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Chapter III of the MRTU & PULP Act, 1971 deals with the recognition of a trade union. In this article, we shall study the recognition of a trade union and the importance of its registration.
Union Under MRTU & Pulp Act, 1971:
Under Section 3 clause 17 of MRTU & Pulp Act, 1971, Union means a trade union of employees, which is registered under the Trade Unions Act, 1926.
Under Section 3 clause 13 of MRTU & Pulp Act, 1971, recognized union means a union which has been issued a certificate of recognition under Chapter III.
Union Under Trade Union Act, 1926:
According to Section 2(h) of the Trade Union Act, 1926, “Trade Union” means any 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 conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions:
Provided that this Act shall not affect—
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft.
Need for Recognition of Trade Union:
- Collective bargaining is an important aspect of employer-employee relation. The right of collective bargaining is not provided for all trade unions that exists but is provided for those trade unions which are recognized.
- Registration of trade union is one thing and the recognition of trade union as a sole bargaining agent for the purpose of collective bargaining is another thing.
- A union must be recognized before it may effectively represent any employees. Once a union is recognized it serves as the bargaining agent for the workers in a particular bargaining unit.
Application of Chapter III of MRTU & Pulp Act, 1971:
Section 10 of MRTU & PULP Act, 1971:
(1) Subject to the provisions of sub-sections (2) and (3), the provisions of this Chapter shall apply to every undertaking, wherein fifty or more employees are employed, or were employed on any day of the preceding twelve months : Provided that, the State Government may, after giving not less than sixty days’ notice or its intention so to do, by notification in the Official Gazette, apply the provisions of this Chapter to any undertaking, employing such number of employees less than fifty as may be specified in the notification.
(2) The provisions of this Chapter shall not apply to undertakings in industries to which the provisions of the Bombay Act for the time being apply.
(3) If the number of employees employed in any undertaking to which the provisions of this Chapter apply at any time falls below fifty continuously for a period of one year, those provisions shall cease to apply to such undertaking.
Application for Recognition of Trade Union Under MRTU & Pulp Act, 1971:
Section 11:
Application for Recognition of Union:
(1) Any union (hereinafter referred to as the “applicant-union”) which has for the whole of the period of six calendar months immediately preceding the calendar month in which it so applies under this section a membership of not less than thirty per cent. of the number of employees employed in any undertaking may apply in the prescribed form to the Industrial Court for being registered as a recognised union for such undertaking.
(2) Every such application shall be disposed of by the Industrial Court as far as possible within three months from the date of receipt of the application, where a group of concerns in any industry which is notified to be one undertaking for which recognition is applied for is situated in the same local area; and in any other case, within four months.
Explanation : ‘Local area’ for the purposes of this sub-section means the area which the State Government may, by notification in the Official Gazette, specify in the notification.
Criteria for Application for Recognition of Trade Union:
- Any union can apply for the recognition if for the whole period of six calendar months immediately preceding the calendar month in which the application is made must have a membership of not less than thirty percent of the number of employees employed in any undertaking.
- The application for recognition of the trade union for such an undertaking must be in the prescribed form to the Industrial Court.
- The criteria of 30% membership mean on the date of application of recognition of union the membership should be not less than 30%. The temporary or transitory fluctuation is allowed. (Kamgar Utkarsha Sabha v. Bennett Coleman & Co. Ltd., 1994 III LLJ 798)
- Other requirements:
- The applicant union must show that
- It possesses the required percentage of membership.
- Its constitution is as per the guidelines with section 18 Rule 4 and requirement of Form A.
- It has made provisions for governmental audits.
- It has made provisions for periodical meetings of its executive committee.
- It has made payment of requisite fees. (Rs. 5 currently).
- The list of members submitted for registration should not contain members having arrears for three calendar months. (Shramik Sena v. Blue Star Worker’s Union, 2006 II CLR 591)
- The list of members submitted should not contain the same members as in the list of contending other unions. In such a case, the members common in both lists are excluded. This clause is applicable only when there is an objection from other unions to the registration. (Shramik Utkarsha Sabha v. Maharashtra Film, Stage & Cultural Dev. Corp. Ltd., 2008 III CLJ 167)
Procedure of Recognition of Trade Union Under MRTU & Pulp Act, 1971:
Section 12.
