Product development

Insights into IR in Next Decade

Published

6 years ago

January 4, 2019

admin

– Dr Rajen Mehrotra

In the next 10 years (next decade), enterprises will tend to have an employment model where the permanent workers which presently is nearly 30 per cent will fall further and become 10 to 15 per cent of the workforce.

The employment model of enterprises both in manufacturing and service sector has gone through a major change from 2013 wherein the enterprises have substituted the erstwhile permanent workers by engaging people under various categories given below, depending upon the decision of the top management of the enterprise:-

i)Designated officers / executives, who are doing the same work which was done by the workers earlier.
ii)National Employment Enhancement Mission (NEEM) trainees through a NEEM agent under The All India Council of Technical Education scheme on skill development which commenced in April 2013.
iii)Company Apprentices under the provision for "Optional Trade" wherein an enterprise can come up with a trade relevant to its business based on the introduction of Section 2(iii) (LL) under "The Apprentices (Amendment) Act, 2014.
iv)Fixed Term Employment (FTE) employees based on the Government of India Gazette Notification of 16 March 2018 bringing FTE as a valid form of employment under The Industrial Employment [Standing Orders] Act, 1946 under the Central Rules.
v)Workers through contractors/temping companies which would be covered under The Contract Labour (Regulation & Abolition) Act 1970.
vi)Engaging persons on a daily basis with a fixed salary per day and paying them for the days worked every month.
The present approach of enterprises in most cases is not only to achieve a cost arbitrage but also to find innovative approaches to reduce direct employment of persons in the worker category wherein there is a lower probability of these persons becoming members of a trade union and / or being covered under the ambit of the Industrial Disputes Act, 1947. It is likely that this trend will continue in the future and will have its own impact on Industrial Relations of the next decade.

Study on Employment Trend in India
Dr. K. P. Kannan, Honorary Fellow, Centre for Development Studies, Thiruvanathapuram, while delivering the First Sharit Bhowmik Lecture on 22 Sept. 2017 at Tata Institute of Social Sciences (TISS) Mumbai analysed the shift in employment of the informal workforce in the formal sector from 2000 to 2012 in India. As per Dr. K. P. Kannan the informal employment in the formal sector which was 5.8 % in 2000 went up to 10.1% in 2012 while the formal employment in the formal sector which was 8.2 % in 2000 went down to 7.8 % in 2012. This study indicates the structural shift in the type of employment in terms of the macro economic data on employment. The analysis by Dr KP Kannan clearly indicates that there is a substantial increase in employment of flexible work force in the formal sector, thus leading to a structural change in the employment pattern in India.

Study on Employment Trend of workers in Pune "Option Positive" carried out a survey of 143 enterprises in and around Pune covering enterprises located in Chakan, Ranjangaon, Sanaswadi, Talegaon and also at Baramati & Pirangul. This survey was presented by Arvind Shrouti of Option Positive at a Conference on "The Employment Conundrum" organized by Industrial Relations Institute of India on Fri 25 January 2019 in Mumbai. The details of the findings based on the survey as presented by Arvind Shrouti are as follows: –

The survey findings clearly indicate presently the permanent workers in enterprises surveyed are 27%, contract workers are 28%, NEEM Trainees are 22% and the balance are 23%. It is clearly evident that the category of workers in the employment model of the workers has gone through a major shift from what it was prior to 1991 (i.e. the year, when the Indian economy opened up). NEEM Trainees is the new pattern of engaging productive work force in large number of manufacturing enterprises after 2013. Presently the permanent workers as a percentage of the workers in an enterprise has fallen drastically to nearly 30 percent and this trend of reduction is likely to continue as the approach of enterprises in hiring the incremental workforce in worker category will be of the non-permanent category. This approach is bound to have an impact on membership of trade unions plus Industrial Relations. The survey findings also indicate the existing monthly average wage in each category of workers. The permanent workers in most cases would be of the skilled category, and would also be members of a trade union and receiving the benefit of increase in monthly emoluments, because of the long-term wage settlements signed by the enterprise with the trade union. The average monthly wage of the permanent workers is Indian Rupees 38,720/- which is three to four times the monthly wage of the other category of workers (i.e. non-permanent workers which can also be referred as flexi workforce).

