You are here

ECA cautions companies on lay-offs

Published: 
Thursday, March 17, 2016

The Employers Consultative Association (ECA) is calling for legislation to be expanded or introduced to provide for lay-offs. 

Commenting following the closure of the ArcelorMittal steel plant at Point Lisas, which has put 644 workers on the breadline, the ECA said the requirement of a company to treat with a recognised majority union for collective bargaining is stipulated by the Industrial Relations Act (IRA) section 40.

Where a recognised majority union or an employer fails to comply with this section, that party is guilty of an industrial relations offence and liable to a fine of $4,000

The ECA said according to a ruling of the Industrial Court, it is necessary for companies to ensure they pay particular attention to process when about to embark on a set of actions that can drastically affect the lives of its employees. 

“Failure to do so will result in the court, which stands as a guardian for the conduct of proper industrial relations, acting in accordance with the IRA,” the group said.

Disclaimer

User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff.

Guardian Media Limited accepts no liability and will not be held accountable for user comments.

Guardian Media Limited reserves the right to remove, to edit or to censor any comments.

Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.

Before posting, please refer to the Community Standards, Terms and conditions and Privacy Policy