Bajaj Auto Strike: Statement of Vishwa Kalyan Kamgar Sanghatana
Hresonance believes in the principle of ‘Hear The Other Party.’ In keeping with that policy, Hresonance invited statement of the Union at Bajaj Auto employees, Vishwa Kalyan Kamgar Sanghatana on the issue of ‘Stoppage of Work’ and the demand regarding shares of the Company. Here is their response published unedited. The views expressed here are exclusively of the VKKS, and not of this blogger.
Statement of Vishwa Kalyan Kamgar Sanghatana
“Stoppage” at Chakan, Pune Plant of Bajaj Auto Ltd,
From 25thJune, 2013
We are the only MRTU recognized Union at Akurdi and Chakan plant. We believe that cooperation is must but conflict is also an expression of some un-addressed lacunae in the rationale of our system and culture.
We take the opportunity to convey to you our anguish that despite our sincere efforts to develop good harmonious relations, but the Bajaj management does not changed its anti labor and anti union
approaches and actions. To protect the workers interest, Union had been compelled to refer the various matters in court of law. At present various matters are pending before the court of law. There is a need to understand the root causes of the problem and hence we are giving you the brief background and facts in chronological order:
[Photograph of Mr Dilip Pawar, President of Vishwa Kalyan Kamgar Sanghatana]
- Scenario at Chakan Plant before formation of the Union: As you know that Chakan plant has been set up in the year 1999. In early days management shown lot of dreams to the employees and created hopes for better future. But over a period of time employees understood and experienced that management ditched them by giving false hopes and assurances. Employees started experiencing exactly opposite what was committed to them by the management. The workers were experiencing various kind of harassments as follows:
a) The management made overtime compulsory and refused to pay overtime.
b) The management arbitrarily deciding the shift timings and compelling workers to adjust themselves accordingly.
c) Workers were getting overloaded with excessive workload and if any worker raised the grievance he was getting ill treatment by abusive language and punishment.
d) The wages of the workers were low and getting very low yearly increments.
e) There was no job satisfaction among the workers. The tag of ‘World Class Company’ was just for namesake. There was totally negative approach towards workers.
f) The workers were getting punished by inhumane way.
- Formation of the Union at Chakan Plant:
Because of above mentioned adamant and suppressive attitude of the management, the workers at chakan plant decided to form union, in the month of January, 2010. There was tremendous fear among the workers in terms of formation of union but at the same time harassment of the management was at its peak level and hence they decided to join Vishwa Kalyan Kamagar Sanghatana (VKKS) which was the recognized union under MRTU for Akurdi Plant. In due course of time VKKS got official recognition under MRTU for Chakan Plant.
- Scenario after formation of the Union:
a) The First General Body Meeting (G.B.M) of Union held on 26th January, 2010 and afterwards officially VKKS has been recognized by the Management. The issues got discussed in peaceful manner and the first Collective Bargaining settlement was signed on 21st May, 2010.
b) In September, 2010, VKKS got official recognition under MRTU and good relationship got established. All the issues were getting discussed and resolved across the table and day by day relationship was getting improved.
- Pant Nagar Episode:
a) The Pant Nagar plant got established in the year 2007. In Pant Nagar also chakan episode got repeated. The situation at Pantnagar Plant was similar to that of the Chakan Plant and because of this attitude of the management the workers at Pantnagar started agitations in the month of May, 2012. These agitations at Pant Nagar were the outburst of the anger against management harassment and declaration of very low wage increment. Some of the workers approached VKKS to support their agitation. VKKS suggested the Bajaj Management at Akurdi to establish dialogue with Pant Nagar workers but management refused to discuss. As a result of this the workers had no option but to form union. The workers of Pant Nagar knew that it is next to impossible to get union registration in Uttara-khand and therefore they requested Vishva Kalyan Kamgar Sanghatana for the membership. Considering their situation and request VKKS given them membership and majority of the workers from Pant Nagar joined VKKS.
b) The first positive step has been taken by VKKS and directed all workers to withdraw the agitation and start production. In this way all workers resumed their duties and brought normalcy.
c) The above mentioned episode has been informed to the Bajaj Management through an official letter by VKKS but management refused to accept any letter. The management also refused the Charter of Demands submitted by VKKS for Pant Nagar Workers.
