Assessing the industrial relation and labour law


Vardhman is the major textile producer in india and this group is established in 1965 of northen india at Ludhiana.the turnover recorded of RS 2210 crores (US$500 million)in 2005 06.Vardhman portfolio included in manufacturing and marketing in firbe ,alloy steel,sewing threads,yarns,fabrics.

Mission of vardhman

Vardhman aims to world class textile organistation producing wide range of products in the gobal textile achieve customer satisfaction through excellence in manufacturing and customer service totally based in creative combination of state of art technology and human resources andcommited to be responsible of corporate citizen.

Philosophy of vardhman in future of textiles in india and continued expansion in all areas which we best know.

2.customer total focus in all the operational areas.

3. products of best available quality in premium market segments in TQM &zero defect implemation in all the areas of functional.

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4. Global orientation targeting - at least 20% production in exports.


5. integrated diversification and product range expansion

 6. manufacturing facilities in world class in morden R&D and technology.

7. faith in individual potential and human values respects.

8.Encouraging innovation in constant improvements to achieve excellence in all areas of functional.

9.accepting change a way of life.

10.appreciating a role of corporate citizen.


 History of vardhman.


The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the Manchester of India and Within the precincts in the city is located the Corporate headquarters of the Vardhman Group a household name in Northern India. The Vardhman Group born in 1965 under the entrepreneurship of Late Lala Rattan Chand Oswalhas today blossomed into one of the largest Textile Business houses in India. Vardhman had an installed capacity of 14,000 spindles and its capacity has increased multifold to over 5.5 lacs spindles. In 1982 the Group entered the sewing thread market in the country which was a forward integration of the business. Vardhman Today Threads is the second largest producer of sewing thread in India. In 1990 it undertook yet another diversification - this time into the weaving business. The grey fabric weaving unit at Baddi (HP) commissioned in 1990 with a capacity of 20,000 meters per day and has already made its mark as a quality producer of Grey poplin, sheeting, shirting in the domestic as well as foreign market. This was followed by entry into fabric processing by setting up Auro Textiles at Baddi, which currently has a processing capacity of 1 lacs meters per day.

In the year 1999 the Group had added yet another feather to its cap with the setting up of Vardhman Acrylics Ltd Bharuch (Gujarat) which is a joint venture in Acrylic Fibre production undertaken with Marubeni and Exlan of Japan. The company also has a strong presence in the markets of Japan, Hong Kong, Korea, UK and EU in addition of the domestic market. Adherence to systems and a true dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002 quality award which the first in the Textile industry of India and yet another laurel to its credit.


1.spinning capacity in india ia largest-half million of spindles.

2. producer of cotton ,synthesis and blended yarns in country in largest.

3.largest in dyeing capacity in yarns and firbe and cotton exporter largest.

4. market leader in hand knitting yarns in india.

5.postion of second in proudcer of sewing theard in the country.

6.largest range of textile products


Industrial relations plays a vital part in the establishment and maintenance of industrial democracy. Industrial relations are therefore not the matter between employers and employees alone but a vital concern of the community which may be expressed in measures for the protection of its larger interest.

Economic activity is the central field of industrial relations. The economic system of any nation affects the industrial relations, which in turn affects the social order.

The industrial revolutions create an imbalance in the society as it prejudicially affects the rights and interest of those sections that work in such industries but do not control it.

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It is because of far reaching consequences of the imbalance and disorder in industrial relations and because of the fact that it affects such a large and varied complex of group relations that it was soon realized that very existence of the state as protector of the community and arbitrator of conflicting interests may be jeopardized if it was not to intervene in industrial matters to maintain social morality which was necessary for healthy social order.

Therefore, the state must endeavor to promote studies and researches in sciences which will help in reshaping social relationship in accordance with the principles of social justice and social economic objectives.

