ELGi Equipments: Revolutionizing Industrial Relations Through a Win-Win StrategyDebolina Dutta, Biju Varkkey
The case study discusses ELGi Equipments Limited, a compressor manufacturing company based in Coimbatore, India, and its innovative approach to maintaining Industrial Relations (IR)/ Employment Relations (ER) and workforce development. The case showcases how ELGi incorporated employees’ aspirations into its Human Resource Management (HRM)/IR policies and practices.
ELGi transformed from a small family-run manufacturer of compressors and pumps to a global player through multiple initiatives based on improving the quality of their product and the productivity of their workforce over two decades. They adopted an innovative approach to improve their blue-collar workforce’s lifestyle and income levels, linked to worker upskilling, increasing job autonomy, and a radical approach to wage agreement.
A novel approach to sustainable talent acquisition and workforce development ensures that a steady pipeline of culturally well-indoctrinated talent is available to the firm. In an environment where unions mediated blue-collar relationships with the management, ELGi’s model was radical but proved more effective in developing a win-win approach to Industrial Relationship Management.
The key topics covered in this case study include understanding the outcomes of HRM practices in strengthening IR, establishing strategic pay plans through collective bargaining in a non-unionized environment, training, learning and development, and talent acquisition and retention.