Long Term Settlement - Views Expected From Experts

Dear All:

It is time for entering into a long term wage settlement with the Trade Union. It is a practice of the Management by imposing a term of the wage settlement to the effect that the Union should co-operate to improve the productivity in whatever innovation methods / technology introduced by the Management by which only the Management may consider any wage revision by way of wage settlement. Now, it is expected that the Trade Union will demand that the Management not to impose such clause in the terms of settlement, as their contentions that they have no further ways to improve the productivity and say that all possible methods / technologies have already been adopted / introduced by both the wokmen and the Management. Now my query is 1. Are they right legally in their stand of demanding the Management Not to impose such clause in the wage settlement? 2. In such an event, whether the Management defer the wage revision / entering into a wage settlement. 3. Any other possible querry to be answered in this aspect. Expect experts advise as to how the situation be handled diplomatic way without any injury on both the sides.

Hi Venkatraman,

It was an old practice that at the time of wage settlements unions raised demands of different types which were discussed bi-laterally and some times tri-laterally and settled accordingly.

Later, it has been appreciated by managements that wage negotiation/long term settlement is not the prerogative of the union only it is also duty bound to meet the relevant demands of the management for increase in productivity/profitability etc. Such being the case please appreciate that the management is not here to dole out profits to the union/workmen and sustain loss due to this extra go of money as per the LTS. In such a situation workmen also consider the management as a milching cow which is responsible to provide milk etc to them and they owe no responsibility to the management.

Please rest assured that there can be no occasion when you/ your management reaches the conclusion that the workmen or the management or both are performing at their optimum and scope of any further improvement does not exist.Accordingly, please ready your parallel charter of demands and put across to the union while negotiating their demands. May be that in such case the duration of negotiations may be spread over more time in terms of months.

Regards

S.K.Johri