A PROJECT REPORT

ON

INDUSTRIAL RELATIONS IN BHEL(VARANASI)

A report submitted in partial fulfilment of theMaster of Business Administration

Programme of

KAMLA NEHRU INSTITUTE OF PHYSICAL AND SOCIAL

SCIENCES

SULTANPUR

(2009-2011)
SUBMITTED BY:

VINITA SINGH

ACKNOWLEDGEMENT

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I am extremely thankful & indebted to the numerous BHEL executives and

managerial staff who provided vital information about the functioning of their

respective departments thus helping me to gain an overall idea about the

working of organization. I am highly thankful for the support & guidance of

each of them.

I am extremely thankful to Mr. Kshitij Jain (Senior manager) for providing

me the opportunity to undergo this training and to work on my project. I also

express my thanks to all the members of HRD for their help & cooperation and

for giving me their valuable time &helping me to grasp the concepts of

industrial relation.

I wish to give my sincere regards to my respected teachers who guided me

to build a concrete platform before sending me on training so that I can land

out firmly in all respects.My parents blessing and co-operation from entire

family had been my strength to complete this study. Thanks are due to

employee of the company and friends who co-operated in this work.

Thanks are also due to Mathew bhaskar singh

VINITA SINGH

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MBA II nd SEM

DECLARATION

I declare that the project report entitled “INDUSTRIAL RELATIONS IN

BHEL Varanasi” under the guidance of Mr. Kshitij Jain (Senior manager)
from 12th of june 2010 is prepared by me as a part of partial fulfillment of the
requirement of award of MBA.
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VINITA SINGH

CONTENTS
1. PREFACE.
2. INTRODUCTION TO BHEL Varanasi
 Vision,Mission,and Values
 Corporate profile
 Business policy
 Quality policy
 Operating business areas
 BHEL-An Overview
 Milestones

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  Departments

5. RESEARCH METHODOLOGY

6. OBJECTIVES OF STUDY
7. EXECUTIVE SUMMARY
8. DATA ANALYSIS &INTERPRETATIONS
9. SUGGESTIONS
10. CONCLUSION
11. LIMITATIONS
12. ANNEXURE
13. BIBLIOGRAPHY

BHEL

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 PREFACE

Summer Training constitutes an important part of a good practice Oriented

management course. According to the syllabus of MBA each student of
department has to go 6 week practical training in a commercial organization or
industry. So on partial fulfillment of this requirement, I under went this training
at BHARAT HEAVY ELECTICALS LTD. Practical training is necessary to
learn as to how theoretical can be put to the practical uses. I went to the training
knowing fairly well some basic principal of management and it’s allied out in
the books are meant for ideal situation of a concern. So, much of that, at time, it
seems as if they have lost their identity.

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During my short stay at the organization, I had a proper visit in factory . The
way in which I collected information -

1. Discussion with management and its employees

2. Interaction with workers

As I was working on labour welfare activities so I focused on that and gone
through site visit specially “factory site” I talked to labor, HR person, and
collected my information from there.

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BH
Page 8
 INTRODUCTION

BHEL is the largest engineering and manufacturing enterprise in

India in the energy-related/infrastructure sector, today. BHEL was established more than 40
years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream
that has been more than realized with a well-recognized track record of performance. The
company has been earning profits continuously since 1971-72 and paying dividends since
1976-77.

BHEL manufactures over 180 products under 30

major product groups and caters to core sectors of the

Indian Economy viz., Power Generation & Transmission, Industry, Transportation,

Renewable Energy, etc.

The wide network of BHEL's 14 manufacturing divisions, four Power Sector

regional centers, over 100 project sites, eight service centers, 18 regional offices
and one subsidiary enables the Company to promptly serve its customers and
provide them with suitable products, systems and services -- efficiently and at
competitive prices. The high level of quality & reliability of its products is due
to the emphasis on design, engineering and manufacturing to international
standards by acquiring and adapting some of the best technologies from leading
companies in the world, together with the technologies developed in its own
R&D centers.

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BHEL has acquired certifications to Quality Management Systems (ISO 9001),
Environmental Management Systems (ISO 14001) and Occupational Health &
Safety Management Systems (OHSAS 18001) and is also well on its journey
towards Total Quality Management.

BHEL has

Installed equipment for over 90,000 MW of power generation -- for Utilities,

Captive and Industrial users.
Supplied over 2,25,000 MVA transformer capacity and other equipment
operating in Transmission & Distribution network up to 400 kV (AC & DC).
Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
Supplied Traction electrics and AC/DC locos to power over 12,000 kms
Railway network.
Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organised, around three business sectors namely Power,
Industry - including Transmission, Transportation and Renewable Energy - and
Overseas Business. This enables BHEL to have a strong customer orientation,
to be sensitive to his needs and respond quickly to the changes in the market.
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HUMAN RESOURCE DEVELOPMENT

INSTITUTE

BHEL has envisioned becoming "A World Class

Engineering Enterprise

committed to enhancing stakeholder value". Force behind realization of this vision

and the source of our competitive advantage is the energy and ideas of our 44,000
strong highly skilled and motivated people.
The Human Resource Development Institute situated in NOIDA, a corner-stone of
BHEL learning infrastructure, along with Advanced Technical Education Center
(ATEC) in Hyderabad and the Human Resource Development Center at the
manufacturing Units, through various organizational developmental efforts ensure
that the prime resource of the organization – the Human Capital is “Always in a
state of Readiness”, to meet the dynamic challenges posed by a fast changing
environment. It is their constant endeavor to take the HRD activities to the
strategic level of becoming active partner to the (organizational) pursuits of
achieving the organizational goals.
It aims at making its employee well equipped with new technology, techniques and
methods.

