Summer Training Report: (Analysis of Industrial Relation in NTPC-Faridabad)
Summer Training Report: (Analysis of Industrial Relation in NTPC-Faridabad)
JUNE - JULY
2009
SUBMITTED BY:Anupama Rawat (MBA- HR) Pratap Singh (MBA- HR) Shreeraz Ali (MBA- HR) Pinkey (MBA- HR) Vijay mishra (BBA-CAM)
INDEX
Acknowledgement Executive Summary Literature Review Industrial Visit Questionnaire Analysis Data Analysis Recommendations Bibliography
ACKNOWLEDGEMENTS
I would firstly wish to thank to Mr. . & .. For allowing me to undergo summer training at NTPC Faridabad, all of the HR team of the Institute for their continued guidance. I would also wish to convey my warm regards to Mr. . for providing me with the entire knowledge database that I needed for this report.
PREFACE
As per the curriculum of the University for the M.B.A. degree course in Human Resource Project training has to be undertake in 2nd semester for the practical overview of the industry. To fulfill this requirement I took my 6 weeks training from 9th June to 24th July at National Thermal power Corporation Ltd (NTPC), Faridabad. During the training everything that I have learnt & studied has been briefed in this report. The report contains the necessary information in Human Resources in the main parts of the plant. The information has been prepared to best of my knowledge and the data made available by NTPC officials. At the end I m confident that after this training I am well aware of the industrial atmosphere & have an overview about the power industry & it would be helpful for my future & career.
NTPCs core business is engineering, construction and operation of power generating plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. As on date the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas & Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL, Indian Financial Institutions and Maharashtra SEB Holding Co.Ltd. NTPCs share on 31 Mar 2007 in the total installed capacity of the country was 20.18% and it contributed 28.50% of the total power generation of the country during 2006-07
1997
2004
2005
2009
NTPC is the largest power utility in India, accounting for about 20% of Indias installed capacity.
FUTURE OF NTPC
An ambitious Plan of Having Installed Capacity of 50,000 MW by the year 2012 & 75,000 MW by the year 2017
NTPC GROUP
NTPC Limited
Subsidiaries
Joint Ventures
NTPC-SAIL Power Company Pvt. Limited 50% NTPC-SAIL Power Company Pvt. Limited 50 NTPC Alston Power Services Pvt. Limited 50%
* Captive Power Plant under JVs with SAIL ** Power Plant under JV with GAIL, FIs & MSEB
PROJECT PROFILE
Coal Based Power Stations Commissioned Capacity (MW) 2,000 2,100 2,600 1,600 3,260 2,000 1,340 840 3,000 1,050 460
Coal based 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Singrauli Korba Ramagundam Farakka Vindhyachal Rihand Kahalgaon NTCPP Talcher Kaniha Unchahar Talcher Thermal
State Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa
Sri Lanka Saudi Arabia UAE Iran Jordan Bahrain Egypt Malaysia Indonesia Vietnam
NTPC OPERATIONS
The operating performance of NTPC has been considerably above the national average. The availability factor for coal stations has increased from 85.03 % in 1997-98 to 90.09 % in 2006-07, which compares favourably with international standards. The PLF has increased from 75.2% in 1997-98 to 89.4% during the year 2006-07 which is the highest since the inception of NTPC.
Sustainable It may be seen from the table below that while the Development installed capacity has increased by 56.40% in the last Maintain nine years, the employee strength went up by only sector 3.34% Nurturing Leadership Human Resource Description Installed Capacity Generation No. of employees Unit MW MUs STRATEGI ES No. - NTPC 199798 16,847 97,609 23,585 position through 2006-07 expansion 26,350 1,88,674 24,375 % of increase 56.40 93.29 3.34
Technology initiatives
HR IN NTPC
'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. We are strongly committed to the development and growth of all our employees as individuals and not just as employees. We currently employ approximately 24500 people at NTPC. Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.
Our HR Vision
"To enable our people to be a family of committed world class professionals."
Recruitment
We believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training.
We have, from inception, created a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions behind such success.
Quality of Work-Life
NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.
Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have developed our own comprehensive training infrastructure.
To meet the academic aspirations of employees and match them with the needs of the organization, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the duration of the course.
Seeking Feedback
We actively seek and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organizational Climate Surveys.
Awards
We derive immense satisfaction from the awards we receive and the resulting recognition they bestow. The awards are key indicators and milestones on our HR journey, and reinforce our HR philosophy and practices. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.
Company Rankings
Business Standard Award-Star Company (Public Sector Undertaking) of the year Business Standard
Corporate Governance Awards
International Project Management Award 2008. International Project Management Association (IPMA)
HR Awards
Great Places to Work 2008. Great Places to work Institutes India chapter
Safety Awards
Golden Peacock Award for Occupational Health & Safety -2008 Institute of Directors.
