Union Fund Deductions: Should Non-Union Employees Contribute After Wage Settlement?

Settlement with the Union on COA

We have recently arrived at a settlement with the Union on their COA. Similar benefits have been extended to the non-union employees as well.

Union's Demand for Wage Increment Contribution

The Union is insisting that a certain portion of the wage increment must be paid to the union fund from both the union employees and the non-union members. Remitting the wage increment of the Union employees to the Union fund is understandable, but should a similar payment be made by non-union employees as well?

Reference to Supreme Court Decision

The Union has quoted the Hon'ble Supreme Court decision in the Blemeri workman case reported in the 1985 LLJ in support of their demand. I request the IR experts and knowledgeable HR professionals in this forum to shed light on this matter.

Thank you.

Regards, Ramesh Nambiar

Dear Mr. Ramesh,

As per the narrated facts, you may collect consent from employees through the union in writing or membership records, then you can make deductions; otherwise, no. The facts of the said case do not match with your case. This is a very sensitive matter, so please handle it with care and take all precautions.

Regards,