Calcutta High Court's Ruling on Housing Estate Unions: What Does It Mean for Workers?

Calcutta High Court Decision: Bar on Housing Estate Union

The Calcutta High Court has made a significant decision with wide ramifications from the trade union perspective. The court held that employees, mainly security guards, of a housing complex are not eligible to form a trade union. They are not covered by the West Bengal Shops and Establishments Act, which is a prerequisite for forming a trade union. Although a housing complex is considered an establishment, it is not profit-making and falls under the purview of the Societies Registration Act.

This decision was published in the Daily "The Telegraph, Metro" on Wednesday, 20th January 2016. It is a single bench decision of the Calcutta High Court. Comments from experts and professionals are requested as this ruling has far-reaching consequences across the state of West Bengal.

Regards

At the top of the post, it should be "Read Calcutta High Court" and not "Calcutta High Courts."

Thank you!

The decision of the Calcutta High Court is most unfortunate—it amounts to disenfranchising a section of the citizens and depriving them of their fundamental rights.

It is a matter of common knowledge that the security guards are ill-paid and most exploited.

While fully agreeing with the humanitarian angle emphasized by Mr. Nathrao, I would like to point out that Calcutta Police personnel have an 'association' of its members. Giving them the right to form a union can lead to the next logical step of going on strike for their demands. This would jeopardize law and order. Similarly, security guards going on strike can make banks/ATMs/shops and establishments, as well as housing societies, vulnerable to criminals. Hence, in its wisdom, the Hon. Court disallowed that.

The Impact of Strikes Without Unions

Even without unions, workers have gone on strike. For instance, the CRPF went on strike in the 70s or 80s. When employees do not receive fair treatment, strikes or reactions are expected. Employers need to keep a humanitarian angle in mind when dealing with employees. Discipline is good and badly needed in our nation.

Exploitation in Housing Societies and Security Agencies

We prevent workers from forming unions but do not stop housing societies from exploiting them. Security agencies also exploit them. In Pune, I know guards who work double shifts almost every day and only receive Rs 5000-6000, even though the agency charges Rs 8000 from the housing society. So, the decision has a double effect.

Impact of High Court Decision on Union Formation Rights

Forming associations or unions is one of the fundamental rights of citizens of India under Article 19(1)(c) of the Indian Constitution. What is the impact of the High Court decision on this right of Indian employees/workmen? Are they barred from forming unions in non-profit establishments or NGOs not registered under sectoral relevant industrial/establishment laws? Or is this issue to be decided in a higher judicial forum above the single bench under the constitutional laws to protect the fundamental rights?

Opinions are solicited on the course of deciding the issue.

Only after a careful perusal of the entire judgment cited in the thread can we offer our remarks. It is not clear whether the judgment was delivered in respect of any appeal under the Trade Unions Act, 1926, or if the quote was an obiter dicta in the disposal of any writ pertaining to an individual case of non-employment of a security guard employed in a Housing Complex. Therefore, I would request the Poster to upload it.

Ensuring Rights for Security Guards

Whatever the decision, if unions for private security guards are barred, then the law must ensure that the bona fide rights of security guards are also upheld and enforced.

If the work of guards is so important that they cannot be permitted to go on strike, then society and government have a moral and legal duty to suo moto ensure that their rights are not trifled with.

I know of housing societies that hire guards but do not provide even a toilet for them and, sadly enough, expect them to despoil the nearby open space or public roads.

Regards

Exploitation Across Industries

Why only security guards? There is exploitation everywhere in all sectors. Take, for example, the IT industry, where we proudly claim to be a world power. Employees are made to work at least 10-12 hours, and that too without overtime wages. When some left parties in Bengal tried to organize the IT labor force, they were denounced as spoiling the 'investment climate'.

So, like in the USA, the federal government should make it compulsory for all organizations to pay compensation to employees retained over and above normal working hours. Although it may increase costs to companies and squeeze their bottom line, it should be treated as a necessity.

Yes, further constructive suggestion requires that the judgment needs to be perused. Please upload it.

Efforts are underway to obtain the full text of the judgment, which will be uploaded for the information of all those interested. It holds academic value and is relevant to management-union relations, a dynamic that is gradually giving way to relations between individual employees and management, particularly evident in the IT sector.

Calcutta High Court Judgment on Housing Cooperatives

I will upload the full text of the High Court judgment the moment I can access it. What I have uploaded is the gist of the judgment as it appeared in The Telegraph Metro on Wednesday, 20th January 2016. Honorable Justice Ashok Kumar Dasadhikar of the Calcutta High Court ruled, "Employees of housing cooperatives are rendering personal services and are not employees of a commercial establishment. They are not covered under the Shops and Establishments Act and therefore do not have the right to form trade unions."

Regards