Is the Industrial Disputes Act Relevant for a Mutual Fund Distribution Company? 樂

So sorry for the oversight, I typed incorrectly. It's the Industrial Disputes Act. Can you suggest whether it is applicable for a Mutual Fund Distribution Private Limited Company? 🤔

Dear Khola Sir,

Seeking advice from you.

We are a Foods & Beverages Company, with a regional office in Mumbai. We have outlets spread across Maharashtra. Recently, we have been approached by a political party representing Maharashtra Mathadi, Hamaal, and General Labour Association.

This party leader claims that the loading, unloading of food material, etc., at our outlets should be done by Mathadi people only and not by our operations staff. Therefore, either we allow our staff to become their union members or we should hire their union members (Mathadi kaamgaar) as our permanent employees.

Both conditions are unacceptable to us. Could you please advise us on how to proceed and resolve the issue? We do not discount the possibility of them damaging or breaking our outlets.

Your guidance will be greatly appreciated.

Regards,
SMM - HR

Dear SMM,

My area of work is only limited to the State of Haryana. In Maharashtra State, I do not know what the work culture is and what the laws are relating to Trade Unions and Industrial Relations. No one can force the workers to join the union, but on the other hand, they are free to become a member of the union and raise demands through the union. To be on the safer side, you should liaise with the Labour and Police departments and inform them of the situation. You can seek assistance from your local HR members regarding this situation. Also, keep in touch with your employees.

Regards,
R.N.Khola

Dear Hinger,

Yes, your I.D. act is applicable to your organization. As per Section 2(k) of the Industrial Disputes Act, 1947, an industrial dispute is defined as any dispute or difference between employers and employees, or between employers and workmen, or between workmen which is connected with the employment or non-employment or the terms of employment or with the conditions of labor of any person. This definition includes all aspects of a dispute. It not only includes the disagreement between employees and employers but also emphasizes the difference of opinion between worker and worker. The disputes generally arise on account of a poor wage structure or poor working conditions. This disagreement or difference could be on any matter concerning the workers individually or collectively. It must be connected with employment or non-employment or with the conditions of labor.

Dear SMM,

You have troublemakers at your doors.

I would not be able to write more here else I will be targeted by them.

Course of Action:

First and foremost, try buying time to decide. The more time, the better. Follow the principle, "Delayed action Tactice". Always let them know by action that you are there to help them.

1. Immediately, seek a mediator for your offices wherever they have approached.

2. In all, keep the final decision in your hand.

3. The union has its own rates for cargo loading and unloading. So please ensure you have your rates agreed.

4. Do not succumb to their pressure and force tactics and big contacts.

5. Contact your local MLA and develop a good rapport and also brief them on the issue.

6. Never let them know who is the final decision-maker and better to let them know from the head office.

7. I agree, do not allow your people to become a member of this group. You will have a hard time going ahead.

8. If you are in an industrial area, you will have to at least take a few Mathadi workers. In fact, I guess you will be forced to take. They are known to use muscle tactics.

9. Make an official complaint at the nearest police station of receiving threats from them.

10. Involve your legal adviser.

11. You will take some time to come in union with them, and once friendly, you will not have many problems.

12. Ensure you have a local guy also involved in supervising these Kamaghar if you have to take them.

13. Take people from the local area for all unloading and loading activities. If you have some village nearby, better. I had used the cover of "PAP" for our warehouse.

14. If they have a good presence in the area, I guess you would be forced to fall in line.

15. Political guidance and advice are required at this stage.

16. All in all, try to use modern machines for all your activities. Most of these unions have little experience in modern utilities. It costs but puts us in less trouble.

All the Best.

ukmitra

Dear SMM,

You are in an unenviable situation. In reality, you do not have any choice but to give in, else you face the music. We all saw what happened to Karan Johar... he had to go and apologize to Raj Thackeray just because one of the actors called Mumbai, Bombay. Uncontrolled, unchecked, Goonda Raj is blatantly prevalent in Mumbai, and there is precious little you can do. Even the law enforcement authorities appear to be impotent.

Cheers,
Vasant Nair

Dear Shaunak,

Except items 5 & 15, I agree with Mr. U K Mitra. You can adopt the methods suggested by Mr. Mitra. BUT, beware, if you dare intervention of politics into your regime, you will be inviting much more trouble for you and your organization. Once you allow a political party to intervene, immediately after that several other opposite political parties would jump into the arena to make hell of the situation in the name of labor suppression. Nothing will remain under your control after that. You will be treated as an inefficient manager or entrepreneur (whichever position you hold) if the situation goes out of your control.

P. S. Dhingra
Vigilance & Change Management Consultant

Dear Mr. Dhingra,

Yes, I agree. But I had successfully used the same tactic to keep them all engaged in internal discussion for 2 years. Also, I used the tactic of getting some petty jobs for their immediate kin and friends elsewhere. It really works if the leader is benefited in some way to ensure we do not have the majority of their staff in our company. Usually, this Kmaghar respects the leaders of some political group. It is advisable for big organizations, as it really helps if used brilliantly.

MLA and political guidance is good as long as they make sense for our business, but I agree if they try to take advantage of us, then they will be a pain in our a**.

Regards,
Ukmitra

Dear Mitra,

Please don't mind my differing opinion on the entry of politics into management affairs. I shared only my perception and practice against political interference in managerial matters. I commend you for all the other brilliant suggestions in addressing the issue. It is better to have a list of the Kamgars from the source and hire them directly rather than through any leader. Kamgars hired directly would likely respect and be loyal to you, unlike those routed through the Union or leaders, as they would only be affiliated with their hiring leader. This approach would prevent leaders from expressing grievances, as you can assert that their employees are already working for you.

Regarding political assistance, I can only say that once you accept any obligations from political leaders, your decision-making power weakens. In many cases, you may have to yield to their wishes and frequent demands, becoming emotionally manipulated not only by them but also by their associates. They may attempt to have numerous undue demands met based solely on one obligation. Refusing such demands may lead to being labeled as anti-people. Additionally, by ignoring their opponents, you may make enemies. However, individual experiences vary. Personally, I would not recommend involving politics in management affairs.

One can seek advice from other professionals for sincere guidance if facing challenges, but involving a politician is not advisable.

Yes, Mr. Dhigra,

I agree. One has to be really adept at handling some politicians. If one has no experience or contacts in that matter, I agree one must avoid it altogether as rightly pointed out by you.

Regards,
Ukmitra