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Anonymous
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.
From India, Pune
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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.
From India, Salem
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There is nothing wrong if CMD address an open meeting with workers. On the contrary it is beneficial in strengthing industrial relations. R R Kapoor Vadodara
From India, Vadodara
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KK!HR
1656

There is nothing wrong in 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.
From India, Mumbai
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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.

From India, Mumbai
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nathrao
3251

I hold a slightly different opinion about 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 spoils the show. If at all 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.
From India, Pune
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Dear Friends,

In my viewpoint, this is a welcome step and a great opportunity for the CEO to connect with his lowest rung of employees. Besides connecting with the people, it will also dispel many doubts, misconceptions, and prejudices in their minds about the CEO and top management of the company (which normally persist in their minds).

There is nothing illegal, immoral, or against any principles or policies. I have seen Sh. Rusi Modi of TISCO and Sh. HP Nanda of Escorts addressing the workmen of the company on some occasions, and both were revered and respected by their employees.

I think every CEO should address directly at least once a year. Both of these were great people managers and strategists and always took inputs from their people, senior and junior.

Warm Regards,

Bharat Gera
HR Consultant
9322404765

From India, Thane
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Dear friends,

I agree with most of my counterparts. In our company, union leaders resorted to unfair labor practices with a selfish motto. The tripartite meeting also failed. The CMD of the company addressed the striking workmen and explained what had all happened on the negotiation table. The union leaders had not communicated the true facts to the workmen. When the issue was opened up in the meeting, in front of union leaders, within an hour, the settlement was reached, and the office bearers were thrown out of the Union. Since one year, the employees have been working peacefully, and industrial relations are very cordial.

GK.MANJUNATH
SPECIAL OFFICER

From United States, Cambridge
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KK!HR
1656

Kudos to Manjunath, his CMD, company and all others for taking such bold intervention step.
From India, Mumbai
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