Ours is a limited company registered under the companies Act. There are 2 Registered Trade Unions are exist/working in company. Out of which the recognized union is working since last 40 years. However, the majority of workmen are supporting to non recognized union. Considering the fact, to maintain industrial peace the management is use to bargain/negotiate/ talk with both unions and the last 2 settlement were arrived amicably by signing jointly.
The current settlement is due in the year 2016 and both union has submitted their Charter of Demands but due to heavy accumulation losses the management is not in position to take additional financial burden by way of new settlement and the same is due. As per the practice the each settlement period is of 3 years and the current settlement period is going to end on Dec 2018.
Meantime, since there was no amicable settlement arrived, the recognized union had filed their charter of demands before the Asst. Labour Commissioner for conciliation, which was not settled/ resolved hence the Authority has send failure report and referred the matter to Industrial Court which is pending/under litigation.
Now the Non- recognized union having majority workmen support is approached management and accepted the proposal/rise offered by the company. Accordingly we are in process to prepare settlement under Section 2 (P) read with Section 18 (1) of the Industrial Dispute Act 1947 along with the provisions thereto and Rules 62 of the Industrial Disputes (Bombay) Rules framed there under. However, the recognized union is not accepted the proposal/rise offered by the management hence the recognized union may not likely to sign the settlement. As the majority of workmen are ready to accept the proposed rise the management come forward for new wage settlement.
To make the settlement legal & valid under the provisions of the ID Act the management has put clause (workmen as Party to the settlement) stating that,- AND "The workmen who have accepted the settlement by tendering an undertaking accepting terms of the settlement as in an Annexure A to the settlement."
Since the settlement is not signed by the Recognized union and the Reference is pending before Industrial Court, Under the circumstances if the settlement is arrived between the management and Non recognized union with individual workmen signed undertaking as acceptance, will it be legal and valid under the provisions of Industrial Act.
Kindly give opinion & suggest the alternative remedies to resolve the issue.