Laws Involved:

Industrial Dispute Act, 1947: The industrial dispute act regulates the labour laws initiated
across the whole country it is applicable for the work man, trade union and the employer. It
includes dispute like retrenchment discharge of employee, social security and many more. In
the case of BAJAJ Auto this law was violated by the employer. The wages demanded by the
workers were not met by the employer and there was no legal proceeding held with respect to
change in employment terms. The trade union reacted in an aggressive manner and the opinion
both the sides were not taken into consideration. There was a mismatch between the interest of
the workman and the employer. The work man demanded allotment of share at a discounted
rate and the company had categorically rejected the demand. During the conciliation
proceeding no party has the right to take action or intervene in the external affairs but the
workman and the trade union violated the law and decided to put constant pressure on the
management to increase the wage. Several workers were suspended on the basis of disciplinary
action and the worker demanded reinstatement of the suspended workers. The settlement broke
down in the initial phase of the agreement and both the parties started opting for competitive
approach towards collective bargaining.
Standing Order Act 1946: This act requires the employer to submit a written employment
terms and it should be put scrutinized way by the security officer and the representative of the
workman. The main objective is to minimize the friction between the management and workers
in the industrial undertaking. It includes issues like requirement, discharge and disciplinary
action. BAJAJ Auto suspended the employees, but no legal framework was established the
disciplinary action against act of misconduct requires following the principle of natural justice.
In this case no domestic inquiry was held and the 22 workers suspended on the ground of
disciplinary action without any notice. Also, the company denied paying the suspended works
the compensation based on the rule the workman is entitled to receive a compensation of 50%
of the total wage. So, the disagreement between the management and the workman increase
the friction and hence emergence of industrial dispute the workman slowdown the production
process in the Chakan plant and because of this the employment terms which were accepted
by the workers in the year 2010, were breached. There was a nine-year contract which is
supposed to expire in 2019. If there is any disparity in the contract, then the worker should
issue a legal notice to the employer regarding their dissatisfaction in the employment terms and
condition.