NTPC FARIDABAD
Location Govt. approved date Plant Capacity Plant Configuration Village Mujedi,P.O. Neemka,Dist. Faridabad,Haryana 25.07.1997 430MW (Nominal) 2(GT)+1ST GT-143 MW, ST-144MW
Land Availability Fuel Used Gas Source Water Source Financing Project Cost Beneficiary States Commissioning Date
Available Gas and Naptha HBJ Pipeline Rampur distributories of Gurgaon canal OECF, Japan Rs.1163.60 Cr. (IV Qtr.96) Haryana (100%) GT-I : June 1999 GT-II : October 1999 ST : July 2000
International Assistance
OECF
NTPC FARIDABAD
Detail of NTPC Faridabad is as follows:MANUFACTURING PROCESS, WITH DETAILS OF RAW MATERIALS, INTERMEDIATE AND FINISHED PRODUCTS
BRIEF DESCRIPTION OF PLANT PROCESS Salient Features 1. Project : Faridabad Gas Power Project
2. 3. 4. 5. 6. 7. 8.
Location
Mode of Operation Fuel Alternate Fuel Average Gas requirement 9. Fuel Source 10. Cooling water source 11. Naphtha Storage 12. Power Evacuation
Village Mujedi, P. O. Neemka, Faridabad. State Haryana 432 MW Gas Turbine 1 - 138 MW Gas Turbine 2 138 MW Steam Turbine - 156 MW Base Load Natural Gas Naphtha 2 million cubic meters per day HBJ pipe line ( through GAIL ) Rampur Distributory 2 tanks of 8000 Kl. Capacity each. 2X220 KV Double circuit lines to220 KV BBMB sub-station at Samaipur ( Ballabgarh ) 2X220 KV Double Circuit lines to 220 KV HVPN sub-station at Palla ( Faridabad )
NTPC-Faridabad is a power (electricity) generating company with installed plant capacity of 432 MW. The plant configuration is as under: Gas Turbine -1 Gas Turbine -2 Steam Turbine 138 MW 138 MW 156 MW
The mode of operation is Base Load. Natural Gas is used as main fuel. Naphtha is used as alternate fuel. Average gas requirement is two million cubic meters per day. Gas Authority of India Ltd. supplies Natural Gas to the plant through their H.B.J. Gas pipeline. The electricity generated is supplied to the state of Haryana.
2)WORKERS-44 3)SUPERVISOR-5
THERE IS ONE EXECUTIVE ASOCIATION WHICH IS CALLED FARIDABAD EXECUTIVE ASSOCIATION OF NTPC (FEAN)
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 union-employer 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 labor) 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 labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion 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 decisionmaking, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.Goods to earn profits.
Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
High morale
Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other.
Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.
ALTHOUGH INDUSTRIAL RELATION IS VERY IMPORTANT TO THE INDUSTRY.BUT THERE IS NO LEGISLATION ON INDUSTRIAL RELATION EXCEPT BOMBAY IR ACT,1946 AND ITS PROVISION ARE AS FOLLOWS:BOMBAY IR ACT, 1946 & ITS PROVISIONS
Rights or welfare of Labor. We are fully conscious of the fact that our legislature has put labor legislation We are always must reluctant to put any
interpretation upon labor legislation is likely to prejudice the on the statue book primarily for the purpose of redressing the balance between employers and employees and that we would not, unless we are compelled to do so by the clear language used by the legislature put any construction upon any provision of labor legislation which will in any way prejudicially affect their rights. - Chagla C.J.
