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MS-28   June-2008

MS-28 : LABOUR LAWS

l. Describe industrial adjudication and discuss the constitutional directive and limitations to labour laws.

2. Explain the concept of Contract labour, Contractor, Principal employer and Workman under the Contract Labour (Regulation and Abolition) Act, 1986. Discuss the obligations of principal employers regarding payment of wages.

3. Define the concept of Conciliation and explain the process of conciliation in an Industrial dispute.

4. Explain the meaning of Wages as envisaged in the Minimum Wages Act, 1948. What is the procedure for fixing and revising the minimum rates of wages ?

5. Write short notes on any three of the following :

(a) The scope and coverage of The Mines Act, 1952

(b) International Labour Organisation (lLO)

(c) Domestic Enquiry of Applicability

(d) The Payment of Gratuity Act, 1972

(e) Scope and applicability of The Plantations Labour Act, 1951

6. Read the case given below and answer the questions given at the end of the case.

The Vilas Mills Ltd., with a work force of about 2000 workmen, has been running smoothly for the past twenty years. There has been an increase both in the workers

category (5000) and white collar strength (56) during the last five years. There were no industrial disputes during the last fifteen years and even when other mills in the

locality were running into trouble with regard to industrial relations problems the Vilas Mills did not face any problem. The mill had two registered unions, one recognized by the mills, called The Vilas Mills Union and the other unrecognised, called the Mill Workers Union. The recognised union claimed that they have a following of 80 - 90 per cent of the workers. The unrecognised union claimed that they have a following of30 - 40 per cent and almost all white collar staff are their

followers. The 'Mill Workers Union' served a notice on the Administration with the following demands :

i)Foreman should be transferred to some other Unit.

(ii) Canteen facilities should be improved and the service of meals should be arranged for the night shift also.

(iii) Workload should be reduced both for blue collar and white collar staff.

(iv) Ambulance to be kept in mills for all twenty-four hours

(v) First-aid box should be replenished every two days.

Though the Union was an unrecognised one, it commanded about 30 per cent of the work force, and it was the Administration's policy was to examine any proposal put up by the Union and agree to certain demands in the interest of the administration and workers. Based on this policy, the Administration examined the above demands and straight-away implemented in part, demands (ii) and (iv) and did not consider demands (i), (iii) and (v) at all. Finding the Administration receptive to suggestions and conceding demands, as well as to show their prowess, The Vilas Mills Union too served a notice on the following points : -(1) Service rules to be modified.

(21 Transport should be arranged for all workers (including white collar) free of cost.

(3) Snack rates in the canteen should be reduced.

4) Automatic promotion should be given on completion of six years.

5) Transfers from one unit to another should be readily agreed to.

6) Victimisation should not be resorted to.

7)Apprentices given training under Apprentices Act should be appointed at least as

'badli' workers and 'badli' workers regularised as regular workers.

The Administration examined these demands but found it not practicable to concede to any of them except demand (3) which was consid ered and the rates reduced.: The recognised Union (The'Vilas Mills Union) served a strike notice on the Administration giving three weeks notice and setting the date of commencement of strike under Section 23 of the Industrial Disputes Act. At this stage, the Labour Department stepped in and started conciliation proceedings under Sections 4 and 5

of the Industrial Disputes Act. The strike could, therefore, not take place.

However, the conciliation proceedings fell through and the Labour Commissioner reported to the Government, failure of negotiations.

     The Government then examined and formed its opinion under Section 10(1) of the Industrial Disputes Act and did not consider it fit to refer the case for Arbitration or to the Labour Courts.

The Union felt that this decision was unjust and renewed their notice of strike stating that with effect from a certain date, they are going on strike. Accordingly, they went on strike from the modified date to press for their demands. The 'Mill

Workers Union' did not take part in the strike. However, it was seen that only about

800 persons were ready to come to work and they too could not attend due to f,ear of intimidation and non-availability of transport.

The mill at this stage declared the strike as illegal and declared a lock-out. The Vilas Mills Union maintained that the strike was not illegal as per Section 24 of Industrial

Disputes Act since the provisions Section 23 of the Act have been complied with and that the lock-out was illegal and that the mill authorities have to f,ace the

consequences. The deadlock continued. In the above case study, it is assumed that the Government has recorded and communicated to the parties the reasons for not making a reference under Section 12(5)

Questions :

(a) Is the strike legal or illegal ? Is the lock-out justified ? Is it legal or illegal ?

(b) How can such a stalemate be avoided ?

