Industrial Relations

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IPM Professional Qualification in Human Resource Management
Management Case Study 8
Industrial Relations

Batch ID PQHRM 22/07

Question 6
The problems that have arisen, findings have been considered and recommendations have been given from points 1 to 5.

Question 1

Company could not or did not adapt to the changing market conditions. They did not change their strategies of production and did not properly analyze the market conditions. Due to the incompetence of the management the company was taking a hit financially. But the management instead of rectifying what went wrong took the easy way out and blamed the labour for not giving their maximum output. There was no industrial peace and industrial peace is vital to ensure the smooth flow of work. Trade unions that have political affiliation were main reason for the ongoing industrial dispute and their dissatisfaction in the existing government did not help. In addition to this they were two trade unions that had an internal dispute among themselves. The “Bolts & Nuts” terminated several employees in an illegal manner. Certain employees who were alleged with pilfering were terminated without a disciplinary enquiry or issuance of a show cause letter. Certain employees were terminated for picketing whereas picketing and striking is legal. The union and its representatives entered and agreed upon a collective agreement without properly considering the terms and conditions of the agreement. This could be attributed to the lack of negotiation skills. Management did not ensure that the workers had the proper tools and skills to increase or even maintain their production levels. The machinery provided for the workers to work with were outdated and not in proper working order. Management resorting to illegal means of terminating employees and closing down the factory even before the commissioner or labour made his/her final verdict. The environmental authority’s pressure...
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