Definitions:
In Bombay Industrial Relations Act, 1946, unless the context requires otherwise, -
(1) Central Act means the Industrial Disputes Act, 1947, XIV of 1947; (2) Concern means any premises including the precincts thereof where any industry to which the Central Act applies is carried on (3) Court for the purposes of Chapters VI and VII means the Industrial Court, or as the case may be, the Labor Court: (4) Employee in relation to an industry to which the Bombay Act for the time being applies, means an employee as defined in clause (13) of section 3 of the Bombay Act; and in any other case, means a workman as defined in clause(s) of section 2 of the Central Act (5) Employer in relation to an industry to which the Bombay Act applies, means an employer as defined in clause (14) of section 3 of the Bombay Act; and in any other case, means an employer as defined in clause (g) of section 2 of the Central Act; (6) Industry in relation to an industry to which the Bombay Act applies means an industry as defined in clause (19) of section 3 of the Bombay Act, and in any other case, means an industry as defined in clause (j) of section 2 of the Central Act (7) Industrial Court means an Industrial Court constituted under section (8) Investigating Officer means an officer appointed under section 8; (9) Labor Court means a Labor Court constituted under section 6;
(10) Member means a person who is an ordinary member of a union, and has paid a subscription to the union of not less than 50 paisa per calendar month: Provided that, no person shall at any time be deemed to be a member, if his subscription is in arrears for a period of more than three calendar months during the period of a six months immediately preceding such time, and the expression "membership" shall be construed, accordingly. Explanation: A subscription for a calendar month shall, for the purpose of this clause, be deemed to be in arrears, if such subscription is not paid within three months after the end of the calendar months in respect of which it is due (11) Order means an order of the Industrial or Labor Court (12) Recognized Union means a union which has been issued a certificate of recognition under Chapter III (13) Schedule means a Schedule to this Act (14) Undertaking for the purposes of Chapter III, means any concern in industry to be one undertaking for the purpose of that Chapter: Provided that, the State Government may notify a group of concerns owned by the same employer in any industry to be undertaking for the purpose of that Chapter (15) Union means a trade union of employees, which is registered under the Trade Unions Act, 1926
Provisions have been made to appoint or constitute following authorities, their jurisdiction, duties and powers in the Bombay Industrial Relations Act, 1946. These provisions are as under: (a) Commissioner of Labour (b) Registrar, Additional Registrar and Assistant Registrars (c) Conciliators (d) Board of Conciliation (e) Labor Officers and Assistant Labor Officers (f) Labor Courts (g) Industrial Courts (h) Court of Inquiry (a) Commissioner of Labor: The State Government appoints the Commissioner of Labor by notification in the Official Gazette and imposes certain powers and entrusts certain duties on him, whether generally or for any local area. [Section 4 (2)] (b) Registrar, Additional Registrar and Assistant Registrar: The State Government appoints the Registrar, Additional Registrar and Assistant Registrar by notification in the Official Gazette to be the Registrar, Additional Registrar and Assistant Registrar of Unions respectively for the whole state of Maharashtra. An Additional Registrar is not a subordinate to the Registrar, except in the matters where, by general or specific order, certain orders are given to the Registrar.
(c) Conciliators:
Section 6 of the Act provides for the appointment of the Chief Conciliator, Additional Chief Conciliator and Special Conciliator. They are appointed by the State Government. (d) Board of Conciliation: The State Government is empowered to constitute a Board of Conciliation for promoting the settlement of industrial disputes. The provisions relating to the constitution of a Board of Conciliation have been made in the Section 7 of this Act. (e) Labor Officers and Assistant Labor Officers: The State Government by notification in the Official Gazette appoints the Labor Officers and Assistant Labor Officers for any local area/s. The job of the Labor Officers and Assistant Labor Officers is to see to it that that there is a cordial relationship between the employers and the employees. (f) Labor Courts: Section 9 lays down that, the State Government shall, by notification in the Official Gazette, constitute one or more Labor Courts having jurisdiction in such local areas as may be specified in such notification and shall appoint persons having certain qualifications to preside over such courts. (g) Industrial Court: Section 10 (1) of the Act empowers the State Government to constitute the Court of Industrial Arbitration. The Industrial Court consists three or more members and one of them functions as its president. (h) Court of Enquiry: The State Government has empowered under Section 100 (1) to constitute one or more courts of enquiry consisting of such number of persons as the State Government may think fit. State intervention in industrial relations is essentially a modern development. With the emergence of the concept of welfare state, new ideas of social philosophy, national economy and social justice sprang up with result that industrial relation no longer remains the concern of labor and management alone. Many countries realized that for general progress to be assured,
