Thread Started by #Catapro

A. Replacement of striking workers in US :
In the U.S., as established in the National Labor Relations Act there is a legally protected right for private sector employees to strike to gain better wages, benefits, or working conditions and they cannot be fired.
Striking for economic reasons (i.e., protesting workplace conditions or supporting a union's bargaining demands) allows an employer to hire permanent replacements. The replacement worker can continue in the job and then the striking worker must wait for a vacancy.
But if the strike is due to unfair labor practices (ULP), the strikers replaced can demand immediate reinstatement when the strike ends.
Does same law exists in India?
B. Is replacement of striking workers allowed in India?
We have on going strike by union workers who 2-3 times wages than minimum wages. Company is decided not to accept there demand for further increase till market uncertainty is over in our product line and certain stable turnover is achieved.
Hence, we have hired new permanent employee and running the plant smoothly. Is there any restrictions on hiring replacement workers (as it is claimed by union)?
C. Is it compulsory to give employment to striking workers if there is no vacancy?
Now as and when striking workers ends the strike, we shall have double manpower. In this situation, we need to remove newly appointed employees (who have already completed 6 months) or ask striking workers to wait till further vacancies are there.
Which is legally correct strategy?
14th October 2018 From India, Nashik
Indian laws is not not so explicit to cover all types of strikes. There are different rules for govt. & quasi-govt. establishments and public utilities. There are sectors to which the Trade Union Act is applicable. Govt./industries in the essential services like aviation, railways, postage, communication, road transports, electricity & water, milk and other essential commodities supplies etc have statutory guard under the Essential Services acts enacted by central & state govts. In respect of these establishments courts may pass orders making the strikes illegal and thus the employees involved face disciplinary under the respective rules. There are only a few instances wherein striking workers were removed for having taken part in the strike/absenting from work. In most of the cases strike days are treated as absent days and no wages are paid. At the same time there are also instances where striking workers though removed but taken back/reinstated with back wages/without a break. Most of the strikes are demanding better wages, amenities, bonus etc. In all these cases verdict of the courts shall rule.
15th October 2018 From India, Bangalore
Thanks for your inputs.
But question is if strike is for increasing wages (already our wages of striking workers are in range of Rs.25000 to 35000 per month) which company can not afford, what choice a management has?
1. Close the company since workers are on strike.
2. Run the company by employing new employees, if available at lower cost, in place of striking employees.
If we choose to run factory with new employees, they shall become permanent after statutory period of employment with us. If strike is withdrawn by striking workers, how can we keep both workers? If we dismiss new workers, they can go to court for justice.
Please understand the situation well and advise.
15th October 2018 From India, Nashik
1. It appears to me your query is an outcome of a negative approach. I couldn’t guess what drives your workers to go on strike. Have they issued any strike notice? If so was any wage negotiation initiated by you and did it fail? Why you think of an extreme decision like closure ? If you have not initiated any negotiation so far and a revision is due now you should as well commence. A wage revision is a matter which has a direct bearing on the Co’s financial condition for the present and how best the co. could sustain the resultant recurring expenditure in the future. I think if your Co. has no resources to implement a reasonable revision, you should try to explain the difficulties to agree to a substantial revision and try to convince them. You may also avail the help of experts or a conciliation officer. Coming to worse you should agree for a Proforma revision, a token revision which may not cripple the operation. Believe, you can run the Co. without a revision, it is possible and strikes could be overcome with tactical move/decisions. And strongly advocate, spare them their jobs. I also hope employees would realise the situation and extend cooperation not only to run but also to improve your bottom line.
2. I don’t think you should try ever to employee any one new by removing older ones. Legally it’s almost impossible keeping the very same entity going, unless and until you close the existing ones and fully settle them. Closure is possible only under satisfying certain legal conditions.
3. If your existing employees would have faith in your frankness and your figs tell the truth who knows they as well extend cooperation to get over your problems.
4. When you said ‘if strike is withdrawn’ … do you really believe there is such a possibility, then why do you mulling with closure option. There are so many entities running without even granting normal/annual increments leave alone a periodical wage revision. It’s possible to run an entity without agreeing to wage revision to existing employees.
