Trade Unions under the Industrial Relations Code

Article 19(1)(c) guarantees the right to form unions, but the legal status of a union, its immunities and its right to bargain come from statute. Chapter III of the Industrial Relations Code replaces the Trade Unions Act, 1926 and adds what that Act lacked: a statutory scheme for recognising a negotiating union or council. This note covers registration, funds, immunities, office-bearers, disputes and recognition.

1. Meaning and Registration

• Trade union, s.2(zl). Any combination, temporary or permanent, formed primarily to regulate relations between workers and employers, workers and workers, or employers and employers, or to impose restrictive conditions on a trade or business; it includes federations.
• Registration optional. An unregistered union is lawful, but only a registered union enjoys the status, immunities and recognition the Code provides.

Figure 1: Registration, cancellation and appeal

• Incorporation, s.12. A registered union is a body corporate with perpetual succession and a common seal, able to hold property, contract, sue and be sued.
• Tribunal replaces civil courts. Appeals against refusal or cancellation of registration now lie to the Industrial Tribunal.

2. Funds, Rights and Immunities

Figure 2: What registration brings

3. Office-Bearers

• Disqualification, s.21. A person below 18, or convicted of an offence involving moral turpitude and imprisoned (until five years after release), or disqualified by the Tribunal, cannot be an office-bearer; nor can a Minister or a holder of an office of profit.
• Outsiders, s.23. In the organised sector, all office-bearers except not more than one-third or five, whichever is less, must be employed in the establishment or industry. In the unorganised sector, at least one-half must be. Retired or retrenched workers are not outsiders.

4. Negotiating Union and Negotiating Council, Section 14

Figure 3: Who negotiates with the employer

• Decisions of the council. An agreement is reached if a majority of the representatives agree.
• Validity, s.14(6). Recognition lasts three years, extendable by mutual decision up to five years in total.
• Food Corporation of India Staff Union v FCI (1995). The Supreme Court laid down a secret ballot procedure to determine which union commands majority support, a practice relevant to verifying membership under s.14.
• Central and State unions, s.27. The Central and State Governments may recognise a union or federation as a Central or State Trade Union.

5. Constitutional Limits

• All India Bank Employees' Association (1962). The right to form a union does not carry a guaranteed right to collective bargaining or to strike (Topic 2)
• Damyanti Naranga v Union of India (1971). The State cannot by law force members into an association against their will; the right to form an association includes the right to continue it with chosen members.
• Balmer Lawrie Workers' Union v Balmer Lawrie (1985). A settlement requiring non-members to pay a service charge to the recognised union was upheld.

6. Frequently Asked Questions

How is a negotiating union recognised under the IR Code?

If there is only one registered union in the establishment, it is the sole negotiating union. If there are more, the union with the support of 51% or more of the workers on the muster roll is recognised. If none reaches 51%, the employer constitutes a negotiating council of the unions that each have at least 20% support, with one representative for each 20%.

Who may become an office-bearer of a trade union?

Any member who is at least 18, has not been convicted and imprisoned for an offence involving moral turpitude within the last five years, and is not disqualified by the Tribunal. Ministers and holders of offices of profit are barred. In the organised sector, outsiders may be no more than one-third of the office-bearers or five, whichever is less.

7. Related Topics

• Topic 2: Constitutional Framework of Labour Law. Article 19(1)(c)
• Topic 13: Notice of Change and Bi-partite Committees. Workers' participation at plant level.
• Topic 15: Strikes and Lock-outs. Collective action and its limits.