UNION FORMATION IN

INDIA’S BPO SECTOR

Presented By:- Ankita

Srivastava

Poorvee Batra

Neha Yadav

Purnima Sharma

Neetu Sharma

Niti Chaudhary

Rajni Kumari

CONTENT BPO TRADE UNION BENEFITS AND LIMITATION OF BPO FEATURES OF TRADE UNOIN HISTORY OF UNION FORMATION CAUSES OF UNION FORMATION PROBLEM FACING BY UNITES BPO WORKFORCE CONDITION

BPO Business Processing Outsourcing Business process outsourcing (BPO) is a subset

of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider.

BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing

TRADE UNION The Trade Union Act 1926 defines a trade union as

a combination, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.

BENEFIT Salary Qualification Transportation facility On the Job Training Medical Insurance

LIMITATION Odd Working Hours Family Life Health Issue Abusive Client

FEATURES OF TRADE UNION

It is an association either of employers or employees or of independent workers. They may consist of :- Employers’ association (eg., Employer’s Federation of India,

Indian paper mill association, etc.) General labor unions Friendly societies Unions of intellectual labor (eg, All India Teachers

Association)

It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They persist throughout the year.

It is formed to protect and promote all kinds of interests –economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic.

It achieves its objectives through collective action and group effort. Negotiations and collective bargaining are the tools for accomplishing objectives.

Trade unions have shown remarkable progress since their inception; moreover, the character of trade unions has also been changing. In spite of only focusing on the economic benefits of workers, the trade unions are also working towards raising the status of labors as a part of industry.

HISTORY OF UNION FORMATION

IT, BPO WORKERS NEED UNION TO END 'DEMOCRATIC DEFICIT'

A global trade union has contested Indian IT industry body Nasscom's stated position that trade unions in the sector would be counter-productive, saying that such organisations are mutually beneficial and their formation would end 'democratic deficit' in the industry.

"Nasscom has got it all wrong. They (BPO companies) need unions as much as the staff do, if they are to get effective feedback and tackle common issues like high turnover and training deficits", Philip Bowyer, Deputy General Secretary of the Switzerland-based trade union UNI said.

WHY BPO EMPLOYEES HAVE JOINED, OR MAY JOIN,

UNITES?

REASON OF JOINING UNITES Odd Working Hours The Power Of Collective Bargaining Women’s Security Psychological Pressure Problem Solver Provide Information About Rights

PROBLEM FACING BY UNITES High Attrition High Salaries Employees Negative Thinking Fear Of Termination Companies are opposed to Unites Manager is available for solving a problem Union Damaging the Growth of Industries

BPO WORKFORCE CONDITION

Considering evidence from existing studies on working conditions, it is suggested that tight monitoring, surveillance and a plethora of controls are widely implemented, which minimise employee discretion.

Many agents have reported an experience of work as highly pressurised, even frequently stressful. Evidence suggests a growing intensification of work, which is often couched in the language of ‘operational excellence’ or the need to realise productivity improvements.

Since the need to reduce the cost base will continue, the outcome will be increasing pressure on employees through longer hours, fewer and shorter breaks and tighter targets. The rise in the rupee against the dollar (the main currency of contracts) is likely to exacerbate these trends.

Existing literature has highlighted how the distinctive characteristics of Indian BPO, such as nocturnal call-handling, have exacerbated the generic pressures arising from the nature of work organisation.

Related to the general absence of union recognition and collective bargaining, researchers have identified a ‘democratic deficit’ in Indian BPO. Employees report managerial arbitrariness in their treatment. Top-down methods dominate employers’ communications systems and eschew employee involvement in decision-making.

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