(c) Is there a defect in the legislation ? If so, where, and how can the defect be overcome ?

MS-28   June-2009

MS-28 : LABOUR LAWS

1- Discuss the sources of industrial jurisprudence in India. Briefly describe the role of adjudicatory bodies.

2- Describe the historical development of the Factories Act, 1948. Explain the process for approval, licensing and registration of factories.

3. What are the objects and functions of trade unions ? Describe the procedure for the registration and cancellation of a trade union.

4- Define Minimurn, Fair and Living wages. Briefly explain the enforcement of Minimum Wages Act.

5- write short notes on any three of the following :

(a) Domestic enquiry

(b) Certiorari

(c) Strikes and lockouts

(d) Retrenchment

(e) Res judicata

MS-28   June-2010

MS-28 : LABOUR LAWS

1. Briefly explain the terms :

a) Natural Justice

b) Equity

(c) Res Judicata

2. State the provisions relating to health and welfare under the plantations Labour Act, 1951,

3. Briefly state the main provisions of the Industrial Employment (Standing Orders) Act, 1946.

4. What are the various benefits payable under the workmen's compensation Act, 1923 ? Explain the provisions relating to distribution of compensation under this Act.

5. Write short notes on any three of the following :

a) Benefits payable to a female employee under the Maternity Benefit Act, 1961.

b) Payment of Gratuity under payment of Gratuity Act 1961

c) Obligations of employers and rights of employees under the payment of Bonus Act, 1965.

d) Mandamus.

(e) Domestic Enquiry

6. Read the case given below and answer the questions given at the end of the case.

Mohanlal, the lineman (electrical), was working in the power supply group of the electrical maintenance section of the mines Department. He had 15 years of experience of

repair and maintenance of high - tension (6.6 KV) and low - tension (440 V) overhead electric lines. From the beginning of the mines operation, he was engaged for the erection of electrical lines in the quarry area of the mines. During his service, he acted as leader of the crew whenever the charge man was absent. One day at 1 p.m. a message was received in the mine control centre that Mohanlal had fallen from a low - tension pole. He was shifted to the mines hospital where he was declared unfit for six weeks due to injuries on his shoulders, legs, and hands. On preliminary inquiries from his co-workers, it was gathered that Mohanlal was sent to attend the fuse complaint from the union office in the camp area. He was assisted by two persons. The helpers, who were at the site, said that Mohanlal checked the electrical circuit of the premises and upon finding everything in order, concluded that the supply was disconnected from the service lines on the pole near the office. He climbed the pole, but before he could attend to the fault he fell down from a height of about 6.5 meters and sustained physical injuries. Mohanlal stated in the hospital that as he climbed the pole, his elbow made contact with something metallic and that he felt some sensation in the nerves due to which he could not hold the pole firmly. In addition, the grip of one of his legs was lost. Consequently, he lost balance and fell down. On interrogation as to why he did not use a ladder and safety belt, he replied that he had not assessed this to be a job of line repair work. Further, he had been doing such

repairs many times earlier without the ladder and safety belt. He also pointed out the non-availability of transport and manpower for carrying the tools and tackles to the accident site. Further, he said that safety belts caused more inconvenience while working on the lines. He also confirmed that he had switched off the main supply lines feeding that area. He did not know what sensation he got in his body, but it was not electric shock, he said.

Questions :

a) What are the issues ?

b) Should Mohanlal be given paid leave and compensated as per the provisions in the

Workmen's Compensation Act ? Should he be penalised for his negligence or violation

of safety regulations, if any ?

c) Would it make a difference if Mohanlal was a contract worker, not a regular employee ?

d) What was the role of management, particularly the person who supervises the work of Mohanlal ?

MS-28   June-2011

MS-28 : LABOUR LAWS

1. Explain the sources of industrial jurisprudence in India. Discuss the specific objectives of labour legislation in India.

2. What is the meaning of the term "factory" under the Factories Act, 1948 ? Explain the provisions relating to hazardous processes under the Act.

3. Define Industrial Disputes and discuss the powers and duties of authorities under the Industrial Disputes Act, 1947.

4. Explain the process of domestic enquiry. Briefly describe the role of enquiry officer in it

5. Write short notes on any three of the following :

(a) Natural justice

(b) Registration of plantations

(c) Acts of misconduct

(d) Charge sheet

(e) Equal pay for Equal work

6. Read the following case and answer questions given at the end.

On every working day, when the Workers canteen of the company is opened at 8 a.m., there would be a big rush of employees for purchase of snacks and tea Normally, employees stand in queue for the purchase of various items from two different counters. The canteen remains open for half-an-hour and all employees who come there can conveniently purchase eatables, if they stand in queue.

