Case of TE
An interesting case in recent times relates to an electronics company in Gujarat and provides illustrations of style, management attitudes and worker responses. It also confirms that 'the atmosphere and spirit of industrial relations in an undertaking is more important than any single device procedure or technique for promoting technology and productivity.
Tube Electronics Ltd. belongs to the Mehta group of industries and has two units in Baroda, Gujarat—one for manufacturing black and white picture tubes (B&.W unit) and the other for colour picture tubes (CTV unit). But it was originally set up as one unit by the Gujarat State Industrial Development Corporation (GSIPC) in 1978 as Gujarat Display Devices Ltd. (GDDL), with an installed capacity of 10,000 TV sets per month. However, its production rarely exceeded 2,500 units and fell once to as low as 940 units. The only union in the company was not affiliated, although it had links with the INTUC. In January 1982, the enterprise obtained the licence to expand into colour sets, but had no financial resources to implement it. Negotiations with financial institutions fell through and the idea of a joint venture was mooted. The collaborator selected was TUBE Jamnagar of the Mehta group.
It was proposed that the latter would put in 24 per cent, the GSIDC. 11 per cent, with the rest being with the public for a total project cost of Rs 70 crore. The new venture along with the old plant was taken over by TUBE on 12 August 1985, and a new management group took over. The company, TUBE Electronics, was registered as a subsidiary of TUBE Jamnagar from 1987. It was proposed to modernise the old plant and raise its production. The technical collaboration was arranged with Baron of Germany. Today, the turnover of the two units is approximately Rs 260 crore, employment is about 2,000 and a large export market has been created. In 1991, however, the B&W unit had to be closed down for some time...