The labour commission of Karnataka, has certified the formation of the Karnataka State IT/ITES Employees Union (KITU) under the Trade Union Act, 1926, and Karnataka Trade Unions Regulations, 1958.
With a lot of tech companies reducing man power for various reasons - such measures may seem like a healthy move for the employees but what does it do to the moral of business? Perhaps in this new age there should be new rules for how these unions function and what measures are available to them. With automation we are going to see more and more companies layoff people - do you think a union can make businesses re-think their strategy or is it merely a measure to gather exit settlements? Excerpts Industry sees red as Karnataka gives green signal to IT union | Business Line
Industry watchers believe that this move by the government of encouraging unions will not solve the problem of job loss. “In an industry where 15 per cent average annual attrition exists, why is this needed. In fact, it will hurt job creation as companies will think twice about the inspector overhang,” said Pai.
Vineeth Vakil, General Secretary of KITU, pointed out that it is a fundamental right of an individual to form or be a part of the union and reiterated that they were not against development. “It serves as backbone of collective bargaining, strives to secure for a fair, reasonable and safe work conditions,” he said. Currently, KITU has around 250 members and is planning to enrol 3,000 members in the next three months.
Krishnakumar Natarajan, Executive Chairman, Mindtree said that this will have no impact on the industry.
From India, Gurgaon
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