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INTRODUCTION
In 1996, for the first time in Bata's 62-year-old history, the company signed a
long-term bipartite agreement. This agreement was signed without any disruption
of work. Recalls Majumdar: "We showed the management that we could be as
productive as any other union in the country." In the six-year period 1993-99,
Bata had considerably brought down the staff strength of its Batanagar factory
and Calcutta offices to 6,700.
In fiscal 1996, Bata was back in the black with the company reporting net
profits of Rs 41.5 million on revenues of Rs 5.9 billion (Rs 5.32 billion in
1995). In fiscal 1997, Bata further consolidated the gains with the company
reporting net profits of Rs 167 million on revenues of Rs 6.7 billion. A senior
HR manager at the company admitted that with an upswing in Bata's fortunes,
even its traditionally intransigent workers were motivated to do better. In
1997, Bata workers achieved 93% of their production targets. The management
rewarded the workers with a 17% bonus, up from the 15% given in 1996.
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By the end of 1997, Bata still faced problems of a
high-cost structure and surplus labour. Infact, the turnaround had made
the unions more aggressive and demanding. Weston had failed to strike a
deal with the All India Bata Shop Managers Union (AIBSMU) since the third
quarter of 1997. The shop managers were insisting that Bata honor the 1990
agreement, which stipulated that the management would fill up 248
vacancies in its retail outlets. It also opposed the move to sack all the
cashiers in outlets with annual sales of less than Rs 5 million, which
meant elimination of 690 jobs.
In 1999, the Bata management in a bid to further cut costs announced the
phasing out of several welfare measures at its Batanagar Unit. Among the
proposals was near total withdrawal of management subsidies, canteen
facilities, township maintenance, electricity and health care schemes for
the employees' families. Other measures were aimed at increasing
productivity, reorganizing some departments and extending working days for
some essential services. On January 14, 1999, the BMU submitted their
charter of demands to the management. |
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The wish list mainly revolved around economic issues. In
the list of non-economic issues was the demand for reinstatement of the four
dismissed employees[1].
The Union had also demanded the introduction of a scheme for workers
participation in management. On the economic front, the Union had demanded a
wage hike of around Rs. 90 per week, additional allowances as provident fund
over the statutory limit by the management, increase in 'plan bonus' and
introduction of attendance bonus for migrant workers.
In July 1999, BMU was finally able to strike a deal. It signed a three-year
wage agreement that included fiscal benefits such as a lumpsum payment of
arrears of Rs. 4,000 per employee. The management agreed to include 10% of the
400 contract laborers at Batanagar in its staff. Other gains included an
average increase of Rs. 45.50 in the weekly pay of the 5,600 employees in
Batanagar, an improved rate of DA and increase in tiffin allowance. However,
canteen rates had been doubled from Rs. 0.75 for a meal to Rs. 1.50. For the
500 families staying at Batanagar, the electricity rates had been doubled to Rs.
0.48 per unit. BMU was successful in scuffing the management's plan of
dismantling the public health unit in which 80 people were employed.
In September 1999, the West Bengal State labour tribunal in an order justified
and upheld Bata's action of suspending and subsequent dismissing of three
executive members of the BMU. The tribunal had provided no relief to the
dismissed members who had been found guilty of assaulting the chief welfare
officer at the Batanagar unit on November 26, 1996.
ASSAULT CASE
INDUSTRIAL RELATIONS
ADDITIONAL READINGS
[1]In 1998,
Weston was assaulted by a section of the workers at the company's factory at
Batanagar. Soon after the incident, the management dismissed four employees who
allegedly instigated the violence.
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