Hello and Greetings, I had a case study in my organization. The Case Study is as Follows: There is a union that has submitted a common charter of demand for two plants of the same parent company. The matter is pending before the conciliation officer. The points that the management is objecting to are:
1. The common charter is not maintainable.
2. The parent company had a demerger, and it split into two plants (legal units) that have separate legal identities, and their financial capacity is different.
The demands are asking for the same pay and retirement benefits, etc. What advice can we give the management regarding the same, and how can we avoid such a scenario wherein the unions also benefit, and the management wouldn't have to bear all the costs?
Thank you.
From India, Mumbai
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1. The common charter is not maintainable.
2. The parent company had a demerger, and it split into two plants (legal units) that have separate legal identities, and their financial capacity is different.
The demands are asking for the same pay and retirement benefits, etc. What advice can we give the management regarding the same, and how can we avoid such a scenario wherein the unions also benefit, and the management wouldn't have to bear all the costs?
Thank you.
From India, Mumbai
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If the companies are separate and there is no financial interdependency, then the units could be treated as separate. However, if there are common directors, transfer of employees from one unit to another, transfer of funds on a short-term basis, etc., then it will be difficult to establish that the units are separate. You can put the matter before the Conciliation Officer. It is conciliation only, and as such, you can present your demands to the officer, and he will convey the same to the union as well.
From India, Kannur
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4510From India, Kannur
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