A

SUMMER PROJECT REPORT

ON

INDUSTRIAL RELATION
OF
NALCO

SUBMITTED BY:
TRUPTIMAYEPARBATI TRIPATHY
REGD.NO. - 0706260030

SUBMITTED TO:

BIJU PATNAIK UNIVERSITY

OF
TECHNOLOGY, ROURKELA
SESSION: 2007-2009(MBA)

UNDER THE GUIDANCE OF

MR R.N UPADHYAYA

DR. S.K SARANGI

(HR MANAGER )
RIMS)

(Faculty of

DECLARATION
I TRUPTIMAYEE PARBATI TRIPATHY do hereby declare that this summer
training project work entitled INDUSTRIAL RELATION in smelter plant,
Nalco, Angul is submitted by me in partial fulfilment of the requirement for the
award

of

the

degree

of

MBA,

in

ROURKELA

INSTITUTE

OF

MANAGEMENT STUDIES, approved and recognised by BIJU PATTNAIK

UNIVERSITY OF TECHNOLOGY. This research work is my own and it is not
submitted to any other institution or university nor published at any or anywhere
and any time before
Signature

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to the following people
without whose help, support and encouragement; the successful completion
of project would not have been possible. I want to thank Dr. S.K SARANGI
my faculty guide, for helping me and clarifying my doubts as and when they
arose.
I would like to extend my sincere gratitude to Mr.R.N UPADHYAYA , HR
MANAGER, NALCO, Bhubaneswar, for giving me an opportunity to do the
project in her company and would like to deliver my special thanks to her, for
giving her valuable time and encouraging me to put in my best efforts.
TRUPTIMAYEE PARBATI
TRIPATHY
REGD.NO.0706260030

C E R T I F I C ATE O F T H E C O M PAN Y G U I D E
This is to certify that the Project Report entitled
INDUSTRIAL

R E L ATI O N

IN

N ATI O N A L

AL U M I N I U M

C O M PAN Y ( N A L C O ) s u b m i t t e d i n p a r t i a l f u l f i l l m e n t o f t h e
MASTER

OF

ROURKELA

BUSINESS
INSTITUTE

AD M I N I S T R ATI O N
OF

MANAGEMENT

(MBA )

to

STUDIES

embodies the result of bonafied research work carried out by

M s . T R U P T I M AYE E PAR B ATI T R I PATH Y u n d e r m y g u i d a n c e
and supervision.

Date:15/08/2008
M R R . N . U PAD H YAYA
(Manager of HRD Smelter Plant NALCO)

C E R T I F I C ATE O F T H E I N S T I T U T E G U I D E

This is to certify that the Project Report entitled

INDUSTRIAL
C O M PAN Y

R E L ATI O N

(NALCO)

T R U P T I M AYE E

is

PAR B ATI

IN
an

N ATI O N A L
original

T R I PATH Y

AL U M I N I U M
work

bearing

of

ms

university

Registration Number 0706260030 a student of ROURKELA

INSTITUTE OF MANAGEMENT STUDIES, Rourkela and is
being submitted in partial fulfillment of the requirements for
the

award

of

the

degree

A D M I N I S T R ATI O N

of

of
Biju

MASTER
patnaik

OF

BUSINESS

University

of

Tec h n o l o g y,R o u r k e l a . T h e s u m m e r p r o j e c t r e p o r t h a s n o t b e e n
submitted

earlier

to

this

University

or

to

any

other

U n i v e r s i t y/ I n s t i t u t i o n f o r t h e f u l f i l m e n t o f t h e r e q u i r e m e n t o f a
c o u r s e o f s t u d y.

signature of the guide

TABLE OF CONTENTS
CHAPTER 1. COMPANY PROFILE
CHAPTER 2. INTRODUCTION
CHAPTER 3. INDUSTRIAL RELATION IN NALCO

Grievevance procedure

Trade unionism in NALCO

Worker participation in NALCO

Collective Bargaining

Absenteeism & Labour turnover

Leave

Canteen
CHAPTER 4.

ANALYSES OF DATA

QUESTIONARY
CHAPTER 5.

SUGGESTION & CONCLUTION

BIBLIOGRAPHY

CHAPTER-1
COMPANY PROFILE
National Aluminium co. ltd.(NALCO) is considered to be a turning point in the 50
years old history of Indian Aluminium Industry. In a major leap forward, NALCO
has only addresses itself to the countries need for self sufficiency in aluminium.
Also given the country a technology edge in making this strategic metal on the best
of world standards.
Following the discovery of large reserves of bauxite ore in the last coast and the
preliminary project work done by Bharat Aluminium Company ltd NALCO was set
up by the Government of India in 1981 in the public sector to implement one of the
largest multi location integrated aluminium. Projects of the world with its own
captive power plant and port facilities.
The technical collaboration of Aluminium pechinery of France, the support of Euro
dollar loan from consortium of international banks and the special dispensations of
the Government of India and Government of Orissa helped Orissa helped NALCO
to implement the project expeditiously within the budgeted cost of Rs.2408 crores
and was partly financed by Rs.1119 cores equivalent of Euro-dollar loan. It was
extended by a consortium of international bank.
INCREASE IN PROJECT COST DUE TO THE FOLLOWING:

Inflation

change in scope of work.

Interest variation of Euro-dollar loan varying prices of power plant package under
extremely difficult logistics of implementing multinational green field project,
NALCO successfully constructed and commissioned each of its units on schedule
and with estimated cost.Afeat which has few parallels in Indian public sector. The
state of arts technology and Euro dollar funding of the project were, no doubt,
7

high risk ventures of early eighties, which its consistent track record in capacity
utilisation, technology absorption, quality assurance, export performance serving of
loans internal resource generation and posting of profits, NALCO has chartered a
course of international confidence in Indias industrial capability.
To day Nalco has emerged as the largest integrated bauxite alumina aluminium
complex in Asin, enabling India to witness a quantum jump in alumina and a
aluminium production, Nalco for the first time created exportable surplus in
alumina and helipad India to focus on its massive bauxite resources.
Different segment of Nalco went into production in a phased manner starting from
November 1985,within a short span of time Nalco has emerged as a leader in the
field of aluminium production in the country and also has made significant impact
abroad. Nalco has helped the country to make a quantum jump in production of
aluminium and has also been earning substantial foreign exchange through
creditable export performance year after year.
Capacity Location
Aluminium(smelter) 218,000Tpy Angul
Captive power plant 720Tpy Angul
Nalco serves the national interest and enjoys trust and confidence of the market and
of the general public on account of its product excellence , productivity,
profitability and good industrial relations. The interest trust on costumer service is
another hallmark of the company. Energy and environment are the subject of prime
importance to the company. Right from the design stage, the company has adopted
anti pollution and energy efficient technologies. There is constant monitoring to
ensure that there is no pollution of water and air and that there is no disturbance to
environment.
THE MANAGEMENT
Nalco is a Government of India Enterprise under the administrative control of the
Ministry of Mines. The company is managed by a Board of directors appointed by
the president of India. The Board consists of 10 Directors including the chairman
cum managing Director of the company part from CMD, there are functional or full
time directors heading production, finance project and technical and personnel and
administration disciplines. There are two senior Government officials nominated to

the board as directors by the Government of India. Besides , non-official directors

in the board.
The board of Nalco is a pool of highly experienced and outstanding professionals
drawn from various field of specialization .The board enjoys maximum possible of
operational autonomy consistent with the overall corporate objectives, basis
policies and programmes with a view to achieve optimum utilization of its
resources. Subject to the provisions of India. Besides non-official directors in the
board.
The board of NALCO is a pool of highly experienced and outstanding
professionals drawn from various fields of specialization. The board enjoys
maximum possible of operational autonomy consistent with the overall corporate
objectives, basic policies and programmes with the over all corporate objectives,
basic policies and programmes with a view to achieving optimum utilization of its
resources. Subject to the provision of the Indian companies Act, the memorandum
and the articles of association. Memorandum of understanding signed with the
Government and also subject to policies formulated by the board of directors, from
time to time, the chairman-cum- director has full power to sanction expenditures or
to deal with other matters for effective functioning of the company. The
management control is based on delegation of authority and individuality and
individual accountability for results. The responsibility and authority to take
decisions on various matters are delegated by the chairman-cum-managing
directors to different levels in the management hierarchy, for personal matters such
as appointments , confirmations promotions ,discipline, transfer, grants of various
benefits, leaves of executives, in conformity with the principled and policies of the
management. The schedule of delegation of powers is all published document
available for reference, which is subjected to review, from time to, to incorporate
necessary changes.
The board of directors
The organization (10 numbers)
The Background
Following the discovery of large reserves of Bauxite ore in the east coast and the
preliminary project work done by Bharat Aluminum Company Limited, your
Company was set up by the Government of India in 1981 to implement one of the
9

