“MANAGERS: WE ARE KATTI WITH YOU”

UNION MANAGEMENT CONFLICT

AT PRECISION PARTS LTD.

Submmitted By
Group B

Anand Kaurav
Ankit Seniaray
Anurag Singh
Arnav Bansal
Arun Unni
 SITUATION ANALYSIS
Founded in May 1985 as joint venture between business group and a state government

Group chairman’s decision was to establish auto components business in the state

Team was handpicked by the Group Chairman

State government had pre-identified three growth areas for the industry

As one of the earliest acceptors, group had the luxury to choose strategic location

Chairman: “The company will not just make profits, but invest in upgrading the quality of life in the locality”

Area chosen was 90 Kms away from state capital, had a few tile factories, rice mills, gov. engineering college and a privately run Industry
Training Institute (ITI)
SITUATION ANALYSIS
Period & Year Growth Development
In 1985 Established
By one year 18-Members
By 1 ½ years • 50-Members: Trained with sophisticated machinery
Experiences 0 to 8 yrs. and advanced production practices
• 22 of them for sales/Commercial and and Japanese quality tools
Marketing
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
 SITUATION ANALYSIS

High priority task was training & development for Shop floor employees

PPL Employees Union (PPEU) was registered

PPEU was soon known as union model and the president was unanimously elected

Union had regular interaction with management through meetings

In March 2004, PPL grew to INR 820 crore company

PPEU and management entered into collective agreements every 5 years

Employees were exploiting double benefits for allowance for lunch

 SITUATION ANALYSIS
A section of employees were charged and union supported the decision

In next elections following the resignation of founder president, leadership underwent total change

VRS was implemented for employees with more than 15 years of experience

Strike for the management decisions

Mishap between duty manager and general secretory lead to emergency meeting of all managers and suspension of general
secretory

Showcause was given to all workers who did not report at their workplaces on time
MAJOR ACTORS
Chairman

Duty Manager

General Secretary of Union

President of Union

Plant Head

CEO

Chief Minister
 PROBLEMS
 Union president faced a difficult time due to internal conflicts
 Disciplinary actions & VRS – scheme
 Key union members left through VRS
 Regularity of the interactions broken
 Less involvement of CEO
 Disregard for emerging needs of Union
 Unethical approach for the dealing with disciplinary issues
 RECOMMENDATIONS

For Union
• Union security
• Improved wages, hours and benefits
• Collective bargaining process

For Management
• Build trust
• Bring back old culture of social activities
• Sensitization of management and supervisors towards labour needs
• Bring in third party if above attempts fail.
• Making efforts to understand relationship between organization and people