d) The argument of the management was, the registration of VKKS is only for Maharashtra and they don’t have any right to take up any membership from outside Maharashtra. The VKKS submitted all the documents including the letter from Additional Commissioner, Pune. But management was adamant on their stand and surprisingly, the Labour Department of Uttarakhand also using the same language that of a Management. Therefore, VKKS has been compelled to refer this matter at Nainital High Court. On the other hand management refused to bargain collectively for Pant Nagar workers, we have been compelled to refer this matter under conciliation. Finally, Hon. High Court given a judgment in favour of VKKS and directed the Labour Department of Uttarakhand to start the conciliation process with VKKS.
e) We hereby bring to your notice that all our members have been harassed by the management and compelled them to accept the settlement (which is totally one sided, unfair and illegal) signed by the puppet Union. This strategy is very much short sighted; this cannot be the permanent solution. This achievement of the management is just due to sheer power and there is no ethical ground at all. History again and again proved that such strategies don’t work in the long term.
f) In short, we never approached Pant Nagar Workers for joining the Union but due to harassment by the local management and low increment declared by the management they joined VKKS. In other words management compelled them, due to their wrong behaviour, to join VKKS. Its management failure and to save themselves they are blaming VKKS.
- Changed Relationship at Chakan Plant after formation of the Union at Pant Nagar.
It seems that to take the revenge of Pant Nagar Episode, Management started harassment at Chakan Plant. Therefore, they decided to vitiate the atmosphere at Chakan. Before, Pant Nagar Episode the relationship at Chakan was normal, how all of a sudden whole atmosphere got vitiated? To vitiate the atmosphere at Chakan management started harassing the workers in following way:
a) Created an issue of line balancing and created unnecessary dispute to take action against union members.
b) First giving additional manpower, achieving higher targets and then removing additional manpower and asking for the same level of impossible targets. Based on false targets and false reports management started giving warning letters, show cause notice, suspension, pending enquiry suspension and dismissals.
c) From June 2012 (after the Pant Nagar Episode) management started various actions. For your kind information we are giving it in the following table:
|
Sr. No.
|
Particulars
|
Numbers
|
|
1
|
Suspensions
|
22
|
|
2
|
Pending Enquiry suspension
|
8
|
|
3
|
Show cause Notice and Enquiry
|
2
|
|
4
|
Domestic Enquiry
|
3
|
|
5
|
Terminations / Dismissals
|
1
|
d) Management just not stopped from taking false and illegal actions but also refused to review the increment as per settlement dated 21st May, 2010. Therefore union had no option but to terminate Long Term Settlement. Against said termination letter management went to Court.
e) Management were using flexible manpower like earn & learn, trainee and contract workers to frame false charges against union members and again we have been compelled to file the cases against Company on the issue of earn & learn, trainee, contract, etc.
f) Management started giving impossible production targets with an objective of taking action against union members and hence we demanded scientific time study based on ILO norms. This matter is also referred to court of law.
- Requested for Dialogue: In short the relationship at Chakan got totally disturbed due to WRONG, UNFAIR and ILLEGAL behaviour of the management. The management always compelled us to refer most of the issues to court of law instead of resolving the same through discussions.
The Workers were in vulnerable situation and such situation is not good for any organization in terms of growth and sustainability. There is entire list of issues which prevents the development of harmonious industrial relations in the Company. In the absence of a dialogue and in the face of utter lack of desire being demonstrated by the management, it was very difficult to either build good harmonious relations, or to adopt reasonable attitude. We were finding it impossible to maintain relations or to resolve issues amicably.
- Requested for Intervention to bring normalcy: We requested to M.D. Mr. Rajeev Bajaj to save the relationship. We also requested him to give us an opportunity to present our case with documentary proofs and to prove our position. It is unfortunate that M.D. never took it seriously. On the contrary the situation further worsened.
Violation of the Settlement dated 21st May 2010 and other issues in Chakan Plant:
The issue of contract labour, earn & learn, trainees, violation of the settlement dated 21st May, 2010 are pending before the court of law. Union have been compelled to file cases on the above matters only because management refused to discuss these issues across the table.
The Vishwa Kalyan Kamgar Sanghatana and the Bajaj Auto Ltd signed the settlement on 21st May 2010 deciding the wages and service conditions of workmen working at Chakan Plant. As per the settlement the increase of 12%, 8% and 8% was agreed for the first, second and third year respectively.
