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HARISHA KOTAGIRI
SANIYA
MANSI GUPTA
ROHIT DHAWAN
Company Facts
Headquartered in Calcutta.
Bata sold over 60 million pairs per annum in
India and also exported its products.
Plants located in Batanagar (West Bengal),
Faridabad (Haryana), Bangalore (Karnataka),
Patna (Bihar) and Hosur (Tamil Nadu)
Distribution network of over 1,500 retail stores
and 27 wholesale depots.
Bata was Indias largest manufacturer and
marketer of footwear products.
Reasonably priced.
Sturdy footwear
Market valuation of Rs 3.7 billion
Employed over 15,000 people in its
manufacturing and sales operations.
Case Facts
Throughout its inception Bata had shown grow
thin profits, with the only loss shown in problems
was problems in 1995, but in 2000 Bata again
its downward which was mainly due to labor
problems.
At the center of all labor problems was the BMU
or Bata Mazdoor union in West Bengal.
Bata has always faced labor problems in its
major factories in West Bengal and Bangalore.
Lifting of the lockout also did not solve any problems as employees demanded that suspended colleagues be called
back. In 2004 Bata began a huge downsizing activity in West Bengal which it justified by stating that it was outsourcing its
finished products from china. This also led the workers to approach the government to intervene on their behalf.
Reasons For Strike
Downsizing
Change in management
Increase in working hours
Change in employment policy
Demand of union for workers participation in
management.
Wage hike
Inferences
The reasons for labor problems in Bata co. Ltd were as follows:
The management failed to make any meaningful communication with the workers
before making any decisions.
Bata had opened factories where trade unions and political parties had a very strong
and negative influence.
The interference of political parties ensures that the matters became violent and
through which such parties could satisfy their own agenda.
The company took drastic steps very frequently like lock down, retrenchments,
downsizing.
The top management only show the benefits of the company and not the problems of
workers.
The workers were heavily influenced by trade union and had no logic in decision
making.
Expatriates do not know about Indian culture and sensibilities of the Indian workers
and hence the decision was not very beneficial.
Measures Taken By Bata