How Should We Handle an Unexpected Strike and Communicate with Our Union Workers?

Dear Seniors,

We have a recognized union in my company. Recently, we have come to the end of negotiations against the COD submitted for their wage settlement. However, after signing the settlement, we are in the process of finalizing certain things: obtaining approval from management, drafting the settlement, calculating arrears, and assessing the overall impact of this settlement. Since it was the 14th day of the month, we understand that their wages were not released. The workers of the union called for a strike suddenly without any intimation to us, resulting in our loss of production and operation of the plant. The sudden stoppage of machinery also poses a high risk to human life.

In view of the above:

- What will be our response to the union and the workers?
- Do we need to issue a letter to the recognized union?
- What will be the role of the Labour Officer?
- How can we prove the strike is illegal?
- We also have another union (unrecognized), what will be their role?
- How can we prevent illegal strikes and keep the pressure on?
- What substantial documents do we need to prepare for this illegal strike?

Requesting the Senior IR legends to shed light on the burning issues I am facing.

Thanks in advance.

The situation appears to be heading towards a showdown, and you have to be prepared. It looks like the recognized union is unable to sell the mutually agreed revised terms to the workmen, hence wanting to divert attention. Or is it under pressure from the other union, or are they doubting the integrity of management that they may ditch the agreement?

Your queries are answered below:

What will be our response to the unions and the workers?

Since a 14-day notice is not given, the strike will be illegal. Approach the Labour Officer and try to involve them to bring it to an end.

Do we need to issue a letter to the recognized union?

Yes, not only to the union but give an open letter to all the workmen.

What will be the role of the Labour Officer?

The real help could come from the Labour Department to bring an end to this situation.

How can we prove the strike is illegal?

The very fact that the strike has commenced without giving proper notice is illegal.

We also have one more union (unrecognized), what will be their role?

That would depend on the role played by them so far. Some continuity in the way they react could be anticipated.

How can we keep under pressure to not resort to an illegal strike?

Keep up the process of dialogue. Having reached an overall understanding, the time taken is only administrative. You need to take the recognized union into confidence and probably could start implementing the deliverables one by one at the earliest.

What will be the substantial documents we need to prepare for this illegal strike?

The correspondence and the reports you have about the union activities in gathering support for the strike are needed.

Such a situation needs a lot more information on how it has evolved thus far before venturing to give advice. But one sure way is to involve the Labour Officer and make an agreement in his presence; it is binding on all workmen. Whereas a bargaining agreement is binding only on the parties.

I am not an HR expert, but I find it incredible that you have signed the wage agreement, yet in 15 days, you have not paid salaries to the workers, using the excuse that you are computing the amounts.

Every factory I know continues to pay the old wages until they finish the work and then pays the higher one. The differences are then settled by way of arrears within a month at most. It seems from your post that you, in fact, held back salaries you were required to pay by law. Therefore, the action of the workers is not surprising.

Dear colleague,

Apparently, you are facing an unexpected IR dilemma. You have just concluded a long-term wage settlement with the recognized union and are in the process of its implementation. In the meantime, the Union/Workmen have suddenly gone on strike, apparently, according to you, on account of a delay in payment of wages.

Since you have a culture/history of resolving issues across the table, what is stopping you from discussing and ascertaining the reasons for the sudden strike? Is it only a delay in payment or some other reason?

In my view, instead of only building documents to get the strike declared illegal or otherwise, focus your efforts on bringing about an amicable resolution of the pressing issues across the table without solely depending on third-party interventions. And I don't believe it is impossible to bring about an understanding, looking at the fact that your major milestone of wage settlement is behind you.

Yes, if the unrecognized union is playing some role in capitalizing on possible disgruntlement over the wage settlement, then with the help of the recognized union and intervention of the Government Labor machinery, it will have to be considered.

Thanks and wish you a speedy solution to your current challenge.

Regards,

Vinayak Nagarkar

HR and Employee Relations Consultant

Dear Colleague,

Handling a Flash Strike in Industrial Relations

The basic facts are: There are two unions, one recognized and the other not. You were about to conclude the settlement, and the process was ongoing. Suddenly, before signing, there is a flash strike. How should such a situation be handled from an Industrial Relations (IR) perspective?