On February 14, 1995, at about 8.15 a.m., Harvindar, Fitter, bearing Token No. 45 came to the canteen when in both counters people were standing in queue. Harvinder, who normally avoids standing in queue, tried to purchase the snacks through Vinod, a co-worker, bearing Token No. 84, who was in the queue. This was objected to by Ramlal, Welder, Token No. 88, who was standing just behind Vinod. Arguments started

between Harvinder and Ramlal. They were both angry and in the process, Harvinder gave a slap to Ramlal. The canteen supervisor, Joseph, intervened and separated them.

Incidentally, both Harvinder and Ramlal were active members of two different rival unions operating at the plant level.

     As per company's certified Standing Order No. 23(i), 'Riotous, disorderly or indecent

behaviour within the company's premises is a misconduct'. The works manager is the disciplinary authority as per the Standing Orders.

Questions :

(a) What is the problem in the case ? Discuss.

(b) Advise the works manager on the steps for handling this case.

(c) Draft a charge sheet to be issued to the employee concerned for his misconduct.

MS-28   Dec-2007

MS-28 : LABOUR LAWS

Labour law very important questions from mehta solutions

MS-28   Dec-2008

MS-28 : LABOUR LAWS

1. What are the provisions of Retrenchment in the Industuial Disputes Act, 1947 ? Discuss the recommendations of Second National Commission on labour retrenchment.

2. Briefly describe the concept and processes of Domestic Enquiry in Industry.

3. Discuss the concept of "arising out of and in course of employment" stipulated in the Workmen's Compensation Act, 1923. Give examples to make your arguments convincing.

4. What are authorised deduction, giu"n in the Payment of Wages Act, L936 ? Why are such provisions made in the Act ?

5. Write short notes on any three of the following :

(a) Eligibility for gratuity

(b) Equal pay for equal work

(c) Charge sheet

(d) Award and Settlement

(e) Employee Pension Scheme, 1995

6. Briefly describe the concept of writs and appeals under the Indian Constitution.

What is the meaning of the term "factory" under The Factories Act, 1948 ? Explain the procedure for approval, licensing and registration of factories.

7. Explain briefly the objectives, scope-and coverage of the Payment of Wages Act, 1936. Discuss the powers of inspectors under the Act.

8. Define "Trade union", and discuss the procedure for the registration and cancellation of a trade union under the Trade Union Act. 1926.

5. Write short notes on any three of the following :

(a) Social justice

(b) Registration of establishment

(c) Lay-off

(d) Dismissal and discharge

(e) Principles of 'Set on' and 'Set off' under

f)   Payment of Bonus Act, 1965

6. Read the following case and answer the questions given at the end :

On March 25, 1996 at about 6.45 PM, the Duty Officer (Security), Kumar, at the Works gate informed Rathod, Electrical Engineer on telephone that one Narayan, superisor of his department has been caught red-handed at the Works gate while attempting to steal one small electric motor and certain other spare parts used in the Electrical Dept. Rathod was requested to come to the Security Control Room, where a preliminary enquiry was to be held. During the preliminary enquiry, it came to light that Narayan, Personnel No. 5824, Foreman, came to the Works gate at 6.15 PM on his Suvega autocycle bearing registration no. BRX 1421 (the number was not clearly visible). The works guard on duty, Krishna Bahadur asked Narayan to stop and open the tool-box that was hanging on the right side of the rear wheel. When it was opened, only one empty tiffin-box was found. Since the driver's seat appeared to be thicker and of unusual size, the works guard enquired about the same from Narayan, and not being satisfied with the reply, gave it a jerk. It was found that Narayan had constructed one box under the seat where a 0.50 HP motor and eight 5 amps switches belonging to the company were concealed. On being asked, Narayan replled that he had attended a break-down after 5 PM in the Mill and replaced one 0'50 HP motor. The motor that was recovered was the defective one, but he could not return it as the store-issuer had already left for home after his duty which ended at 5 PM. He thought he would return the motor next day, as he had done many times in the past. He, however, could not explain why he was carrying the 5 amps switches. Nor did he give any satisfactory reason for not keeping the materials in the tool-box that was visible from outside, rather than where these were kept. On checking up at the Security Control Room, it was found in the presence of Narayan, that the electric motor recovered was in working condition. As per the Company's Certified Standing Order No. 23(iii),

'theft, fraud, or dishonesty in connection with company's business or property' is a

misconduct.

