please solve and analyse labour issues?

Question

our english language is poor.anyway ,I want to communicate with you.we are small handmade
manufacturer giving job 50 labours.we started
our factory last May 2006.we had given minimum wages near parellel Industries. Within Six month our workers demanded10% increase,because
they expertised job(familier and giving good
output)but,we emprassed,but no alternative because of our order pressure,we accepted
workers demand.Now completeted one year,we added another 30 new labours in our company
due to work pressure,but workers demanded
old labour wages.we immediately accepted
cutdown only 3%.Old workers again demaded 10%
completed 13th month. but our return out put and profit less than6% only.just our business are going,we are not considering profit in beginning years.We informed not possible such level wages increament,Our old workers stopped duties in last 15 days,.New workers not getting proper Experience, so our production output are very less.
we are loosing our orders,sgtns rqr

Answer 1

Sounds like an interesting business analysis case but an actual REAL LIVE SCENARIO compared to when we did after the fact case studies for a grade in a college level Financial Mgmt course. Though I also took my share of economics courses incl Labor, bec you are outside the USA different laws & unions policies most likely are best to not consider in terms of what band-aid measures will most likely provide stability or improvement.

Here are some suggestions off the top of my head that may help: (i) I would have first identify your key workers who your business might not survive if they jumped left and quit though reading what you wrote you might have a problem if the key workers have joined forces; (ii) I would then do my best to align supervisors and workers into teams as well as (iii) doing analysis to breakdown your product line in terms of what your incoming orders and what lines or products provide the best profitability in terms of sales price vs cost to manufacture (iv) then you need to review the structure your work teams to where you are able to measure the quality & how many they produce on an average day so that some time of reward or incentive can be given; (v) at the same time I would recommend the establishment of a structured salary table depending on position, years of experience.

Best of Luck!

Answer 2

1) Put it down to experience, you have made a mess of this.

2) It is human nature to always want more, so the 10% is soon forgotten and another 10% is wanted because that is what they got last time.

3) Never give a big pay rise to everyone like this again. People adjust very quickly to the extra money and then don't appreciate it. You could have used that 10% more wisely by offering perks and surprises "staff parties" "extra holidays" "free breakfast every day" Everyone wins by doing this sort of thing and it costs you far less.

4) All you can do now is put up your prices by 5-10%. The effect will be that you will have a better profit margin, you will have 5-15% fewer orders and will not need as many staff.

5) Then tell your staff that you have had to put your prices up because of their demands. You will receive fewer orders and some staff will not be needed. Simple.

Answer 3

Negotiate, give them the alternative of increasing out put to a bonus for the more work , some may not work as hard as others ,so those who work harder get more money, those who cannot keep up get the basic , and set a maximum for the basic, if unable to meet this figure warn them three times that you expect them to meet these figure s or it may mean dismissal or moved to another job that is lower pay. then say that you can pay more only if you lay some off, explain your overheads by taking on more staff increased and the output did not match the increase , in so much that the profits may mean you will have to cut back to meet their demands , then ask them who they want to go. divide and conquer.

Answer 4

Sounds like a union shop, if it is not fire those that have stopped working, in fact if they walked off they basically quit. Hire new workers. If you have a union then you have a walkout and they cannot collect unemployment. In either case stand tough and train those that want to work. TO increase you profit margin use CI, find the wasted movement and streamline, maybe you can increase output with less workers.

Answer 5

Explain the situation to the workers = if they refuse to go back to work, and refuse to accept lower wages, then soon there will be no work for anyone.

Answer 6

The moral of this story is...if you are honest and decent with your staff in the first place...they won't have to go into dispute with you because they will know they can trust you and work with you. Play games with them...and you deserve everything you don't get!!!!!!

Answer 7

Easy!
Make everyone a stakeholder!
put them on a piecerate. The more you make the more I pay you.
Tell them if you loose business then everyone will loose!
Make everyone feel part of the company.