Recognition of Trade Union & Collective Bargaining

This article is written by Ritika Sahni, an intern under Legal Vidhiya

INTRODUCTION

The Concept of Recognition of Trade Union & Collective Bargaining are the 2 different concepts which are combined.

We need to understand what exactly the term ‘RECOGNITION’ means?

• Recognition is the Expressed Form of the Registered Trade Union by an Employer or the Employees for the purpose of the Collective Bargaining. 

• Recognition is a totally different concept from the process of Registration.

• Recognition is provided to that Union Members who usually comprise of more than 50% of the Employees in its Establishment of its Members.

TYPES OF RECOGNITION

Usually, the Recognition is divided into 2 Types:

1. Voluntary Trade Union Recognition: It usually refers to the agreement when an Employer recognizes the Trade Union without using the Legal Procedures.

2. Statutory Trade Union Recognition: It usually refers to the agreement when an Employer & Trade Union does not come to the Voluntary Recognition Agreement.

   In such a case, the Trade Union can make an application for Statutory Recognition.

METHODS OF RECOGNITION

• Membership Verification: It means where the Government Officials, obtains the Manpower list from the Management where the Employees & Employers are currently working on, asking each & every Individual Employee whether they wish to become the member of the Trade Union or not. On the basis of the Responses from the Employees of the Management it becomes responsible for the Selection of the Agent in an Establishment in the Union.

• Check-Off: In this process, the Employees are asked to write in writing whether they belong to the Union or Not, if they belong to the Union so which Union do they belong to exactly. The Check off system ensures that how management makes an assessment for the Strength of the Unions for the main purpose of the Recognition as well.

• Secret Ballot: It is a kind of Method or Election, which is usually performed by the Employees in exercising their option secretly, without having any Fear or Favors.

• Code of Discipline: It generally refers to the Do’s & Don’t of the Management & the Union as well. It is an agreement which the Management is allowed to signed in the Recognized Trade Union.[1]

MEANING OF TRADE UNION

1. MEANING:

A Trade Union is a Union in which an Employer has agreed to negotiate with all the Payments & Working Conditions on the Behalf of the Particular group of Workers.

The Subsequent Negotiation process is also known as ‘Collective Bargaining.’

It works with the group of people or workers which the Union represents and is collectively known as Collective Bargaining.

As we discussed above, the Recognition is divided into 2 Parts.

That are as follows:

1. Voluntary Trade Union Recognition: It usually refers to the agreement when an Employer recognizes the Trade Union without using the Legal Procedures.

• Statutory Trade Union Recognition:    : It usually refers to the agreement when an Employer & Trade Union does not come to the Voluntary Recognition Agreement.

   In such a case, the Trade Union can make an application for Statutory Recognition.                                                                                                                              

Why is there the Need for The Recognition of Trade Union?

In Simple Terms, the Trade Union is usually allowed by the Management only for the Negotiations & Collective Bargaining as well.

Trade Union is usually said to be the Backbone of Collective Bargaining.

Existence of The Trade Union Act:

• The Indian Trade Union Act was only possible in 1926.
• Later, this act came into existence from 1^st June 1927.
• Till 1947 there were no Provisions for the Recognition of the Trade Union.

Kinds of Trade Unions in India:

1. All India Trade Union Congress (AITUC): It is the Second Largest Trade Union in India after the Indian National Trade Union Congress.                                                            This Union was formed in 1920 on 31^st October at Bombay.                                                 Around 2.7 Million people are currently present under this Union Organization.                     The main objective of this Union was to promote all the Trades & also to coordinate with all the Labor Union People in order to promote the Social, Political & Economic interests of the Workers.

• Bharatiya Mazdoor Sang (BMS): It is usually the Trade Union which is made for the Indian Workers.                                                                                                                     It was founded by Dattopant Thengadi on July 23^rd 1955.                                                Basically, the BMS believed in Non- Discrimination of the Labors who are working on the basis of their Caste, Creed or Religion.                                                                       The BMS Union currently believed in promoting the Harmony & Respect across all the Religion.

• Center of Indian Trade Unions (CITU): The CITU is one of the National Level Trade Union in India & it’s Trade Union wings is Spread up in the Indian Trade Union Movement.                                                                                                                        This Union was founded in the Year in 1970 in New Delhi.                                                                                                                      The CITU firmly believes that the Exploitation of the Working Class Labor should only be ended by one Solution i.e. socializing the Means of Production.

• National Labor Organization (NLO): The National Labor Organization is also known as the National Labor Committee which was founded in the year 1931.                          This Organization was basically formed to provide the Support to the Workers & the Labors as well.                                                                                                                      It ensured that Proper Working Standards & Working Programs were being set for them.