In general, in IR, when the Long-Term Settlement (LTS) process is ongoing, such actions by unions are quite common, especially if a union feels weak and fears criticism from others if they sign. The ideas agreed upon would have been debated, and when they leave, there will be too many cooks to spoil the egg omelet. Different corners will offer too many ideas, and some forces will not allow a settlement to be reached. This scenario happens in most LTS processes. In our past IR history, there have been more than 25 to 30 such incidents. Later, we learned and applied different ways and means: We ensure all work is ready, keep drafts prepared, share the drafts by displaying them in PPT form to all participants, and have all approvals ready before the final meetings. On the day of concluding the talks, we try our best to ensure that the room doors are closed, and any differences are resolved through discussion and persuasion. Only after signing the settlement do we leave the room. Food is served inside to all members. Despite these efforts, there are instances where individuals escape, causing confusion.

When a settlement is delayed, we should never stop the usual salary as we will eventually pay the arrears. This is a crucial point to consider.

Approach for Low-Confidence Leaders

In the case of low-confidence leaders, it is advisable not to go for a bipartite approach. Once talks are nearing completion, proceed to a tripartite meeting before the Conciliation Officer for a 12(3) settlement. During the conciliation process, no strikes are permitted. The unrecognized union will also be called and heard. Once a settlement is entered, it binds all workers and unions, preventing further strikes. Any strike during this period would be deemed illegal.

Specific Actions to Consider

1. Response to Unions and Workers
Send due notices to the Labour Authority - Conciliation Officer and request for conciliation while prohibiting strikes under the provisions of the Industrial Disputes Act, 1947. Consider declaring a lockout if necessary, or opt for an 8-day wage deduction under the Standing Orders provisions.

2. Issuing a Letter to the Recognized Union
Consider sending a letter to the union discussing the potential cancellation of recognition and highlighting the unfair labor practices under the Industrial Disputes Act, 1947. Notify them of future settlement processes and possible wage deductions for illegal strikes.

3. Role of the Labour Officer
In the event of a strike, promptly inform the Conciliation Officer and emphasize the strike's illegality. The Conciliation Officer will initiate conciliation efforts and advise workers to cease the strike, potentially leading to further actions under the standing orders.

4. Proving the Strike is Illegal
The absence of notices under sections 22 and 23 of the Industrial Disputes Act can serve as evidence of an illegal strike. Proceed based on the establishment's Standing Orders and issue show cause notices to workers, leading to potential wage cuts or disciplinary actions.

5. Role of the Unrecognized Union
During conciliation and settlement processes, the unrecognized union will be involved and bound by the final settlement agreed upon.

6. Discouraging Illegal Strikes
Consider implementing disciplinary actions, such as wage deductions, formal warnings, and record-keeping of illegal strike incidents, to deter future occurrences.

Documents Needed for Handling Illegal Strikes

- Notice board displays
- Strike intimation sent to the Conciliation Officer
- Intimations sent to the local police station
- Show cause notices issued to workers
- Letters sent to the Labour Officer and recognized union
- Documents related to cancellation of union recognition
- Attendance registers of striking workers
- Production logs and security reports

Handling IR issues requires patience, a win-win approach, and adaptability to evolving situations for long-term benefits. Best of luck!

Dear All CiteHR members and worthy contributing experts,

It is very optimistic and heartening that CiteHR Expert Members are giving their valuable time and advice despite the fact that the querist does not provide the most relevant facts/data/details. In such a situation, it is most appreciated that KK HR, Saswata Banerjee, Vinayak Nagarkar, and Dr. P. Sivkumar have given valuable expert advice. However, the most important point has not been disclosed by the querist regarding what settlement was made and what conditions, such as time limits, were decided in the agreement. Had this been disclosed, an appropriate expert opinion could have been tendered possibly.

I shall also request the CiteHR members to at least demonstrate their reaction to the advice of experts by validating the advice. This will inspire the professional experts to dedicate their valuable time with great zeal. In this case, no validation has been depicted from the side of the querist until 10:40 pm today, January 17, 2022.

With due regards, respect, and good wishes to all.

Chandra Mani Lal Srivastava
Master Consultant
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
New Delhi

Dear All,

First of all, I apologize for the late reply and response to all the members who have given me insights into solving the issues I am currently facing. The frustration from certain members for not responding is understandable and obvious.

Since the first post, I have been closely tracking the responses of all the legends: KK.HR Sir, Banerji Sir, Nagarkar Sir, and Shivkumar Sir. It is only because of your responses that I have gained the confidence to face the issue and tackle it sensibly.

