His innovative and positive approach is transforming industrial relations!

The title of this article might surprise readers who know Arvind Shrouti. A calm, composed, relaxed and smiling man does not fit the image of a rebel. Arvind has been a non-conformist in his actions so the mismatch will not surprise his close friends and followers.

Arvind Shrouti and I have been friends for about four decades. I do not remember our first meeting, but probably we met when he came to my office while working on his book on trade union leaders or I might have met him in the office Hind Mazdoor Sabha (HMS). My professor at Bombay Labour Institute (now called Narayan Meghaji Lokhande Maharashtra Institute of Labour Studies or NMLMILS) Dr Mrs Shanta Vaidya had then left the Institute and was leading the research wing of HMS, and Arvind was working with her on many projects. I often met Dr Mrs Shanta Vaidya, and the chances are that I might have met Arvind there.

Arvind Shrouti wanted to qualify as a Chartered Accountant, but he refused to implement an unethical and illegal decision of his senior during an audit and chose to quit ‘articleship.’ He read for post-graduation in Personnel Management. Moving to Mumbai he had three plum jobs in hand in various companies as Personnel Officer, but he chose to join HMS (on a subsistence pay!) because he saw an opportunity to do meaningful work. That, perhaps, was his first unusual step in his career.

At HMS, Arvind Shrouti worked under the guidance of Vasant Gupte who was an eminent thinker, a well- known trade union leader. He was simultaneously working under the guidance of Dr Mrs SA Vaidya. He was deeply influenced by both of them. Under their guidance he worked on several ILO projects. By this time, Arvind had read and was influenced by Karl Marx and his writing. Though he did not accept communist ideology; his resolve for contributing to the field industrial relations grew stronger.

An opportunity for training took Arvind Shrouti to Sweden and many European countries. His theoretical understanding developed here, and he also gained some essential skills and knowledge of a negotiator. Mumbai saw one of the biggest strikes in the world in the early eighties. About 2.50 lakh textile workers went on strike demanding higher wages and better service conditions. Arvind Shrouti took active part in the various activities of striking workers. A night in the police lock-up along with a large group of textile workers brought him face to face with stark realities of industrial life. Poverty and exploitation were no longer empty words.

What followed was an acute feeling of discomfort. It arose out of his inability to identify what needed to be done, the solution to the huge problem Arvind Shrouti had witnessed. Arvind gave up his job to revisit the ‘basics;’ he read Kant, Marx and Engels and studied Indian philosophy under the guidance of Tarktirth Laxmanshastri Joshi.

Arvind Shrouti decided to shift to Chinchwad which is a large industrial belt. It has presence of several MNCs and reputed Indian organisations. With his new insights, Arvind decided to experiment in transformation of industrial relations. He would work as advisor to unions [and to the managements of a few companies]. He named his enterprise ‘Option Positive.’

This was an era when several persons who had no knowledge and understanding of labour movement or issues in industrial relations had become self-styled labour leaders. Barring a few notable exceptions, the interest of such men was political mileage if not personal aggrandisement. The ‘internal’ leadership of workers in the industry had been suspicious of such leaders’ motives. To them the idea of a ‘consultant’ for their unions, who shuns power except for power of knowledge was a discovery.

At Thermax, the workers’ Union took long strides in developing independent stance on union-management relations. Thermax union became the first union to receive ISO 9000 certification. They would do conduct a ‘membership satisfaction survey’ modelled on employee satisfaction survey. Thermax Union had published their quality policy, and all its union committee members were well trained in Kaizen and other Japanese techniques. This union was led by Keshav Gholve, another prodigy of Arvind Shrouti, and Arvind’s influence on Thermax union was unmistakable.

After Bajaj Auto closed its Akurdi plant, the workers underwent untold suffering. They realised that in this world of uncertainty it was necessary to have a second source of income. The union decided to reinvent itself. They methodically worked with Arvind Shrouti to draft their vision statement. The union in conjunction with Arvind trained the women members of workers’ families so that they can earn additional income for their families. Good work is emulated and ITC Kamgar Sanghatana soon worked on its own vision statement. Trade unions creating and working towards a vision was a great step forward in the changing scenario of industrial relations.

Another breakthrough for Arvind’s approach to industrial relations came in the case of ASAL or Automotive Stampings & Assemblies Ltd. This Tata group company had huge accumulated losses. The workers had a history of violence in their earlier negotiations. When they decided to present their charter of demands, they approached Arvind Shrouti. He persuaded them to adopt a novel approach. They wrote a letter to the Company drafted by Arvind, mentioning that they will not present a charter of demands but intend to ‘earn’ their wage-increase through improved productivity. They further assured that they will shun violence completely and negotiate in earnest. The success of this unusual approach saw replication at the company’s other plants.

I am mentioning only a few settlements to convey the innovative and pathbreaking aspects of the wage agreements he negotiates. The settlement at that Bosch Chakan plant is based on a unique vision of skill upgradation, career advancement, transparent performance management, and for Bosch associates/workers it ensures their improved value and future employability, and the commitment to Industry 4.0 implementation.

The Wilo Mather & Platt agreement is unique – it provides for sharing wealth with workers – sharing gross profits!

In all negotiations Arvind Shrouti has focused on productivity improvement because he believes it is that factor which will help an organisation compete and survive. It will also mean relative stability of employment.

He is on record saying, “Permanency is the myth. The future investment and skill up-gradation will give job security in the future. Unions should focus on value than just wage increase. It is important to note that those who lost their job due to closure or otherwise are not getting a job of Rs. 15000/-.

In the future, individuals employed in various roles must engage in an ongoing process of learning and unlearning to stay relevant in the labour market. Essentially, an initiative-taking approach to learning and unlearning is crucial for all employees to thrive in the dynamic landscape of the future labour market.”

For the want of space, I have mentioned only a few instances of his innovative work. One wonders how could he do so much path breaking work?

He once told me that he made a conscious decision to come out of ‘prison’— a prison built of name, power, and money. True fulfilment and creativity lies in absolute freedom. This sense of freedom enables unconditional love and intelligence or wisdom — the qualities that may have played a role in facilitating some of the innovative and path-breaking settlements between unions and managements.

Arvind Shrouti is not a ‘union leader.’ He established Option Positive to train workers and help union officials adopt a positive strategy in negotiations. He was astoundingly successful. There were path breaking ways adopted by Bosch union, Thermax union and HR Managers from a few reputed organizations visited their officials to study how those changes could be brought about.

Arvind Shrouti believes that unions and managements quickly slide down to conflict situation without adequately exploring the collaboration. And that they look at each other with such jaundiced eyes that they do not listen to each other.

He believes that fairness and equality are the pillars of employment relationship. But he also understands that there are conflicting priorities before an organisation. Costs and equality conflict when you engage contract workers in similar jobs. Arvind has shown patience and pragmatism in getting contact workers better benefits though their wages may not exactly match those of permanent workers in similar jobs.

There were many union leaders who were self-proclaimed revolutionaries. The trouble with revolutionaries is that they believe right ends can be attained through wrong means. That includes violence.

Arvind Shrouti is a rebel. Osho says, ‘The rebel is a creator; his whole philosophy is that of creativity. And the ways of a rebel make him choose the path of non-violence and dialogue.’

It is thinkers and leaders like Arvind Shrouti who keep our hope for positive industrial relations alive.

Note: The feature picture depicts positive influence of a thinker like Arvind Shrouti

Vivek S Patwardhan

“What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” All matter copyrighted.