Industrial Relation Scenario at Nalco

Industrial Relation
Scenario
NATIONAL ALUMINIUM COMPANY LTD
Odisha, India

ACKNOWLEDGEMENT
This report bears the imprint of many people. Right from the experienced
staff of NALCO , India to the staff of Institute of Business & Computer Studies,
Bhubaneswar, India without whose support and guidance I would have not got
the unique opportunity to successfully complete my summer project in this
esteemed organization.
I take this opportunity to express my deep gratitude to all the employees
of NALCO, Angul. Also I am indebted for the rich guidance, knowledge and
suggestions provided by my faculty guide, Ms. Madhuchhanda Mohanty
(Faculty, IBCS) who took sincere efforts and illustrated the Industrial Relations
concept, with their vast knowledge in the field, which helped me in carrying out
my project.
I am grateful to Mr. S.S. Panda (Manager, HRD) for his earnest
coordination, supervision, experience, guidance & encouragement owing to
which I had the leg-up of undertaking the project at NALCO, a Navaratna
Company.
Last but not least, I would also like to thank Mr. Ashish Kumar Sahoo (Jr.
Manager) for his co-operation, inspiration & guidance & all those people whom

I met in the industry during my summer project and helped me to accomplish my
assignments in the most efficient and effective manner, which helps me in
shaping my career. I would also like to give my respect to my family members,
without whose efforts I would have not completed this project successfully.
(Deepika Das)

CONTENTS
Chapter – I
Introduction
Objective of the study
Importance of the study
Methodology of the study
Limitation of the study
Chapter – II
Theoretical Framework
Chapter – III
Company Profile
Chapter – IV
IR Scenario at NALCO
Chapter – V
Data Analysis & Interpretation
Chapter – VI
Suggestion & Conclusion
Bibliography

INTRODUCTION
Industrial relations has become one of the most delicate and complex problems
of modern industrial society. Industrial progress is impossible without
cooperation of labor and harmonious relationships. Therefore, it is in the interest
of all to create and maintain good relations between employees (labor) and
employer (management)
Concept of Industrial Relations:
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”. By “relations” we mean “the relationships that exist
within the industry between the employer and his workmen.”
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers
within the organizational settings. The field of industrial relations looks at the
relationship between management and workers, particularly groups of workers
represented by a union. Industrial relations are basically the interactions between
employers, employees and the government, and the institutions and associations
through which such interactions are mediated.
The term industrial relations have a broad as well as a narrow outlook. Originally,
industrial relations were broadly defined to include the relationships and
interactions between employers and employees. From this perspective, industrial
relations cover all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor)
relations. Now its meaning has become more specific and restricted. Accordingly,
industrial relations pertains to the study and practice of collective bargaining,
trade unionism, and labor-management relations, while human resource

management is a separate, largely distinct field that deals with nonunion
employment relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and
their employer, the relationships between employers, the relationships
employers and workers have with the organizations formed to promote their
respective interests, and the relations between those organizations, at all levels.
Industrial relations also includes the processes through which these relationships
are expressed (such as, collective bargaining, workers’ participation in decision-
making, and grievance and dispute settlement), and the management of conflict
between employers, workers and trade unions, when it arises.
OBJECTIVE OF STUDY
Nalco being a dynamic state of art result oriented organisation with positive sense
of belongingness and attitude among all sections of employees it would be
interesting to make a study of its various attributes, strengths and environmental
opportunities, organisational features, dynamic industrial relations .
Organisation to be dynamic should posse’s dynamic human resources. Human
resources to be dynamic acquire capability continuously; adopt the value and
beliefs and aptitudes in accordance with changing requirements in organisation.
Thus human resource development plays role in making human resources vital,
useful and purposeful.
IMPORTANCE OF THE STUDY
Without industrial growth, economic progress is not possible, however much the
industrial development may be chaired and achieved ,various complex problems
arise in the field of labour as a result of industrialisation, such as unfavourable
work environment ,unhealthy working and leaving conditions, lack of basic

amenities toiling masses and the resultant low standard of living ,constant
dissatisfaction bickering regarding low wages, insecurity of jobs and other
personal problems.
These if not given importance or attention in time might lead to peculiar
problems of frequent absenteeism, high labour turnover, migration and
inefficiency of production work. These bring a sense of frustration among the
working class culminating in industrial conflicts in various terms.
METHODOLOGY OF STUDY
The method of study based on an analysis of primary and secondary data
collected. The primary data on all key areas of the study were collected from the
files and records .Journals ,annual reports and other such document of the
organisation .
The secondary data has been collected through structured questionnaires and
interview method. The questionnaires were to explore and survey the view of
executives, supervisors labour concerned in the system works. The questionnaires
were of the objective in nature.
Limitation of study
Certain difficulties were experienced while conducting the study. The limitation of
study as follows:-
• The study was conducted within a very short period of 6 weeks which were
the most significant limitation.
• Secretly and confidentially to the organization sensitive data was another
pitfall for the research to find out the organization all information’s
regarding some aspects of the study.

• To collect information from persons busy in their work had made the task
more difficult.
THEORITICAL FRAMEWORK
Trade union
The object of Trade Unions Act, 1926 is to provide for registration of Trade unions
and to define law relating to registered trade unions in certain aspects.
Trade Union – Trade Union means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen, or between
employers and employers, or for imposing restrictive conditions on the conduct of

any trade or business. It includes federation of two or more trade unions. [section
2(h)].
Thus, technically, there can be ‘union’ of employers also, though, almost
universally, the term ‘trade union’ is associated with union of workmen or
employees.
‘Trade dispute’ means any dispute between workmen and employers or between
workmen and workmen, or between employers and employers. However, it
should be connected with employment or non-employment, or the conditions of
labour, of any person. ‘Workman’ means all persons employed in trade or
industry, whether or not in the employment of the employer with whom the
trade dispute arises. [section 2(g)].
Any seven or more members of a Trade Union can apply for registration, by
subscribing their names to rules of trade Union and complying with provisions of
the Act for registration of Trade Union. [section 4(1)]. Right and liabilities of a
Registered Trade Union are specified in section 15.
Registration of trade union – Appropriate Government shall appoint a person as
Registrar of Trade Unions for each State. [section 3(1)]. Application for
registration is required to be made signed by at least 7 members. Application
should be accompanied by rules of trade union. and other required details.
[section 5]. Rules should contain provisions as prescribed in section 6. Registrar
shall register Trade Union and enter particulars in the register maintained by him.
[section 8]. Trade Union will have a registered office. [section 12].
Other provisions – Other important provisions are as follows –
Trade Union is a body corporate – Registered Trade Union shall be a body
corporate by the name under which it is registered. It will have perpetual
succession and a common seal. It can acquire both movable and immovable
property in its own name and contract in its own name. [section 13].
Fund for political purposes - Trade Union can constitute separate fund for political
purposes. [section 16].

Executive Committee and Office Bearers of Union – The management of trade
union will be conduced by ‘executive’. It is a body by whatever name called.
[section 2(a)]. Thus, controlling body of Trade Union may be called as ‘Executive
Body’ or ‘Governing Body’ or ‘Managing Committee’ or any such name. The
members of the executive body are termed as ‘Officer Bearers’. [section 2(b)]. At
least 50% of office bearers of registered trade union shall be persons actually
engaged or employed in an industry wit which the trade union is connected.
[section 22].
Annual Returns – Every registered trade union will prepare a general statement of
assets and liabilities of trade Union as on 31st December. The statement will be
sent to Registrar along with information about change of office bearers during the
year. [section 28(1)].
Registration does not mean recognition – Registration and recognition of Union
by an employer are independent issues. Registration of Trade Union with
Registrar has nothing to do with its recognition in a particular factory/company.
Recognition of Trade Union is generally a matter of agreement between employer
and trade union. In States like Maharashtra and Madhya Pradesh, there are
specific legal provisions for recognition of a trade union.
Industrial disputes
An industrial dispute may be defined as a conflict or difference of opinion
between management and workers on the terms of employment. It is a
disagreement between an employer and employees' representative; usually a
trade union, over pay and other working conditions and can result in industrial
actions. When an industrial dispute occurs, both the parties, that is the
management and the workmen, try to pressurize each other. The management
may resort to lockouts while the workers may resort to strikes, picketing or
gheraos.
State intervention in industrial relations is essentially a modern development .
With the emergence of the concept of welfare state, new ideas of social

philosophy, national economy and social justice sprang up with result that
industrial relation no longer remains the concern of labour and management
alone. Many countries realized that for general progress to be assured, economic
progress was a must. In no country is a complete laissez faire attitude now
adopted in the matter of labour management relations.
Settlement means a settlement arrived at in the course of conciliation proceeding
and included a written agreement between employer and workmen arrived at
otherwise than in course conciliation proceeding where such agreement has been
signed by the parties there to in such manner as may be prescribed and a copy
thereof has been sent to the officer authorized in this behalf by the appropriate
government and the conciliation officer.11The definition envisage two categories
of settlement.
(1) Settlement arrived at in the course of conciliation and
(2) Settlement arrived at privately or otherwise than in the course of
conciliation.
The settlement arrived at in the course of conciliation stand on a higher plane
than the settlements arrived at otherwise than in the course of conciliation. The
legal effect of both these settlements is not identical . The settlement arrived at
otherwise than in the course conciliation binds only the parties to settlement and
none else. In any case it does not stand on higher plane than the settlements
arrived at in the conciliation and that makes the two distinct and different from
each other.
Procedures for settling labour dispute: Collective Bargaining, Negotiation,
Conciliation and Mediation, Arbitration and Adjudication are well known methods
for settlement of industrial disputes.
Collective Bargaining :- Collective Bargaining is a technique by which dispute as to
conditions of employment, are resolved amicably, by agreement, rather than by
coercion. The dispute is settled peacefully and voluntarily, although reluctantly,
between labour and management.12 In the context of present day egalitarian
society, with its fast changing social norms, a concept like ‘collective bargaining’ is
not a capable of a precise definition. The content and Scope collective bargaining
also varies from country to country. Broadly Speaking Collective bargaining is a

process of bargaining between employers and workers, by which they settle their
disputes relating to employment or non-employment , terms of employment or
conditions of the labour of the workman, among themselves, on the strength of
the sanctions available to each side .13 Occasionally, such bargaining results in an
amicable settlement, arrived at voluntarily and peacefully , between the parties.
But quite often, the workers and employers have to apply sanctions by resorting
to weapons of strike and lockouts, to pressurize one another, which makes both
the sides aware of the strength of one another and that finally forces each of
them to arrive at a settlement in mutual interest . It is thus the respective
strength of the parties which determine the issue, rather than the wordy duals
which are largely put on for show, as an element of strength in one party is by the
same token, an element of weakness in another.14 The final outcome of
bargaining may also depend upon the art, skill and dexterity of displaying the
strength by the representatives of one party to the other.
Negotiation: Negotiation is one of the principal means of settling labour disputes.
However, due to lack of trust between the employers and workmen or their trade
unions or inter-rivalry of the trade unions and the employers being in a
commanding position, many a time negotiations fail. Through Amendment in the
Act by Act 46 of 1982 Chapter II B providing for reference of certain individual
disputes to Grievance Settlement Authority has been inserted in the Act. Under
this Chapter, section 9 C has made it obligatory for the employers to make
provision for Grievance Settlement Authority for settlement of industrial disputes
connected with an individual workman employed in an establishment in which
fifty or more workmen are employed or have been employed on any day. In the
preceding twelve months. This amendment however even inspite of having been
made twenty one years back has not seen the light of the day.
Conciliation & Mediation: Through conciliation and mediation a third party
provides assistance with a view to help the parties to reach an agreement. The
conciliator brings the rival parties together discuss with them their differences
and assist them in finding out solution to their problems. Mediator on the other
hand is more actively involved while assisting the parties to find an amicable
settlement. Sometimes he submits his own proposals for settlement of their
disputes.
Conciliation may be voluntary or compulsory. It is voluntary if the parties are free
to make use of the same, while it is compulsory when the parties have to

