Mr. Andrew is the Chairman of Board of Directors of Stylish Garments plc. He believes that the success of the business depends mainly on a committed, loyal work force. Therefore the board of Directors along with Mr.Andrew always pays more attention to human resources matters.

Even though they give more attention to Human resources matters, the Stylish Garments plc suffers with high labour turn over compare to the competitors. When the board of Directors comes to know that the company has high labour turn over, they discussed the matter at the board meeting held on 24th June 2010 and the directors unanimously agree to conduct a study using an independent audit firm to identity the issues contributing to high labour turn over.

The audit firm started the study in July 2010, and completed in Sept 2010. During the study they interviewed staff who currently working and some of the staff who left the organisation as well. The staff submitted various issues of the organization. Saman is one employee who is working a senior supervisor at the production floor; he stated that, he has been working since 2007, and his salary has been increased by only 1,000/=. He further stated that "he has three children and due to the increasing cost of living he finds it difficult to manage with his current salary', therefore he and his colleques planning to have a discussion with the management if it fails they will go for a trade union action. He also explained that "the management never listens to their grievances and they expect only work and they won't compensate adequately for what employee do"

Palitha is the another employee who was interviewed by the audit co. He stated "that most of the production staff is not in good terms with the production manager as he always shouts with product staff. He never recognizes the staffs who work hard for the co. He favours few employees and treat them better than us" He further explained that the factory lay out is also not properly designed due to this they have the huge noise in the factory which is unbearable. He said that they have complaint about 6 months ago to management but management didn't take any action to solve the issue.

Simon also was interviewed by the audit firm. He has been working as the production executive for last 2 years. He has a science degree with experience. The Management of Stylish Garment plc has recruited a new Assistant Production Manager to their production department. But Simon thinks that he has been discriminated by recruiting a new staff that has less qualification and experience compared to him. He further stated that he can't expect justice from the management therefore he search job to quit the current Job.

Some other senior staff also interviewed by the audit company and they also highlighted the issues of poor working conditions, No canteen facilities, No career development or proper promotion plan, etc.

The Audit Company which conducted the survey has listed all the issues and submitted to the Board of Directors.

Identify the issues which have created negative impact in Employer, employee relationship of Stylish Garment plc?

How can Stylish Garment plc create a positive employer employee relationship in their work place which will contribute to a reduction in labour turnover and gives fairly a long term employment to their employees with Stylish Garment plc?

Do you think the Chairman's belief is right? If yes what steps should be taken to achieve his belief?