Respected All,
In our branch, we develop machines for automation. Our old permanent workers do not cooperate in working on these machines; they think overtime may be reduced in the future due to automations. Therefore, we have hired new contract-based workers for these machines. We have decided to assign 8 hours of work to the old workers with no overtime. We pay them above minimum wages.
As a result, these workers have become angry and have demanded overtime pay or a salary increase of 4 to 5k; otherwise, they threaten to stop working. Please advise on the appropriate course of action.
What are the legal actions or rules regarding this matter?
Waiting for your response.
Raju Shriname
From India, Chicalim
In our branch, we develop machines for automation. Our old permanent workers do not cooperate in working on these machines; they think overtime may be reduced in the future due to automations. Therefore, we have hired new contract-based workers for these machines. We have decided to assign 8 hours of work to the old workers with no overtime. We pay them above minimum wages.
As a result, these workers have become angry and have demanded overtime pay or a salary increase of 4 to 5k; otherwise, they threaten to stop working. Please advise on the appropriate course of action.
What are the legal actions or rules regarding this matter?
Waiting for your response.
Raju Shriname
From India, Chicalim
Hi,
They can't stop the work. Try to speak with them, have an open dialogue, and understand their issues. Also, check if you are paying them fair wages. Minimum wages do not mean fair wages. Do the benchmark and make a decision; after all, people will consider the benefits they would lose. In extreme stages, if they stop the work, you can take action for their misconduct. Please refer to the Model Standing Orders and Industrial Dispute Act.
Regards,
From India, Pune
They can't stop the work. Try to speak with them, have an open dialogue, and understand their issues. Also, check if you are paying them fair wages. Minimum wages do not mean fair wages. Do the benchmark and make a decision; after all, people will consider the benefits they would lose. In extreme stages, if they stop the work, you can take action for their misconduct. Please refer to the Model Standing Orders and Industrial Dispute Act.
Regards,
From India, Pune
Dear overtime is not a right, and they cannot stop work if you are not giving them overtime. If they do so, then it comes in the definition of an illegal strike. If they do so, issue a notice to them that you are on an illegal strike and no wages will be paid to them. You can even declare a lockout for those workers against an illegal strike and take action against them.
From India, Delhi
From India, Delhi
Technically, they are not entitled to claim overtime as a matter of right. Since they are paid above minimum wages, they cannot complain of any non-compliance insofar as wages are concerned. Even though you have introduced automation, you have not retrenched any workmen, so they cannot also complain of any adverse change in their service conditions. So legally, you need not worry. However, they may raise an industrial dispute about wage fixation. You can prepare your ground to meet their claims. You need not do some exercise like whether they really deserve any increase, if not why, if, how much, what are the wages paid to similarly situated employees in same or similar industries in and around your place, etc.
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
There is some typing mistake. I have written you need nit do some exercise. Pl.read itas 'you need to do some exercise.' B.Saikumar HR & labour Law advisor Mumbai
From India, Mumbai
From India, Mumbai
Dear Raju,
Do you have a union in your company? If yes, then you may have some union leaders. Sit together and try to resolve issues. If they do not agree, then in the final case, you have to make a decision. Before doing so, ensure you are well-prepared with your basics. If you think they have stopped work and are considering going on strike, your management can take a legal stand against them because overtime is not their right.
Thank you.
From India, Pune
Do you have a union in your company? If yes, then you may have some union leaders. Sit together and try to resolve issues. If they do not agree, then in the final case, you have to make a decision. Before doing so, ensure you are well-prepared with your basics. If you think they have stopped work and are considering going on strike, your management can take a legal stand against them because overtime is not their right.
Thank you.
From India, Pune
Hi,
From my point of view, first, you should negotiate with them (like discussing the company's situation, productivity, and financial status, and explaining to them) to try to resolve the issue. If they do not comply with your instructions after negotiation, you should issue a show-cause notice to all based on the model standing order.
