I have a manufacturing workshop; there has been a labor 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 I have a section of manufacturing which is now out of date and should be replaced by automatic CNC machines.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 of complete workshop machinery and substitute it with 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 won't be able to use the new technology (it's computer-assisted, etc.).
Now, can I shut down an entire section of machines and people? What is the law for this, and what could be the union's argument for me firing the oldest workmen in the company due to this change? Kindly help.
From India, Mumbai
Now, can I shut down an entire section of machines and people? What is the law for this, and what could be the union's argument for me firing the oldest workmen in the company due to this change? Kindly help.
From India, Mumbai
You can shut down the section that became outdated by paying closer compensation to the workmen employed in the section under Sec.25-FFF of the Industrial Disputes Act. However, you have to seek permission of the government or issue a notice of two months before shutting down, depending on the number of workmen employed in your factory.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
57B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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