Recognition of trade unions


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Recognition of trade unions

  2. 2. What is a TRADE UNION?  A trade union is an organization of workers who have banded together to achieve common goals such as protecting their integrity, achieving higher pay, increasing the number of employees an employer hires, and better working conditions.  The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.  OBJECTIVES:  Representation  Negotiation (Collective Bargaining)  Voice in decision affecting workers like lay off, retrenchment.
  3. 3. What is RECOGNITION?  Recognition means the expressed recognition of a registered trade union by an employer or by an employers association for the purposes of collective bargaining.  Recognition is different from registration.  Recognition is provided to that union which comprises of more than 50 per cent of the employees in that establishment as its members.  It is the employer and only the employer, who awards recognition to one or more unions, or refuses such recognition.
  4. 4. TYPES OF RECOGNITION  Recognition is of two types:  VOLUNTARY TRADE UNION RECOGNITION: When an employer voluntarily recognizes a trade union without using any legal procedures.  STATUTORY TRADE UNION RECOGNITION: If an employer and trade union do not come to a voluntary recognition agreement, a trade union can make an application for statutory recognition. This only applies where the employer, together with any associated employers, employs 21 or more workers.
  5. 5. CONDITIONS FOR RECOGNITION  All ordinary members are workmen employed in the same industry or in industries closely allied to or connected with another;  It is representative of all workmen employed by the employer in that industry or those industries;  Its rules do not provide for the exclusion from membership of any class of workmen  Its rules provide for the procedure for declaring a strike ;  Its rules provide that a meeting of its executive shall be held at least once in every 6 months  It is a registered trade union and that it has complied will all the provisions of the Trade unions (amendment) Act, 1947.
  6. 6. METHODS OF RECOGNITION Recognition Membership Verification Check-Off Secret Ballot Code of Discipline
  7. 7. 1) Membership Verification: An official of the labor department of the state or central government visits the establishment, obtains the manpower list from the management and asks each employee individually whether or not they wish to become members of a union and if so, which union. Based on the responses, it is identified which union gets the majority support of employees. This becomes the criteria for selecting the sole bargaining agent in an establishment. 2) Check-off: Employees are asked to state in writing whether or not they belong to a union and if they do, to which union. Also, they should undertake in writing that they are willing to have union membership deducted from their salary. The check-off system helps management to know and make an assessment of the relative strength of unions for the purpose of recognition.
  8. 8. 3) Secret Ballot: A more democratic method, election by secret ballot, enables employees to exercise their option secretly, without fear or favor. The entire process takes place in the overall supervision of the Chief Labor Commissioner. There are two types of secret ballots: • Panel: In panel type, the union formed can be a mix of electing members from different parties. For example, a union may be formed with president from one union, secretary from other union and treasurer from a third union. • Banner: In banner type, employees vote for a single union i.e. all positions are held by electing members of same union. 4) Code of Discipline: The criteria is set for recognition of trade unions. In professionally managed organizations the management signs an agreement with the recognized union which stipulates do’s and don’ts for management and union but all these are not binding on the management and the trade union.
  9. 9. CRITERIA FOR RECOGNITION UNDER CODE OF DISCIPLINE 1) The Unions should have at least one year standing. 2) They should have at least 15% of the membership of the establishment to claim recognition; and 25% of the work force to claim recognition on industrial basis. 3) When there are multiple unions in an establishment, the union with largest membership will be given recognition. 4) The local unions if they have more than 50% of the membership of the locality, can be recognized to represent their grievances. 5) The recognition granted will be valid for 2 years. 6) The unions which do not follow code of discipline will not be granted recognition.
  10. 10. RIGHTS OF RECOGNIZED TRADE UNIONS  Right to sole representation  Entering into collective agreement on terms of employment and conditions of service  Collection of membership subscription within the premises of the undertaking, the right to check-off  Holding discussion with departmental representatives of its workers-members within factory premises  Inspecting by prior agreement the place of work of any of its members  Nominating its representatives on works/ grievance committees and other bipartite committees.
  11. 11. TRADE UNIONS IN INDIA  All India Trade Union Congress (AITUC)  Bharatiya Mazdoor Sangh (BMS)  Centre of Indian Trade Unions (CITU)  Hind Mazdoor Kisan Panchayat (HMKP)  Hind Mazdoor Sabha (HMS)  National Labor Organization (NLO)  Union Trade Union Congress (UTUC)  Indian Federation Of Free Trade Unions (IFFTU)  Indian National Trade Union Congress (INTUC)
  12. 12. CASE STUDY
  13. 13. Maruti locks horns with its Union on recognition The new Maruti Suzuki Employees Union (MSEU) at Manesar Plant (near Gurgaon, Delhi) demand recognition as a Union and the Management doesn’t seem to be interested in letting that happen. The Management is of the stern view that there is already a recognized Union by name Maruti Udyog Kamgar Union (MUKU) and the workers who are interested in participating in the election only need to participate in the election under the said Union therefore making it unnecessary for the Management to mushroom in a rival Union. The workers who intent to form MSEU are of the opinion that MUKU is a Union representing Gurgaon Plant and do not represent Manesar Plant and that only MSEU is the true representative face of the workers at Manesar Plant and therefore need not participate in the election organized by the Plant.
  14. 14. The workers with MSEU decided to boycott the election slated for 16th June and resorted to a strike on 4th June demanding recognition of their Union. The strike lasted for 13 days and the Management suspended 8 Office bearers of MSEU and 3 other workers. Without relenting to the demands of the newly formed Union Maruti Suzuki Chairman R C Bhargava said elections would be held for “both the plants” and those who win will represent the workers of “both Gurgaon and Manesar.” “We are the same company—Manesar and Gurgaon—and they are not independent entities.” However, Bhargava clarified that the management does not have any role in the election process. After 13 days of deadlock, the strike was called off following intervention of Haryana Chief Minister Bhupinder Singh Hooda with the management agreeing to take back 11 sacked employees and cut down the no work no pay rule of eight day’s salary cut for every single day of the strike to three days.
  15. 15. Today the horns still stay locked between the Management and the Union. But the question that arises is that when the Managements role is of only an administrative nature why do they feel threatened by the formation of the new Union. Normal production is expected to resume in Maruti Suzuki Plant at Manesar. This standoff of 33 days between the workers Union and the Management on the issue of recognition of their union and reinstatement of the suspended workers was smoothened up by the intervention of Harayana Government whereby bringing about a consensus. It was the third dispute to affect production at Maruti Suzuki in three months. This plant produces 1200 cars every day in 2 shift. The workers resorted to sabotaging production and deliberately causing quality problems. The production problems were discovered during quality-control checks and included doors falling off and dents in car bodies, according to the firm. The situation had reached a stage where it was directly harming customers’ interest and trust. The 2,000 workers were locked out of the factory, one of two operated by Maruti in Haryana, until they had signed the Good Conduct Bond.
  16. 16. As per the consensus, the management of Maruti Suzuki would conditionally take back the 18 trainees who were suspended as the workers agreed to sign the Good Conduct Bond laid down by the management. The said bond promises that they would not sabotage production, resort to go-slow tactics or otherwise hamper output at its Manesar plant. However, the management stated that the disciplinary action taken against the 44 workers would be dealt with separately and subject to the outcome of the domestic enquiry. Now the question remains is that can a Good Conduct Bond override the provisions of the Industrial Disputes Act and other Apex court judgments which make Strike a legitimate weapon of the workers. Maruti Suzuki wouldn’t give the workers such a bond regarding a Lockout, the management’s weapon.
  17. 17. THANK YOU