Wednesday, September 4, 2019

Another organisation grappling with militant trade unionism.

Preamble

While on the one hand, the ruling front's trade union has created a situation to the extent of a business-house announcing that it would shut down its operations, on the other hand, the government has been struggling to build its image of being pro-business.

There's no doubt that the interest of the workers in any organisation must be an important factor and trade unions do help in this aspect but when it's carried too far, problems can set in. It would be worthwhile for all the stakeholders to bear in mind that only if the organisation is safe, sound and ticking that their well being would be assured.

Background

Tension prevailed at the head office of Muthoot Finance on Banerjee Road, Ernakulam yesterday after the company's employees who have been on a strike demanding better wages were caught in a skirmish with the other employees who had come to work, ignoring the protest. The problem began when the employees association of the finance company under the banner of CITU staged a blockade in front of the office, denying entry to those who came to work.

The Company at a Glance.

* Loan assets under management            Rs. 34,246 crores.
* Revenue                                                Rs.   6,881 crores.
* Profit before tax                                    Rs.   3,077 crores.
* Net profit                                              Rs.    1,972 crores.             
* Reserves and surplus                            Rs.    9,392 crores.
* Gold kept as security                            169 tons.
* No. of branches                                    4,471.
* Branches in Kerala                               611.
* Employees                                            24,224
* Operational                                           In 29 states and U/Ts.

Where things don't match.

Claims.

 1. No proper salary structure is in place within the organisation. Though manager-level officers
     have a salary of above Rs.32,000/-, sub staff and field staff are still not getting Rs.18,000/-. A field
     staff with 25 years' experience is paid only Rs.12,000/-, including allowances.
 2. Union members are also not allowed to avail the employ stock option system(ESOP) in the
     company to purchase shares, despite them being eligible as per the company's own criteria.
 3. As many as 23 employees out of the 40 workers who were selected for ESOP are union members
     and they have not received the benefits yet.
 4. The management has not raised any complaints about the productivity of the workers in Kerala.
     In fact, most employees including women, work from 0900 hrs till night.
 5. The management is against employee unions and targets those who are part part of the union.
     Measures like inter-region transfer, suspension, deprival of incentives and bonus etc. are initiated
     against the union members.

Counter claims.

 1. Muthoot Finance's pay is high in the NBFC(Non Banking Financial Company) industry - sub
     staff's CTC is Rs.18,000/- per month, staff is Rs.22,000/- and managers Rs.32,000/- to 38,000/-
     per month.
 2. Muthoot Finance is the only Kerala-based NBFC to offer ESOP.
 3. Productivity of employees is low in Kerala. The average business per branch is only Rs.2.5 crores
     in Kerala, compared Rs.9.5 crores in the rest of the country.

The upshot.

Muthoot Finance will permanently be shutting down 300 of the 611 branches in Kerala. These branches have remained shut since 20 Aug '19 because of the ongoing strike.

Sad!


Tailpiece. 

It was mom's 3rd remembrance day as per the English calendar. Rewound that ill fated day and was melancholic. Had my haircut at the Amigos and Sajish gave me a good massage.




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