Can Two Unions Submit Different Demands to the Same Company? Legal Insights Needed

Can two unions simultaneously submit two separate charters of demands to the management of the same company? We heard that at one pharmaceutical company, two unions have submitted separate charters of demands. Union A has submitted a COB with a reasonable hike, whereas Union B has submitted a COB with a very high hike. The management wishes to negotiate with Union A, as their demand is quite reasonable. Will it be valid? Can someone share any case laws or articles related to how the management can proceed legally?

In such a scenario, you will have to recognize one union as the sole bargaining agent. In some states, the process of recognizing trade unions is outlined by separate enactments. Please note that the Industrial Disputes Act does not provide for recognizing trade unions. Only a few states like Kerala, Madhya Pradesh, Maharashtra, West Bengal, and Odisha have passed legislation for recognizing trade unions. In other places, the general codes of conduct in this direction as outlined by the ILO shall be followed.

A union having more than 50% of workers as members shall be recognized as the sole bargaining agent. For this, you will have to conduct a referendum with the help of the Labor Officer. Once a union is identified as the sole bargaining agent, you can negotiate with that union.

Thanks, Mr. Madhu, for your swift reply. Here, the strength has been equally shared by the two unions. In such cases, I feel that the management must approach the labor department and seek their advice. What is your comment on this?

Yes, when there is no consensus between the unions and in the absence of a common charter of demands, it is always desirable to include the conciliation officer in the negotiation. Please approach the labor officer.

Could you please share any related case law or article, if available?

Determining the Bargaining Agent

To determine the bargaining agent, it will be necessary to conduct an election, which is not an easy process. My personal suggestion is to let management prepare its Charter of Demands (COD) as a business need and call both unions separately for negotiation at the initial stage—one or two meetings maximum. Then, tell them to sit jointly. If they agree, it is well and good; otherwise, refer the matter to the labor directorate, who will call a meeting with both the unions and management.

Discussion will continue at the labor directorate to arrive at an amicable solution. I have personally gone through this process with GKW, Philips, EKO Diagnostic, etc. (even in some places with more than two unions) several times, and it was successful.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons]