In 2014, after Narendra Modi took over as the Prime Minister of India, he invited foreign companies to invest in India with his ‘Make in India’ campaign. While the campaign was discussed among the business circles and became an agenda for several companies, the news of Nokia’s closure was doing the rounds. While business experts were lining up to discuss the benefits of ‘Make in India’, the Nokia employees and trade unions were negotiating with the company and urging politicians to save Nokia and their jobs. But all their efforts went in vain and Nokia ended its run in India on November 1st 2014, and shifted its operations to Vietnam.
Since January 2013, Nokia faced tax disputes amounting to more than $3.5 billion. The Tamil Nadu Sales Tax department accused Nokia of showing domestic sales as exports and evading sales tax, while the Income Tax department accused the company of unpaid taxes, interest and penalties relating to the import of software from its Head Office in Finland. However, Nokia denied all the accusations as baseless. In September 2013, Nokia sold its Devices and Services division to Microsoft for $7.5 billion but kept Nokia’s Sriperumbudur factory out of the deal since it was mired in tax troubles and seized by the IT officials. Though, Microsoft initially announced that Nokia’s existing plant in TSEZ would be a contract manufacturing facility, later the manufacturing was shifted to Vietnam. And hence from November 1 2014 the Indian operations of Nokia at Sriperumbudur came to a grinding halt, leaving nearly 30,000 workers jobless disturbing the larger ecosystem.
While trade unions put efforts to save the plant, they could not do much except to protest and bargain the severance package for the last batch of the Nokia employees. Many industry experts opined that there was not much left for the trade unions to do except negotiating the severance package as none of the political parties and the governments seemed concerned in saving the interests of the workers...........................
In 2013, Nokia was the world’s second largest mobile phone (GSM, CDMA and WCDMA) manufacturer (Exhibit I). It was also engaged in the manufacture of mobile phone infrastructure, equipment for traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers, for every major market (Annexure I). Its mobile phones and other products were sold in more than 150 countries with its Devices and Services segment (other two segments being Location & Commerce/NAVTEQ and Nokia Siemens Networks) contributing around 60% of the Group’s revenue (Annexure II). Nokia, once the largest vendor and the market leader of mobile phones (with around 40% market share globally and 62.5% in India in 2007), sold its Devices and Services division to the US software giant Microsoft Corporation in 2013, owing to the failure of its products and operating system, advent of android devices from competitors and continuous fall in the market share of its mobile phones over the past 5 years (Exhibit II). Nokia, which began in 1865 with a paper mill, had an eventful journey of over 150 years (expanded into five businesses – rubber, cable, forestry, electronics and power generation) before its culmination. Headquartered in Finland, Nokia, as of December 2014, was still a leader in the fields of network infrastructure (Nokia Networks), location-based technologies (HERE) and advanced technologies and intellectual property rights (Nokia Technologies), sans the Devices and Services division.....................
In 1994, the Indian government opened up the country’s telecom market to private enterprises. Recognizing India’s potential market, several global telecom handset manufacturers chose to test the Indian waters. One among them was Finland-based Nokia, which made its entry into the country in 1994, and forged ahead of rivals to command the top spot in the market. With its focus on innovative product features (designs unique to India – cheaper price, torch, battery life, ringtones, etc.), distribution, investment in manufacturing, and..............
In December 2004, Nokia announced that it would setup a mobile manufacturing factory in India and began scouting for an appropriate manufacturing destination in India. Nokia’s sales in India during that time were around 1 million units per month, but the company wanted to increase it to 6–7 million units per month. Till then the handsets were imported from China and sold in India.............
Though the factory was the largest in the world and claimed to be designed prioritising workers safety, and was providing better income for the employees, it was not free from problems. There were many problems at the factory – strikes, no provision of rest area for men, salaries were frozen for a year, accidents due to faulty machinery, problem with the local politicians, etc. In 2010, Ambika (22), an assembly-line employee died as her head got trapped in the robotic loading machine..........
