responsibilities with them. Workers Participation in Management

decision making is highly complex concept. The Philosophy underlying

worker participation stresses.

Democratic participation in decision making.

Maximum employee-employer collaboration.

Minimum state intervention.

Realization of a greater measure of social justice.

Greater industrial efficiency.

Higher level of organizational health and effectiveness.

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OBJECTIVES OF WORKER'S PARTICIPATION IN

MANAGEMENT

To create uniform approach of employer and workers in

various matters of common interest through direct

negotiations.

To establish cordial industrial relations and permanent

industrial peace.

WORKER'S PARTICIPATION IN MANAGEMENT IN HAL,

KD

Worker participate in decision-making process through various

forums which are made available at HAL, KD are a follows:

(1) SHOP COUNCIL:

This is a non-statutory bi-partite committee dealing with

production level of the organization. The worker representatives of the

form are nominated by Trade Union.

(a) OBJECTIVES OF THE SHOP COUNCILS:

The objective of the shop council is to evolve smooth execution of

works through census made by representatives of the workman and

the management so as to avoid disputes and to improve productions

and productivity. The issues, which an discussed in the shop councils

are

Productions programmed, task and achievements,

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Productivity achievements.

The areas requiring improvement in methods, progress and

layout.

Shop practices requiring improvements.

Loss of safety appliance.

Discipline.

Plant maintenance.

(b) CONSTITUTION OF SHOP COUNCILS:

Both the workman and the management represent the shop

councils. In the council the ten members each represent the

management as well as the workman. The representative of the

council.

2) SAFETY MANAGEMENT COMMITTEES:

The committee deals with safety provisions of the organisation.

The worker's representatives are nominated by trade union.

a) OBJECTIVES OF SAFETY MANAGEMENT COMMITTEE IN HAL:

The objectives of the safety committee are to discus and lay down

the policies for safety of industrial workers. The decisions taken by the

safety committee is advisory in nature and final authority is vested on

the management.

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b) PRACTICE OF SAFETY MANAGEMENT COMMITTEE IN HAL:

Regarding the functioning of the safety committee and successful

implementation it can be said that since the formation of the

committee till date, numerous meetings of the committee is held.

Follow up action are taken depending on the basis of conclusion of the

safety committee. This meetings aim is to provide as much as

precautionary measures needed to prevent accident.

It should be noted that in HAL workers are given little

responsibility in the safety committee. Yet it is forum of participation

because management consults with the union before the

implementation of safety measures. In HAL the safety committee

functions in consultative type of participation.

(c)CONSTITUTION OF SAFETY MANAGEMENT COMMITTEE:

H.A.L. is having a safety committee, which was established in

1969.The composition of the safety committee includes the members

from the management only. However some trade union office bearer is

allowed to sought loop holes in regard to the safety measures. The

factory manager is the chairman of this committee and the chief plant

engineer is the vice-chairman. The safety engineer is the secretary of

the safety co

Documents

HINDUSTAND AERONATIC LIMMITED