In the settlement dated 21stMay 2010, it was agreed that if the annual increment awarded to the similar category of employees across the Bajaj Auto Ltd. is higher than the above mentioned increments in that case higher % of increment will be made applicable to workmen covered under said settlement. Management refused to do so and violated the clause no. 17 – C of the settlement. And hence Union have been compelled to file case in Industrial Court, Pune.
Further, in the said settlement, though the settlement is of 9 years, it was agreed that wages will be discussed and reviewed periodically every 3 years. It was further agreed that for any reason whatsoever the wages/salary review is not done after every 3 years, both the parties shall have a right to terminate the settlement for the remaining period. (Clause No. 2-B). Bajaj Management refused to “REVIEW” and hence Union had no option but to terminate the settlement as per the said clause and submitted fresh Charter of Demands. Bajaj Management refused to discuss demands submitted by the Union and hence Union have been compelled to admit this matter under conciliation at Labour Commissioner Office, Pune.
Management filed a case against union in terms of cancellation of the registration of the Union. The matter is pending before the Hon. High Court.
From all above one can understand that the basic objective of the Bajaj Management is to demolish the Union. They did not like the fact that Chakan workers and Pant Nagar workers joined the Union. They succeeded at Pant Nagar by paying heavy price and now trying to adopt same strategy at Chakan.
Why stoppage?
From the above mentioned facts and considering the Bajaj History it is now very clear to the union that Bajaj Management will never share their profitability with workers. Bajaj Management always shared profit with the management staff by Paying “BONUSES & INCREMENTS” but always refused to share the profitability with the workers. Earlier we thought that at least this sharing can be done by getting reasonably good wages and better service conditions. But management always refused to do so and never consider profitability while deciding wage rise and hence to get permanent solution in terms of profit sharing we demanded “500 shares” in the month of January 2013. Bajaj Management did not respond to this demand. Therefore union have been compelled to go on “stoppage” from 25th June, 2013. Only after “stoppage”, Bajaj Management is trying to highlight this issue. While addressing the press, Mr. Rajeev Bajaj rejected this demand by saying “ridiculous”. How this demand is ridiculous? On the contrary this demand is very much “PRO-COMPANY”.
This demand is made in order to motivate workers for better performance and increase prosperity. The prosperity due to better performance should be shared with workers, not fully but to some extent, so that they are bound to feel themselves as a part of the Company. Also accepting this demand will be a tribute to Late Shri Jamanalalji Bajajwho believing in Gandhian philosophy of “Trusteeship”. This demand is based on Trusteeship and will improve harmony & peace in the Company. Thus this demand is to the advantage of both the parties. Also this demand will generate direct stake of workmen in the overall performance of the Company and also induces motivation not only to perform better but also become vigilant & cooperative in inter-functional integration of the work organization.
In last few years the Performance of the Company is outstanding but workers could not get their due share.
|
PARTICULARS / YEARS
|
2001
|
2002
|
2003
|
2005
|
2006
|
2007
|
2009
|
2010
|
2011
|
|
|
TOTAL CAPITAL EMPLOYED
|
3150
|
3682
|
4253
|
5501
|
6325
|
7233
|
3443
|
4268
|
5265
|
|
|
INCOME
|
3964
|
4402
|
5070
|
6322
|
8106
|
10076
|
8932
|
12043
|
16974
|
|
|
EXPENDITURE OTHER THAN LABOUR COST,
|
3169
|
3395
|
3826
|
4752
|
6037
|
7803
|
7265
|
8929
|
12748
|
|
|
DEPRECIATION & INTEREST
|
||||||||||
|
VALUE ADDITION
|
795
|
1007
|
1244
|
1570
|
2069
|
2273
|
1667
|
3114
|
4226
|
|
|
EMPLOYEES SHARE IN VALUE ADDITION
|
244
|
237
|
283
|
249
|
274
|
301
|
354
|
399
|
488
|
|
|
CAPITAL SHARE IN VALUE ADDITION
|
551
|
770
|
961
|
1321
|
1795
|
1972
|
1313
|
2715
|
3738
|
|
|
EMPLOYEES SHARE IN VALUE ADDITION (%)
|
31
|
24
|
23
|
16
|
13
|
13
|
21
|
13
|
12
|
|
|
CAPITAL SHARE IN VALUE ADDITION (%)
|
69
|
76
|
77
|
84
|
87
|
87
|
79
|
87
|
88
|
|
|
RETURN TO CAPITAL (%)
|
17
|
21
|
23
|
24
|
28
|
27
|
38
|
64
|
71.00
|
|
|
Gross Profit
|
369
|
587
|
788
|
1086
|
1580
|
1728
|
958
|
2411
|
4350
|
|
|
Net Profit
|
249
|
518
|
534
|
764
|
1123
|
1237
|
654
|
1702
|
3339
|
|
|
Ratio of Employees Share & Income
|
6.16
|
5.38
|
5.58
|
3.94
|
3.38
|
2.99
|
3.96
|
3.31
|
2.87
|
The above table reveals that though the Performance of the Company got improved drastically, Employees share in Value Addition reduced drastically from 31% to 12%. Even among Employees the share of workers is negligible as against management staff.
