Mumbai court directs Sun Pharma to pay pending wages to 86 employees1 min read . Updated: 01 Aug 2016, 09:36 AM IST
Mumbai court holds Sun Pharma responsible for committing unfair labour practices after its merger with Ranbaxy Laboratories in March 2015
Mumbai: India’s largest drug maker Sun Pharmaceutical Industries Ltd has suffered a setback in its tussle with the Federation of Medical and Sales Representatives’ Associations of India (FMRAI) as the Maharashtra Industrial Court in Mumbai has directed the company to immediately release the pending wages of 86 employees, who joined Sun Pharma after its merger with Ranbaxy Laboratories Ltd.
The FMRAI, the largest grouping of medical sales representatives in the country, had filed a lawsuit against Sun Pharma in June, alleging that the company was indulging in unfair labour practices after it withheld salary and expenses of 86 sales representatives since May.
In the verdict released on Friday, the court noticed that Sun Pharma has committed unfair labour practices under Item 9 of Schedule IV of MRTU & PULP (Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices) Act, 1971.
A Sun Pharma spokesperson declined to comment as the matter is sub judice.
The FMRAI had alleged that Sun Pharma violated Section 9A in The Industrial Disputes Act, 1947, on the notice of change. The employees who joined Sun Pharma from Ranbaxy as part of the Sun-Ranbaxy merger was not given the notice of change and imposed unilateral changes in service conditions of 86 employees of one division STANCARE, an FMRAI spokesperson said.
Sun Pharma, which acquired Ranbaxy last year, has been facing protests from its sales force after it allegedly transferred and demoted some employees of the acquired company. The $3.5 billion Sun-Ranbaxy merger was completed in March 2015.
In January, the FMRAI filed a petition against Sun Pharma in the Punjab and Haryana High Court, alleging Sun Pharma’s violation of the directions given by the court at the time of the merger approval by transferring senior medical sales representatives of Ranbaxy.
In December, the FMRAI had filed a separate case against Sun Pharma under the MRTU & PULP, citing unfair labour practices regarding the transfer of 54 sales representatives, most of whom belonged to the FMRAI.