Grievance Handling Guide

WHAT IS A GRIEVANCE?

1. VIOLATION OF THE CONTRACT

Contract violations involve such matters as seniority, hours of work, staffing, wages, working
conditions, holidays and vacations - matters specifically covered in the contract.

2. VIOLATION OF PAST PRACTICE

The contract does not cover every practice on the job. Some have been established and
recognized by both the management and the union, and may be written or unwritten.

3. VIOLATION OF FAIR TREATMENT

If one employee is discriminated against or mistreated.

4. VIOLATION OF FEDERAL AND/OR STATE LAW

Laws written to protect workers are implicitly part of the contract and a violation of such a law can
constitute a grievance.

5. VIOLATION OF MANAGEMENT’S RULES

If management sets forth rules and sets policies, it may be a grievance if it violates these rules.

GETTING THE FACTS: REMEMBER THE 5 W’S

1. WHO… is involved?

Name(s),of the grievant, department, shift, job classification, seniority, etc.

Are they on probation?
Have they been disciplined before?
Has a similar grievance been filed on the same issue?
Who is the supervisor?
Who are the witnesses?

2. WHEN… did the incident or condition occur?

Give dates and times as accurately as possible.

3. WHERE… did the grievance take place?

Give the exact location, department, area, etc.

4. WHAT…

Is the grievant story?

Is management's position?

Are the reports of witnesses?

Are there any records that help support your case?

5. WHY

Is this a grievance?

Has the contract been violated? (What about violations of past practice or the law?)

6. HOW

Should the grievance be settled? (What adjustments are necessary to correct the injustice?)

10 POINTS ON WRITING A GRIEVANCE

1. LIMIT DETAILS TO BASIC INFORMATION

Provide only enough information to identify the grievance so that management can respond.

(1) What is the problem?

(2) What violations have occurred?

(3) How the Monday, July 02, 2007Monday, July 02, 2007 problem should be fixed (remedy)

2. OMIT UNION'S ARGUMENTS, EVIDENCE AND JUSTIFICATION

Arguments, evidence and justification for the grievance should be used in oral arguments with
management. However, you should jot these facts down before you argue the case with
management.

3. DON'T LIMIT CONTRACT VIOLATIONS

Use the phrase "violates the contract" and the words "including but not limited to Article...". If
these terms are used, you are not limiting yourself to one specific article; additional article can be
added later.
4. AVOID PERSONAL REMARKS

The grievance states the union's position, not the grievant's opinion. Avoid the use of the terms "I
think" or opinions of management officials.

5. DON'T LIMIT THE REMEDY

Use the general phrase "to be made whole in every way". If you limit the remedy you don't allow
the union room to bargain on the grievance; or an item might be unintentionally left out - you may
not be able to add it in at a later time.

Example:

The union requests that the grievant, Billy Brown be recalled to his job classification with full back
pay for all wages and benefits lost.

Wrong!

The union requests that the grievant, Billy Brown be made whole in every way, including recall to
his job classification with full back pay for wages and benefits lost.

Right

By including the term "made whole in every way", the grievant should receive any and all losses
due to management's improper action.

Count such matters as time, expenses, and other considerations.

This could include wages, seniority, insurance benefits, vacation accruals, etc.

However, even though the term "made whole in every way" is added, the union must advise
either the management official or the arbitrator as to the specific benefits requested.

6. CONSULT WITH THE GRIEVANT

Go over the written grievance. Explain the requested remedy and obtain the grievant's full
understanding.

7. SOLIDARITY

Explain the grievance to your members. Be sure they understand and support your efforts.

8. KEEP GRIEVANT UP TO DATE

Let the grievant know the status of the grievance - keep him or her advised of the stage it is at
during the steps of the grievance and arbitration procedure.

9. ARBITRATION
Prepare each case on the assumption that it may go to arbitration. Most cases are lost or won
based upon the early investigation of the grievance.

10. MAINTAIN A GRIEVANCE CASE FILE

Keep names, dates, memos that relate to the grievance. Other stewards may eventually get
involved

in the case - keep it well organized.

GRIEVANCE PROCEDURE TIME LIMITS

STEP A Informal:

Must be discussed with the grievant’s immediate supervisor within 14 days of the occurrence or
when the grievant or the Union may reasonably have been expected to have learned of the
occurrence.

Verification of a STEP A Informal Decision Date: At the conclusion of the STEP A Informal
meeting the Union should request the supervisor to initial the STEP A Formal Grievance Form to
verify the date of the Step A Informal decision.

STEP A Formal:

The STEP A Formal Grievance Meeting must be held with the installation head or designee within
7 days of the STEP A Informal decision.

The STEP A Formal Grievance Form must be completed within 7 days of the STEP A Formal
Grievance Meeting.

STEP B APPEAL:

Must be appealed in writing to STEP B representative’s office and include the entire grievance
file.

THE UNION MUST ADHERE STRICTLY TO THESE TIME LIMITS:

Failure to appeal within the time limits is considered a waiver of the grievance if the Postal
Service raises the issue of timeliness. In such cases, NALC will not be able to successfully obtain
arbitration of the grievance on its merits. HOWEVER , NALC representatives should note that if
Postal Service fails to schedule a meeting or render a decision within the time limits prescribed in
Article XV, this failure shall automatically move the grievance to the next step of the grievance-
arbitration procedure.
 DEVELOPING INFORMATION IN INVESTIGATORY GRIEVANCES

SOURCES OF INFORMATION

1. RECORDS

Personnel File

Production Records

Performance Records

Grievance Records

Safety Records

Medical Records

2. SPECIAL REPORTS

Such as: Supervisory

Medical

3. INTERVIEWS - In-House

Management

Union

Neutral

4. INTERVIEWS - External

Community - Such as: Local stores receiving stolen goods

5. POLYMORPHICS

6. POLICE

7. EMPLOYEE INFORMANTS

8. LOCUS OF INVESTIGATION

Example: Photo of location of alleged incident

9. PHYSICAL EVIDENCE

PROCEDURES FOR USE OF SOURCES

Non-evaluative gathering of facts.

Determine possible witnesses.

Decide on order of interviews

Conduct interviews promptly

Examine reports

Examine records

Develop possible theories of case

Test for missing links

Develop working hypothesis

At all stages keep careful and complete notes

Decide on action now to be taken such as formulate charge; hold up; drop entirely

PROOF
Evidence is used to establish proof of a fact in the mind of the arbitrator. The degree of proof
required depends on the nature of the case and must simply satisfy the arbitrator. There are three
degrees of proof used by arbitrators in making decisions:

(1) Proof beyond a reasonable doubt - the strictest degree

(2) Clear and convincing proof - the moderate degree

(3) "A preponderance of evidence - the minimum degree

A greater degree of proof will be required for cases determining more critical issues for the
individual, the labor/management relationship, and the law. Generally, arbitrators look for clear
and convincing proof in the majority of cases.

BURDEN OF PROOF

One party has the obligation to establish through evidence the issue to be proven. This burden of
proof consists of two elements:

(1) The burden of producing evidence

(2) The burden of persuading the arbitrator of the issue in dispute

The burden of proof depends on the nature of the case. Generally, in non-disciplinary hearings,
the grieving party, which is usually the union, bears the initial burden. In disciplinary cases, it is
usually the employer who has the burden of proving just cause. The burden of proof may also
shift. In arbitration, the concept of burden of proof may be applied according to the particular
arbitrator who may or may not find it useful to decision making.

PREPARATION OF THE WITNESSES

ENCOURAGE THE WITNESS TO:

Tell the truth

Listen very carefully to the questions that are asked and to answer only the question asked in the
most direct and simplest way possible.

Answer "I don't recall" if he or she does not remember

Answer "I don't know" if he or she does not know an answer

Ask for the question to be explained or restated if he or she does

not understand the question

Answer only "Yes" or "No" in response to questions from

opposing counsel on cross-examination

Maintain a calm and dignified demeanor while testifying so as to

enhance his or her credibility

Dress neatly.

DISCOURAGE A WITNESS FROM:

Arguing with opposing counsel during cross-examination (explain

that it is your job to argue)

Making "wise guy" or sarcastic remarks or otherwise trying to

"make points" on cross-examination (explain that such conduct
diminishes credibility)

Offering explanations or attempting to rephrase the question and

answer volunteering information that is not specifically asked
 TESTS FOR JUST CAUSE

There are seven (7) specific questions that must be answered in an arbitrator's mind to establish
that a suspension or discharge was for "just cause." A positive "no" answer to one or more of the
questions would indicate that "just cause" did not exist.

1. Did the organization give to the employee forewarning or knowledge of the possible or
probable disciplinary consequences of the employee's conduct? In other words, were there some
kind of written (or oral) instructions governing the situation the employee is being disciplined for.
This could be a notice posted on a bulletin board or found in an order book. The important thing is
that it must be proven that there was actual written or oral communication of these rules before
the incident occurred.

2. Was the rule or managerial order reasonably related to the orderly, efficient and safe operation
of the organization’s business? Even if he/she believes it's unreasonable, the employee must
obey the order. The employee can later file a grievance.

3. Did the organization, before administering discipline to an employee, make an effort to discover
whether the employee did, in fact, violate or disobey a rule or order? The employee has a right to
know what he/she is being disciplined for. The investigation should be made before disciplinary
action is taken. In too many cases, the action is taken without proper investigation.

4. Did the organization conduct the investigation fairly and objectively? (No comment needed.)

5. At the investigation, was there substantial evidence that the employee was guilty as charged?

6. Has the organization applied its rules, orders, and penalties evenhandedly and without
discrimination to all employees? Have other employees been guilty of the same infraction of rules
and not received a disciplinary action?

7. Was the degree of discipline administered by the organization in a particular case reasonably
related to (a) the seriousness of the employee's proven offense,and (b) the record of the
employee in his/her service with the organization? It would not be just to fire an employee for
being tardy twice over a six month period if he/she had an unblemished record for 15 years prior
to that. On the other hand, if the employee has a record of previous offenses, that record should
not be used to judge whether he/she is guilty of the latest offense.

Following the above will not guarantee a winner in all grievances, but it should enhance their
chances of being settled successfully.

STANDARDS DETERMINING PAST PRACTICES

It is difficult to identify any standards by which arbitrators determine if a practice exits and how
much weight it should be given insofar as their decision and award is concerned. However, there
are some very definite ingredients when the question of past practice is taken under
consideration by the arbitrator.
1. CONSISTENT - That is to say that the practice has been granted or applied consistently,
uniformly, regularly and without break.

2. CLEARLY STATED - This mean that the practice has been observed by the parties and is
followed without protest or objection from one party or the other.

3. DURATION - That is to say that it has existed and been followed over a reasonably long period
of time. In this regard a "bridge effect" may be of significance to some arbitrators. The bridge
effect results from a practice commencing under one agreement and continuing unchanged and
unprotested into a renewed agreement. As a result it bridges one collective bargaining agreement
with another between the parties without having been changed or discontinued.

4. JOINTLY ACCEPTED AND ACTED UPON - This means that both parties, through their line
representatives, have operated as though the practice in fact, existed and was a guiding rule.
This should indicate to the arbitrators that a practice exits that is agreeable to and accepted by
both parties.

One import factor that should be noted is that the frequency of the practice may not be as
important as the mutual observance. In other words, a practice which occurs only three times a
year and which, on each occasion, is consistently executed may have more weight on an
arbitrator's decision than another practice, which occurs 15 times a year but is not consistently
administered from one time to another.

Proof of past practice requires documentation and evidence. It is essential that when a past
practice exists and is grieved, all possible documentation and facts be submitted along with the
allegation of a violation of the past practice.

In order to be binding, past practice should have one or all of the aforementioned elements.

TYPES OF INFORMATION
DISCIPLINE

Letter of warning

7/D Suspension Notice

14/D Suspension Notice

Emergency Suspension Notice Removal Notice

Grievant and or Witness Statements

 Thank You

Swastik73:

In response to your inquiry re: grievance procedure/dispute resolution, I offer the

following:

"All disputes, complaints or grievances arising out of the terms and conditions of
employment, or recognized working procedures, or written, negotiated agreements
must be presented through this procedure. The employee(s) shall continue to work
as directed by management pending the final disposition of the issue."

"Prior to any formal grievance, the employee must discuss the issue with his/her
immediate supervisor within three (3) working days after the date of occurrence, or
three (3) working days after the date which the affected employee(s) could
reasonably been made aware of the issue giving rise to the dispute or complaint."

"If not resolved by the immediate supervisor within three (3) working days, the
employee(s) may submit a formal grievance, in writing, to Step 1 no later than three
(3) working days."

STEP !: A written grievance may be submitted by the grievant to the immediate

supervisor, as set forth above. The employee may request a union representative
accompany him/her to the discussion, which will be held as soon as practicable, but
not more than three (3) working days after the submission of the grievance. The
supervisor shall provide a written answer to the employee within three (3) working
days after the meeting. If the issue is not resolved, the employee(s) and/or Union
may appeal to Step 2, within three (3) working days.

STEP 2: A meeting between the employee, union representative, the Department

head and the supervisor shall be held upon receipt of the appeal, or within three (3)
working days thereof. The Department Head shall provide a written response to the
union representative within three (3) working days of the meeting. If no settlement
is reached, to be timely, the union must appeal to Step 3 within five (5) working
days.

STEP 3: A meeting between the General Manager, Department Head, Human

Resource Representative, the District Union Representative, and two (2) other local
Union officials (if a discipline case one [1] local union official may be displaced by the
grievant) shall be arranged within five (5) working days of receipt of the Union's
appeal from Step 2. The meeting date will be established as soon as possible, but no
later than twenty (20) working days from the receipt of the appeal, except where
circumstances warrant an extension. Such extension shall not extend for more than
five (5) working days.

The General Manager, or his designate shall render a decision, in writing, to the
District Union Representative no later than five (5) working days. If the matter is not
resolved, the Union may submit the matter to ARBITRATION within ten (10) working
days of receipt of Management's STEP 3 answer.

ARBITRATION: Each party shall submit a list of five (5) names to the other. From the
Ten (10) names presented, one (1) should be selected as the impartial arbitrator. If
no one is acceptable, the union shall submit three (3) names; the company shall
submit two (2) names resulting in a list of five (5) names. (In subsequent cases, the
arrangement will be reversed.) The party submitting the most names will be the first
to eliminate one name, the other party will follow and the sequence will continue
until only one name is left.

(In the US a list of qualified arbitrators may be obtained from the American
Arbitration Association [AAA], the Federal Medication and Conciliation Service
[FMCS], or the National Academy of Arbitrators [NAA]. Usually, they are attorneys or
professors who have developed a reputation as fair, impartial and unbiased.)

The parties agree that the sole remaining name shall be the arbitrator for this case
only. The parties further agree that the decision rendered will be final and binding on
all parties, i.e. Management, Union, grievant and employees. The expenses of the
arbitration, including the arbitrator's fee shall be [borne equally by the parties OR
paid by the losing party]

The arbitrator will have no authority to add to, delete from, or amend any
term/condition of employment, or recognized working procedures, or written,
negotiated agreements.

Post hearing briefs will not be filed unless requested by the arbitrator, or at the
request of either party.

The arbitrator's decision may be oral (bench decision) or written. If written, it shall
be delivered to the parties simultaneously no later than thirty (30) working days
form the close of the hearing.
Swastik73:
As an alternative to the Grievance Procedure I submitted, some Companies (usually
without unions) have established a "Peer Review" process.

Under this scheme, selected employees (usually 3) are teamed with selected
management (2) to hear employee complaints. At the end of the hearing the
"judges" vote by secret ballot ("complaint is upheld; complaint is denied"). Counting
of ballots is stopped when a majority is reached and all ballots are destroyed.

I say "selected" because a "pool" of employee and management personnel must be

established. From the workforce volunteers (employees and management) have the
opportunity to express their interest by "signing up". Candidates for training are
selected on the basis of their reputation - fair, objective, incorruptible, and open-
minded - and overall record.

The next step is to train the "selectees" as to the duty and scope of their
responsibility. To judge the case on the facts and evidence presented by both
sides;Not to be intimidated by management or coerced by employee(s); Be willing to
question witnesses, respectfully, to gain further insight and clarification of their
statements as well as to assess credibility; To render a fair decision, based solely on
"just cause" and not on personal or emotional considerations, and to recommend a
just penalty for the offender.

