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Dear friends,
We are running a health care services industry which is having a trade union. The Management at this global recession period, does not want to go with the renewal of 18/1 wage settlement by holding talks, responding to the given charter of demands by the union.
Hence the Management, decides to keep the previous wage agreement itself for another 3 years time, without any change in it.
Is it possible to keep the same agreement by only changing the validity period of the agreement? If union does not agree to keep the same previous wage settlement, what would be our stand to move further? or what possible ways the union may react. Any one please advise.
regards
V Ganesan

28th October 2009 From India , Madras

Hi,
In my view it would be perfectly all right for the old agreement to be extended for a further period, provided the Union gives its consent to it. However, if the Union is wanting the agreement to be revised on the expiry of the ageement, a fresh charter of demands will have to be placed before the management and negotiations started. The Management may take a stand that no revision is called for keeping in view its financial condition. On the other hand the Union will have to justify as to why it is demanding a revision.
If negotiations fail, the matter will go in for conciliation and finally before adjudication.
This is the normal procedure in all cases of wage revision.
There are organisations where the Unions are weak and go by the dictates of the management. In this situation, the old agreement gets extended with the benefit of dearness allowance and other linked payments.
Cyril
11th December 2009 From India , Nagpur
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