Closing a Unionized Manufacturing Unit with 95 Workers: How Do We Navigate This Challenge?

What is the procedure to close a unionized manufacturing unit having 95 workmen? We have to close to avoid further loss and focus on outsourcing.

Dear Narayan,

Sorry to state that the hidden agenda revealed through your statement is not the closure of the unit but only outsourcing, and that too to wipe out the union. What is the guarantee that the outsourced labor would not get unionized eventually? Don't you remember dark episodes like Thanesar? It would be better to have some introspection into the problem and find out positive solutions.

If the organization is in losses and the management has decided to close, you need to follow the procedure but clear all the dues and pay compensation. If you choose to retain only the regular employees and opt for outsourcing the rest, you might be inviting trouble instead of peace.

If the management is considering closure due to issues with the workforce, it's essential to work towards a win-win solution as nobody would willingly sacrifice their livelihood. Seek assistance, resolve the matter, and strive to continue operations.

I concur with Mr. Umakanthan's viewpoint. By pursuing this path, you may end up compounding your problems, facing issues with both the existing and outsourced employees.

Thanks,
Kamesh