On October 31 2014, the members of the Nokia India Thozhilalar Sangam (NITS) (translation – Nokia India Workers Union) and the remaining 850 employees agreed to the settlement package (of ₹650,000 to ₹1 million18 depending on the experience of the worker excluding PF and gratuity) put forth by the Nokia management. Earlier, in October, the Nokia management had served an ultimatum to the union that, it either get the consent of the workers for the settlement package or accept the severance package as per government rules (15 days of salary per every working year)..........
On July 10th 2014, Chennai-based BYD Electronics India, one of the component manufacturers for Nokia, which ceased functioning after the June 21 –22 2014 protests at Nokia, was officially shutdown. Reports said that this was the first casualty since the announcement of the Nokia shutdown..........
After the announcement of the deal, Nokia entered into a ‘limited period service agreement’ with Microsoft to use the factory as a contract manufacturing facility. But the continuing uncertainty of tax dispute and freezing of assets by the IT department led Nokia to ramp down and shut the plant and shift production to Vietnam. On November 1st 2014, the Sriperumbudur plant was officially shutdown.........
While on one hand, the Indian Prime Minister Narendra Modi showcased India as a destination for manufacturing through his ‘Make in India’ campaign, Nokia’s closure, on the other hand, came as a blow to the campaign. In addition to creating a devastated labor situation in Tamil Nadu, the shutdown of the Nokia factory had killed one of the few functional electronics manufacturing ecosystems in India............
I. What do you think were the reasons behind the shutdown of the Nokia’s Sriperumbudur plant? Was its decision justifiable? Could it have been avoided?
II. How were the TSEZ workers and unions trying to save the jobs and the company from the closure? Explain the role of trade unions and collective bargaining in case of issues related to workers in factories/companies? What could be the relevant provisions of collective bargaining (as applicable from Industrial Disputes Act, 1947 and Trade Unions Act, 1926) that can be invoked to present the case of Nokia’s employees?
III. ..................
Exhibit I: Top Mobile Phone Brands in 2013
Exhibit II: Nokia’s Market Share
Exhibit III: Incentives and Facilities Offered to the SEZs
Exhibit IV: Nokia’s Volumes and Market Share
Exhibit V: Plight of Few Employees After Nokia
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Shubhangi agrawal.
Student at Amity Law School, Noida, India
Collective bargaining is the term used to define the process whereby employers must attempt to negotiate an agreement with the trade unions rather than with specific workers over terms of employment and working conditions. This is typically done with the objective to enable workers voice their concerns and engage in improved negotiations with their employers in order to fulfil certain demands and rights of the workers, including those pertaining to working hours, salary, working conditions, etc. This practice is often quite effective since it frequently results in companies acting to address the concerns of the employees. In India's private and public businesses, this method of resolving industrial disputes has revolutionised labour relations. This is due to the fact that business and commerce will inevitably encounter problems, and it is impractical to have courts adjudicate every one of them. As a result, using collective bargaining as a form of dispute resolution in the workplace has proven to be effective. This paper's primary objective is to critically analyse the concept of collective bargaining in general, including a study of its scope, aims, types, conditions, environment, theories, and various levels, among other topics. Additionally, it makes an effort to examine its concept from an Indian perspective in order to comprehend its framework and structure in the Indian context.
Research Paper
International Journal of Law Management and Humanities, Volume 6, Issue 1, Page 2075 - 2088
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Copyright © IJLMH 2021
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...allegations of mala fides, fraud or even corruption or other inducements. But in the absence of such allegations a settlement in the course of collective bargaining is entitled to due weight and...consideration. This Court then observed as under:“25. It has to be kept in view that under the scheme of labour legislations like the Act in the present case, collective bargaining and...the principle of industrial democracy permeate the relations between the management on the one hand and the Union which resorts to collective bargaining on behalf of its members-workmen with the...
...P.K Goswami, J.— This appeal by special leave brings forth a rather disquieting feature of union rivalry whereby the significance of collective bargaining , which is the forte...the President of the third respondent in this case. That being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is entitled to due weight and...that may influence parties to come to a settlement as a phased endeavour in the course of collective bargaining . Once cordiality is established between the employer and labour in arriving at a...
