Answer to Question #188209 in Management for Vaibhavi

Question

Swan Pharmaceuticals is a leading company with production unit in 2 states and HO in Mumbai. Being in the essential business, the factories were not shut during the lockdown period for pandemic. However, the staff in HO did not report to work for a few months and received their salaries in full. However, the workers in the factory worked all through the pandemic. Now, the workers are asking for extra compensation for the months they worked during the pandemic, however, the management feels, offering full salaries was enough. Workers have given a notice for a two days’ strike with a date. The young union leader Prakash wants approach the management and suggest Collective Bargaining. Please answer the following questions in reference to this case.b. Do you think Swan Pharmaceuticals has favourable conditions for collective bargaining?

Answer 1

No. Even though receiving their full salaries from the factory workers was a good thing considering other professionals received reduced salaries, these workers work in an essential service provider where instead of business falling in sales, it saw an increase in sales. The workers took the risk of going to work on a daily basis with the pandemic still around them, while workers in HO stayed at home for months. The workers have an upper hand therefore in collective bargaining.