SC allows firms to negotiate with staff on lockdown wages-THE HINDU-13-06-2020

Content: Lockdown wages, Supreme Court allows firms to negotiate with staff.

Details:

*The Supreme Court on Friday asked factory owners and other private industrial establishments to negotiate terms and enter into settlements with their workers on the payment of wages during the lockdown period.

*A Bench, led by Justice Ashok Bhushan, observed that industry cannot survive without its labourers and workers.

Resumption of work:

*This is without prejudice to the rights of the employees regarding unpaid wages for these 54 days. It said that employers whose factories had continued to work during the lockdown, though not to full capacity, may also enter into talks.

*Employers and workers could seek the help of Labour Department authorities and trade unions to reach a settlement.

*The court highlighted that the government, too, had an obligation to ensure conciliation between private employers and their workers for the smooth running of industrial establishments.

No inforced action:

*Lockdown had an equally adverse effect on the employers as well as on employees,” the court observed. With this, the court continued its existing order that no coercive action should be taken against private factory / industry owners who were unable to pay wages to workers during the lockdown.

* Justice Bhushan had questioned the government's authority to compel private employers to pay full wages to their workers.

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Paper-GS-3

Category: ECONOMY

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