Questions :

(a) Does this case deserve suspension, pending enquiry ?

(b) Advise the Works Manager on the steps for handling the above case.

MS-28   Dec-2009

MS-28 : LABOUR LAWS

1. Describe the concept and philosophy of labour laws. Explain the effects of social—economic conditions on Labour Laws.

2. Discuss the scope and applicability of the contract labour (Regulation and abolition) Act, 1986. Describe the employer's obligation to provide amenities to workers under the Act.

3. Discuss the concept of domestic enquiry. Briefly explain the process of domestic enquiry. Illustrate.

4. Explain the applicability of the Employees State Insurance Act, 1948. Describe various benefits covered under the Employees State Insurance Scheme.

5. Write short notes on any three of the following :

a) Equal Remuneration Act, 1976

b) Plantation labour Act, 1951

c) The payment of Gratuity Act, 1972

d) Fundamental Rights and Labour Legislations

(e) Health and Safety under the Mines Act, 1952

6. Discuss the concept and definition of the Contract Labour under the contract labour (Regulation and Abolition) Act, 1970. Describe the obligations of principal employers to provide certain amenities to workers under the Act.

7. Explain the concept and nature of standing orders. Describe the Acts of misconduct in Model Standing orders.

8. Discuss the scope and coverage of the payment of wages Act, 1936. Explain the employers responsibility for payment of wages under the Act.

9. Describe the applicability of the Maternity Benefit Act, 1961. Explain the benefits payable to a female employee under the Act.

10. Write short notes on any three of the following :

a) Charge sheet

b) Eligibility for Gratuity

c) Employee pension scheme, 1995

d) Registration of establishment

(e) Duties of conciliation officer under I.D. Act, 1947

11. Read the following case and answer the questions given at the end.

Sriram was employed as a badli technical mate in the Pune-Miraj Railway construction. He had worked for about two years continuously in that capacity. He was subsequently selected for employment on one of the construction sites at a different place in Andhra for a tenure of two years.

He was properly relieved immediately but was not paid any sums - either as settlement or as terminal benefits. Also, the travelling expenses were not borne by the earlier construction organisation, though he was paid his wages till the date of relief. At the new place Sriram worked for two years and the period was further extended by another two years (total four years). On completion of four years of service, Sriram came and offered his services again in the Pune-Miraj construction and since he was an excellent worker he was taken again as a badli worker, but this time on regular monthly scales of pay with appurtenant benefits, since orders had by then come from the concerned Ministry that whoever had put in a continuous service of more than six months should be given the pay and other benefits though they are badli workers. This was the position with other workers also who were either retrenched and taken back or were continued. There were about 500 such workmen.

A situation however arose that Sriram had to be deployed, at this time to a lower grade and post as a regular measure but he refused stating that it was not suitable to him. Sriram was retrenched for refusing to accept alternate employment in the lower grade. This termination came to him after two years of his present appointment as a technical mate.

Sriram approached the higher authorities but they said that since no post was available in

the higher grade, even as a badli supervisor, either he has to take up his post in the lower grade as a regular measure or face retrenchment. Sriram pointed out that there are vacancies in similar grade of different category - as Draftsman – and that based on his qualification, he can be fitted in. Sriram also pointed out that the situation of retrenchment would not have at all come in, if he was considered when a regular vacancy in his grade category came up during his tenure appointment in another construction. The

organisation pointed out that once he has left a particular site, he ceases to have any connection and that he was taken as a badli supervisor only on humanitarian grounds.

   Sriram made a counter argument that his services cannot be treated as terminated, on his return from tenure post as he is presently carrying forward his services in the previous unit itself. Accepting employment afresh, was due to circumstances beyond his control and because management was adamant otherwise. He also argued that in as much as his settlement was not made, nor was he given any compensation, he cannot be stated to have been retrenched at all.

He also said, if he was treated as retrenched, he would have become the junior most and that as per Sec. 25 of I.D. Act he would not have been eligible for being considered again at all. The management argued that he could have claimed relief immediately and not after six years. Sriram went to Labour Court and the administration had put forward the same arguments. With arguments and counter arguments, the matter was dragged at the conciliation stage for about seven/eight months.

The conciliation officer submitted failure report with recommendation for reference to Tribunal/ Labour Court. The matter came up before the Labour Court. Management took a stand in the Court that Sriram was retrenched before posting to the other construction site, and has been paid all dues.

