Below is an Example of a letter demanding information from the Management?

Transcription

1 NOTE: The below given examples are not exclusive how to write a charter of demand. This can be used as a sample though. But different countries might have different formats depending on the cultural background and other various factors. Below is an Example of a letter demanding information from the Management? To, 15th Sept, 2007 General Manager (HR) XYZ Ltd (Whom you want to address) Sub: Information Demand Dear Sir, (Presenting a background) The country s economy is in the process of far reaching changes. Liberalization of Trade and Globalization has brought around fundamental changes in the business environment. The need for improving the competitive position, not only on national level but also on Global level is of paramount importance. The union recognizes these

2 changes and the imperatives for the improvement in the productivity with total quality in order to survive and grow. XYZ Employees Union is the only organization representing workmen in this Company. We believe that we will evolve and grow along with this Company. We have always contributed & shall contribute our mite to the aims & objectives of the Company. We are fully aware that our growth aspirations are inseparably joined with this organization. You must appreciate that without employee s cooperation and commitment, such good performance was not possible and they are also one of the major contributors in this achievement. We as a Union decided to adopt a new approach & believe in constructive approach to various psychosocial informal processes, which are at work. Gossip can be turned into introspection, fantasy can be turned into innovation, cribbing can be turned into corrective feed back, envy can be turned into healthy competition, interference can be turned into role restructuring and so on. We believe that cooperation is must but conflict is also an expression of some un-addressed lacunae in the rationale of our system. Therefore an enlightened, compassionate and realistic attitude must go hand in hand with specific systemic innovations. We also believe that win-win situations are possible with the help of objective assessment and creative breakthroughs. For such assessment we require following information of last 3 years so that we can prepare our charter of demands based on rationality.

3 (THE CONTENT) 1. Sales/turn over, 2. Capital employed/capital size, 3. Employment size, 4. Value Added= Income Non Factor Expenditure. (Here non-factor expenditure means expenditure other than employee cost, depreciation and interest). 5. Material intensity/input intensity sales = value added 6. Capital intensity/capital output ratio capital = value added 7. Value added per manday 8. Return to capital per manday 9. Rate of profit Share of Capital = Capital employed 10. Employee cost (Bargainable/unionized) per man day 11. Prize mark up i.e., value added per unit, 12. Trend of output prices and input prices. 13. Capacity utilization of the plant and machinery, 14. Market share of the firm, 15. Ratio of financial result/ratio of operational results,

4 16. Ratio of debt/ratio of equity, 17. Percentage of non-operational income, 18. Break even point of sales and output, 19. Balance Sheet & Profit & Loss Account of Last 3 Years of the Company. 20. Productivity Data for each workstation including all elements. (CONCLUSION) We hope you will furnish the above information at your earliest. We also place on record our commitment for your and everyone's appreciation that we shall always uphold company's interests uppermost in all matters. We take this opportunity to convey our resolve to serve company interests at all times. We hope you will respond to this letter & start a new era in the field of Industrial relations. Thanking you, Yours Sincerely XYZ Employees Union (President) Secretary) (Gen.

5 Below is an Example of a notice of termination of the previous charter of Demands. To, 27 th May, Mr. XYG HR Manager, XYG Co. Ltd. Sub: Notice for Termination of the existing settlement Dear Sir, Please take notice that we hereby terminate the existing settlement, in accordance with section *** of the ***** (Which ever act is applicable in the respective countries) Act, Our existing settlement is getting expired on and new settlement is due from Yours truly, XYZ Employees Union (President) (G. Secretary)

6 To, 27 th May, Mr. XYG HR Manager, XYG Co. Ltd. Sub: Negotiation Committee Dear Sir, On behalf of XYZ Employees Union, we are nominating the following office bearers as a Negotiation Committee for the proposed settlement. 1. Mr. XYZ,President 2. Mr. XYZ, General Secretary 3. Mr. XYZ, Vice President 4. Mr. XYZ, Joint Secretary 5. Mr. XYZ, Treasurer 6. Mr. XYZ, Member 7. Mr. XYZ, Member Please communicate your negotiation team at your earliest. Thanking you, Yours Sincerely XYZ Employees Union (President) (G. Secretary)