largest multi-location integrated Aluminium projects of the world with its own
Captive Power Plant and Port Facilities. The technical collaboration of Aluminium
Peachier of France, the support of Euro-dollar loans from a consortium of
International Banks and the special dispensations of the Government of India and
the Govt. of Orissa helped your Company to implement the project expeditiously
with in the budgeted cost of Rs.2408 crore, under very difficult logistics of project
management.
Different segments of your Company went into production in a phased manner
starting from November 1985. Within a short span of time, the Company has
emerged as a leader in the field of Aluminium production in the country and also
has made significant impact abroad. The Company has helped the country to make
a quantum jump in production of Aluminium and has also been earning substantial
foreign exchange through creditable export performances year after year.

Segmentation

Capacity

Location

Bauxite Mine

4,800,000 tpy

Panchpatmali in
Koraput

Alumina

15,75,000 tpy

Damanjodi

Refinery
Aluminium

in

Koraput
3,45,000 tpy

Angul

960 MW

Angul

912,000 tpy

Visakhapatnam

(Alumina

(AP)

Smelter
Captive Power
Plant
Port Facilities

Export)
Control of the Ministry of Coal & Mines. The Company is managed by a Board of
Directors appointed by the President of India. The Board consists of maximum 18
Directors including the Chairman-cum-Managing Director of the Company. Apart
from CMD, there are 5 functional or full time Directors heading Project &
Technical, Personnel & Administration, Commercial, Finance and Production
10

disciplines. There are 2 senior Govt. officials nominated to the Board as Directors
by the Government of India. Besides, there are non-official Directors in the Board.
Thus, the Board of your Company is a pool of highly experienced and outstanding
professionals drawn from various fields of specialization. The Board enjoys
maximum possible operational autonomy, consistent with the overall corporate
objectives, basic policies and programmes with a view to achieving optimum
utilization of its resources. Subject to the provisions of the Indian Companies Act,
the Memorandum and Articles of Association, Memorandum of Understanding
signed with the Govt. and also subject to policies formulated by the Board of
Directors, from time to time, the Chairman-cum-Managing Director has full powers
to sanction expenditure or to deal with other matters for effective functioning of the
Company.
The managements control system is based on delegation of authority and
individual accountability for results. The responsibility and authority to take
decisions on various matters are delegated by the Chairman-cum-Managing
Director to different levels in the management hierarchy. For personnel matters
such as appointments, confirmations, promotions, discipline, transfer, grant of
various benefits, leave etc. powers have been delegated to different levels of
executives, in conformity with the principles and policies of the management. The
schedule of delegation of powers is a published document available for reference,
which is subjected to review, from time to time, to incorporate necessary changes.
To be a Company of global repute in aluminium.

Mission
To achieve growth in business with global competitive edge providing satisfaction
to the customers, employees, share holders and community at large.

Objectives
- To maximise capacity utilization.
- To optimise operational efficiency and productivity.
- To maintain highest international standards of excellence in product quality, cost
efficiency and customer service.
-To provide a steady growth in business by technology up gradation, expansion and
diversification.
11

- To have global presence and earn foreign exchange.

- To maintain leadership in domestic market.
- To instil financial discipline at all levels for achieving cost and budgetary
controls, optimise utilization of working capital and effective cash flow
management.
- To maximize return on investment.
- To develop a strong R&D base and increase business development activities.
- To promote a result oriented organizational ethos and work culture that empowers
employees and helps realization of individual and organizational goals.
- To maximize internal customer satisfaction.
- To foster high standards of health, safety and environment friendly products.
- To participate in peripheral development of the area.

Human Resources
Manning your Company, there are 6702 persons possessing a variety of skills,
qualifications and competence. Your Company is truly youthful with the average
age of the employees being below 35 years. Starting with a core group of 262
employees in 1982, the progressive growth in manpower has taken place in a
planned manner, matching the needs of the different stages of the project. Present
strength of 6702 as on March, 2004 is close to optimum requirement against
existing company.
1122 Unskilled & Semiskilled1702 Executive3069 Skilled Personnel809
Supervisor The philosophy of your Company in the filed of human resources
management has been: All sections of employees through closer association of
employees with the management and by encouraging healthy trade union practices
While the Corporate headquarters of your Company is located at Bhubaneswar, the
capital city of Orissa, its mining operation and the manufacturing units are located
at Damanjodi and Angul. Damanjodi, in Korap To attract competent personnel
with growth potential and develop their skills and capabilities in a congenial work
and social environment through opportunities for training, recognition, career
advancement and other incentives.
To develop and nurture favourable attitudes among the employees and do obtain
their best contributions to the organization by providing stable employment, safe
12

working conditions, job satisfaction, quick redress of grievances and through good
pay and welfare amenities commensurate with the Companys capacity to spend
and the Governments guidelines.
To foster fellowship and sense of belongingness among district of Orissa, is 550
km. By road to south of Bhubaneswar. Angul is 160 km. From Bhubaneswar on
north. It may be useful for you to get some general information on Damanjodi and
Angul which are the main centres of your Companys activities.
Damanjodi
Introducing Koraput, the Gazetter of India writes: Koraput with the rolling
mountains, undulating meadows, roaring rapids, enchanting waterfalls and terraced
valleys leading up to verdant hills, feasts the eye as few other districts can. Koraput
with her golden autumn and misty mornings of the monsoon months, her painted
spring and slumbering summer and her writer ranging from fierce to mild, provides
varieties of living in different seasons, which is rare elsewhere. Here in Spring,
nature and men vie with each other to make living joyous.
Damanjodi, where Nalco has established its Alumina Refinery and a township, is
one of the picturesque valleys of this beautiful district, on the foothills of
Panchapatamali hills. The plateau of Panchapatmali, where the Bauxite mine of
Nalco is located is connected by a 16 km. long uphill road. Damanjodi is 12 km.
from Simliguda, a small town located on the National Highway No.43, that
connects Vajayanagaram of Andhra Pradesh with Raipur of Madhya Pradesh. The
Sunabeda township of Hindustan Aeronautics Limited is 18 km. from Damanjodi.
Koraput town, the Headquarter of district, is 36 km. from Damanjodi. The nearest
rail station at Vijayanagaram is at a distance of 135 km. There is of course a
passenger rail service from Koraput to Visakhapatnam through the most enchanting
hilly terrains of Araku valley and Anantagiri. Damanjodi is also connected by bus
service from Berhampur, Cuttack, Bhubaneswar, Angul and Sambalpur.
The native population of Damanjodi mostly consists of tribals. The important tribes
in this area are Gadaba, Paraja, Kandha, Koya & Sunki. The traditional occupation
of the local population has been cultivation and allied agricultural activities. Tribals
here live a simple and poverty stricken life, deeply rooted to their primitive
customs and traditions. The month long celebration of Chaitra Parva in April-May
is one of the most important festivals of local tribal communities. Here the weather
13

is very pleasant round the year with maximum and minimum temperature ranging
between 340 and 300 C. The rains during June to September, could be a bit irritating
The average rainfall during the year is above 1624 mm. units, the township has
market complexes, community centers, clubs, swimming pool, playgrounds, parks,
a 30 bedded well equipped modern hospital, guest houses, trainees hotels etc. The
township has its own Post Office, Police Station and Banks. There is an English
medium school offering CBSE courses. This school is run by Delhi Public School
Society. An Oriya medium high school is run by Saraswati Vidya Mandir. Both the
schools, because of their facilities and standard of teaching, have become
attractions even to outsiders.
Nalco Nagar, Angul
Nalco Nagar is situated within 5 km. of Angul town. Angul was once a feudal state
with a chequered history of palace intrigues and wars with neighbouring states. In
1847 the state was confiscated on account of the rebellion against the British by the
then ruling chief Somanath Singh
Thus, Angul passed under the British rule earlier to many other parts of Orissa.
Angul became a district headquarter in 1994.
Angul today is a fairly big and bustling town on the National Highway No.42
which is the main Highway connection Bhubaneswar with Raipur (MP),
Sambalpur, Sundargarh & Rourkela.
Nalco has established its Smelter Plant, the Captive Power Plant and its township
close to the National Highway. The place is easily accessible from Cuttack and
Bhubaneswar by road and rail.
Local population, till the advent of industries, basically depended on agriculture for
livelihood. Today in the vicinity of Angul a large number of industries have come
up. The other important industries in and around this place are Fertilizer Plant of
FCI, Heavy Water Plant of Atomic Energy Commission, Talcher Coal Mines of
Mahanadi Coalfields Limited and two Thermal Power Plants of NTPC.
Establishment of Nalco and other industries have brought about accelerated growth
to the trade, commerce and ancillary industries in the district. The Nalco Township
known as Nalco Nagar is modern and well planned. In addition to 3679 dwelling
units and trainees hostel with 403 rooms, Nalco Nagar has many civic facilities
like community canters, clubs, stadium, swimming pool, market complexes etc.
14

