Industrial Relations

2007-2008

Corporate Human Resources

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The Industrial Shift . . .
• Global Economic Crisis resulting in Slowdown in the Indian Economy

• Possibility of minimal profit or even incurring loss

• Plants not operating at maximum capacity

• Raw material and inventory cost going up

• Implications of downsizing of flexible workforce

• Availability of capable and low cost outsourced service within the country

• Temporary workforce starting to exceed permanent workforce in terms of ratio

• Ever increased expectations due to good company performance in the last 2 years

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Status of Blue Collar across location
Unit Permanent Temporary Trainees Contractors

Pune - CVBU  6559      

Pune - PCBU  1878      

Jamshedpur  3827      

Lucknow  590      

Uttarakhand 51       

Small Car 1       

Dharwad
       

Mumbai 28       

Total

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 Important Events

Policy on Payment of Bonus Jamshedpur

Elections of Union Mumbai

Wage Agreement Pune CVBU
Elections Lucknow
Wage Revision Mumbai

Wage Agreement Mumbai

Wage Agreement Pune, PCBU
Wage Agreement Jamshedpur
Wage Agreement Telcon

Wage Agreement Tata Daewoo. Korea

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 Temporary Employees

Challenges Deliverables

• Re-look at the
• Increase in ‘Temporary
‘Temporary Permanent Ratio’
Permanent Ratio’
• Continue efforts towards
• Expectation of temporary
reduction temporary employee
employees for permanent
requirement via strategic
employment
outsourcing and engaging
Established companies
• The Government and Judiciary bias
on annual rate contract
towards the cause of temporary
employees • Continue the practice of
employing permanent
• External agencies trying to
employees from the waiting list
unite the temps
of temporary e employees to
exhibit germane interest

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 Temporary Employees

Challenges Deliverables

• Quality & Safety issues due to
large number of temporary
Employees
• Intensification of efforts
towards increase in
training ( Safety & Quality)
• Explore possibilities of engaging
established company for
annual rate contract

• Subsidiaries including Channel

• Increase in Socio-political
partners to be encouraged to
interference possible recruit permanent employees
from our temporary pool as
and when vacancies are available

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 Contract Labour
Challenges
• Litigation at various forums
between Management and
contract employees
•Large No of contract labour on
the premises of the factories
• Increase in unqualified workforce
and in case of abolition
In future, unqualified labour
may be
required to be absorbed
Deliverables
• Contract labour to be restricted
only for non perennial activities
• As far as possible contractor should
be working for multiple organizations
and should be asked to rotate the
workforce at regular interval
Basic amenities like canteen etc
should be provided
Convert contract labour jobs into
outsourcing Wherever possible
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 Contract Labour

Challenges Deliverables

• Government intervention in • Create Uniform IT enabled systems

contract employment.
Current Labour Laws not
favorable.
• No proper set-up to monitor the
contract labour
• Non availability of facility to
contract labour
for better monitoring of contract
labour activities
• Ensure qualified contract labour
force is engaged
• Health, Safety and Welfare issues
to be addressed

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Trainees

Challenges Deliverables

Disparity in the practices of Common Policy already defined

hiring trainees across locations across all locations for uniformity

• Full term • Strict Adherence to

• Job Trainee apprenticeship Act 1961
• Diploma Trainee
• Commercial Trainee • Guideline with respect to
Age
Qualification
Compensation
Module

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Permanent Workforce

Challenges Deliverables

Opposition to outsourcing

High expectations in Bonus & Mindset Training - HR for IR

Wages

Exposure to practical examples

Resistance to lose comfort zones

Improve communication channels

Mix in the age groups of workforce

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Permanent Workforce

Challenges Deliverables

Opposition to outsourcing

High expectations in Bonus & Mindset Training - HR for IR

Wages

Exposure to practical examples

Resistance to lose comfort zones

Improve communication channels

Mix in the age groups of workforce

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