All workers i.e. around 1450 workers are getting around Rs.300/- per Pulsar. It means per worker per Pulsar amounts to 22 PAISA !!!
Share Holder & Management Staff get around Rs. 16700/- per Pulsar
Governments get around Rs. 10000/- per Pulsar
Dealers get around Rs. 10,000/- per Pulsar
What about workers who creates this wealth? They are getting only around Rs. 300/- per Pulsar & Per worker it is 22 PAISA.
Therefore, what is wrong in demanding shares?
VISHWA KALYAN KAMAGAR SANGHATAN
President General Secretary
Thomas Friedman in his NY Times Essay essay asks 'Why are people taking to streets?" And says this among other things:
A second factor is the way middle-class workers are being squeezed between a shrinking welfare state and a much more demanding job market. For so many years, workers were told that if you just work hard and play by the rules you’ll be in the middle class. That is just not true anymore. In this age of rapid globalization and automation, you have to work harder, work smarter, bring more innovation to whatever job you do, retool yourself more often — and then you can be in the middle class. There is just so much more stress on people in, or aspiring to be in, the middle class, and many more young people wondering how they’ll ever do better than their parents."
The story is not different for middle level managers too.
Vivek
Salil Chinchore writes:
Thank you for bringing out other side of Bajaj story. At some level, there is resemblance to Maruti episode where the management wanted to be in the driver's seat in union formation.
There are few aspects of ER that really pose challenge for the management going forward:
1. How can 'aspirationality' of skilled workforce be addressed in a non collective bargaining environment? Nokia, Bajaj, Asian Paints cases indicate that when the new entrants don't see his happening, they resort to unionization.
2. Importance of 'fair and transparent' approach in policy and program implementation. Be it GET, Earn & Learn Programs, contract labour deployment.
3. Respect and dignity for the employee at individual. When Hyundai employees formed union and went to the LC, he was surprised. What prompted them to form a union despite getting best of salaries and perk in Chennai? Lack respect – was their response.
4. Democratization of workplace- how can managements involve the shopfloor in management decisions.
Regards,
Salil
Sent from my iPhone
It is very interesting to read this. Two world views coming together, however, each being incomprehensible to the other.
1. A customer pays for a product based on his assessment of value, as seen in the context of market offering from other suppliers. Similarly, factors of production should also get priced on the basis of prices that they command. This demand-supply curve is basis of market dynamics.
2. It appears that market dynamics 'feel right' at the customer end, but not for any other factor. Conceptually, this is tough to carry out. A mixed system is bound to fall through its own contradictions. On a similar line, if Bajaj Auto was making losses, the Union would not have been able to argue that the management is being 'unfair', with no change in any other parameter.
3. At the same time, big corporations have got bigger over the last 5 decades. It is really less competition, and the stickiness of the consumer choices, that allows pricing power in the first place. So really, it is the consumer that is being dealt with 'unfairly'. Advertising, through its agenda of persuasion through subliminal route is one way of doing it.
4. The interesting conflict is really the Corporation Vs Consumer!!
5. At a system level, it is only the conditions of full or near full employment and ever increasing value addition, that ensures adequate compensation for the workers (actually all employees). Union memberships decline is such scenarios!
Knowing that in such situations, both sides generally exaggerate and present facts conveniently, I stay away from commenting on the letter. I would like to share a few general observations on the issues related to the employee relations in the country:
1. The responses of many managements to the subject of employee relationship indicate that employees are evolving faster than managements; the managements need an urgent reality check and learning.
2. The management education is increasing, rather than bridging, the gap.
3. The national obsession with 'money' has clouded our sense of justice and has completely off-balanced our thinking and we are using our newly learned business/management language to escape from harsh realities and our responsibilities.
We will witness such confrontations rising.
Vilas