Recognition of Trade Unions

11/07/2021 0 By indiafreenotes

Although no specific right is granted to any trade union with respect to the right to be recognized, it has become crucial in India to develop a mechanism wherein a trade union is recognized formally by the employer. Recognition is the process through which the employer accepts a particular trade union as having a representative character and hence, will be willing to engage in discussions with the union with respect to the interests of the workers. This process is important so as to ensure smooth collective bargaining and stability of industrial relations. On the other hand, registration of a trade union carries certain inherent benefits with it.

A registered trade union is deemed to be a body corporate, giving it the status of a legal entity that may, inter alia, acquire and hold property, enter into contracts, and sue others. A registered trade union is also immune from certain contractual, criminal and civil proceedings. However, registration is optional and not mandatory. Generally, registration of trade unions under the TU Act does not automatically imply that a particular trade union has gained recognition status granted by the employer. Unless different Indian states have specific legal provisions pertaining to recognition of trade unions, it is generally a matter of agreement between the employer and trade union. Ideally, a trade union must obtain legitimacy through registration under the TU Act and then seek recognition as a sole bargaining agent either under the appropriate law or an employer-employee agreement.

These trade union rights may be divided into categories like:

  • Rights of freedom of speech and expression which includes rights of picketing and demonstration.
  • Rights regarding the formation and the registration of the trade union.
  • Rights regarding the recognition of the trade union by the employers.
  • Rights regarding collective bargaining and collective actions.
  • Rights regarding conduct and functioning of the trade union.
  • Miscellaneous rights.

Recognition of trade union is the backbone of collective bargaining. Management recognizes only recognized trade unions for negotiation and collective bargaining.

In the absence of any central legislation on this subject, management at times refuse to recognize the unions due to following reasons:

  • Most of the office bearers being outsiders.
  • Multiple unions being in existence.
  • Unions having smaller number of employees.
  • Trade unions not being registered under Trade Union Act, 1926.

However, International Labour Organization (ILO) has been advising managements to recognize trade unions. Some States Governments have evolved a code of discipline and legislation in this regard.

They accord recognition provided it fulfills the following conditions:

  • It has complied with all provisions of the Trade Unions Act, 1926.
  • Unions duly observe the code of conduct.
  • Unions should have functioned at least for a year after its registration.
  • Meeting of the executive should be held at least once in every 6 months.
  • All its members are employed in the same industry.
  • A trade union once recognized should not make any change in its position for a period of two years. On satisfaction of the above conditions a trade union gets recognition from its employer.