Your Company has established here a 50-bedded hospital with ultra modern
facilities. As in case of Damanjodi, there is an English medium Delhi Public School
and an Oriya medium Saraswati Vidya Mandir offering excellent educational
facilities to the employees children up to 10+2 standard.
Angul has comparatively a dry climate. The summer months can turn
uncomfortable and very hot, sometimes with the mercury touching 47 0 C. It is
important to note that due to the establishment of your Company, its plants and
townships, many local families were displaced or lost parts of their lands in
Damanjodi and Angul.
The Company has paid adequate compensation to the affected families at the time
of acquiring the land and further as a matter of social obligation, has been
providing employment and business opportunities to the members of the displaced
families on preferential basis.
The Company has also been implementing various periphery development
programmes at considerable cost to improve the quality of life of the people living
in the surrounding villages. Yet for various social, political and economic reasons,
you may sometimes notice discontentment and agitations among local people
against the Company. These are sensitive situations which need very careful
handling. You as a member of the Company, must never offend the local
sentiments. Rather, you should always strive to play a constructive role in your day
to day interactions with local people to help in developing a climate of harmonious
relationship and Peaceful co-existence.

BAUXITE MINES
Located in the panchpatamali Hills of Koraput district in Orissa,is a fully
mechanized open cast mine of 2.4 milion tpy capacity. It is the soutce of one of the
richest grades of Bauxite in the world.

THE SALIENT FEATURES

Areas of deposits:-16sq.km.
Resource:-310 millions tones
15

Ore quality:-Alumine 45%,Silica 2%

Mineralogy:-over 90%gibbisitic
Overburden :-3metres(average)
Ore thickness:-14 meters(average)
Transport :-14.6km long single flight multicurve cable belt conveyor of 1800tph
REFINERY COMPLEX
The 15,75,000 tpa Alumina Refinery,having three parallel streams of equal
capacity, is located in the picturesque Vally of Damonjodi in Koraput district.In
operation since September, 1986, the $Refinery is designed to provide Alumina to
the company 's Smelter at Angul and to export the balance Alumina to overseas
markets through Visakhapatnam Port.

THE SALIENT FEATURES:Atmospheric pressure digestion process Pre-desilication and inter-stage cooling for
higher productivity .Energy efficient fluidized bed calciners Co-generation of
3x18.5 MW power by use of back pressure turbine in steam generation plant
advanced red mud disposal system.

ALUMINIUM SMELTER
The 2,30,000 tpa capacity Aluminium Smelter is located in Angul in Orissa.Based
on energy efficient State-of-the-art technology of smelting and pollution control,
Smelter Plant is in operation since early 1987.Presently, the capacity is being
expanded to 3,45,000 tpa.

16

THE SALIENT FEATURE Advanced 180 KA Self technology Micro-processor

based pot regulation system Fume treatment plant with dry -scrubbing system for
pollution control and fluoride salt recovery. I integrated facility for manufacturing
carbon anodes, bus bars, anode stems 4*35tonne furnace and 2*9.5 tph wire and
rod mills 2*45tonne furnace and 60/42per drop billet casting machine 2*1.5 tonne
induction furnace with a 4tph alloy ingot casting machine 26000tpa strip casting
machines. With the acquisition and subsequent merger of international Aluminium
products limited (IAPL) with NALCO, the 50,000 tpa export oriented rolled
products unit in all set of produce foil stock, fin stock, can stock, circle, coil stock,
cable wraps, standard sheets and coils.

17

CAPTIVE POWER PLANT:The Captive Power Plant and Angul,Orissa is one of the unis of the NATIONAL

ALUMINIUM COMPANY LIMITED (NALCO). It was established to

cater to huge power requirements of the Aluminium Smelter established by
NALCO. The Captive Power Plant is situated at a distance of about 140Km along
the National Highway No.42 from Bhubaneswar towards Sambalpur.The plant has
an installed capacity of 960MWpresently and the capacity is being expanded to
1200MW. The water for the plant is drawn from the river Brahmani through a 7 km
long double circuit pipeline. The coal demand is met from a mine of 3.5 mn tpa
capacity opened for NALCO at Bharatpur in Talcher by Mahanadi Coalfield
ltd.The power is interconnected with the state Grid.

THE SALIENT FEATURES:Micro processors based burner management system for optimal thermal efficiency
Computer control data acquisition system for online monitoring Automatic turbine
run-up systems Specially designed barrel type high pressure turbine Electrostatic
precipitators with advance intelligent controllers wet disposal of ash.
PORT FACILITY:-

18

THE SALIENT FEATURES:Maximum ship size-35000DWTAlumina reception -48 * 53 tonne pay-load wagons
Alumina storage-3 * 25000 tonne RCC silos Ship loading rate-2200 tph..This
facilities are being upgraded to handle higher volume of exports, following
expansion of production capacities.
HISTORY OF THE ORGANIZATION
Following the discovery of large reserve of bauxite ore in east coast and the
preliminary work done Bharat Aluminium Company Limited, the company was set
up by Government of India in 1981 to implement one of the large multilocational
integrated Aluminium projects of the world with its own Captive Power Plant and
port facilities.
The technical collaboration of aluminium pechinery of France, the support of Eurodollar loans from a consortium of International Banks and the special dispensations
of the Government of India and the Government of Orissa helped the company to
implement the project expeditiously within the budgeted cost of Rs2408 crores,
under very difficult logistics of project management.
Different segments of the company went in to production in a phased manner
starting from November 1985.Within a short span of time, the company has
emerged as a leader in the field of Aluminium Production in the country and has
also made significant impact abroad. The company has helped the country to make

19

a quantum jump in production in Aluminium and has also been earning substantial
for an exchange through creditable export performance year after year.
LANDMARK EVENTS:Discovery of East Coast Bauxite :- 1975
Preparation on NALCO's Feasibility Report final-1979
Investment Decision by the company-jan,1980
Foundation stone laid by late smt. indira Gandhi - March, 1981
Commissioning Dates port facilities-sep,1985
Bauxite Mines-Nov, 1985
Alumina Refinery-sep, 1986 Captive power plant-sept, 1986
Smelter plant- March, 1987
Commencement of sale of Aluminium-May,1987
Commencement of Alumina Export-Jan,1988
Commencement of alumina Export-Sep, 1988
First CAPEXIL, Export Award-1988

20

Management

ISO

ISO

OHASAS

system

9001

14001

18001

Alumina

Nov

JUN1996

Nov 2005

refinery

1994

Smelter

FEB

FEB

SEP 2005

plant

1995

1996

Captive

DEC

DEC

power plant

1995

1997

Bauxite

JAN

DEC

OCT

Mines

1995

1997

2005

Port

JAN

DEC

NOV

Facilities

1996

1997

2005

Certification

London Metal Exchange Registration-May,1989

Dedicated to the Nation by Late Shri Rajiv Gandhi-June,1987
Star Trading House Status-Jan,1982
Indira Gandhi Rajbhasa award-1983
Indira Priyadarshini Vrikshamitra Award by Govt of India-1994
FICCI Award for pollution Control and Environment-1966-1997
Excellent public sector Enterprise Award-1997
Excellence protection award by IIEE-1997
Best Occupational Health service Award by govr.Orissa-1998
Gem granite environment award-1997-98
Sri Sitaram Rungata Memorial social award-1997-98
First EEPCExport Award-1998-99
India Gandhi Paryavaran Puraskr by Govt of India -2000
Rajbhasa shield by Ministry of mines-Fev 2001&April 2001
FIMI Environment Award 20000-01
State pullulation control Excellence Award-2002
Dedication of mines and Aluminium Refinery Expansion-18th April 2008
FIEO Niryat shree Award 2002-2003
Five Star Export House Status-2005
21

