Industrial Relations

JT Engineering

• On-going problems between the union and management. Delicate situation

• Ashok’s relationship with the management encouraged the Union to leverage

this otherwise workable situation

Union vs Management • For immediate resolve, procure the said snacks and persuade the workmen
to resume their activities

• For a more permanent solution, create a menu with guidelines

• Better relations with the Union’s leader. Address the underlying issues and
parley between the two sides
Situation analysis

Factory situated
to out of city

Management Union demand

suspended of Rs 60,
some union company offer
leaders of Rs 25

Problems

Go slow tactics
by union, Negotiations
decrease in for 6 months
production

Union flexible,
company rigid
Problems & Causes
Problems Causes
No settlement Big difference
between offers of 2
after 6 months parties

Rigid stance of Go slow tactics used

by union to pressurize
the management management

Suspension of Decrease in
production
union leaders
Management’s decision justified
• Company was ready to offer the extra transportation costs for the
union workers
• 20 Km distance – time taken will not be that high
• Go slow tactics used by the union to pressurize management
• Initially un-realistic demands from unions
• Decrease in production --> Loss of revenue

• Couldn’t come to a decision in 6 months

Approach of workers
• Workers quoted a very high compensation initially
• Use of go-slow tactics to pressurize company
• Use to collective power to negotiate with the company
• Decreased production

• Ready to compromise
General Managers role
• Negotiate with the union leaders with a deadline
• Try to not let the situation escalate
• Compromise – at least for initial time period
• Prepare an alternative strategy – replacement of workers
Dharni Electric Supply Corporation: the case of overtime

• No set definition: the Section Officer asked to exercise discretion

Was the
• Approval of the appropriate supervisor
overtime policy
wrong? • Lack of delegation: unclear about authority and afraid of consequences

• Contextual

• Too much authority delegation can be counter-productive

Management
• Efficiency required by rule
• Balance required

• Job satisfaction linked to OCB

Associated
• OCB linked to job autonomy
consequences
• Can be detrimental to sense of achievement
Dharni Electric Supply Corporation: the case of overtime

• Effect of delegating authority: costs vs benefits

No rules
• Rigid structure in the past may prove to be a factor
simulation
• Trade-off between efficiency and job satisfaction

• Clear lines of authority

• Decentralised to appropriate Section Officer Over-time

policy
• Clear rules about maximum hours and compensation policy