In the beginning, Management will have some doubts as to the overall impact of
such a Review procedure on its authority to "run the business". In some cases, an
argument directed at "empowerment of employees", "employees as strategic
business partners", or (in the US, usually involving discrimination cases) "a cheap
prelude to determining the overall case prior to litigation" is sufficient for
management to take a "try and see" appoach.

In other cases, Management has been so protective of their position so as to be

reluctant to release any power to the employees. In such cases a major "selling
effort" will be required to calm Management fears that the "wolves have taken over
the chicken house".

In either case, I would therefore recommend that initially "panels" be equally

represented (3 & 3). But as time goes on, and the Review system becomes more
accepted (the results will speak for themselves), management will recognize that
such a scheme is in the best interests of the Company as well as the employee, and
feel more comfortable with 3/2 panels.
SC:

Yes.

Persons with complaints, concerns, grievances want a swift review and resolution of
the problem by management. Such quick response is beneficial to the employee,
Management and the organization.

The employee because (s)he knows that the issue has been addressed in a timely,
fair and consistent manner, even though they may not like the resultant answer.

Management can concentrate fully on running the business without distractions.

The organization runs more efficiently since everyone knows that the issue has been
resolved, one way or the other, and the employees can apply their efforts to their
responsibilities.

The "3 Step" procedure encompasses a progressive face to face review of the issue
by sequentially higher levels of Management and Labor. The issues become clearer
as the parties move away from emotion and toward logic. (This is the method most
commonly used in the US.)

Of course, this presumes that the parties actually want to resolve the grievance in a
manner beneficial to both. If there is a hidden agenda, wherein one party seeks to
come out ahead, the issue usually finds its way to arbitration.

In the "Peer Review" procedure, generally reserved for more sophisticated

organizations, there is only one "step" involving employees and management who
have no direct interest in the dispute and who can review the issue and attendant
facts without bias.
SC:

Yes.

Persons with complaints, concerns, grievances want a swift review and resolution of
the problem by management. Such quick response is beneficial to the employee,
Management and the organization.

The employee because (s)he knows that the issue has been addressed in a timely,
fair and consistent manner, even though they may not like the resultant answer.

Management can concentrate fully on running the business without distractions.

The organization runs more efficiently since everyone knows that the issue has been
resolved, one way or the other, and the employees can apply their efforts to their
responsibilities.

The "3 Step" procedure encompasses a progressive face to face review of the issue
by sequentially higher levels of Management and Labor. The issues become clearer
as the parties move away from emotion and toward logic. (This is the method most
commonly used in the US.)

Of course, this presumes that the parties actually want to resolve the grievance in a
manner beneficial to both. If there is a hidden agenda, wherein one party seeks to
come out ahead, the issue usually finds its way to arbitration.

In the "Peer Review" procedure, generally reserved for more sophisticated

organizations, there is only one "step" involving employees and management who
have no direct interest in the dispute and who can review the issue and attendant
facts without bias.

Dear Swastik,

I don't have a readiy to use designed format for grievance handling however iam
posting a guideline for creating your own grievance handling policy. I hope this
would be of help to you.

Organisations need to have well-written grievance procedures in place that

encourage employees to raise their complaints without fear of reprisal. Further, they
need to ensure that when grievances are raised they are handled effectively and
sensitively. It should be realised that it takes some courage on part of the employees
to ‘raise their head above the parapet and make a compliant’. The reception that
employees receive when they have made a stand is crucial to the maintenance of a
healthy employment relationship and employee relations.

Employees become concerned or worried about all sorts of issues, some are work
related and others are of a more personal nature but may impact on their work
situation. Issues may concern individual workers or affect group of workers leading
to individual or collective grievances.

When employees voice these concerns to managers, in order to seek some sort of
redress, they are initially classified as complaints. Good day-to day management
should ensure that the majority of such matters are resolved quickly and to the
satisfaction of all parties. It is not, however, always possible to find quick and easy
solutions to employees complaints.

Iit is a good practice to separate grievance and disciplinary procedures, as their aims
are very different. Appeals against disciplinary decisions should be channelled
through the disciplinary appeals procedure, not the grievance procedure. Thet
decisions on the scope of grievance procedure need to be made at the design stage
and should depend on the size, nature and culture of the organization as well as how
sophisticated its existing procedures are.

It is obvious that fair and efficient handling of complaints and grievances in the
workplace can significantly contribute to good employee relation. This can be
achieved through good management practices but it is preferable to adopt a formal
written policy and procedure, to ensure consistency and a co-ordinated approach.
Another benefit is that should things go wrong, and a poorly handled grievance leads
to legal intervention the organisation will have a better defence if it can be shown
that a comprehensive grievance procedure was in place and was correctly utilised.

The existence of formal grievance procedures should encourage employees to raise

concerns without fear of reprisal, provide a fair and quick way of dealing with
complaints, prevent minor disagreements developing into more serious disputes and
help to build an organisational climate based on openness and trust.

It is important that a grievance procedure should not be tokenist in nature. It is

crucial as to how the grievance procedure is perceived and applied for it to be
successful. It is vitally important for the procedure to have credibility. All parties
need to be satisfied that it is both fair in conception and application. It certainly
should not be seen as a device for simply going through the motions. If a grievance
is raised then it is crucial that all parties have a desire to ensure that there is a fair
hearing of the complaint and that, ultimately, justice is done.

A good practice dictates that procedure should be:

• set down in writing

• aimed at settling matters as closely as possible to the point of origin

• equitable in the way in which all workers are treated

• simple to understand

• rapid in their operation to ensure that grievances are processed in a timely

manner.

Further the procedure should ensure that, if a grievance is not settled at the informal
or the first formal stage, workers should have the right to have their grievances
heard at further levels, i.e. the right to appeal should be built into each stage.

The number of stages contained in the procedure will depend on the size and nature
of the organisation, the management structure and the availability of resources. In
the informal stage the grievance is discussed informally with the immediate
manager. If the matter is not resolved the grievance is taken to the next stage and
so on. In each stage a more senior manager handles the issue; the last stage being
handled by the managing director or his authorised deputy or by a grievance
committee.

A good grievance procedure should outline:

• how and with whom to raise the issue

• whom next to apply if not satisfied
• time limits to each stage
• the right to be represented

Further the grievance procedure should provide for proceedings and records to be
kept confidential. The organisation must keep accurate records detailing the nature
of the grievance, the management response and the reason behind it, as well as any
action taken. The managers handling the grievance should be open minded and
impartial in their thoughts and actions and should be trained in grievance handling.
It will be a good practice that another management representative who can act as a
witness and/or a note taker accompanies managers.

The grievance procedure should be made known to all workers either by providing
individual copies during induction or by providing access via the organisation’s
intranet site. The grievance procedure document should specify the scope and rule
out issues that are covered by other company procedures such as the disciplinary,
harassment, job evaluation appeal procedures etc. Further it would a good practice
to have a pro forma document for notification of formal grievance and a flow chart
showing how the procedure operates. Also, special allowances should be made for
individuals who are disabled and whose first language is not English.

Needless to say, the grievance procedures should adhere to the rules of natural
justice. It should be fair and seen to be fair. There should be full investigation by an
unbiased individual to establish the facts of the case. Employees who have raised a
grievance should not subsequently be disadvantaged in any way.

Regards,
Faizal Haque

RESOLVING DISPUTES AT WORK:

New procedures for discipline and grievances

A GUIDE FOR EMPLOYEES

This guide tells you about new rights and procedures you must follow if
you have a grievance in work are facing disciplinary action or dismissal.
It is not a legal document and for further advice see contacts on page 1.

INTRODUCTION - THE NEW DISPUTE RESOLUTION

REGULATIONS

On 1 October 2004 the Employment Act 2002 (Dispute Resolution)

Regulations 2004 (called ‘the Regulations’ in this guidance) come into
force giving new rights and responsibilities to both the employer and
employee.
All employers must now have minimum procedures for resolving
grievances, disciplinary action and dismissal. Many employers may
already have procedures in place that go further. In which case there
would be no need to take action other than to confirm compliance with
the new procedures.

When you start work with a new employer, he or she must give you,
within two months of the starting date, a written statement of
employment particulars, such as pay and hours, and this must include a
note of the employer’s disciplinary and grievance procedures. In
particular, the note must set out any disciplinary rules which apply to
employees and tell you to whom you should go if you have a grievance.
Under the new Regulations an employer and an employee must in certain
circumstances, by law, follow these minimum procedures.

How does this affect you?

If you do not follow them it could be serious.
Unless you have first put your grievance in writing – and allowed at least
28 days to pass - you will no longer, as a general rule, be able to make a
claim to an Employment Tribunal based on a grievance with your
employer or former employer (unless your grievance is about dismissal).
If the grievance, disciplinary or dismissal procedures have not been
followed before the case goes to a tribunal, the tribunal will decide
whether that is the fault of the employer or you. If it is you, any money
awarded will normally be decreased by at least 10% and possibly up to
50%. If it is the employer’s fault, any money awarded will normally be
increased in the same way.

These new minimum procedures apply only to employees but not to other
workers who supply services to employers, for instance freelancers or
subcontractors. This is an important and complex point. If you need help, or
advice on whether or not the procedures apply to you, you can contact your
trade union representative or local Citizens Advice Bureau
www.adviceguide.org.uk. You can also get advice from Acas: at
www.acas.org.uk or on their helpline 08457 47 47 47; or the TUC’s website
at www.worksmart.org.uk.

Key points
Your employer is • bound by law to have disciplinary, dismissal and
grievance procedures and to tell you what they are.
Before using these procedures you and your • employer should attempt to
sort problems out informally where possible.

GRIEVANCE PROCEDURE
You are now required to send your • employer a written statement of
your grievance. Your employer must then arrange a meeting to discuss
it, and then tell you the decision. You have a right to appeal against
that decision at a further meeting and you must appeal to complete
the procedure in the Regulations. If you disagree with what your
employer decides to do after the appeal meeting, you will need to
make a claim to an employment tribunal if you want to resolve the
matter by legal means.
As a general rule, you will not be able to • make a claim to an
employment tribunal based on a grievance unless you have put your
grievance to the employer in writing and then allowed 28 days to
pass. This rule does not apply if your grievance is about dismissal, or
about disciplinary action that you agree was taken against you on
conduct or capability grounds (unless you think the action involved
unlawful discrimination against you).

DISCIPLINARY ACTION AND DISMISSAL PROCEDURE

If your employer is contemplating taking disciplinary • action against
you on conduct or capability grounds, or dismissing you, the
responsibility lies with him or her to start a dismissal or disciplinary
procedure.
Your employer is required to send you a written • statement of his or
her reasons and to arrange a meeting to discuss it with you. If you
disagree with the decision he or she makes after that meeting, you
have a right to appeal, and your employer must arrange a further
meeting. You must appeal to complete the procedure in the
Regulations. If you disagree with what your employer decides to do
after the appeal meeting, you may decide to make a claim to an
employment tribunal. Before doing so you may wish to take further
advice, possibly from your union representative if you are a union
member or local CAB.

THE MEETINGS
You have a right to be • accompanied to any meetings to discuss your
grievance, and any meetings about dismissal or disciplinary action
which your employer intends to take against you. You may choose to
be accompanied by someone you work with or a trade union official.

GOING TO A TRIBUNAL
You can make a claim to an • employment tribunal by completing a
claim form, available from Jobcentres, Law Centres and Citizens
Advice Bureaux, or online at www.employmenttribunals.gov.uk. You
should note that you will generally need to do this within a specified
time limit, which can be as short as three months beginning with the
day your employment ended or when the matter you are complaining
about happened. However, in certain circumstances this time limit
will be extended if you complete the first step of the statutory
procedure.

CHAPTER 1 - HOW TO RAISE A GRIEVANCE

Grievance procedures
Grievance procedures are procedures which enable you to raise any
concerns you have about your job with management. These concerns
could be about the work itself, your working conditions or about the
people you work with. Your employer must, by law, tell you in writing
what procedures you should follow at your place of work if you want to
raise a grievance.

The first thing to do if you have concerns is raise the matter with the
person specified in the grievance procedures, usually your line manager.
If this is not possible, or if your problem is with that person, you should
go to the next most senior person. Try to get the problem resolved
informally at this stage.

Although these first discussions are informal, you may find it helpful to
keep a brief note of any discussions you had, noting the date and time,
whom you spoke to, and the main points covered. These will be useful if
the problem is not resolved at this stage and you have to go on to more
formal procedures.

You should begin a formal grievance procedure if your employer fails to

resolve the matter to your satisfaction. If you do not begin a formal
procedure, you will not be able to make a claim to an employment
tribunal that your employer has failed to honour your statutory
employment rights. (This does not apply, though, if your grievance
concerns dismissal, or disciplinary action short of dismissal that you agree
was taken on conduct or capability grounds. See Dismissal and
Disciplinary Procedures for more details.)
If you do have to take matters further, the grievance procedure has three
steps:

The written statement

You must set out your grievance in writing and send a copy to your
employer. If you have problems expressing yourself in writing you can
ask for help at a CAB or, if you are a union member, from a trade union
representative. An example of a written statement is on page 16.

The meeting
When your employer has read your written statement he or she must
invite you to a meeting to discuss your grievance. He or she can allow
himself or herself a little time to look into your complaint but should not
delay for an unreasonable amount of time.

You have a right to be accompanied to this meeting by someone who

works with you or by a trade union official. The meeting must be held at
a time and place that are reasonable for you and anyone accompanying
you. If either of or you is disabled, the employer must take all reasonable
steps to make sure that you have no problems getting to the meeting.
You should attend the meeting. If for some reason you, or the person
you have chosen to come with you, cannot get there for a reason which
you did not know about when the meeting was arranged, the employer
must arrange another meeting and you should attend it.

Prepare carefully for the meeting and discuss the matter fully with anyone
you have asked to accompany you. If there is anyone there you don’t
know, ask your employer to introduce them. Your employer should
explain how the meeting will be held, who will speak and when. Your
employer should give you an opportunity to set your case out calmly and
clearly, and, if appropriate, to explain what you have done to try to
resolve the problem informally. Be proactive. Use the opportunity to
make some suggestions as to how the problem might be resolved. This
will help you and your employer. Be concise. If you have any other
grievances, consider if you need to raise them separately.
After the meeting – not necessarily straight away – the employer must
tell you what he or she has decided. If you do not agree with his or her
decision, you have the right to appeal, and your employer should inform
you of this.

The Appeal
If you feel that your grievance has not been satisfactorily dealt with, you
should tell your employer that you are going to appeal. An example of an
appeal letter is on page 16. He or she must arrange a meeting to discuss
this. The same rules apply to this as to the original meeting. It must be
at a reasonable time and place and you have a right to be accompanied. If
you do not appeal, but go straight to an employment tribunal with your
complaint, any money you are awarded may be reduced by between 10%
and 50%.
After the appeal meeting, the employer must tell you what he or she has
decided. This is his or her final decision. If you are still not satisfied, and

you think that your employment rights have been infringed, you may have
to take the matter to an employment tribunal (see chapter 3). But
discuss it first with your trade union representative or local CAB.
Raising a grievance after you have left your job
If you leave a job but still have an outstanding grievance, you can pursue
it using a shorter, two step procedure, known as the modified procedure,
if:
You and your • employer agree in writing to use the modified
procedure; and
Your • employer did not know about the grievance or the procedure
was either not started or was started but not completed before you
left the employment.

The two steps are:

1 You send a written statement of grievance to your former employer
2 Your former employer writes back to you, answering the points
you have raised.
When you do not need to go through the procedures, or the procedures
do not apply
You have left the • employment before the grievance procedure has
commenced and it is not reasonably practicable for you to write a
written statement of grievance.
You have reasonable grounds for believing that that putting • your
grievance in writing to your employer would result in significant
threat to you or your property or some other person or their
property.
You have been subject to harassment and have reasonable • grounds
to believe that putting the grievance in writing to your employer
would result in further harassment.
You do not need to go • through the procedures if the grievance is a
collective one, that is if a recognised trade union or workplace
representative raises it on behalf of two or more employees.
Your employment has ended, you did not put your • grievance in
writing to your employer before your employment ended, and it has
since become not reasonably practicable for you to do so, for
example if he or she has gone abroad.
It is not reasonably practicable for you to • put your grievance in
writing to your employer within a reasonable period, for example
because your employer is a sole trader and is not available due to
long-term illness.
Finally there will be circumstances in which it • is just not possible to
complete the procedures, for example if one of the parties leaves
the country or becomes seriously ill.

