Transforming Detractors into Protectors: A Success Story in a Greenfield Industry
As an HR/IR Intervention Specialist with over 43 years of experience, I\'ve had the privilege of working with various organizations, including labor-intensive companies and MNCs. One of my most notable experiences was with an Indo-Korean MNC, a vendor to a leading car manufacturer, located on the outskirts of Chennai.
The Challenge
The company was a greenfield industry, and my primary focus was recruitment. The young workforce, mostly drawn from neighboring villages, required guidance and training to adapt to the industrial environment. As the Head of HR and General Affairs, my priority was to ensure a peaceful and harmonious industrial relations environment.
The Strategy
The company\'s initial challenge was to train the young workforce, who were mostly inexperienced in the industry, and ensure they met the required standards. The training duration was two years, followed by a six-month probation period. Despite initial resistance to the lengthy training period, the trainees eventually adapted and started producing high-quality spares.
However, a group of senior workmen, who had completed their probation period, started presenting a joint memorandum to the MD, seeking to review and shorten the training duration. Sensing a potential union formation with external influence, the management proactively decided to promote internal leadership by nominating workmen representatives.
The Outcome
The workmen representatives were involved in discussions on framing certified standing orders and played a positive role in resolving issues. The company achieved a breakthrough in industrial relations, and the bilateral system introduced has stood the test of time. The company has been making rapid strides with expansion and enhanced production, while maintaining harmonious industrial relations.
Dealing with Problem Employees
A few workmen with exceptional skills but problematic behavior were identified as potential threats. Instead of terminating their services, the management designed a strategic plan to engage them as subcontractors, supplying certain spares to the company. This move not only decreased the company\'s contract manpower but also created a mutually beneficial relationship.
The Benefits
The company achieved several benefits, including:
1. Outsourcing as a business strategy: Non-core jobs were removed from the main plant, ensuring a more focused approach.
2. Securing a viable and cost-effective workforce: The company lessened its reliance on contract labor and ensured a stable workforce.
3. Restraining potential threats: The workmen-turned-subcontractors became stakeholders in the company\'s success, reducing the likelihood of industrial unrest.
Conclusion
The company\'s approach to industrial relations, focusing on internal leadership and bilateral negotiations, has yielded positive results. The workmen have benefited from generous salaries and benefits, while the company has achieved sustained growth and harmonious industrial relations. This win-win situation is a testament to the effectiveness of proactive HR strategies in a greenfield industry.
P Senthilkumar
As an HR/IR Intervention Specialist with over 43 years of experience, I\'ve had the privilege of working with various organizations, including labor-intensive companies and MNCs. One of my most notable experiences was with an Indo-Korean MNC, a vendor to a leading car manufacturer, located on the outskirts of Chennai.
The Challenge
The company was a greenfield industry, and my primary focus was recruitment. The young workforce, mostly drawn from neighboring villages, required guidance and training to adapt to the industrial environment. As the Head of HR and General Affairs, my priority was to ensure a peaceful and harmonious industrial relations environment.
The Strategy
The company\'s initial challenge was to train the young workforce, who were mostly inexperienced in the industry, and ensure they met the required standards. The training duration was two years, followed by a six-month probation period. Despite initial resistance to the lengthy training period, the trainees eventually adapted and started producing high-quality spares.
However, a group of senior workmen, who had completed their probation period, started presenting a joint memorandum to the MD, seeking to review and shorten the training duration. Sensing a potential union formation with external influence, the management proactively decided to promote internal leadership by nominating workmen representatives.
The Outcome
The workmen representatives were involved in discussions on framing certified standing orders and played a positive role in resolving issues. The company achieved a breakthrough in industrial relations, and the bilateral system introduced has stood the test of time. The company has been making rapid strides with expansion and enhanced production, while maintaining harmonious industrial relations.
Dealing with Problem Employees
A few workmen with exceptional skills but problematic behavior were identified as potential threats. Instead of terminating their services, the management designed a strategic plan to engage them as subcontractors, supplying certain spares to the company. This move not only decreased the company\'s contract manpower but also created a mutually beneficial relationship.
The Benefits
The company achieved several benefits, including:
1. Outsourcing as a business strategy: Non-core jobs were removed from the main plant, ensuring a more focused approach.
2. Securing a viable and cost-effective workforce: The company lessened its reliance on contract labor and ensured a stable workforce.
3. Restraining potential threats: The workmen-turned-subcontractors became stakeholders in the company\'s success, reducing the likelihood of industrial unrest.
Conclusion
The company\'s approach to industrial relations, focusing on internal leadership and bilateral negotiations, has yielded positive results. The workmen have benefited from generous salaries and benefits, while the company has achieved sustained growth and harmonious industrial relations. This win-win situation is a testament to the effectiveness of proactive HR strategies in a greenfield industry.
P Senthilkumar