Are Unregistered Unions Allowed to Intervene in Our Construction Work Disputes? Seeking Legal Insights

Dear sir, Our organization is a construction company, and our construction work is running under a Factory. We have obtained a license under CLA & ISMW Act and are registered under BOCW as well. Some unions have registered with the PE as per the rules of the Factory and Trade Union Act. However, the union is not registered with our organization. Is it legal for unions to be involved with our organization?

Can the union directly send notices to our organization in case of any disputes with our workers under the ID Act?

Why are unions getting involved with our organization even though they are not registered?

How can we prevent unions from engaging in this type of activity?

Honorable senior members, please share your feedback/comments under the Labour Law Act.

Regards,
Mahesh Gupta

Are the employees under you, i.e., the employees to whom you pay a salary, members of the said Union? A trade union can be formed for the common interests of workers in different establishments in one locality. It can be a trade union of workers with similar job profiles. In such cases, no separate registration as a Union of your establishment is required. However, you should go through the bylaws of the Union. It can be a union of construction workers or a trade union of an industrial estate where your activities are ongoing. In any case, it is a legal issue, and if your employees are not members of that union, you need not entertain the union at all. But at the same time, if your employees are members of the said Union, then you should attend to them.

Trade unions are a reality; they cannot be wished away. Once a union has emerged, it is better to deal with it and reach some understanding on the issues raised by them rather than confrontation or ignoring them. There is no mandatory requirement or process to register a union with the employer. Here, it appears there is a registered union for the Principal Employer (PE) that has raised some issues pertaining to your labor with you. They have the right to do so, provided they have the support of your laborers. Since you are only a contractor establishment, you may deal with the union in conjunction with the PE.

Regarding your queries, the position is clarified as follows:

1. This union can send notice to you.
2. The union may not be registered with you but still has the right to represent your workmen if it has their support. If you are certain that the union does not have any support from your laborers, you can reply stating so and refuse to bargain with them.
3. Unions thrive on the grievances and the collective insecurity the laborers may feel. You can address the legitimate concerns and take appropriate corrective action. One effective way to handle unions is by building mutual trust and maintaining continuous communication with all employees.

Dear Mahesh Prasad Gupta,

This is in addition to what the above-mentioned learned members have stated about the role of a trade union in handling problems in industrial relations by espousing the cause of workmen. It is immaterial whether the trade union is a registered one under the Trade Unions Act, 1926, or not, as long as there exist genuine grievances of employment, and the affected workmen, irrespective of their status of employment, authorize the trade union to take up the issues on their behalf.

Of course, a registered trade union has certain privileges like recognition by the employer as the bargaining agent, sending representatives to various internal committees like the works committee, grievance settlement committee, etc. However, it is not necessary that the trade union should register with the employer, nor is it prohibited from communication with the organization whose workers are its members.