SEP 2005

Top Export Awart of CAPEXIL for 20th year in succession- 2007

CHAPTER-2
INTRODUCTION OF INDUSTRIAL RELATIONS
Industrial relations are used to denote the collective relationships between
management and the workers. Traditionally , the term industrial relations is used to
cover such aspects of industrial life as trade unionism, collective bargaining,
workers participation in management, discipline and grievance handling, industrial
disputes and interpretation of labor laws and rules and code of conduct.
In the words of Lester, "Industrial relations involve attempts at arriving at solutions
between the conflicting objectives and values; between the profit motive and social
gain; between discipline and freedom, between authority and industrial democracy;
between bargaining and co-operation; and between conflicting interests of the
individual,

the

group

and

the

community.

The National Commission on Labor (NCL) also emphasize on the same concept.
According to NCL, industrial relations affect not merely the interests of the two
participants- labor and management, but also the economic and social goals to
which the State addresses itself. To regulate these relations in socially desirable
channels is a function, which the State is in the best position to perform.
In fact, industrial relation encompasses all such factors that influence behavior of
people

at

work.

few

such

important

factors

are

below:

Institution: It includes government, employers, trade unions, union federations or

associations, government bodies, labor courts, tribunals and other organizations
which have direct or indirect impact on the industrial relations systems.
Characters: It aims to study the role of workers unions and employers federations
22

officials, shop stewards, industrial relations officers/ manager, mediator/conciliators

/

arbitrator,

judges

of

labor

court,

tribunal

etc.

Methods: Methods focus on collective bargaining, workers participation in the

industrial relations schemes, discipline procedure, grievance redress machinery,
dispute settlements machinery working of closed shops, union reorganization,
organizations of protests through methods like revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.
Contents: It includes matter pertaining to employment conditions like pay, hours of
works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor
welfare, social security, industrial relations, issues concerning with workers
participation in management, collective bargaining, etc.

Definition and Concept of IR

Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of
labors and harmonious relationships. Therefore, it is in the interest of all to create
and maintain good relations between employees (labor) and employers
(management).
The term Industrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of
individuals) is (are) engaged. By relations we mean the relationships that exist
within the industry between the employer and his workmen.
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within
23

the organizational settings. The field of industrial relations looks at the relationship
between management and workers, particularly groups of workers represented by a
union. Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations through which
such interactions are mediated.
The term industrial relations have a broad as well as a narrow outlook. Originally,
industrial relations were broadly defined to include the relationships and
interactions between employers and employees. From this perspective, industrial
relations cover all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor)
relations. Now its meaning has become more specific and restricted. Accordingly,
industrial relations pertains to the study and practice of collective bargaining, trade
unionism, and labor-management relations, while human resource management is a
separate, largely distinct field that deals with nonunion employment relationships
and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and
their employer, the relationships between employers, the relationships employers
and workers have with the organizations formed to promote their respective
interests, and the relations between those organizations, at all levels. Industrial
relations also includes the processes through which these relationships are
expressed (such as, collective bargaining, workers participation in decisionmaking, and grievance and dispute settlement), and the management of conflict
between employers, workers and trade unions, when it arises.
RELATED TERMS
For better understanding of industrial relations, various terms need to be defined
here:
Industry:
Industrial Disputes Act 1947 defines an industry as any systematic activity carried
on by co-operation between an employer and his workmen for the production,
24

supply or distribution of goods or services with a view to satisfy human wants or

wishes whether or not any capital has been invested for the purpose of carrying on
such activity; or such activity is carried on with a motive to make any gain or
profit. Thus, an industry is a whole gamut of activities that are carried on by an
employer with the help of his employees and labors for production and distribution
of goods to earn profits.
Employer:
An employer can be defined from different perspectives as:A person or business that pays a wage or fixed payment to other person(s) in
exchange for the services of such persons.

A person who directly engages a worker/employee in employment.

Any person who employs, whether directly or through another person or

agency, one or more employees in any scheduled employment in respect of which
minimum rates of wages have been fixed. As per Industrial Disputes Act 1947 an
employer means:-

in relation to an industry carried on by or under the authority of any

department of [the Central Government or a State Government], the authority
prescribed in this behalf, or where no authority is prescribed, the head of the
department;

in relation to an industry carried on by or on behalf of a local authority, the

chief executive officer of that authority;
Employee: -

Employee is a person who is hired by another person or business for a wage

or fixed payment in exchange for personal services and who does not provide the
services as part of an independent business.

An employee is any individual employed by an employer.

A person who works for a public or private employer and receives

remuneration in wages or salary by his employer while working on a commission
basis, piece-rates or time rate.
25

Employee, as per Employee State Insurance Act 1948, is any person

employed for wages in or in connection with work of a factory or establishment to

which the act applies.
In order to qualify to be an employee, under ESI Act, a person should belong to any
of the categories:
Those who are directly employed for wages by the principal employer

within the premises or outside in connection with work of the factory or

establishment.
those employed for wages by or through an immediate employer in the

premises of the factory or establishment in connection with the work .

Those employed for wages by or through an immediate employer in

connection with the factory or establishment outside the premises of such factory or
establishment under the supervision and control of the principal employer or his
agent.
o

Employees whose services are temporarily lent or let on hire to the principal
employer by an immediate employer under a contract of service (employees of
security contractors, labor contractors, house keeping contractors etc. come under
this category).
Employment: The state of being employed or having a job.
Labor market: The market in which workers compete for jobs and employers
compete for workers. It acts as the external source from which organizations attract
employees. These markets occur because different conditions characterize different
geographical areas, industries, occupations, and professions at any given time.

SCOPE
The concept of industrial relations has a very wide meaning and connotation. In the
narrow sense, it means that the employer, employee relationship confines itself to
the relationship that emerges out of the day to day association of the management
and the labor. In its wider sense, industrial relations include the relationship
between an employee and an employer in the course of the running of an industry

26

and may project it to spheres, which may transgress to the areas of quality control,
marketing, price fixation and disposition of profits among others.
The scope or industrial relations are quite vast. The main issues involved here
include the following:
1.

Collective bargaining

2.

Machinery for settlement of industrial disputes

3.

Workers participation in management

4.

Unfair labor practices

Importance of Industrial Relations

The healthy industrial relations are key to the progress and success. Their
significance may be discussed as under
Uninterrupted production The most important benefit of industrial relations is
that this ensures continuity of production. This means, continuous employment for
all from manager to workers. The resources are fully utilized, resulting in the
maximum possible production. There is uninterrupted flow of income for all.
Smooth running of an industry is of vital importance for several other industries; to
other industries if the products are intermediaries or inputs; to exporters if these are
export goods; to consumers and workers, if these are goods of mass consumption.
Reduction in Industrial Disputes Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure of basic human urges or motivations
to secure adequate satisfaction or expression which are fully cured by good
industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are
some of the reflections of industrial unrest which do not spring up in an atmosphere
of industrial peace. It helps promoting co-operation and increasing production.
High morale Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of
employer and employees is one and the same, i.e. to increase production. Every
worker feels that he is a co-owner of the gains of industry. The employer in his turn
must realize that the gains of industry are not for him along but they should be
shared equally and generously with his workers. In other words, complete unity of
thought and action is the main achievement of industrial peace. It increases the
27

place of workers in the society and their ego is satisfied. It naturally affects
production because mighty co-operative efforts alone can produce great results.
Mental Revolution The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the ranks
of workers, employees and Government to work out a new relationship in
consonance with a spirit of true democracy. Both should think themselves as
partners of the industry and the role of workers in such a partnership should be
recognized. On the other hand, workers must recognize employers authority. It will
naturally have impact on production because they recognize the interest of each
other.
Reduced Wastage Good industrial relations are main the basis of cooperation
and recognition of each other. It will help increase production. Wastages of man,
material and machines are reduce to the minimum and thus national interest is
protected.
Thus, it is evident that good industrial relation is the basis of higher production
with minimum cost and higher profits. It also results in increased efficiency of
workers. New and new projects may be introduced for the welfare of the workers
and to promote the morale of the people at work. An economy organized for
planned production and distribution, aiming at the realization of social justice and
welfare of the massage can function effectively only in an atmosphere of industrial
peace. If the twin objectives of rapid national development and increased social
justice are to be achieved, there must be harmonious relationship between
management and labor.
OBJECTIVES OF INDUSTRIAL RELATION
The main objectives of industrial relations system are:1. To safeguard the interest of labor and management by securing the highest level
of mutual understanding and good-will among all those sections in the industry
which participate in the process of production.
2. To avoid industrial conflict or strife and develop harmonious relations, which are
an essential factor in the productivity of workers and the industrial progress of a
country.
28