CHAPTER 2 - DISMISSAL AND DISCIPLINARY ACTION

If your employer is concerned about your conduct or capability, he or she
should try to sort things out with you before considering disciplinary
action or dismissal.

The new statutory minimum procedures come into play when the
employer actually contemplates dismissing you or taking other disciplinary
action against you. However, many employers already follow additional,
preliminary procedural steps – for instance, holding investigation
meetings and/or issuing a series of verbal or written warnings,
culminating in a final written warning – before reaching this point. If you
are already entitled to this as part of your terms and conditions of
employment, the new statutory minimum procedures do not change
things. They will need to be followed in addition to your employers’
previous procedures. Not to do so may count as unreasonable behaviour.
It would help to make a short note of any discussions you have with
management about a work problem, recording the date of the discussion,
whom you spoke to and the main points discussed. This may be useful if
your employer takes formal proceedings.
At the point your employer contemplates taking disciplinary action or
dismissing you, he or she should follow the minimum statutory
disciplinary procedures. “Disciplinary action” here means action taken on
grounds of your conduct or capability and does not include warnings or
suspension on full pay.
If your employer does not follow the new statutory minimum procedures,
and

1] dismisses you, you may complain to an employment tribunal, who will

normally find the dismissal to be automatically unfair and increase
compensation; or
2] takes other disciplinary action, short of dismissal, against you and you
subsequently make a successful employment tribunal claim about that
action, any money awarded to you is likely to be increased by between
10% and 50% (assuming the failure to follow the procedures was not
your fault).

The new statutory minimum procedures apply if you are an employee; on

a fixed-term contract of a year or more which is not renewed; and if you
are dismissed on grounds of age and you have not reached the age of 65
or, if different, the normal retirement age for your job.
Like the grievance procedure, the discipline and dismissal procedure has
three steps.

The written statement

Your employer must prepare a written statement of his or her reasons for
considering disciplinary action or dismissal and send you a copy of it.
Read the statement carefully. The statement should be clear and explain
your employer’s position. If you have trouble understanding it, discuss it
with a workmate or a trade union official or take it to a CAB.

The hearing
Once he or she has sent you the statement your employer must invite
you to a meeting to discuss the issue. He or she should allow you
enough time to think about what has been said but should not delay the
meeting for an unreasonable time.

You have a right to be accompanied to this meeting by someone who

works with you or by a trade union official. The meeting must be held at
a time and place, which is reasonable for you and anyone accompanying
you. If either of you are disabled the employer must take all reasonable
steps to make sure that you have no problems getting to the meeting.
You have a duty to attend the meeting. If for some reason you or the
person you have chosen to come with you cannot get there for a reason
which was not foreseen when the meeting was arranged the employer
must arrange another meeting and you must attend it.

Prepare carefully for the meeting and discuss the matter fully with anyone
you have asked to accompany you. If there is anyone there you don’t
know, ask your employer to introduce them. Your employer should
explain how the meeting will be held, who will speak and when. Your
employer must give you an opportunity to set your case out calmly and
clearly. Listen to what your employer has to say and give your side of
the case. Be concise. The employer may dismiss or take the disciplinary
action against you at this point.

The appeal meeting

After the meeting, your employer must let you know his or her decision.
If you want to appeal against this decision, you must tell your employer.
An example of an appeal letter is on page 17. You must appeal to
complete the statutory procedures.
Your employer must then arrange a meeting to hear the appeal.
Again you have a right to be accompanied to this appeal meeting by
someone who works with you or by a trade union official. The meeting
must be held at a time and place, which is reasonable for you and anyone
accompanying you. If either of you are disabled the employer must take
all reasonable steps to make sure that you have no problems getting to
the meeting. You have a duty to attend.
If for some reason you or the person you have chosen to come with you
cannot get there for a reason which was not foreseen when the meeting
was arranged, the employer must arrange another meeting and you must
attend it.

Prepare carefully for the meeting and discuss the matter fully with anyone
you have asked to accompany you.
After the meeting the employer must decide what he or she is going to
do and tell you what it is. This is his or her final decision and if you are
still not happy with it, and wish to continue, you will need to take your
case to an employment tribunal.
Can the grievance procedure apply to a dismissal or disciplinary
procedure?
You do not need to start a grievance procedure over a dismissal in any
circumstances (unless you are complaining about constructive dismissal –
i.e. you are claiming that you were forced to resign because of your
employer’s behaviour).
You can start a grievance procedure about disciplinary action if:

you disagree with • your employer that the action was taken on
conduct or capability grounds; and/or
you consider that the action constituted unlawful • discrimination
against you.

In either of these circumstances, you should put your grievance to the

employer in writing. Provided you do this before the appeal meeting under
the disciplinary procedure that meets the legal requirements. If you leave
it until after the appeal meeting under the disciplinary procedure has
already taken place, you should go through a full grievance procedure.

Instant dismissal
An instant dismissal when the employer has not made any investigation
of the circumstances is nearly always unfair. However there are some
very rare cases involving gross misconduct where tribunals have ruled
that the dismissal was fair because the circumstances made an
investigation unnecessary. In these cases the Regulations allow the
employer to dismiss first and then operate a two-step procedure going
straight from the written statement to the appeal without holding a
hearing in between.

When an employer does not need to go through the new procedures

There are some circumstances in which an employer is allowed to dismiss
someone or take disciplinary action without going through the
procedures. These are:
If the action your employer takes is • to give you a verbal or written
warning or suspend you on full pay. [If you do not agree with such
action you can raise a grievance].
If there are • reasonable grounds for believing that doing so would
result in significant threat to his/her person or property or some
other person or their property.
Collective Issues, where discussion between managem •ent and
employee representatives is the best way of taking matters
forward. An example is when an employer lays off a group of staff
and either before or when the employment terminates offers to rehire
them under different terms and conditions.
When the employer is under a duty to consult • employee
representatives in relation to collective redundancies.

When employees are dismissed whilst taking industrial • action. (In

the case of lawful, officially organised action, special arrangements
apply.)
When it is not possible for employment to • continue, for example
when a factory burns down and it is no longer practicable for the
employer to employ anyone or where it becomes illegal to employ a
particular employee.
It is not practicable for the procedures • to be complied with within a
reasonable period.

CHAPTER 3 - APPLYING TO AN EMPLOYMENT TRIBUNAL

Employment Tribunals hear claims about matters to do with employment
such as unfair dismissal. The Tribunals are courts, but have less formal
procedures than the ordinary civil courts. Preliminary hearings, known as
Pre-Hearing Reviews (PHRs), usually take place before a legally-qualified
chairman on his or her own. Full hearings, which decide outstanding
issues and conclude cases, usually take place before three tribunal
members; the chairman, and two members who are experienced in
dealing with work related problems. Usually one of these members will
have a background in management and the other will have experience of
representing employees. If you would like more information, you can use
the Employment Tribunal public enquiry line on 0845 795 9775.
Time limits for making an application
There are time limits to follow when making a claim to a tribunal. In
unfair dismissal cases, this is usually three months from the date your
employment ended. In other cases, if the statutory grievance procedure
applies, the three months may be extended to six months (see paragraph
below). If your claim is received after the applicable time limit, the
tribunal will not normally accept it. Though, in certain circumstances, the
normal time limit will be extended for submitting tribunal claims, to allow
extra time for workplace discussions to continue, without obliging
employees to submit premature applications in order to meet deadlines.
It should be noted that the existing discretion of the tribunal to extend a
time limit where it was not reasonably practicable for it to be met (or,
under some jurisdictions, where it is just and equitable to extend it) is
unaffected by these changes.
There are certain types of cases which are subject to different time limits.
These are set out below under the heading ‘Special Cases’. In particular,
if your claim is concerned with equal pay the time limit is six months,
which may be extended to nine months if the statutory grievance
procedure applies in your case (see paragraph below).
If your claim is based on a grievance with your employer or former
employer, and the statutory grievance procedure applies, your claim will
not be accepted at all unless you either:
Put your grievance in • writing to the employer and then allow at
least 28 days to pass before putting in your claim to the tribunal
office; or
Give a valid reason on • the claim form why you think this legal
requirement does not apply in your case.

A list of valid reasons is set out below. Some of them involve complex
legal matters and if you are uncertain as to whether the reasons apply in
your case you should get advice from trade union representative or your
nearest Citizens Advice Bureau.
The reasons for not lodging a written grievance are:
You were not an employee of the employer (but were, for • instance,
a worker supplying services as a freelancer or contractor, or were a
job applicant).
Your claim is brought under a law that is not listed • in Schedule 4 to
the Employment Act 2002 - the main example is a claim about a
breach of contract (but you may still be penalised in terms of
compensation if you do not complete the procedures).
Your employment • has ended, you did not put your grievance in
writing to your employer before your employment ended, and it has
since become not reasonably practicable for you to do so, for
example if he or she has gone abroad.
It is not • practicable for you to put your grievance in writing to your
employer within a reasonable period, for example because your
employer is a sole trader and is not available due to long-term
illness.
Your grievance is that you • were dismissed or about disciplinary
action that your employer says was taken on the grounds of your
conduct or capability (unless you disagree that those were the
grounds, or think that the action was unlawfully discriminatory).
You have reasonable grounds for believing that that • putting your
grievance in writing to your employer would result in significant
threat to you or your property or some other person or their
property.
You have been subject to harassment and have reasonable • grounds
to believe that putting the grievance in writing to your employer
would result in further harassment.
The grievance was put to • your employer in writing by an
appropriate representative (for example, an official of a recognised
trade union) on behalf of you and at least one other employee.

You have raised the grievance under an industry level • grievance

procedure that has been agreed between at least two employers or
an employers’ association and one or more independent trades
unions.
You have raised the matter that is the subject of your • grievance as
a “protected disclosure” under the public interest disclosure
(‘whistleblowing’) provisions in the Employment Rights Act 1996.
Your claim raises an issue of national security. •
In certain circumstances the normal time limit for submitting a claim can
be extended by three months to allow you and your employer the chance
to sort out the dispute between you without involving the tribunal. These
circumstances are:
You have raised your grievance in writing with your employer • and
have done so within the normal time limit.
You put your claim to • the tribunal office within the normal time
limit but were turned down because you needed to put your
grievance in writing to your employer and either had not done so or
had not then allowed 28 days before putting in you claim. (Note
that in this case you must put your grievance in writing to your
employer within one month of the expiry of the normal time limit or
your claim will not be accepted in any circumstances).
Your claim is • about a dismissal, or about disciplinary action that
your employer says was on the grounds of your conduct or
capability, and at the time that the normal time limit expired, you
had reason to believe that a dismissal or disciplinary procedure was
still in progress.

Special cases
If you are applying for a redundancy payment special time limits apply.
These are complicated and you should seek advice from the Redundancy
Payment Helpline on 0845 145 0004.

If your complaint is related to the National Minimum Wage you should

seek advice from the National Minimum Wage Helpline on 0845 600
0678.

If you are dismissed because of:

trade union • activities;
membership or non-membership of a trade • union;
15
activities as a pension scheme trustee; •
being, or • proposing to become an employee representative;
being a shop worker or • betting worker who refuses Sunday work;
you can apply for an immediate re-employment order. This application
must be made within seven days of dismissal. You should seek advice
from your trade union representative, a CAB or the Employment Tribunal
Service immediately if you are in this position.

Costs
Unless you (or your representative, if you have one) abuse the system by
acting unreasonably, or by pursuing a claim which has no reasonable
prospect of success, you will not have to meet the respondent’s costs.
This is one of the ways in which the employment tribunals differ from the
ordinary civil courts.

The circumstances in which a claimant can be ordered to make a

payment towards a respondent’s costs (or preparation time, if the
respondent is not legally represented) are where the claimant (or
claimant’s representative) acts “vexatiously, abusively, disruptively or
otherwise unreasonably”, or brings proceeds with a misconceived claim.
Even then, when considering whether or not to make such an award, and
if so the amount, the tribunal may take into account the claimant’s ability
to pay.

If a respondent (or respondent’s representative) acts unreasonably, he or

she can be required to pay for the claimant’s costs (or preparation time).
Unreasonable behaviour by a respondent could include making unjustified
threats – e.g. threats that the claimant will be automatically required to
meet the respondent’s costs – to try to persuade the claimant to
withdraw the claim.
In 2003/04, costs awards were made in fewer than 0.1% of tribunal
cases. Only 998 awards were made – and a third of these were made
against respondents, rather than claimants. The average award was
£1,859. Awards are based on actual costs, reasonably incurred.

ANNEX - EXAMPLE LETTERS

Letter 1- Raising a grievance

Dear……………. Date………………..
I am writing to tell you that I wish to raise a grievance.
This action is being considered with regard to the following
circumstances:
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
I am entitled to a hearing to discuss this matter. I am entitled, if I wish,
to be accompanied by another work colleague or my trade union

representative. Please reply within (not more than 2 days of the date of
this letter.
Yours sincerely
Signed …………………… Employee

Letter 2 - Request for appeal hearing (grievance procedures)

Dear……………. Date………………..
On ………….. I was informed that the Company had decided to
…………………………………. based on my grievance of
…………………….. raised on ……………….
I would like to appeal against this decision. I wish the following
information to be taken into account:
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Please reply within x days fronm the date of this letter.
Yours sincerely
Signed …………………… Employee

Letter 3 - Request for appeal hearing (dismissal or disciplinary action

procedures)

Dear……………. Date………………..
On ………….. I was informed that ……………. [insert organisation name]
was considering dismissing OR taking disciplinary action [insert proposed
action] against me.
I would like to appeal against this decision. I wish the following
information to be taken into account:
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Yours sincerely
Signed …………………… Employee
hi all,
GRIEVANCE REDRESSAL PROCEDURE

AIMS & OBJECTIVES: To provide the employees an easy and readily accessible
machinery for prompt disposal of their day to day Grievances.

NATURE OF GRIEVANCES THAT FALL FOR REDRESSAL UNDER GRIEVANCE

PROCEDURE: Complaints affecting one or more individual workers in respect of their
– wage, payment of overtime wages, bonus, railway fare (LTC/LLTC), leave, transfer,
promotions, increments seniority, work assignment, working conditions, hours of
employment, output of workmen (work load), training and settlement of terminal
benefits.

DIFFERENT STAGES FOR REDRESSAL OF GRIEVANCES, PROVIDED FOR UNDER

COMPANY’S GRIEVANCE REDRESSAL PROCEDURE:

FIRST STAGE (MINE/DEPARTMENT LEVEL): The aggrieved employee shall represent

his grievance either in person or in writing to the Welfare Officer or any other Officer
in the Dept, which should be acknowledged. A written reply should be sent to the
worker under the signature of the Manager/HoD within 10 days.

SECOND STAGE (AREA LEVEL): If the employee is not satisfied, he may request the
Manager/HoD to forward his Grievance to the Grievance Committee constituted at
Area level which consists of –

MANAGEMENT REPRESENTATIVES WORKMEN

REPRESENTATIVES

a) General Manager of the Area

b) Manager/HOD
c) Area Personnel Dept. Head
(Member Secretary)

a) One permanent member nominated by the Recognised Trade Union of the Area
OR in his absence, a representative duly authorised by the said Union.
b) A representative of the Registered Trade Union OR a co-worker of the worker’s
choice.

The recommendations of the Grievance Committee shall be communicated to the

concerned workmen within 10 days. A copy of the minutes of the Grievance
Committee meeting may be supplied to the Representative of the Recognised Union.

THIRD STAGE (APPELLATE AUTHORITY – CORPORATE LEVEL): If the employee is not

satisfied with the reply given by the Grievance Committee at Area level, he can
represent the matter to the Director (P,A&W) at Corporate level.

The representation will be disposed of within 15 days.

All the officers are requested to put in their best efforts to examine and redress the
genuine grievance submitted by workmen at different stages expeditiously.
I have sent this posting for everybody's reference,kindly give me your comments on
the same.
Regards,
Sonit Singh
Sonit:

Consider:

At the FIRST STAGE (MINE/DEPARTMENT LEVEL, I would recommend that:.

