Recognition of Trade Unions | Commerce & Accountancy Optional Notes for UPSC PDF Download

Introduction

The primary objective of trade unions is to engage in negotiation and bargaining with employers, aiming to enhance the working conditions and employment terms for workers. The collective bargaining process becomes feasible when an employer acknowledges a trade union as the representative negotiating body. This recognition is crucial because negotiating with multiple trade unions within a single organization can be challenging and impractical. The trade union, once recognized, acts as the bargaining agent on behalf of the workers, facilitating discussions and agreements to improve overall employment conditions.

Recognition of Trade Unions in India

The Trade Union Act of 1926, the primary central legislation governing unions, lacks provisions for the recognition of trade unions. Various attempts were made to introduce mandatory recognition into the Trade Union Act in 1947, 1950, 1978, and 1988, but these efforts did not materialize. In the absence of such provisions at the central level, several states, including Maharashtra, Madhya Pradesh, Gujarat, Andhra Pradesh, Odisha, among others, have enacted their own legislations addressing the recognition of trade unions and preventing unfair labor practices. Notably, the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, is one such state-level legislation dealing with the recognition of trade unions.

Methods commonly employed to ascertain union strength, a crucial factor in the recognition process, include the following:

• Election through Secret Ballot:
  • In this system, eligible workers within an establishment cast their votes for their preferred union in elections overseen by a neutral entity, typically the Registrar of Unions.
  • The election results hold validity for a specified period, usually around two years.
• Check-Off Method:
  • Under this approach, individual workers provide written authorization for management to deduct union fees from their wages, allocating them to the chosen union.
  • While this method offers tangible evidence of union strength, it is susceptible to manipulation, potential conflicts between management and a favored union, and occasional errors, especially in large workforces.
  • Successful implementation also relies on the cooperation of all unions involved.
• Verification of Union Membership:
  • The labor directorate, following a resolution from the ILC session, employs this method widely in various establishments.
  • Upon invitation from unions and management, the labor directorate collects details on all unions within a plant, scrutinizing their registration, membership, fee records, and account books to identify duplicate memberships.
  • A later amendment also requires unions to provide lists of members to prevent dual memberships.
  • The final verified list, generated after cross-checking records and conducting physical sampling in cases of doubt, is shared with employers, unions, and the government.
• Rule of Thumb or Intelligent Guessing by Management:
  • This method involves management making assessments of union strength based on observations during gate meetings, strikes, or discussions with employees.
  • However, this approach lacks reliability, especially in large establishments, and is subject to frequent changes.

The acceptance of methods for determining union strength, particularly for recognition purposes, varies globally. In India, there has been a lack of consensus among trade unions regarding the universally acknowledged first method.
Recognizing this, the Second National Commission of Labour in 2003 addressed these issues and put forth crucial recommendations:

• Check-Off System for Recognition:
  • The commission proposed the adoption of the check-off system for selecting negotiating agents for recognition.
  • A union achieving 66% membership would be entitled to be recognized as the single negotiating agent.
  • In cases where no union attains 66% support, unions with more than 25% support should receive proportionate representation on the negotiating body.
• Advantages of Check-Off System:
  • Recognizing the challenges of secret ballot processes, the commission emphasized the financial and logistical advantages of the check-off system.
  • It recommended making the check-off system compulsory for establishments with 300 or more workers, and it was preferred for those with fewer than 300 workers.
  • Recognition, once granted, should remain valid for four years, aligning with the settlement period.
• Rights of Recognized Unions:
  • Recognized unions are granted several rights, including the ability to raise issues with management, collect membership fees on-site, demand the check-off facility, display union announcements on notice boards within the premises, conduct discussions with employees at a suitable location on the premises, discuss members' grievances with the employer, inspect the workplace of its members in advance, and nominate representatives on committees related to industrial relations.
• Business Necessity and Central Legislation:
  • Recognizing the challenges posed by the multiplicity of trade unions, the commission highlighted the importance of recognizing a trade union as a negotiating agent as a business necessity.
  • It emphasized the need for central legislation to facilitate dealings with recognized unions by industry and business houses, promoting a more mature and beneficial employer-union relationship.

In summary, the adoption of the check-off system for recognition, as recommended by the Second National Commission of Labour, aims to streamline the process, provide clarity, and foster stronger and more constructive relationships between employers and trade unions in India.