3. To raise productivity to a higher level in an era of full employment by lessening

the tendency to high turnover and frequency absenteeism.
4. To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the industry by
providing and of the country as well.
5. To eliminate or minimize the number of strikes, lockouts providing reasonable
wages, improved living and working conditions, said fringe benefits.
6. To improve the economic conditions of workers in the existing state of industrial
managements and political government.
7. Socialization of industries by making the state itself a major employer vesting of
a proprietary interest of the workers in the industries in which they are employed.
IMPORTANCE OF THE STUDY:
Gathering information & theoretical knowledge is a part of the study. It becomes
complete when added practical knowledge as the naked truth comes to sight hence
one become more effective & effective when in the flavors of practical outlook is
added to the bosky mind. As the study has got wide relevance in formulating valid
information about the organization it helps in getting a critical look into the
personnel practices of the organization.
Organizational behavior employer employee relationship & the working
environment of the organization in the relation to the theoretical knowledge. It
gives a previous idea about the job & o working environment to the decision
making & how to perform by assigned job successfully & tack fully.

OBJECTIVES OF THE STUDY:

This study program has got the following objectives:
1.

To gain an over all idea about the Organization.

29

2.

To get a practical knowledge in the areas of personnel management &

industrial relation.

3.

To study the composition of the employer & employer relation existing in

the Organization.

4.

To know the facilities provided to the employees as well as the public by the
Organization.

5.

To study the statutory & the non statutory welfare practices adopted by the
organization.

6.

To study the organizational culture and style.

SCOPE OF THE STUDY:
The present study is basically carried in at NALCO, Angual. The study has got a
wider scope as it includes all actives which help the management in getting the
work done by labour force in best possible manner to accomplish the main
objective of the organization.
For the purpose of the study I have to cover different department in smelter plant of
NALCO .The smelter plant is the production sector of the company. I have covered
following departments to collect the data.

1.

HRD department

2.

Training & development department

3.

Industrial engineering department

4.

Finance department

5.

Public health department

6.

TQM department

7.

Trade union
The dates have been collected regarding the HR& IR practical basising upper.

1.

Organizational structure & function of the personnel department.

2.

Personnel practices.

3.

IR aspects

4.

Some important aspects of HRD.

5.

Welfare aspect of social securities.

30

METHODOLOGY OF THE STUDY;

The tools & techniques of collecting data is called methodology of study. To
complete my understudy training program, the information are collected both from
primary & secondary sources.
Most of the informatation are collected from official records,documentes ,manual
of different department & sections & from library.
SOURCE OF DATA COLLECTION
PRIMARY SOURCE:-For collection of primary data the research has undertaken
periodic visit to the organization & interviewed the management official workers &
trade union leaders.
SECONDARY DATA COLLECTION:-For collection of secondary data I have
gone through the records, company you keep book, files & some data collect in
down lode to web or journal, handbook etc.
LIMITATIONS:
During the course of under study training program the following difficulties were
faced.
1.

The time limitation is the biggest problem in the study due to small span
of time allotted.

2.

To collect information from persons busy in their work had made the task
more difficult.

3.

Very often the organization secrecy stood on the way to find out the
information regarding some aspect of the study.

CHAPTER-3
31

INDUSTRIAL RELATION IN NALCO,ANGUL

Stable industrial relation are the vital prerequisite for industrial progress, stable
relation means a situation when the problems of the management and workforce are
discuss between them in a sprit of mutual trust and confidence without unnecessary
delay and friction without healthy management relations , there is no hope of overcoming multi-farious problems to which the country is confronted today.
Industrial relation in a public undertaking like Nalco will obviously be different
from that of a private enterprise. Profit being a major motive for a private
enterprise. The management looked upon as a part and parcel of ownership and the
traditional labour management conflict is inevitable because of their divergent
interests. But in case of public sector Company, the objective of the management is
often not in conflict with the objectives of the work force.
Infect, as part of their social objectives public sector enterprise Endeavour to create
minimum employment opportunities and, also to provide enough welfare for its
workforce in the township, school, college, hospital, free transport etc. In addition
to their normal wages and salaries.IR problems of the public sector are connected
more with relative emphasis assigned by each party
Remanagement and trade unions to various objectives.
Another characteristic of the public sector enterprise which set them from private
organization is their own relative size. Most of the private sector enterprise are
small in size as a result, communication is much faster and the chief executive
carries through authority to take independent decision taken in one public sector
enterprise can not be independent of others.
The factor, characterizing the public enterprises is the influence of political and
Bureaucratic set up and various committees and Govt.bodies who are involved in
the prices of IR.Most of the trade unions have their political affiliations and in
many public sectors they have their linkages with the ruling party. They are in a
position to have direct access to the politicians who are head of officers. Some of
the discussions which are beyond the control of the chief.
32

GRIEVEVANCE PROCEDURE FOR NON-EXEUCTIVE

According to the policy of Nalco. If any employees has any problem or complain
then he should express to his/her immediate supervisor should try to solve the
problem within three days.
But after that, if the employee is not satisfied he should inform in writing to the
chief of the concerned department within the 60 days of the event. The chief of the
department should give answer of the complain and if necessary, then he personally
inform to the employee.
But if the concerned employ would not get any answer or not satisfied with the
answer, then he can inform his problem to the grievance committee through its
secretary.
The grievance committee which is constituted along with the management
committee workers union and representative of personnel department will inform
the discussion of the committee with in 30 days. The employee will present before
the grievance committee wherever necessary. He can take the help of own
coworker to represent his/her complain to the grievance committee.
TRADE UNIONISM:
The trade unionism is the result of the growth of industrial establishments
involving the employment of large number of workers in condition which makes
them helpless in bargaining individually for their terms of contact. In the advanced
countries in the world, industrialization has always been associated at the same
stage or the other, with the development of

some types of organized lobour

activities. A trade union is a complex institution. It has many facts economic,

social, political & psychological. However on of the most important characteristics
of all trade union is adaptability to change to change with the environment .trade
union is form to protect maintain & improve economic social & vocational interest
of their member & to strengthen their bargaining power.
GROWTH & DEVELOPMENT OF TRADE UNIONIO IN NALCO:ANGUL
33

Multi policy of trade unions and inter and trade union rivalry have been the regular
features of the Nalco, Angul. In November 1982 the Nalco sramic congress union
was formed at the initial stage of the construction of the plant .This union is
affiliated to the Indian National trade unions congress. The union was formed with
a view to protects the rights of the contract labour and other works of capital power
plant. Several time the unions demanded for the wages, bonus & the other welfare
features before the management. Another union in Nalco progressive employees
union was formed on July 1983 to protect the right of the labour & employees of
the smelter plant.After forming this union Trade unionism began rapidly in Nalco.
Its president is Mr.B.B.Seth.General secretary is R.C.Behera & J.Sangh is working
precedent.
There is also one strong union in the smelter plant on October 1988 which is known
as Nalco karmachari sanghawhich affiliated to I.N.T.C .
Another 2 union in Nalco,Angul are Alimunium majdoor sangh in smelter plant &
Nalco vidut majdoor sangh in C.P.P.

REGISTERDED TRADE UNION IN NALCO,ANGUL:Sl.no

Name & address of TU

NALCO
Employees

progressive
Union

NALCO,ANGUL
NALCO Karmarchari

Registrati

Affiliated

on no.&

To

date
1497/30.7.

