Telhost Inc., a US company, acquired Aquil Steel Ltd, a public sector steel manufacturing company, in India, with its headquarters in Kolkota. The company employed 16000 employees in its two plants in Ranchi; and 150 employees were employed in its head office in Kolkota. In the basement of the head office there is a canteen, run by a contractor, which has a 50 per cent subsidy paid by the management. The present contractor was appointed just one year before and his contract was due for renewal. The canteen staff numbering 10 are also contract workers but have been unionized for the last five years as members of the main union of the head office employees. The head office core staff consists of 59 senior and junior managers and 91 clerical and support staff employees. Six of the key managerial positions are being held by the Americans including that of Director-HR. Traditionally, all the staff members were allowed a 15-minutes break in the morning and afternoon: coffee, tea and a wide range of light refreshments are on sale in the canteen, which is very popular, from 10.00 to 11.15 a.m. and from 3.00 to 4.15 a.m. on all working days. But the staff spends much more time in this period; the practice has been going on since long. In fact, two of the peons are facing disciplinary action for misusing the tea-break time regularly and enquiry is going on against them for this misconduct. When the manager concerned had earlier objected to the practice, the former union secretary grossly misbehaved with him and was dismissed by the management two years ago. His dismissal case was pending before the labour court in Kolkota. The workers in the head office were not happy job wise as they complained that their managers were indifferent to their grievances and problems. Therefore, unionmanagement relations were not good. The new managing director of the US Company has a huge agenda of changing the work culture so as to make the company cost effective and perform better in a situation of tough competition. Eventually, it wants to make it close to international standard. In furtherance of this agenda, he has a number of efficiency issues to tackle. Mostly, they related to the sluggishness caused by the public sector syndrome that has operated in the company for so long resulting in union militancy as well. He would like to see the union weakened or smashed so that the company could be made more flexible. He wants to start it with the canteen, and has decided to do away with the traditional tea break, and install two sets of vending machines on each floor. The HR-Director has invited the union representing to "talk it over." The same union leaders represent the interest of the contract staff also.

Questions:

1. How will you argue the management's case before the union for this change keeping in view the issue of industrial peace, workers' morale and other needs.