Navigating a Union Standoff: How Can We Resolve This LTS Negotiation Deadlock?

I am based in India, where our factory operates with a unionized workforce. Currently, our Long-Term Settlement (LTS) is due for renewal, and the top management has emphasized the need to complete the process at the earliest. However, we are facing a sensitive challenge that stems from a past industrial dispute.

Background of the Issue

A few years ago, a strike occurred at our factory, leading to the termination of 30 workers due to various reasons:

- 4 workers were dismissed for their involvement in a gherao (unlawful confinement of management personnel).
- 3 workers were terminated for serious misconduct within the factory premises.
- 11 workers were found to have submitted fraudulent documents during their hiring process, leading to their dismissal.
- 10 workers were transferred to other plant locations as per business requirements. However, they failed to report to their new assignments, which resulted in termination as per company policy.
- 2 workers were dismissed for making unauthorized public statements against the company in the media, which was a violation of company policies.

All terminations were carried out in full compliance with legal provisions, and the management has successfully upheld its stance in all legal proceedings, including at the Supreme Court.

Current Situation & Union's Stance

As we proceed with LTS discussions, the union has refused to sign the agreement unless the cases of these 31 terminated workers are addressed. They are being guided by an external advisor with political influence who appears to be strengthening their stance.

After multiple rounds of negotiations, the management decided to partially accommodate the union's demand as a goodwill gesture. We agreed to reinstate 7 workers—comprising the 4 workers terminated for gherao and 3 workers dismissed for misconduct. This was positioned as a final concession in an effort to move forward with the LTS.

However, following a recent general body meeting, the union has escalated its demand and is now insisting on the reinstatement of all 31 workers, including those terminated for fraudulent documents, unauthorized media statements, and refusal to report at transferred locations. This new stance has created a significant roadblock in our negotiations.

Management's Position

The Managing Director (MD) has firmly rejected the idea of reinstating all 31 workers, especially those dismissed on grounds of fraud, policy violations, and non-compliance with transfers. The concern is that reinstating such cases would set a negative precedent and weaken disciplinary standards in the organization.

Seeking Guidance

As an Industrial Relations (IR) professional, I am looking for strategies to navigate this deadlock. It can be anything creative and out of the box to get the union to sign the agreement.

As you have stated, all terminations were upheld by the court. Now that you have opted to accommodate the demand in part, the union will likely try to secure additional benefits. While I have no comments on commitments made to them, you must be firm and reject their demands, and if possible, withdraw the concession made regarding the 7 ex-employees. This is essentially a mind game. You may want to look up the Bajaj case and decide based on your management's directive.

Regards,
Col. Suresh Rathi

Hello, it seems that yours is a large establishment that can afford the termination of 31 employees and continue its business. I am also from a PSU, the second-largest in India regarding the number of employees. The management should have entered into an agreement before reinstating 7 employees. Now, since the union is not bound to sign the LTS, it is very difficult to negotiate but not impossible.

Approaching Union Leaders

The top leader of the union (President/General Secretary or the Top Leader of the Federation) must be approached to bring an end to the deadlock. If the situation does not improve, the management may negotiate with the other trade union(s) operating in the establishment, if any. LTS is not only the need of the establishment but more than that, it is the need of all the workforce.

Direct Communication with Workers

So, being an HR personnel, the HR Head should contact the workers directly and make them aware of the situation that the management is serious about LTS and enhancing their salary and other perks, but the "X" Union is not making it happen, which is harming their interest. It is for sure that most of the workers do not support the ego of TU leaders and they are with them because the management, especially HR people, never interact with them directly. They need the support of TU leaders to get their legitimate needs fulfilled. This gap gives an edge to the TU leaders. I have practiced this and have been very successful in my service period.

Future Considerations

In the future, please keep in mind that until an agreement is signed by the union, no agenda of discussion should be implemented. A bilateral agreement should be a "Win-Win" situation for both parties.

Best wishes.

Hi, the first thing I would like to mention is that the management should not have considered taking back 7 workers whose dismissals were upheld by the court already. Having decided to take back those 7 workers, before reinstating them, the management should have signed the settlement and then taken them. That was also missed.

Now, you have to think of some workable strategies depending upon the floor situation:

a) Direct all supervisory/managerial staff to talk to the workers to put pressure on union leaders to close the settlement.

b) Initiate disciplinary action in genuine cases on the shop floor with clear cases to put pressure on the union.

c) Drive the opinion makers on the shop floor to put pressure on the union to conclude the LTS.

d) Offer some one-time payment if the union agrees to sign the settlement on or before a particular date.

e) If possible, explore the possibility to sign the individual 18 (1) settlement and offer the benefits to particular workers who sign.

f) Refer the matter to the Conciliation and try to close it at the earliest.

g) Organize some trust-building exercises/training for the workers in batches.

h) A senior officer of the company can have a private meeting with the union leaders and have a detailed discussion with them to explain why reinstating the dismissed workers is not possible.

If nothing is workable, just leave it for some time and focus on production. Keep taking action on erring workers genuinely and as per procedure. As someone rightly said, a salary hike is more important to workers than concluding the settlement for management. But, come what may, please do not suggest taking back the balance dismissed workers. It will ruin the morale of the organization in the long run.