economic progress was a must. In no country is a complete laissez faire attitude now adopted in the matter of labor management relations. In all the countries, over a period of time, the state has assumed power to regulate industrial relations. It is the state which is now the most significant element in determining the legal environment within which industrial relations operate.2 Bean regarded state as an actor within industrial relations performing a number of distinct roles3 The distinct role that state performs are broadly, categorized by him as five. Firstly, it acts as a third party regulator promoting a legal framework which establishes general ground rules for unionmanagement inter-action, particularly in the procedure for collective bargaining4. Secondly, and additionally, as a means of supporting and underpinning collective bargaining or as a supplement to it the law can be used establish minimum standards while collective bargaining exploits particular advantages to secure higher standards whenever it can.5 The third well established function in many countries is the provision of state service for conciliation, mediation and arbitration with a view to facilitating the settlement of industrial disputes. A fourth aspect of the role of the state that has become increasingly important is that of a direct and primary participation as a major employer in the public sector. In this respect, it influences the pattern of industrial relations by its own behavior and example. A fifth role that the state has come to play in many countries is that of a regulator of incomes. As a result, direct and active state involvement in the industrial relations has become much more pronounced in recent years. The concern of state in matters relating to labor is product of its obligations to protect the interest of industrial community, while at the same time fostering economic growth in almost all countries. State has assumed powers to regulate labour relations in some degree or the other. In some, has taken the form of laying down bare rules or observance by employers and workers; in others, the rules cover a wider area of these rules6. So far as our country is concerned, State intervention in labour matter can be traced back to the enactment of the Employers and Workmens Disputes Act 1860 which provided for the speedy disposal of the dispute relating to the wages of workmen engaged in railways, canals and other public works, by Magistrates. After World War-1 however, State intervention in Dispute Resolution became more systematic and effective. The Trade Dispute Act was passed providing for constituting courts of Inquiry and Conciliation Boards and forbidding strikes in public utility services without notice. The Act 1920 was replaced by the Trade Dispute Act 1929 incorporating provisions relating to general strikes as well. Thereafter Bombay Trade Dispute (Conciliation) Act 1934 was passed providing for permanent cadre for conciliators in selected industries. In the Year 1938 , Trade Dispute Act 1929 was amended authorizing and Central and Provincial Govts. to appoint Conciliation Officers. In the same year, Bombay Industrial Dispute Act 1938 was
passed providing for setting up of an industrial Court and prohibiting strikes and lockouts under certain conditions. Thereafter, during the emergency caused by World War II , under Rule 81A of the Defence of India Rules , power was given to the appropriate Govt. to appoint industrial tribunals and enforce the awards passed by them. The main object of the enactment of the Act is: To ensure social justice to both the employees and employers and advance the progress of industry by bringing about the existence of harmony and cordial relationship between the parties so as to bring about industrial peace which would accelerate procedure activity of the country. The Act provides for prevention and settlement of industrial disputes. Industry means a business (as a merchant), a trade ( as a culture), a manufacture (as a flour mill), an undertaking ( as a gas company), a calling as a engineer, or service ( as a carrier) or an employment ( a general term like calling embracing some of the others; and Intended to extend to vocations which might not be comprised in any of the rest), all these expressions so far indicating the occupation in which the principle. There are two types of Industrial Disputes-interest disputes and rights disputes. Interest disputes relate to determination of new wage level and other condition of employment while rights disputes on the other hand relate to interpretation and application of existing standards and usually involve and individual worker or group of workers. Under category of rights disputes, claim is made that the workmen have not been treated in accordance with the rules, individual contracts of employment, laws and regulations and as per collective agreements. Such disputes are also described as grievance disputes. Such grievances may be regarding retrenchment ,dismissal, payment of wages, working time, overtime, demotion , promotion, transfer, seniority, job classification, work rules and fulfillment of obligation relating to safety and health laid down in an agreement. The definition of Industrial Dispute as given in the Act has a wide coverage. All disputes relating to employment or nonemployment, or the terms of employment or with the condition of labour are covered under the definition. Settlement means a settlement arrived at in the course of conciliation proceeding and included a written agreement between employer and workmen arrived at otherwise than in course conciliation proceeding where such agreement has been signed by the parties there to in such manner as may be prescribed and a copy thereof has been sent to the officer authorized in this behalf by the appropriate government and the conciliation officer.11The definition envisage two categories of settlement.
