ABS

TRA
CT
We
begi
n by
a
liter
atur
e
revi
ew
disc Aayush Sharma
ussi (B14126)
ng
the Ashish Bhatia

(B14138)
Gagandeep Singh
(B14143)
Karan Chhabra

Contents
Introduction................................................................................................................ 2
Literature Review....................................................................................................... 2
Industrial disputes in the recent past.........................................................................3
Legislative provisions to prevent and resolve industrial disputes...............................5
The Trade Unions Act, 1926:.................................................................................... 5
Industrial Employment (Standing Orders) Act, 1946...............................................5
Industrial Disputes Act, 1947:.................................................................................5
PRICOL CONFLICT.................................................................................................... 7
COMPANY OVERVIEW:................................................................................................. 7
COLLABORATIONS:.................................................................................................. 7
THE PRICOL STRUGGLE.......................................................................................... 8
Genesis of the Struggle........................................................................................... 8
Timeline................................................................................................................... 8
STAKEHOLDERS VIEWPOINT.................................................................................... 10
Owners/shareholders:............................................................................................ 10
management:........................................................................................................ 11
Workers................................................................................................................. 11
Police & Government............................................................................................. 11
Trade Unions.......................................................................................................... 11
GRAZIAONI CONFLICTS......................................................................................... 12
Overview.................................................................................................................. 12
The Timeline............................................................................................................. 12
STAKEHOLDERS VIEWPOINT.................................................................................... 14
Owners (Shareholders).......................................................................................... 14
Managerial Personnel............................................................................................ 14
Workers................................................................................................................. 14
Police and Government......................................................................................... 14
Trade unions.......................................................................................................... 14
STAKEHOLDER ANALYSIS (TABLE 1)...................................................................16
Learnings and conclusion.................................................................................... 17
References............................................................................................................. 19

Industrial violence & Industrial

Relations
- Case studies of Graziaoni and Pricol conflicts

Introduction
Indian industrial relations have
been shaped primarily by three
legislations which are The Trade
Unions Act, 1926 (TUA); The
Industrial employment Act, 1946
(IEA) and the Industrial Disputes
Act, 1947 (IDA). Trade unions all
over are viewed as a threat by
employers and their independent
identity and power is considered as
a hindrance among employers for
restructuring. In Indian context, the
labor unions have been regulated
by state which supported their
affiliation on account of vote banks.
However with the advent of
economic reforms in nineties along
with the focus of the government
to attract more capital, there are
evidences of shift in government
labor policy in favor of employers.
This impacted the labor relations in
different industries differently. In
some industries it resulted in
higher employment but more of
contract workforce at the cost of
permanent workers. However it
resulted in favor of employers
which could formulate a system of
policies based on their interests. It
can be said that disruption of
peaceful harmony among unions

with shift of power paved the way

for industrial violence.

Literature Review
According
to
Sen
(2011)
multinational
companies
have
proved
their
excellence
in
operations but the existence of
best practices is not so evident,
moreover many of the practices
implemented by managers have
actually caused unrest and inferior
industrial relations. There are
evidences that management at
multinationals
have
failed
to
understand the industrial laws and
prevalent
cultures
in
their
geography of operations be it India
or other emerging countries. The
issues of unrest among workers
have ranged from pay differentials
to treatment differential of contract
workers and recognition of trade
unions.
As per Stephen Frenkel and Sarosh
Kuruvilla (2002); in the era of
globalization
the
nature
of
employment
relations
is
determined by the interaction of
three forces which are different and
independent of each other
competition, industrial peace and

employment income protection.

