Promotion of contract labour from company management - request to have some input on legal grounds

Dear Senior Members,

I would like to request your insights on the promotion of contract labor by the company management.

We have a recognized union that includes both the company's permanent workers and contract workers. The contract worker representative is currently requesting a promotion from the management.

Your input on the legal aspects of this matter would be greatly appreciated.

Thank you in advance,
Ravi B.

When the contract labor continues for long years of service, the demand for wage revision, career progression, etc. would arise, and for the sake of conducive industrial relations (IR), some extra benefits have to be considered and agreed upon apart from the statutory provisions.

One aspect to consider could be introducing some form of service weightage, with the contract laborers moving from one category to another upon completing, for example, every 5 years of service. However, it is important not to convert an unskilled worker to a semi-skilled worker or a semi-skilled worker to skilled category solely based on experience, as the skill level of the employee should be the determining factor.