...investigation and settlement of industrial disputes and for certain other purposes mentioned in the Act. Under the Act, the principal techniques of settlement of disputes are — (1) Collective Bargaining , (2...Act.9. It has to be kept in view that the Act is based on the principle of collective bargaining for resolving industrial disputes and for maintaining industrial peace. Thus...during conciliation proceedings. In all these negotiations based on collective bargaining the individual workman necessarily recedes to the background. The reins of bargaining on his behalf are handed...
...have on the one hand to remember the importance of collective bargaining in the settlement of industrial disputes, and on the other hand, the principle that the party to a dispute should have a fair...great importance in modern industrial life of collective bargaining between the workman and the employers. It is well known how before the days of collective bargaining labour was at a great...disadvantage in obtaining reasonable terms for contracts of service from his employer. As trade unions developed in the country and collective bargaining became the rule the employers found it necessary and...
...unguided power on the Central Government to frame schemes affecting the conditions of service of the workmen without any scope for collective bargaining .4. In any...destruction of GIC workers' substantive right to collective bargaining , even though bank employees are fully competent to negotiate and enter into binding agreement. For exercising this right both are..., although in case of bank employees, with no rational differentia, the right to collective bargaining is recognised and not disturbed and the right to adjudication was recognised in Bharat Bank case...
...Orders get incorporated in the contract of service of each employee with his employer. A facet of collective bargaining is that any settlement arrived at between the parties would be treated as...in the contract of employment of each employee with his employer. As far as the incorporation of the results of collective bargaining into the individual contract of employment is concerned, the...courts have in effect created a presumption of more or less systematic translation of the results of collective bargaining into individual contracts where these results are in practice operative and...
...recognition of trade unions for facilitating collective bargaining for certain undertakings, to state their rights and obligations; to confer certain powers on unrecognised unions; to provide for...Court held that the Act was enacted to provide for facilitating collective bargaining for certain undertakings; to confer certain powers on unrecognised unions; to define and provide for the prevention.... It was made applicable to industries to which the BIR Act applied. It was clear from the scheme of the Act that, with a view to facilitating collective bargaining in certain undertakings, the concept...
...labour have Organised themselves into groups for the purpose of fighting their disputes and settling them on the basis of the theory that in union is strength, and collective bargaining has come to stay...relation to matters of collective bargaining and the like.”18. The justification for this rather long quotation is that it deals With the specific point now in...
...to redress the grievances of the workmen in the undertaking; that the Company is refusing to enter into the collective bargaining with the Union and in the circumstances it is alleged that the...and to meet and discuss grievances of the employees in the Undertaking and finally the Company is directed not to refuse collective bargaining with the Union.(b) Being aggrieved by the...stage of the matter viz., interim stage cannot direct the Company to enter into the collective bargaining with the Union. However, it is clarified that since the Complainant Union is the...
...a settlement as a phased endeavour in the course of collective bargaining . Once cordiality is established between the employer and labour in arriving at a settlement which operates well for the period... collective bargaining have impelled us not to interfere with this settlement.”11. The principles thus enunciated fully govern the facts of the case in...
...upon unions so formed a right to effectively function as an instrument for agitating and negotiating and by collective bargaining secure, uphold or enforce the demands of workmen in respect of their...object for which labour unions are brought into being and exist is to ensure collective bargaining by labour with the employers. The necessity for this has arisen from an incapacity stemming from the...handicap of poverty and consequent lack of bargaining power in workmen as compared with employers which is the raison d'etre for the existence of labour organizations. Collective bargaining in order...
...management of the petitioner Bank for the purpose of collective bargaining . The main grievance put forth by the respondent Association in the said petition was that the petitioner Bank had adopted a policy of...really commands the support of the majority of the employees and that such a procedure is intended to enable both the trade union and the employer to carry on collective bargaining efficaciously so that...industry and was of the view that, though such non-recognised unions may not have the right to participate in the process of collective bargaining with the employer over issues concerning the workmen in...
...) The legislative history indicates that the legislature, after providing broadly for the investigation and settlement of disputes on the basis of collective bargaining , recognised the need of individual...
