1. BATA

2. Headquartered in Calcutta. Bata sold over 60 million pairs per annum in India and also exported its products Plants located in Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar) and Hosur (Tamil Nadu). Distribution network of over 1,500 retail stores and 27 wholesale depots. Bata was Indias largest manufacturer and marketer of footwear products.2

3. Reasonably priced Sturdy footwear Market valuation of Rs 3.7 billion Employed over 15,000 people in its manufacturing and sales operations.3

4. BACKGROUND 1990- signed agreement with AIBSMU, which stipulated that the management would fill up 248 vacancies in its retail outlets. 1995 - BSO restructured the entire board and sent in a team headed by Weston. Sold its headquarter building in Calcutta for Rs 195 million. Company shifted wholesale, planning & distribution, and the commercial department to Batanagar, despite opposition from the trade unions. Implemented a massive revamping exercise Decided to stop further recruitment Allowed redundant staff to fill the gaps created by superannuation and retirements.4

5. 1996-Reported net profits of Rs 41.5 million on revenues of Rs 5.9 billion. 1997-Reported net profits of Rs 167 million on revenues of Rs 6.7 billion. Rewarded workers with a 17% bonus Workers achieved 93% of their production targets Faced problems of a high-cost structure and surplus labour.5

6. Weston failed to strike a deal with the All India Bata Shop Managers Union (1992) AIBSMU opposed the move to sack all the cashiers in outlets with annual sales of less than Rs 5 million, which meant elimination of 690 jobs. 1998- first time signed long-term bipartite agreement with the unions without any disruption of work. 1999-February 1999, a lockout(8 months) was declared in Batas Faridabad Unit6

7. March 8, 2000-lockout was declared at Batas Peenya factory in Bangalore, following a strike by its employee union July 2000-Lifted the lockout at the Peenya factory. Workers opposed the companys move to get an undertaking from the factory employees to resume work. Employees demanded revocation of suspension against 20 of their fellow employees. Demanded that conditions such as maintaining normal production schedule, conforming to standing orders and the settlement in force should not be insisted upon.7

8. September 2000- Bata was headed for a labour dispute when the BMU asked the West Bengal government to intervene in what it perceived to be a downsizing exercise being undertaken by the management.8

9. REASONS FOR STRIKE Downsizing Change in management Increase in working hours Change in employment policy Demand of union for workers participation in management. Wage hike9

10. MEASURES TAKEN BY BATA 1995,96 &98 Bipartite agreements to resolve labour concerns 1999 Signing of three year wage agreement that included fiscal benefits. Payment of Rs 4000/employee. Management agreed to include 10% of 400 contract labors10

11. OUR VIEWS Bata should not give the charge to expatriate manager as it brought the feeling of distrust with the management Secondly, they shouldnt begin the downsizing exercise instantaneously and rapidly. It should be a slow exercise. Instead of outsourcing 23 million pairs per year from other industries, they should have started manufacturing it in their own unit.11

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