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FMRAI steps up agitation against pharma cos for violating SPE Act
P B Jayakumar, Chennai | Friday, December 10, 2004, 08:00 Hrs  [IST]

The Federation of Medical and Sales Representatives Associations of India (FMRAI) has launched a nationwide agitation against nine pharmaceutical companies, allegedly for appointing employees in violation of the Sales Promotion Employees (SPE) Act, 1976, and for harassing the employees.

The companies that are subject to the ire of FMRAI at present are Pfizer, Sun Pharma, Jagsonpal of New Delhi, Merck & Co, Hyderabad-based Biological Evans, Goa-based CFL Pharmaceuticals, Khandelwal laboratories, Mumbai, Nicholas Piramel and AstraZeneca, Bangalore. Further, FMRAI is in the process of identifying more companies, and may soon launch agitation against those companies as well.

FMRAI sources in Chennai said that the medical representatives working with Biological Evans, CFL Pharmaceuticals, Khandelwal laboratories, Nicholas Piramel and Astra Zeneca went on a strike on December 2 against the attitude of their managements. The strike was almost complete in almost all the states.

On December 3, FMRAI organized nationwide protest demonstrations against Pfizer, Sun Pharma, Jagsonpal and Merck & Co at the offices and depots of the respective companies in various parts of the country. On 23rd November, members of FMRAI wore badges as a mark of protest against these nine companies. Soon FMRAI would intensify the agitation and further strategies would be chalked out at Nagpur, where FMRAI working committee is meeting on 21st and 22nd of January, informed the sources.

As Pharmabiz reported earlier, FMRAI, the leading organization of medical representatives in the country, allege many leading pharma companies are issuing appointment letters to the medical representatives as 'Sales Officers' or 'territory heads' or with similar designations. By this, the Sales Promotion Employees will be outside the provisions of the SPE Act and rules. This is in violation of section 2(d) and section 5, and Rule 22(1) of the SPE (Conditions and Service) Act, 1976 with amendment in 1986, which mandates pharma companies to issue appointment letters in prescribed Form A.

Most of these employees are absorbed only on contract basis, and are subjected to punishments like suspensions, transfers, wage cuts etc. when they fail to achieve their targets. Many companies also introduce tight work schedule in the name of modernization, allege the organization.

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