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Conciliation settlement, Exercises of Economics and Law

Example of the conciliation problem solved

Typology: Exercises

2022/2023

Uploaded on 07/16/2023

shrinivas-desai
shrinivas-desai 🇮🇳

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Classified as MB Internal
Conciliation Proceeding
Parties to Dispute
Gujarat Mico Pvt. Ltd ,INDIA (Employer)
Represented by General Manager,Director & Personal Officers
And
Workmen Union of Gujarat Mico Pvt. Ltd ,INDIA
Employees represented by Union Leader and two employees
Nature of Proceeding
Conciliation proceedings refers to the Industrial dispute between employer and their
workmen with regards to the payment of bonus & salary hike
Conciliation Process & Role of Conciliator
The Conciliation officer is the one who is appointed under the section 4 of the ID act
1947
Procedure and Powers of Conciliation officer are governed by the sec 2(e) & Sec-11
of the ID Act 1947
Proceeding of the conciliations are subjected the section 62 of the Arbitration and
conciliation Act 1996
The role of the conciliator are subjected to the Section 67 of the arbitration and
conciliation Act 1996
Opening Statement:
The notice dated 01June2022 by the office of the conciliation officer intimating parties
declaring intention to commence the conciliation proceedings before the conciliation
officer Ms. Vasanthi K , Department of Labor welfare ,Karmik Bhavan ,Ahmadabad
,Gujarat, and Parties were requested to appear in person before the conciliation
officer to record their statements related to the dispute.
On 24June 2022 , the Workmen union Leader Mr. Shrinivas Desai of Gujarat Mico
Pvt. Ltd ,INDIA along with two other employees named Ms.Shanmugapriya and Ms
Prajna B R representing Workmen Union of Gujarat Mico Pvt. Ltd ,INDIA appeared
before the conciliation officer seeking to resolve the industrial dispute
On the other hand , Ms. Sandhiya S General Manager , Ms. Priyanka Agarwal Director
along with other two personal officers of the Gujarat Mico Pvt. Ltd ,INDIA also
appeared before the conciliation officer submitting their counter statements related
to the disputes
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Conciliation Proceeding

Parties to Dispute Gujarat Mico Pvt. Ltd ,INDIA (Employer) Represented by General Manager,Director & Personal Officers And Workmen Union of Gujarat Mico Pvt. Ltd ,INDIA Employees represented by Union Leader and two employees Nature of Proceeding Conciliation proceedings refers to the Industrial dispute between employer and their workmen with regards to the payment of bonus & salary hike Conciliation Process & Role of Conciliator The Conciliation officer is the one who is appointed under the section 4 of the ID act 1947 Procedure and Powers of Conciliation officer are governed by the sec 2(e) & Sec- of the ID Act 1947 Proceeding of the conciliations are subjected the section 62 of the Arbitration and conciliation Act 1996 The role of the conciliator are subjected to the Section 67 of the arbitration and conciliation Act 1996 Opening Statement: The notice dated 01June2022 by the office of the conciliation officer intimating parties declaring intention to commence the conciliation proceedings before the conciliation officer Ms. Vasanthi K , Department of Labor welfare ,Karmik Bhavan ,Ahmadabad ,Gujarat, and Parties were requested to appear in person before the conciliation officer to record their statements related to the dispute. On 24June 2022 , the Workmen union Leader Mr. Shrinivas Desai of Gujarat Mico Pvt. Ltd ,INDIA along with two other employees named Ms.Shanmugapriya and Ms Prajna B R representing Workmen Union of Gujarat Mico Pvt. Ltd ,INDIA appeared before the conciliation officer seeking to resolve the industrial dispute On the other hand , Ms. Sandhiya S General Manager , Ms. Priyanka Agarwal Director along with other two personal officers of the Gujarat Mico Pvt. Ltd ,INDIA also appeared before the conciliation officer submitting their counter statements related to the disputes

