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By C.S. Venkata Ratnam
Table 3. Training in India (and abroad), 1990-91-1994-95
| Plant | 1990-91 | 1991-92 | 1992-93 | 1993-94 | 1994-95 |
| Bilail | 19 400
(67) |
20 454
(51) |
22 578
(61) |
23 130
(126) |
24 294
(33) |
| Bokaro | 20 984
(47) |
21 943
(56) |
23 993
(74) |
22496
(74) |
21 573
(44) |
| Durgapur | 9 488
(99) |
16 467
(74) |
13 302
(175) |
14 398
(115) |
11 909
(77) |
| Rourkela | 18 413
(23) |
19 886
(99) |
25 733
(64) |
16 517
(91) |
19 824
(54) |
| Alloy Steels | 4 230
(6) |
5 256
(4) |
5 454
(32) |
7 489
(13) |
4 997
(9) |
| Salem | 1 147
(8) |
1 444
(20) |
2 106
(1) |
1 169
(26) |
1 296
(73) |
| IISCL | 7 271
(14) |
7 979
(16) |
7 478
(31) |
5 589
(9) |
4 862
(6) |
| Others | 4 854
(18) |
12 835
(40) |
11 968
(41) |
12 798
(224) |
15510
(51) |
| VISL | 3 148
(2) |
2 817
(2) |
2 916
(25) |
5 024
(13) |
4 480
(-) |
| Maharashtra | 511
(1) |
730
(1) |
8 741
(1) |
892
(3) |
1 356
(-) |
| Total SAIL | 89 392
(288) |
109 811
(363) |
124 269
(595) |
109 700
(694) |
109 863
(347) |
| TISCO | 12 812
(39) |
14 008
(120) |
13 563
(147) |
19 380
(140) |
22 632
(36) |
| RINL | 4 179
(20) |
4 069
(56) |
6 057
(15) |
7 951
(19) |
11 549
(36) |
The latter two companies have progressively been training a greater proportion of their employees than has SAIL. In respect of overseas training, the public sector plants -- both SAIL and RINL -- are more liberal than the private sector (TISCO). SAIL entered into a memorandum of understanding with its ministry that provided for training targets as part of the overall performance criteria (table 4). The criteria for fulfillment of the objective should not, however, be numbers trained and the number of mandays spent on training. Rather, it should anticipate future growth of steel output and labour productivity. The evaluation of training programmes should be geared to activity-based outcomes rather than the results/achievements arising from of the activities undertaken. It is not easy to find out whether and to what extent the additional investment of time and other resources has led to actual skills development or the realization of the intended objectives of training.
Table 4. Training in SAIL as per MOU with the Government, 1992-93
| Area of training | Employees to be trained | Employees trained | Achievement (%) |
| Training of new entrants | 5 186 | 8 386 | 162 |
| Modernization & expansion | 2 869 | 4 606 | 161 |
| Skill & efficiency training | 19 787 | 33 852 | 171 |
| Multi-skill & retraining | 5 320 | 8 771 | 165 |
| Safety & pollution control | 7 294 | 13 934 | 191 |
| Thrust areas | 20 696 | 25 970 | 125 |
| Special areas | 10 023 | 20 883 | 208 |
| Total | 71 175 | 116 402 | 164 |
Preparations for ISO certification gave a new thrust to systematizing the training and development efforts. A loan from the World Bank enabled SAIL to engage consultants from British Steel to assess, strengthen and audit its training and development efforts. British Steel's own success in restructuring during the 1980s boosted its image and it was seen in steel industry management circles in India as a worthwhile model to draw lessons from. The regular exposure of public sector managers, including steel industry managers, to ODA-sponsored training in British universities may also have contributed to the desire to know more about the strategies, policies and programmes of British Steel.
The following are among the major lessons from British Steel that the public sector steel plants in India are trying to implement. A systematic approach is not yet an integral part of all training activity at SAIL. However, a recent audit by British Steel consultants expressed satisfaction with unit training having been firmly established which, in turn, resulted in noticeable improvements in unit performance. Efforts are being made to increase the depth and breadth of unit training and ensure adequate resources to undertake improved levels of activities. Certain quantitative targets (e.g. numbers trained, number of man-days earmarked for training, etc.) that were part of the performance contract (MOU) between the management of SAIL and the Ministry of Steel and Mines also gave a boost to training at all levels. The inadequacy of physical targets in terms of the indicators mentioned above is recognized and efforts are being made more sharply to define the training objectives. To this end, the example of British Steel is being used. Under the multiskilling programme in British Steel, all tasks/skills in a particular craft are identified and training modules are prepared for each of them. Electrical and mechanical craftsmen each have an individual set of skills to learn, plus skills that are common to both disciplines. Multitasking is necessary to promote flexibility and make the best use of human resources. In accordance with the company's new philosophy of achieving the transition from "one person one skill" to "all persons all skills (in relevant crafts)", it is proposed that the training objective in terms of enhancing skills development and employability of its employees could be spelled out along the following lines: currently, every employee knows and performs one of the several skills/tasks in each craft/trade; the objective is to make all employees familiar with all skills/tasks in each craft/trade and perform at least two or three of them over the next three years.
