BHARAT HEAVY ELECTRICAL LIMITED, JHANSI

A PROJECT REPORT ON

INDUSTRIAL RELATIONS
UNDER THE KIND GUIDENCE AND SUPERVISION OF

MR. AFTAB ALAM

SUBMITTED TO :MR. AFTAB ALAM WELFARE & INDUSTRIAL RELATION OFFICER. (H.R) B.H.E.L. JHANSI

SUBMITTED BY :SONIYA BHASIN M.B.A. III SEM. (IMS) INSTITUTE OF MANAGEMENT JHANSI

ACKNOWLEDGEMENT
Intention, dedication, concentration and hard work are very essential to complete any task, but still it needs a lots of support and guidance, co-operation of people to make it successful. I am extremely thankful and indebted to numerous B.H.E.L. Engineers, who provide vital information about the functioning of the respective departments thus helping me to get overall information about the working of the organisation. I am highly thankful for the support and guidance for each of them. I express my sincerest thanks to all the employees in HRD department, B.H.E.L. , Jhansi for providing me the valuable inputs to understand the system of this organisation. I am highly indebted to my project guide MR. AFTAB

ALAM

for giving me his valuable time during the training at

B.H.E.L. , Jhansi. Lastly , I would like to thanks my fellow trainees who have been a constant source of encouragement and inspiration. SONIYA BHASIN M.B.A. III SEM

PREFACE
Knowledge has two aspects theoretical and practical, and no theoretical concept is complete without its practical implication. The future training programmes provide beneficial to the future managers as they are confronted with the problem of actual work environment during the training period. During the course of training, the trainees are expected to use and apply their academic knowledge and valuable insight into corporate cultures . I undertook my training in B.H.E.L. (Jhansi unit), which is one of the NAVRATANS of India, ISO-9001, ISO-14001 and OHSAS-18001 Company. During the training period as a project trainee, I visited various department of the organisation and did empirical analysis of inter-relationship. After the analytical study reticulated sections of the organisation emphasized affair concerning HRD.

INTRODUCTION OF THE COMPANY HISTORY OF BHEL(BHARAT HEAVY ELCTRICALS LIMITED)

Bharat Heavy Electricals Limited (BHEL) is an Indian stateowned integrated power plant equipment manufacturer and operates as an engineering and manufacturing company based in BHEL, India. BHEL was established in 1964, ushering in the indigenous Heavy Electrical Equipment industry in India. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.It is one of the only 7 mega Public Sector Undertakings (PSUs) of India clubbed under the esteemed 'Maharatna' status. On 1 February 2013, the Government of India granted Maharatna A status to Bharat Heavy Electricals Limited. It is engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defence. It has 15 manufacturing divisions, two repair units, four regional offices, eight service centres, eight overseas offices and 15 regional centres and currently operates at more than 150 project sites across India and abroad. Most of its manufacturing units and

other entities have been accredited to Quality Management Systems (ISO 9001:2008), Environmental Management Systems (ISO 14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007). It is the 7th largest power equipment manufacturer in the world. In the year 2011, it was ranked ninth most innovative company in the world by US business magazine Forbes. BHEL is the only Indian Engineering company on the list, which contains online retail firm Amazon at the second position with Apple and Google at fifth and seventh positions, respectively. It is also placed at 4th place in Forbes Asia's Fabulous 50 List of 2010. BHEL has a share of 59% in Indias total installed generating capacity contributing 69% (approx.) to the total power generated from utility sets (excluding non-conventional capacity) as of March 31, 2012. The company has been exporting its power and industry segment products and services for over 40 years. BHELs global references are spread across 75 countries. The cumulative overseas installed capacity of BHEL manufactured power plants exceeds 9,000 MW across 21 countries including Malaysia, Oman, Iraq, the UAE, Bhutan, Egypt and New Zealand. Its physical exports range from turnkey projects to after sales services.

