In one public undertaking, a line manager was appointed as the chief of personnel. Within a year after taking up the assignment,


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Human Resource Management

Case Studies
CASE STUDY (20 Marks)
In one public undertaking, a line manager was appointed as the chief of personnel. Within a year after taking up the assignment, he had to sign a wage agreement with the workers’ union. The union at the time was dominated by non-technical staff. The union’s charter of demands favored the interest of the dominant member’s groups. It asked for a significant revision in the gardener’s pay, but was not equally vocal in pressing for the increase in the pay scales of the workers in certain technical grades. The management conceded these demands because the union cooperated with them in keeping the burden of the pay revision well within the guidelines of bureau of Public Enterprises (BPE) Once the agreement was signed and communicated to the employees/members by the management and the union respectively, there was commotion among the technical employees. They walked out of the union and formed a separate technical staff union. They marched round the company premises holding placards, which read, “Here grass cutters get more than the gas cutters” In the engineering assembly unit till the pay revision occurred, welding was a highly rated job.
But not any longer.

Answer the following question.

Q1. Was the action of union management justified and why?

Q2. . Forming a separate union was both right and wrong. Explain

Q3. What are the legal implications of forming a separate union?

Q4. If you were in the place of management, what factors would you like to consider before finalizing the wages.

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