participate irrespective of whether they desire to do so or not. Section 4 of the
Act provides for appointment for conciliation officers and Section 5 for
constitution of Boards of Conciliation.
Arbitration: The resort to arbitration procedure may be compulsory or arbitrary .
Compulsory arbitration is the submission of disputes to arbitration without
consent or agreement of the parties involved in the dispute and the award given
by the arbitrator being binding on the parties to the dispute. On the other hand in
case of voluntary arbitration, the dispute can be referred for arbitration only if the
parties agree to the same. Section 10 A of the Act, however, provides only for
voluntary reference of dispute to arbitration. This system, however, has not been
widely practiced so far. One of the main reasons for not gaining popularly of this
procedure is lack of arbitrators who are able to command respect and confidence
of the parties to the dispute. Inter Union rivalry also sometimes makes it difficult
in arriving at an agreement on settlement of an arbitrator who is acceptable to all
the trade unions in the industry.
Adjudication: If despite efforts of the conciliation officer , no settlement is arrived
at between employer and the workman, The Industrial Dispute a provides for a
three tier system of adjudication viz. Labour Courts , Industrial Tribunals and
National Tribunals under section, 7 , 7A and under section 7B respectively. Labour
Courts have been empowered to decide disputes relating to matters specified in
the Second Schedule. These matters are concerned with the rights of workers,
such as propriety of legality of an order passed by an employer under the
standing orders, application and interpretation of standing orders, discharge or
dismissal of workman including reinstatement of grant of relief to workman
wrongfully discharged or dismissed, withdrawal of any customary concession or
privilege and illegality or otherwise of a strike or lockout.
The industrial tribunal are empowered to adjudicate on matters specified in both
the Second and Third schedule i.e. both rights and interest disputes. The
jurisdiction of the Industrial Tribunal is wider that the labour courts.
Workers participation management
: WPM is the participation resulting from the practices which increase the scope

for employees’ share of influence in decision-making at different tiers of
organizational hierarch with concomitant assumption of responsibility.
Objectives:;
O A device for developing social education for promoting solidarity among
workers and for tapping human talents;
O A means for achieving industrial peace and harmony which leads to higher
productivity and increased production;
O A humanitarian act, elevating the status of a worker in the society;
O An ideological way of developing self-management and promoting
industrial democracy.
O To secure the mutual co-operation of employees and employers in
achieving industrial peace; greater efficiency and productivity in the
interest of the enterprise, the workers, the consumers and the nation
Scope and ways of participation:
One view is that workers or¬ the trade unions should, as equal partners, sit
with the management and make joint managerial decisions. The other view is that
workers should only be¬ given an opportunity, through their representatives, to
influence managerial decisions at various levels.
In practice, the participation of workers can¬ take place by one or all the
methods listed below:
o Board level participation
o Ownership participation
o Complete control
o Staff or work councils
o Joint councils and committees
o Collective Bargaining

o Job enlargement and enrichment
o Suggestion schemes
COMPANY PROFILE
The Background
Following the discovery of large reserves of Bauxite ore in the east coast and the
preliminary project work done by Bharat Aluminium Company Limited, your
Company was set up by the Government of India in 1981 to implement one of the
largest multi-vocational integrated Aluminium projects of the world with its own
Captive Power Plant and Port Facilities.
The technical collaboration of Aluminium Pechiney of France, the support of Euro-
dollar loans from a consortium of International Banks and the special dies-
sensations of the Government of India and the Govt. of Orissa helped your
Company to implement the project expeditiously within the budgeted cost of
Rs.2408 core, under very difficult logistics of project management.
Different segments of your Company went into production in a phased manner
starting from November 1985. Within a short span of time, the Company has
emerged as a leader in the field of Aluminium production in the country and also
has made significant impact abroad. The Company has helped the country to
make a quantum jump in production of Aluminium and has also been earning
substantial foreign exchange through creditable export performances year after
year.
The integrated complex has five main segments:
Segment Capacity Location
Bauxite Mine 4,800,000 toy Panchpatmali in Koraput
Alumina Refinery 15,75,000 toy Damanjodi in Koraput
Aluminium
Smelter
3,45,000 toy Angul

Captive power
plant
960 MW Angul
Port Facilities 912,000 toy
(Alumina Export)
Visakhapatnam (AP)
BAUXITE MINE:
A fully mechanized open-cast mine of 48,00,000 tpa, on Panchpatmali hills of
Koraput district in Orissa , serves feed-stock to the Alumina Refinery at
Damonjodi ,located 16 km downhill. The transportation is done through a 14.6 km
long single flight, multicourse, cable belt conveyor of 1800 tpa capacity
Area of Deposit : 16 sq.km
Resource : 310 million tonnes
Ore quality : Alumina 45%, Silica 2%
Mineralogy : Over 90% gibbistic
Over burden : 3 metre (avg.)
Ore thickness : 14 metre (avg.)
ALUMINA REFINERY :
The 15,75,000 TPA energy-efficient Alumina Refinery, having three parallel
streams of equal capacity, is located in the picturesque valley of Damanjodi. The
Refinery provides alumina to the Company’s Smelter at Angul and exports the
balance Alumina to overseas markets through Visakhapatnam Port. Presently, it is
being expanded to 21,00,000 TPA capacity.
SMELTER PLANT :

The 3,45,000 TPA capacity Aluminium Smelter, located at Angul in Orissa, is
based on advanced technology of smelting and pollution control. Its capacity is
further expanded to 4,60,000 TPA.
The salient feature of the Plant includes :
- 180 KA cell technology
- Fume treatment with dry-scrubbing system
- Manufacturing of carbon anodes, bus bars, anode stems etc.
- Integrated facilities for manufacturing Ingots, Sows, Billets, Wire Roads,
STRIPS and Rolled Products.
Production at smelter plant
Sl
No.
Product Quantity
In MT (2006-07)
Quantity
In MT (2007-08)
1 Cash Ingot 190994 1,84,795
2 Sow Ingot 75805 72302
3 Wire Rod 67703 68087
4 Billet 12921 13801
5 Strip 4726 5976
6 Alloy Ingot 83 253
7 Anode Stem 638 1455
8 Bus Bar 1303 1636
9 Cast Strip 4561 10,909
TOTAL 3,58,734 3,59,213

CAPTIVE POWER PLANT:
It is very close to the Aluminium Smelter Plant at Angul, a Captive Power Plant
of 960 mw capacity has been established for firm supply of power to the Smelter.
The coal demand of the Plant is met from a dedicated mine of Mahanadi
Coalfields Limited. The Plant is also connected with State Grid for sale of surplus
power. The ongoing expansion shall raise its capacity to 1200 mw.
PORT FACILITIES:
On the inner harbour of Visakhapatman Port on the Bay of Bengal, NALCO has
established mechanized storage and ship handling facilities for exporting alumina
in bulk and importing caustic soda. This facility can handle ships up to 35,000
DWT.
FEATURES:
Ship loading rate: 2200 tph
Alumina storage : 3 x 25,ooo tones
Sl N0. Product Quantity in MT (2008-09)
1 Cash Ingot 1,84,308
2 Sow Ingot 65,631
3 Wire Rod 72,773
4 Rolled products production 14,024
5 Strip coils 2,370
6 Alloy Ingot 364
7 Billet/ Bus Bar/Anode Stem/ 21792
TOTAL 3,61,262

Besides, NALCO exports from the Ports of Paradeep and Kolkata.
ROLLED PRODUCTS UNIT :
After acquisition and merger of International Aluminium Products Ltd., NALCO has
started production from this 50,000 tpa palnt. This Rolled Products Unit is
presently producing standard coils and steels. Besides, it has facilities to produce
foil stock, fin stock, cable wrap stock, coil stock and closure stock for a variety of
end uses.
Your Company serves the national interest and enjoys trust and confidence of the
market and of the general public on account of its product excellence,
productivity, and profitability and good industrial relations. The inherent thrust on
customer service is another hallmark of the Company. Energy & environment are
the subjects of prime importance to your Company. Right from the design stage,
the Company has adopted anti-pollution and energy efficient technologies. There
is constant monitoring to ensure that there is no pollution of water and air and
that there is no disturbance to environment or ecological balance.
Plans are on the anvil to expand basic capacities of the plants and facility and
create downstream capabilities to meet the demands of the future.
The Management
Your Company is a Government of India Enterprise under the administrative
control of the Ministry of Mines. The Company is managed by a Board of Directors
appointed by the President of India. The Board consists of maximum 18 Directors
including the Chairman-cum-Managing Director of the Company. Apart from
CMD, there are 5 functional or full time Directors heading Project & Technical,
Personnel & Administration, Commercial, Finance and Production disciplines.
There are 2 senior Govt. officials nominated to the Board as Directors by the
Government of India. Besides, there are non-official Directors in the Board.
Thus, the Board of your Company is a pool of highly experienced and outstanding
professionals drawn from various fields of specialization. The Board enjoys
maximum possible operational autonomy, consistent with the overall corporate
objectives, basic policies and programmes with a view to achieving optimum
utilization of its resources. Subject to the provisions of the Indian Companies Act,

the Memorandum and Articles of Association, Memorandum of Understanding
signed with the Govt. and also subject to policies formulated by the Board of
Directors, from time to time, the Chairman-cum-Managing Director has full
powers to sanction expenditure or to deal with other matters for effective
functioning of the Company.
The management’s control system is based on delegation of authority and
individual accountability for results. The responsibility and authority to take
decisions on various matters are delegated by the Chairman-cum-Managing
Director to different levels in the management hierarchy. For personnel matters
such as appointments, confirmations, promotions, discipline, transfer, grant of
various benefits, leave etc. powers have been delegated to different levels of
executives, in conformity with the principles and policies of the management. The
schedule of delegation of powers is a published document available for reference,
which is subjected to review, from time to time, to incorporate necessary
changes.
Objectives of NALCO
 To maximize capacity utilization.
 To optimize operational efficiency and productivity.
 To maintain highest international standards of excellence in product
quality, cost efficiency and customer service.
 To provide a steady growth in business by technology up gradation,
expansion and diversification.
 To have global presence and earn foreign exchange.
 To maintain leadership in domestic market.
 To instill financial discipline at all levels for achieving cost and budgetary
controls, optimize utilization of working capital and effective cash flow
management.
 To maximize return on investment.
 To develop a strong R&D base and increase business development
activities.
 To promote a result oriented organizational ethos and work culture that
empowers employees and helps realization of individual and organizational
goals.