The author also gave evidence that
the three forces are affected by
other five factors which include the
intensity of globalization, strength
of the union, features of labor
market, strategy for economic
development and how responsive
the government is to workers.
Based on the interaction of the
three forces and factors affecting
them the study showed that the
employment relations in India show
unstable patterns with lack of
flexibility for changing leading to
employer and union dilemmas.
However the supportive response
of government to workers concerns
along
with
strong
unions
maintained the force of industrial
peace and employment income
protection stable and strong.
The Indian industrial relations
system has been chained under old
shackles of pre independence era
and has yet to become dynamic.
Characterized
by
high
centralization with close union
relationships of state being the
mediator limited the development
of a strong foundation for peaceful
relations. Major challenges for
Indian system are to cater to the
diverse demographical profile of
workers along with understanding
the needs of women workers. (Hill,
2009)
According to Sundar (2010), the
response of the State, trade unions
and
employers
towards
the
dynamic
environment
and
globalization era post 1991 shaped

the
structure
of
employment
relations. The industrial relation
system was characterized by the
rules of state institutions before
LPG policy. The LPG policy made
the environment more dynamic
and complex with states making
amendments to labor laws along
with central laws to attract capital
to
their
regions.
Managerial
strategies were devised in pretext
of labour flexibility to weaken
power of labor. The focus was
hiring of contract workers a lot to
circumvent the laws. As per the
case fact In Indian manufacturing
industry the share of contract
workers in comparison to total
workers increased to 26.4% in
2004-05 from 14.6 % in 1995-96.
The forces interacted to create an
environment which gave flexibility
to workers but also reduced the
union power.
Indian industrial relations have
evolved through four phases which
are 1950 to mid-1960s, mid 1960s
to 1979, 1980 to 1991 and 1992 to
2000. The LPG phase of 1992 to
2000 led to increased flexibility of
labor
employment,
less
government
intervention
and
stronger managerial power. This
had both a positive and negative
side to it as though it led to more
employment but it led to reducing
power
of
organized
labor.
(Bhattacherjee, 2001)

Industrial disputes in
the recent past
Indian industry has undergone
major
changes
since
the
liberalization in 1991. The economy
is more open to the global
competition therefore more and
more industries are coming up in
India. Most of these companies
prefer management of work force
through various committees which
have led to a decline in the trade
union activities. The increase in IT
industries and other knowledge
based
service
industries
has
further decreased it. But in the last
decade, we have again seen a rise
in number of unrests and disputes
in the industry. Some of the major
incidents are as follows:
Graziano Transmissioni : 2008, a
mob of 200 dismissed employees
forcefully barged in and in one of
the worst cases of industrial
violence cases, killed the MD/CEO
of the unit
Graphite India Ltd Powmex Steel
division:
2011, Car of DGM
(operations) was stopped by some
suspended workers and set on fire
which proved to be fatal

Allied Nippon: 2010, the assistant

general manager was stoned to
death by the angry worker who
were being replaced by the
cheaper and exploited contract
workers.

Pricol:2009,Vice-president(human
resources) was
killed
near
Coimbatore after the company
sacked few employees on grounds
of indiscipline

Maruti Suzuki: 2012, A company

official was burnt to death by a
mob of workers demanding hike in
wages
and
various
other
allowances.
Honda: 2005, Violence and lockout
due to unsatisfactory working
conditions and managers behavior.
All these incidents in the recent
past indicate that unrest and
dissatisfaction toward managerial
decisions have made the workers
resort to a violent alternative. The
following figure shows the reasons
of strikes since 2005. It leads to
loss of human life as well as huge
monetary loss to the companies
.

Legislative provisions
to prevent and resolve
industrial disputes

conduct of any trade or business,

and includes any federation of two
or more Trade Unions: Provided
that this Act shall not affect

In the growing global economy,

industrial violence is a major
concern for the Government. It
discourages
MNS
and
global
companies from setting up their
business in the company. But,
currently the legislative system
seems to be inadequate to address
the changes brought about by the
globalization. There are 44 central
labour laws and above 100 state
labour laws, many of which were
drafted way before independence
and fail to address the new
changes. The three central acts
governing industrial disputes are:

(i) any
agreement
between
partners as to their own business;

The Trade Unions

1926: Enacted by the

Act,

British
Government
under
the
recommendation
of
Royal
Commission of Labour. The act
covers law relating to formation of
trade unions. Trade Union means
any
combination,
whether
temporary or permanent, formed
primarily for the purpose of
regulating the relations between
workmen
and
employers
or
between workmen and workmen,
or
between
employers
and
employers,
or
for
imposing
restrictive
conditions
on
the

(ii) any agreement between an

employer and those employed by
him as to such employment; or
(iii) any agreement in consideration
of the sale of the goodwill of a
business or of instruction in any
profession, trade or handicraft.