7 To, 27 th May, Mr. XYG HR Manager, XYG Co. Ltd. Sub: Charter of Demands-2007 Dear Sir, Please refer our letter regarding termination of the existing settlement. Our existing wage settlement is getting expired on 30 th November, 2007 and proposed settlement is due from Please find enclosed herewith our Charter of Demands. The union on behalf of their members requests you to start the negotiations as early as possible for the amicable settlement. Thanking you, with regards. Yours truly, XYG Employees Union (President) (G. Secretary)

8 CHARTER OF DEMANDS-2008 The country s economy is in the process of far reaching changes. Liberalization of Trade and Globalization has brought around fundamental changes in the business environment. The need for improving the competitive position, not only on national level but also on Global level is of paramount importance. The Union recognizes these changes and the imperatives for the improvement in the productivity with total quality in order to survive and grow. We expect that the negotiation process should be completed before 31 st March, Duration of the Settlement: This settlement should be for three years with effect from 1 st December, 2007 and should continue to be in force thereafter unless terminated by either party as per the provisions of Industrial Disputes Act, Coverage: This settlement should cover all workmen employed in XYZ & Manufacturing Co. Ltd. and also those workmen who will join the Company after signing this settlement. 3. Negotiation Meetings: Minimum two meetings should be held in every week to settle the issues amicably at earliest. We also demand that the minutes of the said meetings should be recorded and finalized with union consent. 4. Fixed or Unlinked Rise: To compensate the erosion of the real earning of the workers and improved productivity in the period of existing settlement and to improve the existing standard of living, all workmen should get $5000/- as Unlinked Rise. This rise shall not be linked to productivity or any other factor. The distribution of the said fixed rise will be as follows:

9 a. 60% Basic b. 40% Allowances 5. Wage Scale As mentioned above 60% of $ 5000 i.e. $ should be added in existing Basic Pay and appropriate fitment should be made in new structure. 6. Yearly Increment: We hereby demand that the existing increment should be finalized in consultation with the Union. The minimum and maximum increment for the daily rated workmen should be Rs. 5 and maximum $. 10/. 7. Variable Dearness Allowance: With effect from for every point of increase or decrease beyond 100 CPI the variable dearness allowance should be paid at the rate Rs. 2 per point per day. The Variable D.A. (Special Allowance) as per the existing settlement should be considered as Fixed Dearness Allowance. Example: If the CPI for the Month of X for Pune (Simla Series 2001=100) is 140. Then the calculations should be as follows: = ( ) X Rs. 2 = 40 X 2 = Rs. 80 per day per workman 8. Productivity Improvement Linked Scheme: We hereby demand Productivity Improvement linked scheme. In order to meet ever-growing demands, local & international markets and increasing expectations from the stakeholders of the Company, productivity of the Company has to be increased to meet the challenges of global competition. Therefore, In addition to above mentioned fixed rise, as a compensation for additional

10 productivity due to system improvements & method improvements and cooperation to more flexible work practices we demand this rise. The scheme shall be discussed during the process of negotiation after getting all relevant data. We hereby propose the following principles for the Scheme. a. The Work Study should be conducted based on ILO norms. b. Time standards of various manual work elements should be established so that by the very description of manual elements so that standard equivalent time can be ascribed to it. c. While reporting or monitoring performance of the workmen, the work done by him should be recorded in terms of standard equivalent minutes value of that work (and not actual time taken/made available). d. In work element not only cyclic but extra cyclic work (preparatory, setting, filling up, or any other indirect activities necessary for accomplishment of work) should be accounted for. e. The conversion table of elements and standard equivalent minutes must be made available in terms of official copies & preparation, additions and deletions in such table must be participatory (express written consent by the union). f. Management must maintain a record of this account mutually signed. g. In every cycle, minimum 30 second pause per operation should be allowed. This pause should be in addition to official rest as it is recommended by I.L.O. As per the I.L.O., if there is a pause less than 30 seconds, it should not be considered as rest. 9. Company Performance Sharing Benefit: This benefit shall be applicable to all workmen covered by proposed settlement. This benefit shall be based on value addition of the company every month. This benefit should be paid at the rate of 3% of the Value

