Productivity agreements are a means to link:
It is an instrument to make needs of Management & Employees meet.
Introduced first in ESSO’s Fawley Refinery, UK, in early 60s, it resulted in over 40% increase in productivity, substantial improvement in pay packet and shared, in the long run the management could gain in respect of:
On the other hand, employees will stand to gain in terms of:
Productivity Agreements aim to bind management and employees together as one entity and make productivity drive down-to-earth and a participative common cause.
In India, Productivity Agreements are prevalent in various names in organisations such as Wimco, Larson & Toubro, Briannia, Siemens, Balaj Auto, etc. Each of them covers less or more aspects of productivity depending on immediate and pressing needs in their respective organisations.
As the needs get fulfilled and productivity level matures, more aspects can be expected to be incorporated, so as to make them more comprehensive, A Productivity Agreements are open ended. There is no such thing as a perfectly comprehensive one.
The issues productivity bargain and agreements are heavily dependent upon the environment, which consist mainly of :-
The following can be among the issues bargained about