Recognition of Trade Unions
Recognition of Trade Unions
Recognition of Trade Unions
Trade Unionism has made its headway owing to growth of industrialization and capitalism.
Trade Unionism asserts collectively the rights of the workers. In industrially advanced countries
trade unionism has made a great impact on the social, political and economic life. India, being an
agricultural country, trade unionism is restricted to industrial areas and it is still in a stage of
growth.
The trade union in India are found scattered in various laws, voluntary measures like the code of
discipline and the constitutional provisions under article 19 rights of the constitution. These trade
union rights may be divided into categories like:
1.Rights of freedom of speech and expression which includes rights of picketing and
demonstration.
2.Rights regarding the formation and the registration of the trade union.
3.Rights regarding the recognition of the trade union by the employers.
4.Rights regarding collective bargaining and collective actions.
5.Rights regarding conduct and functioning of the trade union.
6.Miscellaneous rights.
Trade unions are ordinarily understood to be combination of workmen only. Thus the Bombay
industrial relations act, 1949excludes from the definition of union, a trade union of employers.
Trade union are formed for the regulating the relation between workmen and employers, but they
may regulate the relations between workmen and workmen.
2) collective bargaining “all negotiations which take place between an employer, a group of
employers or one or more employers' organisations, on the one hand, and one or more workers'
organisations, on the other, for:
(a) determining working conditions and terms of employment; and/or
(b) regulating relations between employers and workers; and/or
(c) regulating relations between employers or their organisations and a workers' organisation or
workers' organisations.”
3) recognition of trade union: Recognition is the process through which the employer accepts a
particular trade union as having a representative character and hence, will be willing to engage in
discussions with the union with respect to the interests of the workers.
In practice, management allows the recognized Trade Union only for negotiations and collective
bargaining. As such, recognition of trade union serves as backbone of collective bargaining. It
has been debated time and again whether a trade union should be recognized or not. This is
because there is so far no enforced central legislation on this subject, i.e., recognition of trade
union.
In Kalindi and Others v. Tata Locomotive and Engineering Co. Ltdthe Supreme Court held that
there is no right to representation as such unless the company, by its standing orders, recognizes
such right. The decision was reiterated in Bharat Petroleum Corporation Ltd. v. Maharashtra
General. Kamgar Union & Ors.
The key distinction between registration of trade union and recognition of trade union is the
registration of trade union is done with the registar while recognition of trade union is done by
the management as collective bargaining agent (in case of one union) and collective bargaining
council in case of many council). Both are not mandatory under the Trade Unions Act. Trade
unions once recognized are conferred certain rights but the trade union as such has no inherent
right by itself to be recognised, it is the discretion of the management to recognise any such trade
union.
This lead to the need of the legislating provisions regarding recognition of trade union as there
were no provisions regarding recognition in Trade Unions Act 1929 an amendment to this act
was brought in 1947 regarding procedure, conditions and rights of trade union, but the provisions
regarding recognition of trade has remained a dead letter till today and only of historical
importance and they don’t form a part of the Act. Labour being a concurrent subject certain
states like Maharastra, Gujarat, Uttar Pradesh and Madhya Pradesh for instance have separate
laws relating to recognition and certain voluntary codes all these are buried in practical aspects.
The law in India does not make it mandatory for managements to have unions, to recognize them
or to engage in any kind of collective bargaining. However, since the constitution of India
guarantees freedom of association, managements cannot follow anti-union policies. Just as tax
avoidance is legal, but tax evasion is illegal, union avoidance is legal, but union evasion is not.
The right to grant recognition to trade unions within the meaning of Constitution of India, art.
19(1)(c) is a fundamental right or not is answered in negative because the right to form
association does not carry with it the concomitant right that the association must be recognised
by the employers. Hence withdrawal of recognition does not infringe the fundamental rights
guaranteed under the Constitution of India, art. 19(1)(c).
