In this context let me first explain thre most important terms.
Each Trade Union has to be REGISTERED under the Trade Unions Act 1927, else its existence has NO legal validity or sanction.
Each REGISTERED Trade Union may or may not be a RECOGNIZED trade Union, because:
1) RECOGNITION may be obtained under LAW (In Maharashtra there is law that provides for recognition called (The Maharashtra Recobnition of Trade Unions and Prevention of Unfair Labour Practices Act 1970 (!)
2) RECOGNITION may exist when the Employer agrees to deal with a Trade Union as "Sole Bargaining Representative" by the government.
The first is a statutory rrecognition granting the status of a Sole bargaining Agent, and the other is a de facto recognition granted by the employer
Since it is a tricky question to decide "who" to deal with as genuine representatives of your workmen, if a majority of your workmen belong to a particular Union, that Union will demand to be dealt with as representative (and therefore recognitised) Union. But this situation is slippery as it is vulnerable to change depending uponthe wishes and desires of the wokmen.
Legal implications of dealing with a particular Union and its impact on your workmen is a vast subject.
In our country there exists a multiplicity of Trade Union and these are constantly in "competition" with each other to represent workmen of as many organizations as possible because conducting a Trade Union is a "profitable" business for many, if not all, so called Trade Unions.
It is safer to deal with a RECOGNISED Trade Union as this is a statutory recognition granted by the government after verification of many details. To my mind maharashtra is the onlt state which has this statute.
For the time being this explanation should suffice.
January 12, 2011
Thanks, for the answer , but would also like to know what kind of legal powers can be or are enjoyed by a recognised union?
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