Hello,
In this context, let me first explain the most important terms.
Each Trade Union has to be REGISTERED under the Trade Unions Act of 1927; otherwise, 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 a law that provides for recognition called The Maharashtra Recognition 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 the "Sole Bargaining Representative" by the government.
The first is a statutory recognition 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 the representative (and therefore recognized) Union. But this situation is slippery as it is vulnerable to change depending on the wishes and desires of the workmen.
The legal implications of dealing with a particular Union and its impact on your workmen are a vast subject.
In our country, there exists a multiplicity of Trade Unions, 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 RECOGNIZED Trade Union as this is a statutory recognition granted by the government after verification of many details. To my mind, Maharashtra is the only state that has this statute.
For the time being, this explanation should suffice.
Regards,
Samvedan
January 12, 2011