Dear Friends,
The fifty day long workers strike at Chakan plant (Pune) of Bajaj Auto ended on 13 August 2013 with the workers union unconditionally calling it off and deciding to go to work from 14 August 2013. Around 80% workers reported for work next day. Workers union called for strike on 25 June 2013.
It can be termed as a case where to resolve the industrial relations stalemate created by workers union on certain unrealistic issues far from economic reality, if you take a tough stand; it is bound to bring results due to conviction to the cause.
In management-labour stand off, resolving the issues
may be easy, but selling the solution to workers is by and large
difficult. This has happened in Bajaj Auto case where union leaders
pushed themselves to a wall from where there was no exit, but to
surrender by withdrawing the 50 day long strike unconditionally.
Strike has never brought win-win situation in labour
management relations. This should be properly understood by workers and
their union leaders. Union leaders in this case made mistakes one after
another and the consequences are catastrophic for workers, because they
did not get anything and have lost 50 days wages. 22 workers are
subjected to disciplinary proceedings. It is not loss of salary but also
a loss of self respect and pride for workers. Union leaders have made
the workers laughing stock. On the other hand management also lost sale
of around 20,000 units in June alone.
This is the first strike at the Chakan plant of Bajaj Auto in its 16 years of operations.
Management and workers union executed an agreement
in March 2010 for 9 years which lasts till 2019 with a clause that
provides wage revision in three years. This wage revision was due in
March-13. But union arbitrarily terminated the agreement and raised
demands on the management. According to labour department workers
demanded an annual hike of Rs. 10,000/- with an additional correction
of Rs. 5,000/- apart from benefits of variable dearness allowance. The
union had then submitted separate list of 37 demands which also seek
clarity on the company’s promotion policy, eligibility for a housing
loan of Rs. 5 lakh, education loan of Rs. 2 lakh and marriage loan of
Rs. 50,000/-. Union also separately demanded a work study at the site to
measure how much production is possible in 480 minutes.
Over and above union made audacious demand of
allotting 500 shares of the company to each worker at Rs. 1/- only. The
point here is to analyze what inspired workers union to raise such a
absurd demand. Probably due to leading perception amongst workers that
automation and improvement in productivity has resulted in a significant
growth in profitability of the company and the benefits are not being
shared equitably by the management, union without giving a serious
thought raised the demand and gave workers a false hope.
Management moved to Industrial Labour Court against the workers union by filing unfair labour practice complaint
and declaring the strike illegal. Union had no moral courage to face
the court and avoided to take the notice. In the mean time management
shifted the production to Aurangabad and Waluj plant and also kept
Chakan plant running through trainees to some extent. From the very
beginning management strategy
was to be tough on the issue of discipline and share demand and make
workers hiring. Further Bajaj Auto M.D. statement that the company will
not agree to the demand to allot shares to employees even if the strike
goes to for 500 days as even the top management has not been allotted
shares, built further pressure on workers and union leaders.
Actually employees’ stock options
have never been offered to blue collar employees’ in Indian
manufacturing industry. This practice has only been with few IT
Organisations. Tata Motors and Mahindra & Mahindra allotted shares
only to top management in the R&D division and not to workers. In
manufacturing culture loyalty of the employees cannot be bought by
giving shares to them. Moreover, the ESOP has never been a part of union
negotiations in Indian industry. It can be said that Mr. Bajaj has done
a good job by rejecting this demand firmly from the day one. His stand
has insulated the entire manufacturing sector of the country from such
absurd demand of unions. In future workers unions will think twice
before raising such demand.
Side by side management also suspended 22 workers who were found involved in various issues of indiscipline and go-slow.
At the end, workers union could not get even a face
saving medium. Suspended workers have not been taken back and management
only assured that suspension cases would be considered “objectively and
sympathetically”. The cause as well as timing of the strike was wrong.
They had to call off strike without any of their demands-including
substituting new wage agreement-met.
The lesson from Bajaj Auto case is clear-management should never compromise with their basic business values
and principles. In labour management conflicts, opting for short term
peace will surely breed long term problems that develop in to more
complex relationship and lastly workers unions should demonstrate enough
maturity while raising demands. Being tough in IR is not bad always.
source :
www.businessmanager.in
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