The survey findings of Option Positive also indicates the skill, as well as years of service of the non-permanent workers and the details of the findings based on their survey are as follows:-

From the survey findings, it is evident that only 20 % of the non-permanent workers (i.e. flexi workforce) are unskilled, hence an inference could be drawn that a substantial number of contract workers, temporary workers and NEEM trainees are undertaking work which is of semiskilled or skilled nature, but still their monthly remuneration is less than one third of that compared to the permanent worker. This disparity at a later date is bound to lead to an Industrial Relations issue. Also because of non-ease on availability of job mobility over 50 % of the non-permanent workers (i.e. flexi workforce) continue to work in the same organization for over five years, even though there is no practice of any annual increment in wages.

Likely Changes in Next 10 Years
The present business environment is highly competitive and in a dynamic economy it is essential to have a flexible employment model wherein an enterprise can easily restructure the workforce, as and when required based on the business conditions. At the same time enterprises need to ensure that the remuneration and retrenchment benefits of the flexible workforce must not be exploitive.

It is highly unlikely that any major changes in labour laws {i.e. Trade Union Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947, Contract Labour (Regulation and Abolition) Act 1970} which govern Industrial Relations in enterprises is likely to occur in the next decade. The National Democratic Alliance under Ministry of Labour & Employment had brought in Labour Code on Industrial Relations Bill 2015 covering Trade Union Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947. In the said Bill there were certain changes proposed in the existing laws such as amendment to Chapter VB of the Industrial Disputes Act 1947, where prior permission for Layoff, Retrenchment and Closure of an industrial undertaking raised from present 100 to 300 (NB the figure was earlier 300 and was brought down to 100 as strikes and lockouts in industrial establishments were banned during the emergency period in India). Also, the amount of compensation payable to the departing worker in the case of Retrenchment & Closure revised upwards in the said Bill. The Labour Code on Industrial Relations Bill 2015 has not been passed by Parliament and the sessions of the present Parliament are over, hence the Labour Code on Industrial Relations Bill 2015 will lapse. It is possible that a similar Bill may be brought, once the next Government comes to power in 2019. In all probability the Contract Labour (Regulation and Abolition) Act 1970 will continue and more flexibility is likely to be brought in on engaging contract labour, as Government of India and Public Sector Units (PSU’s) are the biggest employers of Contract Labour. Also, there is immense flexibility in the type of work that can be assigned to this category of workers (i.e. contract labour) and also their work performance in most cases is better compared to the permanent workers.

New, successful business models like aggregators Uber and Ola, where the vehicle owner is an " employer" and also the "employee / driver " is presently fuzzy with reference to the labour legislation in India. In recent times we witnessed unionization of these vehicle owners coupled with strikes in Mumbai and Bengaluru when their monthly income fell, as they have to pay the equal monthly instalments to the bank for the loan taken to buy the vehicles and become vehicle owners. It is likely that the next decade will see both unionizations as well as litigation and probably a direction towards clarity on this fuzzy employer – employee relationship, as the aggregators Uber and Ola claim that they are not employers, but agencies, that facilitate business between the vehicle owner and the customer. This aggregator model presently is not limited to vehicle owners, but also other activities of business and is likely to expand by identifying new areas of applications for various business where it is feasible.

As for Information Technology (IT) & Information Technology Enabled services (ITEs), highly educated and skilled manpower is by and large recruited and it has been observed that these employees are reluctant to become members of a Trade Union. It is likely that this trend will continue till the next decade, though there have been efforts by certain trade unions at making these employees members.

Also, the trends in automation and digitisation: Industry 4.0, in the next decade can lead to less employment of ?bargainable employees?, and higher number of highly skilled and highly paid employees recruited at the executive levels. This category of executive employees is not likely to become members of a trade union.

In the next decade, enterprises will tend to have an employment model where the permanent workers which presently is nearly 30 % will fall further and become 10 to 15 % of the workforce. This employment model is bound to have Industrial Relations implications, if the ratio of monthly wages of the permanent workers to non-permanent workers (i.e. flexible work force) is five to six times.

In the next decade the new workforce will come from Gen Millennials and Gen Z. Managements will need to look at issues & problems faced by the Gen Millennials and Gen Z & draw strategies proactively to prevent their grievances turning into Industrial Relations issues. This younger workforce especially in greenfield sites will need a different handling, as they seek higher rate of growth, both in money and promotions and also their preference will be for white collar type or service sector jobs.

