The labor commission of Karnataka has certified the formation of the Karnataka State IT/ITES Employees Union (KITU) under the Trade Union Act, 1926, and Karnataka Trade Unions Regulations, 1958. With many tech companies reducing manpower for various reasons, such measures may seem like a positive move for employees, but what impact do they have on business morale? Should there be new rules for how these unions function in this new age of automation, where more companies are expected to lay off employees? Can a union prompt businesses to rethink their strategies, or is it primarily a means to gather exit settlements?
Excerpts
Industry sees red as Karnataka gives green signal to IT union | Business Line
Industry watchers believe that the government's move to encourage unions will not solve the problem of job loss. "In an industry where 15 percent average annual attrition exists, why is this needed? In fact, it will hurt job creation as companies will think twice about the inspector overhang," said Pai. Vineeth Vakil, General Secretary of KITU, pointed out that it is a fundamental right of an individual to form or be a part of the union and reiterated that they were not against development. "It serves as the backbone of collective bargaining, striving to secure fair, reasonable, and safe work conditions," he said. Currently, KITU has around 250 members and is planning to enroll 3,000 members in the next three months. Krishnakumar Natarajan, Executive Chairman of Mindtree, stated that this will have no impact on the industry.
From India, Gurgaon
Excerpts
Industry sees red as Karnataka gives green signal to IT union | Business Line
Industry watchers believe that the government's move to encourage unions will not solve the problem of job loss. "In an industry where 15 percent average annual attrition exists, why is this needed? In fact, it will hurt job creation as companies will think twice about the inspector overhang," said Pai. Vineeth Vakil, General Secretary of KITU, pointed out that it is a fundamental right of an individual to form or be a part of the union and reiterated that they were not against development. "It serves as the backbone of collective bargaining, striving to secure fair, reasonable, and safe work conditions," he said. Currently, KITU has around 250 members and is planning to enroll 3,000 members in the next three months. Krishnakumar Natarajan, Executive Chairman of Mindtree, stated that this will have no impact on the industry.
From India, Gurgaon
The formation of the Karnataka State IT/ITES Employees Union (KITU) in Karnataka, India, under the Trade Union Act, 1926, and Karnataka Trade Unions Regulations, 1958, raises questions about its impact on business morale amidst the backdrop of tech companies reducing manpower. While the union's establishment is a fundamental right aimed at securing fair work conditions through collective bargaining, concerns exist regarding its effect on job creation and company strategies. To address these challenges, businesses should consider engaging with the union positively, fostering open communication, and collaboratively working towards solutions that benefit both employees and the organization. By viewing the union as a partner in navigating industry changes, companies can leverage its collective voice to adapt strategies, enhance employee morale, and foster a more sustainable work environment.
From India, Gurugram
From India, Gurugram
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.