INDUSTRIAL RELATIONS

RETRENCHMENT AND DISCLOSURE & UNFAIR LABOUR PRACTICES

CONTENT

1.RETRENCHMENT 1.a Meaning 1.b Nature of retrenchment 2. CLOSURE 1.a Meaning 3.UNFAIR LABOUR PRACTICES

RETRENCHMENT

Section 2(00) of the Industrial Disputes Act, 1947, defines

Retrenchment to mean: The termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but not include Voluntary retirement of the workman;or Retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or

Termination of the service of the workman as a result of the non-renewal of the contract of employment between, the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or Termination of the service of a workman on the ground of continued ill-health

Retrenchment is something akin to downsizing. When a company or government goes through retrenchment, it reduces outgoing money or expenditures or redirects focus in an attempt to become more financially solvent. Many companies that are being pressured by stockholders or have had flagging profit reports may resort to retrenchment to shore up their operations and make them more profitable. Although retrenchment is most often used in countries throughout the world to refer to layoffs, it can also label the more general tactic of cutting back and downsizing. Companies can employ this tactic in two different ways. One way is to slash expenditures by laying off employees, closing superfluous offices or branches, reducing benefits such as medical coverage or retirement plans, freezing hiring or salaries, or even cutting salaries. There are numerous other ways in which a company can employ retrenchment. These can be non-employee related, such as reducing the quality of the materials used in a product, streamlining the process in which a product is manufactured or produced, or moving headquarters to a location where operating costs are lower. The second way in which a company may practice retrenchment is to downsize in one market that is proving unprofitable and build up the company in a more profitable market. If one market has become obsolete due to modernization or technology, then a company may decide to change with the times to remain profitable.

Naure of retrenchment
1.General Discharge of surplus labour or staff by the employer on account of a long period of lay-off or rationalisation or production processes or improved machinery or automation of machines or similar other reasons

2.Retrenchment and lockout These have some common phenomena of continuing business. Both are the acts of employer-workmen relationship But there are different on basis of the status of employment relationship. 3.Retrenchment and lay-off these have some elements in common both are declared by the employer both required statutory compensation but they differ in many other respects. 4.Retrenchment and closure of business These have some common features. Both are the measures of economy by the employer: both require statutory compensation.

CLOSURE

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A closure is the closing of the business permanently or temporarily for an indefinite period by the management. In case of closure, the employer is liable to pay compensation as if it is retrenchment. Definition Sec.2(cc) of the Industrial Disputes (Amendment) Act,1982 defines closure to mean the permanent closing down of employment or part thereof In case of closure on account of unavoidable circumstances beyond the control of employer, the maximum compensation payable to a workman is his three months salary.

UNFAIR LABOUR PRACTICES

The judicial interpretation of the expression unfair labour practice has given rise to two main views,viz.,the narrow and the extensive. NARROW VIEW *if unfair labor practice is confined merely to trade union activities, then the worker who is not the member of any union and as such, having no trade union activities will not be entitled to any relief under the Industrial Disputes Act, 1947 when they are discharged. EXTENSIVE VIEW *any order made in bad faith with an ulterior motive arbitrarily or with harshness is an instance of unfair labour practice.

UNFAIR LABOUR PRACTICES On the part of employers

threatening workmen with discharge or dismissal, if they join a trade union threatening a lock-out or closure, if a trade union is organised granting wage increase to workmen at crucial periods of trade union organisation, with a view to undermining the efforts of the trade union at organisation an employer taking an active interest in organising a trade, union of his workmen To establish employer-sponsored trade unions of workmen

discharging or punishing a workman, because he urged other workmen to join or organise a trade union discharging or dismissing a workman for taking part in any strike (not being a strike which it deemed to be an illegal strike under this Act) changing seniority rating of workmen because of trade union activities refusing to promote workmen to higher posts on account of their trade union activities giving unmerited promotions to certain workmen with a view to creating friction amongst other workmen, or to undermine the strength of their trade union discharging office bearers or active members of the trade union on account of their trade union activities To discharge or dismiss workmen by way of victimisation; by falsely implicating a workman in a criminal on untrue allegations of absence without leave; in utter disregard of the principles of natural justice in the conduct of domestic enquiry or with undue haste; for misconduct of a minor or technical character, without having any regard to the nature of the particular misconduct or the past record of service of the workman. To abolish the work of a regular nature being done by workmen, and to give such work to contractors as a measure of breaking a strike. To transfer a workman mala fide from one place to another, under the excuse of following management policy. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work. To show favoritism or partiality to one set of workers regardless of merit. To employ workmen as "badlis" casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workmen. To discharge or discriminate against any workman for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute. To recruit workmen during a strike which is not an illegal strike. Failure to implement award, settlement or agreement. case on false or fabricated evidence;

To indulge in acts of force or violence. To refuse to bargain collectively, in good faith with the recognised trade unions. Proposing or continuing a lock-out deemed to be illegal under this Act

UNFAIR LABOUR PRACTICES On the part of workmen

advise, support or instigate any strike deemed to be illegal under this Act. coerce workmen to join a trade union or refrain from joining any trade union, picket in such a manner that non-striking workmen are physically debarred from entering the work places indulge in acts of force or violence or intimidation in connection with a strike against non-striking workmen or against managerial staff For a recognised union to refuse to bargain collectively in good faith with the employer. To indulge in coercive activities against certification of bargaining representative. To stage, encourage or instigate such forms of coercive actions as willful "go slow", squat on the work premises or "gherao" of any of the members of the managerial or other staff. To stage demonstrations at the residences of the employers or the managerial staff members. To motivate or indulge in willful damage to employer's property. To indulge in acts of force or violence or to hold out threats of intimidation against any workman with a view to preventing him from attending work.

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