Handling Notices from an Unrecognized Union Regarding Charter of Demands
When dealing with a Charter of Demand (CoD) from an unrecognized union, it is essential to follow a structured HR and legal approach to ensure compliance while protecting the company's interests.
📌 Step-by-Step Approach to Handle the Situation
1️⃣ Understand Union Recognition & Legal Standing
🔹 In India, under the Industrial Disputes Act, 1947, workers have the right to form and join unions, but employers are not obligated to recognize a union unless:
✅ It meets the legal criteria for recognition (majority representation in the workforce).
✅ It is recognized through a formal agreement or bipartite settlement.
🔹 AIUTUC (All India United Trade Union Centre) is a national trade union, but mere affiliation does not grant recognition.
2️⃣ Legality of the Charter of Demand from an Unrecognized Union
✅ An unrecognized union can submit a Charter of Demands (CoD), but the employer is not legally bound to negotiate unless:
The union represents a majority of workers in the organization.
It is a registered trade union under the Trade Unions Act, 1926 and has a formal bargaining status.
✅ If the union does not meet these criteria, the company can decline engagement with proper justification.
3️⃣ Drafting a Response to the Union Notices
🔹 Send a formal reply stating:
✅ The company does not recognize the union under applicable labor laws.
✅ Only recognized unions or direct employee representation will be considered for negotiations.
✅ Any grievances must be routed through internal grievance mechanisms or a legally designated workers' representative.
🔹 If pressure persists, consult a labor lawyer and engage with the Labor Commissioner's Office for clarity.
📌 How to Protect the Company from Future Union Claims?
✔ Establish an Employee Grievance Redressal System - Ensure employees can directly raise issues without union intervention.
✔ Communicate Policy on Union Recognition - Issue a formal company policy on union engagement eligibility.
✔ Legal Preparedness - Keep documentation of employee agreements, HR policies, and - internal dispute resolution mechanisms ready.
✔ Proactive Employee Engagement - Strengthen employee satisfaction to prevent union influence over small workforce groups.
📌 Final HR Recommendation
🚀 You are NOT obligated to consider notices from an unrecognized union. However, handling this diplomatically and legally will avoid escalation.