 To maximize internal customer satisfaction.
 To foster high standards of health, safety and environment friendly
products.
 To participate in peripheral development of the area.
Human Resources
Manpower in the Company, there are 7426 persons possessing a variety of skills,
qualifications and competence. Your Company is truly youthful with the average
age of the employees being below 35 years. Starting with a core group of 262
employees in 1982, the progressive growth in manpower has taken place in a
planned manner, matching the needs of the different stages of the project.
Present strength of 7426 as on March, 2007 is close to optimum requirement
against existing capacity.
Composition of Manpower
The manpower strength as on 31.03.2007
Total 7426
SC/ST Representation 2516
Land Displaced Persons 1975
Physically Handicapped 70
Women Employees 320

The philosophy of the Company in the filed of human resources management
has been:
→ To attract competent personnel with growth potential and develop their skills
and capabilities in a congenial work and social environment through
opportunities for training, recognition, career advancement and other
incentives.
→ To develop and nurture favourable attitudes among the employees and do
obtain their best contributions to the organization by providing stable
employment, safe working conditions, job satisfaction, quick redressed of
grievances and through good pay and welfare amenities commensurate
with the Company’s capacity to spend and the Government’s guidelines.
→ To foster fellowship and sense of belongingness among all sections of
employees through closer association of employees with the management
and by encouraging healthy trade union practices.
Man power planning at NALCO
In NALCO more emphasis is basing given of on Job specification. The
qualification for requirement of post is very important. Fraises/trainees for
technical post important. Fresher’s/trainees for technical post from various
departments are required. Each & every year more than 40 to 50 engineers are
required in smelter by to management.
Requirement us the process to fill up the needed vacancies for employment
& stimulating them to apply for Jobs in organization. Recruitment is also called as
development & Maintenance adequate manpower planning it is a heavy task for
Management to choose the right person for right job.
In NALCO Special Selection committee is there to make the selection
procedure easy. The selection process is organized by HRD department. The
selection committee makes an assessment of candidate on the basis of their
academicals background previous experience, performance in the test Interview
& other relevant factors shall prepare a panel of successful candidates in order of
merit to be considered suitable for employment.

In NALCO the placement is termed as final procurement function. Then the
employees are appointed & placed us regular cadre of the company. A training &
development, programme will be arranged in case of more recruitment &
placement Nalco believes that training is a continues process throughout the
career of every employee, with a view to develop his technical, human &
conceptual skills as required for the current Jobs & for his future career growth.
Different Categories as on 31st March 2009
Category Executives Non-
Executiv
Total % of Total
Manpower
SC 78 412 490 15.71
ST 58 531 589 18.89
Phi-Challenged 02 17 19 0.60
Ex-Servicemen 04 10 14 0.44
Minority 26 65 91 2.91
Women 18 107 125 4.00
Land Affected 14 110: 1115 35.76

Non-Executive Recruitment
Calendar
Year
Name of the post No. of Persons Recruited
SC ST Gen Total
2007 Jr.Foreman (Comp.) 0 1 1 2
Trainee Assistant 0 0 4 4
Jr. Foreman (Met.) 1 0 2 3
SOT 0 0 3 3
Jr. Operative Trainee 0 1 3 4
Jr. Accountant Gr-l 0 0 4 4
Total 1 2 17 20
2008 Jr. Operative Trainee 1 5 6
Laboratory Assistant Grill 1 6 7
Jr.Foreman (Sys.) 1 1
Pharmacist Gr.lll - - 5 5
Total 2 17 19
Note: Apart from above mentioned information:
• On 31st March 2009, 08 Non-Executives and 04 Executives were working on
contract basis.
• 06 Non-Executives and 01 Executive were recruited on contract basis during
2008.
GET/MT Placement
Promotions
Year Executives
SC ST GEN Total
Year New GET/MT Placed at Smelter
2006-07 27
2007-08 09
2008-09 18

2006 11 15 68 94
2007 18 10 100 128
2008 20 16 121 157
Year Non-Executives
SC ST GEN Total
2006 83 83 243 409
2007 61 86 287 434
2008 57 74 212 343
Separation Details
Reason Executives Non-executives Total
2006
-07
2007
-08
2008
-09
2006
-07
2007
-08
2008
-09
2006
-07
2007
-08
2008
-09
Resignation 09 16 7 02 3 0 11 19 7
Superannuation 02 7 6 03 0 5 05 7 11
VR 01 0 0 02 0 0 03 0 0
Death - 1 1 05 11 7 05 12 8
Dismissal/
Discharge
- 0 0 02 0 2 02 0 2
Transfer 27 27 31 02 10 14 29 37 45
Grade wise qualification composition of Chargemen / Operators in Smelter as
on 31st
March 2009

Grade wise qualification composition of Supervisors in Smelter as on
31st March 2009
Grade wise qualification composition of W- series employees in Smelter as on
31st March 2009

Superannuation of Employees of Smelter Plant in Chief Manager to General
Manager Grades in next 10 years
Present Position
E6toE8
Total Superannuation
in next 10yrs
H&A/Fin./Material 19(9+5+5) 18(8+5+5)
MedicalServices 13 13
Technical 89 31

Superannuation of Smelter Employees in next 10 years

While the Corporate headquarters of your Company is located at Bhubaneswar,
the capital city of Orissa, its mining operation and the manufacturing units are
located at Damanjodi and Angul. Damanjodi, in Koraput district of Orissa, is 550
km. By road to south of Bhubaneswar. Angul is 160 km. From Bhubaneswar on
north. It may be useful for you to get some general information on Damanjodi
and Angul which are the main centers of your Company’s activities.
Nalco Nagar, Angul
Nalco Nagar is situated within 5 km. of Angul town. Angul was once a feudal state
with a chequered history of palace intrigues and wars with neighbouring states. In
1847 the state was confiscated on account of the rebellion against the British by
the then ruling chief Somanath Singh. Thus, Angul passed under the British rule
earlier to many other parts of Orissa. Angul became a district headquarter in
1994.
Angul today is a fairly big and bustling town on the National Highway No.42 which
is the main Highway connection Bhubaneswar with Raipur (MP), Sambalpur,
Sundargarh & Rourkela. Nalco has established its Smelter Plant, the Captive
Power Plant and its township close to the National Highway. The place is easily
accessible from Cuttack and Bhubaneswar by road and rail.
Local population, till the advent of industries, basically depended on agriculture
for livelihood. Today in the vicinity of Angul a large number of industries have
come up. The other important industries in and around this place are Fertilizer
Plant of FCI, Heavy Water Plant of Atomic Energy Commission, Talcher Coal Mines
of Mahanadi Coalfields Limited and two Thermal Power Plants of NTPC.
Establishment of Nalco and other industries have brought about accelerated
growth to the trade, commerce and ancillary industries in the district.
The Nalco Township known as Nalco Nagar is modern and well planned. In
addition to 3679 dwelling units and trainees’ hostel with 403 rooms, Nalco Nagar
has many civic facilities like community centers, clubs, stadium, swimming pool,
market complexes etc. Your Company has established here a 50-bedded hospital
with ultra modern facilities. As in case of Damanjodi, there is an English medium
Delhi Public School and an Oriya medium Saraswati Vidya Mandir offering
excellent educational facilities to the employees’ children upto 10+2 standard.

Angul has comparatively a dry climate. The summer months can turn
uncomfortable and very hot, sometimes with the mercury touching 47
0
C.
It is important to note that due to the establishment of your Company, its plants
and townships, many local families were displaced or lost parts of their lands in
Damanjodi and Angul sectors. The Company has paid adequate compensation to
the affected families at the time of acquiring the land and further as a matter of
social obligation, has been providing employment and business opportunities to
the members of the displaced families on preferential basis.
The Company has also been implementing various periphery development
programmes at considerable cost to improve the quality of life of the people living
in the surrounding villages. Yet for various social, political and economic reasons,
you may sometimes notice discontentment and agitations among local people
against the Company. These are sensitive situations which need very careful
handling. You as a member of the Company, must never offend the local
sentiments. Rather, you should always strive to play a constructive role in your
day to day interactions with local people to help in developing a climate of
harmonious relationship and peaceful co-existence.
ENVIRONMENT CARE:
NALCO assigns high importance to promotion and maintenance of a pollution
free environment in all its activities. The Environment Management System in all
production/operation units conform to the ISO 14001 norms. Among numerous
recognitions, the two highest national awards viz. Indira Priyadarshini
Vrikshamitra Puraskar for environment management, conferred to the Company
by the Ministry of Environment and Forests, Govt. of India, bear further testimony
to NALCO’s commitment towards the environment.
COMMUNITY CARE:
The Company has adopted a policy of playing a catalytic role in improving the
quality of the life of the people living in the peripheral villages, in collaboration

with local government authorities. The activities include : creation of
infrastructure for communication, education, health care, water supply, apart
from undertaking social forestry, organizing rural sports and supporting activities.
NALCO: A BENCHMARK FOR CORPORATE SOCIAL RESPONSIBILTY:
In Orissa, for setting up Asia's largest integrated alumina-aluminium complex in
1981, National Aluminium Company Limited (Nalco) had acquired 7263 acres of
land at Damanjodi in Koraput district and 4057 acres at Angul. During the
inception of the company, 635 families in 51 villages were displaced - 600 families
in Damanjodi sector and 35 families in Angul sector. From these 635 displaced
families, employment has been provided to 625 nominees. Confusion regarding
educational background and nomination status of balance 10 families has been
taken up at appropriate level. Besides, 1495 families were substantially affected
(i.e. parting with one third or more land) in Angul sector. Even from these, jobs
have been provided to 1060 persons. Nalco has also been sponsoring ITI training
to such persons and 543 have been technically trained so far. Apart from financial
compensation, employment and rehabilitation packages, Nalco has also spent
more than Rs. 100 core towards various social sector development activities.
Creation of infrastructure in the surrounding villages for communication,
education, health care and drinking water gets priority in the periphery
development plans of the company. Community participation in innovative
farming, pisciculture, social forestry and sanitation programmes apart,
encouragement to sports, art, culture and literature are all a part of Nalco's deep
involvement with the life of the community.

Caring for Culture: Illumination of Lord Lingaraj Temple
As a corporate policy, Nalco has been allocating 1% of its net profit of the year for
social sector activities of the succeeding year. For example, during the 2006-07
fiscal, Nalco made a net profit of Rs. 2381 core. Accordingly, for the current year,
the company has earmarked Rs. 23.81 core for various developmental activities in
State.
Caring People: Free Eye-camp
These apart, during natural calamities, Nalco has been donating to Chief
Minister's Relief Fund and Prime Minister's National Relief Fund. Soon after Super
Cyclone in Orissa, Nalco created 197 primary school-cum-cyclone shelters in the
coastal districts. Besides, illuminating Lord Lingaraj Temple, Nalco has created
Mahatma Gandhi Park and Biju Patnaik Park at Bhubaneswar and Gandhi Ghat
Park at Puri. Nalco has also committed Rs. 2 core for the renovation of Ananda
Bazar in the premises of Lord Jagannath Temple.

