Atlantic Ice

Instructions:

1. Kindly go through the case attached below and find the solution for the questions
attached.
2. The solution must be given in a report format and you are free to explore your
objectives.
3. The devil resides in the details. Examine each and every aspect of the case and the
solution will present itself.
 CASE
Atlantic Ice Private Limited has the reputation of one of the largest supplier of packaged
drinking water all across India. It had a plant in Dinjong, India with an employee base of
1500 comprising of workers and officers.

With a consolidated sales turnover of 2000 crore in the FY16-17 it had established it’s
foothold as a leader in its segment. A monthly volume of 10, 00,000 units has made it the
most dependable company for packaged drinking water in the FMCG sector.

Last year a small fire had triggered a breakdown in a few bottling lines which brought
production to a halt for 4 days which forced some big clients to shut down their shops and
retail outlets- such was it’s dependability. However, the current spate of events which
unfolded had brought the entire plant to a grinding halt forcing it virtually out of business and
running the risk of losing it’s status as an important supplier to it’s clients.

Badli, the plant manager of Atlantic Ice Private Limited was sitting in his office pondering on
how the recent spate of events happening in the plant which had cut down production and
harming the business. Much to his dismay even the IR managers in the plant were clueless
how to deal with the current situation at hand given the fact that a lot of stakeholders were
involved in the entire process.

The backdrop of the events was as follows. Atlantic Ice lately had been facing a drop in
demand of it’s products owing to the advent of demonetisation and GST coming into the
picture which took a big hit on it’s clients. A few months back the Plant head at Atlantic Ice
had convened a meeting and discussed the issue of surplus manpower at the various
production lines which was becoming an increasing cost to the company. They had decided
to cut down on manpower owing to closing down of few lines. Over a span of 2-3 months the
manpower had been significantly cut down at major lines and the cost impact had been huge
for the company in terms of savings. This had increased the workload at all major lines due to
the requirement of the existing manpower having to now man two workstations
simultaneously.

The plant used to operate in 3 shifts each. Each time a shift used to get off target the other
shift used to take over the surplus. As per company policies, workers working overtime were
entitled to compensatory leave off. For example, if 2 workers of A shift take leave, 2 workers
from Shift C were made to work 8 hours extra in Shift A. Also, compensatory leave off given
for overtime work were being accumulated as workers were not getting a chance to avail
those leave off. There was increased resentment among the workers as the number of double
work shifts had increased and the overtime paid was not proportional and insignificant. The
plant had a recognized labor union going by the name ABC Kamgar Union. The union raised
the issue with the management and the management had decided to hear them out.

One day the target for A shift fell short of 200 units behind the target set for the day. It was
then that the shift in charge Mr. Kamath came to inspect the line and push the workers in
Shift B to speed up to cover the target for the day. While going through the roster for the shift
he realized that Bhanu who was working as a loader and a union office bearer under his
supervision had come late to workstation by an hour. The supervisor had been nursing
grievances against Bhanu for quite a few times. On this account, on at least two occasions in
the past, the supervisor had given oral warning to Bhanu. Besides he had also discussed this
case with other workers under his supervision who branded him as a habitual late comer. This
kind of discussion with peer workers was not liked by Bhanu as his self-esteem and prestige
was being undermined. When Kamath confronted Bhanu as to why he was late, Bhanu
replied back in harsh tone. This angered Kamath who threw some specific slur on him. This
led to a scuffle between Kamath and Bhanu during which Bhanu picked up a part from the
conveyor and hit Kamath with it. This immediately escalated to the management who
dismissed Bhanu. The Worker’s union who was already at odds with the management for not
solving the manpower problem saw this as an attempt on the part of the management to
weaken the union and knowingly target union office members to weaken them. The union
immediately took up the case and demanded Bhanu to be reinstated and an apology from Mr.
Kamath.

When no action came from the management, the workers resorted to a strike. When the
management intervened and tried to force the workers out it resorted to violence and damage
to property.

Questions:

1. Who is at fault in the whole issue?

2. What action can be taken by the management?
3. How could Kamath have handled the problem with Bhanu?
4. Was the management right in firing Bhanu?
5. On whom should the management take action to solve this problem?