ITC Interrobang Season 4 - Case Solution

1. Objective &
Agenda
Laws Industrial Disputes
Recognition Leaders
Trade Unions
Union Dilemma
Labour Welfare த ொழில் உறவுகள்͛
Policies
Gen Y Management
Sustainability
Case Analysis
 Understanding the Unions in Different geographies
 Major trends and perceptual findings
 Understanding the Evolution of Trade Unions in India
Research
 Primary Research consisting Questionnaires, Interviews, Focus GDs
 Secondary Research Findings
Findings
 Management’s, Worker’s and Union Leader’s view on Union
 Gen Y Expectations on workplace
Unite ITC
 Steps to take for engaged workforce
 Worker welfare activities
UNO and TREE Model
 Framework to unite Unions
 Framework to engage workforce
Union OR No Union
 Analysis of both the situations
 What workers expect from the Management
Strikes
Lock Down
Rewa Singh
rewa_singh@scmhrd.edu
SCMHRD
Surajit Mahapatra
surajit_mahapatra@scmhrd.edu
SCMHRD
Shahshank Jha
shashank_jha@scmhrd.edu
SCMHRD
Robin Jain
robin_jain@scmhrd.edu
SCMHRD

2. • Transition from single union to multiple unions
• Inclusion of Political affiliation
• Lose of trust amongst the workers
• Problem of Recognition based on Majority
• Pending court case
• Unwillingness of the both unions to sit and have a
common dialogue
• Employee first approach being sidelined in this power
battle
• Multiple Union Setup
• Political affiliation
• State laws on Trade Union Recognition present but
heterogeneous approach followed by Paperboard unit
• Recognition and collective bargaining to all the Unions
• Coexistence with increasingly segmented employee
population
Two perspectives of Trade Unions in the North:
Case 1:
• Dissident workers group
• Ever increasing complex and magnifying issues
• Workers following Transactional approach
• The connect and trust element between workers and
management
Case 2:
• Non-unionized set-up
• Focus of Employee Welfare Policies
• Problem of effective communication
• Free-riders, ownership issues and command control
In the North
View of East
Down South
Pulse – An IR Narrative
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?

3. IR Policies: Changing Paradigm – Are IR Policies Timeless and Sacrosanct?
0
200
400
600
800
1000
1200
1400
1600
1800
NUMBER OF INDUSTRIAL DISPUTES
0
5000
10000
15000
20000
25000
30000
35000
NUMBER OF MAN DAYS LOST ( ' 000)
0
1000
2000
3000
4000
5000
6000
7000
8000
1950-60 1960-70 1970-80 1980-90 1990-00 2000-10
UNION MEMBERSHIP
Focus on Welfare
Activities
Increasing number of
Contract Workers
Changing
Demographics
Socially Connected
Factors for
Decreasing
Trend
• Retrenchment and Layoff – Chapter V-A of Industrial Disputes Act, 1947
• Amendment of Contract Labor Law, 1970
• Relaxing norms for women factory workers
Economic
Policy
Reforms
Labour
Laws
Reforms
Traditional
Policies
Inclusive
Growth
Employee
Relations
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
(Ref: Indiastat.com , Labourbureau.nic.in )
(Ref: Changing Workforce demographics- AC Nielsen)

4. SCOPE OF RESEARCH
 Detailed Questionnaires
 Qualitative Interviews (Audio/Video)
 Visited factories and shop floors
 Met and Interacted with workers as well as
management
 Quantitative Interviews
DEPTH OF RESEARCH
ITC
HUL
John Deere
Nestle
Mahindra
Mercedes - Benz
Bharat Forge
Maruti Udyog Ltd.
Managers Interviewed: 8
Union Leaders Interviewed: 4
Focus Group Discussions: 5
Telephonic Interviews: 8
InsightsfromPrimaryResearch
“Political affiliation is
the last thing we want
at our plant. We
support our workers
whole heartedly to gain
and retain their trust.
To look after the
interest of workers we
have Internal Union.”
“It is very easy to take
decision which looks
lucrative in hindsight
but to be responsible
organization the
management must
always have an eye
towards the future
implications of such
decision”
“We have observed
that in the presence of
Political influence,
workers’ welfare and
needs take a back seat
so we initiated the
formation of Internal
Union for the long term
benefit of our workers”
“The two unions (CITU
& INTUC) with political
affiliations have been
successful and peaceful
since many years in the
Kidderpore Plant of
ITC.
1. One Internal
Recognized Union
2. Discourage Political
Affiliations
3. No labour unrest
1. Support One Unit One
Union
2. Root Cause of Labour
unrest- Miscommunication
3. Providing ample growth
opportunities for workers
S. Bhave (Head – IR –
Bharat Forge Ltd.)
Shaweta Pandey
(GM- HR – HUL)
Prashant Gadepalli (Head Operations
,Electropneumatics Ltd)
Vipul Chawla (Assistant
Manager – IR – ITC)
Akhil Sharma – DM
(HR - IR) - Nestle
Kumar Nitesh – Manager
(HR - IR) – Maruti Udyog
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
What does the Industry has to say about the issue?

