ASSIGNMENT ON

RECOGNITION OF TRADE UNIONS

Submitted as per the requirement of PSDA for Labour Law Course

Submitted to:

Mrs. Kusum Lata

Submitted by:

SHREYA SAXENA

20817703815

VII Semester BA LL.B. (H)

Batch: 2015-2020

VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES,

GGSIP UNIVERSITY, NEW DELHI

 RECOGNITION OF TRADE UNIONS

NEED FOR RECOGNITION

Maruti Suzuki Factory Violence Case

An altercation on the shop floor between a floor supervisor and Jiya Lal, one of the
approximately 1500 permanent workers at the Maruti Suzuki Manesar plant, led to the
suspension of the worker. The union began negotiating with the human resources team at
the plant. It is alleged by the management and the investigation that when the negotiations
broke down without a compromise, violence broke out with workers attacking the staff,
including senior officials, with iron rods and other objects. The General Manager (HR),
Awanish Kumar Dey, lost his life and about 90 others were treated for minor injuries.

The police rounded up the factory workers and, by the next day, had arrested over 90
people including all the newly-elected union leaders. They slapped conspiracy charges
against the union leaders and workers and started a massive manhunt for other workers on
the charges of rioting, arson, and murder of the HR manager. In total, the police arrested
and charged 148 workers for the incidents of July 18 th and imprisoned them in the Gurgaon
jail. All the injured persons were discharged in less than a week. The company locked the
factory for a brief period and reopened it on 21 st August 2012 after sacking nearly 500
permanent workers. With over 1500 police officers deployed, the Manesar plant was
temporarily converted into a veritable fortress.

But the events of July 18 had deep roots in a year of unrest that began with workers at the
Manesar plant attempting to form an independent union of their choice.

The facility at Manesar, which began production in 2007, was fast expanding in terms of
output. This had increased the workload of the permanent workers while wages were not
raising because of the increased employment of contract workers at less than half the wage
of permanent workers. From 2010, the workers and management were engaged in constant
conflict over the recognition of an independent union. In February 2012, after many
attempts, the workers were allowed to register their union (Maruti Suzuki Workers Union)
and in April 2012 they began negotiations for wage revision with the management. The
events of July 2012 undid those many years of struggle and compromise, imprisoning all
the office bearers of the union.

As far as the positives of Recognition of Trade Unions by employers are concerned, the
Trade Union Act merely provides for voluntary registration of trade unions, and not for their
statutory recognition by employers for collective bargaining purposes.

The latter becomes necessary as employers may not wish to negotiate with a trade union of
workers’ choice. This has led to industrial unrest and long-drawn legal battles. Despite
demands by trade unions and employers, statutory recognition by employers does not exist in
the Act.

Law relating to Recognition of Trade Unions in India had been incorporated in Chapter III- A
(sections 28- A to 28-I) by an amendment of the Trade Unions Act, 1926 in the year 1947.
However these provisions have remained a dead letter in the statute book owing to their non-
implementation.

The Procedure for Recognition can take either of the two courses:

1. Recognition by Agreement

2. Recognition by Order of the Labour Court

RECOGNITION BY AGREEMENT

 According to section 28 -C, a Trade Union may gain Recognition by virtue an

Agreement with the Employer.
 Where the Employer agrees to recognise the Trade Union, a Memorandum of
Agreement is created between the Employers and Officers of the Trade Union.
 This Memorandum of Agreement is presented to the Registrar of Trade Unions of
who records it in a prescribed manner
 With he Agreement being in force, the Trade Union is Deemed recognised in its
relations with the Employer.
 Application for Revocation of Agreement may be made by either party to the
Registrar.

RECOGNITION BY LABOUR COURT

1. PRE- REQUISITE CONDITIONS

If the following conditions are present, then only Recognition by order of Court can be
granted. The conditions are provided under section 28- D.

a) All its Ordinary members are workmen employed in the same industry or an industry
closely allied to or connected with another.

b) Trade Union is Representative of all workmen employed by the employer in that industry.

c) Trade Union’s rules do not provide for exclusion from membership of any class.

d) Rules provide for Procedure of declaring a strike

e) Rules provide that meeting of its executive shall be held atleast once in every six months.

f) Trade Union is registered and complied with Trade Unions Act.