...naturally produced an association of employers and a union of workmen, each recognising the other, for the necessary convenience of collective bargaining . Apparently, these hardware merchants huddled...throwing dim light on the rule regarding representation in industrial litigation. We deem it needless to go deeper into this question, for in industrial law, collective bargaining , union representation at...party array into a short and meaningful one, group representation through unions being familiar in collective bargaining and later litigation. We do not expect the rigid insistence on each workman...
... collective bargaining agent in the second respondent Board for a period of two years or till the next verification ballot, whichever was earlier. Subsequently verification ballot was not held in time...Employees Union, the Andhra Pradesh Electricity Board Employees Union and Telugu Nadu Vidyuth Karmika Sangh for the purpose of collective bargaining pending holding of verification ballot. The said order...law.6. I do not find any merit in the submission of the learned counsel. It should be noted that collective bargaining is a diplomacy between the Capital and the Labour. The whole...
...14 was entitled to act on behalf of all of them by way of collective bargaining and could legitimately enter into the settlement which was for the benefit of all workmen concerned. Under these...was a package deal entered into by Respondent 2-Union with the appellant-Company and in such a collective industrial bargaining there was always give and take; that there were no exceptional grounds...corruption or other inducements. But in the absence of such allegations a settlement in the course of collective bargaining is entitled to due weight and consideration.24...
...cessation of work may be loss to the management but the obvious intendment of such a collective bargaining strategy is to force the employer to accept the demand of the workers for betterment of...industrial disputes, which means adjudication of such disputes also. The Act envisages collective bargaining , contracts between union representing the workmen and the management, a matter which is...). Undoubtedly this expression must receive a wide connotation, calculated as it is to produce industrial peace. Indeed, the legislation substitutes for free bargaining between the parties a binding award...
...service rules but, in substance, are the result of collective bargaining with the management, as the writ petition itself reveals. These triple categories of new posts have been filled, admittedly...
... Collective Bargaining by Ludwig Teller, it is said at p. 536 that industrial arbitration may involve the extension of an existing agreement or the making of a new one, or in general the creation of new...distinction between commercial and industrial arbitration, and after referring to the same passage in Labour Disputes and Collective Bargaining by Ludwig Teller (Vol. 1, p. 536), proceeded to lay down as...
...industrial jurisprudence that the right of collective bargaining itself is a very valuable right. Where, therefore, in exercise of such a right the reference is made under S. 10 of the...here is very comprehensive in its terms. The modern industrial jurisprudence has advanced so much today that it had come to be recognised as collective bargaining . It is one of the most powerful...weapons in the hands of the employees. This Act is a legislation relating to such collective bargaining in economic field. That is the reason why we have referred to the very definition of “industrial...
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5. Laws Governing Trade Unions in India. In India, the right to form and join a trade union, and engage in collective bargaining is provided for under national and state-specific legislations. Time and again, the courts have upheld the right of workers to form or join a trade union in India.33.
Collective Bargaining: Five Case Studies" by Debbie Budlender, please visit www.wiego.org. Publication date: December 2012 ... (WIEGO). A Charitable Company Limited by Guarantee - Company No. 6273538, Registered Charity No. 1143510 WIEGO Secretariat WIEGO Limited Harvard Kennedy School, 521 Royal Exchange ... the unorganized sector in India ...
These case studies demonstrate the potential benefits of collective bargaining in India as well as the challenges faced in specific sectors. By studying successful examples and addressing the challenges faced, workers, trade unions, employers, and policymakers can work towards improving the working conditions and welfare of workers in India.
with management. The Indian Aluminium Company is one of the best published case studies on collective bargaining in India. It throws light on the factors responsible for creating a favourable bargaining relationship between the management and the union. The best example of an industry level agreement is offered by the textile industry of Bombay and
Abstract. During June-August 2013, Bajaj Auto Limited (BAL), a leading two-wheeler manufacturer of India, faced a labour dispute in its Chakan plant near Pune. The workers demanded a wage hike and ownership of company shares at '1 per share, which the management declined.
The initial documented case was between the Dunlop Rubber Company in West Bengal. Subsequently, the Indian Aluminium Company initiated its first five-year contract with its employees, setting a precedent for similar agreements in other companies. Furthermore, collective bargaining in India received a boost from various statutory provisions.