5. Findings from Primary Research
Management’s Point
of View
Union’s
Point of View
Worker’s Point of
View
• All 8 preferred having a single union in a plant,
ideally an internal union.
• All 5 Organizations discourage Political affiliation.
• 3 out of 5 Organizations initiated the formation of
Internal Union.
• They all focussed on creating the unity among Staff
and Workers.
• Management is observing a shift in the
characteristics in the new age work force and hence
they want the unions to be pragmatic.
• 3 out of 4 Union leaders were satisfied without any
political support.
• 2 of the 4 Union had cordial relations with the
management through participation in decision
making.
• Workers want the management to understand and
fulfil their needs.
• They want to be represented in front of the
management.
• They give very high importance to personal connect
with the management.
40% 75%
Gen Y Population in Workforce
50
139
184
380
0
100
200
300
400
Category 1
Builders Baby Boomers Gen X Gen Y/Millennials
Work Force Mix (in Millions)
2013-14 2030
Interview with Gen Y
Workers(45) Managerial Opinion Gen Y Opinion Survey
Transparency
Collaboration
Respect
Learning &
Growth
Work-Life Balance
Flexibility at work
Being part of a team
& coordinating to
achieve common
goals
Openness in
processes & regular
communication
Learning new skills
& continuous career
progression
Respect for oneself.
Being able to influence
others & be
recognized for
efforts
Feedback
Regular and constant
feedback is expected
from the management
Gen Y Expectations
at Workplace
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
(Ref: Helping Gen Y succeed in the workplace-Ernst & Young)

6. The suggested approach
- Unite ITC, leading to
exclusion on External
influence and making of
an Internal Union.
ComplyProposePrepareConnectEngageIdeateSelect
The fewer the better – Moving towards creating a single internal representation of the majority
Identify
Leaders
from both
Unions
Formulate
Worker
Welfare
Schemes
Initiate Union
Participation in
Decision
Making
Passive Trust
Building to
reduce Political
Influence
Build contingency
plans to tackle
any foreseen
unrest
Propose the "One
Unit One Union"
idea to the Union
leaders
Keep the Labour
Commissioner in
loop through out the
entire process
1.OwnaMachine
2.Welfare
Committees
3.SolveerVelveer
ManiThrough the
criteria of
minimum
breakdowns, allow
the worker to own
a machine at work
to create a sense of
belongingness
towards their work
and in turn the
organization
Canteen
Committee,
Safety
Committee,
Hygiene
Committee and
Fun Committee
can be formed to
engage
employees at
work and to gain
their trust.
Through works
committee (Sec 3,
Industrial
Disputes Act,
1947), we can
conduct
initiatives like
suggestion boxes;
discussion forums
etc. for an hour
once a week.
Position on Union Recognition
According to Code of Discipline (As per 15th Labour Congress), the union with the largest
membership will be given recognition as principle bargaining agent. (Ref: Balmer Lawrie
Workers' Union, vs Balmer Lawrie And Co. Ltd. And Ors on 21 December, 1984)
(Equivalent citations: 1985 AIR 311, 1985 SCR (2) 492)
In the present scenario, there is a need to identify the true majority:
• Present situation - 16 invalid votes,
• Proposal - Request to the Labour Commission to conduct secret ballot elections
Reference Cases:
Madras High Court - MRF United Workers Union vs Government of Tamil Nadu on
8 September, 2009
Supreme Court of India – Food Corporation of India Staff vs Food Corporation of
India and ORS on 17 February, 1995
Suggested Welfare Activities
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
Engage and Prepare: The Unite ITC Approach

