Labours not lost

Unions in pharmaceutical industry have always been considered a big stumbling block. Today however, with changing times and increased professionalism few seem to be interested in activities conventionally associated with unions, Sushmi Dey explores

In the words of Karl Marx, “Labour produces not only commodities; it produces itself and the worker as a commodity and does so in the proportion in which it produces commodities generally.” Unions and communism was born as a defence mechanism to escape from the exploitation of the minor and inconspicuous working class.

A union can be defined as an association, a combination or an organisation of employees who come together to secure favourable wages, improved working conditions, and better work hours, to resolve grievances against employers. The existence of a union has always ensured a continuous association of employees and the management with the primary purpose of maintaining and improving the conditions of employment, even at the cost of being accused for disrupting work. “The workers' union often negotiates with employers over wages, more benefits and better working conditions,” asserts A K Mishra, Head-HR, Alkem Pharmaceuticals.

Times have changed, yet the agenda of these unions remains the same. However, they are no more in the news for infamous actions. But that does not mean that they do not exist anymore. They are very much alive. In fact, pharma companies are working with the unions to draft strategies to address the needs of their employees as well as create conducive working atmosphere for them.

Type of Unions

In spite of having a common agenda for betterment, unions are generally classified on the basis of their members. For instance, the General Union has all the skilled and semi-skilled workers as members, whereas the Craft Union is for those performing a specific type of work. Then there is the most talked about Industrial Union for workers in a particular industry or sector and the White Collar Union is for employees in clerical and administrative jobs.

Recent times have witnessed the formation of another strong force in the form of Field Union for and by the medical representatives to look after their interests.

“While the demands of the workers' union who work in plants is more focussed on growth of their existent people and their protection, the field union is more demanding about controlled working and value added job.” says Prakash Shanware, President-HR, IPCA Laboratories.

Problems faced

Traditionally, managements have looked at unions as people who dictate their own terms. They are often looked upon as the source of indiscipline and for creating violence, thereby affecting the company's work. HR leaders say that unions often involve the employees in strikes and lockouts by stopping work and leaving the workplace.

Unions have the right to negotiate collectively with the employer over several issues. There have been times in the past when both parties (management and the union) were unable to reach an agreement. Successively there are strikes, lockouts which at times culminated in violent and illegal activities. The only beneficiaries of such situations are external elements who entice the employees thereby affecting work and resulting in extreme cases of violence.

Political motivation

Most of the unions these days are affiliated to a larger organisation that negotiates with the government and are hence politically motivated. They may pursue campaigns, undertake lobbying, and financially support individual candidates or parties because the structure of employment laws affects the unions' roles and their modus operandi. But the majority of HR experts believe that it has little to do with the company and its work. “Workers are more interested in what is best for them. They not affected by the political motivation,” says Shanware.

Many pharmaceutical companies face the problem of low output. It was felt that unions often attempt to reduce the productivity hoping that the company will give in to their demands. The ultimate consequence is reduction in sales and profit. According to Mishra, unions in pharmaceutical industry often support non-performance. “They are not concerned with the sales,” he explains. Agrees Shanware, “The medical representative union in pharmaceutical companies often fusses about its job profile. It insists that MRs should be promoting, not selling the medicines.”

Management initiatives

As they say, you have to give some and take some in every relationship. Both, the unions as well as the management have to work towards a sound working environment in the company. Dr Kashmira Pagdiwalla, Vice-President, HR of Intas Pharmaceuticals explains, “If the company is fair when dealing with its employees there is no need for a union because it only creates different agendas and different demands irrespective of the consequences.” At Intas, she insists there are no unions as a result of fair and transparent practices.

Though unionism in pharma companies has always been considered an obstacle, experts believe that unions pose problems or threats only when a company is not receptive to communication and negotiation. Hence, regular and open communication and transparency in operations are the two pillars of a good management-union-employee relationship.

Shanware says, “The management should deal fairly, communicate regularly and the people should be given opportunity to grow.” On a day-to-day basis, employees can be given more responsibility at the workplace and can be involved in the decision making process. He also insists that in case of mergers, alliances, and joint ventures, there has to be a clear and transparent communication with union. This is because alliances of any kind are traumatic for the employees (blue as well as white collared ones).

Employees are insecure about their future in the new set up, which may involve transfers and closing of works. The motivation levels, in such times hit an all-time low and grapevines work overtime leading to chaos in the company and the factory. In such a scenario, it is advisable for the management to interact directly with the employees and clarify their doubts and eradicate insecurity.

The aim of such interactions is to increase the levels of motivation and job satisfaction amongst them by making them feel more involved in the business.

Mishra agrees, “It is essential to talk to take employees into confidence while there are alliances and mergers.” Shanware adds, “Management and HR themselves should play the role and continuously educate, guide and address the genuine grievances of the employees.” However, experts also believe that there are also times when the management has to take a tough stance in order to tab tough situations.

The up side

Unions are not always derogatory for the organisation. They play an important role in the corporate environment since they ensure that employees' needs and interests are protected and looked after.

When a need arises to negotiate with the management, unions are able to do so more efficiently as they are recognised by employers as representatives of their employees.

If used constructively, unions often prove effective for communicating, says Shanware. According to him, it is important to have a union representative at times as otherwise it becomes difficult to interact with and cater to individuals, their needs and expectations. Also, unions often try to increase the amount of worker participation in the workplace bringing in positive changes and competition. Unions also motivate the employees to work harder and increase their efforts, which is in the interest of the company.

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