Industrial Employment
(Standing Orders) Act,
1946: This act aims at laying
down the laws for defining the work
contract and conditions of work by
issuing standing orders. The main
aim of the act is to remove any
undue flexibility of the employer to
change terms of job, hours, timing,
leave grant, productivity measures
etc. The standing orders mandate
that the employer classify its
employees,
state
the
shifts,
payment of wages, rules for
vacation, rules for sick leave,
holidays, rules for termination
amongst others

Industrial Disputes Act,

1947: The act has its roots in the

colonial system. Section 81A states

that strikes and lockout cant be
conducted. If there is a dispute it
should be resolved by Government
appointed judicial agency. The
judicial agency will decide on an
award to resolve the matter.
The two ways to resolve disputes
are:
Free collective bargaining: Trade
Union and management negotiate
terms
and
conditions
of
employment. Either party may give
threat of strike or lockout.

Company adjudication: Case is

heard
in
labour
court.
Strike/lockout is not necessary.
Thus industry is not affected and
the case is heard in a court.

With the increasing number of

cases of industrial disputes and
violence, there is a need to review
these laws and understand factors
to be considered in deciding the
future course.

PRICOL CONFLICT
COMPANY OVERVIEW:
Established
in
1972
and
commencing
commercial
production in 1975 at Coimbatore,
with an initial installed capacity of
4
Lakh
number
Dashboard
Instruments, Premier Instruments &
Controls Limited, is an automobile
ancillary unit and it later diversified
into Electronic Control Instruments,
Precision Machine Tools, Panel and
Sensor Instruments for Defense
and Industrial Gauges. Its main line
of business remains that of
manufacturing
automotive
instruments and allied accessories.
To grow its business in the
upcoming automotive cluster of
Gurgaon and serve the existing
customers in less time, company
installed an assembling unit at
Gurgaon, Haryana with an installed
capacity base of 5 Lakh numbers of
dashboard
instruments.
The
commercial production in Gurgaon
unit commenced on April 1998.
Emerging as a market leader, with
a share of about 50% of all the
OEM requirements of the domestic
market, company increased its
installed capacity from 4 Lakh
numbers to 34.5 Lakh numbers of
Dashboard instruments catering to
the needs of almost all the vehicle
manufacturers along with meeting

40
%
of
the
demand
of
replacement market through a
countrywide distribution network.
Starting in 1985, PRICOL begin
exporting its products with a
turnover of Rs 2.88 Lacs, which
grew to Rs 752 Lakhs in financial
year ending 31st March 1994.
Company is the first among the few
and only one in the automotive
instrumentation sector to obtain
the coveted ISO 9001 Certificate in
the country.

COLLABORATIONS:
1. During the year 1985, the
Company entered into technical
collaboration
with
M/s.
NS
International Ltd., U.SA. (Subsidiary
of M/s. Nippon Seiko Co. Ltd.,
Japan) for up gradation of existing
Technology in the manufacture of
Dashboard Instruments for Two
Wheelers. The technology has been
fully absorbed.

2. During the year 1991-92,

company entered into technical
collaboration
with
M/s.
Nippondenso Co. Ltd. Japan for up
gradation of Technology in the
manufacture
of
four-wheeler
Instruments, thereby improving
upon its existing quality levels and
manufacturing methods to keep

pace
with
the
international
technologies in the instrumentation
field.

