please suggest some key points while going for wage settlement process
From India , Gurgaon
In order for anyone to be able to help you, please provide more information.
From Australia, Melbourne
Dear Hemumanu;
In a wage settlement there are certain considerations from employer and employees.
1. What is the wage level in surrounding industries
2. What is the wage level within industries in your category
3. What is the capacity of the industry to pay
4. What is the contribution of employees in performance of company
5. What should be direct and indirect burden
6. What will be CTC
7. Period of settlement
8. What is to be achieved in the settlement
9. Should the settlement be 2(p) or 18(3)
10. Language of the settlement is local or Hindi or English
If these points are taken care of then progress of settlement will be easy.
Vibhakar Ramtirthkar, Pune

From India, Pune
Dear Colleague,

Wages settlement process is very important aspect to be handed with lot of home work and preparation as guided by the colleagues.

The amount of preparation internally is most important. I share a general process which may be of use for your work:

1. Forming an internal Team for data collection from cluster companies of similar process/ product / industry type

2. Checking any previous settlements or awards prevailing and what the terms of such documents

3. Presence of any Trade Union and what is their demand whether each demand is analysed and prepared with counter demands for productivity and such matters by management team

4. What is the paying capacity of the Business/ Industry and upto what extent it is healthy to go for increase year 1 /year 2/ year 3 and how to avoid giving in case on single year so that the financial burden will also spread

5. Whether any Wage Board Awards prevailing and need to be followed on Wages

6. How to bifurcate the increase proposed into different components in such a manner that it does not add too much of cost on Statutory contributions like PF, ESI, and so on.

7. What are existing components and how you propose to given increase in each bucket

8. Whether you follow DA system and what was the trend of increase in the past and how the escalation going to be as per prediction

9. Any work on giving portion of increase as Performance Linked Pay or as Incentives so that performance lined pay will be ensured

10. Control on Manpower cost - what is the % of wages cost per Ton of production or such comparable

11. Any key inclusions to be brought into the settlement from Management Side for safety, productivity and so on

12. Meeting the Conciliation Officer under ID Act and get his guidance and opinion with a draft proposal

13. Preparing a meaningful presentation and getting it accepted by a Team of Members from Management with Cross Functional discipline

14. Triggering discussions with Stake Holders

15. Drafting Draft Settlement after one or 2 key sittings of discussion / negotiation

16. When we give connect with productivity, performance, paying capacity, Industry's financial Health factor and future grown, sustainability and scope of industry in the near future.

17. Get views from other HR Heads of cluster companies who are in the same type of or nature of Industry before kick start

18. Expectation Management from stake holders as always the expectations will be high and management side needs to moderate it as a big exercise

19. During first few meetings express the difficulties of running business and challenges and future of industry etc

20 Above all, All the best and add more and more points to this list after discussion with all Colleagues and then do best

Take care,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu

Disclaimer :
When any article is referred kindly read for academic purpose only and do not take decision, do not go with any vendor or agency for that matter.

The write up is a general view and the reader is advised to have his own wisdom and knowledge and further refer to competent professionals and then only take call on his / her own.

From India, Chennai

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