LABOUR LAWS VS MANAGEMENT ATTITUDES

Dear Sirs :

These days , there is a lot of talk about simplification of various labour laws

There is no doubt that Labour Law Reforms are overdue

But , for MakeInIndia initiative to succeed , it is even more important for the Employers / Managers , to change their attitude

This badly needed  NEW  ATTITUDE  has to be :

"  If employees are made partners in times of prosperity , they will stand by the Management in times of adversity "

    And this will happen only when the employees are involved in decision-making process

I invite you to read my 170+ " Letters to L&T Employees " at ,

www.hemenparekh.in

In the meantime , from my today's blog ( below ) , you may appreciate what kind of managerial attitudes , made L&T , a great company

with regards,

hemen  parekh

(M) 0-98,67,55,08,08

Mumbai

hcp@RecruitGuru.com

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L&T   Story  -  2

Earlier this month , General Motors announced its intention to close down its Halol ( Gujarat ) plant

That would render some 1100 workers , " jobless "

News reports say , Shri Amitabh Kant , Secretary - DIPP , called GM manager to discuss this issue

We will never know , what exactly Shri Kant told the GM manager

It is possible that he said :

"  Just because you are shifting your operations to Talegaon , you cannot throw 1100 workers on the footpath !

GM is employing some  220,000  workers across the globe

What is so difficult for you to absorb these 1100 into your other factories , worldwide ? Who will believe you if you say , you cannot  ?

You must protect their jobs "

Neither will we know what GM manager assured Shri Kant

But that reminds me when L&T decided to stop manufacture of Diamond Core Drills and Water Well Drills , at its Madh ( Mumbai ) factory , in 1979

At that time , I was posted at L&T Powai Works as General Manager and responsible for all negotiations / settlements with the Labour Union

When they heard about Management decision , C S Nakhate and S V Naik ( Union leaders ) came to me to protest against Management decision to retrench 300 odd workers

They said :

"  Who will believe that L&T cannot absorb 300 workers when it has a work-force of some 7500 workers in Mumbai ? You must protect their jobs "

I agreed not to retrench a single worker , on condition that each and every worker ,  would accept ANY other job offered in Powai - after re-skilling , if necessary

Eventually , all workers rendered " work-less " were re-deployed in various departments of L&T ( - including , at some out-station factories ) , without making any one " job-less "  !

I believe that a much more flexible labour law on retrenchment of workers , when business is losing market , is the only assurance that employers would not hesitate to employ a large number of workers when needed

But it is equally - or even much more - important that Indian managers / employers / business owners , learn to treat workers as " Family Members " of a joint family

A younger brother who loses his job , is not thrown out of the family !

He is supported by other working / earning members

If Indian employers inculcate such an attitude , workers won't need protection of labour laws

At the same time , there is a crying need to reduce litigation under " Industrial Disputes Act " , by removing from its purview , dismissals / terminations of non-performing employees .

This act should be limited to addressing only " Collective Disputes " and non-performance related cases should be covered by simplified Model Standing Orders

In my own small company , I have personal experience of a group of my employees accepting a 20 % salary-cut , in order to protect the job of a colleague , till business revived !

Employees must be made to understand that such a temporary sacrifice will enable a Company to ride out the bad times , when the only way out is to reduce the manpower costs

They must be told :

" If you are not ready to accept a temporary sacrifice , Company will become

irreversibly sick and eventually , everyone will lose their jobs ! "

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hemen  parekh

22  Aug  2015

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