THE PRICOL
STRUGGLE
The Pricol struggle is one of its kind
as there were so many parties
which came together for the
struggle. All permanent worker,
ancillary unit workers and contract
laborers joined the union led by
AICCTU. It was also supported by
the law students, civil rights
activists and Dalit organizations.
The struggle was against several
unjust practices followed by the
management:
sham
contract
labour system, satellite vendor
systems, victimization of laborers
through closure, denial of wage
increase
and
termination
of
workers were few of them. Thus
workers demanded the government
to intervene and pass orders under
Section 10B of Industrial Dispute
Act 1947.
The struggle which
started in 2007 and continued till
2009 had a very frightening end.
Workers
bravely
fought
with
management and succeeded in
making strikes which lasted for
several
months.
The management tried to threaten
workers by branding them as a
Maoist-Leninist leadership. The
uproar and struggle led to the
murder of Pricol HR vice-president
Roy George in Coimbatore.

Genesis of the Struggle

In order to increase margins,
management
led
to
unjust
practices like sham Contract labour
and Satellite Vendor system.
To weaken the collective bargaining
it had developed five independent
unions. Worker were devoid of their
rights for decades which led to
eruption of the anger amongst the
labours.
The final blow that led to disruption
was when the vanguards of the
newly formed unions in plant 1 and
3 were vindictively transferred.
They received an overwhelming
support of the permanent workers
as well as the workers of the sham
contract labour and satellite vendor
systems, which led to a powerful
strike from 3rd March, 2007.

Timeline
Phase 1
This phase was marked by strong
discontent by employees in the
form of strikes. More than 3000
workers were involved.
9-03-2007: Women played an
instrumental role and staged a
Road Roko in Coimbatore.
10-3-2007:
Dharna,
strikes
continued in front of the factory.
25-03-2007: Fast in Coimbatore city
by 4000 workers.

28-03-2007: Matter was taken up in

state assembly.
3-04-2007: Police resorted to lathi
charge outside the factory to
stabilize the mob.
The management announced a
partial lockout for 164 workers, 11
vanguards, and break in service for
134 workers.
10-04-2007:
Strikes
continued
demanding
government
to
intervene
pass
orders
under
section 10(1) & 10(3) of the
Industrial Dispute Act 1947.
The unions and the management
obtained stay on the order
prohibiting the continuation of
strikes and prohibiting continuation
of lockouts respectively.

Phase 2
Unions wanted government to pass
order under section 10B of
Industrial Dispute Act 1947.
23-04-2007: Workers and children
covered their faces with black cloth
in protest.
Even other factory workers sent
telegrams to government for 10B
orders.
24-05-2007: Government finally
passed 10(1) and 10B orders. Thus
management was ordered not give
effect to break in service, partial
lockouts and not to employ recruits
taken during strike period.
26-05-2007: Strike was withdrawn.

Phase 3
The management then turned to
victimization measures. Satellite
Vendor Units were closed down and
the workers associated with it were
terminated.
Wage increase was denied by the
firm
which
violated
the
settlements.
13-07-2007: Workers were attacked
by local hooligans.
28-07-2007: Hundreds of workers
gathered for a public meeting.
13, 15, 17 -08-2007: Slogans were
raised by workers and 114 workers
were
demoted.
Management
refused to give wages to workers.
Pricol workers collected thousands
of
signatures
demanding
amendment in the Trade Unions
Act. This amendment was aimed at
providing recognition of trade
union through secret ballot.
5-04-2008: Massive hunger strike
in Coimbatore.
10-06-2008: Management created
a concentration camp for the
partially locked out workers who
returned to work.
21-08-2008: More than thousand
workers courted arrest. 16 workers
were arrested and management
partially locked out 170 workers.
24-08-2008: Conciliation officer
helped to arrive at a conclusion.

Only 16 workers arrested will be

partially locked out.
2-8-2008:
Pricol
workers
participated
in
the
AICCTUs
national
conference
and
got
elected as leaders of AICCTU.

19-09-2009: 42 employees were

dismissed for disciplinary reasons.
On 22-09-2009 Pricol VP HR was
murdered on an issue regarding
reinstating 42 dismissed workers.

