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    Changing Face of Industrial Relation Scenario in India

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    15 views6 pages

    Changing Face of Industrial Relation Scenario in India

    Uploaded by

    Anish Mehta
    Changing Face of Industrial Relation Scenario in India

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    (EEE COVER STORY The changing face of industrial : relations Ishaps occur, experts opine, situations analysed and over pase, the time the uve lf eontentionsputon the back- Durer again. Despite the evolution of Industries, "despite the economic Mbetzation et india has witnessed in the ast decades, despite the overall progrestion Of tae socety in general-instanes lke the Tabeur union management each at Maru ‘Suri India Limited (SIL sll occa Ts ‘snot simple HR case study where an cemgloyee has resigned and perhaps next Interview can answer the question as © why he ce he do that Industrial Relations QR) is much beyond poly making, management decisions or & {howtand theories that can be proposed around the subject, Even. = global Onginization has to be mind of the ‘economic conditions, laws, government poles and external factors persning fo Darscular geography. Fr instance, Isbour {lens in nas ar neva under pola Influence, and efentinespoliel partes do fey wo cath on the stations amounting 0 clashes between labour unions and the ‘matagement. Pt the organizational lve sel, there |sofen an antidpatonofthecouse of vents geting hay, the plight fr leadership can Just not be estimeted: An TR leader may rohably never understand what impacts the Productivity in his plant and the morale of 8m Oewerke 2012 ‘the workers unless he gets down to che (oud zero Nik « Geo"Y HR professional, ‘eho ass started his career with an FMCG ‘rgtaton sa, "in TR as we have ll sen, ‘he businesses and organizations, The whole tage of IR that Degas from the days of Inderal Revolution, with new chapters of 90e sould not ust be ready fo gethishatdls Veteran HI leaders would be able to dry rather stay prepared to get his Bands Sham whe deaing wih seme labour easily recall how labour management ant Cally : issues in the past have given them sleepless nights. Arguably, industrial Gftane tsa there we many vo we relations has always been one of the toughest HR domains to handle. Nevertheless, are things changing for Iesues have 0 quis in accepting wwouli. rather prefer a comfortable Tanagement{ob san HR Instead of ving “deepen I” Tals can be the pola of view ead t face the bate andar eyeing onthe ‘upeoing changes on the horizon, ‘A paradigm shift (Overhe past century the human society has raked and wo har our cout, slang ith the better? ‘upheavals added during both the Worl Wars set to ener aes pase all together Since. there ae too many ctanges happening In ery aaa, some of which are countering ac othe i dieu to predict how tides ww Tabour unions and managements have aaveays had a felatonship similar (0 4 narled coup, where the two can't stay without each offer yet keep Tinding xcses to fight Howes, same seasoned 1 lenders Uke. S. Uppal, Head = Industrial Relations, Corporate Sustaineilty and ‘Adilnitreon, Tinta Motors Ld, baieve that the focus of management on labour has (gradually deceased over he years. Ashe puts JE Rapla growth acos all he sectors ad ant fzateshorage of white colar employees has ‘hied the indus focus on ther. With all the companies ving to attract and retain te coll talent he TR scenario has been ood asgnored Dut to ds the competent [HR professionals prefertoavld I and hence nly medioere IR praces have taken route ‘Thishasled to medioety buying pace rather than achieving through — pr} ‘mmuniaton and management paces cording to him he decreasing focus on IR hat led fo the rng of conceal labour on a larger scale. "There mediocre Drofesinals contol the ttl cost by geting Fenble Iabour, which Some cases exceds by 60 pee cent of the trl workforce and is paid & pittance compared to the few Demanent workmen” e says. The curent ‘Gpsurge in the tend of hiring contract labourers can be abuted for most pf the ‘commotion that Industries face, most ‘commonly being the unintentional yet ‘widespread. discrinination between Temporary and periinentInbour. Lack of ocrmter2012 0 19 { (GENE COVER STORY BL KY SINOH Senior Pare Kachhar & Co, | 20 w Decrer 2012 welfare facilities and empathy, Industries not adhering to Sautory CCompliances, lack of algnment of ‘workforce with the ‘company Cultures are some of the other “Aah Seth the author of award winning book