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Group 4 Tesco Case Study

The document summarizes industrial unrest at Tesco Cranes Engineer Pvt. Ltd. in three key points: 1. In 2012, workers at Tesco joined a trade union and made demands including doubling wages, 16% bonuses, and 6 uniforms per year. Management and workers failed to reach agreement. 2. A strike and lockout ensued, with workers engaging in go-slow tactics and eventually a sit-in strike in response to disciplinary actions. 3. By September 30th, 2012 management had declared a permanent lockout, showing the breakdown in relations between workers, their union, and management.

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Neel Surti
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344 views11 pages

Group 4 Tesco Case Study

The document summarizes industrial unrest at Tesco Cranes Engineer Pvt. Ltd. in three key points: 1. In 2012, workers at Tesco joined a trade union and made demands including doubling wages, 16% bonuses, and 6 uniforms per year. Management and workers failed to reach agreement. 2. A strike and lockout ensued, with workers engaging in go-slow tactics and eventually a sit-in strike in response to disciplinary actions. 3. By September 30th, 2012 management had declared a permanent lockout, showing the breakdown in relations between workers, their union, and management.

Uploaded by

Neel Surti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Industrial Unrest at

Tesco Cranes

Section B

Group 4

Dilip Kunjappy John – 15P078


Himanshu Jhamb – 15P083
Manak Malik – 15P091
Nipun Kumar – 15P096
Samveda Sharma – 15P105
Vishal Kumar – 15P119
History

• Tesco Cranes Engineer Pvt. Ltd. started in 1994 by Manish Gera


• Company had a liability of 4 millions when Gera took over
• In 2013 the Annual turnover was INR 1 billion and had 3 plants
with employee strength of 170
• Gera was the sole decision maker
• Tesco entered in joint venture with Triumph for manufacturing
turbiness
The Union’s Emergence
• July 2012 – workers joined a state trade union Hind Sewak Sangh
• The leader was Rohit Singh of the Indian National Janta Party
• First Phase – Following demands were made:
– Current wages to be doubled
– 16% bonus and provision of 6 uniforms per year
• Second Phase – Gera called a meeting with the workers and they
agreed to his suggestions
• Third Phase –
– Failed negotiations between union and management
– Strike continued for number of days
• Final Phase –
– Workers suspended for “go-slow”- slowing production
– Workers went for stay-in strike against the disciplinary action taken by
Management
– Sept 30, 2012 – management declared permanent lockout
1. What Factors contributed to the
breakdown of IR in TESCO?
 Role of exterior party
-Rohit Singh played a key role in unrest of workers
-Rohit Singh instigated the workers for his own
benefits
 The centralized power culture – No involvement
of employees in decision making
 Adamant behavior of the workers: Go-slow to slow
down the production level
 Ego of the workers and the management
What were the expectations of each party—the
owner, trade union, workers—from the other parties?

OWNER
 The workers should leave their unjust demands and start working
 Wanted to have a control over the workers and super ordinate the
workers
 Accepting the workers demand would further empower the union
Trade union
 Rohit Singh wanted to instigate the workers for his personal benefits
 The unrest contributed to the incomes of the Trade Unions

Workers
 Workers demanded for 100% wage hike , 16% bonus and 6 new
uniforms every year
 Mutual agreement on production targets as the current targets were
very high
What power in IR did different actors in the case
have, how did they derive it, and how did they
use it?

Owner
 Failing to connect on a personal level and gain trust of the
workers
 Not paying attention to the reason of dissatisfaction of
workers and just focusing on meeting the production targets
of the plant
 Going ahead and suspending the workers even the loyal ones
 Bribing of the conciliation officers
 Lockdown of the plant to make workers helpless
 Finally closed down the plant leading to the unemployment of
the workers
 Deciding to employ loyal workers in other parts of the
company
Workers & Trade unions
 Instigating workers against the management by a
single worker
 Exorbitant demand by the workers including revision
of the existing wages to double the amount, a 16 per
cent bonus8 and a provision of six uniforms per year
for all the workers
 No willingness for peaceful mediation with the
management
 Negotiations would have lead to the resolution of the
dispute
 Furthermore the 6 workers filed the case against the
management after the closure of the plant without
accepting the closure compensation which has made
the matter even worse
4. Issues Gera must consider and
address before planning ahead

 Extent of seriousness of the issue at hand

 Rationality of demands of the workers

 Importance of the workers for the plant and the


strategic importance of the plant for the entire
business

 Loosening of boundaries between workers and the


management to understand their concerns
5. Lessons in IR learnt from this
case

 Strong trade unions which are not ready to enter into any kind of
reconciliation with the management might lead to overall loss of
the company as well as the workers
 Strong influence by a single person or some political factors may
arouse unrest among the entire workforce, hence should be
dealt effectively at the beginning itself by the management
 The ideal way to go about is to negotiate terms and conditions in
a peaceful manner between the management and the workers
and abide by the things agreed upon by such negotiations
 As the production rises, workers must be compensated
accordingly to keep them loyal and motivated
 Very strict boundaries of super – ordination and sub-ordination
can prove to be harmful for the company
 A responsible management must take into consideration the
welfare of its loyal workers in the long run
Thank you !

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