Phase 4
Management started with some
tactical and resorted to divide and
rule. The General Secretary of the
two fighting unions went over to
the side of the management.

STAKEHOLDERS
VIEWPOINT

10-12-2008:
The
management
deducted salaries of 183 workers.

Promoters and their associates led

by Mr. Vijay Mohan own 35.83% of
the companys shares and thus are
the majority shareholders of the
company. Along with them, DENSO
Corporation, Japan holds 12.5% of
the
companys
shares.
The
institutional
investors
(Mutual
Funds) along with public hold the
other major chunk of 44% of the
PRICOLS shares.

12-12-2008:
dismissed.

41

workers

were

18-12-2008: Two unions conducted

their elections and leaders were
elected unanimously.

Phase 5
Unrest leading
orders.

to

second

10B

15-06-2009: Beginning of indefinite

fast by Pricol workers.
30-06-2009: Leaders of various
parties assemble to speak on a
calling attention motion on the
indefinite fast of Pricol workers.
Assembly concluded with demands
of workers being accepted.

YEAR
2000
2009

DOMESTIC SALES
179.10
476.50

OWNERS/SHAREHOLDERS:

IMPORTANT NOTE: Figures given

pertain to 2007, when the conflict first
started. Displayed below in the picture
is 2010 shareholding pattern for a
comparison.
For gauging the sentiments of the
shareholders, below is a snapshot of
the financial performance overview
between 2000 and 2009:

EXPORTS
22.19
137.50

TOTAL SALES
201.3
614.0

Increase in Total sales to the tune

of about 205 % along with a major
increase in exports and thus
reduction of exposure and reliance
of the company to vagaries of
Indian economy is enough to
portray the comfortable position
enjoyed by the shareholders of the
organization.
To maintain the pole-position in
midst of cutthroat competition and
increasing number of auto parts
vendors including the ones having
global presence such as Capparo,
continuous growth was needed to
stave off any hostile attempt of
takeover of the company. Also, it
was in favor of the Shareholders
that any lockout/strike should be
refrained to and the conflict is
permanently resolved. This is
because, longer the period of nonproduction, greater the decrease in
revenue and profits of the firm
which could be distributed to the
shareholders. But, also at the same
time, windfall gains for the worker
would
not
find
favor
with
Shareholders for the same reason
of dilution of profits for them.

MANAGEMENT:
Management had one of the most
important stakes in the whole
episode as it was on the front end
dealing with Trade unions. Also, the
direct effect of any judgment in this
regard would have had a direct

impact on the day to day

functioning of the plant in terms of
work culture operations of the
Plant.
To decrease the cost of operations,
management resorted to the use of
Satellite vendor systems and sham
contract
labour
to
decrease
dependency on permanent workers
and thus their bargaining power.
On 03.04.07, workers entered the
factory premises and staged a
strike up to 10 pm. In retaliation of
this event management reacted
with partial lockout for 164 workers
and then for another 11 vanguards
and break in service for 134
workers.
But for the management, the
darkest day in the conflict was
21.09.09, when Roy George, Vice
President (Human Resources) was
attacked with rods by a group of
workers and he succumbed to the
injuries couple of days later.

Workers
Workers were devoid of their basic
rights and it was just on their part
to protest. The ordinary workers
who depend on the organization for
their livelihood, who work hard to
earn more incentive were the
ultimate sufferers.
The workers staged protests and
strikes
and the management

resorted to victimization,
fuelling the agitation.

thus

This agitation and hatred exceeded

its extremes when the workers
attacked the VP HR.

Police & Government

Police successfully controlled the
mob during the times of strikes and
lockouts. However this led to
increased agitation amongst the
workers. The police also went
against the worker by subjecting
them to Lathi Charge.
The
government
intervened
whenever necessary and supported

the rights of workers. They passed

required
orders
whenever
necessary. However prompt actions
from the government could have
prevented the agitation at the early
stages.

Trade Unions
Trade unions which were meant to
support the workers were not able
to fulfil its responsibility. Leaders of
these unions were supporting
management to promote their selfinterests.