A registered trade union is deemed to be a body corporate, giving it the status of a legal entity
that may, inter alia, acquire and hold property, enter into contracts, and sue others. A registered
trade union is also immune from certain contractual, criminal and civil proceedings. However,
registration is optional and not mandatory. Generally, registration of trade unions under the TU
Act does not automatically imply that a particular trade union has gained recognition status
granted by the employer. Unless different Indian states have specific legal provisions pertaining
to recognition of trade unions, it is generally a matter of agreement between the employer and
trade union. Ideally, a trade union must obtain legitimacy through registration under the TU Act
and then seek recognition as a sole bargaining agent either under the appropriate law or an
employer-employee agreement.
In the year 1920 the madras high court in a suite field by Binny & co ltd against the textile labor
union granted an injunction restraining the union officials from inducing the workers to break
their contracts of employment by not returning to their work with the result the leaders of the
trade activities hence the necessity for legislative protection was felt by trade unions. In 1921
NM Joshi who was the generals secretary of all India trade union congress successfully moved a
resolution in the central legislative assembly seeking introduction of some legislation by the
Govt. for protection of trade unions this move strongly opposed by the employers because of stiff
opposing from the employers. That the passing of the Indian trade union act was possible only in
1926. The act came into force only from 1st June 1927.
There was no provisions for recognition of trade unions until 1947. An amendment was brought
to the Trade Unions Act 1929 and inserted certain provisions were incorporated in chapter III A
from section 28A to Section 28 I. Section 28A deals with definition of ‘appropriate
government’., section 28 B deals with appointment, constitution and powers and procedures of
labour court, section 28 C to section 28 I deals with recognition of trade unions. But since the
day it was inserted it did not come into force and remains a dead letter. Further attempts were
made for compulsory recognition 1950, 1978 and 1988, but it could not be materialised.
National Labour Commission in 1969 reviewed many of the labour legislations and proposed
many recommendations; it also reviewed the trade unions act 1929.
(2) the registrar must be time bound to decide the issue of registration.
(3) effective measures must be taken for cancellation if the unions do not comply with conditions
regarding filing of returns or membership;
(4) trade union recognition by the employers be made compulsory by Central legislation as
specified undertakings;
(6) the minority unions must also be allowed to represent workers in redressal of individual
grievances like dismissal, discharge etc. The suggested measures are likely to promote growth of
healthy and strong trade unionism and eliminate inter-union rivalry to some extent. Compulsory
recognition of one union for one undertaking will make the unions effective instruments of
collective action and give them requisite bargaining equality.
But these draft never took the form of an act though in three occasions it came up before the
government but the day fell before the bill could be discussed.
The need for state intervention arose for getting unions recognised as the employers wanted to
settle the terms and conditions of the work on the bases of liberal doctrine of ‘freedom of
contract’ but this freedom of contract has meaning only when the parties to the contracts are both
in the same position to participate in the contract. ‘where in the very nature of things parties to a
contract are not similarly placed and is in the position of advantage as against the other who
suffers from the handicap of initial disadvantage... freedom of contract is bound to work unjustly
for the weaker side of the contract seeing all these difficulties of the trade union act the Bombay
province before independence enacted the Bombay industrial relations act. Soon after
independence there were many states with provisions of recognition of trade union and many de
facto recognition. Recognition of trade unions can be broadly classified as voluntary and
statutory recognition
Recognition by management
it is a type of voluntary recognition. For a trade union to be successful it should play an effective
role in collective bargaining, collective bargaining in turn depends upon the willingness of the
employer to recognise the union. A union may be strong and stable unless it is recognised by the
employer it will hardly have any impact.
In Food Corporation of India Staff Union vs. Food Corporation of India and Others, the
Supreme Court laid down norms and procedure to be followed for assessing the representative
character of trade unions by the ‘Secret Ballot’ system.