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And for this reason it organizes many training and development programmes at
company level and are practiced in various other unit time to time.
It organizes training for managerial, technical, top level and for labours any to
analyze results judge them time to time.

BHEL IN VARANASI
Heavy Equipment Repair Plant(HERP)

Varanasi is endowed with five universities, Lord Buddha’s first preaching

center and many religion / cultural centers, situated near the holy Ganga, with

Lord Kashi Vishwanath Temple at the heart of it. HERP is located at Shivpur,

11 Kms from main railway station and 15 Kms from Varanasi Airport.

This power belt supplies 10650 MW of power to the country. In the line with

BHEL’s of providing constant service at their doorsteps, the idea of establishing

repair shop in the vicinity of power station was mooted objective.

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Accordingly, two repair plants at Bombay & Varanasi came into existence, the

foundation equipment repair plant sprawling in 29.8 acre area at Varanasi was

laid on 20th September 1984 by Chief Minister of U.P. Shri Narayan Dutt Tiwari

within a short span of 21 month much before the schedule.

Starting a manufacturer of O&M spares for the boiler and boiler auxiliaries, repair

activities got a real break in 1990 when rebabitting of TG set bearing was taken up in

the plant. Since than rebabitting of different type of bearing including an

unconventional synchronous condenser has been carried out to the entire satisfaction

of the customers. Now HERP manufactures turbine spares, tools & tackles complete

spares of bowl mill XRP 623,803,883 & 1003. The unit has a plan to add Constant

load hanger, Variable load hanger & condensate polishing unit in near future.

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 Through small in size, HERP has been in adequate attention to all the

facts of plant operation like computerization, inventory control, quality

assurance. In order to channellies the creative energy of employees

suggestion scheme and quality circle and productivity improvement

project are in operation.

HERP takes pride in being one of the best among BHEL unit in term of value

added per employee. it has a track reward of continuing harmonious industrial

relations. Being a public sector, HERP is aware of social responsibility as a

corporate citizen as quality of like for the residents of near by area.

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 VISION:
• To become a continuously growing world class company.
• To harness the growth potential & sustain profitable growth.
• To deliver high quality & cost competitive products & to be the first choice
of customers.
• Create an inspiring work environment to unleash the creative energy of
people.
• Achieve excellence in enterprise management.
• Be a respected corporate citizen, ensure clean & green environment &
develop vibrant communities.

MISSION:
To be an Indian Multinational Engineering Enterprise providing Total Business
Solution through Quality Products, Systems and Services in the fields of Energy,
Industry, Transportation, Infrastructure and other potential areas

VALUES
• Commitment
• Customer satisfaction
• Continuous improvement
• Concern for environment
• Creativity & innovation

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 BUSINESS POLICY

In-line with company's vision, mission and values, we dedicate ourselves

to sustained growth with increasing positive economic value addition,

customer focused Business Leadership and welfare of society.

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 QUALITY POLICY

In its quest to be World-class, BHEL pursues Continual Improvement in

the Quality of its Products, Services and Performance leading to Total

Customer Satisfaction and Business Growth, through dedication,

commitment and team work of all employees.

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Page 18
 Achievements

BHEL has put in place a number of initiatives, as follows,

.
1. Strengthening company’s core businesses of Power Generation,
Transmission & Distribution, Transportation and Industrial Systems &
Products, through accelerated project completion and consequent
benefits to customers, along with new initiatives in marketing,
technology, facility up-gradation and modernization, enhancing
operational effectiveness etc.
i. .
2. Business Development efforts in related and allied areas utilizing the
organizational strengths and forming customer focused specialized
business groups e.g. formation of Oil Sector R&M Business Group to
address business in Renovation and Modernization of off-shore and on-
shore oil platforms, downstream petroleum refining areas and Power
Plant Operational Services Group to provide Operations and
Maintenance (O&M), Services for Power Plants.

3. After Market Services being the areas for future growth, spares and
R&M services business have been integrated into one focused group.

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 R&M for hydro sets is an area having major growth opportunity which
BHEL is poised to tap.
.
4. Exploring Business opportunities in areas like Energy Conservation,
Water Management, Pollution Control and Waste Management, Ports,
LNG terminals etc.

5. Positioning for Information technology Business leveraging the domain

knowledge in Power Sector& Engineering field to provide IT enabled
services for Power Sector and software services for Engineering
Industry.

Sustain and Enhance Exports for products and services through multi-
pronged approaches like entering new territories, focus on product sales,
entry into IPP
Products

Thermal Power Plants

• Steam turbines, boilers and generators of up to 800 MW capacity for utility and
combined-cycle applications;
Capacity to manufacture boilers and steam turbines with supercritical system cycle
parameter and matching generator up to 1000 MW unit size.
• Steam turbines, boilers and generators of CPP applications; capacity to manufacture
condensing, extraction, back pressure, injection or any combination of these types of
steam turbines.

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Nuclear Power Plants
• Steam generator & Turbine generator up to 700 MW capacity.

Gas-Based Power Plants

• Gas turbines of up to 280 MW (ISO) advance class rating.
• Gas turbine-based co-generation and combined-cycle systems of industry and utility
applications.
There are other products given as follows:

Hydro Power Plants

DG Power Plants

Industrial Sets

Boiler

Boiler Auxiliaries

Piping System

Heat Exchangers and Pressure Vessels

Pumps

Power Station Control Equipment

Switchgear

Bus Ducts

Transformers

Insulators

Industrial and Special Ceramics

Capacitors

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Electrical Machines

Compressors

Control Gear

Silicon Rectifiers

Thyristor GTO/IGBT Equipment

Power Devices

Transportation Equipment

Oil Field Equipment

Casting and Forgings

Seamless Steel Tubes

Distributed Power Generation and Small Hydro Plants

Systems and Services

BHEL at a glance

(Rs in Millions)
2007-08 2006-07 CHANGE (%)
Orders Received 50270 35643 41.0
Orders Outstanding 85200 55000 54.9
Turnover 21401 18739 14.2
Value added 8323 7182 15.9

