Facing Union Pressure: How Do You Handle Mathadi Kamgar Act Demands?

Please help me with the Mathadi Kamgar Act. Some local unions have approached us, insisting that we engage their Mathai members in our company. I want to know if other unions have made similar demands. If we agree to hire them, can we take disciplinary action against them if they disobey instructions?

PANKAJ
PUNE
9890179844

To register your company under the Mathadi Act, enroll your existing workers with the board who handle loading/unloading work. Pay them a regular salary (minimum wage act applicable) and contribute 33% to the board. They will manage E.S.I., gratuity, bonus, P.F., etc. By doing so, you can save on 20% on bonus, 13% on P.F., 4.75% on E.S.I., and gratuity.

The company incurs no responsibility in this arrangement.

Since these employees may be regular workers, you may continue offering them certain facilities such as special rates for tea/snacks/lunch/transport arrangements, which you currently provide. You have the option to pay salaries through the board or directly to the employees with 33% going to the board.

There are no other liabilities involved. If feasible, consider including other employees engaged in packing/stitching/filling operations. Employees involved in machine/plant-based manufacturing processes should not be registered.

Thank you for the breakup. You have mentioned that the Mathadis have to be paid according to the Minimum Wage Act, but the board sends circulars determining the wages. How do we ensure that these wages are as per the Minimum Wage Act?

Recently, we have received a circular stating that the Mathadi workers have to be paid Rs. 300 on daily wages + 38% levy. Is this in accordance with the Minimum Wage Act? From Rs. 214 per day last year, they have increased to Rs. 300 per day this year. Also, we have to pay them for all 7 days a week even if the factory is closed for the weekly off. Is this in accordance with the law?

Thanking you in advance.

You are required to engage the Mathadi workmen from the Mathadi board only. We have heard that there are many spurious unions working in Pune that do not have registered Mathadis. Therefore, ensure you take only registered Mathadi workers from the board and pay their levy to the board.

Regards,

Is there any legal obligation for construction contractors or builders towards Mathadi unions? Can they force employers to hire union labor from their area?