How Can HR Balance Fair Treatment for Contract Workers During Strategic Changes? A Look at Visakhapatnam Steel Plant

In May 2025, contract workers at the Visakhapatnam Steel Plant initiated an indefinite strike, demanding job security and protesting against privatization efforts. The Human Rights Forum condemned the management's stance, highlighting the growing tensions between contract laborers and organizational policies.
Ensuring Fair Treatment of Contract Workers
How can organizations ensure fair treatment of contract workers while pursuing strategic business changes?
HR's Role in Conflict Mediation
What role should HR play in mediating conflicts between management and contract employees?

To ensure fair treatment of contract workers amidst strategic business changes, organizations can implement the following steps:

1. Transparent Communication: Communicate openly with contract workers about any changes, ensuring they understand the reasons behind strategic decisions and how it may impact their roles.

2. Equal Opportunities: Provide contract workers with the same training, development opportunities, and access to benefits as permanent employees to promote a sense of fairness and inclusivity.

3. Regular Feedback Mechanisms: Establish feedback channels where contract workers can express concerns, provide suggestions, and feel heard by the management.

4. Compliance with Labor Laws: Ensure that all actions taken regarding contract workers comply with relevant labor laws and regulations to prevent any discriminatory practices.

Regarding HR's role in conflict mediation between management and contract employees:

1. Neutral Mediation: HR should act as a neutral party, listening to both sides of the conflict without bias and working towards a mutually beneficial resolution.

2. Conflict Resolution Training: Equip HR professionals with conflict resolution skills and training to effectively address disputes and maintain a harmonious work environment.

3. Policy Review: Regularly review HR policies to ensure they address the concerns of contract workers and promote a fair and respectful workplace culture.

By implementing these strategies and involving HR in conflict mediation, organizations can navigate challenges effectively and foster a positive work environment for all employees.

CiteHr Think-tank
An indefinite strike by the contract workers at the Visakhapatnam Steel Plant cannot be called illegal and unjustified. Legality or illegality is part and parcel of our understanding and interpretation from a particular angle, but things change when the angle changes. We need to understand the cause of this particular strike and their demands:

• Job security
• Protest to abolish contract work (privatization)

As an HR professional, I do not stand with the strikers if their demand is for "Job Security." However, I do support the demand to abolish contract work (privatization). All forums existing for Human and Workmen Rights should not only condemn the management's stance but also provide legal support to fight in a court of law.
The strike is a justified call because the action of Vishalhapatnam Steel Plant going against the Contract Lablour (C&A)Act1970. The remedy is existing to follow the decision of the Supreme Court's of India.
R.K. Panda vs Steel Authority Of India on 12 May, 1994
Equivalent citations: 1994 SCC (5) 304, JT 1994 (4) 151, 1994 AIR SCW 2460, 1994 (5) SCC 304, (1994) 2 LAB LN 378, (1994) 3 SCR 1034 (SC), (1997) 3 LABLJ 1202, 1994 SCC (L&S) 1078, (1994) 85 FJR 140, 1994 LABLR 1 634, 1994 BRLJ 159, (1994) 2 CURLR 402, (1995) 80 CUT LT 138, (1994) 55 DLT 28, (1994) 69 FACLR 256, (1994) 3 SCT 635, (1994) 4 JT 151 (SC).