HMS

1987
1515/12.1

34

INTUC

sangh, NALCO Nagar,

0.1983

Angul
Aluminium

1794/25.9.

mazdoor

sangha,NALCO
Nagar,Angul
NALCO

BMS

1987
smelter

145-SBP

AITUC

ngul
NALCO smelter sramik

193-SBP

CITC

sangh

NALCO

7.8.2001

Naggar,Angul
NALCO
Employees

197-SBP

sangh

29.8.2001

workers
union,NALCO,Nagar,A
5

Nagar,Angul
NALCO

8
9

NALCO
Thika

INTUC

129-SBP

BMS

mazdoor,sangh,Angul
NALCO
Sramik

13.7.2000
178-SBP

HMS

sangh,Angul
NALCO

13.7.200
265-SBP

HMS

Nirmana

mazdoor sangh

28.3.207

Sl NO. 1 to 6 are working for Nalco Employees & 7 to 9 are working for contract
labour.
WORKERS PARTICIPATION
Introduction:In order to encourage employees to be intimately involved in the production
activities and interrelated to their work environment, a scheme of employees
participation in managements has been formulated. The scheme will be introduced
on an experimental basis for a period of one year from the dare of its introduction
at the four producing units namely, Aluminum smelter and captive power plant at
angul sector and alumina plant and Bauxite mines.In damanjodi sector. the details
of the scheme are given below:
OBJECTIVE:
The broad objectives of the scheme will be to encourage and involve the employees
to participate in a responsible manner in production and related activities at the
shop floor at the unit level at the apex level and mobilize
35

Their voluntary co-operation with a view to archive:

1.

Increase in productivity for prosperity of the employees, the company and

the nation.

2.

Greater awareness among employees at all level about their roles in

production, care of machinery, improvement in working condition,
Safe Working practices and accident presentations etc.

3.

Provide opportunity to express their innovative ideas and suggestions for

improvement of work system and any other work related matters.

4.

Increase safety consciousness which may lead to better production and

productive.

5.

To develop cost consciousness among employees and achieve production

targets with diligent cost control.

6.

Work related welfare measures concerning the shop, department, plant etc.
STRUCTURE OF THE SCHEME:
2.0. The participative scheme shall be operated on a three-tier basis with
representation from the non-executive employ and the management at the shop
floor level, unit level, apex level
2.1. The shop level bi-partite committee will comprise of:
A. All production departments,
B.Maintenance and service department,
C.Administrative services such as personnel, finance, materials,
Administration, Township, Hospital etc.
2-2.The concerned units may decide the number of shop level participative forums
to be started, depending upon the convince of the unit with the approval of the
concerned Heads of the units.
2.3. The unit level committee will be the top joint bi-party forum at the unit
2-4. The two Apex level committees will be the top joint fourm of the two units
each in Angul and damanjodi, which would comprise representations fits. from
both the units.
2.5The representatives of the non-executives employees shall be elected by the all
permanent non-executives employees working in the concerned department
36

/departments, for the shop floor level and the units level committee ,as per the
division of the constitutes. Representatives at the apex level should be on the
proportional basis related to the total number of non-executive employees of the
unit and the representative to this level may be drawn through elevation from
amongst the elected representatives of the shop level and unit level committees.
However in case of recognized union representatives to the forum may be
nominated by the union. Management
Representatives would be nominated, keeping on view the representation from
various constituent department and levels of manage mall have membership in
more than one committees sent. No one member shall have membership in one
Committee however for the sake of working convenience any member may be
invited to attend deliberations of other committees, here he is not a member for the
purpose of offering opinions, views, special knowledge if any, if so required by the
inviting committee.
2.5.the membership of any member in the committee shall cease automatically on
his leaving employment on resignation, on account of death otherwise transfer from
the concerned area of operation/unit, failure to attend 3 consecutive meetings and
voluntary resignation from the membership. The vacancy on account of the above
will be fill up by fresh nomination of the management or by candidate who hade
polled highest number of votes among the unsuccessful candidates from the same
department/section during the last election for the non executive employees
representative for the particular committee. the tenure of the such representative
will be for the balance of the life of the committee.
2.6.The chairman for the shop level committee will be the senior most member
HOD. The chairman for the unit level committee and the apex level committee
shall be the hade of the complex respectively. The vice chairman for all the 3
committee shall be the representative of the non executive employee ,who would be
elected by the member of the concerned committees.
2.7.Representative of the management shell be the member secretaries for each of
the committee. In the absence of the secretaries, the member may nominate one
amongst them to act as secretaries for the particular meeting.

37

2.8.in case advice of special nature is required by any committee it may invite any
non member employ from any department of unit possessing such specialized
knowledge to attend the meeting for the purpose .
2.8.the comity may decided to constitute study groups/committee and any other
employees of the unit who might be considered of employ other than member of
the committee could be subject to approval of the concerned unit head.
MATTERS

WITH

IN

THE

JURISDICTION

OF

THE

SHOP

LEVELCOMMITTEE:
To study and give suggestions with in the policy guidelines of the company on:

Improvement in production process.

Improvement in methods of working.

Improvement in productivity and quality.

Encouraging employees to come forward with useful suggestion regarding

improvement in working conditions, works methods, plant &machinery
utilation etc.

Prevantation of wastages & cost control.

Better up keep of machinery, tools &equipment.

Adoption of sound safety practices.

Reduction in expenditure & cost control,

Reduction in absenteeism,

Special job-related problems of employees and any other related matters

with aview to improve production,

Pollution control with relation to the shops within its jurisdiction.

MATTERS WITH IN THE JURISDICTION OF THE UNIT LEVEL

COMMITTEE:

38

1. All issues covered under shop level committee and matters with relation to the
units,
2. Matters referred from the shop level committee and matters having inter-shop
jurisdiction,
3. Any other related matters relevant to the basic objectives of the participative
committee.
MATTERS WITH IN THE JURISDICTION LEVEL COMMITTEE
1-All matters referred from the unit level committees a group
2-Issues pertaining to common facilities such as Township
Hospital,school,Transport,Recreation and welfare, Law &Order and
Environment etc .
3-Any other issue of general interest to all employees of the units.
COLLECTIVE BARGAINING:
Collective bargaining is a bargaining process of discussion & negotiation between
2 parties ,one or both of whom is a group of persons action in connection .The
resulting bargaining is an understanding as to be the term of the conditions under
which continuing services is to be performed. It is a procedure by which employees
& a group of employees agree upon the conditions of the work it impales
agreement between representative of the employees relating to the salutation of the
industrial problems with minimum Govt. dictated.
THE ESSENTIAL FEATURES OF COLLECTIVE BARGAINING AT
NALCO:

It is a collective process where both parties are participate equally.

It is also called as a partite body.

It is a continuous process

It is a flexible & dynamic process.

It is a partnership of workers in management

It is a give & take process

39

It is an attempt to achieve industrial peace & maintaining discipline.It is an

effective step in programming industrial jurisprudence.

SUBJECT MATTER OF COLLECTIVE BARGAINING

NALCO puts ore emphasis on democratic principals & as apart of these philosophy
Nalco has always encouraged collective bargaining between the employ &
management. The subject of bipartite discussion has been classified into the
following broad forums so that there is clarity of issue while proposing the items
for discussion in each forum & level.
Area of unit level bipartite forum

Safety & housekeeping.

Canteen facilities on plant level.

Employee welfare.

Annual & productive bonus.

Technical or technological improvements.

Rural development.

Medical facilities.

Suggestion for skilled development & employee development & activities.

