How to Handle Worker Resistance to Automation and Overtime Changes?

In our branch, we develop machines for automation. Our old permanent workers do not cooperate in working on these machines; they think overtime may be reduced in the future due to automation. Therefore, we have hired new contract-based workers for these machines. We have decided to assign 8 hours of work to the old workers with no overtime. We pay them above minimum wages.

As a result, these workers have become angry and have demanded overtime pay or a salary increase of 4 to 5k; otherwise, they threaten to stop working. Please advise on the appropriate course of action.

Legal Actions and Rules

What are the legal actions or rules regarding this matter?

Waiting for your response.

Regards,
Raju Shriname

They can't stop the work. Try to speak with them, have an open dialogue, and understand their issues. Also, check if you are paying them fair wages. Minimum wages do not mean fair wages. Do the benchmark and make a decision; after all, people will consider the benefits they would lose. In extreme stages, if they stop the work, you can take action for their misconduct. Please refer to the Model Standing Orders and Industrial Dispute Act.

Regards,

Overtime and Illegal Strikes

Overtime is not a right, and workers cannot stop work if you are not providing them with overtime. If they do so, it falls under the definition of an illegal strike. In such cases, issue a notice to them stating that they are on an illegal strike and no wages will be paid to them. You can even declare a lockout for those workers participating in an illegal strike and take action against them.

Regards

Legal Considerations for Overtime and Wage Disputes

Technically, they are not entitled to claim overtime as a matter of right. Since they are paid above minimum wages, they cannot complain of any non-compliance insofar as wages are concerned. Even though you have introduced automation, you have not retrenched any workmen, so they cannot also complain of any adverse change in their service conditions. So legally, you need not worry.

However, they may raise an industrial dispute about wage fixation. You can prepare your ground to meet their claims. You need to do some exercise like whether they really deserve any increase, if not why, if so, how much, and what are the wages paid to similarly situated employees in the same or similar industries in and around your place, etc.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Do you have a union in your company? If yes, then you may have some union leaders. Sit together and try to resolve issues. If they do not agree, then in the final case, you have to make a decision. Before doing so, ensure you are well-prepared with your basics. If you think they have stopped work and are considering going on strike, your management can take a legal stand against them because overtime is not their right.

Thank you.

From my point of view, first, you should negotiate with them by discussing the company's situation, productivity, and financial status, and explaining these aspects to them to try to resolve the issue. If they do not comply with your instructions after negotiation, you should issue a show-cause notice to all based on the model standing order.

To start with, even an informal discussion with them about the pros and cons might help. As pointed out by our experts, they do not have a sound case, but still, their hearts have to be won over.

Regards,
V. Raghunathan
Navi Mumbai

Dear, just one thing. When was the wage revision done for them? Recently or years and years ago? You must also consider their point of view in arriving at a suitable decision. Inflation is on the rise yearly, and the government is struggling to keep it under control. A kilogram of good quality rice cost Rs. 20 some 6 or 7 years ago, but the same cost has risen to Rs. 45 now. Not to mention the quality of rice given free of cost in some states.

Analyze Their Demands

Do a thorough home study and analyze their logic in their demand. Is it reasonable or unreasonable? You may not need to heed all their demands, but I am sure you can accommodate some of them. By the way, how's the bottom line of your company (I mean financial fundamentals)?

Weigh the cost-benefit of their demands and make a suitable decision.

Best Wishes.

The Impact of Introducing New Systems

No one can resist the implementation of a new system by management, provided it helps enhance productivity and reduce process time. There was a time when computers were introduced in government sectors where conventional methods of accounting and report generation were used. People were apprehensive that the introduction of computers would hamper their very existence and that jobs would be lost. What has happened today? Computers have become part of day-to-day operations, without which the whole office would come to a standstill.

Similarly, when any new system is introduced, there will be some resistance. It is essential to explain the advantages to the employees. It is highly recommended that organizations move towards automation in the future.

Challenges in Recruitment and Workforce Management

In the wake of the non-availability of skilled manpower, we are constrained to compromise on quality and recruit below-standard workers. Even if we recruit them, there is no guarantee that they will stay with the organization for a longer time. It is the order of the day.

People acting with vested interests should not be encouraged at all. At the same time, if they resort to industrial unrest (whether legally or illegally), you must be prepared to combat the situation by having alternative methods to ensure uninterrupted production. What your action plan is, is what your management must consider.

Regards,
V. Balaji