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HR PROF.
10

We are a six year old reputed auto ancillary operating from Gurgaon and online feeding to OEMs.
Beside around 150 pmt. operators; we are engaging around 200 contractual workers (some of them are engaged on core business function some on support function)also.
Few of them are more than four year old.
Last year we\'ve faced strike from pmt. operators related to their long term settlement issue.
Since last one year we are witnessing different behavior pattern of contractual workers also.
Recent IR scenario in my unit is as under :
1- CWs are seriously united. few opinion leaders are emerged amongst them.
2- CWs are indirectly supported by pmt. operators.
3- Like pmt. operators they too try to disturb shop floor discipline.
5- Indirectly they are asking equal wage and welfare facilities which we are giving to our pmt.(we are giving them subsidised canteen serices to them also).
6- They are also planning to demand for same diwali gift, bonus etc. as we give to pmt. o

From India, Jaipur
Kritarth Consulting
200

Recent IR scenario described by you:

Issue 1:- Contract Labors are united.

Position:- C Ls may join or Form a Registered Trade Union with few taking active part as Opinion Leaders.

Issue 2:- CLs are indirectly supported by pmt. operators.

Position :- Any person employed as CL may be directly or indirectly supported by others including permanent operators.

Issue 3:- Like pmt. operators they too try to disturb shop floor discipline.

Position:- Maintaining Workplace Discipline is and effectively dealing with Indiscipline in accordance with Standing Orders is Management's Responsibility, Prerogative. Discipline is Non-Negotiable.

Issue 4:- Indirectly C Ls are asking equal wage and welfare facilities which we are giving to our pmt.(we are giving them subsidized canteen services to them also).

Position:- C Ls are entitled to amenities at par with other Employed Persons. Wages payable to CL is governed by Minimum Wages Act & the Rules framed thereunder However read the Terms stipulated in the Labor License obtained by /issued to the Contractor / Sub Contractor as for same and or similar Work / Job same wages are payable..

Issue 6:- They are also planning to demand for same Diwali gift, bonus etc. as we give to pmt.

Position:- Gifts are not a part of Wages. However, past practices/precedent would determine distribution of Gift.

You may revert if you so desire

Kritarth Consulting Pvt Ltd.

29-8-13

attribution https://www.citehr.com/469784-behavi...#ixzz2dNBjb588

From India, Delhi
HR PROF.
10

Thanks M/s Kritartha,
Based on your reply ; following queries are still in my mind :
1- If they form a registered union then :
. Are we bound to recognize them.
. After registration; can they give COD to mgmt. pertaining to their demands.
. Is mgmt is liable/responsible for receiving COD and start negotiation meeting with them.
. Suppose mgmt did not pay attention on their COD or did not show interest to negotiate with them ; can they approach labor officer of the are.

2- What is the interest behind if CWs are indirectly supported by PWs (where as both are two separate class of working hands).
3- Can we initiate formal disciplinary actions (issuing warning letter, charge sheet, suspension, domestic enquery etc.) in writing.
We don\'t have certified standing order and managing with model standing order.
4- As per individual contract issued; manpower contractor has to pay min. wage only.
Almost every industry is paying min. wages.
As sugg

From India, Jaipur
Dinesh Divekar
7879

Dear HR Prof,

You call yourself "HR Prof", then you supposed to be strong in HR theory. From the HR Management standpoint, it is clear failure to manage human resources. If You want to give second class treatment or step-brotherly treatment to certain section of employees then these things are bound to happen. In fact forget about theory of HR but then you have failed on basic principle of equality itself.

What stops you from bringing wage parity and giving similar facilities to both types of workers? What % savings you do by maintaining this disparity?

Why companies keep casual employees on their roll? One simple reason is that it gives them flexibility to remove them in case of slump in business activity or industrial decline. Since they are the soft target, you wanted to rob them further?

Disparity between permanent workers and casual workers was main reason behind labour unrest that engulfed Maruti Suzuki factory at Manesar. It was a great wake up call to entire India. But it appears that your company has not heeded this wake up call. Then god bless you, this is what I can say.

