Closure of manufacturing unit due to loss and adverse market conditions. - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Narayan2802
Hr Manager
+1 Other

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What is the procedure to close a unionised manufacturing unit having 95 workmen? we have to close to avoid further loss and focus on outsourcing.
Dear Narayan,
Sorry to state that the hidden agenda revealed through your statement is not closure of the unit but only outsourcing that too to wipe out the union. What is the guarantee that the outsourced labour would not get unionised eventually? Don't you remember black episodes like Thanesar? It would be better to have some introspection into the problem and find out positive solutions.

Dear Nayaran,
If the Organization is in to losses & the management decided to close you need to follow the procedure but need to clear all the dues and pay compensation but if you want to clear all the regular employees and planning to run with the outsourced manpower then you are purchasing trouble instead of peace.
If the management wants to close due to the problems facing with the manpower then you need to work out a win-win situation because nobody will be ready to loose their lively hood. Obtain some body's help, resolve the issue and continue.
I agree with Mr.Umakanthan's opinion. By doing this you may be doubling your trouble ie., issue with the existing employees & also with the outsourced employees.
Thanks
Kamesh

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