Nalco, Smelter Plant and Alumina Refinery have 50 bedded well equipped
hospitals for health care of its employees, their dependant family members and
nearby localities. Free medical treatment is extended in these hospitals. The
employees are further referred to advanced hospitals in appropriate cases for
specialized treatment
One ESI dispensary is also there for the treatment of all contract labourers and
their dependant family members. In case of emergency medical treatment is
provided to contract labourers in NALCO Hospital also.
A mobile medical unit with qualified doctors and paramedical staff also
move in and around the periphery villages to take care of the health of the
villagers and supply medicines free of cost.

NALCO’S HEALTH CARE FACILITIES AT ANGUL:
# 50 Bedded Hospital at Nalconagar
# 2 First Aid Centers
# Blood bank
# Occupational Health Center
# Peripheral Health Services
 Village Health Camps: 10-12 per annum
 Family Welfare Camps: 1-2 per annum
 Cataract Operation Camp: 1 per annum
 Orthopaedically Handicap Detection Camp: 2-3 per annum
 Hearing Impaired Detection Camp: 1 per annum
 Cancer Detection Camp: 1 per annum
 Emergency services to Local Villagers as and when required
Welfare for Peripherals:
• Drinking Water
• Health Camps
• Schools in Periphery
• Roads in Periphery
• Veterinary camp
• Plantation

• Rural Sports
• Cultural Programs
WHAT NALCO GIVES TO THE EMPLOYEES :
The compensation and reward system as well as welfare and social security
system provided by the company are among the best in the public sector. The
infrastructure of hospital, schools, community centre, clubs, parks and market
complex is unique features.
WHAT NALCO GIVES TO THE COMMUNITY :
Rehabilitation of displaced families, rural drinking water scheme, roads and
communication, education,medical and health services, agricultural and
forestry,sports and cultural meets etc.
FUTURE EXPANSION OF NALCO :
Nalco completed its first phase of expansion with an investment of Rs.3600 crore .
Now the second phase expansion is under implementation with an investment of
Rs. 4092 crore is scheduled to be completed by the end of 2010.
New project plans are Mines and Refinery complex in Andhra Pradesh, Smelter
and Power Plants in Indonesia,South Africa and Iran, setting up Aluminium plant
for up stream and down stream industries. These are the main results that are
visible. But the unseen asset is the dedication of the people in and out of the
organisation.
• About 7500 diligent and dedicated workforce of NALCO has brought
a world of difference.
• The Govt., Semi govt.,Local bodies, Peripheral villagers.
2nd
Phase Expansoin:

• The Commissioning of 2nd phase expansion work has started as per
MOU target with pre-heating of 1st pot of Smelter on 26th
December’08. As of March’09, 120 posts out of total 240 pots have
been commissioned.
• Boiler light up of Unit # 9 of CPP achieved on 26th October, 2009.
OTHERS:
• Order has already been placed for 148 packages out of 155 packages
of
Mines Refinery, 130 packages out of 139 packages for Smelter and 27
packages out of 28 packages for CPP.
• The approved cost of Rs 4091.51 crore (at July’03 price level) has
been revised to Rs. 4402 crore (at Nov’08 price level)
• Total financial commitment of Rs. 204 crore made during FY 08-09
and cumulatively: Rs. 3933 crore.
• Capital expenditure of Rs. 1,237 crore made during FY 08-09 and
cumulatively Rs. 3185 crore.
CROWING GLORY:
Nalco Asia’s largest Alumina-Aluminium complex, showing steady growth in
productivity and profitability has set new benchmarks in corporate excellence
since inception. With an untiring zeal for better performance by the committed
work force, Nalco’s glory has been reaching new heights every year.
Presently Nalco is all set to invest Rs.40,000 core in many ambititious brown field
and green field expansions in India and abroad. With Navaratna status, the
company is well poised to become a global giant.

SPECIAL FOCUS ON SMELTER AND POWER COMPLEX: THE PLANT ON WHICH I
HAVE MADE MY PROJECT :
1. 4095.22 Acres of land acquired for construction of Smelter(2046.28) and
Power Plant (2049.64)
2. There are 3510 non-executive employees and 1045 executive employees
including trainees. Around 93% are from the state of Orissa.
3. Out of the total permanent manpower about 33% are land affected people.
4. Around 10,000 contract workers are presently engaged out of which
around 70% are local people.
5. Around Rs. 40 crores has been spent for peripheral development till the
year 2008.
6. 5481 for executives ,8111 man days for non- executives training of in
house, corporate out of state, out of country during 2007-08 have been
provided.
7. There are 1122-“A” type quarters, 1932-“B” type quarters, 401-“C” type
quarters, 128-“D” type quarters and hostel for trainees.
8. There is one hospital and two schools in the township.
9. There are officers’ club and community centers.
10. There are presently 3 security agencies CISF, Group 4 security and ISS.
11. There are 10 registered trade –unions, SC/ST employees association and
officers association.
12. Effective HRD functions such as – Recruitment, placement, induction,
training, performance appraisals.
13. Lucrative incentives and allowances such as – travelling, conveyance, cash
handling, night shift, spilt shift, washing paper and periodicals.
14. Interest and interest free advances are sanctioned such as – House
building, Special advance, Motor vehicle, Multipurpose furniture advances.
15. There are motivational schemes for acquiring professional qualification,
family welfare, suggestion, production linked incentives, scholarship to
children, 25 year long service rewards.
16. There are welfare measures of housing, hospitals, schooling, clubs,
community centre, sports complex, market complexes.

17. There are statutory/non statutory social security measures such as-
provident fund, gratuity, death benevolent fund, NEFFAR Scheme, post
retirement medical be
SWOT ANALYSIS
STRENGHS
• Collaboration with foreign companies.
• Competent manpower
• ISO 9002 certified
• ISO 14001 certified
• OHSAS 18000 certified
• Largest bauxite deposit in the world
• India’s largest aluminum producer and exporter
• Advanced technology
• Highest capacity utilization
• Captive power plant
WEAKNESSES
• The company being a public sector unit is a vital part of the Govt. system &
hence it faces problems from govt. in the following areas.
• Clearance of expansion related activities from Govt.
• Mobilization of resources
• Rigid marketing strategies
• Manpower restructuring in hiring & Firing
• Lack of aggressive marketing strategies
• Lack for visualization for downstream product development for being
competitive in the market
• Interference by the political & non political agencies
• Sons of the soil problem

OPPORTUNITIES
• Te company has created a wide range of opportunities for the ancillary
industries that thrive in the product of the main plant
• The company has already made provisions for future mobilization with
timely help of the govt. of India & help from outside bodies.
• The company has a large scope for the downstream project
• Availability of good quality bauxite in large quantities in near proximity
• Acceptability of the product globally.
THREATS
• NALCO faces a stiff competition from the other Indian industries engaged in
aluminum making such as HINDALCO, STERILITE Group, JINDAL etc.
• Similarly the international market is also facing competition from China,
Russia, as well as European countries.
• Price fluctuations of aluminum and alumina in the domestic & international
markes.
• Availability charges in the production process & obsolete technology.
Pay Scales
The pay scale in respect of all non-executive employees are reviewed and revised
once in 10 years after negotiations with trade unions and with reference to Govt.
of India guidelines on the subject. The scales given below are in existence since
01.01.1997.
Unskilled/
Semiskilled
Ministerial Technical Pay Scales (Rs.)
Code Code Code
W1 4400-3%-7950/-
W2 4650-3%-8400/-
W3 M0 T0/P0 4925-3.5%-9150/-
W4 M1 T1/P1 5325-3.5%-9890/-
W5 M2 T2/P2 5725-3.5%- 10635/-

M3/S0 T3/P3/S0 6125-3.5%-10990/-
M4/S
1
T4/P4/S
1
6625-3.5%-11490/-
M5/S
2
T5/P5/S
2
7225-3.5%-
12530/-
M6/S
3
T6/P6/S
3
8000-3.5%-
13400/-
M7/S
4
T7/P7/S
4
8550-3.5%-
14325/-
All executives have been offered the scale under guidelines issued by the
Department of Public Enterprises, Government of India. The existing IDA pattern
scales are in operation since 01.01.1997.
Designations Codes Pay Scales (in Rs.)
Assistant Engineer/ Assistant Officer/ GET/MT E-0 8600-4%-14600/-
Jr. Manager/ Medical Officer E-1 11225-4%-17525/-
Assistant Manager/ Sr. Medical Officer E-2 13750-4%-18300/-
Dy. Manager/Asst. Medical Supdt. E-3 16000-4%-20800/-
Manager/Dy. Medical Supdt. E-4 17500-4%-22300/-
Sr. Manager/Medical Superintendent E-5 18500-4%-23900/-
Chief Manager/Chief Medical Supdt. E-6 19000-4%-24750/-
Dy. General Manager E-7 19500-4%-25600/-
General Manager E-8 20500-4%-26500/-
Executive Director E-9 23750-4%-28550/-
Training & Management Development
Training is an expensive area of the Company’s Personnel Budget, which requires
due attention in correlating training functional necessities & developmental
needs of the individual & the organisation.

The Company fulfills its task of training & development its employees to the
optimum extent by sponsoring them to various in-house programmes and to the
courses offered by the reputed institutes in the country and abroad. A training
proposal may either come from the department where an employee is working or
it may come in the form of a suggestion from the Training Department based on
the training needs reflected in the appraisal and annual assessment reports.
Besides short range & prospective training, plans are also made for various groups
of employees after elaborate consultations with the departments. The training
proposals including proposals of participation in seminars & conferences are
processed by the Training department. After attending any course of training, it is
necessary for an employee to give feed-backs on the course to his superiors &
colleagues and to the Training department. Training feed-back can be given
through a formal meeting or by circulation of a written report on the course.
Training Statistics (S&P Complex)#
Executives Non-executives
Place of Training Place of Training
In-
house
HCE,
NALCO
BBSR
Other
Places
i I di
Abroa
d
In-
house
HCE,
NALC
O
Other
Places
i
Abroa
d
2007- No. of
Employee
916 592 232 8 1115 24 1127 Nil
08 Mandays 1846.5 1337 2298 40 2267 46 5798 Nil
2008- No.of
Employee
1440 185 165 16 1908 8 405 Nil
09 Mandays 6029.5 759 915 176 2615 16 1877 Nil
#Courtesy: Training Institute
Workers' Education Training Programme

