I am based in India, where our factory operates with a unionized workforce. Currently, our Long-Term Settlement (LTS) is due for renewal, and the top management has emphasized the need to complete the process at the earliest. However, we are facing a sensitive challenge that stems from a past industrial dispute.
Background of the Issue
A few years ago, a strike occurred at our factory, leading to the termination of 30 workers due to various reasons:
4 workers were dismissed for their involvement in a gherao (unlawful confinement of management personnel).
3 workers were terminated for serious misconduct within the factory premises.
11 workers were found to have submitted fraudulent documents during their hiring process, leading to their dismissal.
10 workers were transferred to other plant locations as per business requirements. However, they failed to report to their new assignments, which resulted in termination as per company policy.
2 workers were dismissed for making unauthorized public statements against the company in the media, which was a violation of company policies.
All terminations were carried out in full compliance with legal provisions, and the management has successfully upheld its stance in all legal proceedings, including at the Supreme Court.
Current Situation & Union's Stance
As we proceed with LTS discussions, the union has refused to sign the agreement unless the cases of these 31 terminated workers are addressed. They are being guided by an external advisor with political influence who appears to be strengthening their stance.
After multiple rounds of negotiations, the management decided to partially accommodate the union’s demand as a goodwill gesture. We agreed to reinstate 7 workers—comprising the 4 workers terminated for gherao and 3 workers dismissed for misconduct. This was positioned as a final concession in an effort to move forward with the LTS.
However, following a recent general body meeting, the union has escalated its demand and is now insisting on the reinstatement of all 31 workers, including those terminated for fraudulent documents, unauthorized media statements, and refusal to report at transferred locations. This new stance has created a significant roadblock in our negotiations.
Management’s Position
The Managing Director (MD) has firmly rejected the idea of reinstating all 31 workers, especially those dismissed on grounds of fraud, policy violations, and non-compliance with transfers. The concern is that reinstating such cases would set a negative precedent and weaken disciplinary standards in the organization.
Seeking Guidance
As an Industrial Relations (IR) professional, I am looking for strategies to navigate this deadlock. It can be anything creative and out of the box to get the union to sign the agreement.
From India
Background of the Issue
A few years ago, a strike occurred at our factory, leading to the termination of 30 workers due to various reasons:
4 workers were dismissed for their involvement in a gherao (unlawful confinement of management personnel).
3 workers were terminated for serious misconduct within the factory premises.
11 workers were found to have submitted fraudulent documents during their hiring process, leading to their dismissal.
10 workers were transferred to other plant locations as per business requirements. However, they failed to report to their new assignments, which resulted in termination as per company policy.
2 workers were dismissed for making unauthorized public statements against the company in the media, which was a violation of company policies.
All terminations were carried out in full compliance with legal provisions, and the management has successfully upheld its stance in all legal proceedings, including at the Supreme Court.
Current Situation & Union's Stance
As we proceed with LTS discussions, the union has refused to sign the agreement unless the cases of these 31 terminated workers are addressed. They are being guided by an external advisor with political influence who appears to be strengthening their stance.
After multiple rounds of negotiations, the management decided to partially accommodate the union’s demand as a goodwill gesture. We agreed to reinstate 7 workers—comprising the 4 workers terminated for gherao and 3 workers dismissed for misconduct. This was positioned as a final concession in an effort to move forward with the LTS.
However, following a recent general body meeting, the union has escalated its demand and is now insisting on the reinstatement of all 31 workers, including those terminated for fraudulent documents, unauthorized media statements, and refusal to report at transferred locations. This new stance has created a significant roadblock in our negotiations.
Management’s Position
The Managing Director (MD) has firmly rejected the idea of reinstating all 31 workers, especially those dismissed on grounds of fraud, policy violations, and non-compliance with transfers. The concern is that reinstating such cases would set a negative precedent and weaken disciplinary standards in the organization.
Seeking Guidance
As an Industrial Relations (IR) professional, I am looking for strategies to navigate this deadlock. It can be anything creative and out of the box to get the union to sign the agreement.
From India
As you have stated that all terminations were held valid by court.Now you have opted to accommodate the demand in part. Hence the Union will try to get additional benefits.
No comments on commitments made to them but you have to be firm and reject their demands and if possible withdraw the concession made in respect of 7 ex employees.
It is basically mind game.
You may look up the Bajaj case and take a call as per your management directive
Col.Suresh Rathi
From India, Delhi
90No comments on commitments made to them but you have to be firm and reject their demands and if possible withdraw the concession made in respect of 7 ex employees.
It is basically mind game.
You may look up the Bajaj case and take a call as per your management directive
Col.Suresh Rathi
From India, Delhi
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