Re-Designing Industrial Relations in India: Post-Manesar Trends & Lessons

Slide Note

Exploring the need for a revamped industrial relations system in India post the Manesar incident through sessions focusing on strategic preparedness, interaction, and co-learning. The discourse raises questions on managing unexpected challenges, preventing workplace violence, improving negotiation strategies, and building trust. It delves into ensuring workplace fairness, mindfulness, and devising new structures for effective grievance handling.

jew_cla Follow

Uploaded on Sep 17, 2024 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

E N D

Presentation Transcript

RE-DESIGNING THE INDUSTRIAL RELATIONS SYSTEMS IN INDIA-POST MANESAR TRENDS & LESSONS Dr. G. MANJUNATH PhD, KLS Deputy Labour Commissioner Belgaum Region Govt. of Karnataka

HOW WE PROCEED DURING THE FIRST SESSION Warm up learner audit Duration Introduction to the subject Why this discourse now? Key words Important quotes on the incident What the company said about the incident? What the Union/CSO said? Industrial Relations or Not? Reasons within General reasons Incident fallout Questions asked? Emerging trends Other critical issues 45 minutes 2 NIPM, NKC, 13TH Oct 2012

SECOND SESSION STRATEGIC PREPAREDNESS Duration Understanding Good strategy/Bad strategy Seeking Higher Purpose in the workplace Be a Negotiation Genius Managing the Unexpected Using Emotions as you Negotiate Tool Kit Activities Anger Management Policy on Anti-stress and Violence THIRD SESSION INTERACTION AND CO-LEARNING 45 minutes 30 minutes NIPM, NKC, 13TH Oct 2012 3

WHY THIS DISCOURSE NOW? Why should we really Retrospect/Worry about the incident? Aren twe all the concerned actors in the IRS? Do we also face such situations and challenges in our work life? How can we manage the unexpected? Can we also learn from the failures? How to prevent violence at workplace? How to evolve an emergency plan when Negotiation reaches a deadlock? How to improvise our approach, attitudes and strategies in people management issues? Can we build upon trust deficit that is now more or less demonstrated? NIPM, NKC, 13TH Oct 2012 4

WHY THIS DISCOURSE NOW? How do we ensure workplace fairness? How to Manage Mindfully? How do we ensure our workplace free from agitations, mis-deeds and violent behavior of our own employees? Will IR undergo drastic changes and fresh approach to resolve worker grievance and dispute handling? What are the new rules for negotiation and bi- lateral discussions? What corrective measures shall be put in place to stop the recurrence of such incidences in future? What will be the new structure of the IRS post- Manesar incident? 5 NIPM, NKC, 13TH Oct 2012

Key words as appeared in the PRINT MEDIA: ARSON RANSACKING RUCKUS CARNAGE RIOTING BARBARIC VIOLENCE(TOI/ED/23/7) MURDER LABOUR DISSONANCE ATTEMPT TO MURDER NIPM, NKC, 13TH Oct 2012 6

Key words UN-LAWFUL ASSEMBLY VANDALISM Social insensitivity ASSAULT TROUBLED RELATIONS(DH/ED/21/7) Bloody and systematic attack TRESPASS MILITANCY Violent confrontation between workers and the management Horrific violence unleashed by workers VIOLENCE LABOURER S FURY FIRE CRIME SCENE Suppressed anger escaped its notice SUSPENSION HOOLIGANISM BARBARIC SEVERELY BEATEN LABOUR UNREST BRUTULLY HUNTED NIPM, NKC, 13TH Oct 2012 7

Key words DIED OF SUFFOCATION OFFENSIVE POSTMORTEM PROTESTERS MAYHEM FACTORY VIOLENCE JUDICIAL CUSTODY STAMPEDE ROGUE EMPLOYEES FIR RAMPAGE Caste related remarks AGITATE LOCKOUT Scuffle with a shop floor workers Damage to property Clashes between workers and managers Solidarity NIPM, NKC, 13TH Oct 2012 8

IMPORTANT QUOTES ON THE INCIDENT AS REPORTED IN THE PRESS It s a shock for all of us - Shizo Nakanishi We are conducting internal enquiries, but I do not know what led to the workers resorting to such unprovoked violence - Shizo Nakanishi There is now a lockout. To me, what is more important is safety of my colleagues than producing some cars to make some money - R C Bhargava (FE, 22/7) 9 NIPM, NKC, 13TH Oct 2012

