Chetan Textile Mills (CTM) has initiated various employee welfare schemes for its employees since the day the mill began its operations. Due to its various welfare initiatives and socially responsible business practices, the organisation has developed an impeccable reputation. Majority of the regular workers in Chetan Mills had membership of Chetan Mills Mazdoor Sangh (CMMS), a non political trade union. CMMS had the welfare of its member as its guiding principle. Both CTM and CMMS addressed various worker related issues on a proactive basis. As a result no industrial dispute had been reported from the organization in the recent past.
These days majority of the employers deploy large number of contract labourers in their production processes. In an open economy survival of an organization depends on its competitiveness. In order to become competitive, an organization must be able to reduce cost and have exibility in employment of resources. Engaging workers through contractors (contract labourer) reduces the overall labour cost by almost 50%. Indian labour legislations make reduction of regular workers almost impossible, but organisations can overcome this limitation by employing contract labourers. Contract labourers neither get the same bene t as regular employees nor do they have any job security. According to various recent surveys, government owned public sector units and other departments are the biggest employers of contract labourers in the country. Contractors, as middle - men, often exploit the contract labourers, and these government organizations have failed to stop the exploitation.
Over time CTM started engaging a large number of contract labourers. At present, more than 35% of CM’s workers (total 5,000 in number) are contract labourers. CMMS leadership was wary about the slow erosion of its support base as regular workers slowly got replaced by contract workers and feared the day when regular workers would become a minority in the mill. So far, CMMS has refused to take contract labourers as members. Recently, based on rumours, CTM management started to investigate the alleged exploitation of contract labourers by certain contractors. Some contractors felt that such investigations may expose them and reduce their pro t margin. They instigated contract labourers to demand for better wages. Some of the contract labourers engaged in material handling and cleaning work started provoking CTM management by adopting violent tactics.
Today’s news - paper reports that police and CTM security guards red two or three rounds in air to quell the mob. The trouble started while a security guard allegedly slapped one of the contract labourers following a heated argument. Angry labourers set re to several vehicles parked inside the premises, and to the police jeeps.
In the wake of recent happenings, what decision is expected from CTM management? From the combinations given below, choose the best sequence of action.
I. Stop the current investigation against the contractors to ensure industrial peace; after all allegations were based on rumours.
II. Continue investigation to expose exploitation and take strong actions against trouble makers.
III. Get in direct touch with all contract labourers through all possible means, communicate the need for current investigation to stop their exploitation, and convince them regarding CTM’s situation due to competition. Also expose those contractors who are creating problems.
IV. Promise strong action against the security guards who are guilty.
V. Increase the wages of contract labourers.
II. Continue investigation to expose exploitation and take strong actions against trouble makers.
III. Get in direct touch with all contract labourers through all possible means, communicate the need for current investigation to stop their exploitation, and convince them regarding CTM’s situation due to competition. Also expose those contractors who are creating problems.
IV. Promise strong action against the security guards who are guilty.
V. Increase the wages of contract labourers.
Show Hint
- I, V
- I, II
- II, V
- III, IV
- III, V
The Correct Option is D
Solution and Explanation
The situation has already escalated into violence. The first responsibility of CTM management is to directly communicate with contract labourers, explain the reasons behind investigations, and win back their trust. This prevents further damage and establishes transparency. Hence, Statement III must come first.
Step 2: Address the immediate trigger.
The unrest was worsened when a security guard slapped a labourer. Taking prompt and firm action against guilty security guards shows fairness and accountability. Hence, Statement IV should follow as the next step.
Step 3: Eliminate other choices.
- (I) Stopping the investigation weakens CTM’s credibility and allows contractors to escape responsibility. ✗
- (II) While continuing investigation is important, it is not the first priority during unrest; building trust and controlling violence come first. ✗
- (V) Wage increase cannot be the immediate solution; it may create unsustainable costs and set wrong precedents. ✗
Step 4: Final sequence.
\[ \text{III} \;\;\rightarrow\;\; \text{IV} \] \[ \boxed{\text{III, IV}} \]
In the current context, which among the following represent the most suitable reaction from CMMS leadership?
Show Hint
- Distance CMMS from the episode and explain that CMMS is not involved in the fiasco through a press conference.
- Offer membership to contract labourers, which would put the contract worker at par with the regular workers in CMMS.
- Do not offer membership to contract labourers, but represent their interests during negotiation in order to prevent the formation of another union in CTM.
- Start another union exclusively for contract labourers of CTM.
- Adopt a neutral stand in public, and pass on information related to problem creators to the CTM management.
