Recognition of

Trade Unions
-Monica Rani
Visiting faculty
Recognition under the TU Act

 The Trade Union Act 1926 only provides for registration

and rights and liabilities of registered trade unions and its
members.
 It does not deal with recognition of trade unions.
 There was an amendment Act i.e. Trade Union Amendment
Act, 1947 which provided for recognition of trade unions
but it has not been enforced till yet.
 State Acts

In some states there has been laws enacted to provide for

recognition; these are:
 The Bombay Industrial Relation Act, 1946; or
 The Maharashtra Recognition of Trade Union and
Prevention of Unfair Labour Practices Act, 1971 or
 similar provisions in force in other states like, Madhya
Pradesh, Rajasthan, etc.
Code of Discipline
 The issue of recognition is covered by guidelines under
‘Code of Discipline’ voluntarily accepted by the
employer and the employees.
 It would hold good unless and until these guidelines are
replaced by any statute.
The object of recognition of the union is
 to truly represents a substantial body of workmen.
 to place the employer and employees in a position where the
union which acts as bargaining agent.
 The underlining assumption is that the recognised union
represent all the workmen in the industrial undertaking or in
the industry.
 It enables the TU to discuss the problems of the workmen
with the employer, negotiate with the employer, and arrive
at a settlement binding on the employer and the workmen.

Object of Recognition
 According recognition to numerous unions whose members are
also members of other recognised unions, is not only
superfluous, but is self-defeating, undermining the very
object of recognition.
 With numerous bargaining agents the number of friction
points would not only escalate but the reaching of a
satisfactory settlement for all would become far more
difficult, if not impossible.
 Under the Maharashtra Recognition of Trade
Unions and Prevention of Unfair Labour
Practices Act 1971, there can at any one time
be only one recognised union in an
undertaking with at least thirty per cent of the
workmen as it's members.

Object of Recognition
 Registration of TU: the First Step
 Food Corporation of India Staff Union v. Food Corporation
of India and Ors. MANU/SC/0250/1995 : (1995)IILLJ272SC
 The Supreme Court, in order to facilitate collective
bargaining, observed that the Trade Union which takes up
the matter of workmen service conditions truly represents
the workmen employed in the establishments, the trade
union is first required to get itself registered under the
provisions of the Trade Unions Act, 1926.
 This gives a stamp of due formation of the trade union and
assures the employer that the trade union is an
authenticated body.
Method of Recognition
 When there are more than one registered trade union in
an establishment, the question as to with whom the
employer should negotiate or enter into bargaining
assumes importance, because of the trade union with
minority of the workmen/employees, the settlement,
even if any arrived between the employers and the
union, may not be acceptable to the majority and may
not result in industrial peace.
 The Supreme Court found that the method to find out as
to who should be the sole bargaining agent, has been a
matter of discussion and some dispute. The 'check off
system' which once prevailed has lost its appeal. The
method of secret ballot was gradually accepted.
Process of Election: Secret Ballot

