Under ID act, there are settlements defined. Please go through Section 2 (p) of the ID Act.
Noramally steps are:
1 - Submission of COD (Charter of Demand) by Union
2 - Negotiations between Mgt Representatives and Union Rep
3 - Reference to conciliation officer (not required if settlement is arrived)
4 - Conciliation procedure
5 - Settlement
6 - Registration of settlement
Regarding your querry as mentioned by you that you do not have any trade union/s
The question of wage settlement does not arise. However now you can make a policy for wage settlement in long run intrest of the organisation.
Wage settlement period duration & implementation should be clearly mentioned. (Minimum settlement period should be once in 5 years)
For any wage settlement first take the charter of demends from a recognised union
Study and analyse the charter of demands and workout incidence in 2 ways. 1. Economical 2. Non-Economical
Prepare counter demands by management and submit to union as below:
1. Settlement shall apply to all the confirmed workmen as on the date of signing of the settlement.
2. Management may introduce new or improved methods of production
3. To observe 48 hours per week
4. It is the responsibility of each workman to keep his place of work clean and maintain his machine in good conditon
5. The union and workman should recognise that company may deploy their manpower depends on business exigencies.
6. Excepting Basic and DA none of the allownces whether monthly paid or otherwise shall be deemed to be a wage for the purpose of overtime, paid holidays working, PF, gratuity/supernuation.
7. The union and workman should co.operate in achieving maximum productivity to maintain harmonious industrial relations.
8. The management will exercise to rationalise the existing manpower at their discretion for buisness development
9. The union and workman should give active support in compliance of safety norms
10. The union shall extend whole hearted co.operation and strive for achieving:
a) In creating healthy harmonious industrial relations
b) in maintaining high standards of discipline
c) in time keeping and punctuality
d) in achieving high operational standards
e) in achieving high efficiency and quality
f) in achieving higher productivity and meeting production and sales target.
11. The union and employees further agree that they shall not either individually or collectively raise, pursue or agitate any demand involving any additional financial or any other implications/commitment/burden on the company during currency of this settlement
Similarly you can mention n number of clauses from management and submit to union before negotiating.
For any wage settlement it is always better to conclude the settlement emicably at the earliest instead of prolong the discussions and payment of arrears.
Also it is better to negotiate in a package deal (lumpsum) instead of pointwise discussion and left the choice to union for distributing the amounts in various allowances (except Basic & DA)
Finally if yo have Dearness Allowance formula it is better not to agree for 100% DA neutralisation while making payscale structure. That will have an recurring incidence to the employers.
Hope the above is clear
Tks & Regards
Dear Mr. Prashant
For signing of any agreement there has to be atleast two parties. In the process of Wage revision agreement you should have representatives of workmen (5-7) authorised by the management as a sole bargaining agent, who will also take responsibility to convince the workmen on the clauses of agreement.
Kudos to Mr. Parekh for explaining the cycle of wage agreement. I would like to add a process of wage survey in the near by industries engaged in manufacturing of similar product.
Mr. Vadlamani has also explained the management demand in details.
Form a works committee, Understand the genuine need of your workmen, make them understand managements requirement from the wage revision and amicably come to consescus of signing settlement.
Wishing you all the best for your endeavor.
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