Navigating Union Splits: Can Management Deny Check-off Facility to New Unions?

Respected Seniors,

A company that employs more than 2,000 workmen has 10 registered unions, out of which only 7 unions have called for major discussions. These 7 unions have the check-off facility, i.e., they deduct their union subscriptions from the salaries of willing members who have given written authorization to the employer for the same. The other 3 unions do not have this facility. Among the 7 unions, one particular union split, and the split members formed another registered union. After a court's interim order, the management permitted major talks and entered into a wage revision settlement with this new union as well. Now, this new union is demanding the same check-off facility they had before the split from their current willing employees.

My Questions Are:

1) Can the management refuse the check-off facility for this union, stating that it may open the door for the other 3 unions or future unions to claim the same facility?

2) Could it be refused on the grounds that no final order was passed on their recognition by the management in court?

3) Is it obligatory for the management to deduct subscriptions for willing employees of every registered union since there is no law on the recognition of unions in my state?

4) Are there any case laws on this issue?

If you have no law relating to the subject matter of union recognition in your state, the management may opt for observing the Code of Discipline, 1953. As per this, the management can deduct union subscriptions from workmen's wages on request and pay it off to the recognized unions to which the workmen belong. This is called the "CHECK-OFF" system, and it is an indication of union recognition in practice. However, we should remember that the Code of Discipline has no statutory force. There is no right in law to claim that the recognized union alone should be given the check-off facility. In this connection, you can refer to the judgment of the Honorable High Court of Madras in State Bank Staff Union v. State Bank of India [(1989) I LLJ 554].

You have mentioned some interim orders of the Court which are not clear. Hence, in my opinion, the offshoot after the split of the union cannot stake a statutory claim for this facility.

Thank you very much for your relevant case law. Hats off to you, Sir. It settles squarely the issue on hand. Now it is my understanding from the judgment that the law does not discriminate between the registered and recognized unions for availing the check-off facility. Section 7(2)(kkk) of the Payment of Wages Act, 1936 also paves the way for deduction for subscription. The union can enjoy this facility only if the concerned employees seek the same voluntarily.

Regards.

Thank you very much for your relevant case law. Hats off to you, Sir. It settles squarely the issue on hand. Now, it is my understanding from the judgment that the law does not discriminate between registered and recognized unions for availing the check-off facility. Section 7(2)(kkk) of the Payment of Wages Act, 1936, also paves the way for deduction for subscription. The union can enjoy this facility only if the concerned employees seek the same voluntarily.

Regards,