RECOGNITION OF TRADE UNIONS

BY

PREETI SINGH (12MBA024)

RISHIKA SINGHAL (12MBA028)

What is a TRADE UNION?

A trade union is an organization of workers who have banded together to achieve common goals such as protecting their integrity, achieving higher pay, increasing the number of employees an employer hires, and better working conditions.

The Trade Union Act 1926 defines a trade union as a 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 condition on the conduct of any trade or business, and includes any federation of two or more trade unions. 

OBJECTIVES: Representation Negotiation (Collective Bargaining) Voice in decision affecting workers like lay off, retrenchment.

What is RECOGNITION?

Recognition means the expressed recognition of a registered trade union by

an employer or by an employers association for the purposes of collective

bargaining. 

Recognition is different from registration.

Recognition is provided to that union which comprises of more than 50 per

cent of the employees in that establishment as its members.

It is the employer and only the employer, who awards recognition to one or

more unions, or refuses such recognition.

TYPES OF RECOGNITION

Recognition is of two types:

VOLUNTARY TRADE UNION RECOGNITION: When an employer

voluntarily recognizes a trade union without using any legal procedures.

STATUTORY TRADE UNION RECOGNITION: If an employer and trade

union do not come to a voluntary recognition agreement, a trade union can

make an application for statutory recognition. This only applies where the

employer, together with any associated employers, employs 21 or more

workers.

CONDITIONS FOR RECOGNITION

All ordinary members are workmen employed in the same industry or in

industries closely allied to or connected with another;

It is representative of all workmen employed by the employer in that industry

or those industries;

Its rules do not provide for the exclusion from membership of any class of

workmen

Its rules provide for the procedure for declaring a strike ;

Its rules provide that a meeting of its executive shall be held at least once in

every 6 months

It is a registered trade union and that it has complied will all the provisions of

the Trade unions (amendment) Act, 1947.

METHODS OF RECOGNITION

Recognition

Membership Verification Check-Off Secret

BallotCode of

Discipline

1) Membership Verification: An official of the labor department of the state or

central government visits the establishment, obtains the manpower list from the

management and asks each employee individually whether or not they wish to

become members of a union and if so, which union. Based on the responses, it is

identified which union gets the majority support of employees. This becomes the

criteria for selecting the sole bargaining agent in an establishment.

2) Check-off: Employees are asked to state in writing whether or not they belong to a

union and if they do, to which union. Also, they should undertake in writing that

they are willing to have union membership deducted from their salary. The check-

off system helps management to know and make an assessment of the relative

strength of unions for the purpose of recognition.

3) Secret Ballot: A more democratic method, election by secret ballot, enables employees

to exercise their option secretly, without fear or favor. The entire process takes place in

the overall supervision of the Chief Labor Commissioner. There are two types of secret

ballots:

• Panel: In panel type, the union formed can be a mix of electing members from

different parties. For example, a union may be formed with president from one

union, secretary from other union and treasurer from a third union.

• Banner: In banner type, employees vote for a single union i.e. all positions are held

by electing members of same union.

4) Code of Discipline: The criteria is set for recognition of trade unions. In professionally

managed organizations the management signs an agreement with the recognized union

which stipulates do’s and don’ts for management and union but all these are not binding

on the management and the trade union.

CRITERIA FOR RECOGNITION UNDER CODE OF DISCIPLINE

1) The Unions should have at least one year standing.

2) They should have at least 15% of the membership of the establishment to claim

recognition; and 25% of the work force to claim recognition on industrial basis.

3) When there are multiple unions in an establishment, the union with largest

membership will be given recognition.

4) The local unions if they have more than 50% of the membership of the locality,

can be recognized to represent their grievances.

5) The recognition granted will be valid for 2 years.

6) The unions which do not follow code of discipline will not be granted

recognition.