• Indian Federation of Free Trade Unions (IFFTU): All India Federation of Trade Unions is a Central Trade Union Federation in India.                                                                                     It was founded in the year 1941 by M.N. Roy.                                                                                     The main purpose of this Union is to provide Equal Rights & Opportunities to all the members of the Unions.

Objectives of Trade Union:

The Objectives of Trade Union are as follows:

1. Representation: The term here Representation is defined as the Person who looks after the Members & the Colleagues gives them Accurate Advices when they are being stucked in the Problems while working.

• Negotiation (which is collectively termed as ‘Collective Bargaining.’):  This usually help the Workers from the Clutches of the Management whenever the Workers become the Victims in the Management Policies & their Decisions.

• Voice in Decision affecting the Workers such as: Lay-Off, Retrenchment etc. : This basically help the Workers in getting them with the Proper Remuneration & the Working Facilities in their Work Place.

What was the Main Idea Behind the Concept of Trade Union?

The main ideology behind the concept of the Trade Union was to negotiate & bargain with the Employers & the Employees to improve the Employment Service Conditions of the workers who are working on their Behalf.

Procedures for the Registration of the Trade Union:

In the Registration of the Trade Union, it usually involves the 4 procedures step which are as namely:

1. Appointment of Registrar: Section 3 of the Trade Union Act, 1926 empowers the government to appoint a person who will become the registrar of the Trade Unions.

   The government may be either the Central or the State Governments.

So, the person who will be appointed as the Registrar of the Trade Union will ensure that the person who may be appointed under him will work under the proper guidance and direction which is given by the Registrar of the Trade Union.

2. Mode of Registration: The group of 7 or more persons of the employer or the employees who willingly wants to form the Trade Union can apply for this Registration Procedure under the Registration of Trade Unions Act which is mentioned under the Section 4(1) of the Trade Union Act, 1926.

But the people who are applying are Employers or the Employees must be the applicants or the members of the Trade Union.

It is their responsibility to ensure that they are members of the Trade Union.

1. Every Application of the Trade Union Must Contain the Following Particulars:

• Name, Address, Occupation of the Members who are willingly interested in the procedure of the Registration of the Trade Union Process.

• Name of the Trade Union & Address of its Headquarters.

• Title, Name, Age, Address & Occupation of the office bearers of the Trade Union.

• Financial Statement of the Organization showing its Assets & Liabilities must also be submitted along with the Application form of the Registration of the Trade Union.

• All the necessary details must be submitted with all the items which are specified under Section 6 of the Trade Union Act, 1926.

• Rules of a Trade Union:

A Trade Union can only be registered when it fulfills the following rules that are mentioned as follows:

• Name of the Trade Union;
• Objective Behind the Registration of the Trade Union;

• General Funds purpose should be applicable in Trade Union.

• Maintenance which contains the list of its members who want to register under the Trade Union Act.

• The way in which the members who shall be appointed under the Trade Union registration process shall be appointed or removed.

3. Rights & Duties of the Registrar: Section 8 of the Trade Union Act describes the duties and rights of the Registrar.

 There are 2 cases:

1. The first case suggests that if the Requirements meet the Satisfaction level for the Registration process of the Trade Union, only then shall the Registrar register the Trade Union in the Registration Process.

1. The second case suggests that if the Requirements do not meet the Satisfaction level for the Registration process of the Trade Union, in such a case there may be the Refusal for the Registration Process which may be issued by the Trade Union.

4. Legal Status of Registered Trade Union: It is mandatory or compulsory that a Registered Trade Union must have its own Common Seal & Perpetual of Succession.

 Because now the Trade Union has its own entity, and it has all the power that is- To hold the Property whether it is Movable or Immovable & it also has the Power to Sue & can be Sued by the name in which it is Registered.

Rights of the Recognized Trade Unions:

The Rights of the Recognized Trade Union are as follows –

• Right To Raise Issues and have the Right to enter into Collective Agreements with the Employers.

• They have the Right to collect the Membership Fees & Subscriptions as well.

• They have the Right to put the important Notices & make Announcements at the Prominent Places as well.
• They also have the Right to hold the Discussions with the Employers & the Employees for the purpose of the Settlement and to prevent the Future Disputes as well.

Suggestions for the Healthy Growth of the Trade Unions in Our Country:

If we talk about our country India, which is a Developing Country in this country the Trade Union plays a Major role between the Employers & the Workers. The Healthy Trade Union always helped the Workers in the Achievement of the Work & also the Various Objectives of the Unions.

