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ACKNOWLEDGEMENT.
I would like to express my kindly appreciation to all those who provided me the
possibility to complete this report.
A special gratitude I give to our Module 11 Lectures, Mr.Mahendra Silva and
Ms.Dhanushka Madawatte Whose contribution in stimulating suggestions and
encouragement, helped me to coordinate my case study especially in writing this
report.
Finally I would like to acknowledge all of them who are the help me to doing this
case study successfully.

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EXECUTIVE SUMMARY.
According to this case study talk about the Lanka Fashion Leather Products Company.
There was a labour force of about 150 employees working in the factory. At the
beginning there was no works trade union but about six months ago the workers formed a
trade union.
According to the case explain regarding trade union action and how to react management
for the trade union actions. There are have some kind of problems between management
and trade union and explain how to get answers to using labour laws to prevent these
issues in the working environment.
There have some mismatching understand and explain what are the HR managers
responsibility to deal with the trade union and employees and also who to settle the
disputes according to labour laws.
There have talk about ‘vacation of post’, Industrial dispute act, trade union act and other
legislations.
According to the current situation author identified what are the issues and
recommendations for the related issues to overcome and develop the company strategies
to achieve the organizational goals and objectives in effectively in mention time frame.

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According to this case study first of all I would like to introduce what is the trade union.
Under the Trade Union Ordinance of 1935, a “trade union” is defined as any association or
combination of workmen or employers, whether temporary or permanent, having among its
objects one or more of the following objects:-
 the regulation of relations between workers and employers, or between workers and
workers or between employers and employers; or
 the imposing of restrictive conditions on the conduct of any trade or business; or
 the representation of either workers or employers in trade disputes; or
 the promotion or organization or financing of strikes or lock-outs in any trade or
industry or the provision of pay or other benefits for its members during a strike or
lock-out, and includes any federation of two or more trade unions;
A “worker” is defined as any person who has entered into or works under a contract with an
employer in any capacity, whether the contract is express or implied, oral or in writing, and
whether it is a contract of service or of apprenticeship, or a contract personally to execute any
work or labour and includes any person ordinarily employed under any such contract,
whether such person is or is not in employment at any particular time.
Registration of Trade union
The trade union should apply for registration within 3 months from the date it was established
by making an application to the register of the trade union using Form B provided in the
ordinance. To be resisted the trade union must full fill the following.
- Should have at least 7 members.
- The application must be sign by 7 members.
- The objects, rules and regulations of the union must not conflict with any of the
provisions of the trade union ordinance and should not be unlawful.
- The name of the trade union should not be identical with any of the existing trade
unions.

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01. Whether it is necessary to notify the employer before forming a trade union.
Unions are employee organizations that bargain for better wages, benefits, and
conditions for the workers they represent. Lanka fashion leather Products Company
also have this common purpose to form a trade union.
There are no legal requirement for informing to the employer before forming a trade
union. But I think if there have good relationship with the company it’s better to
inform to the management. But company management doesn’t thing about their
employees suitable way is forming the trade union without informing and after that
give the notice about the trade union.
02. Should the employer have given an opportunity to the union to discuss these matters
with the management? It is a legal requirement.
Yes.
Management have responsibility about their employees. When there have any
problems regarding the employee’s management should have given opportunity to
talk with the employees to solve the problems which they have.
03. Was the employee under a legal obligation to deduct union membership fees from the
salaries of member employees?
There are no legal obligation to deduct union membership fees from the salaries of
member employees. When the union request to the management to deduct their
membership fees deduct from the salary when the management accept the request can
deduct from the salary. It’s depend on the mutual understanding among management
and trade union.
Because of from the basic salary only can be deduct EPF/ETF and other officially
deduction.

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04. What are the demands which the employer was bound to grant under the law? What
are the situations where the employer had acted contrary to law as alleged by the
union?
Trade union inform about the requirements to the management. But the management
doesn’t give a chance to discus with them.
Trade union inform about the strike before 14 days to start. But management doesn’t
care about the strike.
Management send a letter to who are the participate to the employees to strike vacate
their post. It’s not legal.
When get the action from the labour courts doesn’t care about that and still vacate the
post and employees doesn’t enter the company.
05. Are there any demands in the list submitted by the union which you consider as
unreasonable?
According to the list there are no unreasonable request. There have list of ideas which
the trade union represent the rest of the employees in the company. The trade union
have rights to represent their ideas to the management of the company. They are
request their ideas dose not full fill from the management.
The management have responsibility to accept or reject the ideas and give the solution
or their recommendations for the unaccepted request from the employees.
According to the list the management neglected the employee’s requirements.