The Correct Option is C
Solution and Explanation
CMMS mainly represents regular workers, and granting membership to contract labourers could dilute the bargaining power of existing members. However, CMMS cannot completely ignore contract labourers since they now form a significant portion (35%) of CTM’s workforce.
Step 2: Evaluate options.
- (A) Merely distancing CMMS will make it irrelevant in the eyes of labourers and reduce its influence. ✗
- (B) Offering full membership to contract labourers will disrupt CMMS’s internal structure and dilute the voice of regular workers. ✗
- (C) The most practical path — CMMS should not offer direct membership, but can represent contract labourers’ interests during negotiation. This prevents the rise of a rival union and maintains CMMS’s dominance. ✓
- (D) Starting another union for contract labourers would create division and weaken solidarity. ✗
- (E) A neutral stand is passive and ineffective in a crisis, leading to loss of credibility. ✗
Step 3: Conclude.
By representing interests without membership, CMMS can both protect its regular members and prevent contract labourers from forming a rival group. \[ \boxed{\text{C}} \]
Out of the options given below, which one would be the best policy decision by government at the national level?
Show Hint
- Asking CTM management to pay same wages to both regular and contract workers.
- Income tax raids in offices of contractors under investigation.
- Setting up a new labour welfare office within CTM premises.
- Setting up a new committee to make recommendations for changes in labour legislations with an objective to reduce exploitation of contract labourers.
- Use entire government machinery to support CTM, which has an impeccable track record.
The Correct Option is D
Solution and Explanation
The \emph{Government at the national level} must choose a solution with \emph{policy reach}, neutrality across industries, and long-term enforceability — not a firm-specific quick fix.
Step 2: Evaluate options against “national, structural, neutral”.
(A) Directing \emph{one} company (CTM) on wage parity is micro-intervention and may be infeasible across sectors; also bypasses collective bargaining frameworks.
Not national/neutral. ✗
(B) Tax raids are punitive and episodic; they do not create protections for labour across industries.
Symptomatic, not structural. ✗
(C) A welfare office inside CTM helps only one enterprise; policy impact is negligible.
Firm-specific. ✗
(D) A national committee to recommend \emph{legislative changes} targeting contract-labour exploitation creates an economy-wide, sustainable remedy and protects workers across public/private entities.
Structural, scalable, neutral. ✓
(E) Backing CTM with “entire government machinery” is partial and distorts competition; it ignores the systemic nature of the issue. ✗
Step 3: Conclusion.
Only (D) addresses the root cause at a \emph{national policy} level and ensures durable safeguards.
\[ \boxed{\text{D}} \]
The criminals in the surrounding area often took their cue from the situation in the mill, creating law and order problems outside the mill which could later make it difficult for workers to come to the mill safely. Given the circumstances, identify the stakeholder that should be the immediate priority of CTM management.
Show Hint
- Contract labourers who were allegedly beaten by the security guard of the company.
- District administration that is concerned about the spread of violence.
- CMMS that prefers an immediate settlement of the issue.
- Customers who are concerned about prices and regular supplies.
- Contract labourers who are demanding job security and same wages as regular employees.
The Correct Option is
Solution and Explanation
Unrest began with contract labourers; if not addressed, it can spill over to the neighbourhood and cripple operations. Hence, de-escalating \emph{with the principal aggrieved group} must be CTM’s \emph{immediate} priority.
Step 2: Assess each stakeholder for immediacy and leverage.
(A) Focuses on one victim of an incident; redress is necessary, but it does not address the \emph{wider} contract-labourer grievance driving unrest. ✗
(B) Coordination with administration is important, but management first needs legitimacy with workers to stop further flare-ups. External policing alone cannot resolve shop-floor tensions. ✗
(C) CMMS represents regular workers; their priority does not directly quell contract labourer agitation. ✗
(D) Customers matter for business continuity, but addressing them before stabilizing the shop floor is putting the cart before the horse. ✗
(E) Engaging \emph{all} contract labourers — the core aggrieved stakeholder — on issues of security and parity addresses root concerns, contains the situation early, and restores safe access for the workforce. ✓
Step 3: Conclusion.
CTM must first stabilize relations with contract labourers to prevent broader law-and-order fallout.
\[ \boxed{\text{E}} \]
Top Questions on Statements and Conclusions
Humane Dynamix is a leadership training organization based in Mumbai. Established in 2015, the organization is gradually becoming a leader in behavioral training. In the organization, trainers are assigned to training projects based on their expertise. Corporates seek behavioral training services on a regular basis, from Humane Dynamix, for upskilling their executives. Humane Dynamix is headed by the Chief Executive Officer (CEO), to whom the Training Assignment Officer (TAO) reports. The TAO position rotates among the senior trainers for a fixed tenure; the CEO assigns this position to a senior trainer.