Recognition of Union:
(1) On receipt of an application from a union for recognition under section 11 and on payment of the prescribed fees, not exceeding rupees five the Industrial Court shall, if it finds the application on a preliminary scrutiny to be in order, cause notice to be displayed on the notice board of the undertaking, declaring its intention to consider the said application on the date specified in the notice, and calling upon the other union or unions, if any, having membership of employees in that undertaking and the employers and employees affected by the proposal to show cause, within a prescribed time, as to why recognition should not be granted to the applicant-union.
(2) If, after considering the objections, if any, that may be received under sub-section (1) from any other union (hereinafter referred to as “other union”) or employers or employees, if any, and if after holding such enquiry in the matter as it deems fit, the Industrial Court comes to the conclusion that the conditions requisite for registration specified in section 11 are satisfied, and the applicant-union also complies with the conditions specified in section 19 of this Act, the Industrial Court shall, subject to the provisions of this section, grant recognition to the applicant-union under this Act, and issue a certificate of such recognition in such form as may be prescribed.
(3) If the Industrial Court comes to the conclusion, that any of the other unions has the largest membership of employees employed in the undertaking, and the said other union has notified to the Industrial Court its claim to be registered as a recognised union for such undertaking, and if it satisfies the conditions requisite for recognition specified in section 11, and also complies with the conditions specified in section 19 of this Act, the Industrial Court shall, subject to the provisions of this section, grant such recognition to the other union, and issue a certificate of such recognition in such form as may be prescribed.
Explanation : For the purpose of this sub-section, the other union shall be deemed to have applied for recognition in the same calendar month as the applicant-union.
(4) There shall not, at any time, be more than one recognised union in respect of the same undertaking.
(5) The Industrial Court shall not recognise any union, if it is satisfied that the application for its recognition is not made bona fide in the interest of the employees, but is made in the interest of the employer, to the prejudice of the interest of the employees.
(6) The Industrial Court shall not recognise any union, if, at any time, within six months immediately preceding the date of the application for recognition, the union has instigated, aided or assisted the commencement or continuation of a strike which is deemed to be illegal under this Act.
Period of Disposition of Application:
Industrial Court shall disposed of the application as far as possible within three months from the date of receipt of the application, where a group of concerns in any industry which is notified to be one undertaking for which recognition is applied for is situated in the same local area; and in any other case, within four months.
Recognition of Union:
On receipt of an application from a union for recognition under section 11 and on payment of the prescribed fees, not exceeding rupees five the Industrial Court shall, if it finds the application on a preliminary scrutiny to be in order, must display a notice on the notice board of the undertaking, declaring its intention to consider the said application on the date specified in the notice. It should also call upon the other union or unions, for their objections within a prescribed time, as to why recognition should not be granted to the applicant-union.
If, after considering the objections, if any, that may be received under sub-section (1) from any other union (hereinafter referred to as “other union”) or employers or employees, if any, and if after holding such inquiry in the matter as it deems fit, the Industrial Court comes to the conclusion that the conditions requisite for registration specified in section 11 are satisfied, and the applicant-union also complies with the conditions specified in section 19 of the MRTU & PULP Act 1971, the Industrial Court shall, subject to the provisions of this section, grant recognition to the applicant-union under this Act, and issue a certificate of such recognition in such form as may be prescribed.
If the Industrial Court comes to the conclusion, that any of the other unions have the largest membership of employees employed in the undertaking, and the said another union has notified to the Industrial Court its claim to be registered as a recognized union for such undertaking, and if it satisfies the conditions requisite for recognition specified in section 11, and also complies with the conditions specified in section 19 of this Act, the Industrial Court shall, subject to the provisions of this section, grant such recognition to the other union, and issue a certificate of such recognition in such form as may be prescribed. For the purpose of this subsection, the other union shall be deemed to have applied for recognition in the same calendar month as the applicant-union.
