Brief Description of Employees’ and Employers’ Associations
The IR Code has provisions relating to employer and employee associations at an industrial establishment.
Trade Unions
The IR Code defines a trade union as ‘any combination, whether temporary or permanent, formed primarily for 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’.
Further, at least 10% of the workers or 100 workers engaged in an establishment (whichever is lesser, subject however to a minimum of 7) must be members of the trade union at the time of making an application for registration. The registration of a trade union under the IR Code must be distinguished from the process of ‘recognition’ of a trade union. Recognition is the process through which an employer agrees to negotiate with representatives of a trade union on aspects such as working conditions, wages, etc. on behalf of a particular group of workers. Refusal by an employer to collectively bargain in good faith with a recognised trade union (and vice versa) qualifies as an ‘unfair labour practice’ as defined under the IR Code, attracting consequences that include imprisonment and/or monetary penalties.
Key Associations under the IR Code
In terms of the IR Code, establishments with 100 or more workers have to constitute a ‘works committee’. The works committee should promote measures for maintaining good relations between the employer and workers and, to this end, can comment upon matters of common interest or concern and compose any material differences of opinion that arise between employers and workers.
Establishments with 20 or more workers have to set up a grievance redressal committee to address individual employee grievances in line with the representational norms set out under the IR Code.
The setting up of the grievance redressal committee will not affect the right of workers to raise industrial disputes under the IR Code. Any worker who is aggrieved by the decision of this committee can file an application for conciliation of such grievance to a conciliation officer to be appointed under the IR Code.
Rights and Importance of Trade Unions
The Constitution of India guarantees the fundamental right of all citizens to form associations or unions, including the right to form or join trade unions. Some of the rights of registered trade unions are as follows:
a. immunity is granted to office bearers and members from proceedings relating to criminal conspiracy, in instances where the trade union has been engaged in furthering its objects unless the agreement is an agreement to commit an offence.
b. trade unions can maintain a separate fund for political purposes from which payments may be made for the promotion of civic and political interests of its members.
c. trade unions can amalgamate with other trade unions in the manner prescribed.
d. agreements between members of a registered trade union shall not be void or voidable merely on account of the fact that any of its objects are in restraint of trade.
e. no suit or other legal proceeding can be maintained in any civil court against any registered trade union or any office-bearer or member in respect of any act done in contemplation of a trade dispute to which a member is a party, on the ground that such act induces some other person to break a contract of employment, or that it interferes with the trade, business or employment of some other person or interferes with the right of some other person to dispose of their capital or labour as they will it.
Trade unions have immense significance both for the wellbeing of the industrial establishment and for the society at large. Trade unions play a major role in negotiating better work conditions for employees, settlement of existing disputes and in reducing instances of industrial disputes, thereby maintaining an amicable relationship between the employer and the workforce. They can also assist in the recruitment and selection of workers and help them adjust better to the organisational structure and hierarchy.
Types of Representation
Number of Representatives
The rules pertaining to each of the associations listed above, have detailed provisions regarding their roles and responsibilities as well as the appointment of members. For instance, in case of a grievance redressal committee, the IR Code prescribes that it shall have an equal number of both employer and employee representatives and its strength shall not exceed 10 members.
Appointment of Representatives
In relation to a works committee, the employer representatives shall be nominated by the employer and shall, as far as possible, be officials who are in direct touch with the working of the establishment. Employee representatives must be chosen by way of voting in the manner prescribed. In case the establishment has registered trade unions, worker representatives should be chosen in a manner to be prescribed.
The chairperson of the Grievance Redressal Committee shall be selected from among the employer representatives and from the worker representatives alternatively, on rotation basis every year. Employers are required to ensure adequate representation of women workers on the committee which cannot be less than the proportion of women workers to the total workers employed in an industrial establishment.
Tasks and Obligations of Representatives
Though trade unions, works committees and grievance redressal committees are all envisaged to ensure greater participation of workers in the running of an establishment, there are subtle differences in relation to each of their terms of reference. Trade Unions are the principal collective bargaining agents and can enter into settlement agreements with employers. A works committee on the other hand, aims at pre-empting industrial disputes, smoothening working relationships and addressing any differences by way of direct negotiations between employer and worker’s representatives. A works committee functions as a recommendatory body that addresses, at the first instance, problems arising in the day-to-day functioning of the industrial establishment. A grievance redressal committee looks into individual employee grievances—unlike the other 2 entities which are concerned with employer-employee relations as a whole.
Employees’ Representation in Management
The nature and extent of employees’ representation eventually depends on the kind of establishment in question and the number of employees engaged at such establishment. It may be noted that the works and grievance redressal committees are only required where the requisite employee threshold is satisfied, as described above. Also, trade unionisation in India is entrenched primarily in the traditional manufacturing sectors, though the IT sector has recently seen some unionisation as well. In addition, certain other committees may also be required depending on the nature of the industry and any State-specific requirements.
Other Types of Employee Representative Bodies
As per the OSH Code, every factory wherein 500 workers or more are engaged or factories carrying on a hazardous process wherein 250 workers are engaged, establishments engaged in building or construction work employing 250 or more workers, and mines with 100 or more workers are required to appoint safety officers. Further, concerned Central or State Government may require certain classes of establishments to constitute a safety committee consisting of an equal number of representatives of workers and the management to promote co-operation in maintaining proper safety and health at work, and to periodically review the specific measures taken in this regard.
