NO. 25: JINDAL IRON AND STEEL COMPANY

A sense of ownership


1Despite having 1,000-plus workers, Jindal Iron and Steel (Jisco) hasn't had a workers union in the last three decades. At its two factories in Maharashtra, workers have not struck work for even a single day. In the past two years, the steel industry has been through a downturn, and salary increments at Jisco have been niggardly. Yet Jindal employees have rated their organisation as a great place to work. Why?

The answer lies in the manner the steel-maker engages its employees - on the job and off it as well. Shop floor employees don't get to hear of the new product after R&D has finished the product development. Workers are encouraged to chip in even during trial production. Then employees are trained to think commercially through communication. "What happens if you save 1gm of zinc coating while galvanising sheets or what are the benefits of negotiating long-term freight rates and sticking to delivery deadlines?" In each case, cost savings are shared with employees. The company even allotted shares directly to its employees in 1999 and in 2003. Says joint managing director and CEO Raman Madhok: "Jisco has built a high degree of ownership and pride among employees."

Shop floor workers are routinely moved and trained for different jobs. When they switch roles, the company foots the bill for retraining. Employees can get a Rs 10,000 allowance once in two years to pay for tuition fees. Madhok feels this increased awareness has helped increase shop floor productivity per worker from 300 tonnes in 2000 to 575 tonnes in 2003.

Also, Jisco has a 'chief josh officer', who organises games and painting competitions in the residential colonies with the plants. Madhok, who earlier headed HR, says: "We want to keep our employees engaged in productive work - at work or otherwise."

Opening Essay
Column: Bob Levering
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No.24: Anand Group
No.25: Jindal Iron & Steel Company
By Invitation: Rick Guzzo
Interview: Wayne Brockbank
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