Wednesday, October 12, 2011

Dust Strikes Trust

Three strikes at three major manufacturing companies - Maruti Suzuki, Bosch and Coal India are worrisome.

The strike at Maruti Suzuki's Manesar plant is spreading into ancillary units and is becoming a major threat not only for the company but also for the entire NCR industrial belt. The bone of contention has moved from worker's demand for a separate union to management's demand that workers sign a good conduct bond and now again to worker's demand that the contactual labours be taken back into fold.

In case of Bosch the strike by the workers at Bangalore plant that started couple of days back turned ugly yesterday when executives were prevented from entering the factory premises by MEA (Mico Employees Association). The bone of contention in this issue is that workers are opposing the management's decision to outsource certain anicillary functions. The workers also accused the management of breaking its promise not to outsource any such activity.

A one day strike by the Coal India workers around the country resulting a huge loss on October 10th is another problem brewing hot. Thebone of contention in this case is the incentive payout. The workers are demanding more incentive and state that it is much less compared to the dividend doled-out to the shareholders. The workers have threatened that if the issue is not resolved soon then this strike would come back.

On closer introspection the common thread in all these conflicts appears to be  severe lack of trust between the employees and the management. Every other leader preaches the need of building a culture of trust. But so many times such terms remain as mere esoteric concepts rather than practice. Many even brush-off such issues as very academic concept.  Looking at all these three cases, I find severe trust-deficit at the heart of all such disputes, in addition to everything else. Trust is fundamental to engagement and one of the building blocks. In its absence no structure shall sustain. The responsibility of building the trust is mutual but the first onus lies on the employer.

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