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CASE STUDY

Changing Industrial Relations In India’s


Mobile Phone Manufacturing Industry

Experiences From Nokia


GROUP 5
 GROUP MEMBERS :
Sarath Babu
Ashily.P.G.
Shika Manoj.K.P.
Vivek.P.
Reshma Ravi
Harish Nath
Athira Sundar
SUMMARY

 The Department of Information Technology within the


Government of India constituted the Task Force in August 2009.
 To suggest measures to stimulate the growth and development of
IT, ITES and Electronics Systems Design Manufacturing Industry
in the country.
 Task force priorities :
1. Expand existing clusters ( Sriperumbudur and Noida).
2. Create “islands of excellence” with an industrial ecosystem
which includes all segments of the value chain in one place.
THE INDUSTRIAL RELATIONS IN NOKIA SEZ

 The Nokia Campus in the Telecom Special Economic Zone


(SEZ) is a sprawling expanse of industrial activity

 It spread over 210 acres of land in Sriperumbudur.

 Case study talks about issues related with

* Deficiencies in labour standards and

* Low status of the employees

 Due to these reasons the workers went for strike in the Nokia
mobile phone manufacturing plant in Sriperumbudur .
STRIKES IN NOKIA
 The three ocassions were workers went for strikes in NOKIA :

* In August 2009

* In January 2010

* In July 2010

 IN AUGUST 2009 : Issues that caused the first strike were low
wages and refusal of the company to pay annual increments, as well
as a new wage package with very low salary increments.

 IN JANUARY 2010 : The second strike was caused by shift of


workers on the shop floor and later the dismissal of 63 workers due
to strike activities.
Cont…
 IN JULY 2010 : The third strike was organized, demanding the
reinstatement of the 63 suspended workers and a revision in the
wage settlement agreed upon after the first strike.

 The company that strives to promote itself as a socially


responsible corporation is not expected to take such a vindictive
stance.

 On the other hand the workers who are only demanding their
rights as enshrined in international and national law.
ASSUMPTIONS

 Almost all workers are young people but the company doesn't
utilized them optimally

 No proper communication between management and the employees

 Lack of respect for freedom of association

 The Nokia company failed to create trust in the mind of workers


SWOT ANALYSIS
STRENGTH

 It is in special economic zone.

 New hires are engaged as trainees or apprentices rather than as


employees.

 80% of employees are women.

WEAKNESS

 Contract workers were placed in the Nokia plant through 19


different contractors.

 Time tested strategy to create a reserve army of cheap labour


Cont…
OPPORTUNITIES
 Proper training for the employees for adopting new work
conditions.

 Make negotiation with the trade union.

 Proper communication to the employees.

 Proper decision making.


Cont…
THREATS
 Reputation of the company will be affected.

 Lack the local support for the organization.

 Entry of new employees to the organization will be


affected.

 Goodwill of the organization decreases.


PROBLEMS IDENTIFIED
 Then major problem is stared with the low salary rate of the
employees that Nokia provided.
 There are no proper arrangements about the time and shift of
the employees. So there is an uncertainty of rise in the company.
 No proper information or communications facility is there to
inform employees about their changes in work place and no
proper training is provide for them
 They try to solve problem by scenting off people rather than
negotiation. It will create further problem
 No collective bargaining is done by the company trade unions
and even by the government
SOLUTIONS
 Proper communication has to be maintained with the
employees. The employees were having an uncertainty of
employment. When a qualified employee lose the job, a
lower qualified worker will be having a fear of job loss.

 Proper security and medical facilities need to be provided


to the employees. Also training need to conducted to
create awareness on the need of using such facilities.

 More consideration should be given to local people when


considering for job positions.

 Ensure support from government


Cont…
 A proper and efficient appraisal is to be conducted. It should be
ensured employees are provided with salary which is proportional
to competitive companies and also govt standards need to be
maintained

 An efficient HR department with proper and periodic


communication with the employees is to be maintained

 A friendly relationship should be maintained with the trade unions

 When fixing the working shifts, personal factors of employees like


age, sex, marital status etc are to be considered

 Employees feedback need to be considered when fixing production


targets

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