11 Addition per quarter. This benefit shall be disbursed equally to all workmen for that quarter. The modality of this allowance is given below. Value Addition shall be calculated based on following formula: Value Addition = Income Non-factor expenditure Here factor expenditure means all employees cost, interest, depreciation, corporate tax, etc. and therefore shall not be considered while calculating Value Addition. In other words all manufacturing & other expenses excluding personnel cost, interest, depreciation and corporate taxes shall be considered as non-factor expenditure. This rise will be fluctuating rise based on the over all performance of the Company and indicator of the performance shall be value addition of the company. Illustration of the Company Performance Sharing Benefit: Calculations for the month "X"- Value Addition for the Quarter X = Rs. 100/- Therefore the share of the covered employees shall 3% = Rs.3 for that quarter and shall be distributed equally to all covered workmen. The quarterly calculations of the value addition shall be scrutinized and finalized by the team of management representatives & worker representatives. All this information should be available to the said team well in advance.

12 This allowance is proposed in order to motivate workers for better performance and increase prosperity through systems & methods improvement. The prosperity due to better performance should be shared with workers, not fully but to some extent, so that they are bound to feel themselves as a part of the Company. This is a constructive approach adopted by the committee based on the principle of contributive justice. This will improve harmony & peace in the Company. This will also imply further rise in Capacity to Pay. Thus this demand is to the advantage of both the parties and ensures productivity, as well as justice. Such redesign of employee compensation introduces direct stake of workmen in the overall performance of the Company and also induces motivation not only to perform better but also become vigilant & cooperative in inter-functional integration of the work organization. Note: Union reserve their right to revise said demand after getting Balance Sheet and Profit & Loss Account. 10. Bonus/Ex-Gratia: All workmen should be paid Bonus/Ex-Gratia 20% of Basic + D.A. without any ceiling. 11. Canteen: We hereby demand that Canteen Facility should be introduced. Breakfast, Lunch, Dinner and Tea should be arranged in the canteen. This facility should be subsidized i.e. 75% Company and 25% workmen. 12. Mediclaim : We hereby demand that Company should introduced Mediclaim policy. This Policy should be of Rs. 2,00,000/- for the family. Here family means Husband, wife, 2 children, father and mother (Total 6 members).

13 13. Service Award: Service Award should be paid as follows: Sr. On Completion of Service Award in Rs. No. Continuous Years of Service Death Relief Fund: In the event of death of any workmen/employee on the rolls of the Company while in service, the entire employee s including management staff/workmen s 1 day Gross wage/salary should be deducted and equal amount should be added to by the Company. Such total amount should be paid to the legal nominee of the deceased workmen/employee within one month from the incident. In addition to this said amount all other legal dues should be paid to the nominee. We also demand that one eligible family member of such deceased workmen/employee should be given employment in the Company. 15. Leave: The Leave structure should change as follows: a) PL: Earned Leave should be given as per following Table: Sr. No Slab (Days) Leave Entitlement to Days to Days to Days to Days to Days to Days

