COLLECTIVE BARGAINING

PROJECT

FROM THE MANAGEMENT SIDE

BY : GROUP 4
KUHELI GUPTA
MOUSUMI SARKAR
MADHUMITA GHATAK
PIYALI NANDI
SANDEEP MOITRA
SUKRITI SRIVASTAVA
SOMDUTTA CHAKARVARTY
To,

The Manger ( P & A)

HWIPL. Kharagpur Works

Through

The Manager (Workers)

HWIPL. Kharagpur Works

SUB – DEMAND OF WAGE ENHANCEMENT

Dear Sir,

You are aware that the seventh wages agreement will expire on 31 st Mar, 2009. A fresh
agreement shall be made for the next three years. Hence, we demand that the gross
enchancement in total wages should be made, considering the sky – up market price of essential
commodities. Rs 3000/- per month to each worker.

Additional Demand are mentioned below:

1. Mediclaim of Rs. 1,50,000/- per worker is to be implemented.

2. House Rent is to be increased from 8% to 15%.

3. In addition, of the present national and festival holidays “Makar Sankranti” is to be declared as
a holiday.

4. Incentive shall be implemented.

5. Casual Leave shall be increased from 8 to 10 and Medical leave shall increase from 12 to 16.

6. Short Casual leave duration in the agreement is mentioned two Hrs. minimum. But we require
one hour minimum span. We also require that the races period from 12.00Hrs. to 13.00Hrs be
added to SCL in the first half. In the same manner it shall be added for the second half.

7. The recruitment of the workers either in casual or in permanent may be absorbed from the
HWIPL Workmen Department.

We hope that the management will consider the same and the settlement shall be made through
negotiation at the earliest in peace.
 COUNTER CHARTER OF DEMAND

1. Production Incentive scheme to be introduced. This would mean that the output
generated per day should be at least Rs.6,00,000 per day. Per employee revenue would be Rs.
750 /day.

2. The quality of the production has gone down and henceforth unless the quality of the product
does not increase the incentives shall not be given to the workers.

3. The Workers should work as a team and not as an individual. The Incentive provided will also
be group performance based so that group giving the best result and the quality shall be given
better incentives from the other groups.

4. Absenteeism will not be entertained by the management and must go down or else action will
be taken.

5. The employees who are not performing shall take VRS.

6. There will not be any increase in the bonus the extra will be given as the incentive based on
the performance of the group.

7. No extra Mediclaim facility will be provided. And no extra leave is acceptable.

 STRATEGIES TAKEN BY MANAGEMENT
A B C

Skilled Rate as Present Rate as Present Rate as Present Demand Difference

labour per wages per wages per wages by the between
Min paid Min paid Min paid union demand and
wages wages wages pay
act act act
100 107 100 110 100 108 115 per 115-108=7
day
Unskilled Rate as Present Rate as Rate as Rate as Present Demand difference
labour per wages per per Min per wages by the between
Min paid Min wages Min paid union demand and
wages wages act wages pay
act act act
80 83 80 87 80 85 90 90-85=5

In the above chart Company A and B are our Competitors and Company C is our
Company.

Financial impact as per demand:

Demand for the hike of Rs7 per day by the skilled labour.

Financial impact as per demand Rs7 per day multiplied by 30days gives us Rs210 per month and
Rs 2520 per annum.

Total skilled labour is 342 at present multiplied by per annum per labour would be Rs8,61,840.

Similarly,

Demand for the hike of Rs 5 per day by the unskilled labour.

Financial impact as per demand Rs5 per day multiplied by 30 gives us Rs150 per month and
Rs1800 per annum.

Total unskilled labour is 520 at present multiplied by per annum per labour is Rs 9,36,000
Negotiable amount:

Keeping in mind and considering the comparative statement we hope that by this hike of Rs2
per day for both skilled and unskilled labour we hope that we can convince the union with the
amount. and also without any further loss of working day.

Financial impact that the company has to bear after negotiation:

Hike of Rs2 that has been proposed by the management.

For the skilled labour hike of Rs2 per day multiplied by 30 days gives us Rs60 per month and
Rs720 per annum. Total skilled labour is 342 at present is multiplied by per annum per labour
would be Rs2,46,240.

Similarly, for the unskilled labour also hike of Rs2 has been proposed by the management.

Total unskilled labour is 520 at present multiplied by per annum per labour is Rs3,74,400.

Strategy II

The demand that were set forth by the Union on which the decision the managerial body took
were:-

1] A] The Basic amount will be increased to Rs. 800/- per month which will amount to the rise in
total CTC of Rs. 2980/-pm.

B] As per the rules of West Bengal House Rent Allowance Act HRA can only be increased to
point value making it from present 9% to 9.5%.

C] No exgratia only increase in bonus up to 16%. In compliance of payment of Bonus Act, 1965,
minimum of 10% and if funds permit/allocable surplus exceed the amount of minimum bonus
then maximum of 20%.

D] No Mediclaim provision would be provided as because the company is all ready following
the ESI Act’s standardized provision. More over Rs. 125/- pm is already included in the CTC
rise of Rs. 2980/-. Reimbursement of medical expenses incurred for treatment of (skilled
semiskilled and unskilled) employees, payment would be made within 14 working days from the
date of submission of proper bills and papers. In-case of skilled employees (A, B Grade)
reimbursement would be provided after every quarter and in-case of semiskilled and unskilled
employees (C, D, E Grade) yearly. But the amount should not exceed Rs. 1500/- or such lower
amount actually paid by the workmen towards payment of premium.

2] After critically assessing the per unit contribution of the group and the quality quantity
produced per unit of production there will be an increase of 2%of basic wage of the individuals
of that group (condition applied). [Duties, Obligation, Discipline, Performance, Job
Responsibility, etc]

3] No additional leave is acceptable as the company is already providing 15 days holiday per
annum including the national and festival holidays. The unions shall inform the management
about their choice of national and festival holidays latest by 2nd week of December every year.
The management reserves the right to amend/alter the said list intimating the unions in case the
relevant criteria are not fulfilled. Extra Medical leave would be provided only if proper
document is submitted which is authorized by the ESI Act governed doctors.

4] The existing rate would continue since in respect of per point variance of CPI (1960=100) will
continue to remain Rs2/- per point. All other factors viz mode of calculation, period and payment
terms will continue to remain same as agreed in earlier settlements and being also followed
presently.