Graziaoni Conflicts
Overview
Noida, is situated next to capital of
India and has been a lucrative
place
for
many
multinational
corporations to open their offices.
Graziano Transiminsioni, which is
an Italy based manufacturer of
automobile components was one
among over 24 MNCs located in
SEZ, Noida. SEZ refers to the
special economic zones being
pushed by the government of India
to move ahead in its path of growth
and industrialization.
On September 22, 2008 the Chief
executive officer (CEO) and head of
Indian operations, Lalit Kishore
Chowdhary, died in office premises
due to head injury. It is noted that
there was a meeting with some of
the dismissed employees which
broke into violence. Police security
which was present there did not
arrested anyone at the time of the
death. It was only in the evening
that workers were arrested for
alleged murder.
This case presents a very good
example of the happenings and
suffering of not only with the
workers at Grazioani but also
across the country. It shows that
how every stakeholder tries to
maximize their benefit from the

situation. This includes capitalists,

police,
employees,
politicians,
corporate rivals and trade unions.
What initially maybe looked as a
murder can also be interpreted as
workers becoming the targets of
harassment by the managers and
facing repression from the state.

The Timeline
Situation before 2 December, 2007:
Working hours increased from 8 to
12 in 2 shifts. Workers allege that
no weekly holidays were given and
those who did not comply were
thrown out.
2 December, 2007: First disputes
over raise of wages by employees
on the claim that punch time cards
were not done properly.
Worker wanted to form a trade
union, but their application got
rejected three times by labor office.
It is said that labour office was
working in collusion. So they
affiliated with AITUC, Trade union of
CPI party.
4 December, 2007: A settlement
took place.
7 December, 2007: Settlement
repudiated by employer. AITUC
sided with the management to

restore
normalcy
for
later
negotiations. Workers refused to
accept it and AITUC abandoned the
workers.
Such determination from workers,
forced management to enter in a
written agreement in presence of
DLC, Deputy Labour Commissioner.
Wages
were
revised
homogeneously
incrementing
Rs1200 per year.
February 2008: Management hired
400 contract workers.
Regular workers claimed that these
contract workers used to bring iron
rod and used to threaten regular
workers.
A security team was also appointed
in
February.
Regular
workers
perceived it as a battalion of armed
goons more than security with a
purpose
of
replacing
regular
workers with contract workers.
May 2008: 5 apprentices or trainee
workers were dismissed. Workers
demanded that the 5 dismissed
trainee workers be reinstated back.
On this demand, 27 more workers
were suspended.
It is claimed that employers at this
time reversed the exhaust fan,
allegedly to teach workers a lesson
which led to increase in working
temperature
beyond
tolerable
levels.
30 May 2008: 30 workers were
locked
out
charged
with
committing
affray.
Each
was
released only after the signed a

bond of Rs. 1 lac, which they would

have to pay if they repeated the
offence.
19 June 2008: 97 workers locked
out.
190
permanent
workers
continued to work inside.
Workers now affiliated to CITU,
trade union front of political party
CPM. Again CITU sided with the
management to restore normalcy
for later negotiations. Workers
refused to accept it and CITU, also,
abandoned the workers.
Workers then joined HMS, trade
union front of Rashtriya Lok Dal
Party.
2 July 2008: Remaining 192 regular
workers also locked out.
11 July 2008: Settlement in
presence of DLC at Noida. But
instead
of
reinstating
27
suspended workers as decided in
settlement,
only
12
were
reinstated.
In that time, workers were pressing
the issue and employer got a work
order barring any protest or
agitation within 300 meters of
factory premises.
Further meeting were held but they
were inconclusive.
Finally, it was agreed by HMS
leaders
that
workers
would
apologize
on
or
before
22
September 2008
22 September 2008: workers
gathered to apologize but only 2
were allowed to enter at a time.

