The labour Code on Industrial Relations Bill proposed by the Union Ministry of labour has included three core areas of industrial relation that includes laws relating to registration of trade union, conditions of employment, investigation and settlement of disputes and other related matters.
The new code will replace three major Acts, such as the Trade Union Act 1926, the Industrial Employment (standing order) Act 1946, and the Industrial Dispute Act 1947. Since its inception in 2015, the proposed labour code has been opposed by all trade unions which triggered a debate over industrial relation laws of the country. Though there have been demands and recommendations for change in the scope of trade unionism in both organised and unorganised sector, but the proposed amendment has been not acceptable on many grounds, especially in the context of trade union rights.
The new labour code has changed many of the existing important provisions relating to trade union registration, its rules, office bearers and adjudication of trade union disputes. The requirement for registration has been changed in the new code (Section 5) and it is proposed that for registration of trade union, minimum 10 per cent of the workers employed or 100 workers are required for making an application for registration. Where 10 per cent of the workers of an establishment or undertaking or an industry is less than seven workers, a minimum seven workers shall be required to make an application for registration. In case of union or association of workers of unorganized sector in the absence of clarity over employer-employee relationship, the 10 per cent criterion is not applicable and in case of trade union of employers not less than seven, employers shall be required for making an application for registration.
The Section 7 of the code says the State Government by notification can appoint a person to be Registrar of trade unions and other person as Additional Registrar of trade union, Joint Registrar and Deputy Registrar of trade unions. The Registrar has power to call for further information or alternation of name. The trade unions shall not get registration under the code if it does not constitute its executive body as per the provisions of the code. The registration of the trade union may be cancelled by the Registrar if the union has obtained the registration by misrepresentation or fraud or mistake and failed to maintain the accounts, submit the annual returns and not conducted elections in the prescribed manner and within prescribed period. There is provision of appeal against non-registration and cancellation of registration, if the Registrar has not acted within sixty days, before the industrial tribunal whose decision shall be final.
The code imposes restriction on the spending of the general funds of the trade union and makes provision of a separate funds of trade unions for political purpose for promotion of civic and political interest of the members of the union, but no member shall be compelled to contribute to this fund and the status of non -contribution shall not affect the benefits of a member of the union. The account books of a registered trade union and the list of members shall be open to inspection by an office bearer or member of the union.
A person shall be disqualified for being chosen as a member of the executive or any other office bearer of a registered trade union if he has been convicted by a court in India or any offence involving moral turpitude and sentenced to imprisonment unless a period of five years has passed since his release after undergoing such imprisonment.
The code says a person cannot be an office bearer in more than ten trade unions. The office bearer of the union will be elected for two years. The proportion of office bearers who are not engaged in the establishment or industry shall be not more than two in the trade union in an unorganised sector. The member of Council of Ministers or a person holding an office of profit in the Centre or a State shall not be the executive or other office bearer of a trade union. The industrial tribunal having jurisdiction over the area where the trade union is located will adjudicate the disputes of trade unions.
While considering the labour code from the point of view of the restrictions over trade union registration and its functioning to its activities for bargaining where worker and trade union of workers and political activities are restricted under schedule of unfair labour practices, it can be stated that the new code has restricted the basic rights of trade unions to operate easily in the interest of the labourers.
It is fact that the workers need the support of outsiders as expert adviser for collective bargaining and advocacy support for their cause but this labour code with drastic reduction of earlier permitted number for formation of union and leadership has limited the autonomy of trade union and is going to seriously affect the collective bargaining power of the workers which is presently one of the most important instruments in the hands of the workers to ensure their genuine rights under the provisions of the labour laws. The provisions of minimum wage and social security and all other benefits of workers only can be ensured through organised efforts of trade unions. The organised efforts of trade unions has been promoting political education among workers while protecting rights and providing safeguard from economic exploitation along with strengthening democratic process among the poor and marginalised sections who constitute a major segment of the unorganised sector workers. Constitutionally, it is understood that a trade union is a basic human right of a worker. The Constitution of India and International labour Organisation have ensured this through enactment of conventions and laws. India as a founder member of IlO till date has ratified major conventions including four core conventions. The Constitution of India speaks about right to form association, free speech and democratic protest as fundamental rights assured to every citizens of the country. Right to trade union is essential for implementation of rights of the workers for wage and social security and other rights through collective bargaining and protest against injustice and exploitation. So it is argued that any progressive labour reform should ensure adequate space for democratic association of workers and protect their genuine interest in order to boost production and healthy work environment and dignified quality life of the workers. But major Central trade unions opine that there has been an attempt to pursue the practice of hire and fire and unfair labour practices, privatization of public sector, by the pressure of domestic capitalists and multinational corporate houses.
During the British rule in India, the Trade Union Act was enacted for regulation and monitoring of trade unions but later in 1943 Dr BR Ambedkar, the then labour Minister, made provision of compulsory approval of Government for recognition of trade union and that amendment also compelled the employer to recognize.
Dr Ambedkar was labour portfolio member in Viceroy’s Executive Council during 1942-46. He had argued for the promotion of uniformity in labour legislation and reasonable procedure for settlement of industrial disputes.
The Government of India must follow Constitutional mandate and international standards relating to labour laws and the Central trade unions must be taken into confidence by incorporating their recommendations to make the labour code more workers-friendly.
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