Sanjay Singh returned to his chamber after a long discussion with the general manager of the unit

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Sanjay Singh returned to his chamber after a long discussion with the general manager of the unit. The general manager instructed Sanjay, the APO, to suspend Mr Rajat Chawhan, a senior operator of the boiler plant, against whom an enquiry was pending. The allegation against Mr Chawhan was disobedience of the instructions of the management. Before Sanjay had taken his seat, for planning and executing the instructions of the general manager, Mr Laxmi Prasad, the general secretary of the registered trade union, stepped into the APO's chamber. He asked the whereabouts of Mr S. P. Dubey, the Head HR, who was incidentally on leave. On learning that Mr Dubey was on leave, Mr Prasad, in a commanding voice, instructed to Mr Sanjay that management should not take any steps against Mr Chawhan without holding a proper enquiry. Mr Laxmi Prasad further threatened that if any steps were taken by the management, the workers will immediately go for stoppage of the works.

 

Sanjay was in a dilemma. After completing his MBA, he had joined the BIC Group of Sugar Mills as the APO and was posted at Chakia, which was about 45 km away from Mazaffarpur, Bihar. Sugar factories were normally set up in small towns and were dependent on the sugar cane (the raw materials) grown in the area. The workers were mostly from the nearby villages, located at the close vicinity of the factory.

 

The labour union named 'Champaran Chini Mill Mazdoor Sangh' was a registered trade union under the Trade Unions Act, 1926, and was the only labour union in the unit. The labour union had a very strong bargaining power and its leaders, representing the members of the office-bearers, commanded almost 100 per cent support of its members.

 

The factory was located in a small town, so almost everyone in the organization knew each other. A small incident happening inside the factory often used to become the talk of the town and produce a wave of effect in the small town. This naturally had a strong impact on the management. So the management considered every demand made by the labour union with caution. The strategy of the management was not to throw away any of the suggestions proposed, or demands raised or expectations of the labour union, since it was deemed to be the voice of the people at large. The labour union's office-bearers also had no scope to act beyond the expectations of their members, since for them to support any issue without the support of the workers meant losing the support of the people, which the office-bearers could hardly choose to do.

 

Sanjay who was new to the organization was in a dilemma. He was not able to take a call on 'the justified step for him to go for'. He had learnt in his institution that maintaining amicable relationship with the union helps in terms of maintaining good industrial relations (IR). The procedure of taking a disciplinary action presupposes a preliminary enquiry. So on one hand, conceptually, Sanjay was eager to follow the due process of taking a disciplinary action against Mr Chauhan, as per the standing orders of the company, on the other hand, there was a pressure from the general manager of the company to immediately suspend Mr Chawhan.

 

Mr Chawhan had been working for more than 22 years and never had any track record of any disobedience of the lawful and reasonable orders of the management. He had all through been an employee of choice of his bosses and was known for possessing the skills of his trade. He was also known for maintaining a good relationship and behaviour with supervisors and his co-workers. So while Sanjay was not interested in initiating a hasty disciplinary procedure, the instruction of the general manager of the unit was compelling him to initiate the disciplinary action.

 

IR to Sanjay implied 'the complex human relationships which emerge in the work situations' between the management and the workers. It is the 'sensational', 'dynamic' and 'cause and effect' relationships generating both 'cooperation and conflict' out of 'collectivism' of the two groups, that is, the management and the workers.

 

Sanjay pondered for solutions. The general manager had his own logic, which was founded on the principles of discipline and the organization's interest. Laxmi Prasad, the union leader, had his own logic founded on the procedure and the process (of disciplinary procedure). Sanjay, the APO, can hardly defy the instructions of the general manager.

 

Will convincing Mr Laxmi Prasad serve the purpose? Should Sanjay convince the general manager for having the preliminary (fact-finding) enquiry before proceeding to suspend Mr Chawhan? Should Sanjay convince Mr Chawhan that suspension pending enquiry is not a disciplinary action?

 

Sanjay realized, while dealing with such sensitive labour issues as a part of managing IR, one should not only be ready to get his hands dirty, but stay prepared to get his hands b

 

1. Why Sanjay Singh feels that 'while dealing with such sensitive labour issues as a part of managing IR, one should not only be ready to get his hands dirty, but stay prepared to get his hands burnt'?

2. What would you have done in this context?