Can a Union Have 40 Members in a Wage Negotiation Committee? Need Urgent Advice!

Dear all,

Ours is a manufacturing industry with 460 employees covered by wage agreements. We have 4 registered trade unions. Recently, trade union secret ballot elections were conducted by the labor department, and a union gained the majority, being recognized by the Department of Labor. They have now submitted a charter of demands, and we need to commence negotiations with the recognized trade union. They have indicated that they will establish a wage negotiation committee comprising 40 members of their union. The number seems excessive. Could you kindly advise if there are any limitations or restrictions on the number of union members who can form a wage negotiation committee under the Industrial Disputes Act or any other applicable legislation? Please suggest urgently, as our Managing Director is eagerly awaiting my response. Thank you for your prompt attention.

Regards, Sudhakarsaraswathi.

Forming a Negotiation Committee in Trade Unions

No statutory restrictions or guidelines exist for forming a committee for any particular purpose by a trade union. Basically, a trade union, being a representative body of all its members, conducts negotiations through its office bearers, namely the President, Vice-President, Secretary, Treasurer, etc. Similarly, on the employer's side, in negotiations concerning wage revisions and other general demands, representation can be provided by the CEO, General Manager, Production Manager, Finance Manager, HR Manager, etc., rather than all managers and supervisors. Limiting the negotiating team on each side to individuals with specific functional backgrounds and bargaining skills makes it easier to differentiate between issues and non-issues and to reach a speedy agreement in the interest of both parties.

Conversely, when the number of team members is large, such as 40 or 50 on one or both sides, the process becomes unwieldy, unproductive, and chaotic, negatively impacting the negotiation process and consensus on mutually beneficial points. Therefore, management should convincingly communicate this fact to the trade union to restrict the number of negotiating team members representing it.

Role of the Representative Union

When the representative union legally acts as the sole bargaining agent on behalf of all 460 workers belonging to different grades, sections, or departments and spread across various unions, it can establish an advisory committee representing each section. However, the number of negotiators should be limited to the aforementioned office bearers plus a legal advisor if deemed necessary, conducting negotiations in a manner that aligns with the mandate provided by the advisory committee.

Wage Negotiation in Central PSUs

In Central PSUs, the wage negotiation takes place in a bipartite committee with nearly 100 representatives. However, having 40 representatives in a unit of 460 workers is indeed a highly unviable number. It seems that the newly elected recognized union aims to intimidate the management with their strength.

Proposed Solution for Effective Negotiation

To address this issue, you could propose that, despite the committee of the union, regular meetings will be held with a limited number of representatives, perhaps 5 or 6 members. The larger committee of the union would be present when the agreement is being finalized.

It appears that this union is newly elected and is employing these tactics to showcase their influence.