INDUSTRIAL RELATION IN SAIL

COMPANY PROFILE

Steel Authority of India Limited (SAIL) is the leading steel-making company in India.
SAIL traces its origin to the formative years of an emerging nation, India. After independence
the builders of modern India worked with a vision -to lay the infrastructure for rapid
industrialization of the country .It is a fully integrated iron and steel maker, producing both
basic and special steels for domestic construction, engineering, power, railway, automotive
and defence industries and for sale in export markets. Ranked amongst the top ten public
sector companies in India in terms of turnover, SAIL manufactures and sells abroad range of
steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical
sheets, structural, railway products, plates, bars and rods, stainless steel and other alloy steels.
SAIL produces iron and steel at five integrated plants and three special steel plants, located
principally in the eastern and central regions of India and situated close to domestic sources
of raw materials, including the Company's iron ore, limestone and dolomite mines.

The company has the distinction of being India's largest producer of iron ore and of
having the country's second largest mines network. This gives SAIL a competitive edge in
terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel
making. SAIL's wide ranges of long and flat steel products are much in demand in the
domestic as well as the international market. This vital responsibility is carried out by SAIL's
own Central Marketing Organisation (CMO) and the International Trade Division. CMO
encompasses a wide network of 34 branch offices and 54 stockyards located in major cities
and towns throughout India.

With technical and managerial expertise and know-how in steel making gained over
four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide. SAIL has a well-equipped Research and Development
Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and
develop new technologies for the steel industry .Besides, SAIL has its own in-house Centre
for Engineering and Technology. (CET), Management Training Institute (MTI) and Safety
Organisation at Ranchi. Our captive mines are under the control of the Raw Materials
Division in Kolkata. The Environment Management Division and Growth Division of SAIL
operate from their headquarters in Kolkata. Almost all our plants and major units are ISO
Certified.

ROURKELA STEEL PLANT

Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in
India, was set up with German collaboration with an installed capacity of 1 million tonnes.
Subsequently, the capacity was enhanced to 1.9 million tonnes. The plant was modernized in
the mid 1990s with a number of new units with state-of -the-art facilities. Most of the old
units have also been revamped for effecting substantial improvement in the quality of
products, reducing the cost and ensuring cleaner environment.

The govt. of India under the able leadership of the then Prime Minister Pt. Jawaharlal
Nehru, decided to set up large steel plants by the government itself after the general election
of 1952. Rourkela and its adjacent areas are rich in iron ores, manganese, dolomite and lime
stones, the basic materials required for production of steel and iron. Considering Rourkela to
be the best place for a steel plant, the survey work was completed in the year 1954. The
infrastructure work of the plant was accomplished in between 1955 and 1960. The Republic
of Germany extended technical know how for the construction of the steel plant and the plant
was considered a joint venture of the govt. of India and Germany. The initial production limit
of one million tonnes steel per annum was raised to 1.8 million tonnes in the subsequent
years.

The internationally reputed firms like the Krrups, Dimag, G.H.H. Sag, Scholomen,
Cemens and Voist Eipine etc supplied different machines and machinery parts to the plant at
the beginning stage. The Rourkela Steel Plant took the part of leadership in the process of
steel production under L.D. techniques. It could also establish itself as one of the premier
industries of the world under the system of basic oxygen converter. The extension work of the
plant was over by the year 1968. A circular welding pipe plant and special plate plant were set
up in the decade of seventies for production of different ready -made materials. To avoid
scarcity of power supply, power plant was set up with a capacity of 120 M. W at the plant.
The power plant is able to cater the requirement of power supply from the year 1986.

SPECIAL FEATURES OF RSP:

 It is the first plant in Asia to adopt LD process of steel making.

 It is the only plant producing large diameter ERW I SW Pipes conforming to most
rigid standards of API.

 It is the only plant in SAIL producing Cold Rolled Non Oriented (CRNO) sheets for
use in the electric industries with installed capacities of 73,000 ton per year.

 It is the first integrated steel plant in SAIL family to produce 100% of steel through
the cost effective and quality centered continuous casting route.

 All the major production departments and some service departments certified with
ISO 9001 :2000 QMS.

 Silicon Steel Mill, Environmental Engineering Department and Sinter Plant -II, Hot
Strip Mill and Plate Mill certified with ISO 14001 :2004 EMS.

PRODUCT AND IT APPLICA TIONS

Products Applications

HR Coils LPG Cylinders, automobile, railway wagon chasis and all types of
high strength needs.

Plates Pressure vessels, ship building and engineering structures

Chequered Plates Flooring & staircases in the industrial sectors and railway platforms etc.