Causes of Rejection of Application for Recognition of Trade Union:
- There shall not, at any time, be more than one recognized union in respect of the same undertaking. This provision is there to avoid the mushroom growth of unions.
- The Industrial Court shall not recognize any union, if it is satisfied that the application for its recognition is not made bona fide in the interest of the employees, but is made in the interest of the employer, to the prejudice of the interest of the employees.
- The Industrial Court shall not recognize any union, if, at any time, within six months immediately preceding the date of the application for recognition, the union has instigated, aided or assisted the commencement or continuation of a strike which is deemed to be illegal under this Act.
Cancellation of Recognized Trade Union Under MRTU & Pulp Act, 1971:
Section 13:
Cancellation of Recognition and Suspension of Rights:
(1) The Industrial Court shall cancel the recognition of a union if after giving notice to such union to show cause why its recognition should not be cancelled, and after holding an inquiry, it is satisfied, –
(i) that it was recognised under mistake, misrepresentation or fraud; or
(ii) that the membership of the union has, for a continuous period of six calendar months, fallen below the minimum required under section 11 for its recognition :
Provided that, where a strike (not being an illegal strike under the Central Act) has extended to a period exceeding fourteen days in any calendar month, such month shall be excluded in computing the said period of six months :
Provided further that, the recognition of a union shall not be cancelled under the provisions of this sub-clause, unless its membership for the calendar month in which show cause notice under this section was issued was less than such minimum; or
(iii) that the recognised union has, after its recognition, failed to observe any of the conditions specified in section 19; or
(iv) that the recognised union is not being conducted bona fide in the interest of employees, but in the interests of employer to the prejudice of the interest of employees; or
(v) that it has instigated, aided or assisted the commencement or continuation of a strike which is deemed to be illegal under this Act; or
(vi) that its registration under the Trade Unions Act, 1926, XVI of 1926 is cancelled; or
(vii) that another union has been recognised in place of a union recognised under this Chapter.
(2) The Industrial Court may cancel the recognition of a union if, after giving notice to such union to show cause why its recognition should not be cancelled, and after holding an inquiry, it is satisfied, that it has committed any practice which is, or has been declared as, an unfair labour practice under this Act :
Provided that, if having regard to the circumstances in which such practice has been committed, the Industrial Court is of opinion, that instead of cancellation of the recognition of the union, it may suspend all or any of its rights under sub-section (1) of section 20 or under section 23, the Industrial Court may pass an order accordingly, and specify the period for which such suspension may remain in force.
The Industrial Court shall cancel the recognition of a union if after giving notice to such union to show cause why its recognition should not be canceled, and after holding an inquiry, it is satisfied, –
- that it was recognized under mistake, misrepresentation or fraud; or
- that the membership of the union has, for a continuous period of six calendar months, falling below the minimum required under section 11 (30% of the total number of employees employed) for its recognition: Provided that, where a strike (not being an illegal strike under the Central Act) has extended to a period exceeding fourteen days in any calendar month, such month shall be excluded in computing the said period of six months:
- that the recognized union has, after its recognition, failed to observe any of the conditions specified in section 19; or
- that the recognized union is not being conducted bona fide in the interest of employees, but in the interests of the employer to the prejudice of the interest of employees; or
- hat it has instigated, aided or assisted the commencement or continuation of a strike which is deemed to be illegal under this Act; or
- that its registration under the Trade Unions Act, 1926, XVI of 1926 is canceled; or
- that another union has been recognized in place of a union recognized under this Chapter.
- The Industrial Court may cancel the recognition of a union if, after giving notice to such union to show cause why its recognition should not be canceled, and after holding an inquiry, it is satisfied, that it has committed any practice which is, or has been declared as, an unfair labour practice under this Act .
Recognition of Other Union Under MRTU & Pulp Act, 1971:
There cannot be more than one recognized trade union under one employer under the M.R.T.U. and P.U.L.P. Act, 1971.
