Singareni collieries: From gloom to glory

Venkatesh K G

Overview:

• Owned by State government (AP) & Central government – 51:49

• 10,435 million tonnes of coal reserves

• 114,486 low productive employees

• Lot of self designated unions (103)

• declared sick (bankrupt twice) – 1992 & 1996 with accumulated loss of 12.19 billion

• Post-liberalization pressurising domestic energy & power players.

Issue:

• Accumulated loss of ₹12.19 billion

• Low productivity of employees

• Liberalization. Competitive coal price from China,Australia

• Large number of strikes

• Large number of unions : 103

• Poor industry relations because of strike & quality issues

• Low transparency & lack of trust with the management

• Employees : poor, illiterate, alcohol and gambling

Cause:• No communication to labours from top management

• Weak top-management

• No accountability/recognition for excellence

• Low motivation level – not following shift timings

• Strong influence of unionism- 103 (self-designated)

• Illiteracy & unskilled labours

• Strikes due to safety issues & accidental deaths

• High number of employees (114,486)

Action:1. Increase transparency in the organization

• Direct Letter communication illiteracy Opposition from union

• Involvement of employees in client interaction

2. Strengthening the top management team

3. Motivation• Introduction of best Mining worker & non-Mining worker awards / performance based incentive program.• Involvement of employees in client interaction• Employee exchange program to foreign nations & employees education

4. Introduction of union elections & reduce union count to 5.

5. Demonstrate care & concern• Camps on nutrition and ailments• Improve safety in the organization & conduct safety camps• Accommodation facility for employees hospitalised in Hyderabad• Personal touch by interacting by hospitalised victims • Interaction with diseased employees family and explain benefits

6. Centralization of recruitment & Transfer to optimise employee count

Result:

• Increased employee productivity & decreasing accumulated loss

• better employee satisfaction

Inference:

• Transparency has to be maintained in the organization

• Better to keep employees in client interaction/problem discussion to keep them motivated

• Motivate employees by awarding their superior performance & incentivise them

• Under crisis, explain employees the issue and educate them the situation

Thank you