A Case on Noble Paper
Industry Noble Paper industry is situated in a backward zone of Raigad district. It employs about six hundred employees. The firm was founded in 1988. Throughout the first six years from its foundation, it did neither make any profits and nor did it pay any statutory bonus. But to sustain with other neighbouring firms, this firm paid an ex-gratia payment once every year to its employees at a flat rate oft 2,000 per employee. The firm began to pay statutory bonus since the payment of Bonus Act become applicable. Additionally, the firm decided to stop the practice of ex-gratia payment. Employees, through the trade union, started protesting.
After an extensive round of discussions when the union realised that the management was determined on not giving ex-gratia it suddenly, announced a strike. Officers were threatened and the employees behaved with them violently. Production had completely stopped. The firm suffered heavy losses. The Management approached Labour Court and requested to declare strike as illegal. The Court declared the strike as illegal since 14 days' notice was not given.
Some attempts were made by the local leaders to resolve the dispute, but the management was not agreeable now. The Management decided to remove the recognition that was accorded to the Union. as per the provisions under the related law. As a result of this step, the doors of negotiations and compromise between Management and Union were permanently closed. Further, the deadlock has deteriorated as some of the office bearers of the Union have threatened the Management of terrible consequences, unless they fulfil the Union's demand instantly.
Questions:
1. Comment on the role Played by the Union in insisting on exgratia payment in addition to bonus.
2. Evaluate the Union's action of declaring sudden strike especially when the Management was willing to negotiate with it.
3. Is the step of de-recognising Union by the Management appropriate as seen from the angle of maintaining smooth industrial relations? Explain in detail the reasons for proper or improper demon of the Management.
Industry Noble Paper industry is situated in a backward zone of Raigad district. It employs about six hundred employees. The firm was founded in 1988. Throughout the first six years from its foundation, it did neither make any profits and nor did it pay any statutory bonus. But to sustain with other neighbouring firms, this firm paid an ex-gratia payment once every year to its employees at a flat rate oft 2,000 per employee. The firm began to pay statutory bonus since the payment of Bonus Act become applicable. Additionally, the firm decided to stop the practice of ex-gratia payment. Employees, through the trade union, started protesting.
After an extensive round of discussions when the union realised that the management was determined on not giving ex-gratia it suddenly, announced a strike. Officers were threatened and the employees behaved with them violently. Production had completely stopped. The firm suffered heavy losses. The Management approached Labour Court and requested to declare strike as illegal. The Court declared the strike as illegal since 14 days' notice was not given.
Some attempts were made by the local leaders to resolve the dispute, but the management was not agreeable now. The Management decided to remove the recognition that was accorded to the Union. as per the provisions under the related law. As a result of this step, the doors of negotiations and compromise between Management and Union were permanently closed. Further, the deadlock has deteriorated as some of the office bearers of the Union have threatened the Management of terrible consequences, unless they fulfil the Union's demand instantly.
Questions:
1. Comment on the role Played by the Union in insisting on exgratia payment in addition to bonus.
2. Evaluate the Union's action of declaring sudden strike especially when the Management was willing to negotiate with it.
3. Is the step of de-recognising Union by the Management appropriate as seen from the angle of maintaining smooth industrial relations? Explain in detail the reasons for proper or improper demon of the Management.