5. Interference of appropriate conciliation process and court role cannot be ruled out under any condition/at any time.
16th October 2018 From India, Bangalore
Answers to your queries are :
1. Union has given strike notice and is legally on strike
2. We have started negotiation before union declared strike and continuing weekly meetings infront of lsbour commissioner with both parties sticking to their stand
3. Workers are uneducated and are from farmer families in surrounding villages. They are guided by union leaders and local politicians.
4. They could continue strike since they have side incomes from family farms and side business which makes their families survive without wages from employment. Many of them have taken other low paying temporary jobs. Many of them want to return to work but mob & local pressure and threats from union not allowing them to do so.
5. If we don't recruit new employees, only option is to stop production.
6. Although Union leaders understand our position, workers themselves are adamant and undertaken to violence and not allowing non-striking older and new employees to attend duty.
7. Police is cautious with our complaints due to local political pressure.
8. Workers don't care police cases due to their local clout.
9. Workers are as good as blackmailing with a belief that we cannot runaway since we have already invested in plant.
10. They genuinely believe that annual rise is their legal right even though we can not afford with current market conditions and we don't have option but to agree as we had always agreed during last 32 years of our existence. But many employees are just 6 year old in our company and donot have family responsibilities yet.
11. For your information average CTC of new and old employees is Rs.22500/MTH
12. Strike shall be withdrawn if we negotiate and agree to their demands. But in that case we shall have as good as 2 sets of employees... Newly recruited during strike period (become permanent by virtue of service period) and old employees.
I was surfing through internet and came across following links
https://corporate.findlaw.com/law-li...realities.html
https://www.bipc.com/permanent-repla...at-will-status
These links are about US legal options wherein company can hire replacement workers, if available at lower wages, to continue production in case of strike by existing workers. On withdrawal of strike, striking workers have to wait for employment till further vacancies are created.
I find no such provision in Indian law. In this case, employer can literally blackmailed by unions.
We are confused about our legal options. Shall appreciate your advise Sir.
16th October 2018 From India, Nashik
Sorry, I just now could realise the situation you are in. This type of nitty-gritty situation not new to Indian conditions. I understood the problems as we ourselves faced in a project which was located in a remote village employing majority locals. We had to undergo legal issues for more than 10 yrs before we finally closed this project under Sec.25(O) ID Act with the support of BIFR/SICA both of which have been replaced/subsumed into a new set of Act/Tribunal now.
Coming to your scenario, Is't your firm a 'sick' unit/potential 'sick' Co. as of now? Or you suffer only for want of Cash/Current assets to meet additional burden due to impending/impugned wage revision?
Are you beset with supply commitments to your clients? Could you sustain the idling for over many years? US laws are not applicable in India and therefore you have no option.
It's all but impossible to avoid either agree to retain sizable bunch of oldies coupled with accepting new/freshers if you wish to restart the operation. I presume your plant has stopped production & is idle. It's better to settle all the old employees and go for fresh recruitment, if possible. This will in a way avoid saddling with past liability. Have you studied legal options ?, ofcourse there is no tailor-made solution to the vexed problem.
16th October 2018 From India, Bangalore
Dear Colleague,
In the present context and prevailing strike situation, examine possibility of declaring lockout by expert labour lawyer and lob it in the lap of govt labour machinery under the ID Act.
Parallally , keep channels of formal and informal communication open for possible settlement .
Regards,
Vinayak Nagarkar
HR - Consultant
16th October 2018 From India, Mumbai
We are surely not a sick unit but with high wage bill as compared to our competitors, we want to control it as a preventive measure for future since market is becoming too competitive.
We have commitments to our foreign clients and lock-out is last option we want to try.
Since we don't have legal option as US companies have, we shall be saddled with 2 sets of employees. In that case, our lawyer advise us, we shall have to retrench new employees for lack of work and pay their legal dues as 1 month notice and retrenchment allowance.
Actually all new employees are educated.... engineers or at least diploma holders as against uneducated oldies. They are more productive and resourceful. We shall prefer to retain them.
In that case our lawyer advised to declare VRS scheme to old employees but strikers are not ready to accept.
We have asked labour commissioner to issue 'failure report's and allow our case to go to labour court.
Our lawyer says labour court donot have jurisdiction to decide on wage revision since we are already paying above minimum wages and other legal dues. Further wage revision is subject to market forces..... balancing our need of the experienced labour and need of labour to continue in job.
Hence, further wage revision is left to market forces... even though we are not a sick unit and are managing to make some profits (even after large wage bill as compared to competitors... Just because of some better technologies)... so that future competitiveness is planned.
Does advise of lawyer makes sense?
In any case, Indian law needs revision so that blackmailing by workers and unions can be countered. Otherwise workers can go on strike and withdraw at their will leaving employer to their mercy and saddled with responsibilities to negotiate and settle with them any how.... The links given in my previous post are self-explanatory saying that similar situation in US has forced the Govt to amend the law few decades before allowing employer to hire replacement workers....
Your view please...
Thanks
16th October 2018 From India, Nashik
Dear friend,
In the given situation, I feel, introduce VRS immediately and see the outcome. Unless you offer an attractive package you may not get considerable optees. Legal process certainly involve a long drawn process & years and above all there's no guarantee that verdict would go in your favour.
16th October 2018 From India, Bangalore
Dear Colleague,
Your workers are on strike and with the help of replacement workers you are running your production. The plus point is the striking workmen are not threatening or preventing the replacement workers.
You have to fight this mainly on two fronts. Legally you approach labour court to get this strike declared as illegal( although prior notice is given, you contest the legality) and unjustified.
As regards the charter of demands on which negotiations have failed and conciliation also failed , let it be referred to adjudication by the Govt. Once it is referred to the Industrial Tribunal under ID Act, the strikers cannot continue with the strike and they will have to resume duties.
As per Indian laws , you cannot dispense with the services of striking workers without following due process of disciplinary action unlike US. At the most , they will lose wages if the strike is declared illegal or unjustified.
As regards replacement workers, if the strike is withdrawn/ workers resume work, they will have to be terminated if you had taken precaution to recruit them on temporary basis Otherwise also on the grounds of strikers have returned to work, you can convince them for termination.
You can continue with taking production through replacement workers as long as you can , pending court proceedings.
While apparently there is no merit in the demand of higher wages, as currently you are paying far better wages , you need keep doors of communication open for some possible solution.
Vinayak Nagarkar
HR- Consultant
16th October 2018 From India, Mumbai
Thanks for suggesting practical possibilities...
Please note that
1. Unsuceesful VRS possibility was tried once. We had offered 70% of wages (at current rate of wages) for balance service period of each worker.
We shall try it once again by improving on it. Any suggestion what generally is industry practice for attractive and successful VRS offer?
2. Striking workers are preventing non-striking and new recruits from attending duties making union and workers guilty of unfair labour practices.
3. We have already filed police complaints against few of them... Mainly instigators and leaders managing strike.... for stopping company bus, threatening employees not to attend duties, catching employing alone and threatening of dire consequences if he continues to attend duty and going home of managerial staff in big mob and asking them to not attend duties to support their strike.
We have issued show-cause notices, charge sheeted and conducted enquiries following due procedure of natural justice and few of them have already been terminated. But they believe that the mob and union support shall force us to withdraw their terminations.
4. We have asked labour commissioner to declare strike as illegal since union is guilty of unfair labour practices. But labour commissioner is following due diligence and want to avoid explosive situation. Can labour commissioner do such decision or we need to approach labour court for such a request?
5. We have requested labour commissioner to declare failure of negotiation but he is withholding the decision, may be due to pressure of the powerful union.
Now I wonder in case our dispute eventually lands in labour court, non-terminated workers have to join the duty and union shall fight for their demands in court.
