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This is to certify that this project assignment RECOGNITION OF TRADE UNIONS:
PROBLEMS AND PERSPECTIVES submitted by ANKIT YADAV in the partial
fulfillment of B.A. LL.B. (Hons.) Course and is the record of bonafide work pursued by him
as full-time student of B.A. LL.B. (Hons.) 7th Semester, Faculty of Law (Law School),
Banaras Hindu University under my guidance and supervision. This assignment or any part
thereof has not been submitted elsewhere for any degree.
Professor
Faculty of Law (Law School),
Banaras Hindu University (BHU).
ACKNOWLEDGEMENT
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Recognition of Trade Unions: Problems and Perspectives
I am extremely thankful to the Prof. D.K. Sharma Sir., Head & Dean, Faculty of
Law, Banaras Hindu University; Dr. C. P. Upadhyaya Sir., Course Coordinator B.A.
LL.B. (Hons.) Course and all the other faculty members for their kind cooperation
and encouragement.
I also want to thank to my family and friends who have more or less
contributed to the preparation of this assignment work. I will be always indebted to
them.
Thank You.
Ankit Yadav
TABLE OF CONTENTS
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Recognition of Trade Unions: Problems and Perspectives
LIST OF ABBREVIATION...................................................................................................................5
TABLE OF CASES.................................................................................................................................6
INTRODUCTION.................................................................................................................................7
DESCRIPTION......................................................................................................................................9
CONCLUSION...................................................................................................................................24
BIBLIOGRAPHY................................................................................................................................27
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Recognition of Trade Unions: Problems and Perspectives
LIST OF ABBREVIATIONS
ABBREVIATION FULL-FORM (MEANING)
@ Alias
All Allahabad
Art. Article
Arts. Articles
Cri. Criminal
Ker Kerala
Ors. Others
pp. Pages
SC Supreme Court
SCC Supreme Court Cases
vs. Versus
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TABLE OF CASES
S. NO. CASE NAME CITATION PAGE NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
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INTRODUCTION
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
The Trade Unions in India are found scattered in various laws, voluntary measures like the
Code of Discipline and the Constitutional provisions under Art. 19 rights of the constitution.
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.
6. Miscellaneous Rights.
Trade Unions are ordinarily understood to be combination of workmen only. Thus, the
Bombay Industrial Relations Act, 1949 excludes 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.
Recognition of trade union is one of the aspects of industrial relations which is still debated.
This assignment deals with recognition of trade unions its problems and perspectives and
the scope of the assignment is limited to various aspects of recognition of trade union
among other activities of trade union relationship between employer and workmen.
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Hypothesis:
In the present assignment i would like to answer certain questions pertaining to recognition
of the Trade Unions as to what is the current status of recognition of trade union. This
question is answered by analysing the various statues both Central and State. Is trade union
the disparities in practices among the states. And finally what are the problems faced by the
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DESCRIPTION
Meaning and Definitions:
Trade Union is defined under Trade Unions Act, 1926 under Sec. 2(h) which means
Trade Union means any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen, or between employers and
employers, or for imposing restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more Trade Unions:
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
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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 vs. Tata Locomotive and Engineering Co. Ltd., the 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. vs. 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 registrar 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 dont form a part
of the Act. Labour being a concurrent subject certain states like Maharashtra,
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.
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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).
Although no specific right is granted to any trade union with respect to the right to
be recognized, it has become crucial in India to develop a mechanism wherein a
trade union is recognized formally by the employer. 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. This process is important so as to
ensure smooth collective bargaining and stability of industrial relations. On the other
hand, registration of a trade union carries certain inherent benefits with it.
Labour legislations in India were at a slow phase in developing. The momentum for
industrial relations reached its peak during the First World War when many strike
broke out between industrial and factory workers. However much of these strike
proved to be successful. The establishment of International Labour Organization also
paved way for the trade union movement in India.
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In the year 1920 the Madras High Court in a suit filed 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 were 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 IIIA from Section 28A to Section 28I. Section 28A deals with
definition of Appropriate Government; Section 28B deals with Appointment,
Constitution and Powers and Procedures of Labour Court, Section 28C to section 28I
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 materialized.
National Labour Commission in 1969 reviewed many of the labour legislations and
proposed many recommendations. It also reviewed the Trade Unions Act, 1926.
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Generally, these rules provide that a union shall be recognized by the employer as
the sole bargaining agent of a group of workers if it receives a specified minimum
percentage (usually a majority) of these workers votes via secret ballot, organized
by the Registrar. However, every trade union receiving a smaller minimum
percentage of votes (fifteen or ten percent, depending on the type of industry) shall
also be recognized as constituents of a joint bargaining council as in the case of
Kerala trade unions.