Year No. of
employees
Period of Training Place of Industrial
Visit
2006-07 70 45 days including 4 days Indl.Tour New Delhi
2007-08 70 -do- -do-
2008-09 40 -do -do-
Nalco provides Adequate Training Programme to the workers every year, with the
changing technology. NALCO send most of its workers to different PSUs in India
and abroad to gain some advance knowledge with the latest technology.
Total Expenditure on Training Programme
2006-07 Rs. 18,399,103/-
2007-08 Rs. 16,984,643/-
2008-09 Rs. 18,945,255/-
Nalco Employees Family Financial Assistance Rehabilitation Scheme
Your Company has formulated a Scheme called “Nalco Employees Family
Financial Assistance Rehabilitation Scheme” with effect from 16.11.1995 to
provide monetary benefit and support to an employee in case of his permanent
total disablement or to his family in case of his death, in either case while in
service.
The Scheme is voluntary and covers all regular employees (both executives and
non-executives excluding trainees/apprentices). However, the departmental
candidates selected as Trainees under the Company’s own training Schemes such
as, GETs, MTs, SOTs, JOTs & Trainee Assistants etc. will be covered under the
Scheme. The Scheme will also cover full time functional Directors of the Company
in regular scale of pay.
Benefit
On separation of an employee from the service of the Company due to death the
nominee of the employee and in case of Permanent Total Disablement, the
employee has to deposit with the Company an amount equivalent to the entire

amount of notional PF, Gratuity, Group Insurance and company’s contribution
under Benevolent Fund Scheme. The employee/nominee will be entitled to
monthly fixed compensation worked out based on his Salary (Basic Pay + DA) last
drawn reduced by the pension which will accrue under EPS-95 and it shall
continue till the normal date on which the employee concerned would have
attained the age of superannuation, had he been in the services of the Company.
Further, the fixed monthly compensation shall not undergo any change in any
circumstances even after subsequent salary/DA revision.
IR SCENARIO IN NALCO
TRADE UNION

Trade Unions are main component of Industry and for a better industrial
relation of always being prepared. It is the continuous association of salaried
employees / wage earners for maintaining the conditions of their working life &
securing a better & healthier status in Industry as well as in society.
The workers of NALCO join to trade union to get satisfaction or self respect &
the below benefit like.
 For Economic benefit.
 For free from of self expression.
 Check on arbitrary action of management.
 Security
 For employee employer relationship & a good IR situation.
 For sense of belongingness.
 There are a unions functioning un NALCO but the recognized one is NALCO
Employees Sangha Affiliated to INTUC.
Names of Registered trade Unions Functioning at Smelter Plant
Sl
No.
Names & Address of the Union`
Registration No. &
Date
Affiliated to
1 NALCO Employees Sangha
NALCO NAGAR, Angul
(Recognized)
197-SBP/29-08-
2001
INDIAN NATIONAL
TRADE UNION
CONGRESS
(INTUC)
2 NALCO Progressive Employees’
Union, NALCO NAGAR, ANGUL
1497/30-01-1983 Hind Majdoor
Sabha. (HMS)
3 NALCO Karmachari Sangha.
NALCO NAGAR, ANGUL
1515/12-10-1983 Indian National
Trade Union
Congress (INTUC)
4 Aluminium Majdoor Sangha.
NALCO NAGAR, ANGUL
1794/25-09-1984 Bharatiya Majdoor
Sangha
5 NALCO Smelter Workers Union. 145-SBP/02-02- All Indian Trade

NALCO NAGAR, ANGUL 1998 Union Congress
(INTUC)
6 NALCO Smelter Sramik Sangha.
NALCO NAGAR, ANGUL
193-SBP/07-08-
2001
Centre of Indian
Trade Union
7 NALCO Thika Majdoor Sangha
NALCO NAGAR, ANGUL
129-SBP/08-05-07 Bharatiya Majdoor
Sangha (BMS)
8 NALCO Sramik sabha 178-SBP/13-07-
2000
Hind Majdoor
Sabha (HMS)
9 NALCO Nirman Majdoor Sabha 265-SBP/28-03-
2007
• Sl. No. 1 to 6 are working for Nalco Employees & 7 to 9 are working for
contract labour.
• Reorganization is valid for 3 years.
PROCEDURES FOR RECOGNITION OF TRADE UNION
For recognition of Trade Union in NALCO, the Orissa State, implementation &
Evaluation Committee (as provided in Orissa Trade Union Regulation) headed by
Labour Commissioner of Orissa as Member Secretary, passes resolution
recommending recognition through voting by secret ballot. This resolution is
notified in gazette of Govt. of Orissa as union required.
As per this the latest recognition was held by secret ballot in 14/10/08. The union
NALCO Employees Sangh was declared as recognized union. The subscription fees
for recognized union members is Rs.5/- per month and for other union member is
Rs.2/- per month.
Membership (till 2008)
Sl. No. Name of Union No. of Members
01 N.K.S. 670

02 N.E.P.U. 2129
03 N.E.S. 972
04 N.S.W.U. 397
05 N.S.S.S. 219
06 A.M.S. 892
Unions common facilities extended to Recognised Trade Union vis-à-vis
Unrecognised Trade Unions
Items Recognised
Unions
Un-recognised
Unions
Remarks
Financial
Assistant
Rs.1,10,000/- +
the amount at a
rate Rs.30/- per
member of
votes polled in
the last
verification
process.
Rs.30,000/- +
the amount at
a rate Rs.30/-
per number of
votes polled in
the last
verification
process.
Securing 30% or more votes
at the secret ballot.
Rs.15,000/- +
the amount at
a rate Rs.30/-
per number of
votes polled in
the last
verification
process.
Securing 10% or more votes
but less than 30% of votes
and the single union of ND
and Kolkata.
Less than 10% NIL

Training
Programme
(Leadership
Dev.)
Maximum 100
mandays per
year
50mandays per
year
Securing more than 30%
votes
15mandays per
year
Securing more than 10%
votes
Office Space Upto 1000
square feet.
Size of Office
space to be
decided by the
unit depending
upon the
availability of
space
1/3 adjacent to the Office of
NNLU, CPP, to NSWU
Completed 10 years or have
secured 10% or 100 votes
(whichever is less) in the last
membership verification
subject to availability.
Rs.200/- as license fee per
annum to be charge towards
rent, water, elect.
Tour Maximum of
30mandays per
year
No Tour For visit to any place of the
company or to State/Central
or Dist. Head Quarters to
discuss about the affairs of
the Unions, to follow up
certain issues relating to
employees, to attend any
function of the Central
affiliated body at State or
Cent5ral Level.
Does not count for attending
any structured meeting with

the Management through
official invitation or any trg.
Programme organized by the
Management.
Special Casual
Leave
A total of
30mandays in a
year
15mandays in
a year
Unrecognised unions
affiliated to Central Trade
Union Organisation.
For attending annual
functions/ conventions/
seminar/ conference/
symposium/ workshop at the
State/ Central level by the
Central Trade Union
Organisations / Central Body.
Intercom
Telephone
Minimum 08 +
some addl. IC
telephone
following fixed
formulae.
01 no. to the
Office of the
Union(s) where
the office
space has been
provided.
Scheme for meeting with recognized unions
• To understand respective viewpoints, share the perceptions and enhance
mutual communication between recognized union and management.
• The main objective is to make a healthy work culture, openness,
enhancing’, the productivity & performance of the company as well as
building the image of the company.
There would be four levels of interactions with the representatives of the
recognized unions.

(1) Unit level
(2) Complex level
(3) Corporate level
(4) Chief executive level
(1) Unit level:
• These are the monthly meetings with the representatives of the
recognized union held every month.
• Six representatives as nominated by the recognized unions.
• The management team would constitute the unit head, hard chief of the
unit, head of the finance department, head of operation & maintenance
department.
• Mainly the issues like up keep of machinery tools & equipment, cost
control, house keeping, technical improvement, improvement of
production, skill development & employee development activities &
other unit related issues of importance would be taken uj5 in the unit
level meetings.
(2) Complex level:
• It is held in every second month in the place of the monthly unit level
meeting.
• Five representatives from each recognized union of the complex would
participate in meeting.
• The management team will constitute the head of the complex. HRD
chief of the complex, finance chief of complex, units heads of complex &
HRD chief of the units.
• Broadly, the issues such as production? Productivity related matters,
uniform approach relating to work culture, discipline. Health, safety,
employee’s welfare & common complex level issues would be taken up
in the complex level meetings.
(3) Corporate level

• It is held separately for the complexes once in every four months.
• The respective unions for such meetings would nominate four
representatives.
• The management side would be represented by Director (P&A), Director
(production), I {RD chief of corporate, .HRD chief of the complex & chief
finance of the corporate office.
• Broadly, the issues like targets & achievement analysis, organizational
thrust areas including business strategy & future plans, commitment to
industrial harmony. Common parameters for productivity norms & any
issues of importance pertaining to the functioning of the company
would be taken up in the corporate level meetings.
(4) Chief executive level
• It is conducted once in every six months.
• The respective unions would nominate two representatives.
• Mainly, the key areas like targets & achievement analysis, business
policy & strategic management for the future are taken up in the chief
executive level meetings.
• The unions will give agenda item for the discussion at the meetings in
advance.
• The nomination of the representatives of the unions would be intimated
to the concerned coordinating officials in advance with due approval of
the head of the units to which the representatives belong.
• The visit of the representatives to attend the meetings would be treated
as an official tour.
• Each meeting will be preceded by giving attendance by all members in
the register kept for the purpose.
• During the course of meeting no personal accusation against any
member or any person! Employee would be entertained.
• Members would not have rights to discuss on the issues which have not
been included in the agenda for discussion.
• The minutes of the meetings are to be kept on record & should indicate
the outcomes of the discussions.
• The form of the bi- partite would not be used for collective bargaining.
• Scheme for meetings with officers associations

• To have a better regulated & structured interaction with the
representatives of the officers association with an objective to provide a
forum for expression of various ideas, participative management,
openness, healthy work culture, enhancing the productivity &
performance of the company as well as building the image of the
company.
There would be two levels of interactions with the representatives of the
recognized union.
(1) Complex level
(2) Corporate level
1. Complex level
• It would be quarterly meeting with six representatives of the officers
association of the complex.
• The management team would constitute the head of the complex, HRD
chief finance chief of the complex, unit heads of the complex & HRD
chiefs of the units.
• The issues like production/productivity related matters, uniform
approach relating to work culture, discipline, health, safety, employees
welfare & common complex level issues would be taken up in the
complex level meetings.
2. Corporate level
• It would be a meeting with the representatives of the officers
association of all the unit/complex/office at corporate level once in four
months.

