Human Right Violation: The Dark Side of the Mercedes-Benz.

BRSR  (SEBI)  AUDIT -ESG Audit : HR Practice - Human Right Violation  

* Birendra K Jha                                                                                                                                                                              Certified Social Auditor; Practitioner Social Impact Assessment Audit; Practitioner BRSR (SEBI ) Audit- ESG Audit. EMail: birendrajha03@yahoo.com

The Mercedes-Benz India CEO is blaming on Chakan ( Pune ) Traffic as the main cause of disturbing the employees' work life balance. This is partial true. The correct side is that the employees' work life balance has disturbed in this company  at global level due to poor HR Practice and violation of Human Right.    

Mercedes-Benz in India has rebranded "Human Resource" department to "Human Relation". Mercedes-Benz thinks such re-branding shall create loyal employees filled with emotional intelligence. This may appear attractive to those, who dreams culture development without developing the base. Change of stable do not convert ass to horse. The Mercedes-Benz has seen  only the tip of the ice-burg. The remaining glacier is hidden under water. This is unseen HR Culture. That has damaged Mercedes-Benz. This is respect towards "Labour Law, "Employees",  and Human Right protection. This is in poor condition. "Good Human Resource" element, brings radical change.  This change is necessary in precision engineering environment where small errors can cascade into major problems. 

Labour Law violation breaks the employees trust. Before landing to India the Mercedes-Benz had earned a bad reputation on HR Practice with series of Labour Law violation in United States and Brazil. So idea of "Human Resource" rebranding  to "Human Relation"  shall not change unless Mercedes-Benz sheds the poor HR Practice. In United States and Brazil the company has involved in wrongful termination, harassment to employees involved with trade union, failure on wage payment issues and many other poor HR Practice issues.  

At the global level The Mercedes-Benz Employees are demanding "Right For Good Jobs". Demonstration at US. 

India Case: 

Mercedes-Benz when landed In India. Adopted the same trick. How it can gain confidence of employees in such poor environment. There is a  case of Human Right violation in Mercedes-Benz. Noshir N Desai was employed in  Mercedes Benz India Pvt. Ltd (Mercedes-Benz) during the period 1996 to 2004. Mercedes-Benz decided to post Noshir N Desai  on foreign assignment with its group company Daimler AG in Germany. Accordingly, a Contract of Appointment was executed between Mercedes-Benz and Mr. Desai. Mr. Desai continued to work in terms of the said agreement.  

After retirement from Daimler AG in Germany. Mr Desai claimed gratuity  benefit from Mercedes-Benz. The  gratuity payment for the year what Desai served at Daimler AG in Germany was  refused.  This was violation of Labour Law and issues attracting Human Right. The  HR of Mercedes-Benz failed to apply mind that "No Break in Service" is permitted under the labour law when there is agreed transfer from one organization to other organization.  The HR further failed to apply mind   that such transfers, when managed under the aegis of the same management, then it should not be considered as a break in service. Therefore, the period of service in both companies should be combined for the purpose of calculating gratuity.

Conclusion: 

1. Mercedes-Benz  first ceased illegaly the Gratuity amount.  

2. The Bombay High Court in the case of Mercedes Benz India Private Limited v. Noshir Nadir Desai struck down the Mercedes-Benz illegal act.

3. Mr Desai received full payment after the intervention of Hon'ble Mumbai High Court. 

Learning Points:

1. Mercedes-Benz should develop first Best HR Practices. This practice comes from labour law respect and respect towards the Human Right protection. Then only you can create a culture of trust with the employees. Otherwise in such poor culture employees shall create more human error. This is dangerous for the automobile industries. Human error can create hazard on product safety.

2. This needs regular Audit Assessment of HR Practice & Human Right. To keep away any risk associated with HR or Human Right. In SEBI listed entity this is now mandatory law, to get the Assessment of Human Right done through Third Party Audit.