Certain criteria have to be complied with for a trade union to be recognised. Ministry
of Labour and Employment prepared their views based on a tripartite system, based
on these views drafts bills were prepared elucidating the criteria for union
registration and recognition, they includes:
1. 100 or 10% of the workers, whichever is; east to be a union instead of any seven
workers.
2. craft, category and caste based unions are not be registered or recognised
3. the law will provide for recognition and unrecognized union will not have any
rights.
But these drafts 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.
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Soon after independence there were many states with provisions of recognition of
trade union and many de facto recognition.
Recognition by Management:
Under which system, all eligible workers of an establishment may vote for their
chosen union, elections to be conducted by a neutral agent, generally the Registrar of
Unions, in a manner very similar to the conduct of general elections. Once held, the
results of the elections would remain valid for a minimum period, usually two years
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:
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Recognition of Trade Unions: Problems and Perspectives
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.
bargaining procedure
how and when meetings will be arranged
who the employer and union representatives are
time off for union representatives to attend meetings
how agreements and disagreements will be communicated to the workforce
conduct during negotiations - how and when issues can be raised
the specific matters which will be subject to joint agreement, eg pay and working
hours
dispute resolution - what should happen if deadlock is reached on a particular
issue, e.g., conciliation and arbitration
union recruitment activities in the workplace
union representation of workers at disciplinary and grievance hearings
deduction of union contributions from employees' wages.
A Trade Union which wants it 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.
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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 methods is by the secret ballot system. In case of Food
Corporation of India the Supreme Court ordered secret ballot and mandated the
procedure.
i. Where there is more than one union, a union claiming recognition should
have been functioning for at least one year after registration.
ii. The membership of the union should cover at least 15% of the workers in the
establishment concerned. Membership would be counted only to those who
had paid their subscription for at least three months during the period of six
months immediately preceding the reckoning.
iii. A union may claim to be recognized as a representative union for an industry
in a local area if it has a membership of at least 25% of the workers of that
industry in that area.
iv. When a union is recognized, there should be no change in its position for a
period of two years.
v. Where there are several unions in an industry or establishment, the one with
the largest membership should be recognized.
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.
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The Bombay High Court has held that only the recognised trade union can enter into
settlement with the employer and not any other union or employees independently
can do so.
In Balmer Lawrie Workers Union, Bombay and Anr. vs. 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
industry. The recognised Trade Union also has a duty to submit returns to the
registrar within the stipulated period of time failure of which would be punishable
with penalty.
Recognition is one of the basic issues of industrial relation between employer and
employee as the employer has no obligation to give recognition to any union, in the
earlier times the attitude of the employer towards trade union has been hostile.
1. All registered union in India seems to have been enjoying industrial relation rights
either de facto or de jure though they happen to be craft, caste or category based
union
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2. Politicalisation of Trade Union is one of the main reasons mainly in CTUO that
one party supports secret ballot system and other support check off system due to
which there is repeated coalition management in several states have refused to
recognise a trade union mainly on five grounds:
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CONCLUSION
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 concepts of labour have undergone changes far beyond reach. A constant
revision 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 has 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 of the legislature 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 taken to enforce the amendment brought in 1947
which still remains a dead letter.
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BIBLIOGRAPHY
LIST OF BOOKS, PAPERS AND REPORTS REFERRED:
The Code of Criminal Procedure, 1973 Bare Act with Short Notes, Universal Law
Publishing (Lexis Nexis), 2016.
Dr. K.N. Chandrasekharan Pillai, R.V. Kelkar's Criminal Procedure, Eastern Book
Company (ECB), 6th Edition, 2014 (Reprinted 2016) (ISBN: 978-9351453208).
Dr. K.N. Chandrasekharan Pillai, R.V. Kelkar's Lectures on Criminal Procedure, Eastern
Book Company (ECB), 5th Edition, 2013 (Reprinted 2015) (ISBN: 978-9351451129).
Ratanlal & Dhirajlal (Revised by B.M. Prasad & Manish Mohan), The Code of
Criminal Procedure (CRPC), Lexis Nexis Butterworths Wadhwa Nagpur, 20th
Edition, 2016 (ISBN: 9789351436812).
JTRI Journal, Judicial Training & Research Institute, U.P., viewed on 16th April, 2017;
Available at: <http://ijtr.nic.in/JTRI%20Journal%202012.pdf>
Prof. (Dr.)N. R. Madhava Menon, Law and Justice : A Look at the Role and Performance of
Indian Judiciary, viewed on 15th April, 2017;
Available at: <http://mja.gov.in/Site/Upload/GR/2.Law%20and%20Justice.pdf>
Subordinate Courts of India: A Report on Access to Justice 2016, viewed on 15th April,
2017;
Available at: <http://supremecourtofindia.nic.in/Subordinate%Court_of%India.pdf>
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