Facing Union Demands: Can We Legally Withhold Increments During the Pandemic?

Dear Friends, I am working in a reputed manufacturing company that has 50 union workman employees. Their Memorandum of Settlement expired on 31-03-2020. During the lockdown, we paid full salaries for around 2 months without any deductions. Unfortunately, we have incurred significant losses this year.

The employees keep asking about their increments and have been submitting their demands repeatedly. We have explained the situation of the pandemic to the union president and members, expressing our inability to provide increments during this financial year. However, they remain unconvinced.

Increments During the Pandemic

In this pandemic situation, are there any provisions by law that allow us to withhold increments this year? We assure you that we will address this in the upcoming year. Your advice on this matter would be greatly appreciated.

Thank you.

Dear Anil, your company's problem in the backdrop of the COVID-19 situation is very well understood by onlookers like me. However, the workmen and their trade union, although they are well aware of the critical situation, may be insisting on a pay hike now as a tactic to receive some sort of interim relief. I suggest trying to postpone the revision of wages for at least two years by promising some interim relief.