Saturday 22 December 2012

Ritika Malik_HRLP 037_Industrial Relations_Dec 2012_Manesar Case


"THE MANESAR STORY"


Human beings have always been considered most important factors of production.  Since other factors can not speak or react against the treatment meted out to them by the Management, Government or the Society, human beings particularly Labour do react if not handled in time and with required passion and concern. Incident at Maruti – Manesar plant on 18 July 2012 led to brutal killing of Awanish Kumar Dev, Senior HR Manager, injuries to about 100 Managers, destruction of Company property and total loss of trust between workers and Management.
There is never single root cause of such unfortunate incidents and never one single party entirely responsible.  From the class discussion, I learnt that the main causes of the strike were compared to Gurgaon, younger worker and supervisor population at Manesar to cut costs, no shared culture at Manesar as existed in Gurgaon- extreme work focus vs. people focus, extreme focus of Japanese management on target achievement, poor understanding of a Union ‘s functioning among the young Associates, break in communication channels. The associates were unable to surface the issues, no uniform grievance redressal mechanism for Associates. I also consider the main cause to be the outdated labour laws alongwith inaction by the Government inspite of knowledge about violation of law by the Management regarding casual labour.  Present labour laws are not enough to fulfill aspirations of the labour under fast changing economic and social conditions.  Outdated laws governing labour have not only affected Maruti but labour unrest at several other manufacturing units like Rico Auto, HMSI, Sona Steering, Hero Honda, Bajaj, Denso and several other factories located in Haryana requires urgent changes in labour laws.
Definitely Management policy of employing casual workers and not according permanent status to those workers even after they work for number of years was the single most important reason leading to the unfortunate incident on 18 July 2012.  Further, Government of Haryana choose to overlook violation of law and continued to appease Management.  Even the principles of tripartite negotiations was given the go by.
Unions take welfare and other measures for all the workers.  Individual grievances, if considered relevant are also taken up by the Unions.  They try to reach a negotiated settlement which is then implemented by the management.  However, every individual has different aspirations and it is next to impossible for the management to negotiate with individuals.  Union representatives decide more important issues for general welfare of all the workers and then take up with the Management.  This leads to possibility of finding practical solution.  Likewise each industry and each company has peculiar working conditions and factors.  Representatives of external union, although experiences in negotiations, do not understand those peculiarities and try to convince Management to follow what is decided in other sectors.  This makes negotiations difficult for management and they they prefer to deal with internal Unions.
Companies which require workers with basic education level normally have strong internal Union.  Encouragement by the Management for dealing with the internal union also helps in forming strong union with which Management is comfortable to deal with.  Under these conditions strong internal union avoid outsider influence and are confident in looking after the interest of their members.   Inspite of this certain companies prefer external union as they have professional people who possess negotiation skills are unbiased and are aware of prevailing economic and social conditions of the economy as well as the Industries.  They are practical and understand limitations of the Management.  However, internal union may have representatives who are not educated and lack negotiation skills.  They may not understand difficulties faced by the company and many times they get swayed by sentiments and are generally biased because of their own limited experiences.  I feel if Union at Maruti – Manesar had involved more profession people for their negotiations situation would not have gone out of hand and this unfortunate and undesired incident would not have taken place.
There is increase in number of incidents involving  Labour and Management in the recent past.  Our leaders from the industry have probably forgotten that Labour is different from  Building and Machinery and cannot be ignored if they wish to prosper. We also need to amend outdated laws and bring them in line with changing economic and social conditions.  We can never overemphasize requirement of proper implementation of laws as there is no logical reason for Haryana Government to let Maruti continue employing so many casual labour for jobs which were permanent in nature.  Maruti also did not realize the consequences of their policy till this unfortunate incident and now have committed to employ permanent employees from the year 2013.  If applicable law was implemented earlier probably Awanish Kumar Deb would have been alive. 

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