(1) Settlement arrived at in the course of conciliation and (2) Settlement arrived at privately or otherwise than in the course of conciliation. The settlement arrived at in the course of conciliation stand on a higher plane than the settlements arrived at otherwise than in the course of conciliation. The legal effect of both these settlements is not identical. The settlement arrived at otherwise than in the course conciliation binds only the parties to settlement and none else. In any case it does not stand on higher plane than the settlements arrived at in the conciliation and that makes the two distinct and different from each other. Procedures for settling labour dispute: Collective Bargaining, Negotiation, Conciliation and Mediation, Arbitration and Adjudication are well known methods for settlement of industrial disputes. Collective Bargaining :- Collective Bargaining is a technique by which dispute as to conditions of employment, are resolved amicably, by agreement, rather than by coercion. The dispute is settled peacefully and voluntarily, although reluctantly, between labour and management.12 In the context of present day egalitarian society, with its fast changing social norms, a concept like collective bargaining is not a capable of a precise definition. The content and Scope collective bargaining also varies from country to country. Broadly Speaking Collective bargaining is a process of bargaining between employers and workers, by which they settle their disputes relating to employment or non-employment , terms of employment or conditions of the labour of the workman, among themselves, on the strength of the sanctions available to each side .13 Occasionally, such bargaining results in an amicable settlement, arrived at voluntarily and peacefully , between the parties. But quite often, the workers and employers have to apply sanctions by resorting to weapons of strike and lockouts, to pressurize one another, which makes both the sides aware of the strength of one another and that finally forces each of them to arrive at a settlement in mutual interest . It is thus the respective strength of the parties which determine the issue, rather than the wordy duals which are largely put on for show, as an element of strength in one party is by the same token, an element of weakness in another.14 The final outcome of bargaining may also depend upon the art, skill and dexterity of displaying the strength by the representatives of one party to the other. Negotiation: Negotiation is one of the principal means of settling labour disputes. However, due to lack of trust between the employers and workmen or their trade unions or inter-rivalry of the trade unions and the employers being in a commanding position, many a time negotiations fail. Through Amendment in the Act by Act 46 of 1982 Chapter II B providing for reference of certain individual disputes to Grievance
Settlement Authority has been inserted in the Act. Under this Chapter, section 9 C has made it obligatory for the employers to make provision for Grievance Settlement Authority for settlement of industrial disputes connected with an individual workman employed in an establishment in which fifty or more workmen are employed or have been employed on any day. In the preceding twelve months. This amendment however even inspite of having been made twenty one years back has not seen the light of the day. Conciliation & Mediation: Through conciliation and mediation a third party provides assistance with a view to help the parties to reach an agreement. The conciliator brings the rival parties together discuss with them their differences and assist them in finding out solution to their problems. Mediator on the other hand is more actively involved while assisting the parties to find an amicable settlement. Sometimes he submits his own proposals for settlement of their disputes. Conciliation may be voluntary or compulsory. It is voluntary if the parties are free to make use of the same, while it is compulsory when the parties have to participate irrespective of whether they desire to do so or not. Section 4 of the Act provides for appointment for conciliation officers and Section 5 for constitution of Boards of Conciliation. The Board of conciliation is to consist of an independent Chairman and two or four member representing the parties in equal number. While the former is charged with the duty of mediating in and promoting the settlement of industrial disputes, the latter is required to promote the settlement of industrial disputes. The act generally allows registered trade unions or a substantial number of workers/ employees and also in certain cases individual workman to raise disputes. Adjudication: If despite efforts of the conciliation officer , no settlement is arrived at between employer and the workman, The Industrial Dispute a provides for a three tier system of adjudication viz. Labour Courts , Industrial Tribunals and National Tribunals under section, 7 , 7A and under section 7B respectively. Labour Courts have been empowered to decide disputes relating to matters specified in the Second Schedule. These matters are concerned with the rights of workers, such as propriety of legality of an order passed by an employer under the standing orders, application and interpretation of standing orders, discharge or dismissal of workman including reinstatement of grant of relief to workman wrongfully discharged or dismissed, withdrawal of any customary concession or privilege and illegality or otherwise of a strike or lockout. The industrial tribunal are empowered to adjudicate on matters specified in both the Second and Third schedule i.e. both rights and interest disputes. The jurisdiction of the Industrial Tribunal is wider that the labour courts.
In case of disputes which in the opinion of the Central Govt. involve question of national importance or is of such nature that workers in more than one State are likely to be affected. The Act provides for constitution of National Tribunals. Under the Act, an award made by the adjudication authority is final as there is no appeal. However actual practice almost every award made against the employer is challenged in the High Court under Article 226 and 227 & in the Supreme Court under Article 136. It takes year before final orders are passed in writ petitions pending before the High Court/Supreme Court. If the period taken before the adjudicating authority is counted, it does not take less 10 to 20 years before the protracted litigation could be disposed off. It is the weaker sections who are inconvenienced and handicapped the most, by the delay. It is submitted that the need of the day is to evolve the frame-work in which workers and the management perceive the need to co-operate. Bilateral regulation is the most effective method of evolving norms which enjoy wide acceptance. It will be appreciate to recall the observation made by a jurist on the subject: No doubt, the state intervention in the form of compulsory adjudication has significantly contributed to the settlement of all sorts of industrial disputes between industrial employers and their employees. But its very success is the failure of the collective bargaining process as the normal method of settling industrial disputes. It follows that if collective bargaining has to gain ground, the state intervention through compulsory adjudication must wane to the vanishing point. It has outlived its utility. It is far better to leave the management and Trade unions to settle their differences and disputes among themselves than referring the issue to a third party settlement. Any attempt to solve socio-economic problems arising out of industrial relations within the old framework may have some limited usefulness, but cannot, in the nature of the case, achieve any, adequate solution. The frequent break-down in industrial relations must give way to constructive programmers. The settlement of disputes, reached by mutual discussion, debate and negotiation, leaves no rancour behind and helps to create an atmosphere of harmony and cooperation.