* Since the grievance was presented to the Welfare Officer, (s) he should be the one
to investigate and respond to the employee within 10 (? working or calendar) days.
If the Manager/HoD is involved, it may prejudice his position at the later stages.

* A complete investigation should be done at this time, including interviewing of

witnesses and seeking relevant facts.

At the SECOND STAGE, I would recommend the addition of one more Union
representative. In addition, a secret ballot as to the disposition of the grievance
(“has merit“/ “does not have merit“) should be taken. When a majority is reached - 4
votes for either position - the counting will cease. This system precludes any
pressure on the management or union to vote “for” or “against” the employee. The
vote is not on the person, but the situation as represented by the facts.

THIRD STAGE (APPELLATE AUTHORITY – CORPORATE LEVEL): The employee can

represent the matter to the Director (P,A&W) at Corporate level.

Who will be the employee’s advocate?

While these suggestions seems to encroach on Management’s right to run the

business and direct the working forces, it also provides a level of good faith and fair
dealing which I suspect will be appreciated by the employees.

Just my thoughts.

Bill Kuzmin
PALADIN Human Resource Consulting

Discipline is the key to success. Theodore

Roosevelt has said “With self-discipline almost
everything is possible”. Self discipline makes
employee realize what is required at work.
Discipline can be positively related to
 performance. It is the bridge between goals and
accomplishments. Effective discipline should be
aimed at the behavior, and not at the employee
personality. This is because the reason for
discipline is to improve performance rather than
punishing the employee.

Factors necessary for effective disciplinary system include:

1. Training of supervisors is necessary: Supervisors and mangers need to be trained on when

and how discipline should be used. It is necessary to provide training on counseling skills as
these skills are used while dealing with problem employees. Moreover, discipline decisions
taken by trained supervisors are considered fair by both employees and managers.

2. Centralization of discipline: Centralized means that the discipline decisions should be

uniform throughout the organization. The greater the uniformity, higher will be the
effectiveness of discipline procedure.

3. Impersonal discipline: Discipline should be handled impersonally. Managers should try to

minimize the ill feelings arising out of the decisions by judging the offensive behavior and
not by judging the person. Managers should limit their emotional involvement in the
disciplinary sessions.

4. Review discipline decisions: The disciplinary decisions must be reviewed before being
implemented. This will ensure uniformity and fairness of the system and will minimize the
arbitrariness of the disciplinary system.

5. Notification of conduct that may result in discipline: Actions that lead to misconduct can be
listed and documented so the employees are aware of such actions. This will unable them
to claim that they have not been notified, in advance, regarding the same.

6. Information regarding penalties: The employer should define the penalties and other
actions like warnings, reprimands, discharge and dismissal well in advance. All these action
plans must be communicated to the employees.

7. Discipline shall be progressive: Discipline system should be progressive in nature. In a

progressive discipline approach the severity of actions to modify behavior increases with
every step as the employee continues to show improper behavior. The advantage of this
approach is that employees can’t take it for granted.

8. Documentation: Effective discipline requires accurate, written record keeping and written
notification to the employees. Thus less chance will be left for the employee to say the he
“did not know” about the policy.

9. Discipline should be fair: The disciplinary decision should be fair enough for the employee.
Both over-penalization and under-penalization are considered to be unfair for the problem
employee. Moreover, an internal fairness is to be maintained, that is, two employees who
have committed the same offense should be equally punished.

10. Discipline shall be flexible and consistent: The manager administering discipline must
consider the effect of actions taken by other managers and of other actions taken in the
past. Consistent discipline helps to set limits and informs people about what they can and
cannot do. Inconsistent discipline leads to confusion and uncertainty.
 11. Disciplinary action should be prompt: The effective discipline should be immediate. The
longer time lag between the misconduct offense and the disciplinary action will result in
ineffectiveness of the discipline.

To maintain harmonious relations and promote industrial peace, a Code of Discipline has been
laid down which applies to both public and private sector enterprises. It specifies various
obligations for the management and the workers with the objective of promoting cooperation
between their representatives.

The basic objectives of Code of Discipline are to:

 Maintain peace and order in industry.

 Promote constructive criticism at all levels of management and employment.

 Avoid work stoppage in industry

 Secure the settlement of disputes and grievances by a mutually agreed procedure

 Avoiding litigations

 Facilitate a free growth of trade unions

 Eliminate all forms of coercion, intimidation and violations of rules and regulations governing
industrial relations.

The Code is based on the following principles:

• There should be no strike or lockout without prior notice.

• No unilateral action should be taken in connection with any industrial matter.

• Employees should follow go slow tactics

• No deliberate damage should be caused to a plant or property

• Acts of violations, intimidation and coercion should not be resorted

• The existing machinery for the settlement of disputes should be utilized.

• Actions that disturb cordial relationships should be avoided.

To ensure better discipline in industry, management and unions agree on not indulging into
various actions. These actions can b summarized as follows:

Management and Union(s) agree

• that no unilateral action should be taken in connection with any industrial matter and
that should be settled at appropriate level

• that the existing machinery for settlement of disputes should be utilized with the
 utmost efficiency

• that there should be no strike or lock-out without prior notice

• that neither party will have recourse to coercion, intimidation, victimization or go –slow
tactics

• that they will avoid litigation, sit-down and stay-in strikes and lock-outs

• that they will promote constructive co-operation between their representatives at all
levels and as between workers themselves

• that they will establish upon a mutually agreed grievance procedure which will ensure a
speedy and full investigation leading to settlement;

• that they will abide by various stages in the grievance procedure and take no arbitrary
action which would by-pass this procedure; and

Management Agrees

• not to increase work-loads unless agreed upon or settled otherwise

• not to support or encourage any unfair labor practice such as discrimination and
victimization of any employee

• to take prompt action for settlement of grievances and implementation of settlements,

awards, decision and orders

• to take appropriate disciplinary action against its officers and members in cases where
enquiries reveal that they were responsible for precipitate action by workers leading to
indiscipline

Union agrees

• not to engage in any form of physical duress

• not to permit demonstrations which are not peaceful

• that their members will not engage or cause other employees to engage in any union
activity during working hours

• to discourage unfair labor practices such as negligence of duty, damage to property and
insubordination

• to take prompt action to implement awards, agreements, settlements and decisions

Employee Discipline Checklist for Supervisors

Properly applied, formal corrective discipline can help the supervisor correct troublesome
behavior problems of his or her employees and maintain their respect. Mishandled, it's likely
to result in highly undesirable by-products such as poor attitudes, increased numbers of
written grievances on seemingly unrelated matters, poor union-management relations and
even restriction of output.

Maximum effectiveness is achieved with a minimum of bad side effects when formal
corrective discipline (reprimands, written warnings, disciplinary layoffs) is applied sparingly to
the few employees who fail to respond to proper training, extensive counseling and informal
corrective efforts. Listed below are some questions which the supervisor should ask himself
when deciding whether or not to reprimand or penalize an employee.

1. In my judgment, would a discussion with the employee be a more effective way of getting
him to correct his behavior than a formal reprimand or penalty? For example, if the
misconduct is an isolated instance of misbehavior by a usually reliable employee, a
discussion is ordinarily more effective than a penalty or reprimand.

2. Or, is the misconduct part of a pattern of repeated offenses which I have already tried
unsuccessfully to correct by methods short of a formal reprimand or penalty? If so, formal
discipline MAY be in order.

3. Has similar misconduct on the part of the employee or other employees been tolerated
(ignored or condoned) in the past by management? If so, have employees been put on
notice that such misconduct (for example, lining up early at the time clock or taking
excessive relief time) will no longer be tolerated, and has an effort, short of formal discipline,
been made to correct the problem?

4. Have I asked the employee for his explanation and permitted him to tell fully his side of the
story?

5. Have I checked his explanation before indicating to him my belief that he was guilty of
misconduct?

6. In discussing the matter with the employee, have I taken a calm, courteous but firm
approach? All employees, even those guilty of misconduct, are entitled to be treated with
courtesy and respect.

7. Are there any aspects of the case, which, if brought to light in the processing of a
grievance before an impartial arbitrator or in a legal proceeding, would reflect unfavorably on
the character, judgment or conduct of any member of management? If so, this factor should
be carefully considered when deciding whether or not formal disciplinary action is to be
taken.
8. If formal disciplinary action is taken, can management prove, beyond a reasonable doubt,
that the employee is guilty in the event a grievance is filed? If not, formal discipline should
not be taken. Corrective action should be limited to a discussion with the employee. The
following items may be helpful in sustaining management's burden of proof:

--an admission of guilt by the employee

--misconduct witnessed by one or more supervisory employees

--physical evidence such as a scrapped or damaged part or tool, beer or whiskey bottle, etc.
(Such evidence should be retained until any grievance is resolved.)

--plant security reports and testimony

--notes recording interviews with other employees concerning the incident

9. Have I made notes on all the facts?

--employee's own explanation

--description of the act of misconduct and events leading up to it

--times, places, dates, names of witnesses, both supervisory and non-supervisory

--comments by witnesses

--comments by union representative, if called

10. If formal discipline is contemplated, have I checked the employee's prior discipline,
attendance and tardiness record to determine the proper extent of penalty? Have I fully
taken into account any period of good conduct since the prior disciplinary action?

11. In my own mind, is the penalty fair, and is it the most effective way of bringing about the
desired correction in the employee's behavior?

12. have I taken the time to explain fully to the employee the reason for the penalty and what
will be expected of him in the future? Grievances protesting reprimands and penalites
sometimes are filed because the supervisor has failed to adequately explain to the employee
why he is being penalized. When the penalty is being issued, the supervisor should try to get
a commitment from the employee that he will make an effort to correct his behavior. For
example, in a situation involving absence or tardiness, the employee's record should be
reviewed with him and the number of times he has been absent or late pointed out to him. If
this is done the employee may understand that he is not being penalized for a single
instance of absence or tardiness.
13. Have I considered reviewing disciplinary issues with the union representative and trying
to enlist his help in dealing with the problem before resorting to formal discipline? Doing so
can put the union representative in a position, in event of formal discipline, to remind the
employee that he had been warned about his behavior.

14. Have I complied with the union representation provisions of the union contract?

--Was the reason for the penalty stated briefly and accurately on the penalty slip?

--If the employee requested his union representative, was the representative called promptly
and the employee furnished represenation before he left the plant?

--Was the employee notified in writing of the reason for the warning, reprimand, suspension
or dismissal?

--Was the union representative notified in writing in accordance with the union agreement?

Discipline in the workplace. It sounds almost like an oxymoron, doesn't it? After all, discipline is
something used with children, right? And hopefully, you've got all adults working for you. So the
notion of conducting a discipline session makes everyone feel uncomfortable - as though you are
somehow overstepping your bounds.

That discomfort you're feeling can make you go easy on someone ("Oh, it more than likely won't
crop up again so I'm not going to do anything about it") or go too far ("A buyer complained that
she was on hold too long so I'm writing you up!")

Neither option can be ideal for you, your association or your employee. You do need to discipline
an employee whose actions have crossed the line . . . however you need to accomplish it
properly.

First things first: recognize what discipline actually means. It is a follow-up to coaching. You do it
because you have already given corrective feedback and suggested ways to correct the problem
-and the employee in question has failed to heed your advice. Discipline is a way of declaring,
"That correction needs to occur. If it doesn't, there will be consequences." It will sound basic, yet
the truth is it's easy to make mistakes in this arena which a) result in an ineffective session, after
which nothing changes, b) strain your relationship with your employee, c) anger or upset him or
her to the point of much worse performance (this, in turn, will lessen morale), and/or d) lead to
legal action against you or your firm.

Unpleasant as it can be, you have to address employee infractions. Here's why.

The initial as well as most obvious reason can be simply that: You expect your employee to do
the right thing. You would like him to stop being rude to patrons or missing major deadlines or
showing up two hours late each Monday . . . whatever. (Yes, of course, the present rule-breaker
may be a woman, but we are trying to steer clear of that confusing he/she/his/her conundrum.
Please bear with us!)

Conduct a discipline session ideally and you increase the likelihood that your employee will cease
this offending behavior and improve dramatically.

The other reason not to let things slide can be a bit more complicated. Suppose your employee is
merely, well, a lost cause? Suppose you know in deep down that he's not going to ever develop
into an intuitive, innovative "happy corporate citizen?"

That's all the more grounds to discipline him. Perfectly-structured, properly documented discipline
sessions - with all your I's dotted and T's crossed - may be half of the battle of getting him out the
door . . . with a clear conscience and tiny odds that a disgruntled employee will pursue litigation.

Conducting effective discipline sessions are both an art and a science. We'll teach you
where you can compromise . . . and where you can't.

Basically, there are three forms of disciplinary action:

1. You can give a written warning

2. You can suspend an employee without pay for a designated span of time
3. You can dismiss the employee

A part of this "art" we mentioned above involves understanding which type of discipline session
might be appropriate when. The other part involves determining what you can say throughout a
session. You do have some leeway depending on the particulars of your employee and also his
breach. Every case is different, every person is distinct, and most every workplace culture is
unique . . . so it's hard to submit carved-in-stone rules.

However, some basic guidelines might be welcome, correct?

Not to worry. Dr. Joanne G. Sujansky, CSP (Certified Speaking Professional, CEO, as well as
Founder of KEYGroup®) offers them. Her study "How to Discipline an Employee - Employee
Discipline That Works," provides real-life examples of discipline cases and clearly pinpoints the
components that determine what should be done - both type (which out of the four opportunities
might be ideal and why) as well as tone (what to say in a session and how to say it).

Here are a few nagging issues Dr. Sujansky's report can answer:

• Are there ever occasions when it is proper to permit an infraction to slide? If so, when?
• What infractions call for immediate action - for example removal from the workplace and
also, under more serious circumstances, immediate termination?
• How do I proceed if I find out during the session that this employee is dealing with
personal problems - such as alcoholism, drug abuse or domestic violence?
• What if an employee breaks a "common sense" rule that seems obvious to me but is not
covered in the employee handbook?
• Am I truly justified in disciplining him? I've heard that discipline should be conducted in
private to spare the employee's pride. But then I've also heard that a witness should
always be there for legal reasons. Which is right?

Without a doubt, few employee discipline matters are in fact black and white. Dr. Sujansky
addresses them head on:
 • The reason it's critically important to put everything in writing. (The report even supplies a
"documentation template" you can use.)
• That one phrase you should never say during a discipline session.
• Three things never to put in writing.
• What to do if an employee refuses to answer a question.
• What to do if an employee asks to resign over a discipline session.
• When to use the infamous "final caution" - and why it has to actually be final.

The company has adopted a progressive discipline policy to identify and address employee and employment
related problems. This policy applies to any and all employee conduct that the company, in its sole discretion,
determines must be addressed by discipline. Of course, no discipline policy can be expected to address each and
every situation requiring corrective action that may arise in the workplace. Therefore, the Company takes a
comprehensive approach regarding discipline and will attempt to consider all relevant factors before making
decisions regarding discipline.

Most often, employee conduct that warrants discipline results from unacceptable behavior, poor performance or
violation of the company’s policies, practices or procedures. However, discipline may be issued for conduct that
falls outside of those identified areas. Equally important, the company need not resort to progressive discipline, but
may take whatever action it deems necessary to address the issue at hand. This may mean that more or less
severe discipline is imposed in a given situation. Likewise, some company polices like sexual harassment and
attendance, contain specific discipline procedures.

Progressive discipline may be issued on employees even when the conduct that leads to more serious discipline is
not the same that resulted in less sever discipline. That is, violations of different rules shall be considered the same
as repeated violations of the same rule for purposes of progressive action.

Probationary employees are held to the highest standards for behavior and job performance. Progressive
discipline is the exception rather than the rule for probationary employees.

The Company will normally adhere to the following progressive disciplinary process:

1. Verbal Caution: An employee will be given a verbal caution when he or she engages in problematic behavior. As
the first step in the progressive discipline policy, a verbal caution is meant to alert the employee that a problem
may exist or that one has been identified, which must be addressed. Verbal warnings will be documented and
maintained by your [designate either appropriate individual (e.g., "your supervisor" or "your manager"]. A verbal
caution remains in effect for [specify time (e.g., three months)].

