Personnel & Industrial Relations
Tony John
Hr Executive
+2 Others

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Dear All, Our settlement with the Union is due w.e.f. 01.04.2009.Please provide me some guidelines for the settlement.The Union has submitted their COD which is very exorbitant.I am been given the task for drafting the MOD.The earlier HRpersons have left so I have nobody to refer to.Please once again assist me. Regards, Kumar Manoj
From India, Mumbai
Dear Manoj, The first and foremost thing that you have to do is calculate the cost of the demands and compare the % rise with the current cost to the company. If possible go back to the previous two settlements and do some research work on them and find out the % rise in the previous cases. Take each item one by one and calculate it's cost to the company. For the union, sky is the limit, so don't get worried about the exorbitant nature of demands given by them. There is always a scope for negotiation and union also knows that they won't be getting what they are asking for. That's why they always aim for higher. After preparing the cost, sit with the higher management and get their approval as to how much they are ready to part with for each demand. Remember unless the higher management knows the cost of COD they won't be interested to talk to anybody. Your next step would be to prepare a management proposal of each demand along with a covering letter, getting it signed by the competent authority, and pass it to the union. Remember while preparing the cost of COD always try to keep your BASIC and DA cost as low as possible. Whatever increase should be given that the management is considering should be in the items such as HRA, TA, MA, and other salary components that donot have any indirect cost to the company. Once the negotiation starts, then your real skill and knowledgee of Labour laws will be tested. Be very careful when your negotiate with the union. Donot underestimate them. Infact they are really very good with this things. Don't make unnecessary comments which you are not so sure of. Your pursuation skills will be tested to the limit. Always support your answers with strong logical and theoritical backup. At this point I really envy you. I really love Union management settlements. I have done two settlements and waiting for my third which is due in 1.4.2010. Please don't hesitate to ask in case you need some suggestion during the process of negotion. I would be more then happy to help you. All the best Bye Regards
From India, New Delhi
Dear Manoj, Mr. Awvik has provided you valid information. I wants to add some more points which will be useful for your negotiation part. You should also get the details of the similar companies and the business part of your company ie., what is the business you have done in the last agreement period and the present. While working out the cost to the company part you should convert everything in to financials ie., even the union want one more extra leave / holiday needs to be converted in to rupees ( one day pay). You should also have a thourough net working which in turn helps you to understand the clear expectations of the employees. You should also note that the staff, executives & managers will be looking at the benefits which you are going to extend to the workmen / unionized people as they will be getting some thing extra what you have extended to the workers that also need to be looked in to. Never ever you should withdraw from your side from the negotiation table this should happen from the other side. You should act the opposite side people's weaknesses hence try to identify their weaknesses and act. During the agreement time workmen will act funny / indiscipline like slow down etc., act very tough on these activities, these will become very strong points for your negotiations. Prepare minutes of meeting and obtain signatatures of the President and general secretary of the union. Form negotiation teams and ensure that these team members are only present in the meeting ie., only a maximum of 5 people from the union and 5 from the management. Ensure that the second line like if you have a works manager, then the prdouction manager and other managers are only part of team so that you have an advantage of the works manager attends and accepts a marginal amount at the final meeting. Involve all line supervisors in controlling the situation and giving their inputs. Influence the top leaders on day to day basis. Obtain all legal / statutory coverage ie., like injunction orders etc( not to gather / slogan /prevent the loyal employees from attending the work ) in advance which may be useful over a period of time if required / may increase pressure on the union. Any pending actions on indisciplinery activities needs to be revived so that it will be a rider for the union. Take the labour department ie., ACL / DCL in to confidance, keep the alternative manpower ready as the union may provoke the contract / part time labour also in their support. Thanks and regards - kameswarao
From India, Hyderabad
Dear Manoj. One more thing, always get the total negotiable amount ready beforehand. I mean the total package that the management is ready to forego eg. 500/- 1000/- 1500/- and then distribute it among the various salary components as earlier suggested. Once you get the figure from the management then you can negotiate according to your favourability. Regards
From India, New Delhi
Dear Friend, Many thanks for sharing such valuable information which I received from you at the right time.I will let you know all details regarding the settlement so that I can secure your guidance.
From India, Mumbai
kumarmanoj04 <link updated to site home> ( Search On Cite | Search On Google ) Awvik <link updated to site home> & kraos_1954 <link updated to site home> have provided almost all the aspects of the union settlement, its great to have both of them on board. I hand only once an opportunity to work on it (Asstst My Manager) so I could not conceive the entire thing. All the best be very-very careful as everything will convert/translate into money. Negotiate locigally....all the best of luck once again. exserg
From India, New Delhi
Hello Kumar, Awvik and Kamesrao, Thanks for the wonderful post on Union settlement. I am a novice in the Union issues. I just have one doubt, what’s 'COD' and 'MOD'.
From India, Kochi
Dear Mr. John - Very Good Morning, Thanks for your kind words. The COD is the Charter of Demands submitted by the union and the MOD - actually it is the expectations of the management it should be counter demands / expectations submitted to the union by the management on receipt of the document from the union. Normally these will be like productivity, timelines, discipline, reduction of equipment down time, cycle time, less loitoring, wasting of time, availability at work spot, ownership, reduction in absenteeism, safety related etc., which are in turn increases the productivity, Zero accident, statutory compliance related matters. Thanks and regards - kameswarao
From India, Hyderabad
really wounderful information. If somebody can add on to this, it will be more useful Please send all your experience
From India, Madras
Excellent narration of handling LTS. Appreciable to the contributors. sarisri
From India, Mumbai
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