Trade union with more than 50 per cent workers' support can be sole negotiator with management: Madras HC

The division bench noted that though Section 14 of the Proposed Industrial Relations Code provides a mechanism to provide a reasonable representation to all trade unions, unfortunately, it has not been brought into force till date.
Madras HC
Madras HC(File photo)
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CHENNAI: The Madras High Court ruled that only trade unions with more than 50 per cent of the worker support is eligible to act as sole negotiator with the management regarding wage revision and issues concerning the workers' welfare.

The ruling was issued by a division bench comprising Justices R Subramanian and C Kumarappan while disposing of a 2011 appeal filed by M Shanmugam, general secretary of DMK's Labour Progressive Federation (LPF).

The plea sought a direction for transport corporations in the state to engage only with LPF, which is recognised as the union with majority support, for negotiations with the management.

The appellant-union had filed a writ petition against inviting the AIADMK-affiliated trade union, ATP, which was not recognized at the relevant time, but at the instance of the then ruling party, AIADMK, for talks. However, the single judge had dismissed the petition holding that a trade union cannot seek a restraint on the management as whom should it negotiate with.

The division bench noted that though Section 14 of the Proposed Industrial Relations Code provides a mechanism to provide a reasonable representation to all trade unions, unfortunately, it has not been brought into force till date. Therefore, the court has to go by the judge made law.

It remarked that the majoritarian theory, though would be the easiest possible solution, is also not free from possible flaws because a union with a wafer-thin majority of 51 per cent of workmen or just about 50 per cent support may end up sacrificing the rights of the remaining workers.

The court made three proposals to resolve the issue: If any one union can show that it has the support of more than 50 per cent of the workers then it will be the sole representative of the work force; if no union has more than 50 per cent support then all the unions which have the support of more than 20 per cent of the workforce will form the negotiating council; and remaining union(s) will have the right to nominate one representative for every 20 per cent of votes it has.

“We, therefore, conclude that no union except the one which has got the support of more than 50 per cent of the work force - be it recognised or otherwise - will have a right to prevent other unions from participating in the negotiations with the Management,” the bench said in the recent order.

It added, “In order to provide a wide base for representation any Union which has the support of more than 20 per cent of the work force will form part of the negotiating council.”

The court also favoured the ‘secret ballot system’, as the ‘check off system’ has lost its reliability, for deciding the majority support because this method can also take care of the fluctuating political fortunes.

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