• The respective officers association would nominate four
representatives. The management side would be represented by
Director (P&A), Director (production), HRD chief of the corporate, and
HRD chief of the complex & chief finance of the corporate office.
• Broadly, the issues like targets & achievement analysis, organizational
thrust areas like the business strategy & future plans, commitment to
industrial harmony, common parameters for productivity norms & any
issues of importance pertaining to the functioning of the company
would be taken up in the corporate level meetings.
• The general procedures for the meetings of these meetings are the
same as discussed earlier.
Structured meetings with the unions/ associations
Unions/ assn. Unit level Complex level Corporate
level
Chief
executive
level
Recognized
union
Every month
(6 union rep)
unit head,
HRD Chief,
HOD of
Finance,
head of
(O&M), HR
Executive as
secretary
Every 2nd
month
in place of
monthly unit
level meeting
Head of complex,
unit heads, HRD
Chief, finance
chief, HRD chiefs
of units, HRD
Executives
dealing IR of
both units.
HRD Chief of the
complex conduct
meeting in every
alternate month
(5 reps. Of each
recognized.
Unions of units)
Once in every
four months (4
union rep)
dir(p&a),
dir(p), HRD
chief of
corporate,
HRD chief of
complex,
finance chief,
HRD chiefs of
units, HRD
Executives
dealing IR
Once in
every six
months of
the financial
year. (2
union rep.of
rec. unions
of the
company, all
F.Ds, chief of
the complex,
HRD Chief of
the complex
& of the
corporate.
Officers
associations
Quarterly (6 rep)
Head of complex,
unit heads, HRD
Chief, finance
chief, HRD chiefs
of units, rep.
Once in four
months (4 rep.
of each assn.)
dir (p&a),
dir(p), HRD
chief of

from other dept.
depending on
requirement
corporate,
HRD chief of
complex,
finance chief,
HRD chiefs of
units & of the
corporate.
SC/ST
employees
Welfare
Association
Once in four
months (6 rep. of
assn.) chief of
complex, HRD
chiefs of units,
liaison officers of
the units
Once in six
months (4 rep.
of each assn.)
dir(p&a), chief
of complex,
HRD chiefs of
units, chief
liaison officer,
liaison officers
of the units
INDUSTRIAL DISPUTES & SETTLEMENT AT NALCO
Proforma containing information is respect of IDs Act (IDA)
1. Number of IDs during the period : 2001 - 2006
Year
2001 02
2002 -
2003 01
2004 -
2005 02
2006 01
2, List of IDs for the period 2001 - 2006
Details of
Unit
1 Cause of dispute Year The final outcome

Smelter
Plant
.
ID Misc. case 54/92.
M/s. Kaiinga consultancy &
Construction (P) Ltd
Vrs
Sri Bansidhar Pradhan &
Other, NALCO Smetter Plant
Sri Bansidhar Pradhan & 45 others
1992
&
Conti
nuing
till
date
The case is pending
before the Hon'ble
High Court, Orissa,
Cuttack.
Smelter
Plant
ID Misc. case 43/201
Sri Biwal Kr, Nath
Vrs.
1. M/s, Orien Engineers Pvt .Ltd,
2. GM(Smelter), NALCO, Smelter
Plant
Claim under Sec 33 (C){2)
2001 Award given by the
Hon'ble Labour Court
directing M/s. Orien
Engineers Pvt. Ltd to
pay an amount of Rs.
79,290/- to Sri Nath.
Prior to the award,
there was a
settlement between.
M/s Orien & Sri Nath
Smter Plant ID Case No. 19/2000
General Manager Smelter
Between
Disputes on declaration of public
2001 Case Closed
01/11/2001
The award was given
in favour of the
S & P
Complex
MW Case No. 2/2003
Between Bijoya Kumar Nath & 127
others Vrs,
BM. ISS(I)Pvt Ltd.
CMD,ISS(I) Pvt. Ltd
GM(HRD) NALCO (S&P) Angul
CMD, NALCO
Claim for payment of differential
wages for the period Sept 96 to Dec
2003 High Court passed stay
order, on further
proceedings in M.W.
Case
No. 2/2003,

smelter
Plant .
ID No. 54 of 1992 arising out of ID,
case No.78 of
1986
Between Sri Bansidhar Prodhan and
others
Kalinga Consultancy & Construction
Consortium (Pvt) Ltd,
M/S. NALCO
2005 Case pending before
the Presiding Officer,
Labour court,
Bhubaneswar
S&P
Complex.
ID Misc: Case No 81/2005
Between Sri Bat Naik & 72 others
Vrs.
ISS (I) Pvt, Ltd.
ED(S&P) NALCO
Application filed U/s. 33 - C(2) of the
ID t 1947 f t ti d
2005 Hearing of the case is
going on in Labour
Court, Bhubaneswar.
Smelter
Plant
W.C. Case No.40/98
Between Palu Soren & Mukund
Soren Vrs,
M/s. National Builder's
Claiming compensation on account
of death of Mansing Soren.
1998
(Complet
ed on
2006)
Case closed on 2006.
The commissioner
under W.C. Act cum-
ALC, Angul passed the
judgment on
23.2.2000 to pay an
f /
3, Collective bargaining - Details of number of cases in which Collective
bargaining was resorted to -
Unit
details
Year Course of
Dispute
Whether
Settled
If not settled,
What action
Loss of
manday
Produc
tion
Smelter
Plant
2001
Long Term
Wage
Settlement No-
4 Revision of
wages w.e.f.
01 01 97
Settled:
Agreemen
t
signed on
05.09.200
1
N.A. NIL NIL

Smelter
Plant
2002-03
Revision of
Productivity
Linked
Incentive
Scheme.
Revision of
I i
Settled:
Agreemen
t
signed on
06.02.200
3
N.A. NIL NIL
Smelter
Plant
20003-04
Revision of
Canteen
Subsidy
Enhancement
of rate of
f
Settled:
Agreemen
t
signed on
21.01.200
4
N.A. NIL NIL
Smelter
Plant
2004-05
Leave
Agreement
Modifications
in certain
provisions In
Settled:
Agreemen
t
signed on
29 11 200
N.A. NIL NIL
4, Lok Adalat: Details of cases referred to Lok Adalat
Unit detail Year Course of
dispute
Details of
Lok
Adalat
If settled what
was the time
taken ? If not
Loss of
Manda
ys
Productio
n loss
/day.
NIL --- --- --- --- --- ---
5. Works Committee [WC] Details of works committees constituted
Unit
details
Year Whether
Works
Committee
Was
WC set
up?
Whether
disputes
Were referred
Loss of
manda
ys
Productio
n loss /day

As per the provisions of the IDs Act 1947, in case of any industrial establishment in
which one hundred or more workman are employed or have been employed on
any day in the preceding twelve months, the appropriate government may by
general or special order require the employer to constitute in the prescribed
manner a Works Committee The Govt has so far not issued any orders requiring
6. Conciliation Officers (CO) Details of cases referred to conciliation officers:
Unit details Yea
r
Cause of
dispute
Details of
CO
If settled what
was the time
taken? If not,
Loss of
Monda
ys
Producti
on
loss /
S&P
Complex
ID Between
Orissa
Security
& Service
Employees
Union Vrs
The
Manageme
nt of
ALC(Centra
l),
BBSR
The dispute was
closed as per Lt.
of ALC (Central)
vide
No.5(13)/2000-
BBSR Dtd.
01.02.2001 Time
taken from
19 01 2000 to
NIL NIL
S&P
Complex
200
2
Petition
filed by ISS
on
the grounds
of non
payment of
SSW
Decided as per
order issued
ALC, Angul
vide letter No.
3339(3)/ALC
Dtd. 21.05.2002
to make the
t f
NIL NIL

S&P
Complex
200
2
ID between
the
manageme
nt of
Smelter &
Nalco
Smelter
Workers
Union in
the matter
of 5 point
charter of
demand
District
Labour
Officer,
Angul
Management,
the case was
closed with
failure report
vide letter
dated 1.5.2003
(Conciliation
from 06.06,2002
to 31.05.2003)
NIL NIL
Smelter
Plant
200
3
ID between
the
manageme
nt of
Smelter &
General
Secretary,
Nalco
Progressive
Employees’
District
Labour
Officer,
Angul
Conciliation
started on
14.11.2003
(I) Out of 4
issues 3 have
been settled,
(ii) The issue
related to Wage
disparity is
NIL NIL

S&P complex 2004 9 Point
charter
of demand
by Nalco
Sramik
Congress
Union
8. Point
charter of
demand by
Nalco
Sramik
Sabha
Conciliation
started before
ALC, Angul on
18.12.2004
and
continued on
different dates
up to
07.10.2005
Disputes are
settled Total
period is from
18.12,04 to
30.11.05 Only
one point i.e.
whether the
contract
labourers
deployed
through
different
contractors on
Smelter Plant &
NIL NIL
Smelter Plant
(Roll Product
Unit)
2005 Alleged
illegal &
unjustified
refusal of
employment
District Labour
Officer,
Khurda,
Bhubaneswar.
Conciliation
started on
21.11.2005 &
continued up to
09.01.2006,
Further action
to be taken by
NIL NIL
2006 4 Point
Charter of
demand
submitted
by the
workmen of
M/s,
ISS(I)Pvt.
Ltd. through
Nalco
Industrial
District Labour
Officer, Angul
Conciliation
started on
31.7.2006 and
continuing at
present.
NIL NIL

7. Boards of conciliation: - Details of cases referred to Boars of conciliation, if any
Unit detail Year Cause of
dispute
Details
of
If settled what
was the time
taken? If not
what action was
Loss of
manday
s
Production
loss /day
NIL
8. Courts of Inquiry: - Details of cases referred to Courts of inquiry:
Unit
details
Year Cause of
dispute
Detail of
Court
If settled, what
was the time
taken? If not
what action
was taken?
Loss of
manday
s
Production
Loss /day
NIL
9. Arbitration: - Details of. Cases referred and settled through Board of
arbitration, if any:-
Unit details Year Cause of
dispute
Details
of
Board
If settled, what was the
Loss of
Time taken? If not, what
action was taken?
Productio
n loss /day
NIL
10. Labour Court / Industrial Tribunal / National Tribunal: - Details of cases
referred to labour courts / Industrial Tribunal / National Tribunals and progress
thereof:-

Unit details Year Course of
dispute
Details
of
Court
If settled, what
was the time
taken? If not,
Loss of
manda
ys
Productio
n loss
/day
All ready reflected at point No. 2 above.
11. Implementation of award of Labour Court/ Industrial Tribunal/National
Tribunal:-
Date of
award
Award
given
Whether or
not
Reasons for
non
Impact in
terms of loss
Impact in terms of
Production loss /
All ready reflected at point No. 2 above.
12. Closure/retrenchment /layoff: - Number of cases of closures/retrenchment/
layoffs and workers affected:
Unit details Year Reason for
Closure/
retrenchm
ent/ layoff
Whether case has
been referred to
any Dispute
resolving body
under the IDA?
Outcome of
reference and
details of follow-
up action taken
No. of
workers
affected
NIL
13. In the case of retrenchment, it may be stated, whether a mechanism existed
for ensuring that
I Whether the workman is given one-ninth's-notice in
writing indicating the reasons for retrenchment or he
is paid wages for the period of the notice in j lieu of
such notice
Yes
ii Whether, the workman is paid, at the time of
retrenchment, compensation which is equivalent to
fifteen days' average pay {for every completed year
of continuous service} or any part thereof in excess
f h
Yes

iii Notice in the prescribed manner is received by the
appropriate government 1 (or such, authority as may
be specified by the appropriate government by
notification in the official gazette) if so, details of the
14. In the case of lay-off it may be stated:
I Whether the workmen were paid for all days for
which they were laid off, except for intervening
weekly holidays, compensation for which was to be
equal to 50 % of the total of the basic wages and
dearness allowance that would have been payable to
him had he/she not been so laid off
There is no case of lay
off.
Pending Disputes
(As on 31/03/2009)
Court No. of disputes
Labour Court 03
Ind. Tribunal 04
High Court 01
Supreme Nil
W.C. Case 01

