‘Managers: We are katti with you’:

A narrative about union – management conflict

at Precision Parts Limited`

Decision Maker: The CEO of Precision (PPL) is the main decision maker in the case. While
the HR Head and other senior managers have played important roles in events development,
the CEO calls it quits. He is responsible for the company's strategic direction and resolution
of conflicts.

Dilemma: The CEO's dilemma is a complex bundle of problems involving multiple aspects:

Handling Union Relations: Whether to keep up good relations with the union, or rather to
respond with a more aggressive approach when perceived insubordination occurs.

Dealing with Workforce Morale: On the one hand to take disciplinary actions towards union
leaders and workers versus keeping employees motivated and productive at all times.

Managing Business Pressures: To meet business challenges including increased competition

and operational efficiency, while ensuring fair labor practices.

Addressing Trainee Employment Issues: On how to employ new trainees in the face of
opposition from the union.

A reasoned solution to the dilemma

 Re-examine disciplinary actions:

Immediate Review: The sacking of the General Secretary (GS) and the penalties
handed out to 130 staff should also be reappraised. Perhaps the General Secretary
could be reinstated with a final warning, and sentences for those disciplined might be
commuted. To do this would show a willingness to try to restore harmony and could
cool the passion.
Joint Investigation: A joint committee should be set up by the two sides to make a
thorough investigation into the cause of the incident and to make transparent and
reasonable judgements. Consider inviting a third party to mediate between the two, so
that everyone will be satisfied that justice has been done.

 Reinforce communication channels:

Restore Periodic Meetings: Restart the bi-annual management-union meetings, as well
as monthly HR-union interactions. And make sure that these are structured meetings
with the focus on finding ways for management and staff to work together.
Enhance Transparency: Regularly share with the union business conditions as they
take shape and involve them in problem solving discussions. This might earn
employees’ trust and enable an air of cooperation to develop.

 Deal with Training Scheme Recruitment Disputes:

 Flexible hiring: Compromise on a middle course to test products. Whether an
apprentice can be taken on as a worker, if performance is good over one year’s trial
period. Instead of immediately having signed long-term contracts this initiative might
serve the purpose of maintaining management’s flexibility needs while also de-
stressing the union's job security worries.

 Association of Unions with Training Programs: Let union representatives join in both
the design and implementation of the training program. This will produce a project
which is in line with the goals of the company and suits the workers.
 Foster a positive working environment:
Promote Inclusiveness: Begin programs to reintroduce trust and comradeship between
workers and management. This might include collective activities, forums or open-top
problem-solving meetings.
Recognition and Incentive Programs: Introduce systems to recognize workers'
contributions and give rewards for great performances. This will increase their morale
and productivity.

 Strategic human resource and management building:

Training for Managers: Give managers courses in how to find a peaceful solution to
disputes, in labor laws and the art of getting their point across to workers. In this way
they may deal more tactfully with future incidents.
Leadership Continuity Plan: Establish a leadership continuity plan in order to
guarantee smooth succession and minimal damage during the process of leadership
change.

Implementation Plan:

 Short-Term Actions (0-3 Months):

-Initiate discussions with the union to review disciplinary practices.
-Routine communication methods are being re-established and meetings arranged.
-Negotiate the terms of the trainees' accommodations and probationary period with
the union.
-Organize team-context and being initiative events.

 Medium-Term Actions (3-6 Months):

-With the participation of the union, make joint investigations into this incident.
-Then expand the Awards and benefits fair throughout the trade training staff.
-Design a training program for junior managers specifically targeting conflict
resolution skills and communication abilities.

 Long-Term Action Program

-Feedback on performance of new trainee housing contracts and modify when
necessary.
-Maintain a positive corporate culture through continuous team-building activities to
ensure morale stays high.

Through these steps, the CEO can resolve immediate problems while laying the
groundwork for greater stability and partnership in the future.