RIGHTS OF RECOGNIZED TRADE UNIONS

Right to sole representation

Entering into collective agreement on terms of employment and conditions of

service

Collection of membership subscription within the premises of the undertaking,

the right to check-off

Holding discussion with departmental representatives of its workers-members

within factory premises

Inspecting by prior agreement the place of work of any of its members

Nominating its representatives on works/ grievance committees and other

bipartite committees.

TRADE UNIONS IN INDIA

All India Trade Union Congress (AITUC)

Bharatiya Mazdoor Sangh (BMS)

Centre of Indian Trade Unions (CITU)

Hind Mazdoor Kisan Panchayat (HMKP)

Hind Mazdoor Sabha (HMS)

National Labor Organization (NLO)

Union Trade Union Congress (UTUC)

Indian Federation Of Free Trade Unions (IFFTU)

Indian National Trade Union Congress (INTUC)

CASE STUDY

Maruti locks horns with its Union on recognition

The new Maruti Suzuki Employees Union (MSEU) at

Manesar Plant (near Gurgaon, Delhi) demand

recognition as a Union and the Management doesn’t seem

to be interested in letting that happen. The Management is of the stern view that there

is already a recognized Union by name Maruti Udyog Kamgar Union (MUKU) and

the workers who are interested in participating in the election only need to participate

in the election under the said Union therefore making it unnecessary for the

Management to mushroom in a rival Union.

The workers who intent to form MSEU are of the opinion that MUKU is a Union

representing Gurgaon Plant and do not represent Manesar Plant and that only MSEU is

the true representative face of the workers at Manesar Plant and therefore need not

participate in the election organized by the Plant.

The workers with MSEU decided to boycott the election slated for 16th June and resorted to a

strike on 4th June demanding recognition of their Union. The strike lasted for 13 days and the

Management suspended 8 Office bearers of MSEU and 3 other workers. Without relenting to

the demands of the newly formed Union Maruti Suzuki Chairman R C Bhargava said

elections would be held for “both the plants” and those who win will represent the workers of

“both Gurgaon and Manesar.”

“We are the same company—Manesar and Gurgaon—and they are not independent entities.”

However, Bhargava clarified that the management does not have any role in the election

process.

After 13 days of deadlock, the strike was called off following intervention of Haryana Chief

Minister Bhupinder Singh Hooda with the management agreeing to take back 11 sacked employees

and cut down the no work no pay rule of eight day’s salary cut for every single day of the strike to

three days.

Today the horns still stay locked between the Management and the Union. But the question that

arises is that when the Managements role is of only an administrative nature why do they feel

threatened by the formation of the new Union.

Normal production is expected to resume in Maruti Suzuki Plant at Manesar.  This standoff of 33

days between the workers Union and the Management on the issue of recognition of their union and

reinstatement of the suspended workers was smoothened up by the intervention of Harayana

Government whereby bringing about a consensus.

It was the third dispute to affect production at Maruti Suzuki in three months. This plant produces

1200 cars every day in 2 shift. The workers resorted to sabotaging production and deliberately

causing quality problems. The production problems were discovered during quality-control checks

and included doors falling off and dents in car bodies, according to the firm.

The situation had reached a stage where it was directly harming customers’ interest and trust. The

2,000 workers were locked out of the factory, one of two operated by Maruti in Haryana, until they

had signed the Good Conduct Bond.

As per the consensus, the management of Maruti Suzuki would conditionally take back the

18 trainees who were suspended as the workers agreed to sign the Good Conduct Bond laid

down by the management. The said bond promises that they would not sabotage production,

resort to go-slow tactics or otherwise hamper output at its Manesar plant. However, the

management stated that the disciplinary action taken against the 44 workers would be dealt

with separately and subject to the outcome of the domestic enquiry.

Now the question remains is that can a Good Conduct Bond override the provisions of the

Industrial Disputes Act and other Apex court judgments which make Strike a legitimate

weapon of the workers. Maruti Suzuki wouldn’t give the workers such a bond regarding

a Lockout, the management’s weapon.

THANK YOU

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