Industrial relations in modern manufacturing increasingly involve complex triangular relationships between the principal employer, contractors, and contract workers. While the contractor is legally the employer of contract labour, operational realities often place the principal employer at the centre of industrial disputes.
This case study examines a strike by contract workers engaged in hazardous waste handling in a chemical manufacturing plant. What began as a wage and service-condition dispute with the contractor quickly escalated into a serious operational risk for the principal employer, as the work involved hazardous waste management in a Major Accident Hazard (MAH) installation.
The situation raised a critical industrial relations dilemma: Should the principal employer participate in negotiations and sign a settlement with contract workers without creating legal exposure to claims of direct employment?
This article analyses the case from an industrial relations and labour law perspective and proposes a structured decision framework for principal...
