Manik Kher
The Government of India is committed to
bring about a balanced regional development. In pursuit of this important objective, the government has been granting
new industrial licences only if the new
projects are located in the "no industry"
districts of backward regions.
While the objectives and strategy of
development of backward regions are unexceptional, the implementation of this
strategy poses many problems. A modern
plant located in an underdeveloped part of
the country faces many operational problems. It is not easy for managements to
train personnel there to operate and maintain modern machines based on the latest
technology. There is a great reluctance on
the part of qualified managers and workers
to accept positions in such locations given
their non-existent infrastructure. The only
economic advantage of locating plants in
backward regions is the reduction in labour
cost and the hefty subsidies received from
the central and state governments.
For successfully implementing the strategy of developing backward regions, it is
imperative that both the central and the
state governments assist the managements
in developing the necessary infrastructure
and maintaining cordial relations with
their employees. The Waluj plant case
highlights these problems and triggers thinking on the action that needs to be taken.
Vikalpa is thankful to Manik Kher of The
Times Research Foundation, Pune, for the
case.
Vol. 14, No.l, January-March 1989
Company Background
Bajaj Auto Ltd. is a market leader of the two-wheeler
industry. Except for the year 1979 when Escorts Ltd.
overtook Bajaj Auto Ltd., BAL had always enjoyed,,
the highest market share in this industry. Exhibit 1
gives the list of companies that accounted for, during the period 1975 to 1986, approximately 80 per
cent of the market share in the two-wheeler industry.
47
resolving day-to-day problems and for playing a liaisonary role between the management and workers.
More specifically, the group was required to help
workers solve their work-related matters such as
tool crib operations, services in the canteen, problems with company transport, and also help maintain discipline on the shopfloor. The group worked
in this role for nearly one and a half years. During
this period this internal union was not formally
registered.
Background of the Labour Force
Most of the labour force were in the age group of 2125 years and did not have family responsibilities.
Most of them came from agricultural families and
had no exposure to industrial life.
In an interview with the case writer, the workers expressed their views concerning the problems
they were facing in the plant. A gist of the views expressed by the workers is as follows.
The workers pointed out that they were confined to a job for eight hours. Although the work
norms were based on the ILO standards, the automated operations in BAL did not give them any
freedom on the job. They had absolutely no time for
relaxation at work. The company bus dropped them
to the shopfloor, drove them to the canteen and back
during lunch break and they were again picked up
at the end of the shift and dropped home. The eight
hour job left them so exhausted that they felt like
doing nothing but sleep.
Gathering Storm
Sometime towards the end of 1986, the management
made some major changes in the standing orders
which had been approved by the Deputy Commissioner of Labour. These were:
the normal minimum probationary period
of three months was raised to six months
with a provision to extend it by another six
months
the training period was liable for extension
at the discretion of the management
go-slow at work was incorporated as an act
of misconduct
a workman was liable for punishment for
riotous or indecent behaviour involving in
jury, assault or threat of assault not only
within the establishment but in the vicinity
Vikalpa
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