Allegedly, at the time of apology,

office security personnel forced
workers to write that they had
indulged in violence. Some workers
wrote, maybe under pressure,
while others refused. A scuffle
started and hearing the commotion
other workmen and security goons
entered the gates. They fired in the
air. And many workers were injured
as well.

The issue
sensation.

Police did not intervene and police

officer was suspended later for
dereliction of duty.

The death of CEO L.K. Chaudhry

was unfortunate. In the press
release,
they
blamed
the
individuals with no relation to the
company for carrying the attack
and commotion.

Situation got out of hand, and CEO

died because of head injury. Was it
a murder is still not confirmed and
who did it? Was it some double
crossing goons as stated by CEOs
brother or was it because CEO
jumped from first floor to ground
floor looking at the commotion as
stated by his driver?
In the evening, media defamed the
workers and arrests were done by
police. 63 people were charged
with murder and 74 were arrested
for rioting and affray.
Since then, many workers sat on
October 2, 2008 for protest at
Jantar Mantar. But Government led
by
chief
minister
Mayawati
appointed special police protection
for other industrialists security.
Serious
concern
has
been
expressed by many on the issue.
And there has been a sharp decline
in Indias workforce from organized
sector.

became

national

Stakeholders viewpoint
Owners (Shareholders)
Italian manufacturer firm, Graziano,
had setup their plant at Noida
mainly for cost cutting. Most of the
produce was exported.

Managerial Personnel

Prime motto of mangers is usually

set as increasing the operating
efficiency and reducing cost. It is
possible,
that
they
preferred
contract labour because they came
at lower wages (Rs.2200 as
compared
to
Rs.
3200
of
permanent workers) and could be
laid off during non-peak season
easily.

Workers
Those
who
were
conducting
protests
for
their
jobs
and
livelihood were put behind bars,
citing murder charges. They were
also injured in the incident and
rested in help of trade unions led
by political parties to support them.
The incident actually went against
them as the media portrayed them
as murderer and they were easily
laid off after the incident.

Police and Government

It is the job of police to preserve
law and order in the state. Police
though present at the time of
incident did not do anything.
Apparently, they had less power as
compared to management as all of
those who were arrested those
supporting the management were
released. They have arms and
power to overtake any situation
esp. in case of commotion. But it
useful only if they act as per the
law and not as per the wishes of
rich.
The police officer was suspended
later for dereliction of duty.

Government
industrialists
security.

supported
other
by providing extra

Trade unions
HMS was the one who finally took
their issue. These trade unions are
usually the wings of political
parties. Though their primary job is
to
identify
common
interests
between employee and employer
so that a negotiation can be
established but apparently, many
trade
unions
have
political
interests. These trade union are
formed under Indian Trade Union
Act 1926.

Stakeholder Analysis
Stakeholders

Involveme
nt in
Issue

Impact of
issue on
stakeholde
r

Interest
in Issue

Influence
/ Power

Resources /
Position

Firm
owners:
Sent their
consultant
s,
appointed
India head
and
interacted
with
Italian
Embassy

Setup the
plant
in
1998
in
India.
Most
output
was
exported.
Hence
cost
cutting
was
the
major
concern

High
power
because
they
have
invested
their
capital.

100% Owner
of the Indian
subsidiary. A
multinational
corporation
with
high
financial
resources

Factory
reopened
after
a
week
of
CEO's
death.

Managem Laid
off
ent
employee
s.
CEO
killed

Cost
reduction,
operating
profit
of
factory

Power to
lockout.
Power to
set
wages
and the
strength
of
workers.

High position
in terms of
contact with
politicians,
police, labor
courts
and
other
government
authorities

They could
now easily
target
workers in
media and
laid
them
off.
They
finally got
contract
labor on roll
easily

Workers

Their jobs,
livelihood
was
at
stake

Vulnerabl
e
migrants
from
other
states,
regularly
subjected
to
threats,

Denied their
rights. Could
not form a
union.
Approached
trade unions
of such as
HMS,
CITU
which
were
fronts
of

Many
arrested,
with
charges of
murder.
Other laid
off from the
job.