FOR SMOOTH RUNNING OF ANY ORGANIZATION THERE SHOULD BE EFFECTIVE PARTICIPATIVE FORA.IN NTPCFARIDABAD THERE ARE 8 PARTICIPATIVE FORUMS WHICH HAVE REPRESENTATIVES OF EXECUTIVE AS WELL AS WORKERS.
PREAMBLE
In order to bring sense of involvement and effective participation amongst the employees at various levels , towards a coordinated and determined effort for better all round performance and improved efficiency , it is imperative to provide institutionalized forums for joint participation /consultation of the employees in the timely completion of projects and there smooth functioning. It is desirable to have reduction of cost , elimination of waste, safety , house keeping, and physical working conditions , etc .But also in the areas of day to day concerned of the employees away from their workplace such as in the areas of recreation and cultural activities , horticulture , environment ,etc .
2. 3. 4. 5. 6. 7. 8.
Township Advisory committee Joint Plant / Project Level Council Shop / Departmental Level Council Canteen Management Committee Employees Welfare Committee Sports Council House Allotment Committee
Safety committee
OBJECTIVE:
The objective of the safety committee would be to create safety consciousness among employees and suggest ways and measures to the management for creating safe working conditions and a safe working culture.
Constitution
The constitution of safety committee would be as follows: 1. Dy. General Manager Chairman 2. Manager / Dy .Manager from erection/operation 3. Safety Officer Secretary 4. Officer ( HR- Welfare) 5. One Executive from Civil Construction Department 6. Senior most employees in the Supervisory category from Mechanical Erection 7. Senior most employees in the Supervisory category from Electrical Erection 8. Senior most employees in the Workman category from Mechanical Erection 9. Senior most employees in the Supervisory category from Electrical Erection
Meetings
The Committee will meet once in three months or at such frequent intervals as felt necessary. The Safety Officer, who would work as the Member Secretary, will do necessary followup for the implementation of conclusions reached at in the meetings.
Constitution
The constitution of the Safety Committee would be as follows: 1. Dy. General Manager / Chief Construction Manager Chairman 2. Manager (HR)-Secretary 3. One Officer from Finance Department 4. One Officer from any other Department 5. Senior- most employees in the categories of unskilled and semi-skilled workers taken together 6. Senior-most employee in the category of skilled workers 7. Senior most employee in the supervisory category
Meetings
The Committee will meet once in a month or at such frequent intervals as felt necessary .The Manager (HR), Secretary of the Committee, would do necessary follow up on the conclusion arrived at in these meetings.
Objective
It is constituted to discussed and resolve plant level issuesinformation sharing on generation & production targets, productivity, inventory reduction, general health, welfare & safety, and issues referred by shop council.
Constitution
The constitution of the PLC would be as follows;1. Head of Project/ Station- Chairman 2. An Executive from the HR- Secretary 3. The number of representatives of employees and the management would be equal and would vary b/w 8 and 12 depending on the employees strength The Management representatives would be recommended by the Head of Department and approved by the Head of Project. They would consist of representatives from the Supervisory category whose number would be 1 or 2 depending on whether the total number of Management representatives is 4 or 6 Workers representatives would be elected by the workers representatives in the Shop/Departmental council 4. The member once nominated or elected would hold position for one year. Any vacancies arising during the term would be filled in the same manner as mentioned earlier, but only for the remaining period of the term.
Terms of Reference
1. Optimum/general efficiency and fixing of productivity norms and generation/construction targets;
2. Matters concerning the unit or the plant as a whole, in respect of work planning and achieving production targets, especially tasks assigned to a shop council but relevant to the unit as a whole, will be taken up the PLC. 3. Functions of a shop council which have a bearing on another shop or the unit as a whole; 4. Matters emanating from shop councils which remain unresolved; 5. The development of skill of workmen and adequate facilities for training; 6. The preparation of schedules of working hours and of holidays; 7. Optimum use of raw materials; And 8. General health, welfare and safety measures for the unit or the Plant.
Meetings
The Council will meet once in a quarter or at such frequent intervals as felt necessary. The Secretary of the Council will prepare the minutes of the discussions and will follow up the implementation of the conclusions.
Objective It is constituted to discuss department level issues Improvement of production , productivity & efficiency , elimination of wastage , improvement in working condition , safety, etc.
Constitution
The constitution of the SLC would be as follows: 1. Head of Department chairman 2. An Executive from the Department- secretary 3. The number of representative of the employees and the Management would be equal and would vary b/w 8 and 12 depending on the employee strength . The Management representatives would be recommended by the Head of Department and approved by the Head of Project. They would consist of representatives from the Supervisory category whose number would be 1 or 2 depending on whether the total number of Management representatives is 4 or 6. Workers representatives would be elected by secret ballot. The members once nominated or elected would hold for one year .Any vacancies arising during the term would be filled in the same manner as mentioned earlier , but only for the remaining period of the time.