Check-Off method:
Under which each individual worker authorises management in writing to deduct union fees
from his wages and credit it to the chosen union. This gives management concrete evidence
about the respective strengths of the unions. But the system is also prone to manipulation,
particularly collision between management and a favoured union. Sometimes, genuine mistakes
may occur, particularly when the number of employees is large. It also depends on all unions
accepting the method and cooperating in its implementation.
When a employer agrees to recognise a trade union then they should draw a memorandum of
agreement between the employer and the officer of the trade union or their authoritative
representative.
A trade union which wants itself to get recognised can make an application to the industrial
court. If the trade union satisfies the necessary conditions as required by the labour court like all
ordinary members are workmen employed in the same industry or industry closely allied to are
connected with one another, that it is a registered trade union and has complied with all the
provisions of the act etc then a certificate of recognition is issued.
As many of the state have legislated on recognition of trade union each of whom has a different
mode of recognition.
One of the most fast growing method is by the secret ballot system. In case of Food Corporation
of India the supreme court ordered secret ballot and mandated the procedure
vi. A representative union for an industry in an area should have the right to represent the
workers in all the establishments in the industry, but if a union of workers in a particular
establishment has a membership of 50% or more of the workers of that establishment, it should
have the right to deal with matters of purely local interest such as, for instance, the handling of
grievances pertaining to its own members. All workers who are not members of that union might
either operate through representative union for the industry or seek redress directly.
vii. In the case of trade union federations, which are not affiliated to any of the four central
organisations of labour, the question of recognition would have to be dealt with separately.
viii. Only unions, which observe Code of Discipline, would be entitled for recognition
The Bombay high court has held that only the recognised trade union can enter into settment
with the employer and not any other union or employees independently can do so.
In Balmer Lawrie Workers’ Union, Bombay and Anr. v. Balmer Lawrie & Co. Ltd. and
Ors., the underlying assumption made by the Supreme Court was that a recognised union
represents all the workmen in the industrial undertaking or in the industryThe recognised Trade
union also has a duty to submit returns to the registar within the stipulated period of time failure
of which would be punishable with penalty.
Conclusions:
from the above assessment we could conclude that since there is no uniformity in law among the
different states and since a the central act which was amended in 1947 remains a dead letter there
is odo in the process of recognition and still this process is at the discretion of the management
Suggestions:
Change is the law of life. Law cannot remain immune to all these changes. In order to be
effective law must justify itself according to the needs of the changing society. The concept of
labour have undergone changes far beyond reach. Constant revisions of the labour legislations is
necessary to keep upto the changes and implementation of the legislation for a better change to
happen is paramount.
The importance of trade unions have been growing since independence. Collective bargaining is
an important aspect in an industrial relation and which in turn depends on the recognition of
trade union. Since the enactment of the trade union Act 1926 the attitude od the legislaute and
executive are very hostile towards the legislations though at many time the consideration of
recognition of trade union came up. Necessary steps must be take to enforce the amendment
brought in 1947 which still remains a dead letter
Bibliography:
# The Constitution of India 1950
# The Trade Unions Act 1926
# The trade union (amendment) act 1947
# The Industrial Disputes Act 1947
# The Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act,
1971
# The Kerala Recognition ot'Trade [Jnions Act, 2010
# Prof. H D Pithawala, The Maharashtra Recognition of Trade Unions and Prevention of Unfair
Labour Practices Act, 1971 and principles of collective bargaining, jamnadas co educational and
law publication,
# Kavita Krishnamurthi, Industrial Relations, Global Academic Publication and Distribution
# H L Kumar, Labour Problems and remedies, Universal Law Publication Co: New Delhi, ninth
edition 2010
report of the national commission on labour government of india ministry of labour and
employment and rehabilitation 1969
India, trade union and Collective Bargaining, nitishdesai association , October 2015
End-Notes
# http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts
Implemented/Details of the Acts Implemented/The Trade Unions Act, 1926/accesses30/07/2016
# G.M.Kothari ,A Study On Industrial Law,Wadhwa And Company,
Nagpur,5THEdition,2002,pg no.316
# G.M.Kothari ,A Study On Industrial Law,Wadhwa And Company,
Nagpur,5THEdition/2002,,pg no 325
# Trade union act,1926, (2001 amendment)
# Article 2ILO Convention No. 154
# P N Singh neeraj., ‘Employee Relations Management’,Pearson Education Indiap. 110,
Available at https://books.google.co.in/books?id=vkQ7BAAAQBAJ&printsec=frontcover
(Accessed 2/08/2016)
