“Managers: We are Katti with you”

- Union Management Conflict at

Precision Parts Ltd.

Group-4
Arun, Danish, Devendra, Digvijay, Khanjan
Precision Parts Limited (PPL)
1985: Established
 Core Values of the Group that included Valuing the customer and employee as well as

giving back to the society

Economic reforms and untapped domestic market and

Business model of International auto majors in India

Team was handpicked by the Group Chairman

Chairman: The company will not just make profits, but

invest in upgrading the quality of life in the locality.

 Organization Growth:
Period & Year Growth Development
In 1985 Established
By one year 18-Members
By 1 ½ years • 50-Members: Trained with sophisticated
Experiences 0 to 8 yrs. machinery and advanced
• 22 of them for sales/Commercial production practices and
and Marketing Japanese quality tools
By 2 years • 274 Employees
• Township
• 6 Floor Supervisors RO for OEM
• 60 shop floor workers SO for Retail
• RO & SO
By 5 years 1100 Employees PPL show cased
Best Performing team in the
Country
Labour Relations at PPL:
Union formation (PPEU)

Training & development for Shop floor employees:

Lawyer for 3days training on worker leadership and rights

Employee Satisfaction Survey (ESS)

Employee life needs are changing & it’s the time to think of other

alternatives
PPEU registered under trade union act 1926

Regular interaction with management through meetings

“It came to be Known as model Union”

Twenty years later:
March 2004: Grown to INR 820 crore company

Employees: Details Nos.

F/T Union 1500
Managers 250
Sales & Marketing 281
Sub contractors & Others 1000
Total 3031

Management Changed

Plant avg. age become 40

PPL had much influence on the prosperity of the locality

Early Conflict:
Union president faced a difficult time due to internal

conflicts
Disciplinary actions & VRS – scheme

Strike for the management decisions

Post strike developments:

VRS for 15+yrsexperience employees

Key union members left through VRS

How management lost credibility:
Surprising developments after settlement

Bumpy transition in management positions

Regularity of the interactions broken

Less involvement of CEO

Disregard for emerging needs of Union

Un ethical approach for the dealing with disciplinary

issues
How union lost its hold:
Surprising developments after settlement

Unanimity was lost

Using PPL as training ground and seeking for better

opportunities
Union requirements:
Union security

Improved wages, hours and benefits

Collective bargaining process

Recommendation for Management:
Build trust
Accept past mistakes

Give plan to those mistakes

Understand the current demands and negotiate

Community and social activities to bring back old culture.

Sensitization of management and supervisors towards labour needs

Bring in third party if above attempts fail.

UNDERSTAND THAT THE RELATIONSHIPS ARE AMONG

PEOPLE AND NOT INSITUTIONS..

THANK YOU…