2. Verbal Warning: A verbal warning is more serious than a verbal caution. An employee will be given a verbal
warning when a problem is identified that justifies a verbal warning or the employee engages in unacceptable
behavior during the period a verbal caution is in effect. Verbal warnings are documented and placed in the
employee’s personnel file and will remain in effect for [specify time (e.g., three months)].

3. Written Warning: A written warning is more serious than a verbal warning. A written warning will be given when
an employee engages in conduct that justifies a written warning or the employee engages in unacceptable
behavior during the period that a verbal warning is in effect. Written warnings are maintained in an employee’s
personnel file and remains in effect for [specify time (e.g., three months)].

4. Suspension: A suspension without pay is more serious than a written warning. An employee will be suspended
when he or she engages in conduct that justifies a suspension or the employee engages in unacceptable behavior
during the period that a written warning is in effect. An employee's suspension will be documented and, regardless
of the length of the suspension issued, will remain in effect for [specify time (e.g., three months)].

5 Decision Making Leave : Generally following a suspension, an employee will be reprimanded them sent home for
the day on decision making leave. This is intended to help the employee decide whether they should continue
employment with the company. If the employee returns, they will be expected to work harder than before to follow
the Company guidelines and continue their employment without interruption. The other option with this leave is the
employee may choose to resign because employment with the Company is not a match.

6. Termination: An employee will be terminated when he or she engages in conduct that justifies termination or
does not correct the matter that resulted in less sever discipline.

Again, while the Company will generally take disciplinary action in a progressive manner, it reserves the right, in its
sole discretion, to decide whether and what disciplinary action will be taken in a given situation.
Policy Commentary

There is no one correct approach for handling employee discipline. Accordingly, like most personnel policies,
discipline policies vary greatly. Competing interests make it important for employers to analyze what they expect a
discipline policy to accomplish. Some employers adopt traditional progressive discipline or zero tolerance policies
because they are interested in identifying and eliminating the problem employee. Many employment lawyers favor
uniformly applied progressive discipline policies because they make a discrimination case easier to defend. These
policies, however, do not always protect an employer’s investment in its employees, nor does it necessarily foster
a positive working environment. Whether altruistic or not, some employers seek to assist employees who
experience workplace problems and tailor their discipline policy to achieve this goal. Alternate policies are
proposed.

There is no set number of steps for a progressive discipline policy. Typically there are at least three steps: caution,
warning & termination. Many polices provide for suspension prior to termination.

Regardless of an employer’s choice, a discipline policy should be clear and specific. Likewise, it must be uniformly
applied, particularly a progressive discipline policy. Thus, while a progressive discipline policy should allow for
employer discretion, employers that adopt such a policy should abide by its terms, except in those rare instances
that justify special treatment.

If 2010 proves typical, there will be over 100,000 lawsuits and claims filed against
employers in the US and the average cost to defend a wrongful discharge suit will be
above $150,000.

Dealing with employee disciplinary issues is not pleasant for any manager or business
owner. It is, however, important. A common complaint of top performing employees is
that underperforming employees are not dealt with promptly and firmly. Yet, to avoid
lawsuits and discrimination claims, disciplinary issues need to be handled carefully and
correctly.

Pennsylvania is an ‘employment at will’ state, which means an employee serves at the

will and pleasure of the employer. However, there are exceptions to at will employment.
So, how can an employer keep the flexibility of employment at will and not run afoul of
employee rights?

First, make sure that your employee handbook, policies and procedures do not erode your
employment at will status. The courts are increasingly ruling that handbooks and other
official communications are implied agreements.

Second, work on preventing the need for discipline. Hire hard, slow and for fit with your
organization, which will reduce both costly turnover and the need for employee
discipline. Make expectations clear before hiring, during orientation and then give staff
regular feedback. Most employees want to do a good job, so tell them what a good job is
in terms of duties and behaviors.
Deal with employee disciplinary matters right away. Deal with the matter privately and
confidentially. In addressing the matter with the employee, focus on the action, not the
employee (attack the performance not the performer). And focus on specific, observable
behaviors not general issues, like ‘team play’ or ‘attitude’. Allow the employee to explain
his/her side (due process) and keep an open mind. Make sure you document such
conversations and actions thoroughly and factually (no suppositions). Write as though it
may see the light of day- it might! Personnel files and supervisory notes are discoverable.
Remember that discipline in the workplace is about compliance, not punishment.
Discipline when an employee does not meet productivity, quality and conduct standards.

If you must terminate, do it as humanely as possible. Taking the job is one thing; taking
one’s dignity is another and often is what precipitates lawsuits and claims. Consider
separation agreements. Done properly, it assures the employer will stay out of court and
helps the terminated employee get on with their life.

Creating a discipline policy is not going to be enough in today's world.

Employees like to push the envelope and they like to see what they
can get away with. This new generation of employees can be
frustrating to manage, especially when it comes to employee
discipline. If you haven't dealt with discipline much, here are some
helpful tips designed specifically for you.

Tip # 1 - Identify the problem

The first thing you need to do is to decide what the problem is with a
certain employee. Are they struggling to turn their work in on time or
is the quality of their work diminishing? If this is the case, you want to
discipline them based on their performance rather than
insubordination. When an employee neglects the basic rules of the
company like coming in tardy often, taking long lunches, making too
many personal phone calls at work, you need to follow the disciplinary
action of insubordination.

Tip # 2 - Keep a record

Each day you need to observe your employees and keep records of the
things you notice. This will help you when you confront the employee
about the little lies they may use to cover up the real reason why they
were late or the reason why they took a long lunch. If something
happens once, it is forgivable but when you start to see a pattern of
bad behavior, you will need to address it.

Tip # 3 - Confront the employee

This is going to be hardest part for some managers. Confronting
people may not be your favorite thing to do but as a manager, it is
your responsibility and duty to the organization. Call the employee into
your and briefly explain to them what the problem is. Give the
employee an opportunity to defend themselves and say their peace
about the problem. Once they have done so, set a goal together that
will help the employee overcome this behavior or performance
problem. Write down the goal and then come up with a disciplinary
action you can both agree upon. Flat out ask the employee what
course of action they think is fair such as docking their pay,
eliminating vacation hours, etc. Once you both agree upon the
disciplinary action that will arise if they do not live up to the contract
you made, have them sign it and then you need to sign it. You both
need a copy of the contract so you can pull it out if the employee
violates it and you are faced with harsh punishment or termination of
the employee.

Tip # 4 - Prevention
You need to hold regular meetings to address some of the issues that
you may be noticing within the organization. Let your employees know
what behaviors are acceptable and which ones are inexcusable. Give
each employee a copy of your performance and behavioral policies and
email it to them as well. Ask your employees to read over these
policies, sign a contract paper that states they agree to the terms and
disciplinary action of the policy if they are caught violating the policy.
Good documentation is important to protect yourself and the business.
When you are firm about the policy, your employees will take it
seriously. If you notice they are starting to walk a thin line between
the policy and going over the edge, call them into your office and try
to help them quickly correct the action before they end up facing
punishment.

Tip # 5 - Be firm
Since you are the manager, you need to be firm. You don't have to
rule your staff with an iron fist, but they do need to know who is in
charge of the and they need to fear violating the policy.

The maintenance of harmonious industrial relations within an industry depends on the extent of
promotion and maintenance of discipline in the organizations. No organizations can grow and
prosper without effective disciplinary system. Discipline on account of employees means
complying with the predefined rules and regulations of the organization. It is a form of training
that enforces organizational rules. Conduct problems arise from the employees who fail to
follow the code of conduct of the organization. These employees are most often affected by the
disciplinary system of the organization. Such employees are often called problem employees.
The problem employees comprise a small number of employees, but they are the ones who
cause the most disciplinary situations.

If employers fail to deal with problem employees, negative effects on other employees and work
groups may result. Some common disciplinary issues caused by problem employees include
absenteeism, tardiness, productivity deficiencies, pilfering, alcoholism, insubordination, misuse
of equipments and other company resources, and negligence. The goal of discipline is behavior
modification, that is, to modify unacceptable behavior and misconduct.
 The Disciplinary System

About IBM
IBM India - A Profile

IBM has been present in India since 1992 (re-entry, after an exit in the 1970s). Since
inception, IBM in India has expanded its operations considerably with regional
headquarters in Bangalore and offices in 14 cities including regional offices in New
Delhi, Mumbai, Kolkata and Chennai. Today, the company has established itself as one
of the leaders in the Indian Information Technology (IT) Industry.

IBM has set the agenda for the industry with 'on demand business' - a kind of
transformation where an organisation changes the way it operates and reduces costs;
serving customers better, reducing risks and improving speed and agility in the
marketplace. IBM is already working with customers to transform them into 'on demand'
businesses. IBM is the only company in the world that offers end-to-end solutions to the
customers from hardware to software, services and consulting. Linux support further
enhances IBM's e-business infrastructure enabler capability.

Our offerings: IBM is the only IT company in the world and also in India that offers
end-to-end solutions to customers from hardware to software, services and consulting.
IBM Global Services is the world's and also India's largest information technology
services and consulting provider. IGS provides the entire spectrum of customers' e-
business needs -- from the business transformation and industry expertise of IBM
Business Consulting Services to hosting, infrastructure, technology design and training
services. IGS delivers integrated, flexible and resilient processes -- across companies and
through business partners -- that enable customers to maximise the opportunities of an
on-demand business environment.

In 2005, IBM announced the acquisition of Network Solutions Ltd., a leading

infrastructure services company in India. This strategic investment will enable IBM to
augment its networking and managed services portfolio of offerings in India and broaden
it’s reach across the country.

Software Group the largest provider of middleware and the second-largest software
business in the world offers its customers comprehensive solutions to meet their e-
business requirements. IBM Software provides best-of-breed solutions for financial
services, manufacturing, process, distribution, government, infrastructure and small &
medium business sectors. IBM Software portfolio consists of:

- Transformation and integration solutions that are built on the IBM WebSphere
middleware platform.
- Information leveraging solutions that are built on a portfolio of Data management
(DB2) tools.
- Lotus product line to help organisations leverage collective know-how.
- Tivoli range of products to enable organisations to manage complex technological
infrastructure.
- Rational range of Application Development Tools to help software development
houses develop applications in a structured and systematic way.

Systems and Technology Group: The portfolio of eServers (xSeries, iSeries, pSeries,
and zSeries) offer a broad range of products from entry level, mid-range to high-end
servers and mainframes, presenting customers with the best technologies and practices to
support their e-business infrastructure requirements.

IBM has been providing leading-edge storage technology to organisations around the
world for nearly half a century. IBM offers a complete portfolio of storage networking
products and solutions that not only includes LTO, SAN, NAS but also IP Storage -
iSCSI appliances and gateways.

IBM's Personal Computing Division was acquired this year by Lenovo Group Limited,
the leading Personal Computer brand in Asia. Lenovo will continue to be the preferred
supplier of PCs to IBM and IBM will provide service and support for 5 years to Lenovo
PCs.

IBM Global Financing provides flexible and attractive financing and leasing programs
to fund Information Technology (IT) requirements of Indian customers. IGF helps
customers through greater access to the hardware, software, solutions and services
essential to compete in the global marketplace.

Customers can buy IBM products from its Business Partners. Also, IBM makes available
its range of 'Think' offerings and xSeries eServers through ShopIBM
(http://www.ibm.com/shop/in), an online product store.

India is an important market for IBM and the company has been making significant
investments from time to time.

IBM Innovation Center for Business Partners: (One among 10 facilities worldwide)
Independent Software Vendors are encouraged to port their solutions on IBM platforms
at this Center and develop Web based applications for Indian customers.

Linux Solution Center, Bangalore: (One among 7 facilities worldwide) The center
supports Business Partners and Independent Service vendors across the ASEAN / South
Asia region.

IBM Linux Competency Center, Bangalore: (One among only 4 facilities in Asia) This
center develops standards and embedded software for open source, undertaking high-end
research in the area for IBM Worldwide.

Software Innovation Center, Gurgaon: This state-of-the-art center combines IBM's

global experience and technology expertise to deliver e-business solutions for Indian
organisations and also the government through the e-Governance Centre. The center
offers IBM’s customers a range of services including technical consultation, proof of
concept and technical presentations, implementation planning, solution architecture,
application design and development, deployment, and education and training. The e-
Governance Centre, a part of this facility offers technology, support and infrastructure to
help governments and total service providers to design, develop, test and port prototypes
of e-Governance applications.

India Software Lab at Bangalore and Pune: The Software Lab in India develops,
enhances and supports key IBM Software products & technologies in collaboration with
other IBM labs world wide. Center for Advanced Studies at Bangalore was established at
the India Software Labs to allow universities access to IBM's leading-edge product
development and the supporting infrastructure, while IBM has the opportunity to work
with academic leaders and researchers on research projects.

High Performance On Demand Lab in India, Bangalore – This specialised software

and services lab in India to drive automation and virtualisation into the increasingly
complex IT infrastructures supporting the emerging economy of India. This is the first of
its kind lab for IBM in India, bringing specific high-value skills to help clients in India
and the surrounding region to enhance and optimise their IT resources to support the
growth of their businesses.
Engineering & Technology Services Center, Bangalore: This center provides
technology design services for advanced chips, cards and systems to companies in India
and across Asia.

India Research Laboratory , Delhi: (One among 8 facilities worldwide) IBM's India
Research Laboratory (IRL) focuses on areas critical to expanding the country's
technological infrastructure. It also has significant initiatives in Services and Sciences,
Information Management, User Interaction Technologies, e-Commerce, Life Sciences,
Distributed Computing and Software Engineering. Currently, IRL researchers are
working on several projects like bioinformatics, text mining, speech recognition for
Indian languages, natural language processing, grid computing, and autonomic
computing, among others.

Services Innovation and Research Center, Bangalore: will be an extended arm of

IBM's India Research Lab (IRL), headquartered in New Delhi. The Services Innovation
and Research Center (SIRC) was recently launched as an initiative that will work in close
collaboration with IBM's Global Services group to develop innovative technologies and
solutions that improve operational and delivery capabilities.

IBM also set up its Global Delivery Centres at Bangalore, Pune, Gurgaon and
Kolkata. They deliver "best-of-breed" technology solutions to IBM customers worldwide
covering middleware, e-business technologies, enterprise and web technologies, data
warehousing across functional areas like Supply Chain Operation Services, Financial
Management Services, Human Resource Services, Customer Relationship Management,
e-Business Integration, Application Management Services.

Global Business Solution Center in Bangalore - IBM further expanded its global
consulting delivery capabilities with the establishment of a first-of-a-kind Global
Business Solution Center. The center will allow IBM's more than 60,000 consultants to
collaborate and deploy reusable tools and assets in 55 key business areas such as
Consumer Driven Supply Chain Optimisation, Banking Risk and Compliance and
Product Lifecycle Management.

Business Transformation Outsourcing Centers at Bangalore, Delhi and Mumbai:

This center handles Business Transformation Outsourcing needs of IBM customers
worldwide. Some key areas of competence of this center are Customer Contact Centers,
Receivables Management, Telemarketing, Transaction Processing and Finance and
Accounting.

With the acquisition of Daksh eServices, one of Asia's leading business services
providers, with service delivery centers in India and Philippines, IBM further enhanced
the BTO service capability. With Daksh, IBM adds banking, insurance, retail, hi-tech
telecommunications and travel verticals to BTO India’s service capabilities.

Partnering India
IBM shares the belief that India can unleash its true potential only through making IT
available to and usable for large numbers of people. IBM's Community initiatives focus
on education and children and leverage its expertise in technology to address societal
issues. IBM has partnering relationships in India with a number of educational
institutions. IBM has also set up an IT Center in Mumbai in association with Victoria
Memorial School for the Blind to impart IT education to visually impaired people. IBM
KidSmart Early Learning program was launched to further strengthen IBM’s
commitment to community in India. This is the only program in India aimed at
introducing technology at the pre-school level in disadvantaged sections of society to get
a head start on their academic development through the use of age-appropriate software
developed by IBM. Tryscience is another community related programme launched, which
reinvents science learning, recreates the interactive experience of onsite visits, and
provides science projects as well as multimedia adventure field trips for museum visitors
- primarily children, their parents and teachers.