# H L Kumar, ‘Labour Problems and remedies’, Universal Law Publication Co: New Delhi,
ninth edition 2010 p. 297
# Needs and rights of recognised trade union, smithi chand
# AIR 1960 SC 914
# AIR 1999 SC 401
# (1995) I LLJ 727 (karn..)
# H L Kumar, Labour Problems and remedies, Universal Law Publication Co: New Delhi, ninth
edition 2010 p 297
# S N Mishra, Labour and Industrial law , Central Law Publication: Allahabad , 27thedition p
382
# C S Venkat Ratnam, Industrial Relations in Indian States, Global Business Press, Delhi
2ndedition p 21
# http://www.mbaskool.com/business-articles/human-resource/6496-trade-union-registration-or-
recognition-in-india-an-obligation-under-law.html/accessed 30/07/2016
# http://www.lawteacher.net/free-law-essays/employment-law/recognition-of-trade-unions-
employment-law-essay.php/accessed31/07/2016
# Section 13 of the TU Act 1926
# Sections 17, 18 and 19 of the IDA
# R. Sivarethinamohan, Industrial Relations and Labour Welfare: Text and Cases, p 62
# http://nfirindia.org/downloads/TRADEUNIONACT1926.PDF/accessed 30/07/2016
# S N Mishra, Labour and Industrial law , Central Law Publication: Allahabad , 27thedition p
382
# http://www.whatishumanresource.com/recognition-of-trade-union/accessed 30/07/2016
# report of the national commission on labour government of india ministry of labour and
employment and rehabilitation 1969 p 282
# Section 5 of the Kerala Recognition of Trade Unions Act, 2010
# C S Venkat Ratnam, Industrial Relations in Indian States, Global Business Press, Delhi
2ndedition p 23
# P B Gajendragadkar, law liverty and social justice 1962 p 102
# B N Datar,Trade Union Recognition,lala Lajpatraj Memorial Lectur Series 12thseries 1983 p 9
# Dr Biswant Ghoshi, Industrial Relattions of Developing Economy, Himalaya Publishing
House; hyderbad 1steedition 2002 p 127
# AIR 1995 SC 1344
# Section 28 C trade union (amendment) act 1947
# https://www.nibusinessinfo.co/node/4673/accessed 30/07/2016
# 2005 II LLJ 219(karn..)
# Sec 28 D trade union (amendment) act 1947
# C S Venkat Ratnam, Industrial Relations in Indian States, Global Business Press, Delhi
2ndedition p 23
# (Clause III (vii) of the Code of Discipline)
# Section 28 F trade union (amendment) act 1947
# Section 10 the Kerala Recognition ot'Trade [Jnions Act, 2010
# Nazdoor Congress v. S R Shinde 1983Mah L J 909
# AIR 1985 SC 311
# Kavita Krishnamurthi, Industrial Relations, Global Academic Publication and Distribution
# C S Venkat Ratnam, Industrial Relations in Indian States, Global Business Press, Delhi
2ndedition p 23
# Dr Biswant Ghoshi, Industrial Relattions of Developing Economy, Himalaya Publishing
House; hyderbad 1steedition 2002 p 128
# C S Venkat Ratnam, Industrial Relations in Indian States, Global Business Press, Delhi
2ndedition p 23
# R P Anand, new states Hope India Publications 2ndrevised edition (2008) p 3s