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Employee (Nos.) 43636 42124 3.6
Profit before tax 4430 3736 18.6
Profit after tax 2859 2415 18.4
Dividend 746 600 24.4
Dividend tax 127 93 36.8
Retained earnings 1986 1722 15.3
Total assets 29352 22280 31.7
Net worth 10774 8788 22.6
Total borrowings 95 89 6.3
Debt: equity 0.01 0.01 0.0
Per share (in Rupees)
Net worth 220.1 179.5 22.6
Earnings 58.4 49.3 18.4
Economic value added 1810 1657 9.2

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 RESEARCH METHODOOGY

Meaning and objective:

Research simply means a search for fact- answer to question and solution to
problem. It is purposive investigation, it is an organised inquiry. It seeks to find
explanation to unexplained phenomenon to clarify the doubtful fact and to
correct the misconceived fact.
The objective of my research is to know about the INDUSTRIAL RELATION

in any particular organisation and how they are helpful for the workers and

management. The reason for choosing BHEL is very simple BHEL is successful

pubic sector undertaking (psu) which employed large workers and have many

trade unions (7 in case of BHEL). If we talk about the data used during the

research, there are two types of data-

(1) PRIMARY DATA

(2) SECONDARY DATA

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The data collected by taking opinion of the employees with the help of

questionnaire and discussion is primary data and the data taken from the

manuals of BHEL is secondary data. Both types of data were adequate, efficient

and qualitative. There is no doubt that secondary data is mostly used in the file.

SIZE OF SAMPLE:

As we know that the study is based on the sample size so having this point in

mind, I have determined the sample size of 100 employees. One questionnaire

was given to every employee and after discussion and taking their opinion; I

have analyzed them carefully with aid of my guides and concluded the result.

.
SURVEY WORK:
The information regarding the functioning of trade
unions is obtained from almost every department of organisation
Data is collected in three ways:-

1. Interview and Discussion

2. Observation.
3. Questionnaires
INTERVIEWS AND DISCUSSION:
Unstructured interview was conducted with HR officer. During the interview
question were asked about trade unions and discussion were made regarding
theeffective implementation in BHEL. At the time of filling questionnaire some
question were also asked respondent to obtain insight about the organisation.
OBSERVATION:

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Second step for collecting data is observation. At the time of field survey,
observation were made at there natural setting, employees were being observed
therefore, observation were under taking in every realistic conditions.
QUESTIONNAIRE:
The third steps for collecting the data are structured
questionnaire consist of a set of question presented to a respondent for his
response.
A structured questionnaire is one were the listing of question was in a
pre-arranged order and were the object of inquiry was revealed to the
respondent.
The form of question was used in questionnaire such as ended
question dichotomous question. The present work is based on the open-ended
question.
DATA PROCESSING:
In the last step, collected data have been presented in the form of
table, which has been analysed subsequently below the table. This analysis
finally helped in drawing conclusion and making suggestion.

OBJECTIVE OF THE STUDY

The main objective of the project “INDUSTRIAL RELATIONSHIP”

inB.H.E.L. Varanasi is to know the philosophy of trade unionism in
B.H.E.L. which maintains sound and spontaneous relationship
between management and workers. It also designed to:-
1. To know how they provide mechanism to safeguard interest of
the workers.
2. To know whether any kind of training programmes organized by the
trade unions for workers development.
3. To know that what extent they are aware of factories act and labour
laws.
4. To know about militant/negative activities of the trade union.
5. To know about the political effect on the trade union.
6. To know good or bad effect of more number of trade union in B.H.E.L.

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7. To know the role of the trade union in the organization.
8. To know how management deal with the trade union.

EXECUTIVE SUMMARY
The relationship between Employer and employee or trade unions is called
Industrial Relation. Harmonious relationship is necessary for both employers
and employees to safeguard the interests of the both the parties of the
production. In order to maintain good relationship with the employees, the main
functions of every organization should avoid any dispute with them or settle it
as early as possible so as to ensure industrial peace and higher productivity.
Personnel management is mainly concerned with the human relation in industry
because the main theme of personnel management is to get the work done by
the human power and it fails in its objectives if good industrial relation is
maintained. In other words good Industrial Relation means industrial peace
which is necessary for better and higher productions.

Definition:-
i. Industrial Relation is that part of management which is concerned with the
manpower of the enterprise – whether machine operator, skilled worker or
manager. BETHEL, SMITH & GROUP

ii. Industrial Relation is a relation between employer and employees, employees

and employees and employees and trade unions. - Industrial dispute Act 1947

iii. While moving from jungle of the definitions, here, Industrial Relation is
viewed as the “process by which people and their organizations interact at the
place of work to establish the terms and conditions of employment.”

The Industrial Relation relations also called as labor - management, employee-

employers relations.

A few notable features pertaining to Industrial Relations are as under:

1. Industrial Relation do not emerge in vacuum they are born of employment

relationship in an industrial setting. Without the existence of the two parties, i.e.
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labor and management, this relationship cannot exist. It is the industry, which
provides the environment for industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This
is the basis of adverse relationship. So the focus of Industrial Relations in on the
study of the attitudes, relationships, practices and procedure developed by the
contending parties to resolve or at least minimize conflicts.
3. As the labor and management do not operate in isolations but are parts of
large system, so the study of Industrial Relation also includes vital environment
issues like technology of the workplace, country’s socio-economic and political
environment, nation’s labor policy, attitude of trade unions workers and
employers.
4. Industrial Relation also involve the study of conditions conductive to the
labor, managements co-operations as well as the practices and procedures
required to elicit the desired co-operation from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards
of courts, customs and traditions, as well as policy framework laid down by the
governments for eliciting co-operations between labor and management.
Besides this, it makes an in-depth analysis of the interference patterns of the
executive and judiciary in the regulations of labor–managements relations.