A collective bargaining agreement is essentially a legal agreement in written form between an employer and a trade or labour union representing the employees. It is the agreement that forms after the process of negotiation between the employer and the union or the workmen. It is an important stage in the process of collective bargaining that ...
This case is about the collective bargaining agreement between one of the world leading automobile manufacturers, General Motors Corporation (GM), and the United Auto Workers in late 2007. The agreement, which a number of experts have termed as historic, was the result of a very complex bargaining process. GM, which dominated the US market till 1980, with a market share of 46 percent, saw its ...
Coal India Limited Wage Pacts: Unions have used collective bargaining to gain better wages and bonuses for CIL workers who contribute significantly to the company's profits. Tata Motors Agreement: The Tata Motors union signed a pioneering 5-year wage settlement in 2017 using an inflation-linked formula, reducing adversarial bargaining.
This case study can be used to sensitize the participants of the broad provisions/tenets of collective bargaining mechanism. Set in the backdrop of Nokia's decision to shut its Indian plant (in Sriperumbudur, Tamil Nadu), invoking the relevant provisions of collective bargaining, this case study requires the participants to debate on alternative course of action in the interest of the employees.
A major study by the Employers Federation of India (EFI), published in the early 1970s, concluded that collective bargaining had made signi ficant progress since the early 1960s.6 It covered 109 collective agree ments, including 77 companies and 11 industrial associations. Details of industrial coverage are presented in Table 1. As this table ...
Collective Bargaining Case Studies, Collective Bargaining Case Study, ICMR develops Case Studies, Micro Case Studies, Latest Case Studies, Best Selling Case Studies, Short Case Studies, business research reports, courseware - in subjects like Collective Bargaining Cases, Marketing, Finance, Human Resource Management, Operations, Project Management, Business Ethics, Business strategy, Corporate ...
The belief that collective bargaining in India is still in its preliminary and organizational stages and has very little or no impact on industrial relations seems to have no empirical referent, for in Karnataka (India) it was found, during 1972-1973, that the collective bargaining was the usual method of dispute settlement.
The collective bargaining in India remained limited in its scope and restricted in its coverage by a well defined legal structure. ... Under this Act, an establishment with power employing 10 workers and 20 workers in case of no power connection is a factory, but following provisions of the act are not applicable to all factories: Provision for ...
As a result, using collective bargaining as a form of dispute resolution in the workplace has proven to be effective. This paper's primary objective is to critically analyse the concept of collective bargaining in general, including a study of its scope, aims, types, conditions, environment, theories, and various levels, among other topics.
This. paper presents the findings of a set of case studies of collective bargaining by informal workers in five differenot countries. The research was conceived by Women in the Informal Economy: Globalizing and Or-ganizing (WIEGO) and supported by the Solidarity Centre. The research had these specific objectives:
Under the Act, the principal techniques of settlement of disputes are — (1) Collective Bargaining, (2...Act.9. It has to be kept in view that the Act is based on the principle of collective bargaining for resolving industrial disputes and for maintaining industrial peace. Thus...during conciliation proceedings.
roductionCharul Mishra, Symbiosis Law School, HyderabadCollective bargaining is a technique by which matters related to occupation, labour, wage etc. are resolved between wor. ers and managers in a plane diplomatic and affable manner. The. elementary skill involved involves the negotiation skills. In India, Labour laws are kept.
Collective bargaining is "the technique by which dispute as to conditions of employment is resolved amicably by agreement rather than coercion". [1] The idea of collective bargaining offers several advantages, such as safeguarding the fundamental rights of the working class, protecting them from exploitation, and ensuring the basic principles ...
Partly historical study of the development of collective bargaining in India, with international comparison. Comment on labour legislation and government policy affecting collective bargaining. Case studies of its development. Analysis and duration of collective agreements. ILO mentioned.
List of journal articles on the topic 'Collective bargaining, india'. Scholarly publications with full text pdf download. Related research topic ideas. ... The company has focused its attention on various projects and substantial resources. ... of India. This case study is based on the strike, which occurred in September 2019, during the wage ...