It is true that most trade unions find it tough unionizing the flexible work force (i.e. Contract Workers, Temporary Workers, Trainees and NEEM Trainees) as this category of workers have a fear of loss of employment in the event of unionization. As job security is likely to be impacted adversely in the coming years, due to various reasons (with poor job security i.e. contract or temporary) this workforce is likely to ?look for some ray of hope, as to who can protect their jobs at the same time facilitate in improving monthly earnings which are higher than the minimum wage?.

This could facilitate in increase in trade union membership and demands for improved job security and higher wages, though the workforce is engaged through a contractor / service provider or an agency.

Also, by the next decade when the permanent workers in the employment model falls to 10 to 15 %, the probability of the trade unions in making flexible workforce a member of their trade union is likely to be higher, if the ratio of monthly wages of the permanent workers to non-permanent workers (i.e. flexible work force) becomes five to six times. This wide variation in the wage pattern is likely to lead to a situation of turbulence, industrial unrest and if timely corrective interventions are not taken by enterprises in certain cases it could also lead to violence.

Conclusion
I have tried to predict the likely employment model, likely wage disparity and the consequential Industrial Relations climate of the next decade.

It is for individual enterprises to work out their strategies to handle the industrial relations issues that will emerge in their enterprises in the next decade. Some of the suggested actions enterprises can undertake, if they find them feasible and affordable for their enterprise to avoid getting into aturbulent Industrial Relations situation in the next decade, are listed below, but this is not a check list.

i)Limit the intake of flexible work force based on the principle of minimum adequate manning.
ii)Be open for a dialogue with the representatives / trade union of the flexible work force to find out what their grievances / demands are and have an approach towards finding a solution
iii)Be prepared to work out a methodology to pay the flexible work force higher than statutory minimum wages.
iv)Wherever the flexible work force is engaged on jobs that are of skilled, semi-skilled jobs, be prepared to work out a mechanism to pay them higher wages compared to the wages paid to the unskilled category.
Enterprises will also need competent Personnel in the management team who can effectively handle the Industrial Relations situations that will emerge with the diversified workforce. Presently, there is limited availability of managerial personnel who can effectively handle these situations with amicable solutions acceptable to the trade unions, their members and the management and take proactive steps to ensure avoidance of turbulence / disturbance.
The Industrial Relations in the next decade in each enterprise will not be identical, but since the likely employment model as predicted may have a flexible work force varying from 85 to 90 %, there are chances of a turbulent Industrial Relations Climate and hence the need for each enterprise to take preventives measures to prevent occurrence of turbulence.

Dr. Rajen Mehrotra is the Immediate Past President of Industrial Relations Institute of India (IRII), Former Senior Employers’ Specialist for South Asian Region with International Labour Organization (ILO) and Former Corporate Head of HR with ACC Ltd. and Former Corporate Head of Manufacturing and HR with Novartis India Ltd. E-Mail: rajenmehrotra@gmail.com Based on the talk delivered on Fri. 15 March 2019 in Mumbai at the Western Regional Conference on "HR Challenges Decade ‘- 3*"organized by National Institute of Personnel Management (NIPM), Mumbai Chapter. Published in April 2019 issue of Current Labour Reports & Arbiter

Economy & Market

Impactful Branding

Published

1 year ago

July 17, 2023

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Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.

Concrete

Indian cement industry is well known for its energy and natural resource efficiency

Published

2 years ago

November 18, 2022

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Dr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.

Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.

What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.

Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
In the coming times, the cement industry must relook for other blended cement options to achieve a low carbon emissions road map. In near future, availability of fly ash and slag in terms of quality and quantity will be reduced due to various government schemes for low carbon initiatives viz. enhance renewable energy sources, waste to energy plants etc.
Further, it is required to increase awareness among consumers, like individual home builders or large infrastructure projects, to adopt greener alternatives viz. PPC and PSC for more sustainable
resource utilisation.

What are the decarbonising efforts taken by your organisation?
India is the world’s second largest cement producer. Rapid growth of big infrastructure, low-cost housing (Pradhan Mantri Awas Yojna), smart cities project and urbanisation will create cement demand in future. Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production.
Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
By reducing clinker – cement ratio, increasing production of PPC and PSC cement, utilisation of alternative raw materials like synthetic gypsum/chemical gypsum, Jarosite generated from other process industries, we can reduce carbon emissions from cement manufacturing process. Further, we are looking forward to generating onsite fossil free electricity generation facilities by increasing the capacity of WHR based power and ground mounted solar energy plants.
We can say energy is the prime requirement of the cement industry and renewable energy is one of the major sources, which provides an opportunity to make a clean, safe and infinite source of power which is affordable for the cement industry.

