Illegitimate union demand

It is a golden opportunity for you and the organization as till date you are paying consolidated salary now you have a chance to bifurcate the salary.

If you are paying consolidated salary on what amount you are paying and deducting the PF and how you are arriving leave encashment, Bonus etc., hence better divide the salary in to Bais, DA, HRA, Conveyance and any other allowances you feel.

In wage negotiations first of all you have come to a conclusion for the total Hike and you should reserve the right of distribution.

There are cases where the settlements took the time for years hence don't worry and don't be in hurry. In negotiations if the other party knows that you are in hurry then they will take the advantage.

Regards - kamesh

Dear Mr. Das,

As rightly suggested by Mr.KRao, you can bifurcate salary for ESI PF purposes, DA is not mandatory, but if they are demanding the special allowance which Govt is declaring each 6 months, then, that is mandatory.  There are no hard and fast rules in negotiations therefore you have to decide what is best int he interest of your company and employees for harmonious industrial relations.  At times awarding a small  rise may lead to lot of peaceful relations amongst management and workers and in addition gaining the confidence of union, which will return your favour in some other form when you need it.

Thanks to Mr. Rao & Sawant for their valuable input. I agree to both of you but my point was something else:

"All I need help from all the forum experts is the LEGAL NOTE where it is mentioned that DA is not mandetory to pay or any Clause under Wage Act etc. or any reference of any legal Notices/Documents or any reference of legal books."

Can anyone help me in this??

Regards,
Raja.

Can anybody help me in this matter???