Trade union /unionless organiastion but vardhman is unionless organistion

Vardhman Textiles Ludhiana is example of unionism to non-unionism. There used to exist a union in the organisation a decade ago.after a few incidents which were involved large scale financial loss to the company as well as loss of life of a factory manager and the organisation has tried to stop the formation of union s at all costs. As one executive of the company feels that unions is formed that when the demands of the workers are not fulfilled. Vardhman being a labour intensive unit and has provided very good welfare measures to the workers. Besides, there are active quality circles at the plant levels as well as mechanisms for quick redressal of grievance. Due to these, the workers do not feel the necessity of unions.

Some points are discuss on trade union and unionless organisation


Today we witness a fundamental transformation in enterprise economics and industrial relations in India. The reversibility or otherwise of policy changes associated with economic liberalisation is being debated. The process of liberalisation had inc both increased in internal as well as external competition. The experience of the last decade has given rise to a new set of concerns among the workmen, management and the unions.

The concern among the management and the unions are very much justified. There is persuasive evidence to show that there are high rate of decline in the membership of the unions. It may be interpreted as the losing appeal to the members and thus they are losing out their bargaining power. However the million dollar question is even thought the influence of trade unions is reducing and how beneficial is it to have a unionless organisation? Is it possible in the Indian scenario?

So then we come to the utopian state of the IR scenario and there is no union and the workers are satisfied. But, how feasible is it? Is no-unions better than multi-unionism? Can we say that workers are more satisfied this way? In this paper, we shall take a small visit in the vardhman industrial scenario in India and will see the various aspects of a unionless or organisation, from concept to practice.

The paper has been divided into several headings and where we shall be going from concept to concept and practice and a set of questions are discuss

The questions that we shall be discussing in the course of this paper are

1.Why do we need unions?

2.Trade unions, satans of chaos?

3.What are the strategies available to non-unionism?

This is the question and that we must tackle first before moving any further. There are several tangible benefits for which that we are having so many trade unions in the organisations today. But more than the benefits what counts in the Indian context is the long history of exploitation of labour in India. the management of many years of the industries had exploited the local labour to the fullest extent. Fire and hire is the theme of industrial relations and owing to large supply of labour in the Indian market and the facilities provided to the workers had been pathetic.there are some reason are Low pay, over work, no sanitation, miserable working conditions are some of the factors that led to the unionisation of the industrial workers. The fear in the mindset of the labour is persistent even today. Perhaps, this what makes the India n labour stick to the unions.

There are other tangible benefits of a trade union, for which there are widespread unionism in the world. Some of these are:-

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1.Trade Union as an agent for bargaining

2.Protection of basic rights of workers

3.Providing the proper working condition to the labour

4.Unions as agents for pursuance as well as settlement of disputes

All these are the various causes that give rise to unionism and help the workers in getting involved in the activities of the unions. If these are the benefits of a union, then what makes them fail?

Trade Unions, Satans of Chaos?

There are several advantages as well as disadvantages of a trade union. Having seen the necessity and the advantages of a union and then I will discuss only the perceived disadvantages of a trade union and This will answer us a very vital question and why should we move towards a unionless organisation? Such negative points of a trade union may be classified into three broad categories such as discuss:-


Work Organisation



It is seen that the presence of unions usually make the communication a difficult process. It impedes personal contact and give rise to bureaucracy. As it was observed by a supervisor in a non-union company and You can not sell an idea through a shop steward quickly and shop steward and a union houses is set up as a barrier to communication. You are not able to do as much.

Work Organisation:

Under this heading let us see what can be the negative outcomes of a union at the actual place of work. When we talk of unions the first thing that comes to our mind is the union's resistance to change and In this quick moving world that the unions go on becoming as uncooperative to change as they are right now and then no organisation can make rapid progress and in order to survive. If the organisation it self does not survive and then what about the workmen?

Then there is the case of inter-union rivalry making the life at the work place even more difficult. This can be taken care of either by a single union or no union at all. This problem is even more demarcated in a country like India, where only seven workmen are required to form a trade union and there exist more than ten central trade union organisations.

