Business Studies, asked by sangitasingh9646, 5 months ago

A multinational company specialised in food processing has been operating in India for about three decades. The company has recently decided to expand its production. It was decided to shift the factory to a new location about 20 kilometres away from its present site. As the workers transferred to the new site were living in town the union demanded an increase of rupees 2000 per month in the salary but the company offered to give rupees 1000 only to cover the transport cost.
When the plant was being shifted to the new site, negotiations went on an uninterrupted between the management and the union on this issue. However both the parties could not come to a settlement even after 6 months.
The management was firm on their decision even though the union indicated some flexibility. The union refused to compromise fully on the issue. They adopted go-slow tactics to pressurize the management. The production went down drastically but still the management was firm on their stand. In the meanwhile the management charge sheeted some of the trade union leaders and suspended them pending enquiry.

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