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India: Comments Regarding the Industrial Relations Code - Letter from All India Trade Union Congress 01st June 2021

1 June 2021

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All India Trade Union Congress

01st June 2021

Mr. Sanjeev Nanda,
Under Secretary,
Ministry of Labour and Employment,
New Delhi,

Ref.: Union Ministry of Labour and Employment’s Notification G.S.R. 317(E) dated May 04, 2021.

Dear Sir,

We have seen the draft of the Industrial Relations (Central) Recognition of Negotiating Union or Negotiating Council and Adjudication of Disputes of Trade Unions Rules 2021, published by notification dated 4th May 2021, referred to above.

You are aware that overwhelming number of Central Trade Unions have repeatedly and publicly opposed the so-called four Labour Codes, including the IR Code, 2020. They even publicly tore up copies of the said Codes on 1st April, 2021. We have demanded that the much overdue Indian Labour Conference (which has not been convened after 2015) be convened and the issue/necessity of changing the present labour laws be discussed thoroughly.

 Without prejudice to our demand to scrap all the four labour codes, including the IR Code, 2020, passed by the government without following even the parliamentary procedure, we give our comments as follows :

1.      We say that it is unreasonable, unjust and unfair to ask for suggestions and objections on such rules at a time when Covid-19 is surging at such high levels in the country. Most trade union offices are required to be shut due to lockdown and the personnel and the documents are not within reach. As such, this consultation is a mere farce and a showpiece. We are sending our comments without prejudice to our contention that we are severely hampered and hamstrung in the making of this reply. We reserve our right to give a further and fuller comment as and when possible. We therefore request you not to finalise these rules until all concerned parties have had a real and proper opportunity to study these rules and offer their comments.

2.      We would like to know the intention behind proposing section-based rules. It may lead to disharmony and consequent hurdle in smooth running of the industrial establishments.

3.      No lesson seems to have been drawn from earlier initiatives w.r.t. recognition of trade unions, such as the nonenforced Trade Union (Amendment0 Act, 1946; the Industrial Relations Bill of 1958; Code of Discipline, 1959; and relevant laws enacted by various state legislatures.

4.      The rules are biased in favour of the employer. For effective industrial relations, the law and rules must be neutral at the very least, if not tilted towards the workers, who are the weaker party.

5.      The post COVID19 industrial establishments would be operational on conditionalities that conforms to so called ‘New Normal’ that entails social distancing, work from home, gig and platform workers, etc. This may entail having a fresh look at any rules framed in these extraordinary times.

6.      The government’s role is that of equaliser between the powers of employer and workmen as such its representative ought to have final words especially in matters relating to election recognition of trade unions as a negotiating / collective bargaining agent.

7.      The proposed rules also overlook provisions of ILO Conventions 87 and 98.

8.      The proposed rules leave out the unions in Unorganised Sector, where there may not be an “Establishment†defined in these rule, such as Agricultural Workers, Domestic Workers, Scheme Workers etc.

9.      The issue of recognition of trade union is a state subject as such it should form part of the state legislation.

Observation and Suggestions on Specific Rules:

Rule  specifying the Chapter, rule or sub-rule which is proposed to be modified  specifying the revised rule or sub-rule proposed to be substituted  reasons therefor; 
(b) “Negotiating Union†means a sole negotiating union referred to in sub-section (2) or sub-section (3) of section 14; 
(b.i) “Negotiating Council†means sole council of registered union referred to in sub-section (2) or sub-section (3) of section 14;  Provision for “Negotiating Council†has to be included 
(1) The matters pertaining to workers which the negotiating union or negotiating council shall negotiate with the employer of the industrial establishment under sub-section (1) of section 14 are specified, as below, namely :-(i) to (x)  (1) All matters pertaining to workers which the negotiating union or negotiating council shall negotiate with the employer of the industrial establishment under sub- section (1) of section 14.  There is no logic in limiting scope of negotiation or collective bargaining. The existing practice of including all matter of industrial dispute in the scope of negotiation be retained 
Where there is only one registered Trade Union operating in an industrial establishment having its members not less than thirty percent of the total workers employed in the industrial establishment, then, the employer of such industrial establishment shall recognize such Trade Union as sole negotiating union of the workers.  Where there is only one registered Trade Union operating in an industrial establishment having its members at least 20% from the industrial establishment, then, the employer of such industrial establishment shall recognize such Trade Union as sole negotiating union of the workers.  The Code of Discipline of 1957 agreed upon by representatives of the workers, employers and government had set 15% as the point for recognising a union. The present act also allows a union with 20% to be represented on the negotiating council. This means that if there is only one union with 20% membership in the establishment then such a union will have sole right to be on the negotiating council. It makes sense that any union with 20% membership, if it is the only union operating in the establishment, must be recognised as the negotiating union by the employer.
4.1  New provision  There should defined norm or criteria for the recognition of a single negotiating union  To check management’s practice of promoting and recognising a yellow union as a sole negotiating union 
(a) The employer of the industrial establishment shall appoint a verification officer (hereinafter in this rule, referred to as verification officer) for the purpose of verification of membership of the Trade Unions in the industrial establishment who shall be an independent officer and shall not have any interest with any of the Trade Union, whose

membership verification is to be carried out; 

