STATUTORY RECOGNITION OF NEGOTIATING UNION AND NEGOTIATING COUNCIL UNDER INDUSTRIAL RELATIONS CODE, 2020

Collective bargaining is raison detre of trade unionism.  Trade Union Act, 1926 did not have any provision for recognition of a trade union for bargaining with employer although some states like Maharashtra had introduced provision for recognition of trade union. Absence of provisions of recognition of trade union for negotiation with employer often resulted in inter-union rivalry and industrial disputes.

The Supreme Court in  Food Corporation of India Staff Union Vs. Food Corporation of India (1995) 2 SCR held that when in an establishment, be it an industry or an undertaking, there are more than one registered trade unions, the question as to with whom the employer should negotiate or enter into bargaining assumes importance, because if the trade union claiming this right be one which has as its members minority of the workmen/employees, the settlement, even if any arrived between the employers and such union may not be acceptable to the majority and may not result in industrial peace.

The Industrial Relations Code has introduced much needed reforms by incorporating provisions in respect of negotiating union and negotiating council. Section 14 (1) provides for negotiating union or a negotiating council, as the case may be, in an industrial establishment having registered Trade Union for negotiating with the employer of the industrial establishment on such matters as may be prescribed.

Draft IR(Central) Rules provides that following matters can be negotiated between employers and workers –

(i) classification of grades and categories of workers;

(ii) order passed by an employer under the standing orders applicable in the industrial establishment;

(iii) wages of the workers including their wage period, dearness allowance, bonus, increment, customary concession or privileges, compensatory and other allowances;

(iv) hours of work of the workers their rest days, number of working days in a week, rest intervals, working of shifts; (v) leave with wages and holidays;

(vi) promotion and transfer policy and disciplinary procedures;

(vii) quarter allotment policy for workers;

(viii) safety, health and working conditions related standards;

(ix) such other matter pertaining to conditions of service, terms of employment which are not covered in the foregoing clauses; and

 (x) any other matter which is agreed between employer of the industrial establishment and negotiating union or council

Recognition in case of sole registered union

Section 14 (2) provide for procedure of recognition of trade union if there is only one registered trade union in the industrial establishment.  Where there is only one registered Trade Union operating in an industrial establishment it has to be recognised as per rules prescribed. Draft IR (Central) Rules prescribe that if such registered  trade union has its members not less than thirty percent of the total workers employed in the industrial establishment, then, the employer of such industrial establishment has to  recognize such Trade Union as sole negotiating union of the workers.

Recognition in case of multiplicity of trade unions

Section 14 (3) provides for recognition of trade union in case more than one than one registered trade union operating in the industrial establishment. In such cases, the Trade Union having fifty-one per cent. or more workers on the muster roll of that industrial establishment, verified in such manner as may be prescribed, supporting that Trade Union shall be recognised by the employer of the industrial establishment, as the sole negotiating union of the workers.

Section 14 (4) provides that if more than one Trade Union of workers registered under this code is functioning in an industrial establishment, and no such Trade Union has fifty-one percent or more of workers on the muster roll of industrial establishment supporting that trade union, then negotiating council has to be constituted by employer. Such negotiating council has to consist of the representatives of such registered Trade Union which have the support of not less than twenty percent of the total workers on the muster roll of that industrial establishment so verified and such representation shall be of one representative for each twenty percent and for the remainder after calculating the membership on each twenty percent.

Draft IR (Central) Rules prescribes detail procedure for verification of members of trade union.  The central government has been empowered to appoint an independent verification officer. Such verification officer must not have any interest in trade union.  A registered Trade Union has to submit an application to the employer for according status of negotiating union. Such application has to be accompanied with the copy of the registration certificate, copy of list of members, details of the membership subscription and copy of latest annual return submitted to Registrar of Trade Unions and any other relevant document which the Trade Union wishes to submit in support of its claim.

The verification process has to be initiated sufficiently in advance but not later than three months before the expiry of the tenure of incumbent negotiating union or negotiating council. The employer has to submit all the documents received from trade union to the verification officer. The verification officer has to conduct the verification process through secret ballot. The verification officer has to  convene meeting of representatives of all registered Trade Unions functioning in the industrial establishment at least sixty days before the date of actual voting  to decide – (a) publication of voters list (b) date, time, mode of voting, place of voting (c) date, time and place of counting and (d) other modalities relating to secret ballot. Minutes of such meeting has to be prepared. All participating Trade Unions have to be allotted symbols in the same meeting. If no decision could be taken regarding date, time, mode of voting, place of voting, allotment of symbols, date, time and place of counting and like other matters in the meeting, then, the decision of the verification officer has to be final.

The verification officer has to publish the schedule, program and procedure of such secret ballot election.  All workers whose names are borne on the muster roll of the industrial establishment on the date of reckoning are eligible to cast their vote. The voters list has to be prepared by the employer of the industrial establishment on the basis of names of the workers borne on the muster roll. The voters list has to contain name, father‘s name, designation, worker number/identity card number issued by the employer and place of posting of the worker. The final voter list has to be published by the employer after obtaining the approval of verification officer and has to  be displayed at notice board at the main entrance and website, if any, of the industrial establishment. A copy of such voters list shall also has to be sent to the participating Trade Unions by hand or by registered post or through electronic mode. The verification officer has to  display the list of the name of the participating Trade Unions with the symbol allotted to them on the notice board at the main entrance and website, if any, of the industrial establishment within two days of finalization of the list.

The voting and counting of votes have to be held on the date, time and place fixed by the verification officer under the supervision of the verification officer and during the counting, agents of all participating Trade Unions have to be allowed to remain present. After final counting of votes, the result has to be declared by the verification officer. The result sheet has to contain the name of all Trade Unions who had participated in election, total number of votes polled and the number of votes cast in favour of each of the trade unions which participated in the election. On the basis of verification report submitted by verification officer, the employer of the industrial establishment has to grant recognition to Trade Union as a negotiating union or constituents of negotiating council.

Decision Making in Negotiating Council

Section 14 (5) provides for manner of decision making in case of collective bargaining with negotiating council.  Where any negotiation is held between the employer and a negotiating council, any agreement has to be reached by the majority of the representatives of the Trade Unions in such negotiating council.

Duration of Negotiating Union and Negotiating Council

Section 14 (6) provides for duration of negotiating union and negotiating council. Any recognition of negotiating union or negotiating council is valid for three years from the date of recognition or constitution or such further period not exceeding five years, in total, as may be mutually decided by the employer and the Trade Union.

Facilities to Negotiating Union and Negotiating Council

Section 14 (7) mandates the industrial establishment to  provide facilities to a negotiating union or negotiating council. Such facilities have to prescribed by rules.

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