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Trade Union Leadership

The Managements Role

- By Nithin Prasad

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.
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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.
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Trade Unions

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


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.
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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:

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Trade Union Leadership

There are basically two types

Internal leadership in trade union. External leadership in trade union. Management support for internal leadership and Workers seek for external leadership.

There has been a chaos in the industrial environment.

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.
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The case study

Toyota Kirloskar Motors,


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.
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The Management Role at TKM

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.

Measures: Union leadership development. Family and Group orientation Long term plans for employees and organization. Emphasis on skills and training. Collective responsibility on decision making.

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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.
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Summarizing - TKM

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.

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The Cause For Disturbance and Unrest.

The Perception differs

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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 and Industrial Legislation to UNREST. Labor laws


Management can re-think

Employees join union forUnion function for Better Wages Greater Bargaining Power Better Working Makes their voice heard conditions Communication Bonus Minimize discrimination Resist unsuitable schemes Security, Participation, Secure welfare Belongingness & Protection Project Interest of Political beliefs workers Solidarity Social welfare Tradition Organizational growth Pay, Health and safety and stability conditions
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Interpretation from the study


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.
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Unionized industrial environment helps management to address the issues relating to the employees. At the same time managements 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.

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Thank You