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The Indian national labour institute states that 55 percent of the labour forces are on contract basis. This enhances competitiveness and improves the profitability along with increase shareholder value of the company. Every six months the employees are removed and reappointed; reason being beyond 6 months of continuous employment-medical benefits and provident funds should be provided.
This case has been studies amongst following segments:-
2. Introduction to the Company
3. A brief of Case Study
4. What the problem is?
5. Where the problem resides?
6. Assault on Executives
7. Deep rooted issues
8. Role of collective bargaining
9. Importance and impact of collective bargaining
10. Sound wage policy makes a difference: an Illustration
12. Questions for analysis:-
- Do you think the violence at Manesar plant caught the management unaware?
- What could be the preventive measures?
- Do you think Management deviated from best governance practices by helping Gujjar (Union Leader) and others suspended for indiscipline? Comment
- With Reference to the above Case, What is the role of Collective bargaining in maintaining good industrial relations?
- Do you think the problem of contract labour is compounded by archaic labour laws in India?
A modern factory with high production efficiency that produces low cost products so as to prevail in the fierce competition with other manufacturers and thus remain prosperous. For this the factory has got to be a high yield factory minimizing defects and loss in the manufacturing process by having a production control system that reduces the waste (non-value adding work) from work. Factory inventory is kept low. Production plans are adjusted to correspond to market fluctuations. The slogan, "Better, faster and cheaper" stresses this aspect of modernization.