Italian
firm

Conducte
d protest
for better
workplace
and
replaceme
nt
of
permanen
t
employee

s
by
contract
employee
s.

and
abuse.

political
parties

Trade
unions

Initially
AITUC and
CITU
abandone
d
the
labour.
Finally
HMS took
the issue.

Political
interests.
Job
-To
identify
common
interest
between
employee
and
employer
and
to
facilitate
negotiatio
ns.

Generally
divided
on
political
lines.

Powers under
the
Indian
Trade Union
Act, 1926

Various
trade
unions
came
together
and did an
independen
t study to
show
the
suffering of
workers.

Police
and
Governm
ent

Was
present at
the time
of
incident,
but
did
not
do
anything.

It
was
their job
to
preserve
law
and
order

Apparentl
y,
they
had less
power as
compare
d
to
manage
ment as
all
of
those
who were
arrested
those
supportin
g
the
manage
ment
were
released.

They
have
arms
and
power
to
overtake any
situation esp.
in case of
commotion.
But it useful
only if they
act as per
the law and
not as per
the wishes of
rich

Police
officer was
suspended
later
for
dereliction
of
duty.
Governmen
t supported
other
industrialist
s
by
providing
extra
security

Learnings and
conclusion

area. Daewoo, Yamaha Motors and

Goenka Power also have witnessed
use of power in dealing with
conflicts with the workers.

More sensitization towards the

grievances of workers is required.
Management should not push them
to the limits of rebellion.

Questions remains whether it was

just a death of a CEO or was there
a huge pain of workers dying
everyday which is buried inside the
official reports. Who committed the
real violence? Is the problem much
deeper than it appears?

Thorough investigation should be

done so as to bring justice to the
truly deserved. Trade unions should
be work independent of political
parties and other influences so that
they dont act as police force to
keep a check on workers.
Serious concern need to be be
expressed in terms of huge Indian
workforce which continues in
unorganized sectors.
The profit and growth of the firm
should be shared with workers.
Their wages should increase with
respect to set benchmarks and
working conditions should be
improved.
Graziano confict was not the first of
its kind to have occurred in the

We understand that aggressive

management policies do not work
in long term and present loss to
both parties.
Moreover, it does not take long for
labor related issues to gain
escalation and need to be handled
very sensitively.

Finally, most important aspect is

any industrial dispute case is
communication
between
management and workers. It needs
to be built and should not stop at
any level.

References

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perspective. Industrial Relations Journal, 244-260.
Hill, E. (2009). The Indian Industrial Relations System: Struggling to Address the
Dynamics of a Globalizing Economy. Journal of Industrial Relations, 395-410.
KURUVILLA*, S. F. (2002). Logics of Action, Globalization and changing employment
relations in China, India, Malaysia and the Philippines. Industrial and Labor
Relations Review, 387-411.
Sen , R. (2011). Multinationals & Industrial Relations in India. The Indian Journal of
Industrial Relations, 367-383.
Sundar, K. S. (2010). Emerging Trends in Employment Relations in India. The Indian
Journal of Industrial Relations, 585-595.
Krishnan K. (2008). Who committed the real violence at Graziano Transmissioni?
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from
the
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Wide
Web
on
March
11,
2015.
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Press release by Oerlikon Graziano India, Delhi - India, September 22 -2008 titled
Incident at Oerlikon Graziano India. Accessed from the World Wide Web on
March
11,
2015.
http://www.oerlikon.com/ecomaXL/files/oerlikon_Oerlikon_Graziano_India

CGPI.org Graziano Trasmissioni workers. Condemn the persecution of workers by the

state! The struggle for justice shall continue! Accessed from the World Wide
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News Articles :
Lalit Kumar, TNN, Sep 23, 2008, 01.24AM IST : Dismissed employees beat CEO to
death
London Times, Published September 23, 2008 : CEO Bludgeoned to Death in India
by Fired Employees

Website accessed via the World wide Web as on 12 th March , 2015:

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