In fact the concepts of Industrial Relations are very broad-based, drawing

heavily from a variety of discipline like social sciences, humanities, behavioral
sciences, laws etc.

In fact, Industrial Relation encompasses all such factors that influence behavior
of people at work. A few such important factors are details below:

1. Institution: It includes government, employers, trade unions, unions

federations or associations, government bodies, labor courts, tribunals and other
organizations which have direct or indirect impact on the industrial relations
systems.
2. Characters : It aims to study the role of workers unions and employers’
federations officials, shop stewards, industrial relations officers/ manager,
mediator/conciliators / arbitrator, judges of labor court, tribunal etc.
3. Methods : Focus on collective bargaining, workers’ participation in the
Industrial Relation schemes, discipline procedure, grievance re-dressal

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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.
4. Contents : 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.

Objectives of Industrial Relation

A. 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.
B. 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.
C. To raise productivity to a higher level in an era of full employment by
lessening the tendency to high turnover and frequency absenteeism.
D. To establish and nurse 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
and of the country as well.
E. To eliminate, as far as is possible and practicable, strikes, lockouts and
gheraos by providing reasonable wages, improved living and working
conditions, said fringe benefits.
F. To establish government control of such plants and units as are running at a
loss or in which productions has to be regulated in the public interest.
G. Improvements in the economic conditions of workers in the existing state of
industrial managements and political government.
H. Control exercised by the state over industrial undertaking with a view to
regulating production and promoting harmonious industrial relations.
I. Socializations or rationalization of industries by making he state itself a major
employer
J. Vesting of a proprietary interest of the workers in the industries in which they
are employed.

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The main aspect of Industrial Relations are :-

i. Labor Relations, i.e. relations between union and management.

ii. Employer-employees relations, i.e. relations between management and
employees.
iii. Group relations, i.e. relations between various groups of workmen.
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial Democracy.

IMPORTANCE OF INDUSTRIAL RELATIONS:

The healthy industrial relations are key to the progress. Their significance may
be discussed as under -
1. 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.
2. Reduction in Industrial Disputes – Good industrial relation 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.
3. 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

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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 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.
4. 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
employer’s authority. It will naturally have impact on production because they
recognize the interest of each other.
5. New Programmes – New programmes for workers development are
introduced in an atmosphere of peace such as training facilities, labor welfare
facilities etc. It increases the efficiency of workers resulting in higher and better
production at lower costs.
6. Reduced Wastage – Good industrial relations are maintained on the basis of
cooperation and recognition of each other. It will help increase production.
Wastages of man, material and machines are reduced to the minimum and thus
national interest is protected.

Thus, from the above discussion, 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 just
INDUSTRIAL RELATION IN
B.H.E.L., Varanasi

B.H.E.L. Varanasi is one of the production unit which is achieving

success in every sphere of power sector and locomotives.
The credit goes to both the management and workers.

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In Varanasi unit, the industrial relation between the
ice are to be achieved, there must be harmonious relationship between
management and labor..
management and trade unions are very sound i.e. very good
industrial relations.
In Varanasi unit the healthy labour-management relation develops due to
following condition:-
(1)In BHEL Varanasi, the existence of strong, well-organized, democratic
and responsible trade unions and associations of employer. These organizations
enhances job security of employees, help in increased workers participation in
management and give labour a dignified role in a society. These associations in
BHEL Jhansi also tend to create vantage ground for negotiation, consultations
and discussions on a mutual basis which ultimately lead to good labour-
management relationship.
(2) The spirit of collective bargaining and willingness to take recourse to voluntary
arbitration. The collective bargaining recognizes equality of status between the
two conflicting groups and prepares the ground in an atmosphere of trust and
good will for discussions, consultations and negations on matters of common
interest to both industry and labour.
BHEL Varanasi the collective bargaining, plant discipline and union relation are
the principle items which form the core of industrial relations.
(3)Besides all these, welfare works whether statutory or non-statutory, provided
by the BHEL MANAGEMENT. Trade-unions and employers create, maintain
and improve labour-management relations.
IN BHEL Varanasi,INDUSTRIAL DEMOCRACY exists in
which labour have the right to be associated with the management which is an
important factor in this plant for maintaining very good industrial relation.
The main councils and committees which exist in BHEL,JHANSI are-

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 1. PLANT COUNCIL.
2. SHOP COUNCIL – 1(Production transformer & PPC
. SHOP COUNCIL – 2 ( Loco PPC, BUSDUCT & FBM)
4. SHOP COUNCIL- 3 ( Design, Productivity & Main store, FCX)
There are nine committee exist in BHEL Varanasi. They are-
1. NATIONAL FESTIVAL ORGANIZES COMMITTEE.

2. CULTURAL COMMITTEE

3. PROVIDENT FUND COMMITTEE

4. SAFETY COMMITTEE

5. CANTEEN COMMITTEE

6.MEDICAL COMMITTEE

7. TOWNSHIP COMMITTEE

8. BHEL EDUCATION COMMITTEE

9. SPORTS AND WELFARE COMMITTEE

The trade unions members become the part of such
committees
STYLE OF MANAGEMENT IN BHEL Varanasi:-
Every the industry believe to sound i.e. very good relationship with the workers
through trade-unions as medium so was the case in BHEL, Varanasi .
In BHEL Varanasi, participative style is adopted by the BHEL
management. Under this type, labour is treated on an equal footing by
management i.e. neither as a “commodity” nor as a “child” but as an ally and a
friend, even a partner in the joint endeavor of improving the efficiency and
productivity of the enterprise.
• Very sound personal policies are adopted by the BHEL Varanasi

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management so that very good industrial relation is maintained in
the industry and plant go on the path of productivity and success.
•
Statuary and non-statuary welfare in the worker’s favours are
provided and supported by the BHEL management.
•
Besides all this, BHEL management had provided white passes, telephone
connections. Mobile connection, space for office, furniture for the trade-unions
so that good industrial relation being maintained.
• As a social responsibility, BHEL management had adopted a nearby
village providing primary level education and facilities for the factor
which maintained good relation with the trade-unions.
BHEL management always supports the fair, democratic
and free trade union election in Varanasi unit which maintains very good
Industrial relations.