The following are the given points for the Healthy Growth of the Trade Unions in our Country are as follows:

1. One Union in One Industry: It usually states that Each & Every Worker should come together & work as a One Army Union.

• Training & Proper Education of the Union Workers: All the Workers should be kept up to date as the Introduction of the New Policy & Technology.                                              They should be provided with proper Education in that Current Field in which they are Currently Working.

• Strengthening the Unions: Keeping all the Workers United & providing them with all the Basic Facilities & all the Requirements. Making them to work as a One Hand Army.

•  Expanding & Diversifying the Activities: Exploring the New Technologies & Encouraging the Workers to work with proper Attention & aiming to Diversifying the Work.
• Free from the Control of the Political Parties: There Should be no Political Control & no Government Interference in the Work Management.

• Proper Implementation of the Code of Conduct: There should be Proper Work Conduct for working & Proper Working Conditions should be provided to the Workers as well.

Example of Trade Union:

Example 1: This Example is related to the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America (UAW), which was founded in the year 1935.

It consisted of the members from the Automobile, Equipment Manufacturing & Farm Equipment Workers.

It has more than 0.4 million workers who are the Active members & 0.58 million as the Retired Members from the U.S., Rico & Canada.

UAW has 600 Local Unions in which 1150 Employee Contracts were being formed with the 1600 Employers across the U.S., Rico & Canada.

Till now, it has used CBA to achieve almost-

• Employer – Sponsored Health Insurance to the Pan Industrial Workers.
• First Allowances, which are usually termed as Basic Allowances, were given for the Cost of Living to the Employees.
• A Milestone in Provisions for Job & Income Security as well.

Example 2: This example is related to the Service Employees International Union (SEIU), which was established in the year 1921 in Chicago as a Building Service Employees Union (BSEIU).

It consisted primarily of Public Employees Security, Non-Professional Health Care Professionals, Technical Workers & RNs as well.

It consisted of around 2 million members (about the population of Nebraska) from these sectors.  

 The main aim of this Union is to maintain the Equality in Society for all the Workers who were working there so that their families & Communities may thrive. [2]

CASE LAW:

1. James Robson vs The Labour Commissioner on 5^th July 2021

There is immunity from the Civil Suit in certain cases of the Trade Union & hence the members

 as well. 

• D.P. Sharaf vs Union of India on 13^th May 2022

In this case, the five Central Trade Unions Organizations which negotiated were not registered under the provision of the Trade Unions Act, 1926. [3]

THE COLLECTIVE BARGANING

1. MEANING:

In simple terms, if we discuss about the concept of Collective Bargaining it is stated that-

  ‘It is the Discussion between the Trade Union & an Employer discussing the Paying & Working Conditions of the Union Members among themselves.’

The term ‘Collective Bargaining’ is the process in which the Working People, through their Unions, usually negotiate Contracts with their Employers to determine the Terms of their Employment.

  That includes Paying Benefits, Health Facilities, Working Hours, Holidays & Leaves and Work Life Balance, and much more facilities etc.

Collective Bargaining is also known as the Negotiation Process between the Representatives of Workers and the Employers to establish the conditions for the Employment process.

   This Agreement not only covers the Wages but also it covers the Hiring Practices, Layoffs, Job & Working Conditions Hours as well.

Establishment of Collective Bargaining:

The Collective Bargaining came into existence in 1947 when the Supreme Court itself laid down the Industrial Disputes Act, for the purpose of securement of the Social Justice by the means of the Collective Bargaining.

Scope of Collective Bargaining:

The Scope of the Collective Bargaining are as follows:

1. Cooperation & Communication between the Trade Union Organization & Management: Its main responsibility is to maintain the Cooperation between the Trade Union & the Management by maintenance of the Confidential Information between the two Management.

            Providing them with Proper Technical Facilities and all the Facilities which are required.

      2)  Employment & Working Conditions:  Taking proper care of the Employees who are

            Working in that Organization is most important.

         Providing them with Proper Leave, Wages, Working Hour, Holidays, Working Facilities all                                                                           becomes the Necessity so it should be kept in mind.

      3) Wages & Remuneration:  Giving Employers with timely Remuneration and wages is the            crucial responsibility.

          Giving them Payments on time, giving them proper Working Holidays is much more

           Important.

       4) Human Resource Development & Other Social Issues: Itusually covers matters which are related to the Training & Human Resources Development Activities.

Key Functions of the Collective Bargaining:

The Main key functions of the Collective Bargaining are as follows:

• Economic Strength: Usually Economic Strength refers to the increase in the Strength of the Employers & the Management also.

