HRM - Section F - Group 3 - Trade Unions in Manufacturing

8/2/2019 HRM - Section F - Group 3 - Trade Unions in Manufacturing

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Trade Unions inManufacturing Sector

Submitted to:Prof. Mousumi Padhi Section F Group 3


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GeneralMotors in the US


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The Pillion of General Motors in US: UAW

General Motors recognizes United Auto Workers (UAW) as its trade unionin the US

UAW is also the union representing the other two of the Detroit Big Three

Firms Ford and Chrysler

GM recognized UAW as a union in 1937

Currently, UAW covers around 50,000 employees of GM US

The collective bargaining of UAW is focused mainly on wage rates,

healthcare benefits and retirement benefits


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UAW: A Perceived Brake to the Growth of GM

UAW led many major strikes against GM in the last centuryo Flint Sit-Down Strike General Motors (19361937)

o General Motors Tool and Diemakers' Strike (1939)

o General Motors' Strike (1946)



In the latest strike against GM, more than 73,000 employees of GM

participated

GM and the other automotive companies blamed UAW for the US

automotive industry crisis of 2008-09 (which eventually led to bankruptcy

of GM and Chrysler)


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UAW: A Leverage for Non-US Competitors

None of the Japanese carmakers have a union in the US

Several studies have shown that the wages and benefits received by

workers at Toyota are almost similar to that of GM (despite Toyota not

having any union)

Experts have also suggested that industry-level unionization led to

complacency amongst US carmakers, which made them vulnerable against

foreign players


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UAW: The Troubles of a Troublemaker

UAW has always been an ally and beneficiary of Democratic Party. This putsthem at odds with the Republican Party.

Republican Party is a strong supporter of right-to-work or mandatory open

shops. Right-to-work law weakens the unions. (Currently, 23 out of the 50

US states subscribe to the right-to-work law.)

The membership of UAW have been decreasing consistently. Its active

members have decreased from 1,500 thousand in 1979 to less than 400

thousand in 2010.

Decline in the membership of UAW coincides with the declining

unionization in private companies in the US. Currently, only 7% employeesof the private companies are part of unions in the US.


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UAW: What Causes the Troubles

Modern HR Practices - With modern HR practices focusing on increasedemployee involvement in decision making, employees themselves dont

feel the need of unions

Globalization and Outsourcing Globalization and expansion of

manufacturing facilities in multiple countries decreases bargaining power

of unions

Decreasing Competence of US Manufacturing Industry and Rise in Service

Industry


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Tata Steel


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Tata Workers Union (TWU)

One of the earliest trade unions in India Established in 1920, same year as the AITUC

Formerly known as Labour Association

Ran successfully for two years

Union launched a strike for securing certain basic demands but failed

Management withdrew the recognition

Many leaders came to Jamshedpur to break the dead lock

Finally after the efforts of Mahatma Gandhi, recognition was

restored & Netaji was made the President

However, trade union rivalry also ran high during this period and the

management exploited it to the full


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Union Characteristics

TWU

UnitaristApproach

ClosedShop

EnterpriseLevel


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Prominent Leadership

Prof. Abdul Bari changed the name of the Labour Association to Tata

Workers' Union

Survived all political onslaughts

Launched struggle for a revision of wage structure, introduction ofincentive bonus scheme

Agreement was signed in 1948 which secured higher wages ,better

working conditions equal representation to ensure better understanding

and settlement of disputes by negotiations


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Era of Constructive Trade Union Movement

Ushered by Michael John & V.G. Gopal

Supervisory and technical staff was brought under the same roof

Famous Agreement of 1956 which has been hailed as the 'magna carta' of

the working class Secured higher wages, more houses, improved medical facilities for the

workers

Introduction of a streamlined grievance procedure, which aimed at

redressing individual grievances in the shortest possible time at the

lowest possible level


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BHEL


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BHEL Tiruchi Unit

About BHEL

BHEL has six units Tiruchi, Bangalore, Hyderabad, Bhopal, Jhansi and Haridwar

Tiruchi unit manufactures high pressure boilers for power plants

Unit made up of two plants

o

High pressure Boiler Planto Seamless Steel Tube Plant

Both plants further consist of Boiler Shop, Machine Shop, Valve Shop

Union Characteristics

Open shop Unitarist

Enterprise level


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Trade Union Structure Corporate Level