TRADE-UNIONS IN B.H.E.L., Varanasi

1.BHEL SHARAMIK SANGH(BMS)-

It is an active union from the establishment of Jhansi unit BHEL. Sharamik

sangh is very influence from the starting years of foundation in 1975 elections.
It was placed at IInd position & emerged as strong opposition union. In initial
era of its emergence one representative of BMS got the opportunity to represent
the joint committee and also got the chance to took to management. BMS
representative above got the opportunity to represent the different committees.
In July 2002 JCM election, BMS secured the highest vote stood at

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 first position which is 33.62% of total votes. As it is secured more than 10%
vote it got the chance to represent the joint committee & councils. BHEL
sharmik sangh affiliated with BMS (Bhartiya Mazdoor Sangh).
2. BHARAT HEAVY ELECTRICALS MAZDOOR UNION
Varanasi (CITU)-
It is also active from the initial years of foundation but it is not much effective
among workers. In recent years it gained popularity among the workers through
maintaining deep personal relationship with workers to improve their living
standard. In 2002, JCM elections it secured 20.10% vote & placed at IInd
position CITU has the right to talk to most & it is affiliated with
CITU(CENTER OF INDIAN TRADE UNION).
2. HEAVY ELECTRICALS SHRAMIK TRADE UNIONS(HMS)-

After the establishment of Varanasi unit, there were five- trade unions
which are active, heavy trade unions is one of these.
If we go through the study of history of heavy electrical
shramik trade unions, it was not influence in organization. But after 1985 when
it stake its struggle against management for the safe guards among workers
eventually it emerged as a strong unions in 1997 elections and gained IInd
position. But it didn’t retain its position so as.
4. BHEL KARAMCHARI UNION-
It is newly born union in BHEL. It is existing in unit from
last seven years basically it is originated from the personal differences
of INTUC which was pertaining to leadership of union (INTUC).
In 2002 election it emerged as new rising stars & placed
4th position among seven union
WELFARE FACILITIES
Welfare service may broadly be classified into two categories:-
1. Intramural activities as rest centers, canteens, uniforms, library,
medical aid, subsidized food, and shift allowance etc.
2. Extramural activities which are undertaken outside the
Page 35
establishment such as family planning, child welfare, cooperative stores, credit
societies, vocational guidance, holiday homes, leave travel facilities, transport
to and from the place of work etc.
Labour welfare work may also be divided in to two categories:-
1. Statutory welfare work comprising the legal provisions in
various pieces of labour legislation.
2. Voluntary welfare work includes those activities, which are
undertaken by employers for their workers voluntarily. Many employers now a

day offers the following welfare amenities

Voluntarily WELFARE FACILITIES

Welfare service may broadly be classified into two categories:-

1. Intramural activities as rest centers, canteens, uniforms, library,
medical aid, subsidized food, and shift allowance etc.
2. Extramural activities which are undertaken outside the
establishment such as family planning, child welfare, cooperative stores, credit
societies, vocational guidance, holiday homes, leave travel facilities, transport
to and from the place of work etc.
Labour welfare work may also be divided in to two categories:-
1. Statutory welfare work comprising the legal provisions in
various pieces of labour legislation.
2. Voluntary welfare work includes those activities, which are undertaken by
employers for their workers voluntarily. Many employers now a day offers the
following welfare amenities voluntarily.

Statutory Employee’s Welfare Provision

Employers are required to offer welfare facilities to workers under

different labour laws. These are given below:
The Factories Act 1948
This act provides the following services to worker:

Page 36
• Washing facilities to male and female workers separately.

• Facilities for storing and during clothes.

• Facilities for occasional rest for workers who work in a standing

position for long hours.
• First aid boxes or cup boards one for every 150 workers and the
ambulance facilities if there are more than 500 workers.
• Canteens, where there are more than 250 workers. Shelters, rest
rooms and lunchrooms where over 150 workers are employed.
• Creche, if 30 or more workers are employed.
• Welfare officer, if 500 or more workers are employed
Non-Statutory Employees Welfare

(1) Education:
A scheme of workers education was envisaged on all India bases
by the government of India, way back in 1957.
The scheme had four main objectives.
• To develop strong unions through trained officials and more
enlightened members.
• To develop leadership from the rank and file.
• To equip organised labour to take its place in 9 democratic societies
and discharge its social and economic function.
• To promote among workers a greater understanding of the problems
of their economic environment and their privileges and obligations
as unions members and official and as citizen.
After assessing the scheme the National Commission on labour, 1969
(NCL) felt that scheme is not perfect and requires improvement. The committee
on labour welfare 1969 recommended that trade unions should assume on active
role in educating workers and run school for promoting literacy among the
children of workers. To be effective the programme of workers education
should be formulated administered and implemented by the trade union
themselves.
(2)Transportation:
The committee on labour welfare 1969, recommended the provision of
transport facilities to workers so that they can reach the work place punctually
and comfortable, most employers have, how even recognised the workers need

