LONG TERM WAGE AGREEMENT

Resp. Legal/IR experts


I


Is it necessary to go for long term (3yr.) wage agreement with union/opinion leaders.

Also please guide me raegarding the clause of the relevant act that permits us to go for that.

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II


In an orgn. where there is no registered union, and relation between mgmt. & workers is very much coordial

In this environment ,suppose both the parties enters into an agreement for mutual interest. Is it necessary to register the agreement with DLC when there is no registered union in the orgn.

In due course of time suppose any of the party denied to obey the terms and condition of the said agreement, who will solve the dispute will it be braught to the DLC.


Kindly guide ,


JITEN

Kindly reply.


JITEN

It is always better to register whatever agreement is reached between the Management and the workers,so that both the perties are bound by the agreement. Even in a non-unionised environment also But it is not mandatory.

Resp. Sharath


Thanks for reply for the 2nd Qu.


Seniors please guide on 1st Qu. also



JITEN

Dear Friend,
Pls read Sec 2 of the ID Act.It gives in detail the types of settlements one can agree upon.
Whether we should do 3 yrs settlement or more depends upon the Bargaining power of Mgt & Union. I have done a settlement for 4 years with the union because it gave my company enough time to carry on its business smoothly without any industrial disputes for 4 years.Long term settlements ensure that your business goals are achieved over a period of time.Secondly whenever you make settlement remember that you should be able to recover the cost of settlement over a period of time.Whatever money you have invested in increase in wages should get recovered in 2years time because it is an investment in labour.This money can recovered by implementing productivity norms which help in increased production,etc.
I hope you would have understood the logic .

Regards,
Ashish.

Is it necessary to go for long term (3yr.) wage agreement with union/opinion leaders.

Also please guide me raegarding the clause of the relevant act that permits us to go for that.

-------------------------------------------------

II


In an orgn. where there is no registered union, and relation between mgmt. & workers is very much coordial

In this environment ,suppose both the parties enters into an agreement for mutual interest. Is it necessary to register the agreement with DLC when there is no registered union in the orgn.

In due course of time suppose any of the party denied to obey the terms and condition of the said agreement, who will solve the dispute will it be braught to the DLC.


Kindly guide ,


JITEN

Kindly reply.


JITEN[/quote]