Transfer of industrial workers - is it possible to issue transfer order without redressed the grievances?

I am C. Ganesan working in IOCL Trichy BP as a blue-collar workman in grade II as an operator. I joined on 09.08.2012, and since then, I have been serving in Trichy BP.

After the automation of equipment, the redeployment of workmen occurred. The total number of blue-collar workmen at this location is 21. Out of these 21, 16 employees are senior foremen, and the remaining five workmen are operators. In late December, our union leaders from IOEU SR informed us that five blue-collar workers would be transferred to another location based on their date of least joining. Consequently, the five employees, including myself, submitted a representation to the management requesting to remain in the same serving unit. This representation was made to the GM HR through our location in charge on 30.01.2021, till 25th March. However, on 25th March, the management issued transfer orders to the five blue-collar workers to a station around 200 km away.

I would like to clarify that the remaining 16 employees have been serving at the same location since their joining in 1996. The employment agreement states that transfer to any department, location, or anywhere in India is permissible. Therefore, are they not obligated to accept transfers? Notably, in response to an RTI query about the transfer policy, the management stated that IOCL does not have a specific transfer policy and that transfers are made based on business requirements.

In this scenario, my question is whether the "first come, first go" principle should be applied. I believe this principle typically applies to retrenchment situations.

Regarding the grievances submitted on 30.01.2021 by the five blue-collar workers for retention or transfer, is it appropriate for the management to issue transfer orders without addressing these grievances first?

We submitted an appeal to the Director HR of IOCL yesterday, but have not yet received a response. It is worth mentioning that out of the five blue-collar workers, one employee, which is myself, is an Ex-serviceman. I have highlighted my military service background and various transfers in my representation, yet the management proceeded with the transfer order.

At Trichy BP, there is a shift allowance, but the transferred location operates on a general shift only, without this allowance. Can I cite this financial loss as a reason for requesting retention?

How can we halt the transfer order?

The company is free to transfer you to any other unit if there is a business reason, which in this case is automation resulting in a lesser number of employees required. As long as the transfer is not malafide, you cannot complain, especially when the appointment letter says that you can be shifted to another unit. The fact that you will no longer be able to get a shift allowance is not a reason to not transfer you to another location.

Even your union has accepted the solution of the management. You can always raise a dispute under the Industrial Dispute Act, but I don't see the management changing its decision. (Note, I am not an expert on the Industrial Dispute Act.)

By the way, would you have preferred that they terminated you instead of transferring you to another unit?

Dear Mr. C GANESAN,

In jurisprudence, in the case of retrenchment of employees, the last appointed person should be the first to be retrenched. It is true that the 'first come last go' principle is a well-accepted principle. However, in this case, the reverse principle applies: last come, first go.

I do not see anything wrong with the transfer of five persons to another unit of the employer. The decision to transfer was made with the consent of the Union of IOCL Trichy.

The management has the right to terminate the workmen if they do not comply with the transfer order. The transfer provides alternative employment for the workmen due to the position becoming redundant because of automation or the adoption of new technology, which is beneficial for production and business.

In this situation, you should consider the transfer as a well-thought-out decision by the management, with the consent of the registered Trade Union of the company.

Your grievance is not acceptable as it lacks substance. When there is no valid grievance, the question of redressal does not arise.

Retrenchment would remain an option for the employer if the workmen do not adhere to the transfer order and their positions become redundant.

You have the option to challenge the transfer order based on your objections. Now, you must decide on your course of action.