Page 37
for transport services and therefore responded favourably by providing
company owned/leased vehicles to workers in major industrial centers-
especially in the private sector. They have also come out with innovative
financing schemes in recent times enabling workers to buy their own bicycle,
scooters, motorcycle etc.
(3)Housing:
Housing is the primary need of a family in civilized life without of roof to
cover his head, the worker naturally feels frustrated about his poor standard of
living in big cities. Good houses mean possibility of home life happiness and
health; bad houses spell squalor, drink, diseases, immorality crime etc.
Overcrowding of people in dark quarter in slum areas is mainly responsible for
the outbreak of tuberculosis. According to Radha Kamal Mukherjee “In the
thousand slums of the industrial centres, manhood is unquestiable brutalised
womanhood dishonoured and childhood poisoned at its very source.
Recognising the need for housing accommodation.
An industrial housing scheme was introduced in 1952. Under this scheme
the central government offers loans to industrial workers for constructing
houses at confessional rates. The low-income group- housing scheme (1954)
subsidized housing scheme for economically weaker section of society (1952).
Rural house site-cum-hut construction scheme for landless workers (1972) has
been introduced to reduce the housing shortage to workers. The government has
also introduced housing scheme for winners and plantation workers in early
50s. Housing scheme for dockworkers was drawn up in 1964. To reduce
shortage of housing units in major industrial centers the central government
must extend it’s helping hand in a big way. Employers and housing finance
institution must also join hand to improve the lot of workers. The problem of
housing in India is of such a nasty climenslon that no single agency can
reasonably be expected to solve it.
Other facilities:
Other amenities such as washing facilities, drinking water provision of
first aid box, rest room, canteens, recreation centres have more or less, because
statutory obligation of employers now a days. Consumer cooperative societies
have also been flooded in various units to meet the credit needs of industrial
workers.
Employers:
Enlightened employers like TISCO, Hindustan lever, Godrej,
L&T Siemens, Voltas, Philips, HMTY, LIC, and B.H.E.L.have

Page 38
undertaken welfare activities in the interest of workers. The management of
TISCO runs a well-equipped hospital in Jamshedpur, supported by health
centers and dispensaries in different residential gymnasiums. Clubs, & school
are also set up by TISCO for the benefit of workers. Employers association
have also joined hand with employers in doing some welfare work for their
workers. The Indian jute mill Association, The Bombay mill owner Association
are worth mentioning here medical educational recreation facilities are also
extended in paper, sugar, steel, engineering industries also by the “employers to
employers” association.

Page 39
Page 40
 WORKMEN

1. What are the usual problems faced by you?

a. Working conditions

b. No guidance

c. Benefits

d. Working conditions

e. All

It is clearly seen from the pie chart that more than half of the workmen i.e. 55%

face no problems while working in BHEL. They are very much satisfied with

their working conditions, the guidance which they get from their supervisors,

Page 41
 their work timings, the benefits which they are getting etc. But, 25% of the

workmen have grievances related to working conditions and 20% of them are

not happy with their work timings.

The workmen not happy with their working conditions face problems with the

noise levels in the shop floor where they work as well as with the temperature

which is usually high and they are not provided with any alternative to

overcome this problem.

Some of the workmen who work in the factory area are not happy with their

work timings as they need to attend irregular shifts and at times they need to

work beyond the regular timings.

1. What are the usual problems faced by you?

aWorking condition

b.No guidance

c.Benefits

Page 42
d.Working conditions

e.All

It is clearly seen from the pie chart that more than half of the workmen i.e. 55%

face no problems while working in BHEL. They are very much satisfied with

their working conditions, the guidance which they get from their supervisors,

their work timings, the benefits which they are getting etc. But, 25% of the

workmen have grievances related to working conditions and 20% of them are

not happy with their work timings.

The workmen not happy with their working conditions face problems with the

noise levels in the shop floor where they work as well as with the temperature

which is usually high and they are not provided with any alternative to

overcome this problem.

Some of the workmen who work in the factory area are not happy with their

work timings as they need to attend irregular shifts and at times they need to

work beyond the regular timings.

Page 43
2. How do you try to resolve it ?

Page 44
a. On your own

b. By consulting your immediate superior

c. With the help of the Union

d. All

As is clear from the pie chart that whenever the workmen come across any

problem during their work, most of them try to consult their immediate superior

only to solve their problems but there seems to be a few constituting about 10%

which directly consults their union leader in order to solve their problems. This

is so because they find it more easier and reliable way to meet their grievances.

Page 45
1. Are you satisfied with the wages you are paid?

a.Yes

b. No

As we can see from the chart, 80% of the workmen say that they are satisfied

with their wages but 20% of the workmen are still not satisfied with their wages

and these include those who have a big family and they are not able to meet

their needs properly. Moreover with the present situation of rising prices, they

expect a hike in their wages to meet their needs.

1. Does it really return the worth you are provided to the

organization?

Page 46
a. Yes

b. No

Here, we can see the satisfaction levels among the workmen, as 90% of them

assert that they are being paid according to their work and not being underpaid.

This means that they are being paid in proportion to the service they are

providing to the organisation and not being made to work more and pay less.

But 10% of the workmen still feel that are not being paid according to their

work and they should be paid more than what they are being paid now. This is

because they feel that they are putting more physical labour as compared to the

workmen who are getting same wage with a comparative less physical effort

1. Is your working environment safe?

a. Yes

b. No
Page 47
 When asked about the safety of the working environment, a noticeable

difference was found in the response given by the workers. Around 60% of the

workmen say that the working environment of BHEL is very safe.

The remaining 40% of the workmen say that the working environment is

unsafe. The 40% of the workmen mostly belong to the factory areas, security

department, building department etc. They feel it to be unsafe as they get

exposed to different kinds of toxic gases, metal dusts and smoke and even had

to work with heavy machinery, volatile agents, hazardous materials, hand and

portable power tools, welding, cutting and brazing tools and electrical tolls.