Now I have few questions :
1. You said the decision of court may not go in favour. Under what circumstances this may happen? I believe court has no reason to decide against our favour unless raising living standard workers is constitutional compulsion as mentioned by earlier in previous posts. Please give me reference to this constitutional clause.
2. Can court force us to revise wages even though we are quite above minimum wages? I believe court does not have this jurisdiction and allow us to follow principle of market forces. But a lawyer says that India is socialist country and this is not the way Indian law thinks. Indian law may force us to share profits with workers, if we are making profits, by revising wages by declaring an award.
3. Can court force us to pay wages during strike period? I believe court shall follow principle of 'No work, No pay' as per our appointment letter.
I think I have too may queries above... Shall appreciate your views on suitable VRS scheme as well as possibilities of court verdict as well constitutional need to improve living standard of workers continuously even though they are much above industry standards.
Thanks
16th October 2018 From India, Nashik
It is also funny Indian situation that Unions can call ) / withdraw strikes at their whims and there is no way to punish them for unsjustfied strikes and interrupting manufacturing activity leading to huge losses and business interruption to company.
US legislation has adopted right approach by allowing to appoint replacement workers if they are available at lower wages. In that case, unjustified demands of workers is severely punished. This makes workers think twice before actually starting strike.
The employers should champion for such legislation.
16th October 2018 From India, Nashik
Pl.see the extract of observations of SC on 'wages revision matters'-
Supreme Court of India
Officers And Supervisors Of ... vs Chairman And M.D. I.D.P.L. And Ors on 24 July, 2003
Bench: M.B. Shah, Dr. Ar. Lakshmanan
CASE NO.:
Writ Petition (civil) 122 of 1998
xxxx
A Constitution Bench of this Court had examined the questions of revision of wages of workmen in Express Newspaper (Private) Ltd and Anr. v. Union of India and Ors.. AIR (1958) SC 578. This Court land down the following principles for fixation of rates of wages :-
(1) that is the fixation of rates of wages which include within its compass the fixation of scales of wages also, the capacity of the industry to pay is one of the essential circumstances to be taken into consideration except in cases of bare subsistence or minimum wage where the employer is bound to pay the same irrespective of such capacity.
(2) that the capacity of the industry to pay is to be considered on an industry-cum-region basis after taking a fair cross section of the industry, and (3) that the proper measure for gauging the capacity of the industry to pay should take into account the elasticity of demand for the product the possibility of tightening up the organization so that the industry could pay higher wages without difficulty and the possibility of increase in the efficiency of the lowest-paid workers resulting in increase in production considered in conjunction with the elasticity of demand for the product-no doubt against the ultimate background that the burden of the increased rate should be such as to drive the employer out of business."
xxx
Also attached is the Compendium of SC analysis on minimum wages & wage revision which will assist in understanding the concept of fixation & revision
16th October 2018 From India, Bangalore

Attached Files
Membership is required for download. Create An Account First
File Type: pdf SC on wages, wage revision & Industrial Disputes.pdf (1.86 MB, 19 views)

Dear friend,
As you are aware, it's not possible to predict what exactly the verdict of any court going to be in a contentious matter. The status of court notwithstanding, let it be labour court or an Appellate Tribunal or High Court or SC. It's the prerogative of the deciding authority to spell out the verdict. And if it comes after a very long drawn process, nobody is going to compensate the losses sustained since the damage is already done.
As you said "No work, No pay" concept is there but no one can take it for granted. There are instances courts awarded revision with back wages as well as reinstatement after termination also.
We don't know what is the man power and their educational levels.
In your case what could be the causes of termination, if at all you are going to think of this tool seriously. Termination en-mass with no valid reason is a danger. On selective basis ? may be possible if the existing employees not having enough skills and knowledge to suit any advanced tech./machines if and when are introduced.
Just because you wish to engage new/freshers vice of oldies just because you could save wage cost need not be a valid reason to retrench a few or all.
May be you could run the plant for some time with the help of contract labour/temporary workers. What if they also influenced to join the strike.
My earlier mail briefly explains grounds for diff.wages & revision thereof.
