ABC CORPORATION

RESTLESSNESS AMONG WORKERS

A BUSINESS REPORT

BY: Aftab Anwar, NomanNawab, Bilal Saleem and SamiullahAsadBS(BA)-COMSATS ATTOCK

TITLE
Restlessness among workers

Submitted to: Ms. Bushra

Submitted by: Aftab Anwar, NomanNawab, Bilal
Saleem, Samiullah (BSBA CIIT/ATK)

DATE: 22-5-2012

EXECUTIVE SUMMARY
This report is on the present situation of the firm which is affected by worker restlessness. The first part of the report is an introduction to the restlessness among workers. Then present situation of the restlessness is shown. The present workers unrest is not a very happy position; the management has lost control over workers moreover what factors have caused this situation and also what is the effect on business. Many effects are present on business.
Conclusions are given to control restlessness among workers in the form of increase in wages, improvement in the working condition, appointment of labour officers.

CONTENTS 1. Introduction 1 2. Present situation 2 3. Course of restlessness 3 (a) Social and political changes (b) Increase in cost of living (c) Illiteracy (d) Tactlessness by management (e) Low standard of health (f) Communication 4. Effect on business 7 (a) Loss of man work hours (b) Decrease in ARP per worker (c) Loss of property (d) Outflow of workers (e) Loss of goodwill (f) Decrease in sale (g) Increase in costs (h) Estimated total loss 5. Conclusion 12

1
INTRODUCTION
Labour unrest is not restricted to Pakistan or the third world alone; it is a world phenomenon, and even the first world countries are not quite immune from it. However, in developing countries the situation is volatile.
Over firm the national engineering company, has been facing labour trouble for the last many months. The purpose of this report is to analyses the existing situation and suggests corrective measures.
The causes of labour unrest, attributable to social and political changes, are beyond the control of our firm. We have to accept them and form new strategies to minimize their impact on our workers. I have tried here to isolate the causes of unrest emanating from within our firm; it was necessary to do so in order to be able to make fruitful and useful recommendation.
While making recommendation, I have kept in view the possible future trends and assumed that there will be no sharp political changes.
This report can be divided into three parts: first, the present situation; second, the causes of unrest; third, recommendations and corrective measures.

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PRESENT SITUATION

The present worker’s unrest is not a very happy position; management has lost control over workers. Many times the workers refused to comply with orders. On one occasion they even retaliated physically. In past six months workers have gone on strike twice. At least seven cases are now pending with the labour courts.
According to my survey, 66% of our workers are not satisfied with their jobs and working conditions. They are least interested in their work. Most of them are striving to secure jobs in other firms. They are not devoted to their work and the organization. They are hostile to the management. None of them is eager to correlate his interest with the interests of the company.

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CAUSES
In this part of the report, I have described the causes of workers unrest. The causes are internal .I have attempted to classify them under important headings. Most of my emphasis is upon the internal causes because these are directly under our control.

SOCIAL AND POLITICAL CHANGES
The worker has been exploited in indo-Pakistan for many centuries.In the past few years, they have acquired political awareness .As a natural reaction of the past exploitations they are very skeptical towards the management. They often overreact to any change in the policy or strategy of the firm. Workers have become very conscious of their power and importance. They get mental satisfaction by defining the orders of superiors. They react violently whenever their ego or self-respect is pricked.
INCREASE COST OF LIVING
In the past few years the prices of consumer goods have gone very high. The average inflation rate has been 20%, though the prices of basic essential goods have gone up many times. This increasing cost of living has robbed workers of their purchasing power. Most workers have many dependents, so these economic problems have increased their worries. The tension built by family problems, economic in nature, often result in rude and irritable behavior.

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LOW WAGES
Wages, have not kept pace with increasing cost of living although in the past few years wages have increased four times, yet they have not been compensated for the increasing prices. The result is frustration and unrest. The workers find it hard to make both ends meet despite hard work. In our firm, especially the increase in the especially the increase in the wages have been meager as compare to the change in the cost of living.
Our wages do not compete with the wages in other firms. This has caused a lot of unrest, at least once, resulted in strikes. Our wages compared to the average of the industry are shown below.
ILLITERACY
About, 98%of the unskilled workers are completely illiterate. Among semi-skilled and skilled workers the literacy rate is 10% and 40% respectively. On account of this the labour leaders and other politicians use workers for their own interests. Many workers are not even aware of the facilities they are provided and various steps taken for their welfare. Often they are skeptical about the management, and oppose changes. The present concept of strong union is that of a union with high no of strikes to its credits. Union leaders strike for an excuse to go on strike which conservative managers often unwittingly provide them with.
Lenient labour laws have also caused a lot of trouble. Workers in excitement of new guarantees and securities given to them misunderstood the real objectives and try often to misuse their rights.

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UNHEALTHY WORKING CONDITION
In our firm due importance is not given to the betterment of working condition. The workers have to work very close to the blast furnaces, in workshops where the temperature ranges from 115 to 125F. According to my discussion with medical specialist and workers this temperature is injurious to health.
In other shops also lightning arrangement ventilation system and irritating sounds of machines are discouraging factors for workers. They are not given compensating diet and short recess needed for such jobs. In the past two years workers are constantly pressing for lesser working hours and improvement in equipment. The increasing accident rates and deteriorating health standards are causing an upheaval among workers.