IBM India milestones

1951
IBM begins operations in India The business operated successfully until the
mid-1970s, when India’s Foreign Exchange Regulation Act (FERA) required
foreign owned companies to reduce their equity ownership to (in IBM’s case)
26%. For obvious reasons, IBM was unwilling to take that course of action
and so in 1978, the company ‘changed its mode of business operation’ and
Shanker Annaswamy
began to conduct business in India as an off-shore entity only, through a
Managing Director, IBM
Liaison Office, operated by a handful of local employees.
India
1992
IBM reenters Indian market through a joint venture
1995
Accredited ISO Tickit 9001 (recertified to ISO9001:2000 in year 2001).
1997
TISL Becomes Tata IBM Ltd, IBM Global Services launched - offers a range of
IT services from IBM including networking services, outsourcing, education,
system integration, consulting, software development and hardware design.
Solution Partnership Center is set up in Bangalore to help Indian ISVs port
application onto proven IBM hardware platforms like AS/400 and RS/6000.
1998
January
IBM School of Enterprise Wide Computing launched at Indian Institute of
Information Technology (IIIT), to offer short-term courses to the public and
credit courses on enterprise-wide computing to graduate and undergraduate
students.
April
IBM India Research Laboratory established in New Delhi, located in the
sprawling campus of Indian Institute of Technology (IIT).
1999
September
IBM India Limited formally launched - after government approves Tata's
divestment plan.
November
IBM India launches PC manufacturing in Pondicherry IBM Global Services
India achieves CMM Level 5 Rating.
2000
June
Global e-business software center set up in Gurgaon to offer IBM’s customers
a range of services including technical consultation, proof of concept and
technical presentations, implementation planning, solution architecture,
application design and development, deployment, and education and
training.
November
IBM Global Financing launched in India to provide flexible and attractive
financing and leasing programs to fund information technology (IT)
requirements of Indian customers.
2001
India Software Development Labs established in Pune and Bangalore to
develop, enhance and support key IBM products & technologies with a
committed investment of US $ 100 Million. The state-of-the-art facility is
playing an important role in IBM’s Linux Strategy, working closely with the
worldwide Linux Technology Centre.
2002
June
IGSI recognized as the "Top MNC Software Services Exporter" and "Top
Foreign Equity Company" in Karnataka for Year 2001-02 by Software
Technology Parks of India (STPI), Bangalore Chapter.
July
IGSI has also been also recognized as ‘Distinguished IT Exporter' for 2001-
02 by MAIT.
July
Dataquest, India's leading trade magazine has also rated IGSI as the Top
MNC Software Services Exporter for Year 2001-2002.
November
IGSI Exports Services has also been successfully assessed at People
Capability Maturity Level 5 (version 2.0) by SEI, one of the few organisations
in the world to gain this achievement.
2003
January
IBM India Research Labs launches a "Technology Center" at its facilities to
showcase business applicability of cutting edge technologies to organisations
in India and ASEAN.
May
IBM Corporation announced the establishment of a new center in Bangalore,
India to provide technology design services for advanced chips, cards and
systems to companies in India and across Asia.
May
IBM India announced the launch of the 'India Smart Centre', a virtual toll-
free service centre to provide cutting edge services and support to the small
and medium businesses in metros and small towns. The center, the first one
of its kind, will provide easy to use repair and restoration services for IBM
desktops, and notebooks.
Regional General Manager's Page
Shanker Annaswamy is Managing Director, IBM India Private Limited, and Regional
General Manager of IBM in India/South Asia. Appointed to this leadership position in
July, 2004, Mr. Annaswamy is responsible for all of IBM’s sales, marketing, services and
global delivery operations in the India/South Asia region, including operations in
Bangladesh, Nepal and Sri Lanka. Today, IBM in India/South Asia employs the
company’s largest population outside of the United States. India remains one of the
fastest growing countries for IBM, recording consistent double-digit revenue growth over
the past five years, and has emerged as a strategic location within the company's global
services delivery network.

In his 30 years of experience Mr. Annaswamy has held various senior management
positions in world renowned corporations, covering areas such as product management,
project management, manufacturing operations, quality and profit & loss responsibility.
Prior to joining IBM, he was the President and Chief Executive Officer for GE Medical
Systems, South Asia, and Managing Director, Wipro-GE Medical Systems. He also held
the position of Adviser with the Ministry of Health, Sultanate of Oman, for a period of
three years in the mid-1990s. Mr. Annaswamy began his career with Philips Medical
Systems.

Mr. Annaswamy has held leadership roles in a number of industry forums. He currently
serves as the Chair of the Confederation of Indian Industry’s (CII) National Committee
on Intellectual Property Owners, a role he has held since 2007. Mr. Annaswamy was an
elected member of Nasscom's Executive Council from 2004-2008. He also served as the
Co-chair of CII’s advisory committee on its National Innovation Mission. In 2009,
BusinessWeek listed Mr. Annaswamy among India’s 50 Most Powerful People.

Under Mr. Annaswamy’s leadership, IBM in India/South Asia has earned appreciation
from a wide variety of government and industry bodies for its progressive employment
practices and market leadership. Recent recognition includes the 2008 National Award
for the “Best Employer of People with Disabilities” from the Vice President of India. In
2007, IBM India received recognition as the overall best company from the Indo
American Chamber of Commerce.