Collective bargaining Tool Joint Committee The JC comprises of

o Management Representatives

o Unit Level Representatives

o

Central Trade Union Federation Central Trade Union One seat in JC for every three unit level seats

Unit Level Representatives in JC

Percentage of Votes Polled No of Seats in Joint Committee

25-35 1

36-55 2

Above 55 3

Sole Representation 3 (Two for smaller units)


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Worker Participation in Management Works Committee

Works Committee

The major issues taken up by the Works Committee are as follows:

Conditions of work such as ventilation, lighting, temperature and sanitation

Amenities like drinking water, canteens, dining rooms, creches, rest rooms, medical

and health services.

Educational and recreational activities such as libraries, reading rooms, cinema

shows, sports, games, picnics, community welfare and celebrations

Safety and accident prevention, occupational diseases and protective equipment.

Adjustment ofholidays - festival and National

Administration of funds - welfare and fine Promotion of savings and thrift

Implementation and review of decisions taken in the meetings of Works Committee


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Worker Participation in Management Plant Council

Plant Council

The major functions of the Plant Council are:

To review production targets for the plant as a whole keeping in tune with the

overall target set by the corporation

To resolve inter-council problems that are referred to the council

To provide suitable guidelines for reducing absenteeism

To periodically review cost reduction schemes, including wastage reduction, quality

improvement, target achievement for production, inventory reduction, etc

To develop information systems regarding site failures, mechanical defects,

rejection rates and overall performance of the plant


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Durgapur Steel Plant

Main Trade Unions

CITU affiliated Hindustan Steel Employees Union (HSEU)

INTTUC affiliated Hindustan Steel Workers Union (HSWU)

AITUC affiliated DSP Staff Union (DSPSU)

BMS-backed DSP Staff Sangha (DSPSS)

INTTUC affiliated DSP Mazdoor Union (DSPMU)


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System Characteristics

Main Trade Unions

Overall subset of Sail.

Involves formation of a Joint Bargaining Council

Encompasses a Pluralist Approach

Representation of stakeholders at the JBC is determined by elections

All trade unions participate in the elections

Securing greater than 50% votes grants sole bargaining power

Currently, CITU affiliated HSEU is the largest union

CITU unions have historically been the strongest at DSP


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Center of Indian Trade Unions

Formed in 1970 after CPI split into two

They follow a marxist/radical approach

Decision center in CITU national conference, held every three years

Outgoing secretariat members=Elected delegates

Conference elects new secretariat and new council

In 2009, CITU halted production at DSP in support ofLaltuSengupta


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Indian national Trinamool trade union congress

Affiliated to the All India Trinamool Congress

Individually follows a unitarist approach

Presence in multiple manufacturing units in West Bengal

Second largest presence at the Durgapur Steel Plant


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SIMILARITIES

Primary focus on wage rates, health benefits and working conditions

Joint council elected for collective bargaining negotiations

Political affiliations

New evolving trend ofpartnership oriented attitude towards

management

General tendency nowadays towards lesser trade union membership

commitment among employees


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DISSIMILARITIES

Different shop types- Open and agency shop for GM, closed shop for TATA

Steel, open shop for BHEL

Different approaches- radical approach for SAIL, pluralist approach for GM,

unitarist approach for TATA Steel and BHEL

Trade unionism is more of company level in Asian countries while they are

industry/sector level towards the west

Decentralized collective agreements are more prominently seen in Asian

context


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HRM - Section F - Group 3 - Trade Unions in Manufacturing

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