Terms of Reference
1. Assist Management in achieving monthly /yearly generation /construction targets; 2. Improvement of production ,productivity and efficiency including elimination of wastage and optimum utilization of machine capacity and manpower 3. Specifically identify areas of low productivity and take necessary corrective steps at shop to eliminate relevant contributing factors 4. To study absenteeism in the shops /departments and recommend steps to reduce them 5. Safety measures
6. Assist in maintaining general discipline in the shop/ department 7. Physical working conditions, such as lighting ,ventilation, noise, dust, etc. and reduction of fatigue; 8. Welfare and health measures to be adopted for efficient running of the shop /department. 9. Ensure proper flow of adequate two- way communication b/w the management and the workers , particularly on the same matters relating to production figures, production schedules and progress in achieving targets .
Meetings
The council will meet once in a month or at such frequent intervals as felt necessary. The Secretary of the council will prepare the minutes of the discussions and will follow-up the implementation of the conclusions.
Canteen Management Committee Day to day issues of Plant canteen management. Employees Welfare Committee Organizing welfare ,recreational, and cultural activities . Sports Council Promoting sports consciousness .
Reference:
1. Approval of Policy paper on Participative Forums by the Management Committee in their meetings held on 30.04.1985 & 01.05.1980. 2. CPC No. 55/80 dated 19.06.1980. th 3. Decision taken in the 9 meeting of the Heads of Personnel held on 2nd & 3rd October 1981 and circulation of Policy Documents on Welfare Facilities for NTPC employees 4. Decision taken in the meeting of GMs and PMs in April 1982, and the Schemes of Workers Participation in Management as set out in the annexure to the minutes of the minutes of the said meeting. 5. Scheme of Employees Participation in Management circulated wide corporate personnel division endorsement No. 01 PERS 29(3) Dated 21.08.1984.
AS PER GOVT.NORMS,THERE ARE LABOUR LEGISLATIONS APPLICABLE TO ORGANIZATIONS FOR GOOD INDUSTRIAL
RELATION.NTPC AS AN PSU ALSO COMPLIES WITH SUCH ACTS. THE DETAILS OF 7 SUCH ACTS ARE FOLLOWS: The Employee Provident Funds and Miscellaneous Provisions Act, 1952 Object of the act Among the social security legislation in India employee provident found and miscellaneous provisions act 1952 occupies the most important position. The act provide for the institution of provident founds employees pension founds and deposite linked insurance found for employee in factories and other establishment.
1) 2)
Object of the act The object of the employees state insurance act, 1948 is to provide for certain benefit to employees incase of sickness maternity and employment injury and to make provision for certain other matters in relation thereto.
3)
Object of the act The beginning of modern legislation lies in factory legislation. The rapid industrialization and urbanization without any planning resulted in in sanitary and crowded living. The act provides that employees should work in healthy and sanitary condition so for as the manufacturing process will allow and that precautions should be taken for their safety and for the prevention of accidents.
4)
The object of the industrial disputes act, 1947 is not only to make the provision for the investigating and settlement of the industrial disputes, but also to secure industrial peace so that it may result in more production and improve national economy. The Minimum Wages Act, 1948 Object of the act Since exaction of labor and service against payment of less than the minimum wages amounts to forced labor and violates article 23 of the constitution the minimum wages act has been enacted to ensure that the employer pays minimum wages to the employees as fixed or revised by the appropriate government in certain employments in accordance with the procedure as laid down under the act.
5)
The Payment Of Gratuity Act, 1972 Object of the act The payments of gratuity act, 1972 was enacted to introduce a scheme for payment of gratuity for certain employees employed in industrial and commercial establishments, as a measure of social security.
6)
The Payment of Wages Act, 1936 Object of the act Payment of wages act aims at regulating the payment of wages to certain classes of persons employed in any factory or railway administration or to any industrial establishment to which a state government by notification has extended the act.
7)
Age:-? Under 30 30- 40 40- 50 50- 60 Gender? Female Male Designation:1.)Location of your residence? a.) Within Township. b.) Outside Township. 2.) How long have you been working in this Organization? Less than 1 year. 1 15 years. 15- 30 years. 30 - Above.
3.) Industrial Relation means: Relationship Relationship Relationship Relationship b/w b/w b/w b/w employee and employer. employee and employee. employer and employer. unions.