2. APPLICATION FOR GRANT OF RECOGNITION BY LABOUR COURT

 When a Registered Trade Union has applied for Recognition, however it fails to
obtain recognition within 3 months from the date of Application, it may make an
application in writing to the Labour Court, setting out necessary particulars.
 A single Application shall be made for Recognition by
- More than one Employer
- An Association of Employers/ some members thereof
 Further Information can be called for by the Labour Court. Failure to provide
information may result in Dismissal of Application.
 Labour Court if satisfied that Trade Union is fit to be recognised by Employer, shall
make an order directing Recognition. Where Recognition is to be by an Association
of Employers, order shall be made for Recognition by each of the members of the
Association.
 Notification regarding Recognition shall be published in the Official Gazette and
Trade Union shall be deemed recognised in a relation with the employer.

RIGHTS OF A RECOGNISED TRADE UNION

Once a Trade Union is recognised, it gains the following rights, asprovided in section 28-F.

 Executive of Recognised Trade Union shall be entitled to negotiate with the

employers regarding matters connected with terms of Employment, conditions of
labour of all or any of the members.
 Employer shall receive and send replies to letters sent by the Executive and grant
Interviews to that body regarding such matters
 Regarding matters wherein due to a previous discussion, with executive of Trade
Union employer has arrived at a conclusion the Employer is not required to reply to
letters or grant interviews unless a period of atleast 3 Months has elapsed since
conclusion intimated to the Executive.
 In case of dispute between Employer and Executive of the Union, decision of the
Registrar shall be final.
 Executive of Recognised Trade Union is entitled to display notices of Trade Union in
any premises where its members can see it, and the Employer shall facilitate the same.

WITHDRAWAL OF RECOGNITION

 Registrar or Employer can apply to the Labour Court for withdrawal of Recognition
on the following grounds:
- Executives or Members of the Trade Union committed some unfair trade practice
within three months prior to Application.
- Trade Union failed to submit any return referred to in 28- I
 - Trade Union failed to be Representative of workmen as referred to in 28- D

 On receipt of Application, the Labour Court may summarily dismiss the Application,
if it finds no cogent reason for continuing. On the other hand it may serve notice on
the Trade Union to show cause as to why Recognition shouldn’t be withdrawn.
 If after this, the Labour Court is satisfied that Trade Union is not fit to be recognised,
it shall declare the Recognition to be withdrawn.
 A copy of the order shall be made to the Appropriate Government for publication in
the Official Gazette.

Tamil Nadu Electricity Board Union v. Tamil Nadu Electricity Board (1980) II LLJ 246

Facts: The Electricity Board withdrew Recognition upon the Trade Union’s change of name.

Held: Union cannot be prevented from changing its name, because a change of name does not
change its Representative capacity.

Tamil Nadu Electricity Board Engineers Sangam v. Tamil Nadu Electricity Board
(1996) I LLJ 1071 (Mad.)

Facts: Tamil Nadu Electricity Board Engineers Sangam was accorded recognition in a
settlement. The Electricity Board did not implement this settlement.

The Sangam agitated for implementation. Electricity Board issued a show cause notice as to
why recognition granted should not be withdrawn on the ground that Sangam staged a
Dharna, and later on withdrew the Recognition.

Held: No inquiry was conducted by the Respondent to find whether petitioners have indulged
in unlawful activity, therefore the withdrawal so made was arbitrary, violating of Principles
of Natural Justice and thus bad in law.

APPLICATION FOR FRESH RECOGNITION

On expiry of not less than six months from the date of withdrawal, the Trade Union, if it
continues to be a registered Trade Union, may apply. The procedure to be followed is as per
the original application for recognition provided in section 28- E.