Companies, desirous of hiring Humane Dynamix, share their training needs with the organization. The TAO assigns a trainer to the client. Typically, the satisfied client requests for a particular trainer that the client is satisfied, giving repeat business to Humane Dynamix from the same client company. However, the TAO takes the nal call. Years of training experience plays a big role in client satisfaction, and hence, senior trainers conduct most training programs while the newly recruited trainers apprentice with them. However, the senior trainers have the autonomy to decide on who they want to accept as an apprentice..
Further, during a training program, the senior trainer takes most of the sessions, if not all, while the apprentice helps the senior trainers to organize their sessions, and occasionally take a few sessions. As the apprentices gain experience, they start getting their own independent projects, but that typically takes quite some time..
Dheeraj, a senior trainer, takes over as the TAO. As soon as he assumes the office, the CEO shares a concern with him: “We have a lot of young trainers who we have recently recruited. Since they are not known to the outside world, they do not get enough opportunities. Many of them are impatient to prove their mettle. Unless they are assigned more programs, we risk losing them rapidly.”- XAT - 2025
- Decision Making
- Statements and Conclusions
- Select the conclusion that best follows from the statement given below.
Statement:
Some mangoes are exported to Europe and most mangoes are consumed in India. In India, some mangoes are used for preparing mango juice and some are used for making jellies. All mangoes are consumed by humans unless they are raw mangoes. All raw mangoes are exported outside India.
Conclusions:
I. All the mangoes exported to Europe are unfit for human consumption.
II. Mango juice can also be prepared with raw mangoes.
III. Most mangoes are consumed in India in the form of mango jelly.
IV. No raw mango was used to prepare jelly.- NPAT - 2025
- Logical Reasoning
- Statements and Conclusions
- Select the conclusion that best follows from the statements given below.
Statements:
In a university, some students can speak English and German, but not French.
Some students can speak French and Japanese, but not Korean.
Some students can speak German and Korean, but not Japanese.
Some students can speak English and Japanese, but not Korean.
Conclusions:
I. All students who speak Japanese can speak English.
II. Among the students who speak German, some can speak English and some can speak Korean.
III. Students who speak French can speak German as well.- NPAT - 2025
- Logical Reasoning
- Statements and Conclusions
- Select the conclusion that best follows from the statement given below.
Statement:
In a library, some members were issued non-fiction non-academic books and these were returned exactly 3 weeks later. Some members were issued non-academic fiction books written by American authors and they returned these books within 20 days. More than half the members were issued academic textbooks and these were returned after 20 days.
Conclusions:
I. The non-academic fiction books were borrowed by library members for the shortest duration.
II. Most library members prefer to read non-academic non-fiction books.
III. Academic textbooks were perhaps the most issued books in the library.
IV. Non-academic fiction books are preferred more than the non-academic non-fiction books by library members.- NPAT - 2025
- Logical Reasoning
- Statements and Conclusions
- Select the conclusion that best follows from the statement given below.
Statement:
No one who likes to watch baseball likes to watch basketball, and all those who like to watch basketball also like to watch football.
Conclusions:
I. All those who like to watch football like to watch baseball.
II. No one who likes to watch baseball likes to watch football.
III. Some of those who like to watch football like to watch baseball.- NPAT - 2025
- Logical Reasoning
- Statements and Conclusions
Questions Asked in XAT exam
Match the following airlines with the countries where they are headquartered.
Airlines Countries 1. AirAsia A. Singapore 2. AZAL B. South Korea 3. Jeju Air C. Azerbaijan 4. Indigo D. India 5. Tigerair E. Malaysia - XAT - 2025
- Business and Economy
Match the following authors with their respective works.
Authors Books 1. Andy Weir A. Dune 2. Cixin Liu B. The Time Machine 3. Stephen Hawking C. The Brief History of Time 4. HG Wells D. The Martian 5. Frank Herbert E. The Three Body Problem - XAT - 2025
- Books and Authors
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- XAT - 2025
- Scientific Developments
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- XAT - 2025
- General Science
- Who won the SVERIGES RIKSBANK PRIZE in ECONOMIC Sciences in memory of Alfred Nobel 2024 for studies of how institutions are formed and affect prosperity?
- XAT - 2025
- Economy