(LTS=Long Term Settlement; Date, year, data, place, industry and year changed for anonymity) We will have 3 parts: 1/3, 2/3 and 3/3. Part-1 (this posting) is Enigma: Cash Neutral 1/3; (we will number it, 1/3) with facts and figures. Part-2 (to be done in 2 weeks) is response/participation from those who read; with an objective to democratise your skills and competencies coupled with knowledge, in a Case Study format; let's call it, Enigma: Cash Neutral 2/3 (for the first time, we elicit you to participate/response to in an article/post! Part-3 After 2 weeks, what was actually done will be published, as Enigma: Cash Neutral 2/3, say, on 1st July 2021!

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The process plant operates 24*7*365. Company also massively invested modernising the plants to state-of-the-art-plant over a decade (1980s-1990s). He gave 'functional autonomy' and 'freedom at work'; enabling HR professionals to practise innovation. Company has manufacturing facility, R & D centre, sales & marketing & service facility. Factories is located 20 kilo metres away from a tier-1 city in Kerala state, India. As you may be aware, the socio-economic-political inter-twining made multi and militant trade unionsm, the main reason for industrial turbulence of the 1960s through 1980s/1990s.

CEO is an Engineer. He offered 'functional autonomy' and 'functional freedom' to HR Function. Around the same time, Management hired ex-PSU executives to man all the Functions. The author practised: HR, a Line Function and Line Responsibility. as opposed to theory (Edwin Flippo: HR is a 'Line Function and Staff Responsibility). HR was in the process of 'new culture' being crafted integrating all changes, transformations, mechanisations and automations carried out, in the last one decade+. Organisation culture was getting re-designed from 'command-and-control' to one of 'ownership-and-empowerment' at all levels, ushering in an era of 'functional autonomy' and 'freedom at work' across functions across levels. HR was mandated to go for competency-based [behavior-based HR systems and processes]. From change transformation started happening. Two 'recognised' trade unions with 20% as signatories to Long Term Settlements (LTSs) and 2 registered unions; have external leaders as President.

Company had chequered industrial relations history in the first 25 years (lost 58 months due to strikes, lock outs, lay offs, bandhs, hartals, go-slows, work-to-rule and 'undeclared strikes' during the first 25 years; whereas the next 25 years is Zero loss of mandays).

Three Long Term Settlements (LTSs) entered into with trade unions as tripartite with Zero loss of mandays. Year is, say, 1999. Fourth ( LTS) was to take place in the next 12 months; CEO had two mandates to HR: one internal and another, external. Internal was 'Cash Neutral' (HR did not understand the syntax and metaphor of this term). Do you? External had 5 components: Sharing gains of productivity, Removal of 'Restrictive work practices' & providing functional flexibility in operations, Optimum realisation from resources in operations, all leading to Productivity-based LTS with Zero mandays lost!

Team HR is professionally of high-calibre, from leading B-Schools with depth and breadth 'experience' and 'exposures' with rich diversity of skills, competencies, industry verticals, experience & exposure. Team HR's usual drill (on-going & done every month: a 360 degree scan of ecosystem), as prelude to LTS:

• Paper-pencil notes & innovative trends & solutions
• Industry wage surveys (inter-industry and inter-region study)
• Non-participant observation tools
• MBWA (Management By Walk Around) inputs
• Interactions/no-agenda dialogue with shopfloor employees
• Brainstorming & interactions strategy maps
• Table Top exercises with Line/Frontline Managers
• Inter-industry & inter-region comparative data etc
• Communication as a tool and transparency as a way of life

Annual wage bill of that year, say, 1999 of 275 workmen (22% of 18-25 years, 8% 25-35 years, 39% 35-45 years, 13% 45-50 years & 18% 50-58 years) was, say, Rs. 620 crores. 'Cash Neutral' is this year's LTS; a new mandate from CEO (first time Team HR is hearing this term). Tenure of LTS is 4 years. [Additional information: During the previous LTSs, due to successive plant modernisation spread across a decade+, employing the state-of-the-art-technology-plants; DCS and PLCs across 4 plants and other auxilliaries etc., digitally connected thro WAN and LAN across plants and across all functions, operation and as well as sustenance of roll-out of TQM, TPM, ISO and other HR Initiatives/Interventions, over the last 12 years, and due to the 'consensus'-ed 'right-sized' crew strength in each LTS, number at 401 to 375 in one LTS (complement reduced by 26), from 375 to 325 (50) in the LTS that followed, and from 325 to 291 (24) in the last LTS).

Some other issues in this 'Case Study' issues to be considered:

1. What is "Cash Neutral"? How do we achieve this fete, in a strong, mature and multi-unionised ecosystem in Kerala
2. From 291, what could be the workmen number when LTS is signed; right-sized 'consensus number/complement to run a 3-shift (24*7*365 plant)
3. Tentative plan for "productivity-based" savings of men (business operations)

Under the circumstances, Team HR is lurched-to-orphaned situation. None in Team HR seemed to be an expert to appreciate the term 'Cash neutral'.