Dr.P.
Vamsi Krishna
[Link],
Dept of M.S,
RVR & JC CE,
Guntur
Introduction
Problem statement
Need for study
Objectives of study
Methodology of study
Analysis of study
Suggestions of study
Limitation of study
Conclusion
Sri Bajrang Jute Mills Ltd was established in the year 1936
at Guntur.
This organisation was established for the purpose of
manufacturing jute item like Jute twines, gunny bags etc.
The company became sick between the years 1985-1990,
and came out of sickness with the intervention of Board
for Industrial and Financial reconstruction (BIFR), New
Delhi under the special provision act 1985.
However several times the company faces at various
instances conflicts has risen between management and
unions in the organisation.
Recently the company is facing severe industrial unrest in
the working environment from the last July 2015.
The reason is the company made a lock out
stating that the employees are working under
unsafe conditions;
Whereas the from the workers point of view
the lockout is an illegal, and the company is
selling its assets to realtors.
However the Industrial Dispute between
management and workers union moved to the
Board of conciliation, Voluntary arbitration and
intervention of government efforts fails to solve
the dispute. At now, the dispute is under
adjudication (court).
To restore the peaceful environment in the
company between the workers unions and
management this paper suggests that there is a
need for workers participation in management
for decision making through cooperative
business.
To study the industrial relations scenario at
Sri Bajrang Jute Mill Ltd
To study the perception of employees
management , trade unions and Government
towards their need in maintaining cordial
industrial relations
To study the importance of workers
participative in management of at Sri
Bhajrang jute Mill Ltd
The Mill belonged to the Sahu-Jain group. Recorded substantial
losses from 1970 onwards. Lack of available fund; Meagre
Market share; About 3,000 workers were on the verge of being
thrown out of employment.
All the 14unions existing in the mill combined together and
provided leadership for a workers cooperative.
Workers prepared a revival package which was sanctioned by of
Board for Industrial and Financial reconstruction (BIFR).The Mill
under the workers management has gone for modernisation and
shifted attention to manufacture of non traditional items like soft
luggage material, floor coverings etc. Initially the workers hold
controlling interest to the tune of 52%.The state government
stake stands at 41%and the balance owned by banks and
financial institutions.
The mill established in the year 1959 at Silghat of Assam state
under the Assam Cooperative Societies Act and after much
struggle it was commissioned in the year 1970 with an initial
investment of 150 Lakhs. During 1984 for about 2 years due
to operational problems and huge accumulation of unsettled
liabilities, shortage of working capital and other infrastructural
problems the mill faced huge financial losses.
Several unions and Employee commitment and work involvement
significantly contributed the organisational survival
of Board for Industrial and Financial reconstruction (BIFR),Central
Government and state government support through financial
assistance the mill started improved its performance from
[Link] mill has not only been making profits, but was
awarded “A” grade among the state owned enterprises in Assam
,[Link] has achieved ISO 9001:2008 certification, EMS
certifications
The most important source of data was
collected through face to face meetings of mill
employees, observations, conversations and
informal discussions.
Formation of Sri Bajrang Jute Mills Cooperative Ltd from Sri Bajrang Jute
mills Ltd: The role of workers cooperatives
Phase I: Conceptualization of the action plan by Sri Bajrang jute mills and
their unions for revival and turnaround
Phase II: Testing out the workability of the plan and ensuring adequate
support through
Informal discussion and meetings with union leaders, rank and file
workers, experts, and well wishers
Phase III: Preparation of the blueprint for turnaround
Phase IV: Identification of the source of finance and working capital and
other infrastructural requirement
Phase V: Lobbying, dialogue, and persuasion at different levels of the
government, banks, and financial institutions
Phase VI: Submitting the revival plan to BIFR and, after its approval,
obtaining legal sanction from the Supreme Court for takeover
Phase VII: Recalling earlier employees, resume production, and attain
take-off.
After the takeover, the enterprise passes through
two phases: the recovery phase and the
developmental phase. In the recovery phase, an
attempt is made to restart commercial
production, restore profitability, ensure customer
support, obtain resources and democratise
management structure. The development phase
is characterized by efforts aimed strengthening
and consolidating the enterprise by introduction
of new production methods, modernisation of
plants and machinery development of new
products and exploration of new financial
support.
Mobilizing working capital
Restoring infrastructural services
Organising repairs and overhauling activities
Updating status report regarding assets and
liabilities
Initiating commencement of commercial
operations
Streamlining personnel
1. From the analysis it is clear that in Sri Bajrang Jute Mills,
Guntur, Workers Participation in Management is the need
of the hour.
2. At the same time management cooperation in few cases
is poor which could be improved by free flow of
communication and information with the workers by
educating and inducing a system of sharing the fruits of
participation.
3. Though the Workers Participation in Management
schemes is available at plant level, unit level in the Sri
Bajrang Jute Mills, but they need to be actively functioning.
4. Once cooperative society came into picture the company
has to change the HR Policies suggesting that there should
be only one trade union in a mill and recognised one for
participation in decision making.
The data opinions, observations and
conclusions expressed here are collected by
survey and literature provided by the other
Jute mills in the country.
Cooperative as a form of organisation promotes the concept of self-
management and collective ownership. Ownership of the capital by
workers influences the style of functioning of the Worker owned
enterprise.
Finally this paper explains the need for formation of Sri Bajrang Jute
mills Cooperative Ltd and phase wise transformation and the immediate
tasks of takeover of worker Ownership Company. The cooperative was
formed out of a family-owned company primarily to save the jobs of the
jobless employees
Workers' takeover of sick enterprises has taken place not by choice but
by necessity in the context of viable or potentially viable enterprises and
plants. In most cases, the takeover was necessitated by adverse
economic circumstances and an instinct of job preservation or
preserving workers' live livelihood and work places.
Care for growth and development, joint effort of labour and
management, role realization and mutual trust are important factors in
promoting Industrial relations of the Jute Industry in India.
