The Singareni Collieries, owned by the state and central government, faces significant challenges including accumulated losses of ₹12.19 billion, low employee productivity, and a large number of self-designated unions. Key issues stem from poor management communication, high union influence, and strikes related to safety concerns, leading to poor industry relations. Proposed actions include increasing transparency, strengthening management, incentivizing performance, reducing union counts, and improving employee welfare, aiming to enhance productivity and reduce losses.

1. Singareni collieries: From gloom to glory
Venkatesh K G

2. Overview:
• Owned by State government (AP) & Central government – 51:49
• 10,435 million tonnes of coal reserves
• 114,486 low productive employees
• Lot of self designated unions (103)
• declared sick (bankrupt twice) – 1992 & 1996 with accumulated loss of 12.19 billion
• Post-liberalization pressurising domestic energy & power players.

3. Issue:
• Accumulated loss of ₹12.19 billion
• Low productivity of employees
• Liberalization. Competitive coal price from China,Australia
• Large number of strikes
• Large number of unions : 103
• Poor industry relations because of strike & quality issues
• Low transparency & lack of trust with the management
• Employees : poor, illiterate, alcohol and gambling

4. Cause:
• No communication to labours from top management
• Weak top-management
• No accountability/recognition for excellence
• Low motivation level – not following shift timings
• Strong influence of unionism- 103 (self-designated)
• Illiteracy & unskilled labours
• Strikes due to safety issues & accidental deaths
• High number of employees (114,486)

5. Action:
1. Increase transparency in the organization
• Direct Letter communication
 illiteracy
 Opposition from union
• Involvement of employees in client interaction
2. Strengthening the top management team
3. Motivation
• Introduction of best Mining worker & non-Mining worker awards / performance based incentive program.
• Involvement of employees in client interaction
• Employee exchange program to foreign nations & employees education
4. Introduction of union elections & reduce union count to 5.
5. Demonstrate care & concern
• Camps on nutrition and ailments
• Improve safety in the organization & conduct safety camps
• Accommodation facility for employees hospitalised in Hyderabad
• Personal touch by interacting by hospitalised victims
• Interaction with diseased employees family and explain benefits
6. Centralization of recruitment & Transfer to optimise employee count

6. Result:
• Increased employee productivity & decreasing accumulated loss
• better employee satisfaction

7. Inference:
• Transparency has to be maintained in the organization
• Better to keep employees in client interaction/problem discussion to keep them motivated
• Motivate employees by awarding their superior performance & incentivise them
• Under crisis, explain employees the issue and educate them the situation

8. Thank you