   Management however, expressed its inability to produce any record and their contention was that statutorily, it is not required to maintain any record under Payment of Wages Act, for more than three years, after the payment of retrenchment compensation. Sriram had also no grounds for claiming past seniority. Sriram argued that unless facts are proved by documents, cash vouchers and retrenchment order and other receipts, etc., before the Court as per the Government rules which makes it obligatory to produce documents, he cannot be considered as having been retrenched and he has a claim for the post which fell vacant during his tenure posting in another construction site.

Questions :

a) Assuming that the organisation has not paid Sriram his dues including the retrenchment compensation before posting to the tenure post, can the organisation refuse any employment to him on return, when the agreement does not speak anything to this effect ?

b) Does the employee lose his right of claim of past seniority simply because he was away for four years and then was taken afresh ?

c) What should be the relief available to the aggrieved workman if the Court is convinced that Sriram's dues have been settled before proceeding on the tenure post

to another construction site ?

d) What should be done if it is found that Sriram's dues prior to joining the tenure

post, was not settled nor was Sriram shown as retrenched on records ?

MS-28   Dec-2010

MS-28 : LABOUR LAWS

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MS-28   Dec-2011

MS-28 : LABOUR LAWS

1. Explain the impact of ILO's conventions and recommendations on labour legislation in India.

2. Discuss the Scope and Coverage of the Mines Act, 1952. Explain in detail the enforcement of the Act.

3. Explain the concept and nature of standing orders  under the Industrial Employment (Standing orders) Act, 1946. Describe the concept of misconduct under the Act.

4. Discuss the concept of bonus under the payment of Bonus Act, 1965. Explain the concepts of sums mentioned in the third schedule to be deducted from gross profits.

5. Write short notes on any three of the following :

(a) Social justice

(b) Maternity Benefit Act, 1961

(c) Prohibitions under the child labour (Prohibition and Regulation) Act, 1986.

(d) Retrenchment

(e)The Employees Provident Fund Scheme, 1952.

6. Read the following case and answer the questions given at the end.

M/S. Krishna Trading, a road transport company of Calcutta has a fleet of trucks for carrying -steel scrap-cuttings from various industrial organisations in Jamshedpur to a

number of iron and steel foundries around Kolkata. Since the scrap is to be collected from various points at regular intervals, the company sends each truck with one driver and a cleaner-cum -khalasy. Its resident representative at Jamshedpur coordinates in the collection of scrap from various locations. Scrap is generally loaded into the truck with the help of an overhead crane belonging to the company selling the scrap. At the time of weighing of the empty truck, loading of the material, as well as the time when the loaded truck is weighed, a representative each of the Security Department, Accounts Department (Weigh Bridge) and of the Department to which the scrap belonged, are present and a record of weights kept in a Weighment Register. Since the contractor is interested to get the material loaded quickly on the truck, his representative has to keep

good relations with the crane drivers and the security staff. Things were going on well till Kali Charan, representative of M/S. Krishna Trading informed N. Raman, manager of the factory on February 2, 2004 in the morning hours that the crane driver Ramu has threatened to damage the truck by dropping the scrap from a height unless he is given Rs. 50 per truckload. The security havildar K.P. Singh also demanded Rs. 50 per truckload to expedite loading and weighment. Kali Charan also complained that on earlier occasions, he used to pay Rs. 20 to the crane driver and Rs. 30 to the security havildar per truck to avoid delay in loading and weighment. Raman was concerned over the dishonest behaviour of his employees and called the Security Officer, Capt. Ranjit Singh. Raman put his initials on ten ten-rupee new currency notes and gave the same to Kali Charan for handing over to Havildar K.P. Singh and Ramu on demand for their so-called services. He also advised Capt. Ranjit Singh to lay a trap to catch these employees. On completion of the loading at about 11.00 AM on February 2, 2004, Ramu was given five ten-rupee notes, and after the weighment Havildar K.P Singh was given another five ten-rupee notes earlier signed by Raman. After the loaded truck was escorted outside the works at about 11.05 AM, Capt. Singh called Havildar K.P. Singh and Ramu to the Security Office where apart from Raman and Kali Charan,

Administrative Officer Goel was also present. In their presence, Capt. Singh asked Havildar K.P. Singh and Ramu to take out whatever money they had with them. In the process, all the signed currency notes were recovered. At the instance of Raman, Goel took down the statements of the following persons :

1. Kali Charan

2. K.P. Singh

3. Ramu

4. Capt. Ranjit Singh

Both Havildar K.P. Singh and Ramu admitted their guilt and begged apology, but refused to put their signatures on the written statement. There was a prima facie case against both K.P. Singh and Ramu.

