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
20th March 2010 From India, Hyderabad