• Uniformity: Creation of the Uniform Conditions for the Employers & the Employees providing them with proper Sick Leaves, Working Hour Conditions, Health Facilities etc.

• Fair Redressal: Securing of a Proper Prompt & Fair Redresses of Grievances.

• Efficiency: To ensure the proper functioning of the Organization and ensuring that all the facilities are being provided to the Management and as well as to Employers working there as well. It also helps in ensuring that the Management works in a proper way without creating any differences in the future as well.

• Stability: Collective Bargaining helps in the maintenance of the Company and ensures that it remains Stable.

• Regulation: It is a method which usually helps in regulating the Conditions of the Employment for the Employers & the Employees as well.

• Solution: It usually helps in providing the Solutions to the current Company or the Industry in which it’s Employees & Employers are Currently Working. Providing its Employees & Employers with the proper Working Conditions, Age Pension Benefits & with other Fringe Benefits.

• New Procedures: It ensures that New Training Methods & New Skills are being provided to its Management so that they can work with latest techniques & skills and cope up with the Current or Present Environment Conditions as well. It also helps in figuring out the latest Solutions instead of using the Old Techniques.

• Democratic Principles: It basically refers to the Political & Industrial Relations issues how they basically relates to the issues of the Employer & Employees and also their Working Management issues as well.

Functions & Powers of the Bargaining Council:

The functions of the Bargaining Council are as follows:

1. The Bargaining Council have knowledge of Accounting Information for Fair Redressal.

• It also has the power to solve Industrial Disputes & also to resolve the Conflicts between the Management.

• Increasement in the Economic Strength of the Employees with the help of the Collective Bargaining process.

Types of Collective Bargaining:

1. Distributive Bargaining: This is the type of Bargaining which is also termed as the ‘Negotiation Bargaining’.

In this type of Bargaining one party benefits the expenses of the other Party.

This kind of Bargaining helps in increasing the Profit Sharing, Wages, Bonus & other Financial Benefits as well.

• Integrative Bargaining: This is the type of Bargaining in which Both the Parties tend to share the benefit with each other.

It is also be termed as “Win to Win Situation”.

In simple term, it is said that when both the parties understands each other concerns & try to figure the solution for that current problem.

• Productivity Bargaining: As the name suggests, this type of Bargaining helps in increasing or boosting up of the Productivity.

While increasing of the Productivity usually helps in increasing of the Higher Wages.

• Composite Bargaining: This type of Bargaining usually emphasizes on the Employee Welfare Needs & his Job Security as well rather than on the Paying Factors.

It provides the Employer & the Employee a long term relationship which is Mutually Beneficial.

• Concessionary Bargaining: It is the type of Bargaining in which the Union usually sacrifice some of its Benefits to bail out his Employer during a Stressed Economic Situation, which is going to Benefit the Employees in the Long Run Term Situation.

Examples of Collective Bargaining:

Example 1: The first example is related to the ‘National Football League Players Association’ (NFLPA) in the year 1968 in which the football players went on to the Strike to pressurize the National Football League (NFL) team owners to increase their Minimum Salaries & also to provide them with the Pension Benefits as well.

After, 11 days (about 1 and a half weeks) of Strike a Collective Agreement was reached between them & also their Salaries got increased along with the Pension Benefits as well.

Example 2: The second example is related to the ‘United Steelworkers (USW) & United States Steel Corporation (USSC) in the year 2018 after the 4 years of the Collective Bargaining Agreement.

According to the Agreement, it was stated that each member will be given a Signing Bonus of $4000, over the next 4 years along with the Pension Benefits in them.

The Agreement ensured that the Employees share in Profit Distribution was increased with the period as well. [4]

CASE LAW:

1. Ram Prasad Vishwakarma vs Industrial Tribunal

Here, the Court observed that it was a great disadvantage to the worker to obtain a good working environment in which the worker obtains the Dignity & Wages from their Employers during the days before the Collective Bargaining concept came into the Existence.

• Delhi State Electricity Workers vs NCT of Delhi & Ors on 13^th July 2012

The Right for the Collective Bargaining regarding the interest of the Workers kept on negotiating with the five establishments for the welfare of the Collective Bargaining of who they were. [5]

CONCLUSION

So, the above discussed were all the concepts related to the topic mentioned.

• Recognition

• Trade Union

• Collective Bargaining.

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[1] slideshare.net/recognition- of- trade-unions

[2] www.wallstreetmojo.com

[3] https://indiankanoon.org

[4] studynotesexpert.com

[5] https://indiankanoon.org