Dear Sir,
Pl. guide me that if a production company is working having contract labor 80% and 20% workers on company's roll. Can the contract worker go for union in that particular company and what will be the effect it union gets formed in that company.
Also pl. let me know what is the solution now for the company, if company don't want the union to be formed in their premises.
Regards,
Hem Dev Thapar
From India, Pune
Pl. guide me that if a production company is working having contract labor 80% and 20% workers on company's roll. Can the contract worker go for union in that particular company and what will be the effect it union gets formed in that company.
Also pl. let me know what is the solution now for the company, if company don't want the union to be formed in their premises.
Regards,
Hem Dev Thapar
From India, Pune
Dear Hem Dev Thapar
Please call all the Contractors and instruct them to advise their workers. The workers are the employee of the contractors. If the workers are interested to start the Union, they are having full right to organise the same in the office premises of the contractor and not on the PE's premises.
Please make sure that you are not directly paying anything to the workers of the Contractors and whatever dues to be paid only through the Contractors.
From India, Kumbakonam
1168Please call all the Contractors and instruct them to advise their workers. The workers are the employee of the contractors. If the workers are interested to start the Union, they are having full right to organise the same in the office premises of the contractor and not on the PE's premises.
Please make sure that you are not directly paying anything to the workers of the Contractors and whatever dues to be paid only through the Contractors.
From India, Kumbakonam
Dear Mr. S Bhaskar, Thanks very much for the guidence, but can you pl. let me know that what is the difference in organizing union in PE’s premises or contractor’s premises.
From India, Pune
From India, Pune
Dear Sirs,
Can anyone pl. let me know the defination of minimum members of a UNION, i am confused that is it 7 or 10% of total strength of workers in the company or 10% of total (Staff + workers) in company.
Regards,
Hem Dev Thapar
From India, Pune
Can anyone pl. let me know the defination of minimum members of a UNION, i am confused that is it 7 or 10% of total strength of workers in the company or 10% of total (Staff + workers) in company.
Regards,
Hem Dev Thapar
From India, Pune
Dear Hem
According to you, you have 80% of workforce are contract and 20% are on company's roll. It is not correct. You cannot engage the contract workmen on perennial nature of work. Perennial nature of work means if they work for more than 110 days in an year it is permanent nature of work. Labour departmetn, he authorities for giving license will not allow you engage the contract workmen on perennial nature of work. Even if you have license and also the contractors have license, if the govt.is prohibited the engagement of contract labour on routine/perennial nature of work, the contract entered between your management and the contractors are sham and they have to be treated as your workmen. The contract workmen can form a union and raise the dispute stating that the contract is sham, supervisory is vested with Management, engaged them on perennial nature of work etc., and they have worked for more than 240 days continuously without any break. Though the Apex court held that the contract/casual workmen cannot claim for absolving them in to rolls, if the court upheld that the contract is sham, the management have no other alternative to absolve them on the rolls.
In your case it is very difficult for your management to defend your case as you have 20:80 ration of confirmed and flexi work force.
G.K.Manjunath
Sr.Manager - HR
From India, Bangalore
According to you, you have 80% of workforce are contract and 20% are on company's roll. It is not correct. You cannot engage the contract workmen on perennial nature of work. Perennial nature of work means if they work for more than 110 days in an year it is permanent nature of work. Labour departmetn, he authorities for giving license will not allow you engage the contract workmen on perennial nature of work. Even if you have license and also the contractors have license, if the govt.is prohibited the engagement of contract labour on routine/perennial nature of work, the contract entered between your management and the contractors are sham and they have to be treated as your workmen. The contract workmen can form a union and raise the dispute stating that the contract is sham, supervisory is vested with Management, engaged them on perennial nature of work etc., and they have worked for more than 240 days continuously without any break. Though the Apex court held that the contract/casual workmen cannot claim for absolving them in to rolls, if the court upheld that the contract is sham, the management have no other alternative to absolve them on the rolls.
In your case it is very difficult for your management to defend your case as you have 20:80 ration of confirmed and flexi work force.
G.K.Manjunath
Sr.Manager - HR
From India, Bangalore
I fully agree with Mr. Manjunth said. Contract Labour are allowed to be employed only the jobs that are seasonal nature. if you are using contract labour in the regular production jobs that are perennial (continual) nature, then the law prohibits you to engage. That is why it is called Contract Labour (Regulation and ABOLITION), Act. The Act per se, the has been enacted to prohibit employers engaging contract labour in the production jobs.
Secondly, there is another point that supreme court held. In order to claim permanency, there must be an employer-employer relation. To establish this, whether you are exercising direct supervison and control on the employees of contract workmen.
In your case it looks like your officers (or supervisors) are the ones give directions to these "contract workers" to perform certain functions. This means, you have exercised your supervision and control over them and therefore employer-employee relation established between your organization and them. Thus, the contract will be labelled "sham" contract. Then you will be bound to taken them in your rolls.
If they have not worked for 240 days, then you have little hope to wind up the entire contract by issuing a letter to the contractor. Restrategize the entire process and launch accordingly. This needs a thorough R&D and Management's intervention.
And there is no question of your liking or disliking of forming an union (by the workers); it is their right. Any effort put in by management to prevent forming an union, will be viewed seriously by the authorities and it has got its own ramifications; be careful about it.
Balaji
From India, Madras
Secondly, there is another point that supreme court held. In order to claim permanency, there must be an employer-employer relation. To establish this, whether you are exercising direct supervison and control on the employees of contract workmen.
In your case it looks like your officers (or supervisors) are the ones give directions to these "contract workers" to perform certain functions. This means, you have exercised your supervision and control over them and therefore employer-employee relation established between your organization and them. Thus, the contract will be labelled "sham" contract. Then you will be bound to taken them in your rolls.
If they have not worked for 240 days, then you have little hope to wind up the entire contract by issuing a letter to the contractor. Restrategize the entire process and launch accordingly. This needs a thorough R&D and Management's intervention.
And there is no question of your liking or disliking of forming an union (by the workers); it is their right. Any effort put in by management to prevent forming an union, will be viewed seriously by the authorities and it has got its own ramifications; be careful about it.
Balaji
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
THE KERALA RECOGNITION OF TRADE UNION RULES, 2011.pdf
Character formation.doc
Create_team formation.zip