Retrenchment Criteria & Procedure - having problem with 10 employee's Attitude and absenteeism and low productivity

Dear Seniors,

We are an Engineering Industry Manufacturing Commutators for the Automobile Industry and Railways. Presently, we have 45 permanent workmen, apart from contract laborers. Out of these 45 employees, we are facing issues with the attitude, absenteeism, and low productivity of 10 employees. We are unable to take any action as they are part of a union. Our management is considering retrenching these employees. Kindly advise on the procedure to be followed for this retrenchment.

Thank you.

Retrenchment cannot be done on a pick-and-choose basis. The principle of 'last come, first to go' applies; otherwise, such retrenchment will be invalid and illegal. If there are disciplinary issues concerning these employees, then you may have to go for disciplinary action.

Let me speak based on my experience. You don't have to take action against all; pick the weakest among them in terms of the capacity to resist and take quick action. It will serve as a warning to others, and many would fall in line.

Dear YD GOPAUL,

I agree with @KK!HR. You can't retrench them just like that because the policy of "Last come, first out" will apply; otherwise, it will be illegal. You can take disciplinary action against them. Please select the weakest person, give them a notice, and document the substantial evidence. Then, you can take further action after a domestic enquiry. This approach may help in handling others more easily.