Industrial Unrest at

Tesco Cranes
HRM - Session 4

Group 6
Bhavik Vakil
15P014
Dhara Babaria
15P019
Mouparna Saha 15P032
Vivek Sisodiya
15P050
Varun Baxi
15P055
Vikas Mendiratta 15P057

Background
1994 - Tesco Cranes Engineer Pvt. Ltd.
started by Gera
Tesco SME, 3 plants
2013 Annual turnover INR 1 billion, 3
plants with employee strength of 170
Gera

chairman of the company

kind and helpful
treated with dignity by workers
decision maker
Strong-willed, business minded

Emergence of Unions in
Tesco
July 2012 workers joined trade union named
Hind Sewak Sangh with leader Rohit Singh
First Phase 3 main demands:
Existing wages to be doubled
16% bonus
Provision of 6 uniforms per year for all workers

Second Phase workers agreed to suggestion by

Gera
Third Phase
Failed negotiations between union and management
Strike continued for number of days

Final Phase

Workers suspended for go-slow

Management wanted to take a disciplinary action
Workers went for stay-in strike
Sept 30, 2012 management declared a lockout

1. Factors contributed to the

breakdown of IR in TESCO
Ulterior motives of Rohit Singh played a role in unrest
of workers
Campaign of Rohit Singh instigating the workers that
INR 5800 as wage was too low
Failure of management to deal with workers demands
as managers were not willing to comply to their
demands
Failed attempt of Gera to showcase himself as a caring
person for the workers
Go-slow attitude and riotous behavior of the workers
Adamant attitude of the workers and the management

2. What were the expectations of each

partythe owner, trade union, workers
from the other parties
OWNER
Found Workers demands unjust
Wanted to have a control over the workers
Wanted to super ordinate the workers
Wanted to extract maximum from workers
in return of minimal benfits
Felt bargaining with the worker and
accepting their demand will lead to further
empowerment of the workers and union
Ego Clashes

2. What were the expectations of each

partythe owner, trade union, workers
from the other parties
Trade union
Rohit Singh leader of trade union wanted to
bask into the unrest and fulfill his personal
benefits using the ulterior means
Wanted to gain the hold and power in the
region
Trade union found the new source of
income by instigating the workers of TESCO
cranes.

2. What were the expectations of each

partythe owner, trade union, workers
from the other parties
Workers
Workers were instigated by the trade
union leader Rohit Singh
They wanted the 100% wage hike , 16%
bonus and 6 new uniforms every year
They wanted the say in deciding the
production targets
They felt they were being exploited and
were unjustly treated due to high
production targets and low wages.

3. What power in IR did different actors

in the case have, how did they derive
it, and how did they use it?
Owner
Being the owner of the company Gera had the
control over deciding the production targets
and overall industrial relations matter
He exploited his power by not bending to the
demands of the workers which were justified in
terms of low wages and high production targets
Suspended the workers
He used the unfair means like bribing the
conciliation officers
Enforced the lockdown
Finally closed down the plant leading to the
unemployment of the workers

3. What power in IR did different actors

in the case have, how did they derive
it, and how did they use it?
Workers & Trade unions
Trade unions used the unfair means to influence
and instigate the workers
By overly believing in the leader of union workers
put forward exaggerated demands like 100% hike
in wages
They were not ready to bend and negotiate 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
Strength of the trade unions and the role of
political leaders in such issues
Proper working conditions and appropriate wages
Proper negotiation skills
Understanding of workers situations and need of
well planned discussions before taking decisions

5. Lessons in IR learnt from this

case
A strong and enlightened labor movement helps
promote the status of labor without harming interest
of management
External parties (here Rohit Singh) often disrupt the
peace of factories as they do not understand the
working
Proper negotiation skills are required to be possessed
by both management and workers for peaceful and
effective bargains
Workers mostly want the basic need of appropriate
wages which need to be fulfilled
A strict super-ordination and sub-ordination
relationship is not always favorable for workers
Employees need motivations in form of incentives and
better working conditions