trade union leadership and management's role

Trade Union Leadership

The Management’s Role

- By Nithin Prasad

Labor laws and Industrial Legislation 2

Presentation Contents

Aim & Objectives Introduction on Trade Union, functions and leadership. The case study on TKM –

IR at TKM. The managements role. Binding the relations. Summarizing the TKM study.

The Cause for disturbance. Management role & modification. Suggestions & Conclusion.


Aim

To make a study on trade union leadership and the managements role, with a case study example of Toyota Kirloskar Motors (TKM).

Objectives

Literature study on Trade union leadership. Understand the Industrial Relations at the TKM. Analyze the role played by management towards Trade

union. Interpretations from the study & Conclusion.


Trade Unions Originating in Europe, trade unions became

popular in many countries during the Industrial Revolution. [employment bargaining power to the employer, workers mistreated and underpaid.]

Industry has two entities – Management and Workers. Unions - outside or external entities which actively participate in the industrial activities.

“Organization of workers that have banded together to achieve common goals”.


Trade Union Functions

Bargain & Negotiate labor contracts with employers. wages, work rules, complaint procedures, rules governing

hiring, firing and promotion of workers, benefits, workplace safety and policies.

Purpose of these organizations is "maintaining or improving the conditions of the employees and the employment". Provision of benefits to members: Collective bargaining: Industrial action: Political activity:


Trade Union Leadership

There are basically two types - Internal leadership in trade union. External leadership in trade union.

There has been a chaos in the industrial environment. Management support for internal leadership and Workers seek for external leadership.

Both has their own plus and minus. Now the industrial effectiveness rests in hands of

management which plays a role in managing the chaos. But the trouble is the disturbance and unrest that might

arise in the industrial environment.

The case study

Toyota Kirloskar Motors, Bidadi


IR at TKM Initially it had disturbed relations, workers often went on

strike for wage review, overtime, turnover etc.. Once 3 workers were suspended in 2006, after yearlong

investigation. On the grounds of violent behavior, disruption of work and

assault on supervisor. The initial negotiations failed, strike began and TKM

went for lockout. The case was presented before DLC V N Hittanagi. After 18 days, TKM lifted lockout on request of several employees who expressed willingness to work.

TKM did not face problems, but the sufferers were the employees.


The Management Role at TKMMeasures:

Union leadership development.

Family and Group orientation

Long term plans for employees and organization.

Emphasis on skills and training.

Collective responsibility on decision making.

Observations: The STRAINED relation

between union and management.

Fragmented and multi union.

High density in union activities.

Resolution is possible by either bipartite or tripartite settlement.


Binding the Relations.

TKM started orientation programs to bring together the employees, their family and management. Thus creating a bond.

Started periodical functions and sports programs to build relation between employees, union and management.

Even during crisis times, management supported employees to enhance skills through training instead of retrenchment.

Union and employees were provided with trips to other offices at different places to familiarize with the industrial culture.


Summarizing - TKM

Toyota used proactive management. It foreseen the threat from the strained

relationships. It sensed the urgent need to build good relation

between Management and Union. It designed and developed good programs. It adopted participative management.

The Cause For

Disturbance and Unrest.


The Perception differs


Management perceives union as

Stubborn. Reckless. Trustless. Rebellious. Decisive. Militants. Threat.

Union perceives management as

Non-supportive. Profit minded. Self centered. Exploitative. Treacherous.

This perseverance creates a psychological strain. The strain between the employer and union

relation leads to UNREST.


Management can re-think

Union function for- Better Wages Better Working

conditions Bonus Resist unsuitable

schemes Secure welfare Project Interest of

workers Social welfare Organizational growth

and stability

Employees join union for- Greater Bargaining Power Makes their voice heard -

Communication Minimize discrimination Security, Participation,

Belongingness & Protection Political beliefs Solidarity Tradition Pay, Health and safety

conditions


Interpretation from the study

Management can support reformist [business purpose and

friendly] kind of union development. Try to unionize employees under One Union in

Industry for wellbeing of industry and its people. Help and support Development of Internal

Leadership Have Paid Union Officials & Improve Financial

condition. Develop a Recognized Trade Union.


Conclusion

Unionized industrial environment helps management to address the issues relating to the employees.

At the same time management’s role to contain the union activities and preserve the healthy atmosphere in the industrial environment is also important.

A healthy bonding between the union and the management takes the industry to new heights.

Thus management needs to play a responsible role towards trade union leadership.

Thank You

trade union leadership and management's role

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