Madhu.T.K
Industrial Relations And Labour Laws

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Dear All
Recently we have finalized the agreement with Union ( 1st time ) in our company. We have 160 workers and out of that 120 are union members and rest of are not with Union.
Now after signing the agreement Union is asking company that company should deduct the negotiated amount from the non members workers and should be credited to Union fund.
I dont know what is to be done.? kindly suggest.
Raj

From India
Your query is not properly put in, I think. Let me put it in another way that the company has made a settlement (wage settlement) with trade union and in which non union members are not parties. Now the trade union members want that any hike given to the non members be taken out and the same may be given to Union! Is it so?

If so, first thing to be noted is that Union can not ask the management to take some benefits that others are getting from them and distribute it among the trade union members.

Now if the settlement is the outcome of any conciliation with Labour Department official, labour Officer/ Commissioner, then it will be a 12(3) settlement and a 12(3) settlement will be binding on all including those who are not directly connected with the settlement, ie, the Union. But at the same time if it is a bi partie settlement (with management and trade union without any third party's effort) then it will be binding on the parties only, ie, the trade union members. In the latter case, if the management has extended the benefits of the settlement to others also, the Union cannot challenge the decision of the management. They can raise a dispute if the management has not considered any of the terms of settlement and they have no right to question the management's decision of extending a facility to others who are not members of the union.

Madhu.T.K

From India, Kannur
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