1. Are you being provided with modern production techniques?

a.Yes
b.No

When asked the workmen whether they are provided with modern production

techniques, a demarcating response was seen to be found. Around 45% of the

Page 48
 workmen say that they are being provided with modernised equipments and

machines but surprisingly more than half of the workmen, constituting around

55% say that they are not being provided with modern production techniques.

This is due to the fact that some of the units were having the modern production

techniques but some units were not. The units like Heat Exchangers and

Fabrications, Pulverisers etc. do not require modernised machinery whereas the

units like Gas turbines, Steam turbines, Grinding etc. essentially require the

latest equipment and machinery.

SUPERVISORS

1. What are the usual problems faced by you?

a.Work Schedule

b.Benefits

c.Union interference in decision making

d.Working conditions

e.Disciplinary action

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f. All

As can be seen from the pie chart, varied answers were collected when the
supervisors were asked about the usual problems they face while working.
10% of them are not satisfied with their work schedule as sometimes they need

to stay beyond the working hours. At times they also need to work in different

shifts.

40% of them are not satisfied with the benefits they are getting.

20% of the supervisors face problem with the union interference in the decision-

making. Under the pressure of the union, they are unable to implement in time

the decisions made by their executives and immediate superiors. After

negotiations with the union, after remaking the decisions by the management,

they are implemented

40% of the supervisors are not happy with their working conditions as they

have to work in a noisy area with high temperature too. Some of them have to

work in very small work areas too. These grievances are of the supervisors who

work in the shop floor.

Page 50
1. How do you try to resolve it?
a. On your own
b. By consulting your immediate superior
c. With the help of the Union
d. All

When the supervisors are asked about their approach in resolving the problems,
30% of them say that they try to do it on their own and 70% prefer consulting
their superior rather than resolving the problems on their own. Both the set of
the employees approach the association as the final alternate to solve the
problems.

Page 51
1. Are you satisfied with your salary?
a. Yes
b. No

As far as salary is concerned, from the survey, it is found that there is an equal

division of the satisfaction level among the supervisors.

50% of the supervisors are satisfied with their salary and the rest 50% are not

satisfied with it. This is due to their mode of jobs, working conditions, hectic

work schedules and pressurised works.

1. Does your salary complement your work content?

a.Yes

Page 52
b.No

As can be seen from the pie chart, 60% of the supervisors feel that they are

being paid according to their work content but 40% of the supervisors feel that

they are not being paid according to their work content and that they should be

paid more. This shows that satisfaction level among these 40% supervisors

regarding their salary is quite low. The supervisors of this set mostly belong to

the shop floors where production works take place. Their satisfaction levels are

purely based on their work environment, conditions, their mode of job etc.

1. Are you satisfied with your promotional scheme?

a. Yes
b. To some extent

Page 53
c. No

When the supervisors were enquired about the promotional scheme, 30% were

satisfied to some extent but there constituted 70% of them who are not satisfied

at all with the present promotional scheme. They had a grievance that they are

not provided enough opportunities to get promoted. Comparing the three

categories of employees-workmen, supervisors and executives, the promotions

for the supervisors lack the pace.

1. Are you happy with the work timings?

a. Yes

b. No

Page 54
 Work timings seem to be very much suitable for all the supervisors as 100% of

them are satisfied as can be seen from the pie chart.

Shift system is followed in BHEL. Morning shift begins from 6.30a.m. and ends

at 3.30p.m. Evening shift begins from 3.30p.m. and continues till 11.30p.m.

Each of the supervisors has to work in one shift continuously for a week and

then in the other shift for the second week and this continues. Hence the

supervisors find it quite convenient to work with.

1. Do you think flexi timings are required?

a. Yes

b. No

As far as flexi timings are concerned there is a mixed view of the supervisors

where 50% of them want flexible work timings and the rest 50% do not think it

is required.

Page 55
 They are liable to work for 48 hours a week and so at times of emergency for

personal affairs the implementation of flexible timings would allow the needy

supervisors to take leave from work with pay and can compensate that work by

working extra some other day within the 48 hours of that week.

50% of the supervisors did not appreciate this concept and felt it to be of no use

as they are provided with a good leave policy which can be utilized when

needed.

EXECUTIVES

1. What are the usual problems faced by you?

a) Work schedule
b) Benefits
c) Union interference in decision making
d) Working conditions
e) Disciplinary action
f) All

Page 56
 As can be seen from the pie chart the usual problems which the executives face

while working gives varied answers. 20% of them are not satisfied with their

benefits.30% faces problem with union interference.50% are not happy with

their working condition.50% are not finding proper discipline as they say that

people working under them are not always following the rules.10% executives

are there who are not satisfied and have grievances regarding work schedule,

benefits they are receiving, union interference in decision making, working

condition and discipline.

2. How do you try to resolve them?

a. On your own
b. By consulting your immediate superior
c. With the help of the Union
d. All

When enquired about how these executives try to resolve their work problems, a

result came where it was found that 30% of them try to do it on their own and

90% prefer going to their superior for solving their problems and it includes the

ones who tries to do it on their own as well.

Page 57
1. Are you satisfied with your salary?
a. Yes
b. No

As far as satisfaction with salary is concerned, 80% of the executives are

satisfied with the salary they get but the rest 20% are still not satisfied with their

salary. This 20% of the executives include those who work in the shop floor.

They do expect a hike in their salary because of their mode of jobs, working

conditions, hectic work schedules and pressurised works.

Page 58
1. Does your salary complement your work content?
a. Yes
b. No

Surprisingly, it was found that the executives accept that they are being paid

according to their work and are not being made to do work more than they are

actually paid in spite of the fact that there are a few who still expect a hike in

salary.