I afraid we cannot have the cake and eat it too. If situation warrants you should prepare grounds to secure a verdict for declaring the strike as 'illegal' by which you'll have better grounds to proceed further.
16th October 2018 From India, Bangalore
Dear Colleague,
You had not stated all the facts right from the start and coming with undisclosed facts and queries.
Regarding VRS, I believe, the timings are wrong as the matters are heated up. May be at later stage.
Right now , battle has to be fought on legal front. Labour commissioner has no authority to declare strike legal and unjustified but the powers are with the court. Let the matter reach the court and you to use your clout for reference in both for strike and COD.
As rightly stated , the labour court are empowered to award higher wages based onregion- cum industry basis and capacity to pay. But you can always challenge the court judgement in the Apex courts.
In view of violence, threats and intimidation to loyal workers ,staff and replacement workers, in my view, it fit case to hit back by declaring lock out by building up case through proper notices , containing factual events and appeals to resume work. Timing of this you decide but you certainly need to take strong action.
Remember that during the notice period of lockout, resort to suspension of operations . Any lockout followed by illegal and unjustified strike( as declared by the court) is legal and justified.
Regards,
Vinayak Nagarkar
HR- Consultant
16th October 2018 From India, Mumbai
I am sorry that I have to pour the facts as subject evolved with your detailed responses to my queries... which were I felt may not get to start with.
Wow... What a educative responses of Mr.S.Kumar and Mr.Nagarkar. I greatly appreciate and thank. You have given us grounds and legal vision to take forward the negotiation with union .... At negotiation table as well as in court... if it lands in court. Supreme court verdict is self-explanatory.
We shall prepare data on elasticity of our product line (uncertainty in sales volumes and compulsion of introducing new products every year due to continuous changes in pharma industry), our industry standard for spending on wage bill as percentage of sales and unsuitablity of uneducated workers in newly emerged regulated environment of pharma industry.
We had been putting notices asking to attend the duties immediately with copies to authorities. At the same time, we are taking desciplinary actions on union members who are following unfair labour practices by preventing others for attending duties.
I shall keep you posted as situation eveolves.
Thank you very much for your support, Sir... I am obliged.
17th October 2018 From India, Nashik
Also give me guide line on industry norms for declaring VRS scheme. What are considerations
- Lump-sum amount to be negotiated with union
- balance service period and it's certain percentage
Or anything else. We shall start working on it to understand whether the financial impact can be absorbed and prepare internally for future actions.
Thanks
17th October 2018 From India, Nashik
Another thing, can we go to court to unregister the union at our unit for following unfair labour practices by preventing running of our production? Currently we are conducting enquiries and terminating employees who have participated in such activities.
17th October 2018 From India, Nashik
Dear Colleague,
I don't know whether you mean derecognition of the union in place of deregistration.
If you you have recognized union under the MRTU and PULP Act/Rules, then you can.
In your dynamic and unfolding employee relations, I believe my 45+ years of well- rounded IR experience with Tata, Mahindra and multinational companies in Mumbai can be of great assistance to you. Please feel to contact me on 09819192018 or
Regards,
Vinayak Nagarkar
HR- Consultant
17th October 2018 From India, Mumbai
A pre-caution- pl.chalk out/plan flawless strategies to be adopted for the immediate future & longer w.r.t. order book position, vis-a-vis supply commitments, stocks on hand and with the whole sale distributors, how long you can manage facing imminent lockout/shutting down of plants. Also make out due-diligence whether your other plant(s), if any, could make up the consequent shortfall in production and ensure uninterrupted supply if possible. This is necessary to ensure your competitors shouln't capitalise the situation & usurp.
Then, safe guard your plants, personnel and other assets against foul play/sinister activities by disgruntled forces.
Needless to say this, Prudence would direct, in the emerging situation, what to do and what not to do. It's always not necessary that you should blindly follow legal advices in-toto, you people are facing the uncertainty during this testing time and our observations, suggestions can at best could be counted among various options available at different point of time. All the best.