7. Analysis
Handling Factions within the Union Leadership
UNO - TREE
Removing
the Causes
Controlling
the Effects
Destroying Liberty
Providing Equal
opportunity to all
Providing Equal
opportunity to all
Destroying Liberty
Nurture
Focus on Worker welfare
activities
• Leadership
Development
Programme
• Family Day
• Medical support to
workers once a month
Unite
Align the workers and union
leaders towards the
common goal of the
Organization
• Mentor-Buddy
Programmes
• Reverse Mentoring
Programmes
Opportunity
• Career Path for workers & Union Leaders
• Promotions and Opportunities in technical as well as Administrative roles
• Diversity in Job Roles : Job Rotation, Enrichment and Enlargement.
• Criteria for Promotions and Opportunities:
 Last 3 year’s Performance
 Disciplinary Behavior
 Attendance
Employee First Approach
Train
Training of Union leaders on how
to effectively bargain with the
Management and on how to
effectively manage the demands
of large work force
Escalate
Facility for workers to report
anything suspicious or whatever
he/she feels to the Management
anonymously.
Realize
Realization of Accountability and
Responsibility of the position of
Union Leader by on-the-floor
more personal Interactions with
other workers which would focus
on worker’s problems.
Explain
Elected Union leaders to hold
monthly meets with workers to
explain their negotiations (if any)
and steps in the past month
towards employee welfare and
justify those actions.
TheTREEModel
Vaibhav Paharia – AM
(HR - IR) – Mahindra
1. One Internal Union
2. We are fair, firm and
opportunistic when it
comes to workers
3. Preference for mutual
dialogue
Thomson Javier–Senior
Manager – Mercedes Benz
1.Initiated Formation of
Internal Union
2.Trust Building by providing
growth opportunities
3.Inclusion of Performance
Criteria in promotions
Solution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
Handling Factions and Adopting Employee First Approach – UNO and TREE Model

8. Analysis
Actively
Disengaged
Engaged
Not Engaged
51%
23%
50%
15%
35%
Category of Benefit Union
Workers
Non Union
Workers
Retirement 89% 48%
Medical 79% 50%
Paid Sick Leave 82% 62%
Paid Vacation 75% 74%
Paid Holiday 81% 75%
Unionized employees are better off in terms of receiving
benefits
The non-unionized setup has better engagement level
and productivity
Non-Unionized Setup
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
Unionized set up OR a Non-unionized one? – An Analysis
26%
Union Non -Union
(Ref: Unions & employee engagement, study by Gallup)

9. What really matters for workers?
Organization: John Deere
Plant Location: Sanaswadi, Pune
Sample size: 120 workers
Data Collection Techniques: Personal Interviews,
Questionnaire
Age Profile:
0
20
40
60
80
20-30 30-40 >40
Total Workers
Data Analysis
Tool Used: SPSS
Technique Used: Co-relation and Factor Analysis
Factors Correlation
Involvement in Decision
Making 0.097108
Rational Feedback
Mechanism 0.056259
Electioneering Process 0.090348
Membership Services 0.517406
Accountability 0.245356
Component Matrix
Component
1 2
Decision Making 0.727 -.338
Rational Feedback Mechanism 0.803 -.279
Healthy Electioneering Process 0.746 .296
Membership Services .349 0.727
Accountability -.009 0.517
Co-relation
FactorAnalysis
Recommendations: To initiate and assist in the Formation of an Internal Union in the Plants and to restrict any external influence.
Focus on welfare services
Workers inclusion in decision making process
Transparency in communication
Emphasis on Feedback and Mentoring
Union Office Bearers
Dept 1 Rep
Workers(Senior
-Tenure Wise)
Dept 2 Rep
Workers(Senior
-Age Wise)
Dept 3 Rep
Workers(Top
Performers)
Dept N Rep
Workers
(Gen Y)
Full Time Paid
Workers
Rotational
(Quarterly)
DecisionMaking
Committee
UNO - TREESolution – Unite ITCKey FindingsAnalysis Research Union/Non-Union What matters?
Factors Influencing worker’s Motivation: Study and Recommendations