Is It Right for a CMD to Influence Wage Talks in the Company Yard Before Retirement?

Can the CMD of a PSU address a meeting in the company yard regarding the wage settlement of workers, despite there being a team of management handling wage negotiations? The CMD is telling the workers to accept what the company is offering. What should be done in this situation as he is retiring in December.

I don't find anything unlawful or a deviation from tradition in the address of the CMD to the workmen in an open meeting. The negotiation might have reached a deadlock because of the tough stand adopted by the workers' representatives. As such, the CMD, as the Chief Executive Officer of the PSU, might have thought it important to explain the position of the management directly to the workmen. To me, there is nothing wrong in such an approach since it is similar to the gate meeting convened by trade unions.

There is nothing wrong if CMD addresses an open meeting with workers. On the contrary, it is beneficial in strengthening industrial relations.

R R Kapoor
Vadodara

There is nothing wrong with the Chief Executive addressing employees directly. This helps in direct communication on contentious issues and will help clarify the management's stance regarding them. This was an OD intervention strategy implemented in the early 80s by us called 'Management Employee Communication Meeting' (MECOM) and had wonderful results. I also had the opportunity to attend a direct communication meeting of Russi Modi (Chairman TISCO as he then was) with TISCO employees while on a visit there in the late 80s.

There are no guidelines stating who can talk with the union, but it is always the representatives of management. It is a welcome step if the head of the institution finalizes the negotiation along with his team. By doing this, things would be settled more easily rather than lingering.

I totally agree with Mr. Umakanthan's opinion. As per the information I have, in 2003, the MD of SAIL, RSP, declared that the demands were accepted on the shop floor after lying pending for several months without reaching a conclusion.

I hold a slightly different opinion about the CMD meeting workers directly when a wage revision committee is already on the job. No doubt, it is not illegal or prohibited, but direct intervention by the highest authority spoils the show. If he wanted to speak to workers on the issue, he should have consulted the wage negotiation team, found out what is happening, and then spoken. Wage negotiation involves all tactics—what management can give and what workers want. Obviously, there will be a gulf, and bridging the gap is what is needed through tactics and strategies.