‘Managers: We are katti

with you’:
A narrative about union –
management conflict
at Precision Parts Group 7
Limited` Ankita Katiyar
Nimisha Verma
Gaurav Keswani
Nandeswar Pratik
Sudhanshi Parakh
Pooja
Introduction

• Established in 1985
• Core Values of the Group that included Valuing the customer and employee
as well as giving back to the society
• Economic reforms and untapped domestic market and Business model of
International auto majors in India
• Team was handpicked by the Group Chairman
• Chairman: The company will not just make profits, but invest in upgrading the
quality of life in the locality
Organization History
History
• Joint venture between a leading diversified Indian group and State
government in 1985
• Manufacture auto components
• Located in a less developed area
• Formed with a team of young highly qualified managers

HR Practices
• Joint venture between a leading diversified Indian group and State
government in 1985
• Manufacture auto components
• Located in a less developed area
• Formed with a team of young highly qualified managers
 Twenty years later:

• March 2004: Grown to INR 820 crore company

• Employees:
Details Nos.
F/T Union 1500
Managers 250
Sales & Marketing 281
Sub contractors & Others 1000
Total 3031

• Management Changed
• Plant avg. age become 40
• PPL had much influence on the prosperity of the locality
 Labour Relations at PPL
• Line managers convinced that strong union was necessary
• Encouraged internal leadership as opposed to external political relations
• Organised a three day training program on worker leadership and rights
• Group HR initiated a group wide employee satisfaction survey (ESS)
• PPL Employees Union (PPEU) registered under the Trade Unions Act 1926
• Management-union meeting will be held twice a year and union leadership
meet with HR department officials every month
• Came to be known as a model union
 Early Conflicts
• Charge sheet for claiming lunch allowance and subsidized lunch
• Inflexible negotiations during tough business conditions
o Reduced productivity
o 180 charge sheets, 4 suspensions for violating production standards
o one day strike
o Settlement was made by performance norms, VRS rule & improved salary
• Retirement of HR head and resignation of top HR personnel
• President was not assertive and General secretary was hot tempered
• Training changed to profit centered
• Showdown by the GS and show cause notices for 130 employees
 Recommendations

● Training center should not be made into a profit-center, hence shouldn’t be

chargeable

● Enter into a discussion:

I. Discuss what went wrong from both the sides

II. Understand the current demand and negotiate

III. Decide on an agreeable plan of action

● Let the Chairman address the employees. This will help them regaining faith in the
system and also make them feel important
Recommendations

● Clarify expectations: Make clear the expectation with respect to values

● Formalize the disciplinary action process
● Provide physical support: Send clear signal regarding what employees should
do and should not do
 Thank you

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