No 5.) Is Executive Union required for Industrial Relation? Yes No 6.) Participative Fora like Safety committee, Township committee, Employees Welfare committee etc are required for good Industrial Relation? Yes No Uncertain 7.) Good Industrial Relation means high commitment of Employees in Organization? Yes No Uncertain 8.) At FGPS, Industrial Relation is : Satisfactory Good Outstanding Very bad
9.) At FGPS, the Trade Union leader are : (you can give more than 1 answer) Responsible Irresponsible Working for personal gains Working for organization 10.) The Executive Association at FGPS works for:- (you can give more than 1 answer)
Betterment of executives Betterment of organization At their whims and fancies To harass the organization
11.) At FGPS, the participative forum meetings are held regularly? Yes No Sometimes 12.) At FGPS, there is total compliance of labor laws? Yes No Uncertain 13.) At FGPS, I feel full freedom to meet all supervisors including General Manager? Yes No 14.) I feel happy to come to work for FGPS? Yes No Sometimes happy Sometimes sad
15.) How frequently are your issues resolved in the organization? Seldom Very seldom Freqently
YES 28
NO 2
YES 24
NO 6
3.) Participative forums like safety committee, township committee, etc are required for good industrial relation?
YES 29
NO 1
YES 21
NO 3
UNCERTAIN 6
Yes 23
no 7
Yes No
93% 07%
7%
yes no
93%
FREQUENTLY 24
SELDOM 6
20%
FREQUENTLY SELDOM
80%
ANALYSIS OF SURVEY
Q.NO QUESTION YES NO UNCERTAIN SOMET TOTAL
IMES
1. Are trade 93% unions required for industrial relation? Is executive 80% unions required for industrial relation? Participative 97% for a like safety committee, township committee employees welfare committee etc. are required for good industrial relation? 7%
100%
2.
20%
100%
3.
3%
100%
4.
5.
Good 70% industrial relation means high commitment of employees in organization? At FGPS, 67% industrial relation is:At FGPS, the trade union leader are:The executive association at FGPS worker for :At FGPS, the participative forum meetings are held regularly? At FGPS, there is total compliance of labor laws? At FGPS, I feel full freedom to meet all supervisors including general manager? 87%
10%
20%
100%
30%
3%
100%
6.
13%
100%
7.
83%
17%
100%
8.
77%
23%
100%
9.
83%
17%
100%
10.
100%
11.
93% 7%
100%
12.
How 80% 20% frequently are your issues resolved in the organization?
100%
Maximum employees agree that trade union are required for industrial relation in organization.(93%) Maximum employees agree that executive association are required for industrial relation.(80%)
Maximum employees feel that participative fora like safety committee, township committee etc. are required for good industrial relation.(97%) Maximum employees agree that good industrial relation means high commitment of employees in org.(70%) Majority feels that at FGPS industrial relation is good. (67%) and other feels outstanding.(30%)
Majority feels that trade union leader are responsible and other think they are working for organization.
Majority feels that the executive association at FGPS works for betterment of org.(83%)
77% think that at FGPS the participative forum meetings are held regularly. Maximum employees agree that at FGPS there is total compliance of labour laws.(83%)
All employees feel free to contact anyone in their organization, including General Manager.(100%)
Almost all employees feel happy to come to work for FGPS.(93%) Maximum employees agree that their issues are resolved frequently.(80%)
CONCLUSION
From the above analysis, it is clear that NTPC FARIDABAD has a good and effective Industrial Relation system. This is evident from the fact that all the employees are aware of the meaning of indutrial relations and they also have opportunities for communication with every body in the organisation including the General Manager. They also feel happy to come to work at FGPS. It has also been seen that the trade union and the executive association functions effectively here, as also all the participative
for a. At FGPS, majority feels that there is total compliance of labour laws. It also appears thatin the industrial relation system, both the management and workers are equal partners.
RECOMMENDATIONS
77% feel that there is regularity of the meetings of the participative fora.This can be increased to 100% by drawing a schedule of these meetings as per the guide lines given by the corporate office which are either monthly or quarterly.
Limitations:
The sample size is a limitation in this report as we only considered 30 respondents, which is not representative of the whole industry. Being students we have our own limitations so this report is not a complete reflection of the industry. And moreover the time was major constraint in our project as being student we had our own time constraints. More over our research depends on the behavior of the respondents. So it can also vary from person to person.
Bibliography
References: http://www.hcilondon.net/india-overview/economy-industrytrade/ infrastructure.html [Accessed on 11th July 09] http://www.indiacore.com/power.html [Accessed on 11th July 09] http://www.wsws.org/articles/2000/feb2000/ind-f21.shtml [Accessed on 9th June09, 8:48pm] http://www.wsws.org/articles/2006/jul2006/labo-j29.shtml [Accessed on 9th July 09, 9:06pm] http://www.innocorpltd.com/p-indprofile.html