Situation with Union Settlements
I am currently working as the Manager of HR at Ltd Company. My query pertains to the fact that we have two unions registered under the Trade Union Act. One of them is the Recognized Union, but the majority of workers are members of the second, non-recognized union. Our settlement has been pending since last year. Due to heavy losses incurred by the company, the management is unable to bear any additional financial burdens through a new settlement. Consequently, the management is not inclined to engage in negotiations for a new settlement and is not considering declaring the company as a Sick Industry. However, the recognized union has filed a complaint before the Assistant Labour Commissioner (ACL) for conciliation to achieve an amicable settlement.
Management's Perspective
The management believes that, given the significant losses, we should continue with the current settlement for another year. In this scenario, the management anticipates that if the authorities issue a failure report, the union may proceed to refer the matter to the Industrial Court for a new wage settlement, where the management can demonstrate the cumulative losses over the years.
Potential Legal Consequences
In light of these circumstances, what potential legal consequences could arise if the management follows the aforementioned course of action or pursues alternative strategies to prevent legal entanglements?
Thank you and regards,
Shaikh Ijaj
Manager HR
From India, Nashik
Acknowledge(0)
Amend(0)
5I am currently working as the Manager of HR at Ltd Company. My query pertains to the fact that we have two unions registered under the Trade Union Act. One of them is the Recognized Union, but the majority of workers are members of the second, non-recognized union. Our settlement has been pending since last year. Due to heavy losses incurred by the company, the management is unable to bear any additional financial burdens through a new settlement. Consequently, the management is not inclined to engage in negotiations for a new settlement and is not considering declaring the company as a Sick Industry. However, the recognized union has filed a complaint before the Assistant Labour Commissioner (ACL) for conciliation to achieve an amicable settlement.
Management's Perspective
The management believes that, given the significant losses, we should continue with the current settlement for another year. In this scenario, the management anticipates that if the authorities issue a failure report, the union may proceed to refer the matter to the Industrial Court for a new wage settlement, where the management can demonstrate the cumulative losses over the years.
Potential Legal Consequences
In light of these circumstances, what potential legal consequences could arise if the management follows the aforementioned course of action or pursues alternative strategies to prevent legal entanglements?
Thank you and regards,
Shaikh Ijaj
Manager HR
From India, Nashik
Acknowledge(0)Amend(0)
Let us first list down points of disputes as below:
1. The currently recognized union does not have the majority.
2. Can the company extend the existing settlement for another term based on financial losses?
3. The management is not ready to declare the company as a sick unit.
4. Are there any steps to be taken on the management side based on the above?
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
1. The currently recognized union does not have the majority.
2. Can the company extend the existing settlement for another term based on financial losses?
3. The management is not ready to declare the company as a sick unit.
4. Are there any steps to be taken on the management side based on the above?
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
5TH LONG TERM WAGE SETTLEMENT of Nalco PSu MOU as signed on 8th May 2011.pdf