Trade Union Offices on Plant Premises: What Are the Legal Guidelines?

Kindly guide me on this. Can a trade union have its office on the plant premises? Are there any laws or provisions governing this matter?

Thank you.

Trade Union Office Requirements

The Trade Union Act, I think, requires the factory to provide a place for the union to have its office.

Well, thanks for the reply. But, sir, is there any court case or judgment related to this fact, i.e., the opening of the trade union office on the plant premises? For example, some unions have opened their office, and the management has objected. The matter was referred to court.

Union Office Within a Factory Premises

Your query: Can a registered union have its union office within a factory?

Position: No. Factories must apply for and obtain a proper Certificate of Commencement of Business stating, among other facts, the nature of business to be carried out on its premises. Thereafter, for any addition, alteration, or demolition, the occupier of the factory or factory manager must compulsorily apply to the Factories Inspectorate before intending to do so, enclosing a lay plan. Consequently, no business other than the business for which the factory has a license can be carried out legally.

It appears quite common that the authorities overlook the law, hoping against hope that the violation or problem goes away if not set right.

Regards,
Kritarth Consulting Pvt Ltd
[Email Removed For Privacy Reasons]

Mr. Khola is right. No central labor law prescribes giving office space to trade unions. There are no court cases to support this claim. However, the Kerala Recognition of Trade Union Act grants recognized unions the right to hold discussions with their members at a suitable place on the premises with the employer's consent.

Regards,
Varghese Mathew
Labor Law/HR Adviser TVPM
[Phone Number Removed For Privacy Reasons]

I agree with Sh Khola that the Trade Union Act of 1926 does not have any provision that allows the office bearers of any trade union to open their office inside the premises of any unit. During my service, I have noticed that some public sector undertakings and defense establishments have a practice of allotting small accommodation within their premises to the recognized union with the concurrence of their Employing Ministries.

Regards,
BS Kalsi
Member since Aug 2011

Actually, every factory I have been to has an office allotted to the trade union, which is why I am sure it must be under a legal obligation. I will check and see if there is a provision in any other act.

Union Independence and Space Allocation

A union is a separate body and should function independently. There is no provision under the Trade Union Act of 1926 to provide space in the factory premises or outside for their functioning. The union has no right to demand it either. However, if any space is provided with mutual understanding, it must be in writing with a clause that allows withdrawal if misutilized.

Management can also rent out such premises if they wish to do so.

Thanks,

Regards,
Mritunjay Nath Sahu
GM (HR)

Generally, we see many public sector undertakings and Central Government establishments provide space for union functioning within their office premises. This is as per practice; however, we do not find any provision in the Trade Union Act. It all depends on the organization and its relations with the trade union and vice-versa.

Regards,
B. Dakshina Murty

I have not come across any provision in the Trade Unions Act entitling a union to an office in an employer's premises. This is probably due to the fact that it is the employer's property, and his permission is necessary for anyone to start any activity that is not connected with the employer's business. However, some State Acts like MRTU & PULP Act (Maharashtra) entitle a recognized trade union to have a notice board on the premises of the employer.

Regards,
B. Saikumar

There is no provision under any law that forces employers to provide space for trade unions. However, some states have rules that require employers to provide space for notice boards and temporary space for unions to interact with members, sometimes for activities like gate meetings.

Some companies, through internal agreements with unions, have provided space, such as Tata Steel. This practice can be detrimental to the company's environment as unions tend to become stronger once they are allocated space within the factory premises. Companies must avoid this at all costs.

An alternative approach is to arrange temporary meeting spaces within the premises or in a hotel to maintain a healthy environment.

Many learned followers have expressed their views. I appreciate their effort and would like to add mine as well.

Union's Identity and Legal Standing

As per the TU Act, the Union has its own identity and is a company for all practical purposes. It has its own registered office (either owned or rented), a team of office bearers who run the affairs of the TU, a code of conduct, books of accounts, etc., just like any other company registered under the Companies Act.

From the above, I feel that I have made myself clear that the Union cannot—I repeat, cannot—demand as a matter of right to be allowed to open its office on the factory premises. However, since they are one of the important agents in the process of production, productivity, and profitability of any organization, it is in the interest of the management to provide the recognized Trade Union space for running its office at a suitable place, but never within the premises of the factory or production place. The management must charge a token rent (however small it might be, even like Re.1/-), to establish their ownership over the premises provided to the TU.

Best wishes.

Regards,
AK Jain
HR Personnel
NCL, CIL

You are correct to state that a number of Defense Establishments have permitted unions to operate from offices provided to them within the establishment. If you are the same Mr. Kalsi who was posted at Bharatpur, then you will remember that it was permitted there. I ascribe this to a lack of awareness, and as these offices have been functional for decades, no one has taken action to ask the unions to vacate them. These offices are not reflected as union offices in any official documents. This practice is incorrect and not in line with the law and should not be encouraged.

Regards,
Suresh Rathi

You are one hundred percent right, I am the same Mr. Kalsi who served at Ammunition Depot, Bharatpur at the start of my career from 1980 to 1985. I am sorry I have not been able to place how you know me. Please shed some light on this aspect.

Regarding your mail, I agree with you that allotting office space to the union is not a good precedent. Unions continue to use the premises for years even if the recognition is reversed in favor of another union.

Regards,
BS Kalsi

Dear Col. SK Rathi and Mr. Kalsi, you are very correct that in some organizations or establishments, unions are allowed to operate their Union Office from within the establishment premises. But sirs, a privilege cannot be a matter of right. So when it comes to rules and regulations, no management can or rather should allot an office for Union activities. Hope you will agree to this. If not, kindly let me know your opinion to enhance my practical knowledge too.

Regards,
AK Jain
HR Personnel
NCL, CIL

There is no doubt that the rule position is very clear on this subject. What has been stated is the factual position. A number of Central Government organizations have permitted this with or without being aware of the rule position.

Regards,
Col. Suresh Rathi

Actually, most large companies provide a small room to the union for their activities and use as their office. It is a general practice. Originally, I thought it was allowed under the rules, which I understand from the posts here was incorrect. However, I believe it is a good idea to allow a place for union activity. Trying to stop union activity is not a good idea. A healthy union relationship makes life easier for everyone in the long run.

Another advantage of giving the union an office is that management can keep an eye on the union and ensure that outside elements do not get involved. Furthermore, I believe it is a rule that union office bearers must be given time off for union activity. I think having the office inside the factory ensures less time is spent traveling to an external office.

Role of Office Bearers in Trade Unions

Before becoming office bearers, like others, a concerned workman too was a normal operator who used to contribute to production activities on the shop floor.

Upon becoming President, Secretary, or any other office bearer, he did not perform his aforementioned duties for which he is paid and refrained from production. Does the Trade Union (TU) or Industrial Disputes (ID) Act permit them to do so?

Management's Rights and Disciplinary Actions

Does management have the right to compel them to engage in their core activities and take disciplinary action against them if they fail to perform their duties?

Seniors, please guide.