Industrial Dispute Statement at NALCO.
Any statement which arises in NALCO between union and management is
governed by ID Act. 1947. In case of dispute the management call for the
representative of union for mutual discussion for settlement. If the problem
persist then the approach to a layout authorized for conciliation. If conciliation
failed then it is set to relieve by Govt. If Govt. feels that it is a fit case for dispute
to decide by court then it is send to layout court depending on nature of dispute.
If Govt. does not feel it a fit case for layout court then it reject the dispute. If any
of party is not satisfied of layout court decision they refer to high court. But at this
stage they have to abide by the rules. At labour court the petitioner, if they like
they can ask permission for advocate they can go to high court where they revive
the case or back the case to labour court.
In NALCO Smelter HRD department plays a great role in resolution of conflicts. So
as the states plays a crucial role in setting hierarchy with assumption of
responsibility.
No. of Strikes at NALCO (Smelter Plant) from 1995 – 2007
Year No. of Strikes
by Regular
Employees
No. of
mandays lost
No. of Strike
by Contract
Labour
No. of
mandays lost
1995-96 01 2075 02 10314
1996-97 01 897 06 326
1997-98 01 190 03 10462
1998-99 04 713 03 5428

1999-2000 - - 01 6083
2000-01 - - 01 22530
2001-02 - - - -
2002-03 01* 4558 01* 4492
2003-04 02* 4967 03* 8334
2004-05 - - 01 8460
2005-06 - - - -
2006-07 03* 5714 01* 9291
2007-08 - - - 1536
2008-09 - 7.5 - 5200
* The strike was due to proposed disinvestment of NALCO.
This Table shows that the employees are very much aware of company profit
figure. So the no. of strikes and lockout at Nalco Smelter is very less. However
some strike occurred in Smelter due to disinvestment of NALCO.
COLLECTIVE BARGAINING IN NALCO
NALCO (smelter) has always encouraged collective bargaining between the
employees and the management. The subject matter of bi- partite discussions
has been classified into the following three forums so that there is clarity of issues
while proposing the items for discussion in each forum/ level. Classification of
subjects of the bi- partite participation.
I. Area of Unit Level Bi- partite forum
(a) Safety and house keeping
(b)Canteens at the plant level
(c) Employees welfare/ recreation
(d)Employees group grievance at plant level

(e) Township & environment
(f) Employees suggestions
(g)House allotment
(h)Liveries to employees
(i) Employees' co-operative credit on thrift society.
II. Corporate / Apex Bi-partite forum
(a) Methods of working and measure for improving production/productivity.
(b) Suggestions regarding improvement in environment & plant conditions.
(c) Waste prevention
(d) Up keep of tools & equipment
(e) Adoption of sound safety practices.
(f) Reduction in expenditure by cost control.
(g) Constructive utilization of leisure by encouraging employees’ sports, games,
cultural activities & other productive hobbies.
(h) Improvement in the quality of work life.
(I) Welfare amenities
(j) Family welfare & benefit schemes
(k) Annual productivity bonus
(l) Technical improvements
(m) Rural development society.
(n) Medical facilities
(o) Suggestions for skill development & employees development activities.
(p) Implementation & follow up of the accepted suggestions or decisions of the
unit/department/apex joint consultative council.
(q) Suggestions on bi. - Parties & employees involvement.

III. Joint wage Negotiating Committee
(a) Rates of wages including D.A.
(b) Pay revisions, benefits, fixation in the revised scales & related issues.
(c) Leave & leave encashment, earned leave, casual leave, sick leave etc.
(d) Other allowances like house rent allotment, city compensatory allowance,
project, Tiffin, washing, night shift allowance, transport subsidy, LTC,
reimbursement, education expenses, any other related issues.
(e) Advances- conveyance advance, special advance.
(f) Operation of pay scales- conditions for period and commitment to industrial
peace.
Details of settlements in operation:
Name of
Agreement
Settlement
Reached On
Period of Operation Remarks
4th
Long Term
Wage Settlement
05.09.2001 01.01.1997 to
31.121.2008
Due to be
revised w.e.f.
1.1.2007
Canteen Subsidy
Reimbursement
04.01.2008 01.04.2007 to
31.03.2011
Productivity
Linked Incentive
Scheme
02.03.2007 01.04.2006 to 31.03.2010
Leave Agreement 29.11.2004 Effective from the
calendar year 2003 Unit it
is terminated by either
party by one month’s
notice
Collective Bargaining

Collective bargaining in NALCO is the responsibility of HRD department, who in
turn formulate personal policies for all units of the organization. Some minor
decisions are taken at unit head level and some policy decisions are taken at
corporate level. In NALCO the scheme of collective bargaining for statement of
dispute is very much effective, but till then management tries to resolve the
dispute s before going to negotiating table through informal discussion with the
union separately.
WORKERS PARTICIPATION MANAGEMENT IN NALCO
In NALCO it is viewed that there are various committees which share their views
and opinions with the management. This participation increases the scope for
employees in decision making at different tires of organizational.
Structure of WPM
 Shop floor level
 Unit Level
 Apex level
Forms of WPM in Smelter Plant
 Safety Committee
 Canteen Committee
 Welfare Committee
 Grievance Committee
 Shop Councils

Safety Committee
Composition: 8 representatives each from workers & management along with
chairman and convener.
Tenure: 2 years (No time period in statute)
Function: The committee closely observe & advise on safety, accident prevention
and house keeping.
Frequency of meetings: Once in a month.
Canteen Committee
Composition: 4 representatives of management & 8 representatives from
workers.
Tenure: 2 years as per statute.
Function: The committee closely monitors on canteen facilities, cleanliness, cost &
quality of food materials and render necessary action for improvement.
Welfare Committee
Composition: 4 members from management & 8 members from workmen.
Tenure: Continue till reconstitution.
Function: The committee closely observe different welfare facilities extended in
the plant & suggest measures for improvement.
Grievance Committee
Composition: 4 members each from management & workmen.

Tenure: 1 year.
Function: The committee looks after the prompt redressed of employees’
grievance.
Frequency of meetings: Once in a fortnight or earliest as per requirement.
Shop Councils
No of Shop councils: 31
Composition: The number of members of management & workmen of different
Shop Councils varies from department to department.
Function: The Shop Councils closely observe production, productivity,
improvement in working condition & method of working, prevention of wastage,
cost control, pollution control, encouraging employees for useful suggestions etc.
Barriers to WPM
 Employers do not feel that workers are competent enough to take
decisions.
 Workers’ representatives have to perform dual role of workers’ spokesman
& co-managers. Very few of them are competent enough to assume the
two incompatible roles.
 Trade union leaders who represent workers are also active members of
political parties. They give priority to political interests rather than the
interest of workers.
Measures for Making WPM more successful
 Employers and workers should agree on the objectives of the industry. They
should recognize and respect the rights &obligations of each other.

 A true spirit of mutual cooperation and commitment to participation must
be developed on the part of both management & labour.
 Workers and their representatives should be provided education and
training in the philosophy & process of participative management.
COMMITTEES
Sl No. Name of the
committee
Date of
re-
constitution
Tenure Number of Representatives
Management
s
Employees'
Statutory
01 Safety
Committee 06
workmen rep as
per statute)
03.05.08 One Year
(continue
till re-
constant)
08
(Excluding
Chairman &
convener)
08
02
Canteen
Managing
Committee
(01 for every
1000 employees
subject to
minimum of 2
25.02.06 Two Years
(continue
till re-
cousin)
04
(Excluding
Convener)
08
Non-Statutory
01 Grievance
Committee
(2 workmen rep.
and 2 alternative
25.02.06 One Year
(continue
till re-
constant)
04
04
(Alt. members)

02 Welfare
Committee (No
guidelines)
01.06,05 Continue
till re-
constant
05 08
03 House Allotment
Advisory
Committee
29.01.09 -do- 03 02(NOA)-B
03(NES)-A&B
03(NNEU)-A&B
01 Shop Floor
Committee at
Unit level
09 09
02 Unit level
Committee
03 Apex Level
Committee
SHOP FLOOR MEETINGS
Sl.
No.
Name of the SFC
No. of meetings
2006-07 2007-08 2008-09
01 220KV SUB-STATION 04 04 03
02 BAKE OVEN 09 08 05
03 BAKE OVEN (MEHC) – Roding,
butt/bath
01 04 03
04. C.R.S. 03 04 03
05 CARBON AREA (ELECT.) 04 02 03
06 CARBON AREA (MECH)-B Nil 03 05
07 CAST HOUSE (MEHC)- B 01 03 03
08 CAST HOUSE (MECHNICAL) 10 10 03

09 CAST HOUSE (OPERATION) 03 05 03
10 DESPATCH 06 11 04
11 ELECTRICAL REPAIR SHOP 03 05 03
12 ELECTRICAL REPAIR SHOP 04 05 02
13 GAP (Mech.) & PRS (Mach) 04 05 02
14 HOSPITAL NIL 01 02
15 INSTRUMENTATION 09 08 05
16 LABORATORY 07 04 06
17 MOBILE EQUIPMENT SHOP 02 04 04
18 POTLINE SERVICES (LPC, FTP &
Transport)
05 07 04
19 POTLINE (Electrical) 06 04 02
20 POTLINE-I 07 09 05
21 POTLINE-II 07 09 06
22 POTLINE-III 07 09 05
23 POTLINE (MECHANICAL) 10 08 06
24 PROCESS CONTORL 05 07 03
25 REFRACTORIES NIL NIL 02
26 RODDING SHOP-1 (Porn) / Rod. Shop-
II (O)
09 11 06
27 ROLLING PLANT 04 06 03
28 STRIP CASTING PLANT 01 02 01
29 UTILITY 02 03 03
Total 132 162 108
Grievance Procedure
This Company continuously strives to create and sustain a grievance free climate
in the organization. Yet when any act of omission and commission causes a
grievance, readily accessible machinery is available for prompt redressed of the
same.

For Non-Executive Employees
An aggrieved employee in the first place should present his grievance verbally to
his immediate superior, who in turn would try to resolve the matter within three
days.
If not satisfied, the employee may submit his grievance in writing in the
prescribed form to the head of the department within 60 days from the
occurrence of the cause of the grievance. The head of the department will give a
formal reply within 7 days of the receipt of the grievance, and if required the HOD
may also give a personal hearing to the aggrieved employee.
If the employee is not satisfied with the reply or does not receive a reply
within the stipulated period, he may take the matter to the Grievance Committee
through its Secretary. The Grievance Committee comprising the Management.
Union and HRD Department Representatives must give their decision on the
grievance within 30 days of the receipt of the grievance. If necessary the
concerned employee may appear before the Grievance Committee in person. He
may also be allowed to be assisted by a co-employee in presenting his case to the
Committee.
For Executive Employees
Executives’ upto and including E4 level can invoke the formal grievance procedure
for redressed of individual grievances. Executives in E5 and above levels should
approach the Head of the Unit for resolving the grievance.
The procedure requires the aggrieved executive to take up the matter first of all
with the concerned Head of the Department.
If not satisfied with the reply of the HOD, he may submit his grievance formally in
writing to the GM/Head of Unit within 30 days from the occurrence of the case of
grievance.

