Navigating Trade Union Recognition for a Branch Factory in a Different State: Seeking Guidance

Hello Seniors, I am working in an organization based in Bangalore, which falls under the central PSU (so the appropriate government is the central government), and we have a branch factory in Cochin. We have about 100 people working here in the branch factory, and we have registered a trade union under ITA, covering more than 80% of the memberships.

When it comes to our factory, all the administration is handled by the Bangalore management. There is a recognized union and several other unions as well. Now, I have a few questions:

a) Do we have the right to ask for recognition in our local area? If yes, how can we communicate with the management, considering the entire administration is based in Bangalore?

b) Do we have the authority to request the "Protected Workmen" panel?

c) The government of Kerala already has rules for recognizing a union; will these rules apply to our union?

d) Can anyone provide a sample letter format that we can use to seek recognition?

Looking forward to responses from the experts. Thanks in advance.

Dear Sree,

Your question pertains to an industry in the public sector with units situated in more than one state. As such, the central government would be the appropriate authority for the purpose of central legislations like the ID Act, 1947, and the CLRA Act, 1970. The existing recognized union might have been registered with the central government since, in the case of trade unions, if their objectives are not confined to one state, the central government is the appropriate authority.

Recognition of Trade Unions in Central PSUs

Regarding the recognition of trade unions in central PSUs spread across many states, there are certain guidelines, but unfortunately, I am not familiar with them. Therefore, Mr. KK!HR, a learned member of this forum, would be the right person to answer your questions since I believe he hails from a central PSU. Recognition of a trade union by the management is not an essential criterion for claiming the status of protected workmen for its members as long as it is a registered trade union.

Central Government Jurisdiction in Trade Union Matters

You are right that the 'Appropriate Government' is the Central Government, so the Kerala State Government rules and regulations are not of much help. From my experience in a central PSU of Maharatna fame, the position on the issues is given below:

1. The factory at Kochi with approximately 100 employees is an industry under the ID Act 1947 and has a separate identity under the Act. In your industry, there would be two levels of issues: one affecting the whole company and the other being local issues. Since you have more than 80% strength, you have the right to represent them, both at the central level and for local matters. As a start, you can give notice to the administrative head of the Kochi Unit seeking a formal meeting regarding local issues with a copy to Bangalore headquarters to involve you also in all employee matters.

2. As the ID Act applies to your unit, the provisions of the Act, like protected workmen, also follow suit.

3. As the appropriate government is the Central Government, the Kerala Rules will not apply. The Kerala Act specifies that it is not applicable to industrial undertakings for which the appropriate government is the Central Government. I endorse the learned views of Shri Umakanthan Sir.

4. I propose a simple letter as the maiden step.

Sample Letter for Trade Union Recognition

Sir,
It gives us great happiness to inform you that ............ Trade Union has been registered with respect to the Kochi Unit of the company. A list of the office bearers and a copy of the Registration Certificate is attached.
It is humbly requested that we may be given time for an introductory meeting at your convenience.
Thanking you,
Yours .....
(Secretary)
CC: Head of HR: Sir, we are the legal representatives of the employees of the Kochi Unit, claiming membership of .... It is requested that in all employee-related matters, we shall be allowed to represent the employees of Kochi.

Thank you very much for your valuable reply, Sir. As we discussed these matters with the local management, they are trying to link the scenario with the Bangalore Unit. They said that our unit is only a branch of the Bangalore unit, and we are only eligible for 1% of the total manpower available to the whole (Bangalore + Cochin). Therefore, we couldn't reach the minimum number of protected workmen (as per the ID act, the minimum is 5). Additionally, they are trying to convince us that all the administration is being done from the Bangalore office.

Official Documents and Local Operations

However, according to the official documents:
1. The factory is registered in Cochin.
2. All the taxes and other CSR activities are carried out locally.
3. Professional tax is paid to the LSGD.
4. The factory falls under the Regional Labour Commissioner(C) Cochin.
5. All the employees are permanently posted for the Cochin factory (not on outstation duty or deputation).

So, are their statements valid?

Additional Doubts

I have a few more doubts:
1. Can a union registered in another state provide memberships to individuals working in a different state?
2. Given that both units fall under different states and different Labor Commissioners, how can a union registered in one state represent workers in a different state?
3. How can employees be represented on the Committee of Management and/or in joint bargaining councils?

Thanks in advance 

Union Membership Across States

1. A union registered in one state can have members in other states as well. For example, if a union is registered in West Bengal, its members could be from any other part of India. There is no registration of a central trade union cutting across states.

Recognition of Local Union Units

2. A local unit of the union registered elsewhere can seek recognition in the additional state where they operate. Bank Employees' unions/LIC unions are registered in one state, but they have branches in other states and represent workers in those states.

Representation Rights of Kochi Unit

3. Your union is limited to the Kochi unit, so it can claim the exclusive right to represent and engage with local management. Regarding the right of representation of Kochi employees before Bangalore management, you should seek recognition in proportion to the strength of the union.