It happens that very frequently that the unions start protecting the workmen and who are not performing satisfactorilyand in This way the management are not given a free hand in the decision making process and then result of the productivity are hampered. There exist several other problems in the work place and which arise out of unionism. A brief mention of these factors can be made here. These include, rigidity of unions, restriction on production, interference in matters of salary etc.

Conflict at Workplace:

There are many conflicts at the work place as well as the organisational level which can be attributed to the unions. The foremost of these is that the unions give radicals a chance to stir up trouble. They usually do it under the mask of trade unions. To add to this then the unions usually create up an adversarial climate and promoting the idea of management has to give all the time. The duration and number of problems are like disputes and trivial grievances in a unionised company are far more than a non-union company. These should be avoided for fostering growth.

After seeing the viability of non-unionism let us come to its implementation part, i.e. what are the strategies via which one can go about implementing the practice of non-unionism.

Strategies used in vardhman then the result in union less organization

There has listed ten strategies that are being used by vardhman unionless organisations to stop the growth of unions in their organisations. Many of these are put into practical uses by different organisations. These are listed below.

Pay conditions

These should be equal than or greater than that of the other workers engaged in similar establishments. Pay is good and every workers in the organization ars satisfactaorily and pay according to their skill based and promation activites are increased in vardhman.

Training and Development:

The training and career development of the workers should be seen more as an investment than an expense. The benefits of the training should be given prime importance and training of the organisation should look forward to an internal labour market for all its future purposes. Every worker in organization provide the traning and then the result number of accidient are reduced are equal to less. Training provide to start the cnc manchines and care of manchine.

Job Security:

Any worker in the organisation obviously looks towards a secure job life. Hence the management should always assure them of their jobs and avoid layoffs as far as possible. Workers usually go for a union when they feel that their future is in danger. But in this organization job are also secured and workers are fully efficient.


Unions provide for a very important channel of communication. Hence, before substituting the unions with whatever practice available and the organisation are must first replace it with sophisticate and effective and economic mode of communication. It will act as a two way process. It will not only make the management more accessible to the workmen then it will also inform the management about the impending encroachment of unions.

Work Autonomy:

There should be some informal mechanisms which the workers are given some autonomy regarding the decisions about their nature and method of work at the workplace. These help in promoting a sense of partnership between the workmen and the management then thus creating a unitary culture.

Psychological Climate:

A psychological climate for fostering and rewarding organisational co-operation should be developed. There should be proper reward systems for organisational loyalty and commitment. These should be properly nourished instead of enforcing. Reward system of the is better and condition of workers is also good as compared to another organization of Ludhiana.

Rational Wage and Salary Administration:

The organisation should go for a rational wage and salary administration and a proper merit based pay system. These methods should reward merit along with seniority. This has the twin objective of creating a pay system that is seen as fair and using the pay system to reduce collectivism and to tap motivators. Salary pay for 7th day of month and bonuses provide to the workers in profit because they also understand the workers are asset of company.

Grievance Procedure:

The organisation should always look forward to create a grievance procedure that is void of unions. This should be there without any binding unionism. The workers should never feel the necessity of a union this way.


One more practice that is usually adopted by the organisations are to located their units in strategic positions such as the rural areas and there is less degree of unionisation. This helps in isolating the union culture from the place of work.

Selection Device :

There should be such an employee selection device, that weeds out workers, who might be pro union. This is also aimed at avoidance of union culture.

Achievements of vardhman


It's an overwhelming feeling when the efforts and hard work put in are recognized and felicitated that are feeling of galvanizes the Group into believing in more itself and reaffirming its commitment to offer products that invoke trust and reliability.