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TACTLESS MANAGEMENT
Our managers have not changed their managing techniques in the light of new changes and concepts, according to my survey 60% of our managers are very tactless with workers. Most of our managers lack knowledge of physiology. My various tests undertaken with the calibration of middle management revealed that seven out of ten times workers can be made to feel satisfied without giving them anything provided we use new physiological techniques of management. Workers are simple peoples they just need a little care and ego boost tactful management.
LOW STANDARD OF HEALTH
According to my investigation with the help of social security and our medical staff, I found that 80% of workers are physically unhealthy; most workers are under so much strain social as well as economic. They become neurotics. This kind of health results in unpredictable and abnormal behavior.

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LACK OF PROPER COMMUNICATION
There are no efficient means of communication between the workers and management workers are not aware of management’s point of view and management is not convinced of the reality of workers grievance workers regard management as their rival robbing them of their rights. This obvious communication gap results in conflicts between the two parties at thus further aggravates labour unrest.
EFFECTS ON BUSINESS
The growing unrest among workers is affecting business very badly. The labour efficiency has decreased drastically. Lack of corporation among workers and management is resulting in lowering the quality of products. Workers are quitting the firm. Storage of skilled workers is hampering our production. This unrest is jeopardizing our long run plan also. Below are listed the most significant adverse effects of labour unrest. (A) LOSS OF MAN WORK HOURS
The company is incurring great losses on account of the wastages of man work hours in strikes, up to 2006 the loss was negligible but now it is reaching dangerous demonstrations. In the previous year we lost some one thousand men hours in strikes. In monetary terms thousand hours means a loss of ten lakhs. The increase of loss in the past year has been presented below.

8 (B)
DECREASE IN AVERAGE REVENUE PRODUCTIVITY PER WORKER
Average revenue productivity per worker is decreasing for the past three years. We use to be leader of the industry but the restlessness of workers has bought us down to below the average mark. Strained management labour relations, lack of interest and strikes has resulted 30% decrease in ARP per worker in the previous year. We have shown the change in average revenue productivity per worker as the change in the whole industry in the multiple bar chart below. (C) LOSS OF PROPERTY
Strikes and incidents of physical violence have caused serious damage to the assists of interphase. The agitated often destroyed the property to press their demand. Often furniture has been set on fire, window panes are broken, and the other employment is damaged by workers on strike. According to my investigations assets worth Rs.100000/- have been completely destroyed in the past year only. The loss is twice more than the preceding year.

9 (D)
INCREASE IN ACCIDENTS
Careless behavior of workers, negation of management orders and unskilled labour has resulted in an increase in factory accidents. The firm is liable to compensate the loss of workers in every type of factory accidents by law. So, increased accident rates have increased the burden on expenditures in this account. This is also damaging our image and keeping potential workers away from the firm. The increase in accident rate can be well perceived from the gap given below.
(E)
OUTFLOW OF WORKERS
Owing to increasing labour unrest in our enterprise, skilled workers are quitting our firm. Workers are not satisfied with their job and working conditions. Many of our experienced and skilled workers have joined other firms because of increased tension among the labour and management in our organization. Even, at present we are suffering losses due to the shortage of trained workers. If the present outflow continues, we may be forced soon to stop the production.

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(F)
LOSS OF GOOD WILL
Our enterprise is permanent news item for the past six months. The news about workers strikes, accidents labour leaders demand and declining sales have robbed the goodwill we build in the past 30-years.
(G)
DECREASE IN SALES
Sales of our production are showing a downward trend. Decline in production deteriorating quality, increasing prices and unstable supply are the main factors causing this decline. All these causes are due to the worker’s unrest. Only in the previous year our sales rerecorded a 40% decrease.
(H)
INCREASE IN COST
Workers restlessness has resulted in low production, loss of property, high accident rates, decrease in efficiency and wastage of resources. The ultimate effect of all these is increase in cost of production. Increasing cost with decreasing sales has reduced the profit margin of the 11
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firm. In the previous year we just managed to recover the costs of production but in the present situation we are almost certain to run into a loss.
In short, due to the workers unrest, sales are declining production is decreasing costs are increasing profit margin is declining, quality is deteriorating are most of all. Public is losing faith in our product.

ESTIMATED LOSS
According to my calculation we suffered a loss of eighty-nine lakh rupees due to labour unrest. The loss accrued under the following major heads: Strikes | Rs.4,000,000 | Properties | Rs.1,000,000 | Accidents | Rs.100,000 | Workers Outflow | Rs.200,000 | Decrease in efficiency | Rs.600,000 | Decrease in sales | Rs.1,000,000 | Goodwill | Rs.2,000,000 | Total | Rs.8,900,000 |

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CONCLUSION
According to my estimates all these measures will cost the enterprise a sum of Rs.15.3 million. The details are as follows: Pay rise | Rs.6,000,000 | Plant improvement | Rs.4,000,000 | Fringe benefit | Rs.3,000,000 | Work incentives | Rs.1,000,000 | Training programs | Rs.300,000 | Labour officers | Rs.100,000 | Communication | Rs.100,000 | Total | Rs.15,300,000 |
The estimated increase in production, efficiency and rates will yield some Rs.2000000 in the year only. So even in the short run we will earn a profit of Rs.4700000. the long run profit will increase many times and the stability provided to business will be over and above thiss benefits. So, I can safely assert that these recommendations are feasible and, if implemented, labour unrest will be reduced, if not abolished, to a minimum. Wages must be increased

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BIBLIOGRAPHY