(a) The Central Labour Commissioner (Central) shall appoint a verification officer (hereinafter in this rule, referred to as verification officer) for the purpose of verification of membership of the Trade Unions in the industrial establishment  By this, the Government is allowing managements to legally commit an unfair labour practice. We stand by the principle that the management must not interfere in any manner with the functioning of any trade union. 
(c) The verification officer shall carry out the work of membership verification in the industrial establishment in time bound manner as determined by the employer;  (c) The verification officer shall carry out the work of membership verification in the industrial establishment within 60 days of being appointed VO for the purpose.;  So that the election, if need be could be held before the expiry of the term of the presently working body. 
5.2  The employer of the industrial establishment shall bear all expenses and make arrangements in connection with the verification of membership of Trade Union under sub-rule (1).  Be deleted  Since the CLC is the appointing authority of VO who shall be a government official this section becomes irrelevant 
5.3  (a) The Trade Unions which satisfy the following conditions shall first submit an application to the employer of the industrial establishment to accord status of negotiating union of the workers, namely:- 
5.3  a.(ii) the membership of the Trade Union be confined to the industrial establishment only  The defined percentage of trade union’s membership is from the industrial establishment  A trade union can have membership from various industrial establishments of an industry. Besides, definition of a Worker includes contract workers, casual workers, temporaries, etc., who may not be on the muster rolls of the Establishment.
5.4  (b) The date of reckoning shall be fixed by the employer of the industrial establishment for the purpose of verification of membership of the Trade Unions;  (b) The date of reckoning shall be fixed by the CLC in consultation with the employer and recognised trade union of the industrial establishment for the purpose of verification of membership of the Trade Unions; 
5.4  (d) On receipt of the documents and records, the verification officer shall scrutinize the records or documents submitted by the Trade Union to ascertain the status of registration of Trade Union and related matters;  (d) On receipt of the documents and records, the verification officer shall scrutinize the records or documents submitted by the employer and Trade Union to ascertain the status of registration of Trade Union and related matters; 
5.4  f) The employer may, with the mutual agreement with the Trade Unions of the industrial establishment, deploy an electronic process of conducting the election process over an information technology application, online platform or like other platform.  May be deleted 
6.4  (4) The voter list shall be prepared by the employer of the industrial establishment on the basis of names of the workers borne on the muster roll referred to in sub-rule (3) and the voter list shall contain the name, father’s name, designation, Universal Account Number (UAN), if any, and place of posting of the worker. The final voter list shall be published by the employer after obtaining the approval of verification officer and shall be displayed at notice board at the main entrance and website, if any, of the industrial establishment. A copy of such voters list shall also be sent to the participating Trade Unions by hand or by registered post or by electronic mode. (4) The voter list shall be prepared by the Verification Officer on the basis of names of the workers borne on the muster roll referred to in sub- rule (3) and the voter list shall contain the name, father’s name, designation, Universal Account Number (UAN), if any, and place of posting of the worker. The final voter list shall be published by the verification officer after due authentication by the employer of the industrial establishment and the participating trade unions.and shall be displayed at notice board at the main entrance and website, if any, of the industrial establishment. A copy of such voters list shall also be sent to the participating Trade Unions by hand or by registered post or by electronic mode.
6.6  Additional provision  Any objection on the voter list and manner for holding election be filed before the Verification / Election Officer 
- In an industrial establishment, where there is a negotiating union or negotiating council, as the case may be, the employer of such industrial establishment shall provide the following facilities to the negotiating union or negotiating council, as the case may be, namely:- (i) notice board for the purpose of displaying the information relating to activities of negotiating union or negotiating council, as the case may be; (ii) venue and necessary facilities for holding discussions by the negotiating union or negotiating council, as the case may be, as per schedule and agenda to be settled between employer of the industrial establishment and the negotiating union or constituents of negotiating council, as the case may be; (iii) venue and necessary facilities for holding discussions amongst the members of the negotiating union or constituents of negotiating council, as the case may be; (iv) facility for entrance of the office bearers of the negotiating union or constituents of negotiating council, as the case may be, in the industrial establishment for the purposes of ascertaining the matters which are relating to working conditions of the workers; (v) employer to deduct subscription of the members of the Trade Unions on the basis of the written consent of the worker; (vi) treating on duty of the employed office bearers of the negotiating union or constituents of negotiating council, as the case may be, when the office bearers are holding meetings or discussing with the employer as per agreed schedule between employer and such office bearers; and (vii) employer of an industrial establishment, having three hundred or more workers, shall provide suitable office accommodation with necessary facilities to the negotiating union or negotiating council, as the case may be. - In an industrial establishment, where there is a negotiating union or negotiating council, as the case may be, the employer of such industrial establishment shall provide all the following facilities to the negotiating union or negotiating council to enable them to undertake defined roles, besides giving exemption from attending duty for any work connected with an industrial dispute, including but not restricted to attending court, attending the lawyers office, preparing documents, discussing with the workers, etc. besides holding talks with the management.  The present practice wherein employer provides all the facilities for effectively undertaking negotiating / collective bargaining roles be retained. The threshold of 300 workers be removed. 
10  The section be deleted in toto Alternatively the disputes regarding election results be also included  Since the matter therein does not related to recognition process. It is also out of the scope of these rules since the same are in relation to Section 14 of the Code. This can be covered by Section 24 of the Code 

All the above are only preliminary observations. As stated above, we reserve the right to make further and fuller comments as and when required, while reiterating our demand that an Indian Labour Conference be convened to discuss this subject threadbare.

Amarjeet Kaur General Secretary
AITUC Secretariat
AITUC BHAWAN, 35-36 DDU Marg, Rouse Avenue, New Delhi 110002 ]]