Workforce redundancy is dealt with exclusively through: non-filling of vacancies when existing employees retire; voluntary separations; and retraining and redeployment to meet skill shortages and to man new, expanded and/or modernized facilities.
The 1994 collective agreement considered workforce adjustment and flexibility necessary in the context of modernization and the changing requirements of the industry. The agreement provides that workers can be retrained and redeployed consistent with their skill, dignity, and earnings.
The NJCS decides its own terms of reference. From time to time its scope has been widened and presently covers:
* Negotiations for wage agreement and its implementation.
* Steps to improve production, productivity, and quality.
* Measures for the reduction of costs and wastages, etc.
* Review of welfare amenities and facilities.
* Any other aspect relating to the steel industry and its employees which the NJCS feels appropriate to bring to the attention of the Government.
The NJCS membership comprises 21 union leaders -- three each from four national centres of trade unions: INTUC, AITUC, CITU and HMS. One each from recognized unions of the steel plants of Bhilai, Durgapur, Rourkela, Bokaro, TISCO, IISCO, Alloy Steels, Salem and VISL -- and 12 management staff -- managing directors of the steel plants of Bhilai, Rourkela, Durgapur, Bokaro, and IISCO, Burnpur; executive directors of Alloy Steels Plant, Salem Steel Plant and VISL; vice-president (HRM), TISCO; vice-chairman and Director (Finance) of SAIL. The director (Personnel) of SAIL is the Convenor-member of the Committee.
Now over 25 years old, NJCS has several unique features:
* The Committee has no Chairman, but a Convenor is appointed by the Committee itself.
* Decisions are taken by consensus.
* No strike so far on account of wage negotiations - before, during or after negotiations since 1969 to date.
* The expenditure of the Committee is borne by the member steel plants and workers' representatives in an agreed proportion.
* It is a permanent bipartite committee whose scope extends beyond wage negotiations to implementation aspects and other matters of concern to the industry and its employees.
The 1994 collective agreement recognized the need to bring people to centre stage in improving performance, with or without changes in other resources. To this end, the unions endorsed in the main text of the collective agreement the following actions initiated by management:
* Rationalization of work to ensure the most efficient way of functioning.
* Optimal utilization of human resources.
* Improving work practices for enhancing employee contribution.
* Involving employees in achieving efficiency in operation.
* Improving and upgrading the skills, competency and attitude of employees to perform the job better.
* Humanizing work.
Management and unions agreed to commit themselves to work together to attain higher levels of production, productivity and profitability. The 1994 agreement provided for joint efforts to be made continuously in the following areas:
* Efficient handling of raw materials and reducing wastage.
* Improving yields and reducing operation costs.
* Procuring materials at economic prices.
* Reducing energy consumption.
* Improving quality in all operations.
* Improving house-keeping.
* Necessary improvements in working conditions and health and safety of workers.
* Continuously adopting better working practices.
* Reducing unauthorized absenteeism.
* Improving customer service and delivery.
* Impoving effective use of all resources including human resources.
* Further optimizing capacity utilization in each steel plant.
Collective bargaining in the Indian steel industry covers only the integrated steel plants. Its distinctive contributions include the following:
* The steel agreements set the norm for neutralization of cost of living at Rs.1.30 per point in 1970, which subsequently came to be known as the Industrial Dearness Allowance (IDA).
* The 1970 agreement provided that contract labour shall not be employed on jobs of permanent and perennial nature in the steel industry even before the Contract Labour (Regulation & Abolition) Act came into force. Subsequently, however, some unions have gone to court and SAIL has had to abolish contract labour in some areas.
* In 1989 a separate agreement was entered into between the management and five unions at IISCO's Burnpur plant. It provided for, inter alia, a voluntary retirement scheme for contract labour also. This is the only instance to date where provision was made through collective agreement for offering such a voluntary scheme for contract labour.
* In an earlier collective agreement the management of SAIL agreed to offer employment to the spouse or one of the dependants of any employee who died while at work. Subsequently, the management negotiated a revision of this clause and incorporated a provision that enables the dependant of the deceased employee to choose between employment on compassionate grounds and a regular monthly income equivalent to the salary last drawn by the deceased employee until the latter's notional date of retirement. This enables the company to adjust the workforce without filling vacancies; improve the age-skill balance; and avoid the need to make compromises in recruitment. The cost of paying a monthly salary is substantially met from the savings in the interest burden on the lump sum payment payable immediately upon the death of the employee, but which can now be paid only on the date of notional retirement. The deceased employee's dependant also benefits because he/she is entitled to the monthly payment and to find work elsewhere.
