Bata India’s HR Problems*

            


Details

Case Code : CLBS008
Publication date : 2004
Subject : Business Strategy
Industry : Footwear
Length : 03 Pages
Price : Rs. 50

To download this case click on the button below, and select the case from the list of available cases:

» Business Strategy
Short Case Studies
» Business Strategy Case Studies**
» Case Studies Collection
» ICMR Courseware
» View Detailed Pricing Info

Key words:

Recruitment, labor problems, labour dispute, industrial relations


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet focuses on the HR problems faced by Bata India. Labor strife and the management’s inability to deal with it effectively has resulted in huge losses for the company.

Issues:-

Introduction

For Bata, labor had always posed major problems. Strikes seemed to be a perennial problem. Bata’s chronically restive factory at Batanagar had always been plagued by labor strife. In 1992, the factory was closed for four and a half months.

In 1995, Bata entered into a 3-year bipartite agreement with the workers, represented by the then 10,000 strong Bata Mazdoor Union (BMU), which also had the West Bengal government as a signatory. It was in 1998, that the company for the first time signed another long-term bipartite agreement with the unions without any disruption of work.


Apprehensive about labor problems spilling over to other units, the company entered into similar long-term agreements with the unions at its manufacturing units at Bangalore and Faridabad.

On July 21, 1998, Weston, the managing director, was severely assaulted by four workers at the company’s factory at Batanagar, while he was attending a business meet. The incident occurred after a member of BMU, Arup Dutta, met Weston to discuss the issue of the suspended employees.....

Questions for Discussion:

1. Maintaining good industrial relations have always been a problem for Bata. Why? How do you think Bata can maintain sound industrial relation practices?

2. In 1999, the Bata management in a bid to further cut costs announced phasing out several welfare schemes at its Batanagar unit. Do you think it right to phase out welfare schemes to cut costs? Give reasons for your answer?