A Free Man, ‘mentioned in his bog on Nev York ‘Times webste last year, thatthe ffequentockouts at MSIL were due {0 te rising dsatsactin among {he labourers, and some of them had developed nancial insecurities 5 contract labourers. These Contract labourers are also often Ignored bythe trade unions. Some the polictans also blame this trend “of hiring contractual workforce forthe Marat peal ‘Though contractual hiring is law yet ofen creates permitted rouble Metamorphosis of trade unions Lockout is a dreaded word for Industalists, managements, and ‘oven governments ei ead to the loss ‘of man-days and brings ‘business functioning 0 stant, ‘ecording tothe Labour Bureau, Government of Indi, the amber cof man-days lost in 2009 de to lockouts were 270,48, 961 day, an astonishingly igh figure for any ountr's economy. However. over the years these lockout and ses Inve deceased signieany ong to varios factors ‘As N. Krishna Mohan, CEO - Sales, Supply ‘Chain & Human Capital Emami Limited asses. a Important reeson behind lesser ‘umber of lockout inthe present day is an evolved. workforce “Because of the “eutthroat competition, employees. heave become more responsible and are also aware of theirs, which has Ted toa decline in stike, Employers also avoid lockouts because decline in production, even for afew bours, results in heavy losses; Teave alone afew daye of ‘works he comments ‘Also, he rightly points out, ‘mdevnionshave become defensive In ther approach and they heve shied thei forse from strikes 10 Tewsults The ware of connimeriam has swept everyone along and wade Uloms are no exeption, according to Mohan, "When the rights of ‘Snsimers andthe community a Whole are affeced. the rights of ‘workers, unlons and managers take 2 back seat, Hence here Is ban on bandh ‘end restetions even on protests and dhamas Increasing, tad unions are geting olated and ‘future fer them only by aligning) themselves with the Inueress of the der socety he sys. arthermore over the years the {actors leading to tade union and have also ana Sen (Faculty ue of Integrated in Mamagement, Kolkata, and author of book, Industral eladons) suggests that nthe early years fer independence in India the thee most prominent isses that disturbed Industral relations lused tobe wages, bonus and pefsonal matters (particularly Feinstatement of dsmlseed workers) and theve three issues Secounted for at many as 75 per ent of the dlsputes. However, ‘managements sre no. longer arbitrary and many of these issues resulting in conficts have reduced In occurence de 1 the evoition of workforce and ndutrles Sen hat ‘Sso underscored that as oppaced flmost a decade ago, the duration of resolving disputes, along with Compleat of the cates, has ako comparatively inceased in the present scent Building timeless relations ‘To avold the wepercussions of conflicts, HR organizations have ‘ealzed that contnulng efforts ant practices directed towards labour Iastagement are highly needed to survive competion Undoubtedly ‘aadual increase in che dedicated {ors on the pax of organizations has own seen, ovr te past decade. Fostering stronger relations has ot only been on the most cost tffectve ways o old disputes, but flbo suring Wick that helps hme rom enc ‘weathering he toughest storms the wake of changing economic Scenario, Mohan suggests that fn the new age, the management, fgoremment tnd ade unions have ‘een responding tothe challenges Of TR during the times of divestment for change i ownership through various innovative modele and Stvangement. Ae Moban farther explains some ofthe coming of ge Sirangementsare-making workers the owners through the issue of shares or corsroling interests (not 4s prevalent in Ind), negotiating higher compensation for voluntary Separation, and decentratization of Tas soem in terms ofthe shit in consideration of IR issues from ‘aero to micro and fom industry to enterprise level "Byen MSL leant lesons from the unrest anong the workforce ‘hat spanned for almost to yar. ‘Atrthe recent chaotic episode, the ‘management considered offering higher compensations and even Inuoduced” higher education fchemes fer Its shop floor technicians ‘On the otter hand, Tate Motors should be certainly credited for leaving sone unturned to say {ts workforee. The decison to shit the Nane plant in Singur, Wes Bengal to Sanand in Gulrat wos considered majorly to ensure the wall being of ts employees, after eating with long phave of ‘ica tne. Moreover, as Uppal apprise, Instances of worker sng tthe level of managers are not ual Tata Motors, "There are departmental heads in our ‘rganuaton, wao have been ex: Ful Te Aporendces (FTA). ‘In fae, one of or bsiness heads had supervisors through an internal, Selection procs anid then become ‘managers. This is a result of Increased teuining and healthy environment that supports ener evelopment he shares ‘Other pracices suchas regular Gallup survays, feedom for ‘workmen tory thelr elective wae a wnthurpaalnecn COVER STORY Mmmm bargaining bodies, participative Co. (Indias leading law fem) contradiets, “In my view, effective { cs i caumwches | Sadpeens s Sry | Seneca Shen poeearTnag Som mera smaller ces who deal with laborer be mligated to s large extent by | micerigmen Ropes ean cose CSUR Se EEE et! | Setup to execute extensive fosters an envionment of mutual engagement practices. Manish trust and lays down poliies that Shania, who works with a support career growth for the Workforce, As a matter of fact, Sule sie ofan oranieaion, and 4 smaller workforce ive better Singh. Senior Partner, Kochhar & Opportunies to the management RECENT LAW AMENDMENTS KY. Singh, Senior Partner, Kochhar & Co. talk abwut recent law amendments that have contributed to the changing scenario of IR. "mn 2010, the industial Disputes Act, 1947 was amended to iroduce the concept of orevance redressal machinery tobe ‘Se up randatonly in every industal establishment employing 20 or more workmen, wit a constitution of equal umber of members frem both the ‘employers and workers side. Te Act aso provides provision for appeal against ‘decision of the said committee. This ‘amendment has been able to ensure an fective ad smoot process for erpoyee rievance redress Furthe ne government has also etended the benefits of cartain labour i \wetaefegsaons ots who were erie not eniledto such bene’, Ferinsanc, in Apri 210, the wage cating (or coverage of emply2es under Employee Sao surance Scheme), sulted nde the Employee | State surance ct, 148, was increase rom Rs 10,000 per moni 0 'R515,000 per month Simay, eae the defniton of wrkman (to -whom the wef oroisions ofthe Indus Disputes Ae, 1947 were -avalabe incuded oy those atthe supervisory lve whose wanes | were equal o or below INR 1600 pec monn. This narrow definaor of ‘workman resuted in deprhing a numberof workers of te beni ronsions ofthe Industrial Disputes Act, 1947 ln 2010, the aforesaid ‘wage calng was increased to NR 10,000." ( jm COVER STORY to maintain effective industrial weddings, encouraging telaions” Involvement of workers to promote Hence, even several bigger and crete environment friendly mosphere within factory premises by planting saplings, encouraging nd innovation thet encourage participation of worker amis in ‘wansparene. At mas Limited, factory welt hnctons held bythe one of India company all such measures help conglomerates, personal bondingis us develop a personal apport with fencourged apart from the the employees,” asserts Mohan, regular initiatives. "Promoting Additionally, a cohesive work Donding though regular visits to environment fe maintained. at worker's residence fr inculeating Emami with the help of practices Safety at home, attending thelr such as Total” Productive CHALLENGES THAT STAND TALI |adustry veterans hight the common challenges pertinent fo ndustial Relations in na "MISCOIMMUNICATION WREAKS HAVOC: Singh shares that he often comes across disputes arising due to miscommunication between employers and wore. "When the management does nt involve the workforce in decisions which tiecty affect ther wellbeing and growth prospects, t leads to Aiscontent and loss of fa. Moreover, colectve bargaining (tough 2 integral part ofthe Idan aw and vita forthe accion of workers* fghs) can be used as a potent weapon for umeasonable demands. ‘Suen stuations may also arse ithe rade unions working atthe behest of exeral forces, parteuary, political leanings." he says. ‘LACK OF INFRASTRUCTURE IN TIER 2 CITIES: Lextingindusty payers. are trying to bide the inastuctural gas in Tie 2 locations. “Emami ensues Social development in the Tier 2 areas where our factories are located so as to improve the living condtions, healt facies and ¢ducation system,” shares Monan. Os the other tan, dont Councils in Tata Motors lok into all he employee issues relating to housing, ‘Tensport, hospi and schoo. Uppal further ats, "Tere are also ressures relating to workers compensation an lal gaps inthese ares, LEimployers within these cies need to get togeter and puta common ‘oat forthe government to focus on these issues. Also, combined ee tors ae egret nga ls ner tabourlaws" . ~

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