My viewing are very strong but then these are needed too.

Dinesh V Divekar

From India, Bangalore
Kritarth Consulting
200

Dear Sirs

First, let us dwell on your Queries raised in your 2nd Posting:

Query 1:- If they form a registered union then, is the Employer bound to recognize them ?

Position:- Recognition of a Registered Trade Union is not Automatic and is the Prerogative of Employer.

Upon Recognition, the Recognized Union becomes privy to certain Privileges granted by the

Employer including Collective Bargaining & Joint Consultations etc.

Query 2:-. After registration; can they give COD ( Charter of Demands) to Management & is the

Management liable / responsible for receiving COD and start Negotiation.

Position:- Management is liable to act on COD submitted by a Registered & Duly Recognized T U.

Query 3:- What is the interest behind if CWs are indirectly supported by PWs (where as both are two

separate class of working hands).

Position: Management Team ought to know "What is brewing" at the Workplace and around their Business

(Business Intelligence. Caught Unawares is unhelpful. Workers quite naturally are free to relate

with with each other particularly to promote their Common Interests and there exists No

Separateness, as it were.

One distinguishing feature of Contract Labors is that CLs can only employed on the Muster

Rolls of a Contractor / Sub-Contractor for Work which is Not Regular / Not of Permanent

Perennial Nature to determine that the CL (R & A) Act & the Rules specify yardsticks. Thus the

nature of Work / Duration of Work in Question as Declared in Forms IV & V by the Principal

Employer and the Contractor/Sub-Contractor and submitted for Obtaining a Proper Labor

License assumes Importance. Please check the Licenses obtained by your C/ Sub-Cs and

issued by the Labor Commissioner's Office after due verification.

Applying for a Labor License by a C /SC on the basis of the Certificate issued by P E

(Establishment) to employ CL is declaring that the Work/Job against which CLs are to be

employed is Not of a Permanent & Perennial Nature and any falsification of facts would amount

to Perjury. Employers Beware of that.

Query 4:- Can Employer/Management initiate formal Disciplinary Actions (issuing warning letter, charge-

sheet, suspension, domestic enquery etc.) in writing ?

Position:- Management must initiate prompt Disciplinary Action once/immediately any act of Misconduct

occurs or is reported. The Certified Standing Orders is a Mandatory Legal Requirement ( Model

SO are applicable for First Six Months from the Date of Commencement of Business Operations

not for eternity) & specifies various Acts of Misconduct ( illustrative) for which the delinquent

Employed Person is liable to punishment only after the laid down Disciplinary Procedures have

been followed in sequence like i) Issuing Charge Sheet or an Explanation Letter, ii) Ordering an

Enquiry ( Domestic Enquiry in which the Principles of Natural Justice have been followed), iii)

allowing Charge- sheeted Employee to take part in Enquiry Proceedings, iv) Award of Punishment

based on the Enquiry Report.

Query 5:- We do not have SO and managing with model standing order.

Position:- Frame Draft Standing Orders applicable to your Establishment post haste & submit the same for

Certification by adhering to the procedure for the purpose & obtain Certification. Instruct the

Contractors / Sub-Contractors who employ CLs in their own Establishment to examine whether

they also are legally required to have their own C S O.Then, they will deal with their C L

employed on their Muster Rolls as & when misconduct occurs or is reported.

Query6:- As per individual contract issued; manpower contractor has to pay min. wage only. Almost every

industry is paying min. wages.

Position:- Payment of Wages to C L is as per the Minimum Wages notified by the respective State Govt.

through the Gazette Notifications and as applicable for the Wage Periods. There is no immunity

unless so exempted by law.

It is imperative & expedient for your Organization to formulate, for Long Term Benefit, a pragmatic approach to the Issues raised in the Two Posts in consultations with a reliable Management Service Provider. Before the Issues become Problems.

Our Business is to Set Right your Business. We are available for Consultations

Kritarth Consulting Pvt. Ltd

Delhi Office



31-8-2013, 6.30 p.m.

From India, Delhi
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