Hi All, On what grounds can contract workers form a union? Regards, Raja
From India, Hyderabad
Dear Koti,
Contract workers can form a union, and this right is derived from the Trade Unions Act, 1926. They are not excluded from the definition of “workers” under the Act, making them eligible to create or join a trade union.
While the Contract Labour (Regulation and Abolition) Act, 1970 governs the working conditions of contract labor,
their right to form a union is protected under the Trade Unions Act, 1926. Contract labor is entitled to the same rights as any other workers when it comes to forming unions and protecting their interests.
As per the Trade Unions Act, 1926:
1. Right to Form a Union:
Under Section 2(h) of the Trade Unions Act, 1926, a "Trade Union" is defined as any combination of workers or employers whose primary purpose is regulating relations between workers and employers, or among workers themselves.
The definition of “workers” includes contract labor, as there is no exclusion of any category of workers. This means contract workers can form or join trade unions.
2. Eligibility to Form a Union:
Under Section 4 of the Act, any seven or more members of a trade union can apply for the registration of the union. Contract workers can meet this requirement and register their own union or join an existing one.
3. Protection of Rights:
Section 10 of the Trade Unions Act, 1926, provides that registered trade unions are bodies corporate, giving them legal status and the right to sue or be sued. This ensures that even contract workers who form a union can enjoy legal protection.
Once the trade union is registered, it has rights like collective bargaining, negotiating working conditions, wages, etc.

From India, Karimnagar
Very true, but a trade union is also an association of persons with common interests. Therefore, you cannot have contract workmen in the same trade union of regular workmen. A trade union of regular workmen cannot ask the employer to negotiate on the matters concerning the contract workers. But being workers, the contract labours can form separate union, and present their charter of demands to their employer, ie, the Contractor. The Contractor, in turn, can negotiate with the employer.
From India, Kannur
I think there are enough cases where contract unions have negotiated directly with the company.
The company has very little option if they are on strike and disrupting the business, and specially if they are supported by local political parties who ensure that the company can just replace striking contract workers.

Mostly the contract unions know the contractor is just a flimsy front and has no rights or decision making, so they will insist on going directly to the principal employer for negotiation.

From India, Mumbai
I have one question here.

Suppose "A" is the company and "B" is the contractor. A has awarded the contract to B for deployment of manpower. And the worker of the contractor has formed union. This came to the notice of Company and company has terminated the contract of Contractor.

Then will the workers still have the right to bargain with company?

From India, Hyderabad
That depends on circumstances
They can always raise an industrial dispute if they can show that management had control on workers and work process, or that the job was core function or perennial in nature. If they can prove it, they can force the company to actually absorb all the contract workers are direct and also pay restitution

From India, Mumbai
In principle the workers of the contractor has no lien on employment with the principal employer, ie, the company. Their contract of employment is with their employer, ie, the contractor. Therefore, as soon as the contract with a company is terminated, the contractor will have to address the issue of either deploying the workers (of the contractor) in other plants or to retrench them. In this process the Principal employer has no obligation. The workers of the contractor also do not have any right to raise an industrial dispute against the principal employer, though they can raise it against their employer, ie, the contractor for non employment etc.

BUT in practice, in such scenarios, the union will raise dispute against the principal employer only, knowingly that it is just illegal. But a strike being manifestation of the right of workmen will get support of the media and the public. They are not concerned with what is written n the law but for them those who work for the company are workers of the company only. And if it is established that the same workers of the contractor were being controlled and supervised by the supervisors of the company, the contract would become sham contract leading to make the strike to be legal one.

From India, Kannur
My doubt how can they shown that they are being supervised by the company. Any specific examples or case laws on this Please share
From India, Hyderabad
That is very easy
There will be enough documentation, mails, actions, etc.

Or they will just call other workers as witness in court.
Even your own managers and staff may find it unworthwhile to lie in court under oath.

The oral evidence given by workers is likely to be believed by the courts.
Circumstantial evidence will be there to support it.
eg. email by a manager to the worker or to the contractor allowing leave for a worker.

From India, Mumbai
Rajainakoti, is it the evidence that worries you or case studies that circumstances like this would make the contract sham?
From India, Kannur
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