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Anonymous
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Hello friends,

I am working in a limited organization where we have 5 unions operating at our plant. There have been five wage settlements completed already, and recently, we received another charter demand from the union. I have heard that once 5 settlements have been carried out, there will be no further wage settlements required.

I would like to confirm if there are any such provisions available. Is there a limitation on wage settlements with the union, or will they continue indefinitely as long as the organization exists?

Kindly advise on the above.

From India, Hyderabad
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KK!HR
1656

There is no such statutory rule or regulation that only 5 wage settlements are possible. The ID Act 1947 states that once a demand notice is given, it is to be followed up as per the laid-down procedure. There is no exception to this rule.
From India, Mumbai
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This is in continuation of what Mr. KK!HR has rightly observed. The questioner's statement that there is no more possibility of any further settlement on wages since five settlements were already concluded, combinedly read with the number of trade unions and the number of settlements, which are also incidentally five, gives me the impression of whether the management signed separate five settlements on wages having the same terms and conditions separately with each union. At times, it happens because of inter-union rivalry and the management's anxiety to implement the settlements effectively.

On the contrary, had all the settlements been bilaterally signed for different periods of successive duration with any one of the unions based on the then prevailing majority of membership under Section 18(1) of the IDA, 1947, the possibility of a fresh charter of demand by any other union due to realignment of membership of workers during the currency of the last settlement cannot be ruled out. Of course, the validity of such a fresh dispute on the same issues covered by a subsisting bilateral settlement can be decided in adjudication only based on the fairness of its terms and subsequent material changes in the circumstances. Therefore, strictly there cannot be any statutory ban on such a move of any trade union.

Besides, as an employer or an HR manager, the questioner should recognize the fact that wages cannot remain stagnant; the real value of money wages varies according to the fluctuations in the general price level. Workers will always demand more in terms of wages and other employment benefits, which can be quantified in terms of money. It is for the employer to maintain a balance between the hike in the cost of production and the corresponding raise in productivity through innovative strategies.

From India, Salem
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