IMPORTANT QUOTES We do apologize to customers for whatever is happening, but this situation is not in our hands right now -R C Bhargava (TOI, 22/7) Today, it isn t as if every plant in Gurgaon is violent, but no plant is totally peaceful -Rajkumar, President, Autoworkers Union at Rico Auto Industry. What led to the violence is not an industrial dispute -R C Bhargava (FC, 24/7) NIPM, NKC, 13TH Oct 2012 10

IMPORTANT QUOTES We also discussed with the Chief Minister that we have to eradicate these criminals from the state. Once that happens, normalcy (in production) will come at the Manesar plant -R C Bhargava (FC, 24/7) SOCIAL UNREST -Azim Premji It was a kind of a pocket union in the hands of the company. Every company likes to have a union like that. This Union kept the workers in isolation, and that fuelled frustration -D. L. Sachdev, AITUC (MINT, 26/7) We hardly go to the malls. It makes us feel low. It s frustrating, when you earn Rs 6,700 a month, you cannot eat out, or visit malls. And of course you cannot feel on par with others -A contract worker on unanimity NIPM, NKC, 13TH Oct 2012 11

IMPORTANT QUOTES There is a disconnect between the employee and the management today. That is why signals preceding events (like Manesar) are ignored -Acquil Busrai (BS, 23/7) Labour disputes are going to be the key focus area for businesses from now on Azim Premji (FE, 25/7) My parents are not in favour of me joining the company back. They are worried about my safety. I am happy to work at Gurgaon plant or even in Gujarat but not at Manesar. If I am forced to join work at Manesar, I will have to quit -An injured official (MINT, 1/8) There is a need to amend archaic labour laws -Randeep Singh Surjewala Industries Minister, Govt of Haryana (BS, 28/7) NIPM, NKC, 13TH Oct 2012 12

IMPORTANT QUOTES It s a conspiracy against Industrial peace -Randeep Singh Surjewala Industries Minister, Govt of Haryana (BS, 28/7) Part of the problem may also be that Japanese working standards are quite disciplined there is a lot of pressure on the worker -A member of a Trade Union (BS, 25/7) We fight because of the hunger in our stomach - A member of a Trade Union (BS, 25/7) NIPM, NKC, 13TH Oct 2012 13

What the company said about the incident: The company has alleged that the violence was an orchestrated act of mob, which has implications beyond one company or region The company said the violence is a negative trigger for existing companies and regions across the country as also for prospective investors and jobseekers . The management warned such pre-planned labour action could spread to other companies in the largest automobile production belt of the country (BS, 20/7) The company would derecognize the MSWU NIPM, NKC, 13TH Oct 2012 14

What the company said about the incident He (CEO & MD) however, admitted the management may have made a mistake in supporting the new union. I did not see any shadow of external influence when we signed the settlement agreement. If there was outside influence, it is our mistake that we could not find out he said. (BS, 21/7) The company declared that the number of contract employees would be drastically brought down by March 2013 and no contract staff would be employed for any value-addition task. (DH, 22/7) Maruti may not de-recognize workers union yet S Y Siddiqui, COO (ET, 27/7) NIPM, NKC, 13TH Oct 2012 15

What the company said about the incident We have lost confidence in these workers who violated terms of the good conduct bond (last year) and now have criminal charges against them - RCB-(17/8/FC) We are trying to find out if there was any dissatisfaction among the workers and if we find anything we will address it -Osamu Suzuki at MS Share holders meeting. (29/8/Hindu) NIPM, NKC, 13TH Oct 2012 16

What the state Government said and did: The Haryana Government and police pledged to take stringent action against those responsible for the violence Taking a serious view of the violence, Haryana Chief Secretary P K Chaudhary said a special investigating team has been formed under ACP, Gurgaon. The Haryana Labour Department has sent a report to the Government saying it was a Law and order issue and a lockout of the plant should be announced till investigation are completed. Police announced that they will detain all 3000 workers at the Manesar factory in connection with the violence. NIPM, NKC, 13TH Oct 2012 17

What the Union/ Federation of Unions / CSO / said: MSWU accused the management of calling in hundreds of bouncers on its payroll to attack the workers. HR officials flatly refused to hear our arguments The Union, however said it was ready for a dialogue with the management and wanted to resolve the issue amicably. (DH, 20/7) They are not willing to understand how much management is responsible for this incident - D L Sachdev, Sec, AITUC (MINT, 17/8) NIPM, NKC, 13TH Oct 2012 18