Section 14:
Recognition of Other Union:
(1) If any union makes an application to the Industrial Court for being registered as a recognised union in place of a recognised union already registered as such (hereinafter in this section referred to as the “recognised union”) for an undertaking, on the ground that it has the largest membership of employees employed in such undertaking, the Industrial Court shall, if a period of two years has elapsed since the date of registration of the recognised union, call upon the recognised union by a notice in writing to show cause, within thirty days of the receipt of such notice, as to why the union now applying should not be recognised in its place.
An application made under this sub-section shall be accompanied by such fee not exceeding rupees five as may be prescribed:
Provided that, the Industrial Court may not entertain any application for registration of a union, unless a period of one year has elapsed since the date of disposal of the previous application of that union.
(2) If, on the expiry of the period of notice under sub-section (1), the Industrial Court finds, on preliminary scrutiny, that the application made is in order, it shall cause notice to be displayed on the notice board of the undertaking, declaring its intention to consider the said application on the date specified in the notice, and calling upon other union or unions, if any, having membership of employees in that undertaking, employer and employees affected by the proposal to show cause within a prescribed time as to why recognition should not be granted.
(3) If, after considering the objections, if any, that may be received under sub-section (2) and if, after holding such enquiry as it deems fit (which may include recording of evidence of witnesses and hearing of parties), the Industrial Court comes to the conclusion that the union applying complies with the conditions necessary for recognition specified in section 11 and that its membership was, during the whole of the period of six calendar months immediately preceding the calendar months, in which it made the application under this section, larger than the membership of the recognised union, then the Industrial Court shall, subject to the provisions of section 12 and this section, recognise the union applying in place of the recognised union, and issue a certificate of recognition in such form as may be prescribed.
(4) If the Industrial Court comes to the conclusion that any of the other unions has the largest membership of employees in the undertaking, and such other union has notified to the Industrial Court its claim to be registered as a recognised union for such undertaking, and if, such other union satisfies the conditions requisite for recognition under section 11 and complies with the conditions specified in section 19 of this Act, the Industrial Court shall grant such recognition to such other union, and issue a certificate of such recognition is such form as may be prescribed.
Explanation: For the purpose of this sub-section, the other union shall be deemed to have applied for recognition in the same calendar month as the applicant-union.
(5) Every application under this section shall be disposed of by the Industrial Court as far as possible, within three months, from the date of receipt of the application, where a group of concerns in any industry which is notified to be one undertaking for which recognition is applied for is situated in the same local area; and in any other case, within four months.
Explanation : “local area” for the purposes of this sub-section means the area which the State Government may, by notification in the Official Gazette, specify in such notification.
Section 15:
Application for Re-Recognition:
(1) Any union the recognition of which has been cancelled on the ground that it was recognised under a mistake or on the ground specified in clause (ii) section 13, may, at any time after three months from the date of such cancellation and on payment of such fees as may be prescribed apply again to the Industrial Court for recognition; and thereupon the provisions of sections 11 and 12 shall apply in respect of such application as they apply in relation to an application under section 11.
(2) A union, the recognition of which has been cancelled on any other ground, shall not, save with the permission of the industrial Court, be entitled to apply for rerecognition within a period of one year from the date of such cancellation.
Section 16:
Liability of Union or Members not Relieved by Cancellation:
Notwithstanding anything contained in any law for the time being in force, the cancellation of the recognition of a union shall not relieve the union or any member thereof from any penalty or liability incurred under this Act prior to such cancellation.
Section 17:
Publication of Order:
Every order passed under sections 12, 13, 14 or 15 shall be final, and shall be caused to be published by the Industrial Court in the prescribed manner.
Section 18:
Recognition of Union for More than One Undertaking:
Subject to the foregoing provisions of this Chapter, a union may be recognised for more than one undertaking.
Conclusion:
Related Topics:
- Concept of Trade Union
- Obligations and Rights of Recognized Trade Union Under Under MRTU & Pulp Act, 1971
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