What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
If we talk about air pollution in operation, every section of the operational unit is well equipped with state-of-the-art technology-based air pollution control equipment (BagHouse and ESP) to mitigate the dust pollution beyond the compliance standard. We use high class standard PTFE glass fibre filter bags in our bag houses. UCWL has installed the DeNOx system (SNCR) for abatement of NOx pollution within norms. The company has installed a 6 MW capacity Waste Heat Recovery based power plant that utilises waste heat of kiln i.e., green and clean energy source. Also, installed a 14.6 MW capacity solar power system in the form of a renewable energy source.
All material transfer points are equipped with a dust extraction system. Material is stored under a covered shed to avoid secondary fugitive dust emission sources. Finished product is stored in silos. Water spraying system are mounted with material handling point. Road vacuum sweeping machine deployed for housekeeping of paved area.
In mining, have deployed wet drill machine for drilling bore holes. Controlled blasting is carried out with optimum charge using Air Decking Technique with wooden spacers and non-electric detonator (NONEL) for control of noise, fly rock, vibration, and dust emission. No secondary blasting is being done. The boulders are broken by hydraulic rock breaker. Moreover, instead of road transport, we installed Overland Belt Conveying system for crushed limestone transport from mine lease area to cement plant. Thus omit an insignificant amount of greenhouse gas emissions due to material transport, which is otherwise emitted from combustion of fossil fuel in the transport system. All point emission sources (stacks) are well equipped with online continuous emission monitoring system (OCEMS) for measuring parameters like PM, SO2 and NOx for 24×7. OCEMS data are interfaced with SPCB and CPCB servers.
The company has done considerable work upon water conservation and certified at 2.76 times water positive. We installed a digital water flow metre for each abstraction point and digital ground water level recorder for measuring ground water level 24×7. All digital metres and level recorders are monitored by an in-house designed IoT based dashboard. Through this live dashboard, we can assess the impact of rainwater harvesting (RWH) and ground water monitoring.
All points of domestic sewage are well connected with Sewage Treatment Plant (STP) and treated water is being utilised in industrial cooling purposes, green belt development and in dust suppression. Effluent Treatment Plant (ETP) installed for mine’s workshop. Treated water is reused in washing activity. The unit maintains Zero Liquid Discharge (ZLD).
Our unit has done extensive plantations of native and pollution tolerant species in industrial premises and mine lease areas. Moreover, we are not confined to our industrial boundary for plantation. We organised seedling distribution camps in our surrounding areas. We involve our stakeholders, too, for our plantation drive. UCWL has also extended its services under Corporate Social Responsibility for betterment of the environment in its surrounding. We conduct awareness programs for employees and stakeholders. We have banned Single Use Plastic (SUP) in our premises. In our industrial township, we have implemented a solid waste management system for our all households, guest house and bachelor hostel. A complete process of segregated waste (dry and wet) door to door collection systems is well established.

Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
The company has taken up various energy conservation projects like, installed VFD to reduce power consumption, improve efficiency of WHR power generation by installing additional economiser tubes and AI-based process optimisation systems. Further, we are going to increase WHR power generation capacity under our upcoming expansion project. UCWL promotes rainwater harvesting for augmentation of the ground water resource. Various scientifically based WHR structures are installed in plant premises and mine lease areas. About 80 per cent of present water requirement is being fulfilled by harvested rainwater sourced from Mine’s Pit. We are also looking forward towards green transport (CNG/LNG based), which will drastically reduce carbon footprint.
We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.

Concrete

NTPC selects Carbon Clean and Green Power for carbon capture facility

Published

2 years ago

October 12, 2022

admin

Carbon Clean and Green Power International Pvt. Ltd has been chosen by NTPC Energy Technology Research Alliance (NETRA) to establish the carbon capture facility at NTPC Vindhyachal. This facility, which will use a modified tertiary amine to absorb CO2 from the power plant’s flue gas, is intended to capture 20 tonnes of CO2) per day. A catalytic hydrogenation method will eventually be used to mix the CO2 with hydrogen to create 10 tonnes of methanol each day. For NTPC, capturing CO2 from coal-fired power plant flue gas and turning it into methanol is a key area that has the potential to open up new business prospects and revenue streams.