Mr. Annaswamy earned a Bachelor of Engineering degree (B.E) in Electronics and

Communication from Madras University and a Diploma in Business Management
Education from the All India Management Association, New Delhi. He enjoys cricket,
plays tennis, and is a fan of Indian classical music. He and his wife, Jayashree, have two
children.
IBM Company Report
January 2003 to December 2007
27 April 2009 Page: 1
IBM
Company Profile
Company Profile: International Business Machines Corporation (IBM) is an
information
technology (IT) company. The Company?s major operations include a Global
Technology
Services (GTS) segment, a Global Business Services (GBS) segment, a
Systems and
Technology segment, a Software segment and a Global Financing segment. In
February
2008, the Company acquired Arsenal Digital Solutions and Net Integration
Technologies Inc.
In January 2008, IBM announced that it has completed its acquisition of
Cognos
Incorporated. In January 2008, IBM acquired XIV, a privately held storage
technology
company based in Tel Aviv, Israel. In September 2007, IBM completed the
acquisition of
DataMirror Corporation. In August 2007, IBM acquired WebDialogs, Inc. In
April 2008, the
Company completed the acquisition of Telelogic AB, Diligent Technologies,
FilesX and
InfoDyne Corporation. In July 2008, the Company acquired Platform Solutions,
Inc.
Website: www.ibm.com
Company Location: USA > New York > Armonk (NY)
Company Turnover: 103630
Report Contents
This report provides analysis of 266 investment projects from IBM recorded
by fDi Markets
between January 2003 and December 2007.
Company Contacts
Contact Person Position
David J. Kappos Vice President
Charles L. Prow Managing Partner, Government, IBM Global Business S
Jim Larkin Spokesperson
Cordelia Chung General Manager, IBM ASEAN
Gustavo Méndez Director (Spanish-speaking South America [SSA]), IT S
Dariusz Fabiszewski General Director (Poland)
Irene Greif Director, Center for Social Software
Anne Fitzsimons Country Manager, Integrated Technology Services, IBM
Suryo Suwignjo President, IBM Indonesia
Milos Djurkovic Head (Macedonia)
Bob Greenberg General Manager IT Optimization
Willy Chiu Vice President IBM High Performance On Demand Solu
Philippe Jarre General Manager, Global Business Continuity and Resi
Services
John Twine General Manager (Australia-New Zealand), Integrated T
Services
Bruno Di Leo General Manager, Growth Markets
Guruduth Banavar Director (India), Research Laboratory
27 April 2009 Page: 2
Ponani Gopalakrishnan Vice President (India), Software Lab
Nick Donofrio Executive Vice President, Innovation and Technology
Larry Longseth Senior Executive (Colorado)
Georg Haberl Spokesperson, IBM Austria
Sharon Nunes Vice President, Big Green Innovations
Barry Burk Vice President, Healthcare Industry, IBM Canada
Rajesh Nambiar Vice-President, Global Delivery, IBM India
Kirill Korniliev Country General Manager (Russia)
Ou Shian Waei Managing Director (Malaysia)
Sanjeev Nagrath Global Leader, Supply Chain Management, IBM Global
Services
Steve Mills Senior Vice President, IBM Software
Takreem El Tohamy General Manager (Middle East, Egypt & Pakistan)
Nipun Mehrotra Director (India & South Asia), Global Technology Servic
Dave Jursik Vice President, Sales, IBM Deep Computing
Ricky Castillo Business Development Manager (Philippines), IBM Dak
Teresa Lim Managing Director, IBM Singapore
Panini Dwivedi Country Manager (India), WebSphere, Software Group
Shanker Annaswamy Managing Director (India & South Asia)
Zhou Weikun President (Greater China)
Daniel Dias Director, India Research Laboratory
Dr. Robert Eades Centre Manager (Indianapolis)
Norbert Dick General Manager, Insurance Industry
Lee Puay Eng Director (Vietnam)
Sam Palmisano Chief Executive Officer
The contacts are identified at the time of project announcements using publicly available sources.
Contacts are subject to
change over time. Financial Times Ltd takes no responsibility for the accuracy or otherwise of the contacts.
Analysis
Destination World Region
27 April 2009 Page: 3
Leading Destination Regions Projects Capex (USD) Jobs
Asia-Pacific 116 4564.63 34365
Western Europe 61 2124.44 6342
Rest of Europe 25 1016.44 4115
North America 24 1157.07 7185
Latin America & Caribbean 20 700.1 4721
Africa 12 438.7 2507
Middle East 8 125.9 987
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Destination Country
27 April 2009 Page: 4
Leading Destination Countries Projects Capex (USD) Jobs
India 34 707.38 12733
China 33 2877.8 12745
Canada 13 376.27 2894
Ireland 12 417.548 1215
USA 11 780.8 4291
France 11 612 587
Brazil 11 494.7 2959
Spain 8 258.44 860
Japan 8 186 1316
Taiwan 7 94.2 804
Other Destination Countries 118 3322.14 19818
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Destination State
Leading Destination States Projects Capex (USD) Jobs
Karnataka 13 151.96 3107
Ireland 12 417.548 1215
Beijing Municipality 9 319 2338
Maharashtra 8 243.8 3716
Kanto 8 186 1316
Sao Paulo 7 349.6 1738
Shanghai Municipality 7 211.5 1904
Mediterranee 6 399.7 336
Guangdong 5 1928.2 5155
Poland 5 232.8 611
27 April 2009 Page: 5
Other Destination States 186 5687.17 38786
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Destination City
Leading Destination Cities Projects Capex (USD) Jobs
Bangalore 13 151.96 3107
Beijing 9 319 2338
Shanghai 7 211.5 1904
Sao Paulo 5 185.4 522
Dublin 5 173.553 593
Barcelona 5 48.74 190
Shenzhen 4 1897.2 4840
Pune 4 171.8 3076
Tokyo 4 125.6 624
Mulhuddart 4 88.57 402
Other Destination Cities 206 6753.95 42626
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Industry Sector
27 April 2009 Page: 6
Leading Industry Sectors Projects Capex (USD) Jobs
Software & IT services 215 6974.58 45233
Business Machines & Equipment 31 609.03 8255
Semiconductors 9 2074.67 4030
Business Services 4 72.8 2064
Communications 2 250.1 154
Electronic Components 2 120.6 298
Financial Services 2 21.4 123
Space & Defence 1 4.1 65
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Industry Cluster
27 April 2009 Page: 7
Leading Industry Clusters Projects Capex (USD) Jobs
ICT & Electronics 232 9547.8 53948
Financial Services 11 237.6 1884
Professional Services 5 79 2133
Life sciences 4 63.51 311
Retail Trade 4 6 946
Environmental Technology 3 45.04 248
Transportation, Warehousing & Storage 2 66.43 335
Industrial 2 51.6 269
Energy 2 16.1 73
Wood, Apparel & Related Products 1 14.2 75
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Business Activity
Leading Business_Activities Projects Capex (USD) Jobs
Design, Development & Testing 94 2522.96 25287
ICT & Internet Infrastructure 36 3312.54 2422
Research & Development 27 613.77 3096
Technical Support Centre 22 400.35 8032
Sales, Marketing & Support 17 199.1 1115
Business Services 15 219.2 1150
Shared Services Centre 12 177.17 5147
Education & Training 12 73.641 875
Headquarters 10 161.48 1149
Manufacturing 8 2360.27 8229
27 April 2009 Page: 8
Other Industry Business Activities 13 86.8 3720
Jobs and Capex data not captured for all projects. Source: fDi Intelligence from Financial Times Ltd
Project Profiles
February 2009 - Software & IT services investment in Japan
IBM is investing in the city of Yamato (Kanto) , Japan in the Software & IT
services sector in
a Research & Development project
IBM Japan has announced that it plans to open a business solution center to
promote new
technologies that help save energy used to run computer equipment and
reduce hardware
management costs. The center will open up at the firm's Yamato R&D
laboratory in Japan.
Teaming up with automakers and electronics manufacturers, the center will
study how to
make the best use of advanced technologies. IBM Japan intends to use the
results of these
efforts to win system development projects.
February 2009 - Business Machines & Equipment investment in
Nigeria
IBM is investing in Nigeria in the Business Machines & Equipment sector in a
Manufacturing
project
IBM has concluded plans to build a production plant for software and
hardware computers in
Nigeria, with an aim to attract more Nigerians both at home and abroad to
work.
February 2009 - Software & IT services investment in Brazil
IBM is investing in Brazil in the Software & IT services sector in a Sales,
Marketing &
Support project
IBM plans to relocate redundant workers from its US based operations to its
international
operations. The company has established the ??project match?? scheme to
help employees
locate potential job opportunities in growth markets where their skills are in
demand. One of
the relocation countries is Brazil. The company is an information technology
(IT) company.
The majority of the company?s operations in Brazil are related to software
infrastructure.
January 2009 - Business Machines & Equipment investment in
Vietnam
IBM is investing in the city of Ho Chi Minh (Ho Chi Minh) , Vietnam in the
Business Machines
& Equipment sector in a Sales, Marketing & Support project
U.S. based IBM has inaugurated a new office in HCM City as a commitment to
continue
developing their business in VietNam. The new facility, which is located at Sai
Gon Trade
Centre, triples the size of the former one in Diamond Plaza. The new office is
equipped with
Internet Protocol telephony, wireless LANs, and a mobile office system,
allowing sales staff
to connect with their colleagues and receive information when needed. The
office will run
business operations and serve the increasing demands of clients in southern
VietNam. IBM
provides a complete range of products and services in Vietnam. These
include personal
27 April 2009 Page: 9
systems, Intel-based servers, midrange servers, UNIX systems, networking,
warranty/maintaince, system intergration.
Domestic Market Growth Potential, Skilled workforce availability
January 2009 - Software & IT services investment in USA
IBM is investing in the city of Dubuque (IA) (Iowa) , USA in the Software & IT
services sector
in a Technical Support Centre project , creating 1,300 jobs
IBM will bring a new technology service delivery center and up to 1,300 jobs
to Dubuque,
Iowa. The center will provide operational support, including maintenance and
monitoring of
computer hardware and software systems, to IBM clients in the U.S. and
around the world.
IBM hopes to have up to 1,300 employees in place by the end of 2010.
Regulations or business climate, Skilled workforce availability
January 2009 - Software & IT services investment in USA
IBM is investing in the city of Lansing (MI) (Michigan) , USA in the Software &
IT services
sector in a Design, Development & Testing project , creating 100 jobs
Armonk, N.Y.-based technology company IBM will open a global delivery
center in East
Lansing, on the campus of Michigan State University. The office will develop
applications
and provide support to help modernize older IT systems for governments,
universities and
other clients. Also, IBM will collaborate with Michigan State professors to
educate students
on application development techniques.
November 2008 - Software & IT services investment in USA
IBM is investing in the city of Littleton (MA) (Massachusetts) , USA in the
Software & IT
services sector in a Design, Development & Testing project , creating 2,200
jobs
IBM has opened a software laboratory in Littleton, Massachusetts that will
focus on the
development of IBM software for industries including biotech, finance,
healthcare, retail,
transportation, and energy. Approximately 1,200 IBM employees will move to
the new
laboratory but the center will employ 3,400 employees after its completion in
2010. It will
include a briefing center for demonstrating IBM software and hardware to
organizations. It
will also have a production lab for the testing of software. IBM has acquired
12 companies in
Massachusetts since 2003. The new laboratory will bring all these together in
a single
location. The Massachusetts Economic Assistance Coordinating Council has
approved $5m
in state and local tax breaks for the center.
November 2008 - Software & IT services investment in Uruguay
IBM is investing in Uruguay in the Software & IT services sector in a Customer
Contact
Centre project , creating 120 jobs
27 April 2009 Page: 10
IBM is expanding its operations in Uruguay by hiring 120 new workers who
will focus on
providing BPO services for international firms. IBM Uruguay has increased its
workforce by
40% this year and now employs 450 professionals.
November 2008 - Software & IT services investment in Spain
IBM is investing in the city of Barcelona (Cataluna) , Spain in the Software &
IT services
sector in a Business Services project
US group IBM has unveiled plans to establish a new Business Intelligence
Centre of
Competence in Barcelona, Spain.
November 2008 - Software & IT services investment in Hungary
IBM is investing in the city of Szekesfehervar (Hungary) , Hungary in the
Software & IT
services sector in a ICT & Internet Infrastructure project , creating 200 jobs
U.S. based IBM plans to hire more staff for its data processing and operating
system and
network support centre in Hungary. The firm employs around 800 staff at its
facility at the
Videoton Industrial Park in Székesféhervár. However, the company is looking
to expand the
facility to accommodate for up to 1000 new staff. The expansion is scheduled
to be
completed early next year. The services that IBM provides in its IT center
vary from the
operating system support, to data storage and management and network
monitoring on
varying platforms.
October 2008 - Software & IT services investment in UK
IBM is investing 3.52 Mn $ in the city of Greenock (Scotland) , UK in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM plans to open a new data center by early next year in Scotland intended
for mediumsize
businesses. The data center will be located in the city of Greenock where IBM
already
has services-related facilities. The center will have efficient cooling, backup
diesel
generators, 24-hour security as well as resilient Internet connections. IBM will
spend £2
million (US$3.52 million) on the design and building of the data center and is
scheduled to
open in January 2009.
October 2008 - Software & IT services investment in Argentina
IBM is investing in Argentina in the Software & IT services sector in a
Technical Support
Centre project
IBM has announced it has opened three new Global Delivery Centers in
Argentina, entailing
a US$60 million investment over ten years. Argentina has been selected by
IBM as one of
the four countries in the world to deploy its Global Delivery Centers, as part
of the company's
strategy to become a globally integrated enterprise. The three new global
delivery centers
located in Argentina serve more than 20 countries around the world. Services
include server,
database, network and storage monitoring and support based on global
practices, processes
and methodologies.
27 April 2009 Page: 11
October 2008 - Software & IT services investment in Italy
IBM is investing in Sardegna, Italy in the Software & IT services sector in a
Research &
Development project , creating 10 jobs
IBM has opened a research centre in southern Sardinia, Italy. The new centre
which was
launched in cooperation with an Italian institute of R & D (Sardegna
Ricerche), will employ
10 experts.
October 2008 - Software & IT services investment in UAE
IBM is investing in the city of Dubai (Dubai) , UAE in the Software & IT
services sector in a
Design, Development & Testing project
Technology giants IBM and Intel have jointly opened a HPC Competency
Centre at IBM?s
Dubai Internet City building, which will provide academic institutions and
businesses with a
centre to test and fine tune applications for HPC environments. The centre is
expected to
attract interest from industry sectors such as energy, financial services and
digital media.
The centre is running a cluster of ten IBM high performance servers, powered
by Intel
Stokely dual socket 3GHz processors.
October 2008 - Software & IT services investment in Poland
IBM is investing 30.00 Mn $ in the city of Gdánsk (Poland) , Poland in the
Software & IT
services sector in a Business Services project , creating 100 jobs
IBM plans to invest US$30 million in a new consulting and R&D centre to be
located
Gdansk; Poland. The new facility is expected to provide work for 100
consultants. The
completion of the facility is scheduled for November 2008. The Company?s
major operations
include a Global Technology Services (GTS) segment, a Global Business
Services (GBS)
segment, a Systems and Technology segment, a Software segment and a
Global Financing
segment.
September 2008 - Software & IT services investment in USA
IBM is investing in the city of Cambridge (MA) (Massachusetts) , USA in the
Software & IT
services sector in a Design, Development & Testing project
IBM has opened a new ?Center for Social Software? in Cambridge, Mass. The
center was
established to help organizations collaborate across distributed, global
enterprises. It will
feature design and demonstration spaces to showcase social software
systems and will also
combine expertise of IBM?s research labs in Hawthorne and Yorktown, N.Y.,
along with labs
in San Jose, Israel, Japan and China. The center is also teaming up with IBM?s
global
business services, software group, and office of the chief information officer
in a ?venture
research? methodology, which is designed to move projects rapidly through a
pipeline from
idea conception, through swift proof-of-concept and initial evaluation, to
deployment.
27 April 2009 Page: 12
September 2008 - Electronic Components investment in Egypt
IBM is investing in Egypt in the Electronic Components sector in a Research &
Development
project
IBM is to establish a nanontech research centre in Egypt. The
Nanontechnology centre is
intended to be a world-class facility for both local engineers and scientists,
and IBM?s own
researchers, to develop nanotechnology programs. The centre will work in co-
ordination with
other IBM Research efforts in the field in Switzerland and the US.
September 2008 - Software & IT services investment in Egypt
IBM is investing in Egypt in the Software & IT services sector in a Design,
Development &
Testing project , creating 1,000 jobs
IBM's Global Services Delivery Centre in Egypt which is already operating
with a staff of 100
providing a range of business consulting and software development services
to clients in the
Middle East, Europe and the US intends to expand the centre to around one
thousand
employees over the next few years.
September 2008 - Business Machines & Equipment investment in
Macedonia
IBM is investing in the city of Skopje (Macedonia) , Macedonia in the Business
Machines &
Equipment sector in a Sales, Marketing & Support project
IBM, the world's top provider of computer products and services, has opened
a
representative office in Skopje, Macedonia.
September 2008 - Software & IT services investment in Indonesia
IBM is investing in the city of Jakarta (Java) , Indonesia in the Software & IT
services sector
in a Shared Services Centre project
IBM has announced the launch of a Business Continuity and Resiliency
Services (BCRS)
center in Jakarta, Indonesia. The center offers a solution to help businesses
keep their
operations safe from any business disruption and increase productivity in
their workforce.
The center is spread over an area of 600 square meters with a 200 square
meter server
room. The working space area will initially be able to support a capacity of up
to 40 seats,
offering workforce continuity for clients. The center also provides a workplace
area to help
support general business, front-office and back-office operations, and call
center operations.
September 2008 - Software & IT services investment in Brazil
IBM is investing in the city of Sao Paulo (Sao Paulo) , Brazil in the Software &
IT services
sector in a ICT & Internet Infrastructure project
IBM has opened a new cloud computing center in Sao Paulo, Brazil. Clients in
Brazil will use
the new center to generate business such as massive scale collaboration
programs. The
cloud computing service enables users to remotely access a vast computing
resource that
27 April 2009 Page: 13
can be tapped on-demand to deliver applications and services as they're
requested. Cloud
computing also improves energy efficiency because of its principle as a
shared
infrastructure.
September 2008 - Software & IT services investment in Vietnam
IBM is investing in the city of Ha Noi (Ha Noi) , Vietnam in the Software & IT
services sector
in a ICT & Internet Infrastructure project
IBM has opened a new cloud computing center in Hanoi, Vietnam. The cloud
computing
service enables users to remotely access a vast computing resource that can
be tapped ondemand
to deliver applications and services as they're requested. Cloud computing
also
improves energy efficiency because of its principle as a shared infrastructure.
September 2008 - Software & IT services investment in India
IBM is investing in the city of Bangalore (Karnataka) , India in the Software &
IT services
sector in a ICT & Internet Infrastructure project
IBM has opened a new cloud computing center in Bangalore, India. In India,
clients such as
mid-market vendors, universities, telecommunications companies and
government bodies
will be able to access the center for the resources they need to pilot cloud
infrastructures
and applications, and deliver new services to their customers.
September 2008 - Software & IT services investment in Ireland
IBM is investing 43.22 Mn $ in the city of Dublin (Ireland) , Ireland in the
Software & IT
services sector in a ICT & Internet Infrastructure project , creating 34 jobs
IBM has announced an investment of ?30m with support from IDA Ireland into
a next
generation ?Green? Data Centre and Global Supply Chain Hub in Dublin,
Ireland. The new
facility, which is fully owned and operated by IBM, will provide a wide range
of new and cost
effective IT services for the Irish marketplace. It will also serve as a Global
Supply Chain
Hub for delivering IBM Software to clients in 84 countries worldwide. The
investment will
create an additional 34 jobs at the site.
September 2008 - Software & IT services investment in South Korea
IBM is investing in the city of Seoul (Seoul) , South Korea in the Software & IT
services
sector in a ICT & Internet Infrastructure project
IBM has opened a new cloud computing center in Seoul, Korea. In Korea, the
new center
will provide architecture skills and pilot projects for industries such as
banking,
telecommunications, government, education, and information technology
hosting services.
The cloud computing service enables users to remotely access a vast
computing resource
that can be tapped on-demand to deliver applications and services as they're
requested.
Cloud computing also improves energy efficiency because of its principle as a
shared
infrastructure.
27 April 2009 Page: 14
August 2008 - Software & IT services investment in China
IBM is investing in the city of Beijing (Beijing Municipality) , China in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Beijing,
China.
August 2008 - Software & IT services investment in Japan
IBM is investing in the city of Tokyo (Kanto) , Japan in the Software & IT
services sector in a
ICT & Internet Infrastructure project
IBM will unveil its eighth cloud computing center worldwide in Tokyo, Japan.
The center will
give large enterprise customers, universities and governments immediate
access to the
resources they need to o pilot cloud infrastructures and applications, and
deliver new and
innovative services to their customers.
August 2008 - Software & IT services investment in Poland
IBM is investing in the city of Warszawa (Poland) , Poland in the Software & IT
services
sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Warsaw,
Poland.
August 2008 - Software & IT services investment in South Africa
IBM is investing in South Africa in the Software & IT services sector in a ICT &
Internet
Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in South
Africa.
August 2008 - Software & IT services investment in Italy
IBM is investing in the city of Milano (Lombardia) , Italy in the Software & IT
services sector
in a ICT & Internet Infrastructure project
IBM plans to build a Business Resilience service delivery center at its site in
Milan, Italy. The
center will feature so-called cloud computing infrastructure, through which
customers will be
able to tap various services designed ensure the continuity of their
computing operations in
27 April 2009 Page: 15
the event of a power outage, disaster, or other contingency.
August 2008 - Software & IT services investment in China
IBM is investing in the city of Shanghai (Shanghai Municipality) , China in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in
Shanghai, China.
August 2008 - Software & IT services investment in USA
IBM is investing in North Carolina, USA in the Software & IT services sector in
a ICT &
Internet Infrastructure project
IBM plans to build a $360mln state-of-the-art data center data center at its
facility in
Research Triangle Park (RTP), North Carolina, USA. The data center will
include new
technologies and services that will enable IBM to deliver Cloud Computing
capabilities to
clients. The centre will be 5574sqm and can be expanded in standard
modular increments.
August 2008 - Software & IT services investment in Hong Kong
IBM is investing in Hong Kong, Hong Kong in the Software & IT services sector
in a ICT &
Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Hong
Kong.
August 2008 - Software & IT services investment in India
IBM is investing in the city of Mumbai (Maharashtra) , India in the Software &
IT services
sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Mumbai,
India.
August 2008 - Software & IT services investment in Germany
IBM is investing in the city of Köln (Nordrhein-Westfalen) , Germany in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
27 April 2009 Page: 16
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Cologne,
Germany.
August 2008 - Software & IT services investment in France
IBM is investing in the city of Paris (Ile-de-France) , France in the Software &
IT services
sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Paris,
France.
August 2008 - Software & IT services investment in Belgium
IBM is investing in the city of Bruxelles (Reg. Bruxelles-Cap.) , Belgium in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM plans to build a Business Resilience service delivery center at its site in
Brussels,
Belgium. The center will feature so-called cloud computing infrastructure,
through which
customers will be able to tap various services designed ensure the continuity
of their
computing operations in the event of a power outage, disaster, or other
contingency.
August 2008 - Software & IT services investment in Brazil
IBM is investing in the city of Rio de Janeiro (Rio de Janeiro) , Brazil in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Rio de
Janeiro, Brazil.
August 2008 - Software & IT services investment in Turkey
IBM is investing in the city of Izmir (Turkey) , Turkey in the Software & IT
services sector in a
ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Izmir,
Turkey.
August 2008 - Software & IT services investment in UK
IBM is investing in the city of London (South East (UK)) , UK in the Software &
IT services
sector in a ICT & Internet Infrastructure project
27 April 2009 Page: 17
IBM plans to build a Business Resilience service delivery center at its site in
London, in the
UK. The center will feature so-called cloud computing infrastructure, through
which
customers will be able to tap various services designed ensure the continuity
of their
computing operations in the event of a power outage, disaster, or other
contingency.
August 2008 - Software & IT services investment in USA
IBM is investing in the city of Iselin (NJ) (New Jersey) , USA in the Software &
IT services
sector in a ICT & Internet Infrastructure project
IBM has announced it is investing US$300 million to construct 13 Business
Resilience
service delivery centers in 10 countries in 2008, increasing its ability to
address surging
demand from businesses and governments from around the world seeking to
keep their
operations safe from disruption. One of the centers will be located in Iselin,
New Jersey
(Metro Park).
August 2008 - Software & IT services investment in Australia
IBM is investing 10.80 Mn $ in the city of Ballarat (Victoria) , Australia in the
Software & IT
services sector in a Design, Development & Testing project , creating 300
jobs
U.S. based IBM has announced it will open a $10.8 million IT Services Centre
in Ballarat.
The centre, which will provide jobs for 300 staff over the next five years, will
host specialist
ICT services, software application development, ICT support and consulting
for IBM?s global
operations, servicing clients across the US, Europe and the Asia Pacific. The
centre will be
based at the Ballarat Technology Park and be opened by the end of 2009.
The new site will
also leverage off the nearby Ballarat University.
ICT Infrastructure, Skilled workforce availability
July 2008 - Software & IT services investment in India
IBM is investing in the city of Pune (Maharashtra) , India in the Software & IT
services sector
in a Design, Development & Testing project
IBM has announced the opening of the IBM Service Management Center of
Excellence,
which will act as the regional hub for IBM Tivoli service management software
and strategy.
The center has been designed to develop specialized focus and skills in high
value areas
such as telecom, security, automation, and asset management. This first of
its kind center
has been established in Pune, India.
Domestic Market Growth Potential, Skilled workforce availability, Universities
or researchers
July 2008 - Software & IT services investment in China
IBM is investing in the city of Shanghai (Shanghai Municipality) , China in the
Software & IT
services sector in a Design, Development & Testing project
27 April 2009 Page: 18
IBM has opened a Banking Center of Excellence in Shanghai, China. The
newly established
branch aims to support China's banking clients and to address their issues in
core banking
systems and payments. The Center will bring together world-class business
and technology
experts to design and implement next generation payment and core banking
systems for
China's leading banks.
July 2008 - Software & IT services investment in France
IBM is investing in the city of Lyon (Centre-Est (FR)) , France in the Software
& IT services
sector in a Education & Training project
Cognos, the leader in business intelligence and corporate performance
management and a
subsidiary of IBM, has announced the opening of a second training centre in
Lyon.
July 2008 - Software & IT services investment in India
IBM is investing in the city of Mumbai (Maharashtra) , India in the Software &
IT services
sector in a Education & Training project
IBM India has opened a center for Service Management and Engineering in
association with
S.P.Jain Institute of Management, Mumbai at the institute's campus. The
center will simulate
and analyze innovative service delivery related processes, people and other
resources in the
areas of manufacturing, retail, telecom, Banking & Financial Services and
Technology
Services. The Center for Service Management & Engineering aims to provide
the basic skills
in the science of services to empower a whole new set of service sector
entrepreneurs. It will
also provide hands-on workshop for faculty and students comprising service
business
modeling, simulation & analysis, business process modeling and
management.
June 2008 - Software & IT services investment in UAE
IBM is investing in the city of Dubai (Dubai) , UAE in the Software & IT
services sector in a
Headquarters project
U.S. computer company International Business Machines Corp (IBM) has
decided to open
its main global headquarters in Dubai, UAE. The company originally had HQ in
Vienna,
Austria.
June 2008 - Software & IT services investment in Czech Republic
IBM is investing in the city of Prague (Czech Republic) , Czech Republic in the
Software & IT
services sector in a Headquarters project
U.S. computer company International Business Machines Corp (IBM) is to
move its Vienna
based headquarters responsible for its business in eastern Europe, the Near
East and Africa
to Prague, Czech Republic.
27 April 2009 Page: 19
June 2008 - Software & IT services investment in USA
IBM is investing 86.00 Mn $ in the city of Boulder (CO) (Colorado) , USA in the
Software & IT
services sector in a ICT & Internet Infrastructure project
IBM formally opened its energy efficient data center expansion in Boulder,
Colorado. The
Armonk. N.Y.-based company spent $86 million adding on to its existing data
center at its
3,400-employee Global Services hub, making it IBM's greenest in North
America and its
largest worldwide. Building the 70,000 square feet of new server space,
bringing the
campus' total to nearly 300,000, square feet is part of a $350 million IBM
investment to make
the Boulder site more environmentally friendly.
June 2008 - Software & IT services investment in India
IBM is investing in the city of Bangalore (Karnataka) , India in the Software &
IT services
sector in a Technical Support Centre project
IBM has expanded its Global Innovation Center in Bangalore, India for start-up
companies,
software developers, independent software vendors, IT professionals, and
academics. The
center will provide technology, education and consulting support, and access
to IBM sales
and marketing staff.
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Steel Authority Of India
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated
iron and steel maker, producing both basic and special steels for domestic construction, engineering,
power, railway, automotive and defence industries and for sale in export markets.