The company's Corporate R&D division at Hyderabad leads BHEL's research efforts in a number of areas of importance to its product range. Research and Product Development (RPD) centres at all its manufacturing divisions play a complementary role. BHEL has introduced, in the recent past, several state of the art products. Commercialisation of products and systems developed by way of in-house Research and Development contributed Rs.95,120 Million corresponding to around 19.3% of the company's total turnover in 2011-12. In 2011-12, BHEL filed 351 patents and copyrights, enhancing the company's intellectual capital to 1,786 patents and copyrights filed, which are in productive use in the company's business. The company established four new Centres of Excellence, taking the total tally to 13. Significantly, BHEL is one of the only four Indian companies and the only Indian Public Sector Enterprise figuring in 'The Global Innovation 1000' of Booz & Co., a list of 1,000 publicly traded companies which are the biggest spenders on R&D in the world. The company boasts of a dedicated team of highly skilled and committed workforce of 49,390 employees. BHEL works along a pre-determined CSR Scheme and its Mission Statement on CSR is "Be a Committed Corporate Citizen, alive towards its Corporate Social Responsibility".

BHEL's contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged and handicapped children, ban on child labour, disaster/natural calamity aid, employment for the differently abled, widow resettlement, employment for ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management. As part of social commitment, BHEL provides financial assistance to various NGOs/Trusts/Social Welfare Societies that are engaged in social welfare activities throughout the country. 56 villages having nearly 80,000 inhabitants have been adopted. In June 2012, BHEL commissioned 250 MW power generating unit at Harduaganj in Uttar Pradesh.

B.H.E.L. JHANSI
Bharat Heavy Electricals Limited, Jhansi was founded on 9 January 1974 and is one of the 14 manufacturing units of the Bharat Heavy Electricals Limited (BHEL) Corporation. It is located on NH-26, 15 km away from Jhansi city, which was a center of first war of independence led by Jhansi Ki Rani. The Jhansi unit is spread in 1064 acres, which includes 519 acres of township having large green cover and excellent amenities. BHEL Jhansi started production of Transformers in the year 1976. BHEL Jhansi is in the business of two product groups namely Transformer, and Locomotive. Marketing of products and services is done at corporate level by Power sector, Industry sector, International operation division and Regional Office Division spread all over India. BHEL Jhansi has received the CII Exim bank award of "Strong Commitment to Excel" in the year 2007 in the field of Business Excellence.

ORGANISATION
The team of BHEL Jhansi unit is led by Shri A K Dave, Executive Director who reports to the chairman & managing director. The organisation is governed by corporate policies like HR Policy, Procurement Policy, Finance policy, Works policy etc. The Management Committee at Corporate level,

of which our Unit head is a member, reviews and monitors our operations.

PRODUCTS
Transformer POWER Transformer up to 400kv class/Traction trfr/ESP trfr./Special trfr/Dry TypeTrfr./Inst trfr up to 400 kv class' Locomotive WAG 7 AC locomotive for Indian railway/diesel locos. all application 3300 hp/wagons up to 300 MT 27 axle/railway track equipment/metro for kolkatta/emu coaches.

WORKFORCE
BHEL Jhansi has a committed workforce of 1929 employees. All employees have technical and professional background to suit the operations. Skilled and experienced manpower is major strength of organisation along with engineering and R& D strength. It also have around 1200 contract workers to cater to the support services. Workers have recognised union and supervisors have their registered association. To safeguard interest of SCs/STs, a registered SC/ST association is in place.

CERTIFICATION & RECOGNIZATION

BHEL Jhansi has been certified for ISO 9001:2001 for Quality Assurance.

INTRODUCTION OF THE TOPIC INDUSTRIAL RELATIONS

Industrial relation means the relationship between employers and employees in course of employment in industrial organisations. However, the concept of Industrial Relations has a broader meaning. In a broad sense, the term Industrial Relations includes the relationship between the various unions, between the state and the unions as well as those between the various employers and the government. Relations of all those associated in an industry may be called Industrial Relations. According to International Labour Organisation, Industrial relations comprise relationships between the state on one hand and the employers and employees organisation on the other, and the relationship among the occupational organisations themselves. According to J.T. Dunlop, Industrial relations are the complex interrelations among managers, workers and agencies of the government Concept of Industrial Relations: The term Industrial Relations comprises of two terms:

Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from unionemployer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial

relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labour) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labourmanagement relations, while human resource management is a separate, largely distinct field that deals with non union employment relationships and the personnel practices and policies of employers. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of

conflict between employers, workers and trade unions, when it arises.

