Unfortunately, I do not have a copy of MBA report
hcp
From: GLADYS VAZ [mailto:gladys.vaz88@hotmail.
Sent: Saturday, September 28, 2019 9:20 AM
To: Hemen Parekh
Subject: Re: GETTING FEEDBACK FROM WORKERS
It was an excellent and bold move at that time
It would be interesting for us to discuss the results of this survey, vis-a-vis the current business environment
Regards
Gladys
From: Hemen Parekh <hcp@recruitguru.com>
Sent: Monday, September 23, 2019 11:05 AM
To: sns@lntecc.com <sns@lntecc.com>
Cc: amn@larsentoubro.com <amn@larsentoubro.com>
Subject: GETTING FEEDBACK FROM WORKERS
Dear SNS,
My son Nirmit ( who manages 3P Consultants ), had a recent opportunity to meet the MD of ELGI ( compressor company ) in Coimbatore
What Nirmit gathered from that MD :
# ELGI has neither a labour union nor had any strike / go slow action over past 40 years
# ELGI has not negotiated / signed any 3/4 year agreement with labour during this period
# ELGI has no fixed formula for grant of “ annual increments “ for its workmen
# ELGI’s unwritten policy is that the amount of annual increment should be such that it neutralizes the increase in the “ cost of living “, and enables the workers to maintain their “ Standard of Living “, at their current level
# At the end of the year, some astute ELGI workers spread out in the local market and compile prices of various commodities ( FMCG of regular household consumption ) , simple , daily use domestic appliances, house rentals, travel tickets , petrol prices etc
Based on this data, workers tell the ELGI management, what should be the amounts of annual wage increments – which gets accepted ( I suppose, after some discussions )
# Current average earnings of ELGI workers, is approx. Rs 6 lakh per year
This reminded me of an “Employee Survey “ ( using CONJOINT ANALYSIS ), that we got conducted at Powai in 1983, [ when I was GM - Powai ], in order to learn which of the following elements of a 4 year “ Wage Settlement “ are important to the workers ( and their priorities in the whole scheme of wage structure )[ https://latterstolntemployee.
Ø Basic Salary
Ø DA ( formula for linkage with Basic )
Ø HRA
Ø LTA
Ø Various other allowances
Ø Medical Reimbursement
Ø Various other reimbursements
Ø Retirement Benefits… etc
What was being attempted was to find out :
# Do workers attach different “ weightages “ to different elements of wage structure ?
# Do these “ weightages “ differ significantly among different “ Age Groups / Family sizes / Education Levels / Skill levels “ etc ?
# Which groups ( if any ) want a trade-off between “ current earnings “ and “ Retirement Benefits “ ?
In this connection, you might find interesting , my following letter to S V Naik ( President – L&T unit of BKS union ):
-------------------------
16 Mar 1983
To:
Dear Mr. Naik,
THE NECTAR-AND THE POISON!
Sub: EMPLOYEE SURVEY
Almost a year ago, we had hired M/s. Marketing Business Associates to conduct an employee survey at Powai and City Offices. With the cooperation of the Union, some 2500 Unionised employees were interviewed by 10/12 investigators, over a period of 6 months.
I was happy that, once the objectives of the survey were explained, not only you and your colleagues joined in framing the questionnaire, you, in turn, explained the objectives to the employees and urged them to cooperate with the investigators by being open and providing frank and honest answers.
This cooperation on the part of the Union and the employees, in a totally voluntary manner, is what makes the survey unique.
It is quite possible that other companies might have conducted surveys for an equally large number of employees.
What makes our survey unique is,
· the coverage of subjects
· the depth of probing
· the treatment (conjoint analysis)
To the best of my knowledge, no Indian company has ever attempted ('dared' would be more appropriate!) to ask its unionised employees:-
'Now that we are about to begin negotiations on the Charter of Demands, what kind of a compensation-package would you like to receive?'
But we did.
And if the Management dared to think about this, you were even more courageous in agreeing to the proposal!
I am sure, both of us did not quite know what to expect when the findings were submitted. It was like agreeing to participate in the 'Dadhimanthan' - the churning of the Ocean; it could throw-up anything disregarding your 'likes' and 'dislikes'.
