(After declaration )

SUBMITTED BY: SATYA NARAYAN MEHER | ROLL NO: 11MBAS09238

SUBMITTED BYSATYA NARAYAN MEHERRoll No. : 11MBAS09238FOR THE PARTIAL FULFILMENT OF MBA PROGRAMME

UNDER THE GUIDANCE OF

Sushanta BarikSUBMITTED TO

DDCE SAMBALPUR UNIVERSITY

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 by Satya Narayan Meher, 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

Ramakrushna Sahoo

Faculty in Human

Resource Management

EXAMINERS CERTIFICATE

This project is submitted by Satya Narayan Meher of MBA bearing the Roll No. 11MBAS09238 under DDCE, Sambalpur University and forwarded for evaluation.

Internal Examiner

External Examiner

CERTIFICATE OF APPROVAL

This is to Certify that the Project Entitled:

Industrial Relation Practices in HINDUSTAND AERONATIC LIMMITED

Submitted by Satya Narayan Meher (Roll No. 11MBAS09238), Sambalpur University, Burla towards partial fulfillment of the requirements for the award of the degree of Master of Business Administration (MBA) is a bona fide record of the work carried out by him under the able guidance of Sushanta Barik, Faculty, Maa Manikeswari Educational Trust.

(Approval of the Center Director)

DECLARATIONI 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.

Satya Narayan MeherACKNOWLEDMENT

I express my sincere thanks to the Centre Director, Maa Manikeswari Educational Trust for his valuable suggestions to prepare this project.

I wish to take this opportunity to express my deep sense of gratitude to Ramakrushna Sahoo for his valuable guidance in this Endeavour. He has been a constant source of inspiration and I sincerely thank him for his suggestions and help to prepare this report.

Finally it is my formost duty to thank all my respondents who helped me to complete my filed work without which this project not has been possible.

Satya Narayan MeherCONTENTS

CHAPTER-IINTRODUCTION

CHAPTER-IIBRIEF HISTORY OF HAL

CHAPTER-IIISTRUCTURE AND FUNCTIONS OF THE PERSONNEL DEPARTMENT

CHAPTER-IVTRADE UNION: A THEORETICAL FRAMEWORK

CHAPTER-VCONCLUSION AND SUGGESTION

CHAPTER-VIBIBLIOGRAPHYCHAPTER-IINTRODUCTION: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. Hence they 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 that the worker does not only brings his hand to the organization but 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. It constitutes 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 employees and their organization that characterize or grow out of employment."

According to the H.A.Clegg,"the field of industrial relations includes the study of worker & trade union, management employers associations & the state institutions concerned with the regulation of employment."

Industrial organization has four major resources. They are man, machine, material & money. But man is the most important resource, unless management & labour realize their mutual obligations & their industrial roles, no enterprise can real exist. Labour & management have to recognize that there can always be differences of opinion, which needn't lead to conflict.

The modern industrial organization is based on two large variables. One is accumulative & aggregate of large capital & another one is aggregation of large number of workers organized under trade union.

OBJECTIVES OF THE STUDY The study has two co-equal objectives.-

To have a first hand knowledge about the practices of the organization in the field of Personnel Management, Industrial Relations.

To get overall experience of an organization, its day to day problem & the experience of a personnel executive in 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.

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 personal department, 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 the theoretical aspect but also from the particle experiences. There is 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 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 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.

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 of imported 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 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 19th March 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 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 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.

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

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,AIRCRAFTENGINEINDEGOUS NAME

1MIG-21FLR-llBADAL

2MIG-21 M/MFRII-F2S/F2SKTRISHUL

3MIG-21 BIS R-25VIKRAM

4MIG-23 MF R-29RAKSHAK

5MIG-23 BNR-29BVIJAY

6MIG-25R-29BGARUD

7MIG-27MR-29BBAHADUR

8MIG-29RD-33VAJ

9GANTORPHEUSAJEET

10HF-24ORPHEUSMARUT

11HJT-16VIPER-IIKIRAN

12JAGUARADOUR MK-803SHAMSHER

13MIKAGE-2000M-53VAJRA

14HS-748 (A VRO)DART-531CHITRA

15ALLOUTEEARTOUSTE-IIIBCHE (HELL COPTER)