14 7 271 to Days to Days * For Accumulation of the EL the existing limit should be revised and made 90 days. b) SL: Sick Leave should be given 8 days per annum. Accumulation of Sick Leave for 52 days. c) CL: Each workman should be entitled to get 8 Casual leaves in every calendar year. d) Accident Leave: In case of accident in the premises or outside of the Company, he should be given special leave as per the Doctor s advice. And the said leave should be considered as attended days for the purpose of EL. e) Paid Holidays: Paid Holidays should be 8 days per annum. The holidays should be discussed & finalized with the Union Representatives. 16. Uniform: Each workman should be given 2 set of uniform (Shirt & Pant). The colour & quality of uniform should be discussed with the Union committee representatives. We also demand that 2 pair of shoes should be given every year. 17. Loans: a) Housing Loan: Housing Loan should be given 1,00,000/- (without interest) and should be recovered in 50 equal installments. b) Educational Loan: For Higher Education, Rs. 1,00,000/- should be given. This loan should be given

15 after S.S.C. This loan should be interest free and repayable in 50 equal installments. c) Education Advance: Every workman should be entitled to get Interest free Education Rs. 1000/- per child per annum subject to maximum two children. The said amount will be repayable in 10 equal installments. d) Festival/emergency Advance: Interests free Festival/emergency Rs. 5000/- should be given once in a year and should be recovered in 10 equal installments. 18. Training: We hereby demand the right and highlight the individual responsibility to competence development to enable every worker to contribute to industrial development, increased competitiveness, a high standard of living and a well- functioning democracy. Changes in work organization, continuous technological developments and new materials and production processes have created a need for continuous training and retraining. Although training cannot solve all the problems but it is also clear that industry cannot remain competitive without a highlyskilled work force. Union recognizes this and feels that there is an urgent need for action. An individual right to training has to be a right for all employees of a company. We believe that training and life-long learning need to be an individual right, guaranteed to the complete work force and not only to a selected group. Therefore we hereby propose that: A MINIMUM NUMBER OF 5 DAYS OF TRAINING FOR ALL EMPLOYEES: The aim to ensure the right to training for all employees can be reached by different means, but an important step could be to

16 guarantee all employees a minimum of 5 days vocational training per year. Company should together make an annual plan for vocational training/education based on the employee s needs for training and the goal of the company. The plan should be approved by the Union. The plan must include timing, elements of quality and a minimum number of days for the scheduled training. The scheduled training must be appropriate for the needs of the work and the employability of the worker. An overall company plan on training should also be provided. VOCATIONAL TRAINING MUST BE COST-FREE FOR THE EMPLOYEE: When the employee receives vocational training this has to be provided cost-free and access to this training should be provided during normal working hours. Vocational training outside normal working hours can only be accepted with discussion with the Union which also sets out the framework for this training, including possible compensation for time. There should not be any adverse impact on wages including incentive due to training. CERTIFICATION FOR QUALIFICATION: After participating in training/education programs, employees should receive documents that confirm their training and their qualification, whether this qualification is achieved through training and/or experience. 19. Shift Timing & Shift Allowance: Shift Timing & Shift Allowance should be as follows: Shift Shift Time Shift Allowance 1 st Shift 6.30 a.m. to 3 p.m. Nil 2 nd Shift 3 p.m. to p.m. Rs.20/-

17 3 rd Shift p.m. to 6.30 a.m. Rs. 30/- 20. Union Office & Time Off: We hereby demand that Company should provide well furnished office for the Union inside the Company Premises. We also demand that the office bearers of the Union should be given time off for the union work. A special leave should be granted to Union Committee members/office bearers for attending Training Programs and also conveyance allowance should be paid for the same. 21. Annual Picnic & Annual Day Gathering: Company should organize a picnic and Annual Day Gathering once in a year. The modalities shall be discussed during the process of negotiations. 22. Other Demands: a. Health Check up (Once in a year) for all workmen. b. All workmen should be given Tetanus injection once in every year. c. Skill Pay: Those workmen who are entitled to get skill Pay should be Rs. 800/- 23. Existing Rights, Facilities and Service Conditions: All existing rights, facilities and service conditions, not mentioned in Charter of Demands should continue.

18 Note: Union reserves their rights to add, deletes, and modify the said demand in the view of facts and issues revealed in the course of negotiations or otherwise.

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