 The method should be adopted and adjusted in such a

manner that it reflects the correct position as regards
membership of the different trade unions operating in
one and the same industrial establishment or
undertaking. The Food Corporation of India and the Unions
agreed to follow 'Secret ballot system' in order to yield
correct result.
 The Supreme Court laid down certain norms and
procedures in the nineteen-points to determine the
strength of all eligible unions by secret ballot and then
provided a mechanism for the elections to be held.
 Recognition to one TU vis-à-vis
other TU
 Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer
Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 The SC observed that forming an association is entirely
independent and different from its recognition. Recognition
of a trade union confers rights, duties and obligation.
 Non-conferring of such rights, duties and obligations on a trade
union other than the recognised union neither puts it in an
inferior position, nor can the charge of discrimination be
entertained. The members of a non-recognised association can
fully enjoy their fundamental freedom of speech and
expression as well as to form the association.
 It is not correct to say that the recognition by the employer
is implicit in the fundamental freedoms to form an
association.
 Balmer Lawrie Workers' Union, Bombay and Anr. v
Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 Sec. 20 (2) (b) of the Maharashtra Recognition of Trade
Unions and Prevention of Unfair Labour Practices Act
1971 provides that an individual workman, who has his
individual dispute with the employer arising out of his
dismissal, discharge, retrenchment or termination of
service will not suffer any disadvantage if any
recognised union would not espouse his case and he will
be able to pursue his remedy under the Industrial
Disputes Act, 1947.
Statutory Right of Unrecognized
TU
 Balmer Lawrie Workers' Union, Bombay and Anr. v Balmer
Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 The SC elaborated that even an unrecognised union enjoys
the statutory right to meet and discuss the grievance of an
individual workman with employer.
 It also enjoys the statutory right to appear and participate
in a domestic or departmental enquiry in which its member
is involved. This is statutory recognition of an unrecognised
union.
 The exclusion is partial and the restriction, on such
unrecognised union or individual workman to represent
workmen, is in the larger interest of industry, public
interest and national interest. Such a provision could not be
said to be violative of fundamental freedom guaranteed
under Article 19(1) (a) or 19(1)(c) of the Constitution.
Pre-requisites required for
Recognition
 Balmer Lawrie Workers' Union, Bombay and Anr. v
Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 The Supreme Court held that conferring the status of
recognised union, on the union satisfying certain pre-
requisites which the other union is not in a position to
satisfy, does not deny the right to form association.
 In fact the appellant-union was registered under the Trade
Unions Act and members had formed their association
without force or hindrance by any one.
 The appellant union could also communicate with the
employer.
Pre-requisites required for
Recognition
 Balmer Lawrie Workers' Union, Bombay and Anr. v
Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 The SC said that it is always open to the workmen who
are not members of the recognised union to form
their own association or union and to claim higher
percentage of membership so as to dethrone the
representative union and take its place.
 The Court further held that it is not correct to say that
the disinclination of the workmen to join the
recognised union violates the fundamental freedom to
form association.
 Settlement between the
Recognised TU and CO. valid
 Balmer Lawrie Workers' Union, Bombay and Anr. v
Balmer Lawrie & Co. Ltd. and Ors. AIR 1985 SC 311
 Under the settlement arrived between the Co. and the
recognised TU, the 15% of gross arrears of the workers’
salary had to be transferred into the account of the
recognised TU, this settlement clause was challenged.
 The SC, though, held this clause as proper, and observed
that workmen who are members of a union may pay fee
for membership and enjoy the advantage of membership
but if by the action of the recognised union all
workmen acquire benefit or monetary advantage, the
members and non-members alike can be made to
make common sacrifice in the larger interest of trade
union movement and to strengthen the trade union
which by its activities acquired the benefits for all
workmen.
Recognition of an association not
a Fundamental Right.
 Recognition of an association is not a fundamental right.
Statutory rights accorded through law and later revoked,
if fall under the reasonable restriction under either
Article 19(4) or Article 33 are not open to challenge on
the ground of violation of right to form association under
Article 19(3).
 In the case of Delhi police Non-Gazetted Karamchari
Sangh v Union of India (1987) 1 SCC 115, proviso to a
provision of the Police Force (Restriction of Rights) Rules,
1966, originally enabled all non-gazetted employees of
the Delhi Police to be members of the Sangh, later it was
revoked through an amendment in 1970 and members of
police force of same rank only were allowed to form one
association.
Conformity with Special Law
needed

 In this case, Rue 11 provided for revocation of

recognition if Articles of Association were not in
conformity with the Rules. Under this very provision the
recognition granted to the Sangh was withdrawn and the
Supreme Court held that in view of the Police Force
(Restriction of Rights) Act, 1966 enabling the rule-
making authority to define any group of police force
that could form an association, Rule 11 was valid.
 The appeal was accordingly dismissed.