Long Term Wage Settlement will expire - management wants to extend the same agreement until business improves

Hi All, LTS agreement of our company will expire in the next couple of months. Looking at the current scenario our management wants to extend the same agreement until business improves or indefinite period along-with that we also need to retrench some workers out of which some are union members. So all please give your valuable inputs to take the things in a positive manner without any IR issue.

Though commonly called LTS, such Bia-Partite OR Triapartite Agreement/ Settlement are Term/Period Specific with an Expiry Date. As is the precedence, Regd Trade Unions, come up with New Charter of Demands and are Ready for Negotiations. This is also a way to demonstarte that the concerned TU still represents the Majority and enjoys unstinted support of its Members, keeping at bay Spilinter Unionsim or inter or intra TU rivalries a feature not uncommon. Take the TU in confidence in case you nurture HealthY & Harmonious IR scenario and co-create a mutual Trust and in shortest time, excute a Newer Agreement/Settlement.

As far as need-based Rationalizatio of Workforceis concerned, begin Dialogue with Regd TU with a view to convince that there is No Ulterior motive but Sustainability of ongoing Org.

May you suceed.

Harsh K Sharan, Kritarth Consulting

20 July 2020