Can Unaffiliated Unions Challenge Our Wage Agreement on Contract Labor Issues?

Dear Seniors, I work in a PSU iron mine. Every 5-10 years, our higher management signs a wage revision agreement with all central trade unions operating in our organization. The unions are represented by their top all-India leaders. Besides the wage matters, there are also some clauses regarding the safety and welfare matters of employees in the agreement.

In one of the clauses of the agreement, it is written, "Industry shall not employ labor through contractors or engage contractors' laborers on jobs of a permanent and perennial nature."

Now, a union that has no members in our organization, is not registered, recognized, and not affiliated with any central trade unions, has raised an issue over the violation of the above-mentioned clause regarding contract labor.

My question is, can any person/union raise a dispute over the violation of an agreement of which they are not a signatory?

Thank you.

Union Participation in Conciliation and Settlement Disputes

It is understandable that a union not recognized by the employer (and not even registered as a trade union) cannot participate in conciliation regarding wages or service conditions. However, how can we assert that a worker, on whom the settlement is binding, cannot question an action of management that is contrary to the settlement?

Your settlement should be a 12(3) settlement, I presume. In such a case, it will be binding on all the workers/employees, including those who did not sign the agreement. If so, why can't a member of a union, which is not a party to the settlement, or even an employee who is not a member of any union, raise an industrial dispute over an issue of violation of settlement terms? I believe there is nothing wrong with this. Moreover, the union is not challenging the settlement but is raising an industrial dispute over the issue of violation of one of the clauses of the settlement and is trying to prevent the management’s intention of engaging contract labor in jobs of a perennial nature. If the unions who signed this agreement are not voicing it, why can't others? I feel that this dispute will be maintainable mainly because a tripartite settlement arrived at as per section 12(3) of the ID Act will be applicable to all employees, and it is everybody's responsibility to follow the terms of the settlement once it is enforced.

Regards,
Madhu.T.K

Thank you very much, sir, for your time and views. However, I would like to explain a bit more. The agreement is a bipartite agreement. No Labor Department was involved during its signing. It would be helpful for me if you could provide your views based on the fact that it is a bipartite agreement.

Thank you, Sir, for your valuable input and time. However, I would like to clarify some points. The agreement is a bipartite agreement. There is no involvement of the Labor Department in its signing.

Kindly provide your view based on the fact that the agreement is not a tripartite one.

Such an alien, unrecognized union cannot espouse an industrial dispute pertaining to the bipartite settlement arrived at, neither under section 2(k) of the ID Act nor does it have locus standi to pursue the cause.

Thanks,
Sushil

Continuation of Previous Discussion

This is in continuation of my earlier messages in this thread. The Conciliation Officer has filed a Report of Conciliation based on our stand that this Union had no locus standi to raise the issue as it was a bi-partite agreement. However, the Union has gone to the High Court, and the Court has directed Labour Authorities to look into it. Now, the Central Labour Authorities have accepted the Union's grievance.

Now, I seek advice on the following:

- **Should we continue our stand that it is a bi-partite agreement and the said Union has no locus standi?** It may also be noted that the bylaws of this Union do not cover our establishment.

- **If it is found that we have violated the terms and conditions of this bi-partite agreement, what can be the consequences?**

Regards

I think you should consult an advocate soon for recourse in this matter. You may face industrial unrest and a union strike for such violations. Management may be forced to regularize the contract workers.

Sir,

Thank you for your response. Our establishment was recently inspected by LEO(C) based on a complaint filed by the Union with Labour Authorities. He has verbally assured that the Labour Department will not look into the complaint on violation of the bi-partite agreement, if any. It's purely a matter of dispute between the signatories.