Features of Industrial Relations:

Industrial relations are outcomes of employment relationships in an industrial enterprise. These relations cannot exist without the two parties namely employers and employees. Industrial relations system creates rules and regulations to maintain harmonious relations. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc. Several parties are involved in the Industrial relations system. The main parties are employers and their associations, employees and their unions and the government. These three parties interact within economic and social environment to shape the Industrial relations structure. Industrial relations are a dynamic and developing concept, not a static one. They undergo changes with changing structure and scenario of the industry as and when change occurs.

 Industrial relations include both individual relations and collective relationships.

Objectives of Industrial Relations:

To maintain industrial democracy based on participation of labour in the management and gains of industry. To raise productivity by reducing tendency of high labour turnover and absenteeism. To ensure workers participation in management of the company by giving them a fair say in decision-making and framing policies. To establish a proper channel of communication. To increase the morale and discipline of the employees. To safeguard the interests of the labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in an industry. To avoid all forms of industrial conflicts so as to ensure industrial peace by providing better living and working standards for the workers.

 To bring about government control over such industrial units which are running at a loss for protecting the livelihood of the employees.

Importance of Industrial Relations:

Uninterrupted Production: The most important benefit of industrial benefits is that it ensures continuity of production. This means continuous employment for all involved right from managers to workers. There is uninterrupted flow of income for all. Smooth running of industries is important for manufacturers, if their products are perishable goods and to consumers if the goods are for mass consumption (essential commodities, food grains etc.). Good industrial relations bring industrial peace which in turn tends to increase production. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. Strikes, grievances and lockouts are some of the reflections of Industrial unrest. Industrial peace helps in promoting co-operation and increasing production. Thus good Industrial relations help in establishing Industrial democracy, discipline and a conducive workplace environment.

 High morale: Good Industrial relations improve the morale of the employees and motivate the worker workers to work more and better. Reduced wastage: Good Industrial relations are maintained on the basis of co-operation and recognition of each other. It helps to reduce wastage of material, manpower and costs. Contributes to economic growth and development.

Causes of poor Industrial Relations:

Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labour. Unauthorised deductions from wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance etc. Organisational causes: Faulty communications system, unfair practices, non-recognition of trade unions and labour laws are also some other causes of poor relations in industry. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.

 Psychological causes: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country.

Suggestions to improve Industrial Relations:

Sound personnel policies: Policies and procedures concerning the compensation, transfer and promotion, etc. of employees should be fair and transparent. All policies and rules relating to Industrial relations should be fair and transparent to everybody in the enterprise and to the union leaders. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices. Responsible unions: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to industrial relations. Employee welfare: Employers should recognise the need for the welfare of workers. They must ensure reasonable wages,

satisfactory working conditions, and other necessary facilities for labour. Management should have a genuine concern for the welfare and betterment of the working class. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressal of employees grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Management must recognise unions as the spokesmen of the workers grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavour for good Industrial relations. Creating a proper communication channel to avoid grievances and misunderstandings among employees Education and training imparted to the employees.

