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Managers: We are

katti with youJAYKUMAR TRIVEDI

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Precision Parts Limited - Factsheet

JVbetween a leadingdiversified Indian groupand State governmentin 1985

Manufactureauto

components Located in a less

developed area

Formed with a team ofyoung highly qualifiedmanagers

BriefHistory

Phased recruitmen

Training Schoolfor employees

Townshipfor emplo

Highest pay and hiproductivity

Exemplary safety, qpractices

Bi-annual meetingsheads and bi-annu

Collective agreemyears

HR

Highlights

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Factors for formation & functioningof trade union

Employer Factors

To encourage internal leadershipinstead of external political relations

Single point of contact to push for

new standards & policies

Regularize the revision of HR policies

Employee Factors

Unity to negotiate with employers

Better pay and working conditions

Better benefitsinsurance, holidays, uleave etc.

Union security

Union ShopEmployees must join the and pay dues

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Recent Events: Changing Dynamic

2004Charge sheet for

claiming lunch allowanceand subsidized lunch

Inflexible negotiationsduring tough businessconditions

Reduced productivity

180 charge sheets, 4suspensions

1 day strike

Improved performancenorms, VRS rule & improvedsalary

2006Retirement of HR

Head and resignation oftop HR personnel

President not assertive,General secretary washot tempered

Training changed to profcenter

Showdown by the GS anshow cause notices for130 employees

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Effect of Unionization

Got a channel to bargain (E.g.Liberal VRS Scheme, Salary Hike)

Employees

Strong union means strongculture at workplace

Line Managers

Got a channel to communicatevalues and expectation

Helped push VRS/performancenorms

Top Management

HR

Average age hasincreased

Gross decrease inproductivity after fsalary negotiations

Union opposing th

new recruitmentprocess

Three year contrac

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How should have HR handled it?

Discipline without punishment

Issue oral reminder

Issue a formal writtencopya PRIVATE one

Give a day offDECISION MAKINGLEAVE

Suspension

Communicating Ter

Plan the interview

Get to the point: Makemployee comfortab

Describe the situation

Listen

Review the severanc

Identify the next step

Do not invade his/h

Occurrence

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Recommendation

Training should not be chargeable Bond to prevent attrition

Have a discussion: Make the chairman give a talk to theemployees

This will bring back faith in the system

Employees will feel important Need to work on following Cs: Clarity, Contribute, Confidence

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Recommendation contd.

Managers need to send right signal to set the culture

Clarify expectation: Make clear the expectation with respect tovalues

Walk the talk: Lead by example. Employees take the signals fromthe boss action

Provide physical support: Send clear signal regarding whatemployees should do and should not do

Formalize the disciplinary action process