V. J. Textiles  ,CAST STUDY  solution

Read the case carefully and answer the questions given at the end.

 V. J. Textiles is a leading industry having a workforce of more than 1200 employees, engaged in the manufacture of cotton yarn of different counts. The company has a wellestablished distribution network in different parts of the country. It has modernised all its plants, with a view to imProve the productivity and maintain quality. To rnaintain good human relations in the plants and the organisation as a whole, it has extended all possible facilities to the employees. Compared to other mills, the employees of V. J. Industries are enjoying higher wages and other benefits. The company has a Chief Executive, followed by Executives in-charge of different functional areas. The Industrial Relations Department is headed by the Industrial Relations Manager. The employees are represented by five trade unions - A,B, C,D and E (unions are alphabetically presented based on membership) - out of which the top three unions are recognised by the management for purposes of negotiations. All the unions have maintained good relations with the management individually and collectively. For the past ten years, the company has been distributing bonus to the workers at rates more than the statutory minimum prescribed under the Bonus Act. Last year, for declaration of rate of bonus, the management had a series of discussions with all recognised unions and finally annciunced a bonus, which was in turn agreed uponby all the recognised unions. The very next day when the management prepared the settlement and presented it before the union representatives, while Unions A and C signed the same, the leader of Union B refused to do so andwalkedout, statingthatthe rateof bonus declared was not sufficient. The next day, Union B issued a strike notice to the management asking f.or higher bonus. The management tried its level best to avoid the unpleasent situation, but in vain. As a result, the members of Union B went on strike. They were joined by the members of Union D. During the strike, the management could probe the reason for the deviant behaviour of Union B leader; it was found that leader of Union A" soon after the first meeting, had stated in the presence of a group of workers, " It is because of me thatthe managementhas agreed to declare this much amount of bonus to the employees; Union B has miserably failed in its talks with the management for want of initiative and involvement". This observation somehow reached the leader of Union B as a result of which he felt insulted, Soon after identifying the reason for Union B's strike call, the Industrial Relations Manager brought about a compromise between the leaders of Unions A and B. Immediately after this meeting the strikers (members of Unions B and D) resumed work and the settlementwas signedforthe samerate of bonus as was originally agreed upon.

Questions:

 (a) Was the leader of Union A justified in making remarks which made the leader of Union B feel offended ?

(b) What should be management's long - term strategy for avoiding recurrence of inter-union differences on such issues ?

 (c) If you were the Industrial Relations Manager what would you have done had the Union B resorted to strike for a reason other than that mentioned in the case?