Industrial Relations & Labor Laws
Sanghvi Manufacturing has been in the business of manufacturing steel coils. You have been a worker in the factory for the last 5 years. The management had always been friendly and supportive of the workers. Now a new management team has come in and they don’t have the kind of connect with the workers that the earlier team had. The workers are worried about how things will be in the future and are concerned about how to put across their requirements to the new management team. While discussing these developments in the factory with your neighbor, you learnt that one way of communicating with the management is by forming a trade union. Your neighbor suggested that you and a few others form a union in Sanghvi Manufacturing to put forth your demands.
You have called all the workers in the factory to explain to them the concept of trade union as well as steps to be undertaken to create the same in the factory.
Question: Make a detailed note of what you will speak to the workers – including benefits of a trade union as well as the process for registering the Union (10 Marks)
Company ABC employed Ram Prakash, 35 years old, as a worker in their factory earning Rs.2500/- per month. One day the Factory Manager received a call from the local hospital saying that Ram Prakash had been admitted as an accident case and has suffered permanent total disablement. The Manager reached the hospital and understood that Ram Prakash had met with an accident under the influence of alcohol. On further investigation, it was also found that Ram Prakash had been on leave on that day and had met with the accident while travelling on personal work.
Question: What compensation is the company liable to pay? Which Act is this covered under? For Compensation calculation the factor can be taken as 197.06.
Company MNO is a motorbike manufacturer with their factory in the Cholapur industrial belt. The factory has 40% of the workforce on its permanent payroll and the remaining 60% consists of contract workers and trainees. The contract workers are paid only the minimum wage whereas the permanent workers are being given higher wages linked to the work they do. The workers have been asking for higher wages and appointment of contract workers as permanent workers in the factory. Tensions got escalated when 4 workers, who had approached the management to allow them to form a union, were terminated. Hundreds of workers went on strike. Workers in other factories in the industrial belt also joined them.
Wages being low in India make it an attractive manufacturing hub for companies, but workers feeling the effects of rising inflation have been agitating for higher pay.
Most companies in this area have preferred to use the Works Committee to handle labour issues and have avoided recognizing trade unions.
Has the management followed the principles of healthy industrial relations policy including being legally compliant? (5 Marks)
Assume that you were one of the workers working in this company. What are your views on how to approach the problems faced by you and your fellow workers? What legal recourse do the workers have in such a situation?
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