CR Sheets & Coils Steel furniture, white goods like refrigerators, washing machines,
automobile bodies, railway coach paneling, drums, barrels, deep drawing
and extra deep drawing etc.

Galvanised Sheets Roofing, paneling, industrial sheeting, air conditioner ducting and structural

Electrolytic Tin Containers for packaging of various products including edible oils,
Plates vegetables and confectionary items.

Silicon Steel sheets Small generators, stators for high efficiency rotating equipment and relays
& etc.

Spiral Weld Pipes High pressure transportation of crude oil, natural gas and slurry
transportation, water supply, sewage disposals, grain silos, civil engineering
pilings etc.

Spiral Weld Pipes High pressure transportation of oil & water, sewage disposal, tube wells etc.
INDUSTRIAL RELATION IN RSP

Before 2004 working environment at RSP was taken up by Discipline Department

which was one of the reasons for RSP's huge loss continuously. After the year 2004, both the
workers and management realized that if they work united then only productivity and profit
of RSP is possible. The positive approach started from 2004 and the relationship continues to
improve future management and workers. So, we can blindly express that in this 21 st century
there is a good and co -ordinal relation between worker and management. They together share
both the bad and good times of RSP.

RSP is professionally managed through their IR System. RSP has positive industrial
relations with better understanding, better co-operation between management and worker
with greater emphasizing, grievance handling procedure, safety and various facilities
provided to the workers which motivates them to do their work hard.

TRADE UNION:

According to Data Yoder, "A Trade Union is a continuous association of Wage -

learners for the purpose of maintaining or improving the conditions of their work life."The
recognition of Trade Union in Rourkela Steel Plant is conducted by rules for verification of
membership and recognition of Trade Union's through secret ballot in industry .The Rourkela
Sramika Sangha (RSS) affiliated to Indian National Trade Union Congress (INTUC) has been
recognized as the sole bargaining agent for all RSP employees at Rourkela falling in the
union spheres and the union existing in RSP. The other trade unions other than RSS are:

1. RMS -Rourkela Majdoor Sangha

2. SETU

3. RIKKS

4. RWU -Rourkela Workers Union

5. SEAR

6. ILU - Ispat Labour Union

7. HSWA -Hindustan Steel Workers Association

8. KISS -Kalinga Ispat Sramika Sangha

9. JMS -Jharkhand Majdoor Sangha

10. RSP -Rourkela Sramika Panchayat

The recognized union in RSP is given the following facilities: -

 An office outside the premises of the industry with minimum fittings and fixtures,
electricity and water supply, free of cost

 Adequate number of office furniture one for all for office purpose.

 Wherever possible, one internal telephone connection to the union office and at least
two connections to the office bearers who are employee of industry or establishment
and reside in the country's township.

 To provide transport for the office bearers of the union then called for discussion by
the employer at places other than in the industry an allow TA/DA to such personnel as
per their entitlement treating the day shift discussion as on duty.

 To allow minimum of two representations to at least conciliation, arbitration and

adjudication cases in their cost.

All Registered Trade Unions who had participated in the verification of membership
through secret ballot in RSP were called upon to participate in the discussion at routine
intervals with a central consultative committee constituted by the management representing
various departments to improve welfare safety and other amenities concerning employees.

INDUSTRIAL DISCIPLINE:

The word 'DISCIPLINE' connotes that the number of a group should reasonably
conformed. Webster's dictionary gives three meanings of the word discipline. First it is the
training that corrects moulds, strength or profit. Secondly it is the control gained by enforcing
obedience. Thirdly it is essential for the smooth running of industrial peace which is the very
foundation of industrial democracy.In RSP all the settlement machineries are there to deal
with causes of misconduct. With impartiality and fairness has been introduced in the works
standing order which as a whole provides abetter discipline in the company.
NEW TRENDS OF INDUSTRIAL RELATION :-

The march of RSP towards profit after sustaining loss for last several years is now
noticeable from its result oriented performance, during 2003 -2004. The combined efforts of
all its employees and officers under the leadership of the managing director have made the
turnaround of RSP a successful phenomenon. This is now being sustained and improving
continuously.

Mass Contact Exercise

This meeting is popularly known as MCE in RSP. It is a unique procedure prevailing

in RSP conducted by the MD itself. In this meeting the MD interacts with merely 1500
workers every week (Wednesday, for 2 hours ). In this interaction nearly 50 different
employees from all the departments of RSP priorities before the organisation are spilt out and
factors that can pull back the plant from profitability are discussed. In all such interaction
safety of human lives and maintenance of plant machinery and equipment are focused, the
workers also give their suggestion, discuss about their grievances along with the company's
profitability.