Except this 'Dadhimanthan' differed from the ancient, in one vital respect:
The Management and the Union did not represent the 'Devas' and the 'Asuras' - and should the survey throw-up any poison, we do not have a third-party. Lord Shiva to hold it in his throat!
You have the MBA report with you for some time now - and I am sure you are as much surprised with some of the findings as I am. There are also a few which are more or less as expected.
If you or your colleagues need any assistance in interpreting the findings, please let me know. I can arrange for the MBA team to make a presentation.
But do not expect MBA to answer a question like
"Well, now you have found out what employees want but what are they going to get?"
The survey-findings can only help the Union and the Management to find an answer to this question during the negotiations on the Charter of Demands.
And I have repeatedly stressed that any attempt to find an answer, must have, for its basis, the acceptance of the principle of
'Post-performance Reward'
If we wish to conclude the negotiations in any reasonable length of time, it is essential that we have an acceptance of this principle at the earliest.
Once you indicate your willingness to negotiate on the basis of this principle, we can jointly start work on evolving a suitable formula and mechanism.
I earnestly request you to give this your serious thought. As far as I am concerned, I do not see any other way employees anywhere in the world can expect to improve their standard-of-living (and not mere neutralisation of cost of living) without first and continuously raising the productivity of their organisation.
With regards,
H.C. PAREKH
=============================
With regards,
H c Parekh
16 Mar 1983
To:
Dear Mr.
THE NECTAR-AND THE POISON!
Sub: EMPLOYEE SURVEY
Almost a year ago, we had hired M/s. Marketing Business Associates to conduct an employee survey at Powai and City Offices. With the cooperation of the Union, some 2500 Unionised employees were interviewed by 10/12 investigators, over a period of 6 months.
I was happy that, once the objectives of the survey were explained, not only you and your colleagues joined in framing the questionnaire, you, in turn, explained the objectives to the employees and urged them to cooperate with the investigators by being open and providing frank and honest answers.
This cooperation on the part of the Union and the employees, in a totally voluntary manner, is what makes the survey unique.
It is quite possible that other companies might have conducted surveys for an equally large number of employees.
What makes our survey unique is,
· the coverage of subjects
· the depth of probing
· the treatment (conjoint analysis)
To the best of my knowledge, no Indian company has ever attempted ('dared' would be more appropriate!) to ask its unionised employees:-
'Now that we are about to begin negotiations on the Charter of Demands, what kind of a compensation-package would you like to receive?'
But we did.
And if the Management dared to think about this, you were even more courageous in agreeing to the proposal!
I am sure, both of us did not quite know what to expect when the findings were submitted. It was like agreeing to participate in the 'Dadhimanthan' - the churning of the Ocean; it could throw-up anything disregarding your 'likes' and 'dislikes'.
Except this 'Dadhimanthan' differed from the ancient, in one vital respect:
The Management and the Union did not represent the 'Devas' and the 'Asuras' - and should the survey throw-up any poison, we do not have a third-party. Lord Shiva to hold it in his throat!
You have the MBA report with you for sometime now - and I am sure you are as much surprised with some of the findings as I am. There are also a few which are more or less as expected.
If you or your colleagues need any assistance in interpreting the findings, please let me know. I can arrange for the MBA team to make a presentation.
But do not expect MBA to answer a question like
"Well, now you have found out what employees want but what are they going to get?"
The survey-findings can only help the Union and the Management to find an answer to this question during the negotiations on the Charter of Demands.
And I have repeatedly stressed that any attempt to find an answer, must have, for its basis, the acceptance of the principle of
'Post-performance Reward'
If we wish to conclude the negotiations in any reasonable length of time, it is essential that we have an acceptance of this principle at the earliest.
Once you indicate your willingness to negotiate on the basis of this principle, we can jointly start work on evolving a suitable formula and mechanism.
I earnestly request you to give this your serious thought. As far as I am concerned, I do not see any other way employees anywhere in the world can expect to improve their standard-of-living (and not mere neutralisation of cost of living) without first and continuously raising the productivity of their organisation.
With regards,
H.C. PAREKH
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