Vardhman Group has became India's first textile company to be awarded (ICO9002/ISO 14002 )Certification. It is the largest producer and exporter of yarns and Grey woven fabrics from India. Vardhman are also the largest producer of tyercord yarns and the second largest producer of sewing threads in India. The Vardhman Group vision of excellence is matched by a dedication and sincerity to be the best and excel in every industry it has a presence.

1.textile export promation council 2003-04 provide the gold trophy in EUQ/EPZ for cotton yarns export.

2.this council provide the bronze trophy in mill fabic exported and provide the gold trophyin cotton yarnsin EUQ.

3. govt.of india award in year 1994-95 award of merit.

4.textile export promation council 93-94(merchant export category for fabrics in bronze trophy)



















Sri Aurobindo Socio-Economic and Management Research Institute is engaged in the promotion of education, research and publications highlighting social and economic issues facing the society. The Institute runs a Human Resource Development Centre for providing career counseling and guidance to college students in Punjab. The teams of experts also visit the colleges in the state to prepare college students for gainful employment in the industry.

Sprung from a keen desire to set up an educational institution in Ludhiana and inspired by the writings of Sri Aurobindo and the Mother, the Trust has set up a college - Sri Aurobindo College of Commerce and Management (affiliated to the Punjab University) with the mission to create an institution with distinction dedicated to the ideals of creating disciplined career oriented young people ready for going for administrative and management roles in enterprises or to set up their own business as entrepreneurs.

Mr. Oswal with Faculty at the College

A Vardhman initiative to improve the yield of cotton in Punjab in 2001 when the State had suffered a shock of crop devastation and area under cotton cultivation was dwindling, led to the experiment to adopt villages and see whether concerted efforts in bringing knowledge to farmers could improve the yield of cotton. The experiment was successful as it improved the yield of cotton to 873 kg/hectare in 2005 in adopted villages where the average yield of cotton in the State of Punjab was 587 kg/hectare (world average - 700 kg/hectare). It found mention in the President's broadcast on Technology Day (11/05/04) as a 'technological event which has the potential to penetrate into our everyday lives'. The Village Adoption Programme also found mention in the President's address to the nation on the eve of India's 56th Republic day. The President of India was gracious to bless one of the participating Villages -'Gehri Buttar' (District - Bathinda) by his presence on December 10th 2005.

Vardhman is actively engaged in the activities of Nimbua Greenfield Punjab Limited ( formed by a consortium of Industries of Punjab for developing a common facility for storage, treatment and disposal of hazardous wastes generated by the Industry with a Government of India grant. SOURCE http://www.Vardhman in /about-csr

Gobalisation on textile industry

1.Textile and clothing sector contribute in 14%of industrial production and 3%of gdp of the country.

2.about 8%of total excise revenue collected is contributed by textile industry.

3.textile industry in india has a strong multi-firbe raw material production base.india is presentlyexporting 6 billion US$ and 18-20%increses in next five years.

4.textile industry in second largest industry in india.

5.globalisation has brought opportunities of textile industry.

Main exports in Canada Bangalore, Russia,Australia, new Zealand etc so many countries.

Textile and garments industry exports in 39%of india total exports.

Recuriment about vardhman

Vardham employeesare broadly categorized into four level

1.staff level

2.officer level

3.manager level

4.executive level

These level are further sub divided into into other level:-

Officer level 1 officer level 2 officer level 3 officer level 4

Vardhman recruitment new scheme launched at executive level.recurting at fresh graduates and training them to take up managerial postion.this scheme two benefits:-

1.its helps to reduce the unemployment.

2.took care of scarcity of manpower in organization.

Vardhman decided to recruit the graduates and groom their skill proved to be fruitful.they recruited the young candidates from over all northen Indian and central india into executive cadres.

Policies and system

There are 3000 workers ,250 are staff member and 100 officer and rest is manager according to size of their of department.

1.policy which are used in Vardhman mills is TPM policy.

2.ERP systemis used for salary contribution their employees.

3.Punch card system is used to attendance to employees