Very encouraging results have been achieved from a large number of workshops,
interaction sessions, information sharing meetings and mass contact exercises on the survival
and future of RSP. Workers have started thinking for further improvement of the plant and
have come out with various suggestion many of which have been implemented such as
workers participation in the plant under the aforesaid process has reached its zenith and all
the employees both executives and non executives have thus directly participated in the
decision making process of the management. All this has resulted in improved work life
culture, transparency in administration and an understanding of the need of hour to make the
plants new found profitability a sustainable proposition.

All the above activities are driven by the MD itself under a movement called
"SAMSKAR" which is by itself unique in Indian Corporate history. The SAMSKAR
movement states that: -

"We have to create and sustain a peaceful work environment where every employee
can contribute to the plant in assigned area of work with full freedom and dignity and without
fear."
 In addition to the measures taken for implementation of various activities concerning
welfare, cleanliness, punctuality, system improvement etc steps have been taken to have
broad base discussion and considerations on the aforesaid aspects and other allied issues by
involving other employees and other important groups to improve production and
productivity.

Employee Relations and Employee Services at SAIL, RSP

In SAIL employee relations and employee services go hand in hand. Personalised
services to employees improve the employee – employer industrial relationships. The IR
scenario in SAIL has been fairly satisfactory. The concern for human beings transforms itself
into SAIL. Lookiong after the human resource is the main concern, which brings about
credibility and image in the organization.
Employee services in SAIL:
To look after the human resources in
i. Proper recruitment
ii. Efficient training
iii. Looking after promotions, transfers and leaves.
iv. Redressed of grievances
v. Housing and medical facilities.
vi. Recreational facilities.
vii. Other services.
The need is to provide these personalized services with efficiency, speed and dedication. It is
the responsibilities of the organization to ensure that individuals get a proper induction to the
organization are trained periodically to do their job.
In SAIL employee relations are improved by:
i. Adopting preventative rather than reactive strategies.
ii. Time bound implementation of unanimous recommendations of Bipartite forums.
iii. Monitoring of unproductive work practices.
iv. Better administration of welfare facilities.

EEFFCTS OF POOR INDSTRIAL RELATIONS

Poor Industrial Relation produces highly disquieting effects on the economic life of the
country. We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects: Modern industry and for that matter modern economy are
interdependent. Hence although the direct loss caused due to industrial conflict in any
one plant may not be very great, the total loss caused due to its multipliers effect on
the total economy is always very great.

2. Fall in normal tempo: poor Industrial Relations adversely affect the normal tempo of
work so that work far below the optimum level. Costs build up. Absenteeism and
labor turnover increase. Plants discipline breaks down and both the quality and quality
of production suffer .

3. Resistance of change: Dynamic industrial situation calls for change more or less
continuously. Methods have to be improved. Economics have to be introduced. New
products have to be designed, produced and put in the market. Each of these tasks
involves a whole chain of changes and this is resisted bitterly if these are industrial
conflict.

4. Frustration and social cost: every man comes to the work place not only to earn a
living. He wants to satisfy his social and egoistic needs also. When he finds difficulty
in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll
in terms of human frustration. They reduce cordiality and aggravate social tension.

PROBLEMS OF INDUSTRIAL RELATION:

 Due to surplus of manpower in Rourkela Steel Plant labour productivity could not be
achieved at the desired level which creates some problems in Industrial Relation
situation of RSP.

 A good number of employees had been recruited earlier are not fit for that posts in
which they are in now so they are unable to understand the practical scenario, which
become an obstacle in Industrial Relation of RSP .

 Multiplicity of trade unions also poses a problem.

 Sometimes terrible situations create due to some misunderstanding between

management and worker by Trade Union.
 Rigid labour legislation delay in disposal of grievances causes harassment for the
workers.

A VIEW FROM WORKERS AND MANAGEMENT

We have conducted an interview through questionnaire method and collected some

information regarding suggestions to improve healthier Industrial Relation in RSP from
worker management and union as well.

Workers suggest that:

There should be awareness programmes to be organized by he management in respect

of the benefits of good relationship and better future.

Union Representatives suggest that:

Vandalism in name of trade unions should not be tolerated within the working
premises of Rourkela Steel Plant.

Management suggests that:

There should be proper co-operation between management and workers. Workers

should help the management in decision making process so that the Industrial Relation
situation and productivity of Rourkela Steel Plant is better possible.