Under the bi-lateral negotiations of wage settlement between the Unions and the Management, the agreement came to be expired on 31.12.2008. Normally, the basic pay drawn on 31.12.2008 becomes the basis for negotiation for concluding the fresh agreement. The Management is saying the old basic derived from the expired agreement is not required to be considered. The Management wants to make a new start by chopping the basic salary and extending other salary making just 5% hike to justify the demands of the Union.
Whether Management can do this? Is there a ruling of any courts that old basic cannot be cut down . What are legal consequences for not honouring the expired agreements. Englihtened people can throw some light please.
Venkatesh