My inadequate data in the queries I raised is due to my lack of experience in the IR domain. Prior to this, I was working on payroll, recruitment, statutory compliances, and in a generalist profile, which gave me very little exposure to the IR domain. I have learned that IR knowledge is primarily gained through the situations you face during your profession, and it doesn't just come from books.

As P. Shivkumar specifically answered my queries, I am executing and following the path he suggested.

Regards,
Ravi B.

I still do not understand why you did not pay the salary to the workers instead of allowing them to go on strike. I doubt any labor officer will declare the strike illegal if you have not paid the workers their salary on time.

We have negotiated with the union sitting across the table and have come to a conclusion for the wage hike over five years with a certain lump sum increase. This decision considers the pandemic, the last wage settlement, and the company's financial condition. We negotiated with the union on the hike amount, including all statutory contributions from the employer's side. It was almost finalized, but one day they suddenly came to the office, denied the negotiation conditions (as the agreement was not signed), and called for a strike without any prior notice.

They are denying that the statutory part of the employer would be included in the lump sum hike, which we discussed during the meeting.

Regards,
Ravi B.

Dear CiteHR member Shri Ravi ji,

I certainly agree with Mr. Saswata Banerjee that posting a query with incomplete facts or not providing the correct position of a particular situation is inappropriate, as you will not receive adequate and relevant opinions.

Even now, it is not clear what action has been taken by your management, considering so many days have passed.

Notice to Employees Regarding Strike

A written notice should be issued or posted on the notice board about the financial health of the company and the demands of the Union. It should be communicated that a strike without notice is illegal, and a sudden stoppage of work will cause financial loss to the company and result in non-acceptance of the Union's demands. The workers should be advised to return to duty, failing which their services would be terminated. It should also be indicated that management is open to discussion on the demands and will consider the interests of the workers to the best of its ability, according to the availability of funds.

A copy of the notice should be given to the Labour Department and the local police for information.

Review of Previous Union Agreements

What were the previous conditions of the last agreement with the Union? These also need to be reviewed.

It is requested of all CiteHR members that full details of circumstances, along with the actions taken so far, should invariably be indicated in the thread to enable the Contributing Experts to offer a correct opinion as far as possible.

With best wishes and regards to all experts,

Chandra Mani Lal Srivastava Master Consultant [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] New Delhi/24.01.2022/8:27 am

Dear Ravi,

I have been closely following the thread from the very beginning, and I appreciate the suggestions given by our members to effectively handle the situation despite the lack of establishment-related particulars and the factual contradictions found in your posts. In this regard, I am in complete agreement with the views of M/S Saswata Banerjee and C.M.L. Srivastava.

Particulars to Include in Query for Clarification

In respect of any consequential deadlock resulting in a strike arising out of a partly negotiated bilateral settlement on the charter of demands, the query seeking clarification should contain the following particulars without fail:

1) The type of industry
2) Whether it is a public utility service
3) Total number of people employed under the category of 'workman'
4) Number of trade unions functioning in the industry
5) Whether the union recognition was under the Code of Discipline/any specific law in force or just as per the discretion of the management based on majority membership.
6) Whether the management follows the practice of converting the bilateral settlement into a tripartite settlement u/s 12(3) of the ID Act, 1947?
7) Whether the current bilateral negotiations were started without delay on the expiry of the previous settlement

From your last post, it is discernible that the bilateral negotiations were not concluded amicably, which is the reason for the union's sudden strike move.

Legal Obligations and Management's Role During a Strike

As pointed out earlier by others, if yours is a public utility service, a notice of strike u/s 22 and if not, u/s 23 of the ID Act is mandatory. Otherwise, the strike would be deemed illegal. In any case, it is the duty of the management to inform the conciliation officer for the area within 24 hours of the strike. The conciliation officer would commence his conciliatory talks immediately, inviting all the parties concerned. He would certainly advise the workmen to call off the strike in view of his conciliation. The management has to participate in the talks without fail. They can appraise the officer of their stand on the issues and facilitate an amicable settlement by relaxing their earlier stand to the possible extent. But the management should not insist on signing the settlement with the recognized union only. If the terms are agreeable, the unrecognized union would also be permitted by the conciliation officer to participate in the talks and sign the settlement reached in his presence.