INDUSTRIAL RELATIONS OR NOT IR NOT IR May be HR? IR actors External influence How much HR in to IR? Or vice-versa Management, workers, union leaders and members of the union Factory premises/negotiation process Shop floor misunderstanding been discussed Charter of demands bi- lateral discussions in progress Subject for discussion- grievance issue Political conspiracy Conflict management Naxalite hand in Maruti violence (TOI, 23/7) Grievance handling machinery & process Maoists to take control of NCR Negotiation skills Class-anger People management Social unrest Ethics Suspension issue exploitation Communication channels NIPM, NKC, 13TH Oct 2012 19 New social contract with

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY: Young workforce Extensive usage of contract workers Wage disparity between the regular workers and the contract workers Working conditions Militant attitude of the workers Inefficient trade union leaders Lack of outside leadership and advisers Management is charged with adopting not the best labour practices. NIPM, NKC, 13TH Oct 2012 20

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY: There are charges that workers and leaders are bought off too It happened even though the union was considered to be management The desertion by the union leadership left the workers feeling betrayed New leadership had little track-record in leading workers, and little real legitimacy or wide acceptance among all workers friendly with the NIPM, NKC, 13TH Oct 2012 21

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY: HR Manager had apprehended trouble, but was forced to stay on by the management Logic was a causality that evening Hard-nosed and cost-focused management; legions of temporary workers , low wages that couldn t keep pace with soaring inflation; a trade union movement gone wrong; the antiquated labour laws (MINT, 26/7) NIPM, NKC, 13TH Oct 2012 22

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY: Disengagement malaise (MINT, 26/7) For Maruti, to reduce wage costs a significant component of its overall costs it makes much more sense to go for cheaper, contract labour (MINT, 26/7) The problem is worker dis-affection. In Maruti, the dis-affection stemmed from workers performing similar work being segregated into a small upper caste of well-paid permanent workers and a much larger lower caste of lowly paid temporary workers (ET, 26/7) 23

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY: Workers at Maruti have been nursing a grouse for too long (FC, 23/7) Violence at Maruti Suzuki s Manesar plant shows the rot prevailing in employer-worker relationship (BS, 23/7) Maruti s Leniency to Union bosses angered Manesar plant workers- Major miscalculation in handling a labour incident by the auto major may have sparked unrest. (ET, 6/8) NIPM, NKC, 13TH Oct 2012 24

REASONS/CAUSES FOR THE INCIDENT WITHIN THE INDUSTRY While the primary responsibility for violence rests, always with its perpetrators in this case, the rioting workers the Company, the state and India trade union movement have to take their share of responsibility, too (BS/ED/23/7) Two committees Grievance Committee and Labour Welfare Committee- promised to workers by Maruti in the October agreement had not been set up. (BL, 6/8) Redressal NIPM, NKC, 13TH Oct 2012 25

GENERAL REASONS/CAUSES FOR THE INCIDENT: Workers frustration Consumer culture Social unrest Attempt by some companies, especially MNCs to discourage unionisation Young workers can be impatient, aggressive and irreverent towards authority, which sometimes extends to being provoked to commit extreme acts of violence. In the absence of sufficiently remunerative and fair job opportunities, young workers can be a source of anarchy rather than harbingers of any demographicdividend . (BL/ED/24/7) NIPM, NKC, 13TH Oct 2012 26

GENERAL REASONS/CAUSES FOR THE INCIDENT: Social, economic undercurrents surface in Manesar worker unrest (MINT, 26/7) Rise in contract labour causing unrest: Centre (ET, 26/7) Board room shop floor disconnect behind poor Industrial relations? (BS, 23/7) Communication between the top and bottom of the pyramid is failing. Trade unions must introspect on where they re going? (FE/ED/20/7) The perils of thinking of HR as soft (BS, 3/8) 27 NIPM, NKC, 13TH Oct 2012

INCIDENT FALLOUT!! Maruti Suzuki s shares fell 8.9% to close at Rs 1,117.35 on BSE. Causing the company to lose Rs 3200 crore in market cap (TOI, 20/7) Investments likely to hit the entire nation Maruti Suzuki s vendors face Rs 940 crore loss, slash output (FE, 26/7) Maruti s post-July 18th relationship with the workers, union? Maruti plans customer campaign to stay in the competition (BL, 31/7) Manesar Plant shutdown may dent Maruti Profit by 15-20% (ET, 7/8) 28 NIPM, NKC, 13TH Oct 2012

