I have a manufacturing workshop, there is a labour union for 23 years now and the functioning has been smooth. Agreements made for 3 years and so on. I have a section of manufacturing which is now out of date and should be replaced by automatic cnc machines I plan to dispose complete workshop machinery and substitute it by a new couple of machines which will be run by engineers rather than workmen. The old machines have operators for years now and they will have to go as they wont be able to use the new technology ( its computer assisted etc). Now can i do this shut down an entire section of machines and people ? what is the law for this and what could be the unions argument for me firing the oldest workmen in the company due to this change. Kindly help
From India, Mumbai
From India, Mumbai
You can shut down the section that became outdated by paying closer compensation to the workmenemployed in the section under Sec.25-FFF of teh Industrial disputesAct. However, you have to seek permission of the government or issue notice of two months before sutting down depends up on the number of workmen employed in your factory.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
54B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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