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06. Is it lawful for the employer to have sent ‘Vacation Of Post’ letters to the striking
employees?
The trade union inform to the management of the company regarding their strike. But
the management doesn’t care about that. When the government sector organization
plan to doing a strike they have to inform their management before 2 weeks. But
privet sector there are no time period to inform but this company trade union inform
about the strike before 14 days.
Because of that the employer when sent the letters to employees who participate the
strike ‘’vacation of post’’ was not a legal.
Vacation of post means in the case of an employee who has an absented himself
without leave or authority, the employer usually finds him as having vacated the post
asserting his absence as a desertion or abandonment of work. However in court case it
is often started that the intention to vacate or abandon the employment must co-exist.
07. Was the final letter sent to the union by the HR manager legal?
Not legal.
Because trade union inform to the employer regarding the strike and after the strike
there had a legal part to solve the dispute. The commissioner try to settle the dispute
but it failed. Therefore commissioner referred the matter to the minister and the
minister refer to the dispute for settlement by an arbitrator appointed by him. On
hearing the step taken by the minister the union called off the strike and returned to
work but they can’t go to the factory. When the settlement got from the arbitration
employer have responsibility to do things according to that. When they doesn’t agree
to the order have to appeal. But the management doesn’t do that and send the letter to
vacate to post to employees. It’s not legal.

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08. What do you think are the two offences the employer would have committed under
the Industrial Dispute Act for the commissioner to have instituted legal action against
the directors of the company?
Yes.
Industrial dispute act provides another means of settling disputes through labour
tribunal. Any workmen can invoke the jurisdiction of the labour tribunal on the
termination of service. Any aggrieved workmen or on behalf of the workmen a trade
union can make an application within 6month of the termination of services to the
labour tribunal seeking relief. A labour tribunal is empowered to here both parties
evaluate evidence and make a just and equitable order.
The party who does not satisfied with the order of the labour tribunal can make an
appeal to the provincial high court within one month of the order. When an employer
is appealing against the order it is required to deposit the money ordered as
compensation or in the case of an order for reinstatement, 12 months’ salary of the
employee in as account specified by the court.
09. As the company was an independent institution registered under the companies act it
is lawful to have instituted action against the directors without instituting action
against the company?
Any company formed as independent institution they have responsibility to treat their
employees well. Because of that I think there have legal obligation to take an action to
the directors. Because they fail to accept the trade union request and commissioners
settlement action.
Therefore any business most important part is employees. Because of that
management have responsibility to listen them. They inform about the trade union

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actions and other things but management doesn’t give time to discuss with them.
Because of that there have legal obligation to get action for the management.
10. Was there a possibility of avoiding this unfortunate situation if the employer had been
more flexible with the union? If so what do you think the company should have done?
Yes.
Any company stable with better employer and employee relationship among each
other’s. in this company management doesn’t think about their employees. When
employees formed the trade union the management have to do build good connection
with the trade union and identify what are the disputes which employees have. So that
management can settle the employees needs and wants to satisfy them.
But this company doesn’t do that. Because of that case unfortunately become this
matter. According to the list given by the trade union there have request management
can be easily settle. Human resource department is most important department in any
organization and also human resource manager is most responsible person to connect
with the employees and identify what are the problems they have. But in this
company HR manager act without responsibility. When the HR manage discuses with
the trade union there are not increase the problem like that.

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11. Sudden decision of the union officials to call off the strike which was carried on for a
long time was considered by certain members as a betrayal of the union struggle.
What is your option?
It is depend on the situation of the strike. When conducting strike a long time may be
it effect for the employment of the employees. In that kind of situation most suitable
thing is got a chance to discuss with the management and get middle point of their
rights. Because of that both parties can be safe.
Sometime the leaders doing things for their personal wellness. It’s not good thing for
the strike and its due to start dispute internally.