Reconciliation and settlement in the anti-privatization strike: a case study of power supply sector in Maharashtra, India

Abstract

Purpose This paper aims to study the motives that led to conflict between two groups – Employees of state-owned power distribution companies and the Government – over permitting parallel licensing to a private company for power distribution services in selected areas of the Maharashtra state in India. The study also seeks to comprehend the reconciliation process and the role of leadership in thwarting the strike that could have impacted common citizens. Design/methodology/approach The research is built on a case-based approach to analyze the pre- and poststrike environment along with the impact of the power shortage during the few hours of the strike. A semi-structured interview method wherein government and employee union representatives were interviewed to understand their version of the incident is used. Related literature, reports and news were reviewed to realize the impacts and consequences of similar situations in the past. Findings The strike was called off within a few hours with the intervention of state government to resolve the issue, promising the union the government’s intention not to privatize but to invest INR 500bn in the three government companies. The parallel licensing may impact government-owned power distribution companies as well as customers in the future. Practical implications It will pave the way for lessons related to such incidence where the Government and the Unions are at loggerheads over issues like privatization or ownership of the company and help the involved and other parties to seek a viable solution. The role of resilient leadership demonstrated by both parties led to a win-win solution within a few hours of the strike. Originality/value The paper is a case study on an issue that is very contemporary; the role of leadership and its swiftness in decision-making that led to a solution to a very complex situation is something that was not done earlier in the context of the State vs Union issue.