16AN-32SUTLUJ

17MI-8PRATAP

18MIAKBAR

19HPT-32PISTON ENGINE

20SU-30AL 31 FP

The following are the products developed and designed by HAL :

Sl.No. NO.NAME OF THE CRAFTPURPOSE

1HTTRAINER

2PUSHPAKTRAINER

3KRISHAKAIR OBSERV A nON

4MARUT (HF-24)GROUND ATTACK

5MARUT (TRAINER)ADVANCED JET TRAINER

6KIRAN MAKE-II&IAAGRICULTURAL

7BASANTGROUND ATTACK

8AJEETABTRAINER

9HPT-32TRANSONIC JET

10AJEETTRAINER

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 HAL is exporting its products to

Republic of Yemen (Department of defense)

Republic of Vietnam

Republic of Laos

Republic of France

Republic of Government Syria.

Mitsubishi

Department of space government India

BHEL

MHI, Japan

Government of Iraq

Supply of spares to other HAL Division

India Coast guard

MISSION & VISION

MISSION: To become a globally competitive aerospace industry while working as an instrument for achieving self reliance in design, manufacture and maintenance of aerospace defense equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence.

Values: - HAL, KD has committed to the value to guide their activities. They are

Customer satisfaction

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 future challenges. 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 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. 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.

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)2006-0751.13

2007-0858.64

2008-09

67.64

2009-10

81.00

2010-11

126.30

SOURCES OF FUNDSAPPLICATION OF FUND

Funds from operationLoss from operations

Issue of share capitalRedemption of share capital

Issue of debentureRedemption of debentures

Long term borrowingRepayment of loans

Sale of asset /investmentPurchase of asset/investment

Non-operating incomePayment of dividend

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 matters listed in the schedule of the act such as:

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.

Safety measures.

Complaints & grievances.

Acts of misconducts.

Minor misdemeanors.

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

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.

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

Present status A long term agreement with M/s Pratt & Whitney Corp. Canada have been signed for export of critical rotating components HAL has been accorded" NAVARATNA status by the 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 EMPLOYEESWORKMEN

SCALESCALE OF PAY (RS)

12900-45-3125-50-4875

2/A3000-55-3275-60-5735

33200-65- 3525- 7 5-6150

4/B3650-80-4050-90-6660

53950-95-4425-105-7470

6/C4100-110-4650-120-7650

7/D4500-130-5150-140-8650

8/E4700-150-5450-160-8970

9/F5200-170-6050-180-9650

106100-185-7025-195-10535

EXECUTIVESGrade Scale of pay

Grade EO13500-23000 .

Grade E117500-30000

Grade E222000-34000

Grade E326500-37000

Grade E430500-40000

Grade E534000-44000

Grade E637000-47100

Grade E740000-52500

Grade E845000-58200

Grade E952000-64000

DIRECTOR75000 (Fixed)

CMD80000 (Fixed)

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, the programme 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 & 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.

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 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

HAL has won several International & National Awards fc achievements in R&D, Technology, Managerial Performance Exports, Energy Conservation, Quality and Fulfillment of Sods Responsibilities. HAL was awarded the "INTERNATIONAL GOLD MEDALAWARD or Corporate Achievement in Quality and Efficiency a he International Summit (Global Rating Leaders 2003), London, (UJ)y M/s Global Rating, UK in conjunction with the International information and Marketing Centre (IIMC). HAL was presented the International - "ARCH OF EUROPE \ward in Gold Category in recognition for its commitment to Quality leadership, Technology and Innovation. At the National level, HAL won the "GOLD TROPHY" of excellence in Public Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE). On 17th of July '2006 HAL was declared ranking 45th among the 00 defense companies of the world as released by US-bases defense news. The Company scaled new heights in the financial year 2004-2005 a turnover of Rs. 4534 Crores and export over Rs. 150.05 crores. HAL has been successful in numerous R & 0 programmes development both Defense and Civil Aviation sectors. HAL has made substantial progress in its current projects:

Dhruv, which is Advanced Light Helicopter (ALH)

Tejas - Light Combat Aircraft (LCA)

Intermediate Jet Trainer (IJT)

Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coasi Guard in March 2002, in the very first year of its production, a unique achievement. HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like:

PSLV (Polar Satellite Launch Vehicle)

GSLV (Geo Stationary Launch Vehicle)

IRS (Indian Remote Satellite) INSAT (Indian National Satellite)

There are three joint venture companies with HAL:

BAEHAL Software Limited

Indo-Russian Aviation Limited (IRAL)

Snecma HAL Aerospace pvt. Ltd

Apart from these three, other major diversification projects are industrial Marine Gas Turbine and Airport Services. Several Co-Production and Joint Ventures with international participation are under consideration. HAL's supplies / services are mainly to Indian Defense Services, Coast Guards and Border Security Forces, transport Aircraft and Helicopters have also been supplied to Airlines is well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.

CHAPTER-III

STRUCTURE AND FUNCTIONS OF THE PERSONNEL DEPARTMENTINTRODUCTION

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 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 & 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 an individual when the departs from the code of conduct observed by the 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.

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 between the 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".

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 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 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.

PF Alc holder contract labour establishment who are working in the division prior to 1982.

Public Relations:

Issuing of press releases arranging of press conferences putting of news papers cuttings relating to HAL to higher management including translation of vernacular ones.

Publication of House magazines "Aeroflash".

Conducting of cultural functions on the occasions of National festivals and VIP Visits in co-ordination with welfare fund and educational Institutions.

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.

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

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.

CHAPTER-IV

TRADE UNION: A THEORETICAL FRAMEWORKINTRODUCTION:

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. 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 grievance matters 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 people, since due to non-affiliation it could 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 such difficulty 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 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 said challenge 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

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 executive members 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.

Sl.NoOffice BearersNumbers

1President1

2Vice-President7

3General Secretary1

4Secretary6

5Treasurer1

6Office secretary1

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 table and is finalized. However important issue relating to any change in policy is settled with the signing bipartite/tripartite agreements. The major issues concerning wage, fringe benefits, service conditions I etc. are resolved through collective bargaining system which takes place at the corporate level of the company. The recognized trade union a part of the All India HAL Trade Union Co-ordination Committee (AI HAL TUCC).The recognized union of all Divisions and Corporate office together constitute.

At Corporate level, the collective bargaining process comes to an end with the signing of bipartite agreement between management and (ALHAL TUCC).Such agreement is further ratified with the signing of tripartite agreement in presence of the appropriate conciliation officer. HAL management always possesses positive attitude for maintaining harmonious industrial relations. The recognized union in HAL engages its main activity to secure fair wage for workers, provide security to workers, struggle for the betterment of the workers and protect their interest, besides carrying out collective bargaining process with the management.

INDUSTRIAL DISPUTE AND ITS METHODS OF SETTLEMENT There are two important aspects of industrial relation of cooperation and another is conflict. The Industrial relation is such relationship which brings about conflict. Conflict is a general concept. 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 and workmen 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 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 develop and 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 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 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 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 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. 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

Recovery from an officers pay of the whole part of any loss caused to the company in account of his negligence, default or orders of the company,

Post- pone of increment of pay without cumulative effect for not more than one year

(2) MAJOR PENALTIES:

Reduction to a lower stage in the same scale of pay,

Reduction to a lower scale of pay grade or post.

Postponement of increment of pay for more than one year with cumulative effect.

Compulsory retirement.

(3) EXPLANATION:

The following shall not amount to penalty with in the meaning of this rule:

(a) NON- PROMOTION OF AN OFFICER: Whether in a substantive or officiating capacity after consideration of his case to a grade or post for promotion to which he is eligible.

Reversion of an officer official ting in a higher grade or post to a lower grade or post on the ground that he is considered to be unsuitable (or such higher grade or post or in any administrative ground unconnected with his conduct.