The conciliation officer recorded and acknowledged both parties submissions to the dispute and provided brief introduction to both the parties regarding the options available in Alternative dispute system and its advantages compared to the regular court proceedings in resolving their disputes. It is further informed to parties about the procedures of conciliation proceedings and role of conciliation officer to arrive at speedy settlement of the dispute. Both parties upon getting convinced about the available option of alternative dispute system and its advantages in resolving their disputes requested conciliation officer to initiate the conciliation proceedings by conducting individual and joint sessions at convenient dates and intervals of all parties and agreed to complete the proceedings within 30 days. Further, both parties have signed the conciliation agreement before the conciliation officer accepting to initiate conciliation proceedings. Further, both parties submitted written statements in respect of their claims and disputes Statement submitted by Workmen Union The Representative of Workmen Union of Gujarat Mico Pvt. Ltd, INDIA humbly submits before conciliation officer that Workmen Union of Gujarat Mico Pvt. Ltd is a registered trade union. Registered on 10-Jan2010. Having 300 members to it. The main aim of trade union is to protect the welfare interest of both employees and employer. It submits that employees were entitled to yearly salary hike of 10% and yearly bonus of 20% as per the terms and conditions of service agreement between employee and employer. From the year 2020 to 2022 company did not pay the salary hike and bonus even after repeated requests demanding to pay the due amounts of salary hike and bonus Given the rise in the costs of living and the families of employees are greatly dependent on revised wages to fulfill necessities of life, Hence we are request conciliation officer to suggest body of Management to consider the demands of workmen to pay the due salary hike and bonus amount of last two years and regularize salary hike with revised pay structure for the current year. Statement submitted by Employer to counter the claims of Workmen The Representative of Management Board Gujarat Mico Pvt. Ltd ,INDIA humbly submits before conciliation officer that

Further, they submitted that the demands of the workmen are very meager to such a big company and the company is simply rejecting their demands to satisfy their personal ego problem with union members. The interest of the employer is to pay no salary hike for previous 2 years and subsequent until financial capacity of company is not good, even though, the salary hike is subjected to terms and conditions of the appointment contract. Bonus part to be paid as per the nominal rules of the Act and not anything above. & other facilities will continue as it was in the past. Further Workmen agreed to for any other better proposal from the company to resolve the dispute PRIVATE MEETINGS (10 July 2022 & 11 July 2022) The conciliator hold private meetings with each of the parties in separate session. Conciliator meeting with Complainant : Conciliator opined that the salary hike is regulated by terms and conditions of the appointment contract and it clearly states that the salary hike will be based subjected to the individual and company’s performance, as company is in financial distress and there is no allocable surplus or profit to pay the demand. Members of Workmen showed every intention to settle the matter, and agree to take 7.5% salary hike and nominal bonus as per the rules of the Payment of Bonus Act. With retrospective applicability. Conciliator meeting with the company: Conciliator opined that the salary hike and bonus is justifiable as due to inflation, consumer good prices is in rise. Also due to medical distress and there is financial burden upon the employee. Company performance is dependent upon the happy employee. Management Board also showed every intention to settle the matter and proposed to pay only 50 % of the salary hike and bonus demand prospectively. Further informed that the prospective demand of the employees can’t be possible considering the current economic situation. The conciliator, summarizing views of the both the parties, provided the list of options party may discuss The interest of the employer is to pay only 5% of the salary hike for next 2 years as financial capacity of company is not good, even though, the salary hike is subjected to terms and conditions of the appointment contract. Bonus part to be paid as per the nominal rules of the Act The interest of the employees is that the salary hike must be at 7.5% rate with agreement to take nominal bonus

Concluding joint session (24 July 2022) In the joint session the both parties has narrowed down there demand by understanding each other conditions and reasons cited in multiple meetings. Now Workmen is agreed for 5% salary hike, and nominal bonus amount of 8.33% Employer agreed to pay the nominal bonus amount with retrospective applicability Also Employees agreed to leave the demand of salary hike with retrospective applicability. Memorandum of settlement Date: 24 July 2022

  1. Parties agree to resolve the dispute by conciliation in accordance with Payment of Bonus act 1965
  2. Salary Hike agreed by the both the parties will be 5% applicable prospectively starting from the year 2022.
  3. Both agreed for Bonus rate as 8.33 % as there is no profit and allocable surplus with the company, however company agreed to compute the bonus by giving retrospective applicability
    1. Company agreed to all other facilities such as canteen, medical, transport & scholarship facilities without any change. Date & Place 24July 2022 & Bangalore Signature of Trade Union Signature of Management Board Signature of Conciliator