Ranked amongst the top ten public sector

companies in India in terms of turnover, SAIL
manufactures and sells a broad range of steel
products, including hot and cold rolled sheets and
coils, galvanised sheets, electrical sheets,
structurals, railway products, plates, bars and rods,
stainless steel and other alloy steels. SAIL produces
iron and steel at five integrated plants and three
special steel plants, located principally in the eastern
and central regions of India and situated close to
domestic sources of raw materials, including the
Company's iron ore, limestone and dolomite mines.
The company has the distinction of being India’s
second largest producer of iron ore and of having
the country’s second largest mines network. This
gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which
are inputs for steel making.

SAIL's wide range of long and flat steel products are much in demand in the domestic as well as the
international market. This vital responsibility is carried out by SAIL's own Central Marketing Organisation
(CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four
regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices.
CMO’s domestic marketing effort is supplemented by its ever widening network of rural dealers who meet
the demands of the smallest customers in the remotest corners of the country. With the total number of
dealers over 2000 , SAIL's wide marketing spread ensures availability of quality steel in virtually all the
districts of the country.

SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of CMO,
undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel plants.

With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's
Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.

SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which
helps to produce quality steel and develop new technologies for the steel industry. Besides, SAIL has its
own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and
Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in
Kolkata. The Environment Management Division and Growth Division of SAIL operate from their
headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

Major Units

Integrated Steel Plants

• Bhilai Steel Plant (BSP) in Chhattisgarh
• Durgapur Steel Plant (DSP) in West Bengal
• Rourkela Steel Plant (RSP) in Orissa
• Bokaro Steel Plant (BSL) in Jharkhand
 • IISCO Steel Plant (ISP) in West Bengal
Special Steel Plants
• Alloy Steels Plants (ASP) in West Bengal
• Salem Steel Plant (SSP) in Tamil Nadu

• Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiary

• Maharashtra
Elektrosmel
t Limited
(MEL) in
Maharashtra
Click here for further details
Joint Ventures
• NTPC SAIL Power Company Pvt. Ltd (NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National
Thermal Power Corporation Ltd. (NTPC Ltd.); manages the captive power plants at
Rourkela, Durgapur and Bhilai with a combined capacity of 314 megawatts (MW). It
has installed additional capacity by implementation of 500 MW (2 x 250 MW Units)
power plant at Bhilai. The commercial generation of 1st Unit has commenced in
April’2009 and the 2nd Unit in October 2009

• Bokaro Power Supply Company Pvt. Limited (BPSCL)

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in
January 2002 is managing the 302-MW power generating station and 660 tonnes per
hour steam generation facilities at Bokaro Steel Plant. BPSCL has proposed to
expand its capacity by installing 2x250 MW coal based thermal unit at Bokaro. In
addition, construction activities are underway for installation of 9th Boiler (300T/Hr) &
36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro.

• Mjunction Services Limited

A 50:50 joint venture between SAIL and Tata Steel formed in 2001. This company
promotes e-commerce activities in steel and related areas. Newly added services
include e-Assets sales, Events & Conferences, Coal Sales & Logistics, Publications
etc...

• SAIL-Bansal Service Center Ltd.

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote
a service centre at Bokaro with the objective of adding value to steel.

• Bhilai JP Cement Ltd

SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to
set up a 2.2 MT slag based cement plant at Bhilai. The clinker production has started
from December 2009; and the grinding unit has commenced trial runs since April
2010.

• Bokaro JP Cement Ltd

SAIL has incorporated another joint venture company with M/s Jaiprakash Associates
 Ltd to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. The project
implementation is under progress with commencement of cement production likely by
July’2011.

• SAIL&MOIL Ferro Alloys (Pvt.) Limited

SAIL has incorporated a joint venture company with M/s Manganese Ore (India) Ltd
on 50:50 basis to produce ferro-manganese and silico-manganese required for
production of steel..
• S&T Mining Company Pvt. Ltd
SAIL has incorporated a joint venture company with TATA Steel for joint acquisition &
development of coal blocks/mines. New indigenous opportunities for coking coal
development are being explored by the Joint Venture company for securing coking
coal supplies.
• International Coal Ventures Private Limited
Towards achieving the target of making steel PSUs self reliant in the area of coking
coal, a joint venture company has been incorporated comprising of five central PSU
companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited (CIL),
NTPC Limited and National Mineral Development Corporation (NMDC). The company
is scouting for coal properties in Australia, Mozambique and other target countries.

Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company.
However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significant operational and financial autonomy

A Rich Heritage A flashback album of SAIL

The Precursor

SAIL traces its origin to the formative years of an emerging nation - India. After independence the
builders of modern India worked with a vision - to lay the infrastructure for rapid industrialisaton of the
country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was
set up on January 19, 1954.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at
Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel
Ministry. From April 1957, the supervision and control of these two steel plants were also transferred
to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July
1956, and ultimately to Ranchi in December 1959.

The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961.
The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the
Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT.
A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and
operate the steel plant at Bokaro.The second phase of Bhilai Steel Plant was completed in
 September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of
Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of
Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS.
Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur,
the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently
to 4MT in 1972-73.

Holding Company

The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing
industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis
the concept of creating a holding company to manage inputs and outputs under one umbrella was
mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on
January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing
five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant
and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company.

Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial
development of the country. Besides, it has immensely contributed to the development of technical
and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by
continuously providing the inputs for the consuming industry

The legal position

The statutory procedures for handling discipline and grievance issues introduced in October 2004
were widely criticised and were repealed in their entirety with effect from 6 April 2009. (Those in
Northern Ireland should note that the Employment Act 2008, which repealed th statutory procedures, is
not applicable there - the Department for Employment and Learning has published detailed guidance -
see Useful contacts below).

From 6 April 2009 the important provisions governing discipline and grievances at work are to be
found in:

• The Employment Act 2008

• The Employment Tribunals (Constitution and Rules of Procedure) (Amendment) Regulations
2008.

Numerous other pieces of legislation cross refer to discipline and grievance issues. Some important
examples include the:

• The Employment Rights Act 1996 as amended

• The Employment Rights Dispute Resolution Act 1998
• The Employment Relations Act 1999
• The Employment Rights Act 2004.

Our factsheet for CIPD members outlines the key changes from April 2009.
 • Go to our Discipline and grievance procedures: key changes factsheet
Employers’ own disciplinary, grievance and dismissal procedures and the Acas Code of Practice are
essential to ensure that good dispute handling behaviour is adopted.

The role of the Acas Code of Practice

The Acas Code of Practice Disciplinary and Grievance Procedures was revised to reflect the removal
of the statutory procedures and a new version1 came into force on 6 April 2009. CIPD endorses the
Code. Following it is crucially important for employers: an employment tribunal will consider whether
the employer has followed the Code and, if they have not, then the tribunal may adjust any awards
made by up to 25% for unreasonable failure to comply.

In situations where the trigger event occurs on or after 6 April 2009, an employment tribunal will
consider whether the employer has followed the Acas Code and, if they have not, then the tribunal
may adjust any awards made by up to 25% for unreasonable failure to comply.

CIPD members can find out more on the content of the Code, the legal aspects of this topic and likely
future developments from our FAQ on Discipline and grievances procedures in the Employment Law at
Work area of our website.

• Go to the Discipline and grievance procedures FAQ

Disciplinary policy and practice

Using the disciplinary process

There are two main areas where a disciplinary system may be used: capability/performance and
conduct.

Capability/performance

It is inevitable that at some stage all employers will encounter difficulties with the performance of their
employees in the workplace. Many employers will have a specific capability procedure to deal with
such matters. It is good practice and also more efficient that such issues are addressed informally, as
and when they arise. Only when informal options have been exhausted and where there is no
alternative should managers enter a more formal disciplinary or capability procedure.

Situations where an individual is unable to do their job because of ill-health may also fall into this
category. In these instances an employee should be dealt with sympathetically and offered support.
However, unacceptable levels of absence could still result in the employer making use of warnings.
See our factsheet on absence management for more information.

• Go to our Absence management factsheet

Conduct

Employee misconduct could range from continued lateness, failure to follow a reasonable
management instruction, abuse of the organisation’s computer system or Internet access, bullying
behaviour or creating a hostile work environment, through to theft, fighting and committing criminal
offences. The more grave offences may constitute gross misconduct. In all cases, even gross
misconduct, an employer should attempt to follow the recommendations in the Acas Code.
Stages of the process

If disciplinary action is to be taken, it should usually have three main stages:

• letter
• meeting
• appeal.

There must always be a full and fair investigation to determine the facts and to decide if further action
is necessary. The new Acas Code recommends at least these three steps in the majority of cases.
However, in some cases a second meeting stage may be appropriate.

Record-keeping

All records should be kept meticulously, as this will be vital should a case be taken to an employment
tribunal. The type of records that should be kept by employers are minutes of meetings, emails,
attendance notes, notes of telephone calls, copies of correspondence etc.

Handing disciplinary interviews

All line managers should be trained and supported so that they are able to carry out disciplinary
meetings with their team. The HR department should be able to assist them by providing a source of
advice on preparing for and conducting the interview and relevant legislation.

The key points to consider are:

• Ensure all the facts are investigated in advance (including consulting the individual’s personal
file for relevant information) and plan how the meeting is to be approached.
• Make sure the employee knows from the letter inviting them to the meeting why they have
been asked to attend and that they have a right to have a companion present.
• Make sure the individual has reasonable notice, ideally more than 72 hours, and that they
have a chance to arrange an appropriate representative if they wish.
• Provide appropriate statements from people involved in advance of the meeting, together with
any key information you intend to rely on.
• Make sure another member of management can be there to take detailed notes and help
conduct the interview.
• Never pre-judge the outcome of the interview before hearing the employee's perspective.
• Start the interview by stating the complaint to the employee and referring to appropriate
statements from people involved.
• Give the employee ample opportunity to put forward their side of the story and call any
supporting witnesses.
• Employers can also call witnesses, but they can only be in the room for the relevant part of
the interview – not the duration.
• Make use of adjournments: always take a break to consider and obtain any extra information
you need before reaching your decision. You can also take breaks if things become heated or
people are upset during the interview.
• Deliver the decision (and give reasons, taking into account any mitigating circumstances),
confirm review periods and ensure you give details of how to appeal.
• Confirm the decision in writing.
• It is important that everyone involved in disciplinary action understand the importance of
following the correct procedure, as even if the case against an employee seems proven, they
can still be deemed to have been treated unfairly if the correct procedures are not followed.
An individual is entitled to be accompanied by a work colleague or trade union official at formal
disciplinary and grievance interviews. It would be good practice for an employer also to offer this at
any purely investigatory meeting. Employers do not have to allow other companions (for example
family members or lawyers) but may do so if they wish.

Potential outcomes

No action

After the meeting, the employer may decide that no action is necessary. For example, if an employee
was unclear about what was expected from them and they agree to try to resolve the issue via
additional support or counselling.

Warnings

Alternatively, the employer may decide to give the employee a warning. An organisation’s policy
should outline exactly what warnings will be given, but the following are examples of warnings and
organisation may use:

• verbal/ oral warning (Acas no longer recommends this stage as part of a formal procedure,
but for cases of minor misconduct this will often be a reasonable method to prevent a problem
escalating.)
• first written warning/improvement notice
• final written warning.

Employers should specific a ‘life’ for formal disciplinary warnings after which they are disregarded for
disciplinary purposes. Typical timescales suggested in the Acas non statutory guidance for the types of
warning are:

• first written warning – 6 months

• final written warning – 1 year.

It may be appropriate for a warning to continue to be regarded for a longer period, provided the
timescale was specified in the organisation's disciplinary policy from the outset. The time period
employers select for warnings to remain current, and the penalties imposed, must be reasonable in all
the circumstances. For example, they must take into account the nature of the misconduct, the
employee's disciplinary record and be consistent with penalties imposed in similar cases. .

Dismissal

There are currently six potentially fair reasons for dismissal. These are given in our dismissal
factsheet.

• Go to our factsheet on Dismissal

Employers need to be sure that any decision to dismiss an employee will be seen as ‘reasonable’ by
an employment tribunal. The employer must follow the Acas Code prior to any dismissal and also have
been fair overall, for example by complying with internal procedures, treating employees consistently
and carrying out a proper investigation.
CIPD members can find out more from our FAQs on unfair dismissal and wrongful dismissal in the
Employment Law at Work area of our website.

• Go to our Unfair dismissal FAQs

• Go to our Wrongful dismissal FAQs

Grievance policy and practice

It is essential that grievances from employees are treated in the same fair manner and all line and
senior managers must be familiar with their organisation's grievance procedure.

There are a number of additional factors to bear in mind when dealing with grievances concerning
harassment. For further details see our factsheet on bullying and harassment in the workplace.

• Go to our Harassment and bullying at work factsheet

Handling grievances informally

Individuals should be encouraged to discuss ordinary, day-to-day issues informally with their line
manager. This helps concerns to be heard and responded to as soon as possible.

Where this has been unsuccessful, or circumstances make this route inappropriate, employers should
consider using mediation - more information can be found in our factsheet on that topic.

• See our factsheet on Mediation at work

If matters remain unresolved, they should be raised formally through the grievance procedure.

Handling grievances formally

Employees should also be aware of the formal route open to them, including:

• the three stages of the statutory procedure and any further elements of the organisation’s
additional procedures
• with whom to raise the complaint and appropriate sources of support
• timescales within which the organisation will seek to deal with the complaint
• details of the stages of the grievance procedure, for example, how a complaint may be raised
with the next level of management if a satisfactory resolution is not reached.

An employee should be given the right to be accompanied to grievance hearings by a colleague or

trade union representative as explained above.

As in disciplinary matters, record keeping is important and the Acas Code should be followed.

CIPD viewpoint

Ensuring that people are treated fairly and enabling them to work in a non-hostile environment are
important factors in the creation of a productive working environment. The CIPD believes that where
possible employers and employees should seek to resolve most matters that arise in the course of the
working relationship informally. This approach helps minor concerns to be resolved speedily without
the need to take recourse to formal action. It also limits disruption to work and reduces any personal
embarrassment in discussing issues of concern.
Disciplinary and grievance procedures are essential when informal mechanisms are ineffective, or
where they are inappropriate given the nature of the issue arising. These procedures can also help
prevent unnecessary staff turnover and absenteeism, as well as avoiding costly and time-consuming
tribunal cases.

It is essential that those implementing these procedures have the necessary training and guidance to
do so, in line not just with minimum legal obligations but also with the principles of fairness and natural
justice reflected in the Acas Code.