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Resp. Sir.

I am working as Manager HR in Ltd, company. My query is that, we have 2 unions registered under TU Act. Out of one is Recognized Union but the majority of workers are the members of second/ non-recognized union. Our settlement is due since last year, as the company is incurring heavy losses the management is not in position to take additional financial burden by way of new settlement (the management is not opt for declaration of Sick Industry). Therefore, the management is not interested for negotiation of new settlement. However, the recognized union has filed complaint before Asst. Labour Commissioner (ACL)for conciliation to have amicable settlement.

The management is of opinion that, considering heavy losses we have to carry the same settlement for another 1 year. Let the authority may give failure report & let the union may go for reference in Industrial Court for new wage settlement, where the management can prove cumulative losses of years together.

Under the circumstances, what are the legal consequences if the management takes steps as mentioned above or any other way to avoid legal complications.

Thanks & Regards.

Shaikh. Ijaj.

Manager HR.
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Let us first list down points of disputes as below.
1. Now recognized union is not having majority.
2. Whether company can extend the existing settlement for another term based on financial losses ?
3. The Management not ready to declare the company as Sick unit.
4. Whether any steps to be taken on the management side based on the above.
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