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Examine the following case study relating to lockout at Bajaj Auto Ltd. (BAL)and answer the questions at the end of the case. Bajaj Auto Limited (BAL) is the market leader of the two-wheeler industry (BPL) has always enjoyed highest market share in this industry. BAL set upa second plant at Waluj ( Aurangabad) in January 1984. It employs 3,500 persons and has rated capacity to assemble 800 scooters a day. Its plant atPune is mucholder with double the rated capacity and twice the strength of employees.

In November 1987, the manaement of Auto Bajaj Ltd. (BPL)Waluj ( Aurangabad) was concerned about the situation that had arisen bacause of t lockout it had been forced to declare.

The lockout necessitated rethinking about the strategies that the organisation would have to follow, and the formulation of short-term strategies for coping with company`s loss in market share and heavy financial losses that would result from the lockout. It was estimated that the company would incure aloss at the rate of Rs. 69 lakhs per day during the period of lockout.

The Management of Bajaj Auto Ltd. had decided that all the workers will be recruited from the nearby rural areas of Marathwada in Vidarbha. As a policy, the company had decided against the transfer of any workmen from the Pune plant to Waluj. Pursurant to this Policy diploma-holders were recruited from Industrial Training Institute in the nearby region. and were trained at Pune before being placed at Waluj.

The Management was convinced about the useful role that the trade unions played in maintaining cordial relations with its employees. The Management, however, believed that only an internal union would be able to play a constructive role and help them to maintain cordial relationship with their employees. As a result of this belief, the company decided to promote an internal trade union. The purpose of the internal trade union was to serve as a representative body of workers which would be the communication link between the management and the employees.

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1. Comment on management`s approach toward

(a) recruitment of workmen for the Waluj plant,

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(b) formation of internal union, and

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(c) changes in standing orders.

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2. Comment on the charter of demands and the attitude of both the Union and

the management towards revision of wage structure.

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3. What were the real causes for the lookout ? Could it have been avoidei;

Give reasons.

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4. What should be done to resolve the conflict and. lift lockout?

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5. Once the lockout is lifted and normalcy is restored, what should be the

concerns of the management, both in shortrun and in the longrun to

prevent the recurrence of such lockouts?

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Last Updated: Tuesday, 01 September 2015 20:16
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