prashant1314 Started The Discussion:
Dear Respected Seniors, Very Good Morning..... Can you please explain me the procedure of Wage Agreement with trade union / workers. What is been expected from HR in this Process???
Posted 19th March 2010 From India, Pune
Dear Mr Prashant First, let us understand, how many recognised trade unions are there. The modus operendi would be different, if it is one and more. Regards vsure
Posted 19th March 2010 From India, Hyderabad
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
Posted 19th March 2010 From India, New Delhi
Attached Files
Shared By Cite.Community Member "Hiten Parekh" For Public Download
File Type: pdf Industrial%20Disputes%20Act,%201947.pdf (9.74 MB, 4547 views)
If you do not have Trade Unions, whether you have Works Committee? Describe your organisation for better understading of other members so as to provide you assistance.
Posted 19th March 2010 From India, New Delhi
We are a Manufacturing Industry - Plastic Moulding - MIDC Pune., No Work Committee so far... Permanenent Workers - 60 Staff - 45 Casual Labours - 100 - 120 per day
Posted 19th March 2010 From India, Pune
Dear Mr. Parekh, I could not find the section 2 ( p ) as per ID act will you please provide me the same???
Posted 19th March 2010 From India, Pune
Hi Prasanth
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.
Procedure :
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
Posted 20th March 2010 From India, Hyderabad
Dear Collegues, I thanks the team for raising such important topic at this platform & providing such useful information for the same. thanks & regards Deepak Jain
Posted 20th March 2010 From India, Gurgaon
Thanks Mr.Vadlamani SR for your informative response!!!! Can you please provide me any sample wage agreement if you have any...????
Posted 20th March 2010 From India, Pune
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.


Posted 20th March 2010 From India, Delhi
Couldnt you search Section 2 (p) in the attachment I have provided? Its PDF file... use search / find option.
Posted 20th March 2010 From India, New Delhi
Dear Prashant enclosing a draft of agreement for your perusal.
Posted 21st March 2010 From India, Delhi
Attached Files
Shared By Cite.Community Member "Arpit2003" For Public Download
File Type: pdf draft wage agreement.pdf (173.8 KB, 1555 views)
Dear Mr.Vadlamani SR

Thank u very much for your information which is also useful for me too since now we are in the process of LTS which is pending since 2009.

Also kindly forward any wage agreement copy you have, thro my mail address

b.saravanakumar, trichy, tamilnadu
Posted 22nd March 2010 From India, Coimbatore
Dear All, I have some requirement in my company if any one is in need or want a change please post ur CV. Vaccancy - Marketing Exec. For Pune,Nashik,Goa,Kolhapur,Hingoli Receiptionist for Mumbai.
Posted 24th March 2010 From India, Mumbai
Can i know how the calculations of the increments in wages regarding the wage settlements take place? plz its urgent. thank you.
Posted 20th May 2010 From India, Mumbai
Seniors sir,
Having 18+ yrs experience in the capacity of Manager/Head HR in Mft. industries. Retired.
trying for suitable position dis-separeted since one year. help me /guide the way to approach companies for further openings in the same position or Sr.position.
kucheludu Gaddam
hoping immediate guidelines
Posted 26th July 2011 From India, Hyderabad
Dear Respected Seniors,

Very Good Morning.....

Can you please explain me the procedure of Wage Agreement with trade union / workers.

What is been expected from HR in this Process???
Best Regards,

Ashish Soni
Posted 15th September 2011 From India, Palampur
Hi Ashish,

Expectation from HR

1. Understand figures of Wage settlement around vicinity of Company.
2. Minimum Expectation of Union to reach settlement.
3. Note minutes of each meeting & signed off the same.
4. First discuss & agree business needs ( PQCDM ) & then go for financial aspect.
5. Don't compare with other industry, as the profit margine, RM cost, Labour cost may be different.
6. Once COD from Unions & Management Expectations are amicably settled, prepare draft in Form H.
7. Get the vetted through Advocate / Legal Department.
8. Verify the figures, arrears, Distribution pattern, targets etc.
9. Sign the settlement.

Kindly understand sec 2(p), 18(1), 18(3), 12 of ID Act, with state laws for binding effect.

Do let me know if you need any further clarification.


Rahul Bagale
9823 333366
Posted 16th September 2011 From Korea
Dear Mr.Prashant,
I am adding some valuable inf. regarding to expections of mangement from union in agreement.
I hope it add ur knowledge.

*Expectation of Management from Union in Agreement *

1) The Union members must agree that they shall fully co-operate in all the endeavors of the plant management team in the

improvement in the areas of productivity etc.

2) The Union members must agree that they shall follow the constitutional method for resolution of any dispute and shall

not resort to any agitation including work stoppage, work refusal, go-slow, and work to rule etc.which will affect the

production / material movement.

3) All the workmen at all time shall keep their work area clean and in hygiene conditions.

4) All the workmen shall undergo the medical examination as and when organized by the company. Being a unit of

manufacturing items for human consumption this will be mandatory on us as per the state / guidelines of the State /

Central Government.

5) They shall also use safety equipments which are required in the specific area in the manufacturing department .Non use

of safety equipments or bypassing any safety related instructions would be liable for the disciplinary actions.

6) All the workmen without exception including the union members assured the management representative that they shall

perform their duties diligently & shall not while away the working time for any reason whatsoever.

7) Benefits under this settlement shall not accrue & shall not be payable to the workmen who has resigned form services of

the company or who has been discharged dismissed or terminated from the services of the company.

8) The workmen will be responsible for maintenance of the plant and machinery / equipment they are working on. They will

take care of the day to day routine maintenance and also help the maintenance team in the major break down /

Overhauling work plans.

9) The Union members must agree that this settlement is in full & final of all the demands raised by the union in its charter

of demands or otherwise. The demands which are not specifically mentioned in this settlement are treated as negotiated

& withdrawn.

10) The Union members must agree that they shall not raise any demands of finical nature directly or indirectly during the

tenure of operation of this settlement & thereafter until this settlement is validly terminated.

11) The Union members must agree that shall maintain a clean personal hygiene. To facilitates the same the company

expects that they will adhere to all norms and instructions given by the supervisors from time to time in this regards.

12) The union members must agree that they shall participate in work & carry out the improvement in all the area including

quality of the products. The union members shall co-operative with the management in all such efforts of the unit.

13) The Union members must participate to improve & maintain the competitive status which is necessary for the plant.
Posted 17th September 2011 From India
Dear All,

As per ID Act , We are Doing Wage agreement with our employees either 8(1) or 12(3). Our general practices we putting LTS for max the period of 3 yrs. Is there any chance to do for Max 5 yrs.

I think there is no clause or section for settlement period of time limit.

Can you please share your views.

Posted 27th December 2012 From India, Bangalore
Dear Mr.Prashant, I am the HR / IR Consultant in Pune. Pl feel free to contact me on 8390519805. Ulhas Chandratre HRM Consultants, Pune
Posted 26th March 2013 From India, Pune


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