17th October 2018 From India, Bangalore
Mr.Nagarkar
De-recognition union is correct word. I shall mention it to union, labour commissioner and check response. Also ask my HR to submit our request to labour commissioner with all supporting proofs of unfair labour practices undertaken by union members.
Shall get in touch with you after our planned meeting with union on 22nd October at labour commissioner's office.
Mr.Kumar,
I understand your warning and appreciate. We have possible options to keep supplies to our clients alive. Advisory notes from experienced persons has added solid dots in our thought process which shall connect as and when situation demands.
We being facing such dynamic scenario first time and we donot have much idea about legal status of few issues... Your advises have surely came very handy to take negotiation and our action plan forward.
Thanks
Dr.Shrikant Karwa
9422258944
17th October 2018 From India, Nashik
Dear Dr Karwa,
Thanks. Your objective at this crucial time , in my view , should be to get matters of both illegality of strike and COD referred to the legal Authorities ( Industrial Tribunal/Labour Court under the ID Act. Once the reference is made , no strike can be continued and workers will have to resume work. So, make this your top priority.
The issue of reengaging replacement workers ( As you find them far better qualified and capable as compared to the oldies) can be taken up after VRS is successfully implemented. If and when present workers resume work,the replacement workers will have to go but for the time being their issue and VRS has to be kept at back burner.
Once the courts are seized with the strike and COD , you hopefully get a breather to make preparations to make your case stronger in mustering all data and facts on total business scenario in terms of SC judgements. In both the matters your side appears to me more convincing on merits. But it again decidedly depends on how our labour lawyers effectively present it and how are they effectively briefed by the HR.
After reference and during the pendency of matters before Courts, hopefully normalcy in production and work flow will be restored and you can coolly work out your further strategies to continue to confront or compromise and buy long lasting peace through amicable settlement.
Wish you good luck and success.
Regards,
Vinayak Nagarkar
HR- Consultant
18th October 2018 From India, Mumbai
Dear Dr Karwa,
Please post further developments in this matter as I am keen to know .
Regards,
Vinayak Nagarkar
HR- Consultant
24th October 2018 From India, Mumbai
Dear Dr.Karwa,
Here are attached few judgments and Notes on 'Strikes' , 'de-recognition' which I hope might help you in understanding the provisions of law & its application.
24th October 2018 From India, Bangalore

Attached Files
Membership is required for download. Create An Account First
File Type: docx Labour law-An analysis of illegal strikes.docx (26.2 KB, 15 views)
File Type: docx Trade Union-De-recognition-Delhi High Court.docx (22.9 KB, 14 views)
File Type: docx Trade Union-Derognition-Bombay High Court.docx (23.3 KB, 11 views)

Dear friend,
This is in response w.r.t. your 17th post.
As far as I know there is no enactment to govern VRS package, excepting in govt/semi govt. entities where the general guidelines on the package size is -
15 days wages (basic + DA) for every completed years or estimated emoluments for the individual's remaining service computed based on current rates, whichever is lower. There is no hard and fast rule as to the quantum of compensation. This is in addition to gratuity, leave encashment full, EPF accumulation (both subscription + employer's contribution). This could be minimum which can be defended, on the higher side-anybody's guess, sky is the limit.
But you mentioned,your VRS package is to the extent of 70% ("1. Unsuceesful VRS possibility was tried once. We had offered 70% of wages (at current rate of wages) for balance service period of each worker." your post dt.16th.). Did I read correctly "@ 70% of wages for balance service", I think you should have meant to say 70% of wages (of the current month, for every year) or notionally computed for the entire period till superannuation? If I read the later is correct, either they all must be nearing superannuation or you can afford to the hefty cash outgo. That's your call.
In any case, VRS package, if and when implemented, need not be accounted in the very same year of payment i.e. 2018-19 as there is an option to accounts it as "Deferred Revenue Expenditure" under which the sum can be distributed/apportioned over a longer period, say 10 to 20,25 yrs. also. By this your bottom line can be taken care of to reflect healthy results. Also, if there is cash crunch to meet the VRS commitments, banks can be approached for cash credit facilities/WC loan also which, if need arises, can be explored. And if your's is MSME regd. you'll have some more concessions in RoI & prepayment tenure and other advantages.