The GM/Head of the Unit will communicate the decision to the aggrieved
executive within 15 days, if required he may give a personal hearing to the
executive before disposing of the grievance.
If the executive is still not satisfied, he may appeal to the Managing Director in
writing. The decision of the Managing Director will be communicated to the
aggrieved executive within 30 days. General issues involving scale of pay,
allowances, benefits, promotion policy and matters relating to disciplinary
actions, vigilance and security are beyond the scope of the Grievance Procedure.
GRIEVANCE HANDLING
This procedure is the most important means available for employees to express
their dissatisfaction and also a means available to management keeping a check
of relevant diagnostic data on the state of organization health. NALCO
continuously strives to create and sustain a grievance free climate in the
organization for which it has a joint grievance committee, comprising the
management, union & HRD department representatives. It has its own
procedures in expressing and handling grievance of executives as well as its non-
executives.
CONDUCT & DISCIPLINE
Conduct
Your conduct constitutes the image of your Company. You know, how best, you
are living upto this truth as a member of the organization.
Conduct is a dynamic concept. Its examples can be exhaustive. What have been
enumerated below are only illustrative few:

(a) You shall at all times maintain absolute integrity and devotion to duty and
also ensure these two valuable qualities in the employees working under
your supervision, control and authority.
(b) You shall not use your position directly or indirectly to secure undue
benefits such as employment or business contracts for any member of your
family in your organization or in an organization having dealings with your
organization.
(c) You shall not take part in politics or assist any political movement or
activity.
(d) You shall not participate in demonstrations.
(e) You shall not participate in Radio/TV programmes or contribute articles on
a subject which may have an adverse bearing on the affairs of your
Company.
(f) You shall not give evidence without permission of the authority and while
deposing evidence; you shall not criticize your Company or the
Government.
(g) You shall not accept gifts directly or indirectly.
(h) You shall not give or take dowry.
(I) you shall not communicate any official document or information to any
person to whom you are not authorized to communicate such document or
information.
(j) You shall not engage without the previous sanction of the authority in any
trade or business or undertake any other employment.
(k) You shall not borrow money from or lend money to any persons with whom
you have official dealings.
(l) You shall avoid habitual indebtedness.
m) You shall not bring any outside influence to further your interests in respect
of matters pertaining to your service in the Company.
(n) You shall not contract another marriage while your wife or husband is still
living.
All executives are required to furnish details of immovable, movable and valuable
properties in the prescribed format at the time of joining and thereafter in each
calendar year. If the total transaction in shares, securities, debentures, mutual
funds scheme etc. exceed Rs.25, 000/- during the calendar year, the employee
shall, immediately intimate the competent authority about such transactions

Misconduct
The term misconduct does connote a vast number of actions. But without
prejudice to its general meaning, the following illustrate some:
(a) Habitual late attendance or irregular attendance or wilful absence.
(b) Neglect of duty, including malingering or slowing down work.
(c) Drunkenness, riotous and indecent behaviour.
(d) Gambling within the premises of the establishment.
(e) Acceptance of gifts, lending and borrowing money.
(f) Giving false particulars for the purpose of employment.
(g) Wilful insubordination and disobedience of lawful order.
(h) Taking or giving bribes or any illegal gratification.
(I) Damage to the property of the Company.
(j) Commission of any act which amounts to a criminal offence involving moral
turpitude.
(k) Breach of any law relating to works and other rules or orders of the
Company.
(l) Abetment of or attempt at an act of misconduct.
(m) Collection without permission of the authority of any money except as
sanctioned by any law of the land.
(n) Theft, fraud or dishonesty in connection with the business or property of
the Company.
(o) Possession of pecuniary resources or property disproportionate to the
known sources of income.
(p) Commission of any act amounting to sexual harassment of a woman and/
or women.
Disciplinary Procedure
In the interest of justice and equity, there are established procedures to check the
growth of indiscipline, misconduct and subversive actions in your Company.
Conduct, Discipline & Appeal Rules of the Company deal with the disciplinary
procedure in respect of the executives.
Non-executive employees are guided in the matters by the certified Standing
Orders. The penalties that can be imposed on an employee for an act of
misconduct may be, minor or major.

Executive Non-Executive
Minor penalties Minor penalties
a. Censure a. Censure
B. Withholding of increments of pay
with or without cumulative effect.
b. Fine
c. Withholding of promotion C. Suspension without salary for a
period not exceeding 4 days.
D. Recovery from pay or such other
dues, the whole or part of any
pecuniary loss caused to the
company by negligence or breach
of orders.
E. Reduction to the lower stage in
the time scale of pay for a period
not exceeding 3 years, without
cumulative effect.
Major penalties Major penalties
A. Reduction to a lower grade or post
or a lower stage in the time scale
of pay for a specific period.
a. Suspension without salary for a
period not exceeding 10 days.
B. Removal from service. b. Stoppage of increment with or
without cumulative effect.
C. Dismissal which disqualifies future
employment.
c. Reduction to a lower grade or post
or a lower stage in the time scale.
d. Discharge from service.
e. Dismissal from services which
disqualifies future employment.

Disciplinary Authorities
Sl.
No
Categories of
Employees
Appointing
authority
Disciplinary Authority Appellate Authority Reviewing
AuthorityFor major
penalties
For minor
penalties
For major
penalties
For minor
penalties
1 W1 & W2 Chief Mgr. Chief Mgr. Dy.Manager DGM Sr.Mgr. GM
2 W3, W4, W5
T0, T1, T2, T3
P0, P1, P2, P3
M0,M1,M2,M3
S0
DGM DGM Mgr. GM Chief mgr. Functional
Director
3 T4, T5, T6, T7,
P4, P5, P6, P7,
M4,M5,M6,M7,
S1, S2, S3, S4
GM/DGM CM/DGM Sr.Mgr. Functional
director
DGM CMD
4 E0, E1, E2 Functional
Director
Functional
Director
DGM CMD Functional
Director
Board
5 E3 & E4 Functional
Director
Functional
Director
GM CMD Functional
Director
Board
6 E5 & E6 CMD CMD Functional
Director
Board CMD Board
7 E7 CMD CMD Functional
Director
Board CMD Board
8 E8 Board CMD CMD Board Board Board
Disciplinary Actions
(2008-09)
Sl.
No.
Type of
cases
Pending
in the
beginning
Initiated
during
the year
Disposed Exonerated Pending
on 31st
March
Penalty
imposed

of the
year
Major Minor 2008
1 Absenteeism 04 02 02 - - 03
2. Other 01 04 01 - - 05
Disciplinary Action
This is very essential for a healthy industrial atmosphere & for the achievement of
organizational goals. Regarding the awareness of discipline the non-executives are
guided by the standing order. The entire procedure for charge sheeting holding
enquiry and disciplinary action are taken place under the guidance and by the
HRD department. An executive from HRD department acts as an enquiring officer
in each case of settlement machinery for prevention of industrial conflict and
establishing harmonious industrial relations. In case of failure on part of HRD
department the state plays a role of a third party in resolution of conflict.
CONTRACT LABOUR MANAGEMENT at Nalco
Contract Labour means a person who under takes to produce a work or
given result for the establishment other than a mere supply of goods or article of
manufacture to such establishment is called as contract labour that are recruited
by a contractor.
Contract labour may be called casual labours that are coming to do his work
some specified period in a calendar year. There are mere companies now a day
who prefer contract labour. It becomes cheap & less cost for the organization.
Most probable the contract labour are recruited from the local area for which
they will be satisfied if less amount of money will be paid to them. Now a day all
organization is interested to invest contract labours for the specified project
work. In Nalco, the HRD department deal with contract labours but there are less
permanent labourers. More than 3500 contractor labours are working now in
various units of smelter plant. Not the workers but the diploma holder engineers,
ITI trainees & fitters, operators are in some of little amount also working in

contract basis. The contractors have to get recognition & license to work in the
organization according to the statuary rules & regulations of the organizations.
Each month a bill amount us being paid to the contractors & he will pay to
the labours. From the billing amount the manager deals with contractor will
deduct 10% of billing amount as the security of his responsibility for the
employees. The contractor will not pay the employees in any month if any fraud
us found out, then manager will be responsible for it and the payment will
recover after real procedure is being done.
No. of contractors and contract labour working in smelter plant as on 31.03.2009.
Category From Angul /
DKL District
From the district
of Orissa
From other
state
Total
Contract
labour
3008 890 32 3930
Contractor 65 39 16 120
Sl.
No
Category Minimum rates of wages payable inclusive of wages for
the weekly off ,Vda & canteen subsidy.
Minimum wage
rate(inclusive of wages
for weekly off and Vda
in Rs)
Additional
element
in Rs.
Canteen
subsidy
in Rs.
Total in
Rs.
1 Unskilled 84.00 20.00 4.00 108.00
2 Semi skilled 99.00 20.00 4.00 123.00
3 Skilled/Clerical 125.00 20.00 4.00 149.00
4 Highly Skilled 146.00 20.00 4.00 170.00

CONTRACT LABOUR ESTABLISHMENT
As on 31st
March
No. of
Contractors
Skilled
/Highly
Skilled
Unskilled /
Semiskilled
2006 115 695 2705
2007 120 733 2952
2008 124 758 3058
2009 120 775 3155
Deployment of Contract Labour
695
2705
733
2952
758
3058
775
3155
2006 2007 2008 2009
Skilled /Highly Skilled Unskilled / Semiskilled
Independent ESI & PF codes of Contractors (O&M Group)

10 15
28
40
75
95
24
71
75
75
114
113
2004 2005 2006 2007 2008 2009
Contractors having Ind. PF code
Contractors having Ind. ESI code
Status of ESI Demand Cases
(Smelter & Smelter Expansion Project)
As on 31st
March of
2008 2009
Total no. of notice
received
77 (69 Smelter + 8
Project)
88 (80 smelter + 8
Project)
Total amount assessed Rs.1,05,94,508 Rs.1,09,53,142
SETTLEMENTS
No. of cases settled 46 (43 Smelter + 3
Project)
55 (54 Smelter + 3
Project)
Amount assessed in the
above cases
Rs.44,62,303 Rs.45,15,738
Amount settled as Rs.3,62,123 Rs.4,15,558
Net Saving Rs.41,00,180 Rs.44,05, 369
Minimum Wages Rate of Un-Skilled Contract Labour:

Minimum wage rate for cotnract labour
39 42
54
60 61
67 70 71
77
83
91
99 102
0
20
40
60
80
100
120
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Minimum wage rate for cotnract labour
Advantages of Contract Labour
 No need of direct supervision by the principal employer.
 Speedy completion of the assigned work according to the specifications.
 Comparatively cheaper with lesser liability for supervision and control.
 Lesser industrial unrest in respect of such contract labour.
Why NALCO needs contract labour?
 Construction, addition/modification to the structures of the factory or
establishment.
 Different types of maintenance works.
 Sweeping, scavenging, horticulture, loading, unloading, security services
etc.
 Project works requiring construction, erection works etc.
Contract Labour (R&A) Act, 1970
 Object of the Act: To regulate the employment of contract labour in certain
establishments and to provide for its abolition in certain circumstances and
matters connected there with.

Industrial Relation Scenario at Nalco

Industrial Relation Scenario at Nalco

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