Salary re-structuring (Union Concern)

 Question:

Whether Salary re-structuring can be done without consulting the present Union and also when the conciliation is in progress?

Answer:
No, the salary re-structuring amounts to change of service conditions as per the provisions of the Industrial Dispute Act.

Since the above would amount to change in the service conditions and the altering/ re-structuring of salaries & benefits is one of the items included in the fourth schedule of the Industrial Disputes Act.

The above requires compliance with section 9A of the Industrial Disputes Act. The said section mandates that before effecting any change in service condition, 21 days' notice shall be given with regard to the intended change. The notice thereof will have to be sent to the conciliation officer. The conciliation officer may intervene and initiate conciliation proceedings.

The proposed change cannot be made during the pendency of the conciliation proceedings. Any change can be made in such circumstances only after the receipt of the report of failure of conciliation proceedings by the government and before the matter if referred to for adjudication.

Once the matter is referred to for adjudication change cannot be made during the pendency of the adjudication proceedings without the permission of the court.

Thus, the procedure prescribed under 9 A is cumbersome and the purpose of issuing the notice itself may not be served. The best course is to have an understanding or a settlement with the Union before effecting the change.