Critical concepts in Indian I R

and the changes that will come

 INDIAN TRADE UNIONS - Features

History shows us that Indian TUs are Fragmented.

Factors responsible for this?
REGISTRATION & RECOGNITION

Registration – Acceptance of the existence by

the Government
In India acceptance by the Government i.e.
REGISTRATION is under the Trade Union Act 1926 or
the IR Code 2020
Whoever satisfy the definition of Trade Union
under these Acts can be registered
 TRADE UNIONS

The definition of Trade Union under the T U Act:

“Trade Union” means any combination whether temporary
or permanent, formed primarily of the purpose of
regulating the relations between workers and employers
or between workers and workers, or between employers
and employers, or for imposing restrictive conditions on
the conduct of any trade or business, and includes any
federation of two or more Trade Unions”
 TRADE UNIONS

The definition of Trade Union under the I R Code:

“Trade Union” means any combination whether temporary
or permanent, formed primarily of the purpose of
regulating the relations between workers and employers
or between workers and workers, or between employers
and employers, or for imposing restrictive conditions on
the conduct of any trade or business, and includes any
federation of two or more Trade Unions”
However as per IR Code (definition of worker has been
elaborated and includes)…..
 TRADE UNIONS
The definition of Trade Union under the T U Act:
“Trade Union” means any combination whether temporary or
permanent, formed primarily of the purpose of regulating the relations
between workers and employers or between workers and workers, or
between employers and employers, or for imposing restrictive
conditions on the conduct of any trade or business, and includes any
federation of two or more Trade Unions”
However as per IR Code
for the purposes of Chapter III (dealing with Trade Unions), "worker" 
(a) means all persons employed in trade or industry; &
(b) includes the worker as defined in clause (m) of secn 2 of
the Unorganised Workers Social Security Act, 2008
Secn. 2 (m) states Unorganised worker means
“a home-based worker, self-employed worker or a wage worker in
the unorganised sector and includes a worker in the organised
sector who is not covered by any of the Acts mentioned in
Schedule II to this Act”
 Liabilities & Rights of a REGISTERED Union

a. Liabilities of a Registered TU (e.g.)

(i) Have only eligible people as office bearers

(ii) A/C books to be open for inspection
(iii) Annual returns have to be sent to
Registrar with
(1) Audited receipt and expenditure
(2) Changes in Office Bearers
(3) Changes in Rules etc.
b. Rights of Registered TU (e.g.)
(i) Power to make rules
(ii) Creation of Funds
 Liabilities & Rights of a REGISTERED Union

b. Rights of Registered TU (e.g.)

(i) Power to make rules
(ii) Creation of Funds
(iii) Immunity of Office Bearers and Members
against Sub Secn. (2) of Secn. 120(B)
of IPC & Civil Suits for furthering TU
objectives. However there is NO immunity
for committing a criminal offence
(iv) Can have “Protected workmen”
 INDIAN TRADE UNIONS - Features

REGISTRATION VIS-À-VIS RECOGNITION

Registration – Acceptance of the existence by

the Government
In India acceptance by the Government i.e. REGISTRATION
is under The TU Act 1926 or The IR Code 2020
Whoever satisfy the definition of Trade Union under these
Acts can be registered
Recognition - Acceptance of the existence by
the Management
Is it important ??
The current situation & the future
 RECOGNITION the current status

Currently (as per I D Act 1947) there is

No Central Law on Recognition as per statutes
Although there are State legislations on Recognition
(e.g.)
- BIR Act 1946
- ID (Rajasthan Amendment) act 1958
- MP IR Act 1960
- recently other states (e.g. West Bengal)
We did make efforts in the past to bring in Recognition,
but without success
Changes have been brought in as per IR Code 2020, but till
it is implemented status quo is maintained
 IR Code 2020

Recognition (secn. 14)

(1) There shall be a negotiating union or a negotiating council,
in an industrial establishment having registered Trade
Union for negotiating with the employer of the industrial
establishment, on such matters as prescribed. 
(2) Where only one Trade Union of workers registered under
the code then, the employer of such industrial
establishment shall, recognise such Trade Union as sole
negotiating union of the workers.
 IR Code 2020
Recognition (secn. 14)
(3) If more than one registered Trade Union of workers then, the
Trade Union having fifty-one per cent. or more workers
(supporting that Trade Union) shall be recognised by the
employer of the industrial establishment, as the sole
negotiating union of the workers.
(4) If more than one registered Trade Union of workers and no
such Trade Union has fifty-one per cent. or more of
workers (supporting that Trade union), then, there shall be
constituted by the employer, a negotiating council for
negotiation, consisting of the representatives of such
registered Trade Unions having the support of not less than
twenty per cent. of the total workers on the muster roll and
such representation shall be of one representative for each
twenty per cent. and for the remainder after calculating the
membership on each twenty per cent.
 IR Code 2020
Recognition (secn. 14)
(5) Where any negotiation on the matters referred to in sub-
section (1) is held between an employer and a negotiating
council, any agreement is said to be reached if it is agreed
by the majority of the representatives of the Trade Unions in
such negotiating council.
(6) Any recognition made under sub-section (2) or (3) or (4) shall
be valid for three years from the date of recognition or
constitution or such further period not exceeding five years,
in total, as may be mutually decided by the employer and the
Trade Union, as the case may be.
(7) The facilities to be provided by industrial establishment to a
negotiating union or negotiating council shall be such as may
be prescribed.
 REGISTRATION VIS-À-VIS RECOGNITION

Incase you would like to Recognize then how would

you choose which union to recognize?
No process described in the IR Code or the Rules
What could be the processes to find the majority ?
The processes could be
Secret Ballot
Check Off
Verification
and their Criticisms
 REGISTRATION VIS-À-VIS RECOGNITION

The concept of Recognition has been

introduced in the IR Code
But how successful will it be ??