I have a manufacturing workshop; there has been a labor union for 23 years now, and the functioning has been smooth. Agreements are made for 3 years and so on. I have a section of manufacturing that is now outdated and should be replaced by automatic CNC machines. I plan to dispose of the complete workshop machinery and substitute it with a new couple of machines that will be run by engineers rather than workmen. The old machines have had operators for years now, and they will have to go as they won't be able to use the new technology (it's computer-assisted, etc.).
Shutting Down a Section: Legal and Union Considerations
Now, can I shut down an entire section of machines and people? What is the law for this, and what could be the union's argument for me firing the oldest workmen in the company due to this change? Kindly help.
From India, Mumbai
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Shutting Down a Section: Legal and Union Considerations
Now, can I shut down an entire section of machines and people? What is the law for this, and what could be the union's argument for me firing the oldest workmen in the company due to this change? Kindly help.
From India, Mumbai
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You can shut down the section that became outdated by paying closer compensation to the workmen employed in the section under Sec. 25-FFF of the Industrial Disputes Act. However, you have to seek the permission of the government or issue a notice of two months before shutting down, depending on the number of workmen employed in your factory.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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57Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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