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Corporate Fraud

Ashut Engineers Ltd circumvented labor laws to avoid honoring Collective Bargaining Agreement

The management of the rogue engineering firm Ashut dishonored a Collective Bargaining Agreement between the firm and the workers union in the most despicable way.

A source that worked in the firm who is privy to the corrupt dealings says that the company issued a redundancy notice, fired all workers in some departments, then rehired them.

“The Board of Ashut Engineers Limited has taken a decision to separate the business of their Furniture and Fabrication Division from the Plastics Division due to the losses being incurred in the Plastics Division and subdued return on investments. The majority of Directors have decided not to continue their association and further investments in the Plastics Division thus leaving no other option than to split and restructure the Company, therefore, to affect this transaction, the Company has decided to restructure operations of the business which also includes termination of employment contracts under the Plastics Division on account of redundancy…’ the redundancy statement as seen by says in part.

All the above was meant to try to beat the labour laws, the source intimated. 

“They were then asked to re-apply for jobs so that CBA terms are not valid and the mistreatment can go on,” the source wrote.

The redundancy was the brainchild of the rogue Indian director Amit Shah. The letter was also signed by him.

A collective bargaining agreement (CBA) is a contract reached as a result of negotiations between representatives of a union and the employer.

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