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A STUDY TO FIND OUT THE ROLE AND RELEVANCE OF TRADE UNION AND ITS IMPACT ON EMPLOYEESPROJECT REPORT

Submitted to

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfillment of the requirement for the award Of MASTERS DEGREE IN HUMAN RESOURCE MANAGEMENT (2010-12) By PRINCY C A Reg No h826

Rajagiri College of Social Sciences Rajagiri P. O. Kochi 683401

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DECLARATION

I, Princy C A, student of Rajagiri Centre for Business Studies, Kochi, hereby declare that this report titled A study to find out the role and relevance of trade union and its impact on employees is an original work done by me and submitted to Rajagiri Centre for Business Studies in partial fulfillment of the requirement for the award of Masters in Human Resource Management. I further declare that any part this project itself has not been submitted elsewhere for award of any degree.

Place: Cochin Date:

Princy C A Rajagiri Centre for Business Studies

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ACKNOWLEDGEMENTThe gratification and elation of this project will be incomplete without mentioning all the people who help me to make it possible, whose guidance and encouragement were valuable to me.

Above all I thank the God Almighty for his immense grace and blessings at each and every stage of the project.

I am greatly indebted to Dr. Joseph I. Injodey, the Principal, Rajagiri Centre for Business Studies, for his encouragement, guidance and assistance in availing this opportunity for doing a dissertation project.

I gratefully acknowledge my sincere gratitude to Prof. Anil Kumar for his kind guidance and helpful suggestions at every stage of the preparation of this report.

I would also like to thank all those persons who have spent their valuable time to contribute the required information to me and gave me support while preparing this report.

Last but not least, I would like to record my deepest sense of gratitude to my dearest friends who helped me for making this project a success.

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TABLE OF CONTENTS

INTRODUCTION........................................................................................................................ 5 INDUSTRY AND COMPANY PROFILE..7

LITERATURE REVIEW.........................................................................................................27

RESEARCH METHODOLOGY...............................................................................................34

DATA ANALYSIS AND INTERPRETATION ......................................................................39 FINDING, SUGGESTIONS AND CONCLUSION........................................................ 63

BIBLIOGRAPHY..................................................................................................................... 67

APPENDIX............................................................................................................................. 69

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CHAPTER 1 INTRODUCTION

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INTRODUCTION 1.1Background of the Study Healthy Industrial Relations between labour and management are essential to achieve industrial peace and higher productivity. It ensures continuity of production, reduces industrial disputes, improves employee morale, and reduces wastage. HRD approach to industrial relation focuses on counseling, mentoring, coaching etc. The study was made on one of the important constituent of Industrial Relations ie, Trade union. As the phase of Industrial Relations is changing, the role of Trade Union is also changing. 1.2 Background of the topic The study was conducted at Kottakal Arya Vaidya Sala(AVS) and it aimed at

understanding the role of Trade Unions on employees. The existence of a strong and recognized trade union is a pre-requisite to industrial peace. The central function of a trade union is to represent people at work, but they also have a wider role in protecting the interests of the people. 1.3 Nature of the Problem There are four Trade Unions (CITU, AITUC, BMS, and INTUC) at AVS. All workers of AVS are the members of any of these Trade Unions. What difference or change does this Trade Union brings in the individuals and organizational roles of workers are what are being studied under this topic 1.4 Objectives of the Study Primary Objective: To analyze the role and relevance of trade union and its impact on employees of AVS Secondary Objective: To find out whether the workers demand is accepted by management through collective bargaining To find out whether workers demand is accepted by the management under the pressure of strike and lockouts6

To check whether the years of experience in Trade Union leads to a good Employer-Employee relations

CHAPTER 2 THE INDUSTRY AND COMPANY PROFILE

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INDUSTRY PROFILE Ayurveda is an ancient health system of India, thought to have originated in the Vedic times around 5000 years ago. Ayurvedic formulations use combinations of a selection of around 1200 species, about 500 of which are commercially traded. Ayurveda uses medicinal plants in various forms, some of which can be gathered only by destructive harvesting: in 30 per cent cases only the roots are used, in another 13 per cent only the bark and it is only in about 16 per cent that the whole plant is used. In other cases, medicines use the fruits, leaves, flowers, rhizome, seeds etc. It is commonly thought that medicinal plants are mainly herbs, but in fact about one-third are treesthis has implications for conservation and management of supplies to the industry. The majority of plants used in ayurveda are procured from the wild, though around 10 per cent are cultivated on private lands. Ayurveda has a 70 per cent share in the formal medicine market in the country. There are around 6,000 licensed units and an equal number of unlicensed units manufacturing ayurvedic drugs. The origin of most of these companies can be traced back to a vaidya (a practising ayurvedic expert) who used to prepare some formulations for dispensing. The gradual acceptance of these medicines led to the growth of such units. The presence of a large number of small, unorganised micro-manufacturing units and pharmacies makes it very difficult to estimate the overall turnover of the industry, but rough estimates put it at around Rs. 45 billion for the year 1998. In general, the medicinal plants trade in India may be described as extremely complex, secretive, traditional, badly organised, highly under-estimated and unregulated. There is no macro level information available for assessing the nature and full extent of the trade; there are only guesstimates based on local inventories and micro studies. The supply channel runs from the minor to the medium to the major markets before being exported. There is a long chain between primary collectors and end-users, and the supply channels for each species are different, depending on availability of the individual. The demand for ayurvedic formulations is increasing both in the domestic market as well as internationally. According to some estimates, the domestic sales are growing at an annual rate of 20 per cent8

while the international market for medicinal plant-based products is estimated to be growing at 7 per cent per annum. However, India has a very insignificant share of the international herbal medicine market although it is one of the biggest reservoirs of plant resources. Given the rapidly increasing demand, there is tremendous pressure on the supply base. This has reached crisis point for some species. It is reported that certain species of medicinal plants have already become extinct through over-harvesting, and other species are endangered. Drug manufacturers make use of alternative species when the first choice is no longer available. However, there are reports that even some of the second best alternatives are now facing extinction. Further, there are concerns about maintaining the quality of supplies. There are a number of potential (and some actual) responses to this demand-supply gap. These include substitution of raw material, import of medicinal plants, cultivation of plants by the corporate ayurvedic industry, cultivation of plants by farmers and enhancing production from natural habitats. In addition to these attempts to address the demand-supply crisis, there is a longestablished response, which represents an unofficial, illegal response by sections of the industry, that is the use of adulterants. For 6 out of the 12 species selected for the study, some or the other form of adulteration is known to occur. This poses major challenges to any market-based intervention in the trade, as well as to any attempts to integrate traditional medicine into the mainstream health services. Short-term solutions to the supply crisis appear to be limited: cultivation is appropriate for only certain species and will not, in any case, prevent collection from the wild by those who depend on such activities for their livelihoods. Apart from shortage of supply, the industrys primary concern is the quality of raw material: this presents a major challenge given the prevailing secrecy in the ayurvedic industry and the adulteration of raw material. The potential for organisation at the community/collector level needs to be explored, as also the possibility of ensuring better returns to primary collectors through value addition at the local levels. Organisation and control of production may also be encouraged if consumers or retail buyers express preference for supplies that derive from socially and environmentally sustainable production. While it may be some time before the extent of such preferences encourages largescale changes in production, this paves the way for the introduction of market-based instruments as a mechanism for meeting consumer demand while ensuring sustainable production. In order to mo