As per the Company's Standing Order No. 23 (iii) "Taking or giving bribe or illegal  gratification whatsoever" is a misconduct.

Questions :

(a) Advise Raman as to the nature of action to be taken against K.P. Singh and Ramu.

(b) Advise Raman as to the merits and demerits of holding a domestic enquiry.

(c) Suggest to Raman various steps to be taken in a disciplinary proceeding.

(d) Also suggest to him the types of punishments which are normally awarded in case of misconducts.

MS-27   june-2007

MS-27 : WAGE AND SALARY ADMINISTRATION

l. Discuss the main features of reward system. How do the behavioural science theories influence reward management ?

2. What is the rationale for job evaluation ? Discuss the various methods of job evaluation

3. What are the requirements of the Payment of Wages Act, 1936 in respect of payment of wages ? Give an account of various deductions under the Act .

4. Discuss the various components of a compensation structure. What are the factors that are usually taken into consideration in determining compensation structure ?

5. Attempt any two of the following :

(a) Corporate compensation policy

(b) Compensation survey

(c) Minimum wage, fair wage and living wage

6. Discuss various allowances and fringe benefits paid to industrial employees as an integral part of their compensation package. Give examples.

7. Write short notes , on any three of the following :

(a) Tax implications of compensation to employees

(b) Equal Remuneration Act , !976

(c) Downsizing and VRS

(d) Collective bargaining as a method of wage fixation

(e) Emerging issues and trends in compensation

8. Read the following case and answer the questions given at the end.

The National Manufacturing Company reached an agreement with the Union on a production incentive scheme to increase production. The company had an unprecedented demand for its goods and the Union agreed for the incentive scheme. The management was pleased. with the assurance of the Union leader to

personally undertake the task of implementing the scheme. The management promised to give him a free hand if he could assist in increasing production. The Union did increase production to alrnost double the original level. As a result, the Union gained importance. Any problem could be sorted out by the Union by its direct access to the Chief Executive.

The incentive scheme benefitted primarily the Union members. The scheme was inequitable as some workers got disproportionately large incentives, some low and

some no incentive at all. The second feature was that as the incentive was linked to the Consumer Price Index (CPI), the distortion got further accentuated. However,

when the Union tried to misuse its new found powers,

   the management struck back one day by taking disciplinary actions against all the leaders and the Union found all of a sudden that it was without a leader. Another Union arrived on the scene and the leader had established a rapport with the Chief Executive, and this new Union faithfully followed the tenets of the management but as a price extracted some benefits for its members exclusively. The Union saw to it that production became its exclusive responsibility and it had a hot-line with the Chief Executive for any problem resolution. As the years passed, the Union started agitating for improvement in the wage scales. Because of the incentive scheme, the company found that any improvement in the basic wage would pose greater problems and the primary question before the management was to delink the CPI from the incentive scheme. The Union refused to delink the CPI from the incentive scheme as some of its members were earning an amount equal to, if not more than the salary, as an incentive itself. At the same time workmen with no incentive and being grade barred began to lose. And this resulted in discontentment amongst the workmen. But the dilemma could not be resolved and this led to an explosive situation.

     A third union emerged on the scene and this led to intense inter-union rivalry resulting in indiscipline, loss of production, and violence within the factory premises, as a result of which the company declared a lockout. when the plant reopened after four months, the Union in power lost its creditility and th; new Union had the complete support of the workmen. The new Union Ieader could develop a rapport not only with the workmen bui also with the management and expected the management to solve the problem of not having revised the wage scales for a long period. But this was not an easy task as there were a lot of inequalities that the management wanted to set right.

The union, though agreeing with the management, would not agree for a cut in the wage in any manner to set right the inequalities. The Union not only wanted to cling to the beneficial aspects of the incentive scheme but also insisted that the management somehow give an increase in the basic wages. The management was being drawn into a vicious circle of the incentive scheme being inequitable but when the Union's attention was being brought to the high incentive categories, it reverted to the low basic wage theme. The management remained in a quandry as regards how to convince the workmen, to win over the constituency of workmen and make managers effective and regain supremacy in production

Questions :

(a) Identify the problems and their causes in this case.

(b) Under the given situation, how are the problems to be remedied ?

(c) Suggest various principles and strategies the management has to keep in mind while formulating a wage incentive scheme for the employees