Sustaining Economic Growth & Development – Creating an Equitable & Strife Free Workplace

Industrial progress plays an important role in the growth of the Indian economy. Some of the key factors necessary for sustaining economic growth and development through industries are – Adequate Infrastructure, Access to Capital, Trade Liberalization, Competent Personnel and Amicable Industrial Relations.

Given with workplace disputes over the past few years, on the rise, the need for amicable industrial relations has achieved critical importance.

Industrial relations deals with the relationship between workers of an organization and its management. As workers form the largest section of the employed workforce, and represent a significant part of the social strata, industrial relations has a far reaching impact on the well being of workers, societies and nations. In the context of the manufacturing industry, the key stakeholders typically involved in industrial relations are – Primary: Government, Employers, Workers and Trade Unions, Secondary: Industry Bodies and Society. The role of trade unions has evolved since their inception centuries ago. Today, trade unions work towards the Economic, Social and Intellectual progress of workers.

The CII’s 5^th IR & HR Summit, brought together thought leaders from the public and private sector, civil society, trade unions and the government to share their opinion sand debate on three crucial perspectives which underpin the theme of ‘Sustaining Economic Growth & Development: Creating an Equitable & Strife free Workplace’.

The debate themes were:

• Do equitable and just practices at the workplace make Unions redundant?
• Archaic and inflexible labour laws create strife at work place
• Bad practices of management or opportunistic practices of union leaders – Who is more responsible for criminalization of trade unions?

The discussions led to the conclusion that amicable industrial relations is a collective responsibility of all the stakeholders, and that it is in their best interests too.

The desired role to be played by the primary stakeholders and the gap existing today can be understood by evaluating the Intent, Framework and Execution of these stakeholders.

This analysis leads to the following immediate steps to be taken by the stakeholders:

• Organizations to mete out respectable treatment to their workers, and ensure meeting of all the hygiene factors, through a positive organization culture
• Workers not to misuse the labour laws meant to protect them, and trade union leaders to act as moderators between the employer and workers
• Government to create strong deterrents for mala fide acts by either stakeholder, and review labour and other related laws to promote fair treatment

Additionally, a round-table can be convened comprising industry bodies, trade unions and the government to discuss and deliberate on the key emergent issues. While these steps will address the concern and control further disputes, the need in the long run is to identify a cure. One of the approaches to achieve the same is to equate the factors of engagement for white and blue collared employees with the management. Today, the basis of engagement of blue collared employees with the management is Protection. It is important to transition this to Performance, which is the basis of engagement of white collared employees with the management. In other words, the purpose and function of industrial relations and human relations should be aligned, not distinct. This equity is the desired objective of all organizations employing workers, as workers will continue to be better connected, mobile and more aspirational and soon be no distinct from white collared employees.

Click here to download the Report on Sustaining Economic Growth & Development – Creating an Equitable & Strife Free Workplace

Saying Yes to Affirmative Action the India Inc Way

Affirmative Action for the Scheduled Castes and Scheduled Tribes communities is defined as a voluntary commitment by Indian companies to help the Government and civil society in the national endeavour to ensure equal opportunity to members of the Scheduled Castes and Scheduled Tribes communities.

The code of conduct adopted by CII members states that the industry would discourage conscious discrimination in any form, give preference in selection of business partner to socially disadvantaged sections, upgrade skills and provide continuous training to the employees belonging to the socially disadvantaged sections of society. The companies will also partner with educational institutions to support and aid students from the Scheduled Castes and Scheduled Tribes.

Corporate India is thinking out of the box to fulfill the government’s affirmative action agenda of ensuring inclusive growth through sustainable livelihoods for the weaker sections of society. Read about the two PPP strategies that could change the discourse on affirmative action between government and industry!

CII’s agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible

The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors: S Gopalakrishnan, President CII

India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’; this needs to be improved: S Gopalakrishnan, President CII &  Co-Founder and Executive Co-Chairman, Infosys Limited

CII Members’ Interactive Meet with Mr S Gopalakrishnan, President CII took place here today. Addressing the meet, Mr Gopalakrishnan, informed the audience that CII theme for 2013-14 is “Accelerating Economic Growth through Innovation, Transformation, Inclusion and Governance”. He said, “Our agenda is to accelerate economic (GDP) growth to 6 – 6.5 percent this year and to take it to 8.5 – 9 percent as quickly as possible. “ He further added, “The drivers for growth would be reforms and governance, inclusive growth and affirmative action, innovation, entrepreneurship and growth of MSMEs and transformation of sectors.” On the front of reforms and governance, he highlighted that the World Bank Report indicates that India ranks 132nd among 185 countries on the parameter of ‘ease of doing business’. This needs to be improved. Further, FDI should be encouraged wherever applicable in a phased manner. With reference to GST implementation, he also informed that it has been a top priority of CII to play an active role in creating the right atmosphere. He also highlighted that CII has been active on facilitating distribution reforms in power sector, model APMC Act, leveraging technology for strengthening MSMEs, the Companies Bill, Land Acquisition Bill, etc.

Mr S Gopalakrishnan also briefed the members on CII’s efforts towards the inclusive growth agenda. He informed that CII has already engaged with Dalit Chamber of Commerce and also been active on skill building and employment of marginalized sectors. On the front of innovation and entrepreneurship, CII efforts are on to popularize the job portal http://www.thefairjob.com linking industry with job seekers from marginalized sections. In transformation of sectors, President CII informed that this year CII would be starting a three year project called Project Village Budha which would be targeted to implement the idea of Kaizens (small improvements) in a village environment. Further, ‘Visionary Leaders for Manufacturing Programme’ of CII would help 100 top MSMEs to improve on their current size and status. Mr Gopalakrishnan, concluded his remarks by saying, “We will also continue our focus on global engagement and sustainability.”

Proposal to allow ‘Put’ & ‘Call’ Options in Shareholders’ agreements would boost foreign investment into the country

CII welcomes the decision taken by the Government to allow incorporation of ‘call’ and ‘put’ options in shareholders’ agreement. The proposal to remove restrictions on using options in shareholders’ pact for M&A and PE transactions would encourage inflow of foreign investment into the country. This was one of the key impediments to FDI flow into the infrastructure sector.

The clearance from the Law Ministry would pave the way for an amendment to be moved to the Securities Contracts (Regulation) Act, against the proposal initially moved by SEBI. Industry has been seeking an amendment to SCRA to allow put and call options not only to offer an opportunity to investors, especially foreign investors, to hedge their risks but also put to rest any doubts regarding the use of options. Overseas investors and lenders may be willing to consider short to medium term lock in periods of 3 to 5 years if put option from the resident promoters are allowed.