- 9 Marks
BMIS – L1 – E17 – HR – Other human resources functions
Question
Apex Mining Corporation Limited owns and operates integrated facilities of mining of coal and iron ore along with power generation and distribution facilities. Although these facilities have been developed at a substantial investment cost, the management has been indifferent to the conditions of its workforce of 1,200 employees.
A major accident in the coal mines, which occurred recently, resulting in the death of 110 workers, has triggered wide-spread resentment and agitation among the workers due to the poor safety conditions and they have demanded strict compliance with the Mine Safety Rules and Regulations. Due to the aggressive attitude of the striking workers and to safeguard its assets, the Company has deployed private armed guards at a considerable cost.
After 28 days of complete closure of all mining and other business activities due to stand-off and strikes, the management and the Workers’ Union have agreed to enter into negotiations through a process of collective bargaining.
Required:
(a) State four factors which, in your opinion, are responsible for the indifferent attitude of the management of Apex Mining Corporation Limited towards its workers.
(b) Briefly describe five different measures that the management should take to satisfy the demands of the workers and help to achieve a conducive working environment.
Answer
(a). The indifferent attitude of management of Apex Mining Corporation Limited towards the workers may be attributed to:
(i) Abundance of workers seeking jobs and comparatively few opportunities for employment in the area.
(ii) Unsatisfactory enforcement of Mining Rules and Regulations by the concerned regulatory authority.
(iii) The Management does not believe in ethics, justice and fair play in its dealings with the workers.
(iv) The Workers and their Union is not fully aware of the rights of the workers and their bargaining strength.
(b). The management of Apex Mining Corporation Limited should take the following measures to satisfy the demands of the striking workers:
(i) Compensation for the affected workers: Management should pay compensation to the dependents of the workers who have lost their lives in the accident. Proper arrangements should be made for treatment, including hospitalization, of workers who have been injured in the accident.
(ii) Safety equipment: Management should install proper safety equipment in the mines and protective personal gear for ensuring safe working conditions in the mines.
(iii) Formal safety training of the workers: Management should introduce Safety Training Programs and educate the workers of the positive results achieved through the introduction and implementation of these programs.
(iv) Provide medical facilities to the workers: Management should provide adequate medical facilities, including hospitalization for the workers and their families.
(v) Group life insurance: Management should provide Group Life Insurance coverage for the workers.
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