DEALING WITH CHARTER OF DEMANDS

JR Kumar, B. Com, FICWA,

Faculty director FAPCCI, Hyd
One of the important functions of personnel manager is to deal with
demands of the work force and to ensure smooth and efficient
functioning of the work place. This is said very easily.
In day to day operations, many problems will crop up on shop floor
which needs his attention. Starting with ensuring timely attendance to
Disciplinary issues, there will be many testing times.
However the biggest test comes, once every three years, when the
agreement with workers union needs to be renewed or fresh
agreement is to be negotiated and signed.
This activity starts with receiving the Charter of Demands. The
Charter of demands may consist of list of demands raised by the
workers which need to be looked into.
In fact , the personnel and finance Dept.s may start working even
before receiving the charter, by preparing details of existing wage
structure in the organisation and also prepare the similar details of
organisations in the neighborhood or similar or competitor industries.
It is also necessary to prepare trend Charts showing organisations
revenue trends over past few years and extrapolate the same for the
same agreement period. This will enable us to know, to what extent
demands raised by the workmen can be accepted to ensure that labour
cost can be contained at the same % of wages to revenue (Income) as
existing presently.
As soon as a Charter is received, there will be tension all around and
the Personnel executives also will be anxious to know as to how to deal
with this document- Charter of Demands.
The Steps in dealing with Charter of demands can be listed out as
given below:
1. The very first thing to be done is to prepare a list of demands.
Write them down numbering the demands and indicating the present
situation and the demand.
2 .Before going into details of demands, it is necessary to check,
whether all statutory measures on Health, safety, welfare as applicable
to the organisation are already complied with or not.
If any statutory provisions are lacking, and same is included in the
charter of demands, treat that as blessing in disguise. Make a note of
such demands, because, in any case we have to provide these facilities
even when not asked by workers. We now use this opportunity and
agree to such demands, as this will only ensure compliance with
requirements.
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3. The demands relating to enhancing organisations image like

providing uniform, shoes and rain coats etc, will surely only help in
building the social image of the organisation. If the Financial position of
the organisation permits such demands, the same can be accepted.
Other wise also we can start accepting a part of the demand in the
current agreement, by postponing other such demands to a future date
in anticipation of better days.
4. Demands for regularization of the services of Casual and temporary
workmen, if included in the Charter have to be studied carefully, before
reaching a conclusion. Unless there is an increase in the business turn
over on a permanent basis, the addition of regular jobs can be
dangerous. In fact many times employers do away with this problem
increasing manpower by using services of Labour Contractors. But,
only unskilled jobs can be dealt that way. We need to have regular
employees for critical jobs and skilled jobs. Out sourcing opportunities
also may be explored as an alternative.
4. Demands relating to Remuneration like revision of wages scales, DA,
and introduction of new allowances or enhancing the amount of
Existing allowances, have to be added together, and the impact of
such demands on the profitability has to be studied.
In fact many organisations bring in the Incentive schemes to benefit
organisation and the workmen, where workers can earn more with
increased production and management will have the benefit of extra
contribution from such production. In many organisations Management
also submits a Charter of demands to workers union demanding from
workmen improvement in Attendance, Discipline, Productivity,
reduction in wastages on shop floor, and avoidance of careless
operations causing accidents. This is known as Managements Charter
of demands. There should be discussions on both charters.
5. After the study is complete, we have to start the negotiation with
representative of workmen. There should be focused meetings and it is
better to limit the number of participants, from both side-workmen and
management. Management side should consist of ideally, four
members who should include the Personnel, Finance and
Manufacturing, in addition to Unit head in charge of general
Management.
6 Negotiations have to be done in an atmosphere of mutual trust and
full understanding from both sides and the principles of give and take
should be respected. Long-term objectives should play a major role
than short term greed. What the Enterprises can bear is the guiding
factor.
The workmen can at best explain their need for demands raised by
them and management can explain the present capacity of the
organisation to bear the additional cost and the need to look into
future benefits for all those dependent on the organisation.
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7. Once the negotiations are over, sometimes inside the organisation

or in front of govt. representatives, the points have to be neatly drafted
and signed.
8. Both Management and workmen have to ensure that the agreement
is honored in letter and spirit to ensure good industrial relations.