Implement & follow up of the unit /deptt./apex/joint consultative council.

procedure of negotiation of collective bargaining & NALCO.
Negotiation between the parties union is an important aspect of collective
bargining.It is a process through which attempts are made to arrive at an agreement
on wages & other economic benefits & other terms & condition of service.
It naturally involves proposal & negotiation maid by the management & unions
followed by discussion, is no iron out differences which is the bargaining may
appear to be vast.
In Nalco the union raise some issues & demands manager do preliminary work &
initiate necessary action & the matter is settled & the matter is settled & both the
parties come prepared to put forth their opinion to make a dignified settlements.
The management allowed thought the negotiation should not be with the IR
40

managers handout in the hand of term of the management. Since more than one repreventatives will sit in the discussion .the IR officer as one of the team may not
have the authority to take decision but he may be in a better strategic position than
other members of the negotiation team. The IR officer is playing the role of a
liaison with unions and can at as a bridge between 2 groups.
ABSENTEEISM AND LABOUR TURNOVER:The rate of absenteeism is expressed as the percentage of Monday last through
absence to the total number of Mondays schedule in a given period.
So,
Absenteeism =No.of Monday lost through absence 100
Total no. of Mondays schedule to work
In order to identified the causes and extent of absenteeism proper record should be
kept in every department from various causes of absenteeism by such divisions as
age,sex,days of the week & classes of job. It should be noted that it is almost
impossible to give a list of exact relation and their percentage. The evaluator of the
personnel programmed should classify the data relating to the absenteeism & try to
analysis the various causes of absenteeism.
There are a lot of causes for absenteeism from which some important causes are
follows:

The nature of work

Poor working condition

Absence of regular leave arrangements

Accidents

Poor control

Labour absenteeism is harmful to both the employers & workers as follow in

Nalco:-

41

Normal work flow in the factory is distributed.

Overall production in the factory goes down.

Difficulty is faced in executing the order in time.

Casual workers may have to employed to meet production schedules, such

workers are not trained properly.

Overtime allowance bill increases considerably because of higher

absenteeism.

When a number of workers absent themselves there is extra presence of work on

their colleagues who are presented.

Workers loose wages for unauthorized absence from work.

Habitual absenteeism may be removed from service causing them great

hardships.

LABOUR TURNOVER:In Nalco a small percentage of labour turnover is in evitable and is bound to exist
in all industrial units including even those where wage and satisfactory. In Nalco
the wage of shop floor is getting near about Rs 25000/- only. Therefore No question
arises for the large percentage of labour turnover is not treated as problem at all.
More over small percentage of labour turnover (2% to 3%) is not harmful for an
organization. It is an universal problem for all organizations. It means movement,
shifting or organization of workers from one unit to another. It is a natural tendency
which leads to labour turnover and absenteeism.
ABSENTEEISM
Absents is set to be at Nalco, when an employee fails to come to the working place
to perform the schedule work. It is an important problem in our industries.
Excessive absenteeism involves a considerable lost to the enterprise because work
schedules upset and delay and management have to give overtime to meet the
deliveries dates.

42

Workers remain absent from the organization from the regular work due to hard
nature of jobs, monotony in the work and personal reasons. This leads to
absenteeism means absence from work of the workers without prior permission
notice or sanctioned. It is unauthorized leave and difficult or different from absence
which can be available and willful. Unauthorized absence from regular duty is
absenteeism, However absence on account of sickness, lockout lay off can be taken
into account for absenteeism.

LEAVE:National Holidies:-26th January Republic day

15 August Independence day
2nd October- Gandhi jayanti
Restricted/optional Holidays:2 holyday or festival occasions are restricted holiday .Employees working in the
corporate & Regional officer of the company observe 13 close holidays .

Leave:Leave is not a matter of right .Authorities have the description to refuse or revoke
leave ,if the exigencies of the work demand their .Leave application should be
made in the standardized form available in respective department. The application
for leave should come sufficiently in advanced . If suddenly on medical ground ,He
has to give medical certificates, both for unfitness to work initially & fitness to
work when he report back for duty .No leave shall granted beyond the date on
which an employee must retire on supper annuation. Holydays intervening the
earned leave & causal leave arre not included in the leave period.
Earned leave:-The earned leave is admissible at the rate of one day for every 14
days of work for the non-executive employees .This amount to 26 days in a
calendar year .

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Half pay leave:-executives are entitled to half pay leave 20 days for each completed
year of service.
Seek leave:-Non executives are entitled to 12 days of sick leave in a calendar
year .This leaves are granted on medical ground.
Special disability leaves:- S.D.L can be granted to an employee who is disabled as
a result of injury when he is at working & in course of employment. This leave can
be granted up to 120 days on full pay & the remaining period, with half pay.
Extra ordinary leave:-There leave can be sanctioned without pay in appropriate
causes at the description of the management, when no other leaves due to an
employee.
Maternity leave:- This limited to a maximum period of 135 days out of which not
more than 6 weeks shall precede the excepted date of delivery, provided however
that women employees with less than 2 surviving children.
Paternity leave:-A male employee with less than 2 surviving children may be
granted paternity leave of 15 days during the confinement of his wife.
Quarantine leave:-It is granted when medical authorities of the company certify the
presence of an infectious disease in your family or household. It is unlimited to 20
days.
Special casual leave:- Special casual leave can be granted maximum up 30 days in
a year related to personal reason of the employees, such as civil disturbance,
curfew, participating in spores events of inter unit or department tournaments
,joining territorial army etc. Special causal leave can also be granted for undergoing
family planning operation.
Transit leave:-This is otherwise known as joining time available to an employee on
transfer depending upon the distance between old & new place of posting.
MAINPOWER PLANNING AT NALCO:
Though NALCO is a Govt. enterprise the manpower was introduced in 1983 when
the company is in the project stage. The planning forecasting of manpower
requirements are with reference to the following board criterions.

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1.

Finding of job evaluation study.

2.

Creation of new facilities new equipment.

3.

Change in designation or gradation of existing system.

4.

Change in the structural requirement of business.

5.

Expansion & diversification programs.

6.

Employer turnover on account of resignation & requirement.

7.

Lead time required for training employees in different categories.

In NALCO all the requirement & promotion are condition by annual. Manpower
plan as approved by the board of the company. Irrespective of overall sanction of
post & specific section for each new post from the chief executive will be
necessary before falling of the post, in the case where a consequential vacancy exist
on account of resignation, termination, death & supper annulations etc. The
approval of chief executive is necessary for filling the vacancies.
In addition to above in case of recruitment of specific or additional manpower
recrument in any departments the concerned department has to informed the
industrial engineering department .on the recommendation of industrial Engg.
Departments the board of directors approve the recruitment action. He minimum
educational qualification for requirement of appointment to various cadre & excadre of post not covered on the above guidelines, the competent authority shall
from time to time lay down the prescribed qualification .The manpower planning is
basically depending upon the requirement & job related matter & which are divided
into 2 parts.
1. Job wise

Job identification

Job specification

Job description

Job evaluation
2. Manpower wise

Manpower assessment
45

Departmentalization

Grading & categorization

Delegation of authority & responsibility

IN SMELTER PLANT

1.

Manpower planning is made for 3 shifts.

2.

Manpower estimates have been arrived at by considering in depth the

technology involved including use of micro processors & also taking in a account
duty possession posts .Analytical approach method has been adopted for
employment of personnel on various machines or equipment.

3.

Common service like guest house, PR, vigilance etc will be available
avoided jointly by smelter & CPP. However they will be placed under one unit
head.

4.

Manpower is recruited for various departmental needs & those departments

are:
o Production department
o Maintenance department
o Utility service department
o Technical service department
o Non -technical service department
o Advisory service department
These above are the information about Nalco manpower planning.
SAFETY:
The production system depends upon the workers & workers are also a bread
corner of his family .so the family depends wholly on him .Hence the happiness of
the family depends upon the safety of the employees. So that the employee has to
take care of his own safety.

46

In Nalco the workers those are engaged in the noise, so they must be protected
from these things. Nalco appointed 6 numbers of safety officers & also safety
engineers & provides all safety acts according to factory act, 1948. The safety
training & safety awareness programs are also conducted in every year. The
company provides shoes per year, helmet for 5 years. Nose mask every week,
safety goggles ones in a year , hand gloves 2 pairs in a month , apron in case of
employees working in the cast house , carbon area , pot line .Except those ,earplug,
ear muff, visor for shields safety belt, rubber hand gloves are also provided.
The constitution of the safety committee is one of the forums to accomplish the
company policy on safety & accident prevention & to achieve the target of zero
accident. The committee will examine the quality suitability & the extent of use of
the safety appliance.
The punch line for safety in Nalco is:Zero accident is our motto
Safety fast production last.
The company also provides:

Safety training.

Posters, safety training.

Display board.

Safety bulletin.

Safeties quiz competition.

