Baluchistan Wheels Limited

A CASE STUDY ON CONFLICT

Introduction

Pioneer of development of steel wheels in Pakistan

established In the year 1980

BWL exports its products to countries and also

caters to the demands of the domestic industry of the
country
Introduction

Customers

Hinopak Motors Ltd Pak Suzuki Motors Co. Ltd.

Ghandhara Nissan Indus Motor Co. Ltd.

Diesel Ltd
Ghandhara Industries Honda Atlas Cars Ltd.
Ltd
Sindh Engineering (Pvt) Dewan Farooque Motors Ltd.
Ltd
Master Motor Nexus Automotive (Pvt) Ltd
Corporation Ltd
Afzal Motors (Pvt) Ltd Sigma Motors

Al-Ghazi Tractors Ltd Adam Motors Company Ltd.

Millat Tractors Ltd Karakorum Motors (Pvt) Ltd

Case Study

The labor union present its charter of demand every

two years to ensure that the labors are not exploited

In the year 2009 the labor union decided that

management should raise the pay of factory workers
by at least 25%, increase the number and decrease
the working hours

Management turned down to the demands of pay-

raise and increase in number of labors.
Case Study

Management argued that labors are given hefty

bonuses 3-4 times in a year

Secondly the as the Economy is passing from

recession the company is not making attractive
profits as anticipated

The workers have doubts regarding the management

intentions.
Case Study

The management declined the demand considering

it needless and argued that if more workers get
recruited it will reduce the marginal productivity of
the workers

This crucial situation of conflict continued for 1

month

Labor union threatened to o on strike

Case Study

The management guaranteed them that once the

economic conditions prospers the management will
take solid steps to address and meet all the
grievances of the labors

But the labor union was insisting pay raise without

willing accept any conditions of the management

Directors were informed of this issue but they paid

no attention
Case Study

Directors informed management that at this stage

labors demand could not be realized

Labor union announced lockout and communicated

its decision

the management formed an ad-hoc committee to

review the matter and to resolve the conflict
Case Study

The leaders of union after showing some hesitation

agreed to enter into compromise with the
management.

Ad-hoc committee explained that it would be a

fruitless exercise if either party denied to
compromise

Undergoing a negotiation process the conflict was

resolved finally