Dsp and Industrial Relations

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Case study report on Durgapur Steel PlantAyodhya Paikaray

Durgapur Steel Plant (DSP)
Durgapur Steel Plant is one of the integrated steel plants of Steel Authority of India Limited (SAIL), located in Durgapur, in the eastern Indian state of West Bengal. It has played a historically important part in the industrial development of India. It was set up in the late 1950s with an initial annual capacity of one metric tonnes of crude steel per year, the capacity of DSP was later expanded to 1.6 metric tonnes in the 1970s. A massive modernization programme was undertaken in the plant in early '90s, which, while bringing numerous technological developments in the plant, enhanced the capacity of the plant. After the commissioning of the modernized units, DSP is all set to produce 2.088 metric tonnes of hot metal, 1.8 metric tonnes of crude steel and 1.586 metric tonnes of saleable steel annually. The modernized Durgapur Steel Plant now has state-of-the-art technology for quality steel making. The modernized units have brought about improved productivity, substantial improvement in energy conservation and better quality products. The entire plant is covered under ISO 9001: 2000 quality management system. Wage structure DSP was one of the public sector companies under SAIL. So it was entirely financed by the central government. Therefore all the plants under SAIL have the same wage but incentive payments in each plant were based on plant output. The wages of steel workers compared favourably with those of other industries. The salaries of the managerial staff were in line with those of other public sector organizations but were lower than those in private sector. Industrial Relation DSP had 29,224 employees out of which 26,724 were workers and 2500 were executives. The lower level workers were local while the supervisory and managerial personnel were different parts of the country.

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Case study report on Durgapur Steel PlantAyodhya Paikaray

The labour–management relation was not good from the inception of the plant. DSP had three unions, the majority membership was with the union affiliated with the ruling party CPM (came to power in 1967). There had been a history of differences between the management and unions. Before modernization • The unions were showing “militancy” in DSP. Managers were generally reluctant to deal with the employees and preferred to ignore the situation or suppress misconducts. The supervisory and managerial personnel were demoralized. They were unable to exercise authority to their subordinates. The departmental representatives of the unions often told the mangers who should be given over time and who should be given what kind of job. • The workers were went on strike when some among them were temporarily transferred to another department where additional persons were needed and the parent department had no work. • There was also inter-union rivalry among unions in DSP. If a union failed to support a worker even if he had indulged in unauthorized behavior, another union would pick up his case and fight the management on his behalf. After modernization • The forum of unions that that was forged in early 1970s became very useful. Through the forum the management could talk to all the three unions together. • The unions were uncomfortable with the change in approach of the management but the workshop and the decisive action to implement the decisions reached the workshops, meetings, etc. helped allay the fears of the union. Collective Barraging and Workers participation in Management • DSP also entered into an agreement with the unions on wages and service conditions, including VRS and surplus employees.

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Case study report on Durgapur Steel PlantAyodhya Paikaray



Several management and union committees were set up to work on problems that had earlier led to prolonged disputes.



A joint-management-union committee created to discuss the issue in detail. Industrial...
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