WELFARE:
In an industry workers are guided by different needs. By satisfying the workers
different needs , they are motivated to work. Labour welfare provides satisfaction
to the workers in that extend that even a good pay package can not do to them.
The term , welfare defines in the state of living of an individual or group in
desirable relation to the total environment- Ecological, Economical & social. The
Govt. being the other necessity to introduce labour legislation from time to time in
order to bring uniformity in the basic amenities available to industrial worker .
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WELFARE MEASURES IN NALCO:Nalco as a reputed company provides welfare measures to its employee ,as well as
the person living units surrounding villages ,Nalco provides statutory & welfare
measures to its employees in the company .The welfare facilities can be broadly
classified as follows:-Intramural facilities.
-External facilities.
Intramural facilities:a.

Drinking water:- code drinking water with aqua guard purification are made
at all accessible places for the use of employees.

b.

Latrines & urinals:- Well maintained latrines & urinals have been provided
at all places.

c.

Rest & shelter:-well maintained rest rooms have been provided at all the
shop floors of the plant.

d.

Washing facilities:-proper washing facilities are available at all the places

for those workers who stay during night hours till morning in the plant .Bathing
place shall be provided for employees who are required to stay in the plant.

e.

First aid Facilities:-The Company provides first aid facilities since 1987. It
is being 2 beds & also the observation rooms & Ambulance provided for the
employers at subsidized rates .These are the 6 numbers of canteens in the plant.
EXTRAUMRAL FACILITIES :-

a.

Medical facilities;-The medical facilities are provided to the employees of

Nalco .A hospital present inside the township. It has 21 specialist doctors ,105
paramedical staff & 7 non medical officers. It has 50 beds.

b.

HOUSEING FACILITES:-Nalco has made well planned & sophisticated

township having housing facilities The houses are of 4 types [A,B,C,D] & they are
allotted to employee according to their eligibility. There is also trainees hostel with
300 rooms. These trainees hostels names are JOT, SOT & GET employees.

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c.

Education facilities:-in 1984 Nalco established SIM & DPS which offers
the Oriya & C.B.S.E course in Nalco Nagar.
CANTEEN:In about welfare administration the term refers to be the place near the work place
in which foods & drinks are provided to the works at the cheap rates. Also there is
mobile vane from which food & drinks to workers are served near the spot.
Under section 46 of the factories act 1948 it is mention as a statutory provision as
canteen can should be provided by the management to factories employing more
than 250 workers .The state Govt. is the appropriate authority to empower rules for
his
purpose.
There are about 7 canteens in Smelter, Hospital canteen (Nalco Nagar) near
administration building, near carbon area, at plotline driver canteen, near caste
house and main canteen (near time office) Except main canteen, all other canteens
are moves on the motto of no profit and no loss by providing subsidized foods
and products to the employees. For availing food the employee has to make a
reservation of his meal in the main canteen and a register is Maintained for that; but
in other canteen food can be availed without any reservation also. All canteens
provide subsidized food for the employees. The room is welled ventilated, clean,
having washing facility, drinking water (cold) from aqua guard, also provided with
fans, lights and latrines and urinal facility. Both non-veg and veg food is available.
In the main canteen the price per meal is Rs 17.
To look after the quality of food there is canteen management committee. It is a
bipartite committee consisting of management representatives -3, workers
representatives, whose Chairman is DGM. Meetings are held every month in an
effective way. It is not of discussion making type, it is of advisory type committee
whose main aim is to look after quality, quantity of foods. Hygiene and prices
being changed in the food items. These meetings held regularly and timely. Canteen
allowance has been more as per the day but after a settlement made in April 2003
Committee made a realization of physical attendance up to 3 days on authorized
leave in a month was made. There is also a wastage pit behind every Canteen where
49

waste food materials are dropped and after certain period of time it was taken out
and utilized as manure in plantations. Those employees who are provided with food
Voucher can avail food and Canteen facility. This food voucher is non transferable
and valid only for food.

CHAPTER-4
ANALYSES OF THE DATA:
The researcher has collected the data through schedule questionnirs.The question
contains 9 questions to executives and 10 questions to non executives related to the
project area. The selection of sample is done through random sampling method.
The questions are given below:
FOR EXECUTIVES
1. Adequate welfare facilities
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2. Healthy working style both physical and psychological

Necessity of training programmed
3. Necessity of training programmed
4. Free flow of communication
5. To experiment with new methods and to develop creative ideas employees are
encourage.
6. Employees do work on their own interest without waiting for instruction from
superiors
7. The reward system is not proportionate
8. Employees participation in solving issues
9. Adequate welfare facilities
FOR NON-EXECUTIVE
10. Healthy working style both physical and psychological
11. Necessity of training programmed
12. Free flow of communication
13. Employees performances is highlighted by seniors
14. Employees do work on their own interest without waiting for
instruction from superiors.
15. The reward system is not proportionate.
16. Top management treats all level of people
17. Organization believes in strict adherence to orders
Irrespection of individual judgment.
18. Employees are not afraid to express their feeling with their
Superiors
19. Employees participation in solving issue.
QUESTIONARY:Manpower planning:1.

Is their any specific department which carries out the manpower planning
here? How many canteens are there inside the plant

2.

Please explain briefly how the process is carried on here?

3.

What are the various aspects take into account for manpower planning?
51

Safety:1.

Who is the authority to take care of safety in side the plant?

2.

What are the safety measures taken inside the plant?

3.

What are the safety objectives provided by Nalco?

Canteen:-

1.

How many canteens are there inside the plant?

2.

When do they serve for employees?

3.

What is the benefit provided to the employee in this respect?

Trade union:-

1.

What is the total number of trade union in Nalco & in smelter plant?

2.

Which are the organized unions?

3.

Please if possible then provide us the data?

Grievance handling:-

1.

Please explain the hierarchy to handle the grievance?

2.

Is their any grievance committee?

Workers participation in management:-

1.

Does Nalco provide collective bargaining?

2.

How the meetings hold on?

3.

Do you get any benefit out of it?

Collective bargaining:1. Does Nalco promote collective bargaining?
2. How does the process carried on?
3. Do you get any benefit out of it?
4. Please provide the case study
Absenteeism & labour turnover:-

1.

How many numbers of employees are absent today?

2.

What is the average number of employees absent in each month?

3.

What are the causes of absenteeism

52

CHAPTER-5
SUGGEESTION
After careful observation & conducting personal interview with the management
personnel & trade union executives & going through official records, collecting
relevant information & analyzing such information; we have gained some
knowledge about the Industrial Relation, employee-employeer relation, product
production process in NALCO.
On the basis of year presiding discussion the following suggestions have been
made with a hope if these are followed, it may help the organization in improving
the Industrial Relation.
53

1.The most important function of the organization should be to inspire & motivate
the people with enthusiasm towards their work for the accomplishment of
organizational objectives .
2.The company should provide effective training policy & program to provide
skilled personnel to the organization.
3.More welfare facilities should be provide to the people working in the
organization.
4.The company should provide highly sophisticated technology to its worker in
order to achieve orginational objectives.
5.The management should go for job rotation; as it would help the workers to
overcome from monotony of work & gain knowledge on other job.
6.As union in industry of Orissa are alienated with political party so internal
leadership should be encouraged to reduce the dominance of outside leadership if
trade unions.
7.The workers educations should be in an efficient manner.

CONCLUSION:After careful investigation, we may conclude that entering in the organization is

like stepping into altogether a new world. At first everything seems strange &
unheard but as the time passes, one can understand the concept & practice of the
organization & ultimately this helps us to develop professional relationship. In this
project we have summed of the findings on different dimension of Industrial
relation & Human Resources Practices existing in NALCO. Further it is our

54

endeavor to offer suggestions that would help the company ensure good industrial
relation &HR Practice.

BLIOGRAPHY:-

1.

K.ASWATHAPPA

HUMAN

RESOURCES

&

PERSONNEL

MANAGEMENT
2.

C.B.MAMMORIA- DYNAMICS OF INDUSTRIAL RELATIONS

3.

T.N.CHHABRA & R.K.SURI- INDUSTRIAL RELATIONS

55

4.

A HAND BOOK OF NALCO-THE COMPANNY YOU KEEP

5.

MONTHELY MAGAZINE AND JOURNAL OF NALCO-PARICHAYA

WEBSITE ADRESS-WWW.nalcoindia.com

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