Contract labour strike (un recognised union strike)
JAGADEESH
(Querist) 22 August 2012
This query is : Resolved
Ours is Bulk drug manufacturing company, recently we (Contractors) have received a strike notice from un recognized union for the following demands.
1. Minimum wage should be Rs.12,500/-
2. Free Food
3. Uniform 2 pairs per annuam per year
4. Form 23 under EPF Act, should provide to all, but some contractors given some are not given due to EPFO authorities not providing in time
5. ESIC Problems
6. Bonus should provide as like as 2 monthly gross salary they are getting
We (Our Contractors) have already made an agreement with the recognized union upto 3 years, but now can we go for an agreement with the un recognized union. Our Management is very strict and they never entertain non compliance under any labour laws.
In this situation, what step we should take.
Regards,
Jagadeesh
Kirti Kar Tripathi
(Expert) 22 August 2012
Though the contract labour work for your establishment but they are not your direct employees. Being principal employer, your responsibility to ensure that the contractor should comply all the formalities of law and provided all the benefits as are available to these employees under statutory provisions of law.Neither these employees nor any union can compel a principal employers to go for negotiation by giving extra benefits to these employees.However, the union can seek their regularization/permanency and benefits as are available to other regular/permanent employees of the establishment, if these employees are engaged on the jobs, which directly related with the manufacturing and last through the year.
Guest
(Expert) 23 August 2012
From the term "we (our contractors)" it is not clear whether you have put your query as a Principal Employer (Company) or on behalf of the contractors of the Company. Please clarify the same at first.
Sudhir Kumar, Advocate
(Expert) 23 August 2012
By emplying labour through contract you gain nothing but lega experience.
Whether the union is recognised or not. You are in trouble.
The authorities of EPFO and ECIC will not even wait for the arrival of labout inspector as they have therie own assesement and adjudication procedure.
JAGADEESH
(Querist) 23 August 2012
Thanking you for your replies and here we means principal employer...
Kirti Kar Tripathi
(Expert) 23 August 2012
If you employ labourers through contractor and all the formalities as required under Contract Labour (regulation and Abolition) Act are completed. You need not to go for any negotiation with union.
Kirti Kar Tripathi
(Expert) 23 August 2012
In case, union or labour department insist, you flatly refuse and ask to refer the matter for adjudication. legally you are not bound to negotiate.
Sudhir Kumar, Advocate
(Expert) 24 August 2012
For PF and ESI, these corporations hav egot own adjudication process and may not even recognise any negotiation.
Practically the liabilities arising out of alabiout legislation cannot be recuded be negotiation. So as advised by Mr Thipathi it will be beter to go for adjudication where the issue will be settled even if you loose but the negotionas in given circumstances may lead you in a web.
Kirti Kar Tripathi
(Expert) 24 August 2012
Dear Sudhir
The problem,under the query relates with the question as to whether the principal employer should go for talk with union(Un-recognized) in respect of contracted workman. In case any problem arises, definitely it will be an industrial dispute and has to be deals under the provisions of Industrial Disputes Act or State Act dealing with industrial disputes. The principal employer has some immunities from compliance of formalities of certain provisions of labour laws under the provisions of the Contract Labour (Regulation and Abolition Act. whether union can encroach its right under the garb of long term demand notice, this question has to be decided by the Industrial Tribunal only. EPF and ESI Act are separate Acts to which compliance are necessary and their compliance is based on the payment made to the workers(employees] whether it be made by the principal employer or the contractor. It has nothing to do with demand notice. Inclusion of these demands in demand notice has no relevancy.
Sudhir Kumar, Advocate
(Expert) 25 August 2012
Yes he has no locus standie to talk to the said union but at the same time he is not on a strong position if violation is there. Further if the contractor of employer have not completed the formalities then it may add to his troubles. I agree that inspite of these adds facing adjudication will be better (even at the risk of paying lawful dues) for him as he will be saved from bullying tactics and evne the defaulting contractor will be under check of court.
Guest
(Expert) 25 August 2012
As you stated, if you are a Principal employer, you need not entertain demands of the striking workers, as only the contractor is liable to meet with the demands of his workers. In case the contract workers go on strike, it is the liability of the contractor to replace with adequate substitutes for the absentee workers. However, as a Principal employer, you are responsible only to ensure fulfillment of conditions of minimum wages by the cotractor and other provisions as prescribed in the EPF/ESI and other labour laws along with terms of agreement entered in to with the labour contractor.
JAGADEESH
(Querist) 30 August 2012
Thank you all for your valuable suggestions...