In contrast, 'Termination" under whatsoever circumstances which you could successfully implement, would cost you less. This will have support from the 'Termination clause of the appointment orders issued to your present employees, which would attract only notice pay with terminal package i.e. 15 days wages per year of past service only.
24th October 2018 From India, Bangalore
Hi
Thanks for your concern about our ongoing strike.
We could demonstrate to labour commissioner that Union's demands are unjustified on the basis of Supreme court judgement given by Mr.S Kumar.
However, Union got new objection. As per MRTU Act, Schedule IV for unfair labour practices by employer, point 8 says that "To recruit new employees till strike is not declared illegal"
Now, this is going against us since we had to recruit new employees to run plant.
We are once again in a fix.
I wonder how others run production by employing when most of their employees are on strike.
I shall appreciate if you can throw light.... whether it is possible to legally employ new recruits or not? If not, we have no option but to stop our this plant and go for another set-up.
In such situation, union can always blackmail management in India while in US, it is allowed to employ replacement workers if they are available at lower cost.
I still believe that there must be a way out to such funny limitation on employer in India also.
Await your opinion.
Dr.Karwa
19th November 2018 From India, Nashik
Dr.Karwa,
Things are narrowing down to some clarity. I was somewhat skeptical about recruiting new employees as against striking lot to run the plant. It's not practically possible to employ new ones in replacement of existing employees unless & until they are relieved/settled. As you know this is going to be opening up another front to tackle if and when the strike is called off. Ofcourse it's a vexed problem facing shutters down for the plant. But 'hire & fire' policies of US has no place in India. If the striking employees are amenable to situations next is 'lock out'. Will any temporary stoppage of production/shut down cause irreparable damage to the work-in-process and other installations? If it works, in case, if you could find a contractor who could employ his own men to run the plant (on somewhat lease basis) temporarily without any commitment either to continue the arrangement to retain the men on a fixed % of share in the surpluses. Or to find any labour contractor to supply men for a limited period for a fixed value contract. Meantime explore possibilities for declaration of 'illegal strike' and enforce 'lockout' if it fails.
19th November 2018 From India, Bangalore
Since Agency law has been ammended, handover manufacturing to third party is not possible.
Our lawyer has take stand that strike is called by Union and Company has declared it as illegal. Hence, Union has responsibility to get their strike declared legal by court to attract Sch IV (8) clause of MRTU & PULP (which says that recruiting new employees during legal strike is unfair labour practice". Hence, there is no legal breach in appointing new employees which can be retrenched once striking employees return to work.
We are taking this stand before authorities.
Please comment.
20th November 2018 From India, Nashik
1.Pl.assess what could be the time frame over all, prepare a PERT chart and a CPM in consultation with your advocate.
2.Could the recruitment of new ones will work, are you confident you'll get right candidate with proper mix of talent/skill?. What if they are also blocked by striking workers with force. I presume these new ones must be from outside the local area and there is a possibility of chaos local vs outsiders.
3.Do you have intelligence report who (possibly some local leaders, politician) are behind them providing strategic support. Even local police might be among them. Your counter action should multi pronged approach to tackle these fronts.
4.Wrought,Pushing towards employ new ones with a conscious plan of retrenching them in a short span, it may be appropriate to include a clause showing definite duration & purely temporary, subject to retrenchment by end of tenure, and if need arises extendable with mutual consent for further duration with same or modified terms & conditions. Also define what could be retrenchment compensation.
20th November 2018 From India, Bangalore
More or less, we have done homework. Whatever you said about politicians and police has happened. We approached highest police authorities in district who are aware of union maniac and is in favour of stopping striking members to take law in hand.
It seems administration is also worried about bad effects of union blackmailing tacties on industry and want them to play by rulebook.
We are giving fixed term employment (as introduced) by govt in recent amendments.
We shall keep you updated.
20th November 2018 From India, Nashik
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™