INCIDENT FALLOUT!! Over 1 million workers to be affected (ET, 1/8) Maruti officials fear for safety, refuse to join work (MINT, 1/8) Car major to compensate family of deceased official (BL, 2/8) Survey makes case for labour law reforms (MINT, 24/7) Manesar incident may dent India s image (Hindu, 26/7) Dzire s Output Loss is Rivals Gain (ET, 10/8) Company lost output of 14,500 units of Swift & Dzire in a month (FC, 10/8) 29 NIPM, NKC, 13TH Oct 2012

INCIDENT FALLOUT!! Manesar plant closure has cascading effect on small business (BL, 6/8) Maruti to open Manesar plant under heavy security cover (MINT, 17/8) Share holders suggest good industrial relations department (BL, 29/8) Fresh grads opt out of Maruti placements after violence (24/8, ET) NIPM, NKC, 13TH Oct 2012 30

INCIDENT FALLOUT!! Trying to save Rs 100 Cr, did Maruti lose Rs 1,400 Cr? (28/8/, BL) Lessons from Manesar: Maruti to set up skill centre in Gujarat (25/8/, FE) Swift, Dzire customers start cancelling orders (FC, 22/8) 31 NIPM, NKC, 13TH Oct 2012

Post-Production scenario & comments Mass victimization D L Sachdev, the company s decision was not just against the Industrial Disputes Act, but also against the provisions of natural justice (22/8, BS) The violence of July 18 was a very sad incident and thorough action is needed on it. It s not management versus union issue. In every company such disputes are handled through discussions. The workers should promote the growth of Maruti and the Indian economy -Osamu Suzuki- (24/8, BL) We must know the root cause of this whole incident RCB (MINT, 27/8) NIPM, NKC, 13TH Oct 2012 32

Post-Production scenario & comments On production line, we would not have contract labourers, but for the short-term and for flexibility, we may have about 20% contract labourers, but they will be absorbed in due course of time -RCB (21/8/FC) Vindictive and retaliatory CPI(M) Rajya Sabha member Tapan Kumar Sen in the Parliament. (21/8/FC) I am unable to understand the mindset of the management. What are they trying to prove by having such a heavy safety net. It has never happened in India and a Japanese company doing it is very unfortunate. It is going to send wrong signals regarding industrial relations in the country. At Maruti, it is going to give rise to further tension - Pravat Chaturvedi, former Union LS (MINT, 17/8) NIPM, NKC, 13TH Oct 2012 33

Post-Production scenario & comments Trade Unions want Maruti to take back sacked workers (FE, 23/8) Suzuki focuses on HR on Day 1, says violence is unpardonable (FE, 24/8) Maruti to Automate some key function at Manesar (ET, 3/9) 34 NIPM, NKC, 13TH Oct 2012

QUESTIONS ASKED: What impact will the labour-violence have on future investments? Should Industrial relations seriously be taken by all the stake holders to prevent future shocks ? Still no clue as to what caused the Manesar murder (ED, 28/8, FE) NIPM, NKC, 13TH Oct 2012 35

QUESTIONS ASKED: How do we handle and strategize Anger Management at workplace? How do we evolve a policy on Anti-stress and Violence at workplace? What are the cost implications on training and development and resource allocation? NIPM, NKC, 13TH Oct 2012 36

EMERGING TRENDS: The new industrial climate has produced new issues that have not been adequately addressed by management and governments. Employers and unions must agree to new principles of working together, based on the emancipator potential of globalised growth (ET, 26/7) There is urgent need to forge a new social contract between employers and employees. This would deepen democracy, apart from improving bottom lines, as well. (ibid) NIPM, NKC, 13TH Oct 2012 37

EMERGING TRENDS: NHRDN is working on a handbook on a code of conduct on more responsible hiring. (ET, 27/7) Time for Industrial intelligence? The next leadership engagement (BS, 2/8) Trade Unions seek better industrial ties (DH, 25/7) How to rebuild bridges after a labour conflict (ET, 31/7) Maruti to build low-cost houses for workers in Haryana, Gujarat (MINT, 7/8) Wage revisions hold key to health of auto sector (FE, 17/8) challenge; employee 38 NIPM, NKC, 13TH Oct 2012

OTHER CRITICAL ISSUES: Management blamed for Dev s death (DH, 22/7) Slain Manager s Family seeks answers from Maruti Brass (ET, 23/7) HR Managers want safer workplaces (ET, 27/7) Criminal liability on the part of the employers? Have you developed a policy to deal with anger-management violence at your workplace? and anti-stress and 39 NIPM, NKC, 13TH Oct 2012