From India, Chennai
From my point of view, first, you should negotiate with them (like discussing the company's situation, productivity, and financial status, and explaining to them) to try to resolve the issue. If they do not comply with your instructions after negotiation, you should issue a show-cause notice to all based on the model standing order.
From India, Chennai
Hello Mr. Raju,
To start with, even an informal discussion with them about the pros and cons might help. As pointed out by our experts, they do not have a sound case, but still, their hearts have to be won over.
V. Raghunathan
Navi Mumbai
From India
To start with, even an informal discussion with them about the pros and cons might help. As pointed out by our experts, they do not have a sound case, but still, their hearts have to be won over.
V. Raghunathan
Navi Mumbai
From India
Dear,
Just one thing. When was the wage revision done for them? Recently or years and years ago... You must also consider their point of view in arriving at a suitable decision. Inflation is on the rise yearly, and the government is struggling to keep it under control. A kilogram of good quality rice cost Rs. 20 some 6 or 7 years ago, but the same cost has risen to Rs. 45 now. Not to mention the quality of rice given free of cost in some states.
Do a thorough home study and analyze their logic in their demand. Is it reasonable or unreasonable? You may not need to heed all their demands, but I am sure you can accommodate some of them. By the way, how's the bottom line of your company (I mean financial fundamentals)?
Weigh the cost-benefit of their demands and make a suitable decision.
Best Wishes.
From India, Mumbai
Just one thing. When was the wage revision done for them? Recently or years and years ago... You must also consider their point of view in arriving at a suitable decision. Inflation is on the rise yearly, and the government is struggling to keep it under control. A kilogram of good quality rice cost Rs. 20 some 6 or 7 years ago, but the same cost has risen to Rs. 45 now. Not to mention the quality of rice given free of cost in some states.
Do a thorough home study and analyze their logic in their demand. Is it reasonable or unreasonable? You may not need to heed all their demands, but I am sure you can accommodate some of them. By the way, how's the bottom line of your company (I mean financial fundamentals)?
Weigh the cost-benefit of their demands and make a suitable decision.
Best Wishes.
From India, Mumbai
No one can resist bringing in some system by the management, provided it helps enhance productivity, reduce process time, etc.
There was a time when computers were introduced in government sectors where conventional methods of accounting, report generation, etc., were used. People were apprehensive that the introduction of computers would hamper their very existence and that people would lose jobs. What happened today? Computers have become part of day-to-day operations, without which the whole office would come to a standstill.
Similarly, when any system is introduced, there will be some resistance. It is essential to explain to them the advantages. It is highly recommended that organizations move towards automation in the future.
In the wake of the non-availability of skilled manpower, we are constrained to compromise on quality and recruit below-standard workers. Even if we recruit them, there is no guarantee that they will stay with the organization for a longer time. It is the order of the day.
People acting with vested interests shall not be encouraged at all. At the same time, if they resort to industrial unrest (whether legally or illegally), you must be prepared to combat the situation by having alternative methods to ensure uninterrupted production. What your action plan is, is what your management must consider.
V. Balaji
From India, Madras
There was a time when computers were introduced in government sectors where conventional methods of accounting, report generation, etc., were used. People were apprehensive that the introduction of computers would hamper their very existence and that people would lose jobs. What happened today? Computers have become part of day-to-day operations, without which the whole office would come to a standstill.
Similarly, when any system is introduced, there will be some resistance. It is essential to explain to them the advantages. It is highly recommended that organizations move towards automation in the future.
In the wake of the non-availability of skilled manpower, we are constrained to compromise on quality and recruit below-standard workers. Even if we recruit them, there is no guarantee that they will stay with the organization for a longer time. It is the order of the day.
People acting with vested interests shall not be encouraged at all. At the same time, if they resort to industrial unrest (whether legally or illegally), you must be prepared to combat the situation by having alternative methods to ensure uninterrupted production. What your action plan is, is what your management must consider.
V. Balaji
From India, Madras
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