Page 59
1. Are you satisfied with your promotional scheme?
a.Yes
b.To some extent
c.No

As far as promotional scheme is concerned, executives show a 100%

satisfaction level as they say that they are being promoted according to their

work performance majorly which is very much fair and satisfactory for them.

A four-year promotion scheme is followed in BHEL, where for every four

years, the executives are promoted from their present cadre to immediate higher

cadre.

1. Are you happy with the work timings?

a) Yes

Page 60
 b) No

Work timings also have shown a 100% satisfaction among the executives. They

are very much satisfied as the timings are convenient for them. Shift system is

followed in BHEL, where the morning shift begins from 6.45 a.m. and ends at

3.30 p.m. and the noon shift starts from 3.30p.m. till 11:30 p.m.

SUGGESTIONS
B.H.E.L. Varanasi a very good Industrial relationship is maintained
between trade union and management.
Although trade union in B.H.E.L. Varanasi are well disciplined and workers
well framed oriented but still there is some lapses in trade unions policies which
make workers discontented. So for the purpose of removing all those
weaknesses and lapses and to maintain good industrial relations management
and workers themselves give few suggestions to the trade union leader and
members during the survey, which are:-
1. Apathetic attitude of trade union towards work and workers create the climate
of unrest and annoyance. So it is needed that they must devoted and dedicated
them towards work so as to increase the productivity and profitability of the
organization.

Page 61
2. Trade union must organized training programme for workers which can
increase their level of awareness and develop them for more advance
technology.
3. Most of the workers believe that management and trade union both is the chip
of the same block. They all are involved in personal satisfaction and not a bit
concerned about workers so they must create the climate of believe and
faithfulness among the workers.
4. Personal benefits by the union leader should be abolished.
By following all the suggestion trade union may prove productive for the
organization which directly or indirectly benefited the industry, nation and more
that is benefited to humanity.

In this way, a very HEALTHY INDUSTRIAL

RELATIONSHIP is maintained between workers (trade
union) and management in B.H.E.L. Varanasi.

CONCLUSION
After analysis every aspect by the data obtained through personal
interview questionnaires, the main substance that is extracted is that “a very
healthy industrial relationship is maintaining
between the trade unions and management in B.H.E.L. Varanasi”.
Trade unions are essential part of the organization, without the
mediation of trade union management can’t communicate with the workers
properly because trade unions are close to the workers so they can easily
interact with them, can understand their problems in better manner. In case of
the BHEL all the seven trade unions believes in peaceful table talk none of them
involves in any kind of destruction negative activities.
Although workers are not fully satisfied with the trade union’s polices
but still they consider that unions play important role in the organization for
their welfare. Trade union act as bargainers for demanding the fair wages from
management for them and also act as enemies if they find that management is
trying to exploit the workers.
To achieve their objective, trade union may employ a variety of means-
the means depend upon the attitude of the management regarding the matter.
On the other hand, participative type of management occurs in B.H.E.L.
Jhansi. Under this type, labour is treated as equal footing by the management
Page 62
 that is neither as a “commodity nor as a child but as an ally and a friend”, even a
partner in the joint endeavour of improving the efficiency and productivity of
the enterprise.
Every police which is made by the management has got the full support
of the trade union which was in power. Management also accept the importance
of the trade union in an enterprise.

LIMITATIONS

1. TIME FACTOR: The study has been completed during a short period .so it was
not possible to study the problems well in details.

2. NON AVAILABILITY: Non –availability of the right persons creates the

problem in getting right and accurate information.

Page 63
3. REGION FACTOR : Region factor was also problem only executives of
personnel department were chosen for collecting the information .

ANNEXURE

QUESTIONNAIRE

WORKMEN

Page 64
 1. What are the usual problems faced by you?

a.Working conditions

b.No guidance

c.Benefits

d.Working conditions

e.All

2. What are the usual problems faced by you?

a. condition

b.No guidance

c.Benefits

d.Working conditions

3. How do you try to resolve it ?

a.On your own

b.By consulting your immediate superior

c.With the help of the Union

d.All

4. Are you satisfied with the wages you are paid?

Page 65
a. Yes

b. No

1. Does it really return the worth you are provided to the

organization?

a. Yes

b. No

2. Is your working environment safe?

a.Yes

b.No

3. Are you being provided with modern production techniques?

a.Yes
b.No
SUPERVISORS

1.What are the usual problems faced by you?

a.Work Schedule

b.Benefits

c.Union interference in decision making

Page 66
d.Working conditions

e.Disciplinary action

f.All

2. How do you try to resolve it?

a.On your own
b.By consulting your immediate superior
c.With the help of the Union
d.All

3.Are you satisfied with your salary?

a.Yes
b.No

4.Does your salary complement your work content?

a.Yes
b.No

5.Are you satisfied with your promotional scheme?

a. Yes
b.To some extent
c . No

6.Are you happy with the work timings?

a. Yes

b. No

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 7. Do you think flexi timings are required?

a. Yes

b. No

EXECUTIVES

1. What are the usual problems faced by you?

a.Work schedule
b.Benefits
c.Union interference in decision making
d.Working conditions
e.Disciplinary action
f.All

2. How do you try to resolve them?

a.On your own
b.By consulting your immediate superior
c.With the help of the Union
d.All

3. Are you satisfied with your salary?

a.Yes
b.No
4. Does your salary complement your work content?

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 a.Yes
b.No

5. Are you satisfied with your promotional scheme?

a.Yes
b.To some extent
c.No

6. Are you happy with the work timings?

a. Yes
b. No

BIBLIOGRAPHY

1. Human Resource Management (C.V Mamoria)

2. Company Law (N.D.KAPOOR)

3. BHEL Manual

4. BHEL Annual report

Page 69
5. HRM Review

6. http://www.bhelherp.com

7. http://www.bhel.com

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