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,

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 punched his 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.

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 delinquent adopted 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.

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 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 and decides 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 office bearers 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 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.

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,

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.

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 committee.

(3) GRIEVANCE COMMITTEE:

The committee deals with grievance of the worker in the organization and redresses the grievances as soon as possible. The representatives of workmen are nominated by trade union.

(a) CONSTITUTION OF GRIEVANCE COMMITTEE IN HAL:

From management side Deputy General Manager who is the permanent chairman of the grievance committee and Senior Administrative Manager who is the secretary of the grievances committee. The representative of the trade union, one must be an office bearer and other be a departmental representative or executive body member in the department in which the aggrieved is working.

(4) HOUSE ALLOTMENT COMMITTEE.

The committee deals with allotment of quarters to the workers in township. The worker's representative of the committee is nominated by the trade union.

(a) CONSTITUTION OF HOUSE ALLOTMENT COMMITTEE:

House allotment committee is bipartite in nature. The management nominates their representatives of the management and the president of H.A.E.W.F nominates the union representatives. The committee meets once in every month. The meeting decisions are taken in majority votes. But the decisions are advisory and communicative in nature. The final authority is vested on the General Manager.

(b) PRACTICE OF HOUSE ALLOTMENT COMMITTEE:

This committee is functioning well with the participation of the union. It is so effective the hundred of houses are allotted to the employees. With the increased number of employee many houses are under construction and its allotment is a big challenge to the committee.

(5) HINDUSTAN AERONAUTICS SPORTS CLUB: The club has set up to facilitate sport and games t he township. The workmen representatives of the club are nominated by management.

(a) OBJECTIVE OF THE H.A.L SPORTS CLUB:

The aims and objectives of the sports club are to promote and faster fellowship. Physical cu1 true, athletic outdoors and indoors games.

(b) CONSTITUTION OF THE SPORTS CLUB COMMITTEE:

The management of the club is vested in a management committee consisting of the fourteen members given below:

President

Two vice-President

Two secretaries

Honorary Treasurer and eight members

Out of the fourteen members are nominated by the management, including the President and ten members elected by the general body at least once in a month or as and when it is necessary.

(c) PRACTICE OF SPORTS CLUB COMMITTEE:

When we take the general view of the club, it can be said that the committee is functioning with co-operation between the union and the management representative effectively.

(6) HINDUSTAN AERONAUTICS CONSUMER CO-OPERATIVE STORE (HACCS):

The store supplies essential commodities to the employees and employers of the organization, the workman representative of the store are elected.

(a) OBJECTIVES OF H. A. CONSUMERS COOPERATIVE STORES:

The objectives of society are to provide essential commodities at a reasonable rate.

(b) CONSTITUTION OF H. A .CONSUMERS CO-OPERATIVE STORES:

The committee is being administered by a Board (Directors consisting of nominated members including chairman from the management and elected members by the members of the consumer's society. The company provides transport facilities free of cost to bring ration articles.

(7) WORKS COMMITTEE:

As per section 3 (i) (ii) of the Industrial Dispute Act 1947,any industrial establishment in which one hundred or more workmen are employed or have been employed on any day of he proceeding twelve months have to constitute works committee

(a)OBJECTIVES OF WORKS COMMITTEE:

The objective of the work committee is to promote measures for security and Preserving amity and good re a t ion s between the employers and the workmen and to end comment upon matters of the common interest.

(8) HINDUSTAN AERONAUTICS EMPLOYEES WELFARE. FUND: This welfare fund is invested for entertainment, training & such other facilities for the people in the organisation.

(a) OBJECTIVES OF H, A .EMPLOYEES WELFARE FUND:

To supervise and to provide adequate welfare facilities. A welfare fund committee is constituted for smooth execution of employee welfare fund.

(b) CONSTITUTION OF H.A.L. EMPLOYEES WELFARE FUND:

The welfare fund is administered by welfare committee constituting of eight members. It is the bipartite committee having representatives from both management and union. Out of sight members, five members including the chairman are nominated by the management and other three members are elected members by a ge