INDUSTRIAL RELATION IN B.H.E.L. JHANSI

B.H.E.L. JHANSI is one of the production unit which is achieving success in every sphere of power sector and locomotives. The credit goes to both the management and workers. In B.H.E.L. JHANSI, there are mainly 7 trade unions which are in contract with the management for the workers enlistment. In JHANSI unit, the industrial relation between the management and trade unions are very sound i.e. very good industrial relations. In JHANSI unit the healthy labour- management relation develops due to following condition:(1)In B.H.E.L. Jhansi, the existence of strong , well organised, democratic and responsible trade unions and association of employer. The organisations enhances job security of employees, help in increased workers participation in management and give labour a dignified role in society. These associations in B.H.E.L. Jhansi also tend to create vantage ground for negotiation,

consultations and discussions on a mutual basis which ultimately lead to good labour-management relationship. (2)The spirit of collective bargaining and willingness to take recourse to voluntary arbitration . The collective bargaining recognizes equality of status between the two conflicting groups and prepares the ground in an atmosphere of trust and good will for discussions, consultations and negations on matters of common interest to both industry and labour. B.H.E.L. JHANSI the collective bargaining , plant discipline and union relation are the principle items which form the core of industrial relations. (3)Besides all these, welfare works whether statutory or non statutory, provided by the B.H.E.L. MANAGEMENT . Trade unions and employers create, maintain and improve labour management relations. In B.H.E.L. Jhansi INDUSTRIAL DEMOCRACY exists in which labour have the right to be associated with the management which is an important factor in the plant for maintaining very good industrial relations.

In B.H.E.L. , for industrial democracy workers participation in management occurs through the JCM, plant council, shop councils and other committees. The main council and committees which exist in B.H.E.L., Jhansi are1 PLANT COUNCIL 2 SHOP COUNCIL -1 (production transformer & PPC) 3 SHOP COUNCIL -2 (Loco PPC, BUSDUCT & FBM) 4 SHOP COUNCIL -3 (Design, Productivity & Main Store,FCX) There are nine committee exist in B.H.E.L. Jhansi. They are1 NATIONAL FESTIVAL ORGANIZES COMMITTEE 2 CULTURAL COMMITTEE 3 PROVIDENT FUND COMMITTEE 4 SAFETY COMMITTEE 5 CANTEEN COMMITTEE 6 MEDICAL COMMITTEE 7 TOWNSHIP COMMITTEE

8 B.H.E.L. EDUCATION COMMITTEE 9 SPORTS AND WELFARE COMMITTEE The TRADE UNION MEMBERS becomes the part of such committees.

STYLE OF MANAGEMENT IN B.H.E.L. JHANSI

Every industry believe to be sound i.e. very good relation ship with the workers through trade-unions as medium so was the case in B.H.EL. JHANSI. In B.H.E.L. JHANSI, participative style is adopted by the B.H.E.L. management. Under this type, labour is treated on an equal footing by management i.e. neither as a commodity nor as a child but as an ally and a friend , even a partner in the joint endeavour of improving the efficiency and productivity of the enterprise. Very sound personal policies are adopted by the B.H.E.L. Jhansi management so that very good industrial relation is maintained in the industry and plant go on the path of productivity and success. Statuary and non- statuary welfare in the workers favours are provided and supported by the B.H.E.L. management. Besides all this, B.H.E.L. management had provide white passes, telephone connections. Mobile connection, space for

office, furniture for the trade unions so that good industrial relation being maintained. As a social responsibility , B.H.E.L. management had adopted a nearby village providing primary level education and facilities for the factor which maintained good relation with the trade-unions. B.H.E.L. management always supports the fair, democratic and free trade union election in Jhansi unit which maintains very good Industrial Relations.

TRADE UNIONS IN B.H.E.L. , JHANSI

(1)BASIC SHARAMIK SANGH :It is an active union from the establishment of Jhansi unit B.H.E.L. Sharamik sangh is very influence from the starting years of foundation in 1975 elections. It was placed at IInd position & emerged as strong opposition union. In initial era of its emergence one representative of BASIC SHARAMIK SANGH (BMS)got the opportunity to represent the joint committee and also got the chance to took to management . In July 2002 JCM election , BASIC SHARAMIK SANGH (BMS)secured the highest vote stood at first position which is 33.62% of total votes. As it is secured more than 10% vote it got the chance to represent the joint committee & councils. B.H.E.L. SHARAMIK SANGH affiliated with BMS (BHARTIYA MAZDOOR SANGH)