Navigating Long-term Wage Agreements: Do You Need to Register with DLC Without a Union?

Respected Legal/IR experts,

I. Is it necessary to go for a long-term (3-year) wage agreement with union/opinion leaders? Also, please guide me regarding the clause of the relevant act that permits us to do so.

II. In an organization where there is no registered union, and the relationship between management and workers is very cordial. In this environment, suppose both parties enter into an agreement for mutual interest. Is it necessary to register the agreement with DLC when there is no registered union in the organization? In due course of time, suppose either party denies obeying the terms and conditions of the said agreement, who will resolve the dispute - will it be brought to the DLC?

Kindly guide,

JITEN

Kindly reply.

JITEN

It is always better to register whatever agreement is reached between the management and the workers so that both parties are bound by the agreement. Even in a non-unionized environment, it is not mandatory.

Dear Friend,

Please read Section 2 of the ID Act. It gives in detail the types of settlements one can agree upon.

Whether we should do a 3-year settlement or more depends upon the bargaining power of management & union. I have done a settlement for 4 years with the union because it gave my company enough time to carry on its business smoothly without any industrial disputes for 4 years. Long-term settlements ensure that your business goals are achieved over a period of time. Secondly, whenever you make a settlement, remember that you should be able to recover the cost of the settlement over a period of time. Whatever money you have invested in an increase in wages should be recovered in 2 years' time because it is an investment in labor. This money can be recovered by implementing productivity norms which help in increased production, etc.

I hope you would have understood the logic.

Regards,

Ashish.

Is it necessary to go for a long-term (3-year) wage agreement with the union/opinion leaders? Also, please guide me regarding the clause of the relevant act that permits us to go for that.

In an organization where there is no registered union, and the relationship between management & workers is very much cordial.

In this environment, suppose both parties enter into an agreement for mutual interest. Is it necessary to register the agreement with DLC when there is no registered union in the organization?

In due course of time, suppose any of the parties denied to obey the terms and conditions of the said agreement, who will solve the dispute, will it be brought to the DLC.

Kindly guide,

JITEN

Kindly reply.

JITEN