RRRReport on Labour Strike in Wipro 2013

Report on strikes in Jhansi facility

September, 2013

Report on Labour Strike in Wipro 2013

Report to investigate the cause of the strikes in Wipro Ltd., Jhansi

Prepared for Chief Executive Officer, Mr. Lalwani Managing Director, Mr. Suarabh Jain Chief Security Office, Col. Jagmonhan

Prepared by Mr. Rahul Khanna, Personnel Manager Wipro Ltd.

September, 2013

Report on Labour Strike in Wipro 2013

Acknowledgement
I would like to express my gratitude to Mr. Shyam Bansal, Ms. Sushma Ahluwalia and Wipro Pvt. Ltd. for all the necessary information and support that they provided for this report. Furthermore I would also like to acknowledge with much appreciation the crucial role of the management of Wipro, who gave the permission to use all the required internal documents and funds to facilitate the completion of this report.

Report on Labour Strike in Wipro 2013

Contents
Preface.................................................................................................... 4 Executive Summary ............................................................................... 5 1. Introduction to the Jhansi plant .......................................................... 6 2. Present Scenario ................................................................................. 7 3. Findings .............................................................................................. 9 4. Analysis ............................................................................................ 10 5. Recommendations ............................................................................ 11 Annexure .............................................................................................. 12 1) Survey of workers......................................................................... 12 References ............................................................................................ 13

Report on Labour Strike in Wipro 2013

Preface

This study and report presents data and analyses in relation to the ongoing strike at the Wipro plant in Jhansi district. It gives the assessment of the present scenario in the plant and possible feasible recommendations to overcome the strike scenario.

This report will be used by the senior management at Wipro Ltd. as an integral part of the overall goal to create harmonious relations between its employees and avoid any such future occurrence of strike.

Report on Labour Strike in Wipro 2013

Executive Summary
This report provides an analysis and evaluation of the ongoing strikes at the production facility of Wipro Pvt. Ltd. in Ranchi. Methods of analysis include study of current and past wages of the workers with a comparison with the industry average. Survey of the workers and management for the above has also been conducted. Results of data analyzed show that wages of the workers is below industry average. Basic amenities like sanitation and drinking water are poor. The report is being presented to the management for necessary action for the situation. Recommendations discussed include: Improving the monthly wages of the workers to bring at par with industry Improving the standard of basic facilities like drinking water, shelter, sanitation.

The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include : Survey conducted was not extensive due to paucity of time. 5

Report on Labour Strike in Wipro 2013

1. Introduction to the Jhansi plant

This facility of Wipro Ltd. in Jhansi manufactures its soaps and other beauty products and it was set up the October, 2009. It is one of the largest manufacturing plant in India.

Figure : Facility at Jhansi plant

It employees 900 workers which have been created in the last four years of its set up. The growth in consumption of Wipros products in Uttar Pradesh has fuelled the growth of this factory and the factory is now being used to produce more things. Machines, materials, capital and labor have fueled the factories output, tangible things. 6

Report on Labour Strike in Wipro 2013

2. Present Scenario

These 600 employees including permanent and contract workers of Wipro Limited belong to the nearby villages in and around Jhansi.

The workers have launched an indefinite sit-down strike since 10th July, 2013. On July 10, 2013, 200 workers sat down on the job and stopped production to protest the dismissal of three fellow employees. a) Workers demands : These three employees had been demanding an increase in the subsidiary benefits like raise in HRA, LTA, canteen facilities. Welfare measures such as improvement in the working conditions like: Sanitary conditions for women Improvement in water supply and canteen facilities

About 430 employees joined the agitation on by 03rd August, 2013. Several rounds of talks that have followed between the personnel manager of the plant, security incharge and the workers to find an amicable settlement but all efforts have failed. 7

Report on Labour Strike in Wipro 2013

The strike has led to injury of two workers and one member of the management already. Mr. Shetty (43) who has been serving the industry for nearly 18 years and Mr. Rajesh Hassan were workers representative. Mr. Chauhan was an executive member who was recently recruited at the plant as the executive floor incharge. All were involved in the agitation that led to the injury.

Report on Labour Strike in Wipro 2013

3. Findings
Below are my findings after assessing the situation: 1) From the month of August, the strike has intensified and is negatively influencing workers at other facilities in the country. Clearly, the workers issues of poverty-wages, horrendous working conditions, and unaffordable health care policies are widely and deeply felt. Moreover, they are specific and can be addressed directly with management.

2) In small numbers and at specific sites, the strikers are winning. Most employees have not seen their issues addressed, and they will be encouraged by their peers to organize at their work site. 3) If a worker takes a day off a salary cut of upto Rs 500 is being imposed at the location as part of their policy. This is also agitating the workers. 4) The production at the plant has increased by 30 percent in the last 1 year with a small increase in the workforce, but no increase in their salary. 5) The strikes have led to a loss of $ 600 million to the company in the last 3 months. 9

Report on Labour Strike in Wipro 2013

4. Analysis
The workers in the facility are willing to go on an indefinite strike if their demands are not looked into seriously by the management. The facility at Ranchi is one of the most important one in the country where 40 percent of the production is done. The management needs to address the demands of the workers as soon as possible to avoid further damages to the image and the sales of the company. Also on humanitarian grounds the demands should be considered.

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Report on Labour Strike in Wipro 2013

5. Recommendations
Todays factories are about people, ideas, and co-creation (intangible), not land, labour, and capital (tangible). Yet intangibles are not easily measured or quantifiable, so they are not given the resources they deserve by many organizations. The reasons are many but it boils down to not seeing what you dont understand.

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Report on Labour Strike in Wipro 2013

Annexure
1) Survey of workers Questions asked were: 1) What is your present monthly wage? 2) What was your wage 1 year ago? 3) What are the facilities provided to you by the company? 4) How much salary cut for a day off? 5) Have the prices gone up in the last 1 year? 6) Are you able to manage with this wage? 7) Are you given any medical aid when required? 8) How is the food quality? 9) How are the sanitation facilities for women? 10) Is the drinking water clean?

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Report on Labour Strike in Wipro 2013

References
1) The Hindu, 21st June : Workers strike in Wipro 2) Times of India, 23rd July : Second strike in Wipro 3) World wide web 4) Internal documents of Wipro Pvt. Ltd.

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