Group-4 Arun, Danish, Devendra, Digvijay, Khanjan

Precision Parts Limited (PPL)

1985: Established
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 Growth:
Period & Year In 1985 By one year Established 18-Members Growth Development

By 1 years

50-Members: Experiences 0 to 8 yrs. 22 of them for sales/Commercial and Marketing

274 Employees Township 6 Floor Supervisors 60 shop floor workers RO & SO

Trained with sophisticated machinery and advanced production practices and Japanese quality tools

By 2 years

RO for OEM SO for Retail PPL show cased Best Performing team in the Country

By 5 years

1100 Employees

Labour Relations at PPL:

Union formation (PPEU)
Training & development for Shop floor employees:
Lawyer for 3days training on worker leadership and rights

Employee Satisfaction Survey (ESS)

Employee life needs are changing & its the time to think of

other alternatives

PPEU registered under trade union act 1926 Regular interaction with management through meetings It came to be Known as model Union

Twenty years later:

March 2004: Grown to INR 820 crore company
Employees:
Managers Sales & Marketing Sub contractors & Others Total

Details
F/T Union

Nos.
1500 250 281 1000 3031

Management Changed Plant avg. age become 40

PPL had much influence on the prosperity of the locality

Early Conflict:
Union president faced a difficult time due to internal

conflicts
Disciplinary actions & VRS scheme Strike for the management decisions Post strike developments:
VRS for 15+yrsexperience employees Key union members left through VRS

How management lost credibility:

Surprising developments after settlement
Bumpy transition in management positions

Regularity of the interactions broken

Less involvement of CEO Disregard for emerging needs of Union Un ethical approach for the dealing with disciplinary

issues

How union lost its hold:

Surprising developments after settlement
Unanimity was lost

Using PPL as training ground and seeking for better

opportunities

Union requirements:
Union security
Improved wages, hours and benefits

Collective bargaining process

Recommendation for Management:

Build trust
Accept past mistakes Give plan to those mistakes

Understand the current demands and negotiate

Community and social activities to bring back old culture. Sensitization of management and supervisors towards labour

needs
Bring in third party if above attempts fail. UNDERSTAND THAT THE RELATIONSHIPS ARE AMONG

PEOPLE AND NOT INSITUTIONS..

THANK YOU