Trade Unions as Business Partners – The Emerging Trend?
Hill Harper, the American actor is reported to have said, “We all have different timetables in reaching and realizing that being in healthy partnership is better than being on our own.”
Surely he said it in a different context, but I feel that it is very apt for the industrial relations as well.
Think of how the relationship between management of an organisation and the union of employees undergoes changes. All industrial relations managers would have experienced the ‘Form, Storm, Norm, Perform’ stages of building relations. [Read more about these stages here].
[pic shows Dilip Pawar]
The latest organisation to experience this is Bajaj Auto. In a recent seminar Dilip Pawar, the articulate leader of Bajaj Auto Ltd. Company’s workers’ union called “Vishwa Kalyan Kamgar Sanghatana” [VKKS] spoke cheerfully and with enthusiasm about the settlement which the Company and its fallout. One may say that the parties are in their ‘honeymoon’ period, but there were several interesting points to note, and those were not surely lost on the keen observers. Here are some of those points:
Dilip Pawar said that the Union felt that they must change the way their company’s management thought of them; and in order to do it they realised that they had to change themselves first.
While recognising that some conflicts were inevitable, he said that the first step was that nobody ‘cursed’ the management in the gate meetings in the 65 day strike in 2006.
The union leadership realised that with establishments closing down like they experienced in Akurdi factory of Bajaj [you will recall that it was abruptly closed down] or downsizing substantially, it was necessary to ensure that the workers’ families had a second source of income. This led to VKKS actively training women family members to be self-employed. Beginning was made with training a batch of 25 women and it was followed by more batches. Reportedly many women so trained are earning a decent income today.
In 2010 the Chakan employees joined VKKS. By this time the VKKS had realised that they need to gain skills of negotiation and persuasion so they approached Arvind Shrouti of Option Positive for guiding them. They learned a positive approach to industrial relations from Arvind Shrouti. They underwent training in various subjects such as work measurement. VKKS used TPM, RCA [Root Cause Analysis] and ‘Why-Why analysis’ to gain deeper understanding of some of employees’ concerns and to find solutions.
The union committee realised that their member-employees felt the need to own an apartment. VKKS has recently launched an ambitious project which will provide housing to a few hundred workers in a multi-storey building. The plans are ready [and were shown to us].
The union also proposes to construct a small Mall which can provide a place for business undertaken by the women family members of an employee!
VKKS embarked on a visioning exercise in 2012 [yes, visioning exercise! You can read the original blog post ‘Bajaj Auto Union: First Steps On a Road Less Travelled’ here].
Their vision included among other things:
Improve Union’s image in the minds of people in general
Empower women
VKKS also defined their policy towards the Company [Wow!] which included among other things:
The Brand will not be attacked even during conflicts.
Observe self-discipline [leaders must be role models]
Workers on high absenteeism will not be chosen as VKKS representatives.
The union will adhere to quality standards, no short cuts.
Respect for all.
Practice transparency in dealings.
Champion multi-skilling. Many representatives are themselves ‘multi-skilled.’
Data based management of VKKS. The union has data pertaining to all employees, and they often talk with facts and figures. [They were able to negotiate lower loan rates and terms for employees who desired to own an apartment in the proposed housing project because VKKS had all data of employees.]
[HR Managers of Bajaj Auto confirmed during informal discussions that the IR climate within Bajaj Auto had substantially improved and was very positive.]
Bajaj Auto and VKKS fought bitter battles. [See blog links given below]. They had “different timetables in reaching and realizing that being in healthy partnership is better than being on [their] own.” The new stance [see vision statements] of the VKKS is not just positive; it almost re-positions VKKS as Business Partner.
A lesson for many unions. Any takers?
Vivek Patwardhan
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.”
“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.”
Note: One more blog post in this series ‘Trade Unions as Business Partners – The Emerging Trend will be published on Oct 6, 2014.
See also:
1. Friendship Day [finally] at Bajaj Auto http://hrblog.vivekvsp.com/2014/08/friendship-day-finally-at-bajaj-auto.html
2. Bajaj Auto scoots to bigger showdown http://hrblog.vivekvsp.com/2013/07/bajaj-auto-scoots-to-bigger-showdown.html
3. Building Employment Relationship at Bajaj Auto http://hrblog.vivekvsp.com/2013/03/building-employment-relationship-at.html
4. Bajaj Auto strike: Statement of VKKS http://hrblog.vivekvsp.com/2013/06/bajaj-auto-strike-statement-of-vishwa_5473.html
5. Taming of the Elephant http://hrblog.vivekvsp.com/2013/07/taming-of-elephant.html
Very positive approach from the Union. We, as HR | IR managers, must try and facilitate Union leadership to think on these lines. It will surely change the dimensions of IR. – Amit Karandikar, ATUL Ltd.
Sumit Neogi [RIL]
As ever great insights sir. Wonder how we can communicate this to our unions. They may end up asking a Marathi version. :))
Sonali Sarma [ACC]
Good article…VVKS changed .. in the way they did things …do managements learn and change too? What changes in thinking/values do managements undergo ..what are the typical conversations that happen in boardrooms when managements also decide to be "different" " inclusive" or "progressive". What kind of HR leaders are the ones who might be catalysing these changes….all these thoughts came to my mind…when I read through.A penny for my thoughts would be welcome…or you could direct me to read something else which will help !! Good way for me to begin my day 🙂
Dipak Gadekar [Voltas]
Nice piece. But I see this more as a Contingency Management plan through self-help and self-reliance, rather than business partnering.
Hope more Unions and their leaders learn from them and prepare themselves to mitigate the fall outs of an unforeseen contingency and in the process also strengthen their bargaining capability by having a fall back plan.
Off course above all, what is of prime importance is to have a positive / constructive approach which calls for a good understanding of business economics ! Whew….
Normally one experiences union as an institution of opposition rather than as an institution of governance. Most likely, the union also succumbs to this stereo type throughout its life. So, it is interesting that VKKS is operating out of the box rather than in the box (as described in Leadership & Self Deception) and trying to think differently. It is thinking like an employer, acting on 'employee welfare'. VKSS should take the management and fellow employees along in this en-devour, because this is not a path to be traveled alone. Equally, management has an opportunity and challenge like never before. Opportunity is to groom VKSS and guide them towards their vision. Challenge is to figure out what is management role in the new world!! But I must say, it is a good problem to have.
Thanks Vivekji for this sharing
Constructive union leadership is indeed welcome. Partnering is a must for synergy.
I particularly like the visioning at VKSS. I have always seen a sea change in union leaders attitude whenever i have goaded on vision in my training programs with union committee s.
In this case I agree with Dilip Gadekar that this is not really business partnering but a strategy in disguise.
I strongly feel that the women empowerment tag needs a serious questioning. Training women for income generation when husbands job are at stake is exploitation. It is a convenient shift of burden in the name of empowerment.
Is VKSS ensuring control of decision making of the women?
All in all the change is welcome and hope union management partnership s mature soon.
Thank you Vivek dada for sharing this wonderful initiative of VKKS. Introspection is the first step towards progress and the Union has shown tremendous humility, pragmatism and progressive attitude. Intelligence, skills and experience reside at all levels of the organization and the true potential of employees often is not brought to the fore. This new initiative of VKKS will create a new paradigm in management's view of the blue collar workers ..
A role model, to be benchmarked by the interested! Worthy of projecting at the national level. Revolution of sorts!