Trade Union Leadership

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

 Industry 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.
 There has been a chaos in the industrial environment.
 Management support for internal leadership and
 Workers seek for external leadership.
 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,
Bidadi
IR at TKM
 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: Measures:
 The STRAINED relation  Union leadership
between union and development.
management.  Family and Group
orientation
 Fragmented and multi
union.  Long term plans for
employees and
 High density in union organization.
activities.  Emphasis on skills and
 Resolution is possible by training.
either bipartite or tripartite  Collective responsibility
settlement. 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
 Toyota 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 perceives
union as management as
 Stubborn.  Non-supportive.
 Reckless.  Profit minded.
 Trustless.  Self centered.
 Rebellious.  Exploitative.
 Decisive.  Treacherous.
 Militants.
 Threat.
This perseverance creates a psychological strain.
The strain between the employer and union relation
leads to UNREST.
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Management can re-think
 Union function for-  Employees join union for-
 Better Wages  Greater Bargaining Power
 Better Working  Makes their voice heard -
conditions Communication
 Bonus
 Minimize discrimination
 Resist unsuitable
 Security, Participation,
schemes
Belongingness & Protection
 Secure welfare
 Political beliefs
 Project Interest of
workers  Solidarity
 Social welfare  Tradition
 Organizational growth  Pay, Health and safety
and stability conditions
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Interpretation from the study
 Management 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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Conclusion
 Unionized industrial environment helps management to
address the issues relating to the employees.
 At the same time management’s 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