Cabinet Approves to Amend Bill to Provide Statutory Recognition to Trade Unions

New Delhi: The government on Wednesday approved amendment to the Trade Unions Act, 1926 to make provisions regarding recognition of trade unions.

The present act provides for only registration of trade unions. Currently, there is no provision for recognition of unions in the Act.

However, the recognition of trade union is governed by guidelines in the 'Code of Discipline' evolved in 1958, voluntarily accepted by employers and employees.

The recognition is necessary because recognised trade union of an industry or establishment gets bargaining or negotiating rights with the employer.

"The Union Cabinet chaired by Prime Minister Narendra Modi has approved amendment to the Trade Unions Act, 1926 to make provisions regarding recognition of Trade Unions," an official statement said.

According to the statement these amendments will facilitate recognition of trade unions at central and state level; ensure true representation of workers in tripartite bodies; check on the arbitrary nomination of workers' representatives by the government; and reduce litigations and industrial unrest.

The proposed Bill will ensure that the nomination of workers' representatives in tripartite bodies by the government will become more transparent. The trade unions so recognised will be accountable in maintaining industrial harmony.

The recognition of trade unions at central/state level will reduce duplicacy of such exercise by different departments. Recognised trade unions may be assigned specific roles at central or state level.

The amendment provides for insertion of Section 10A in the principal Act, which empowers centre and states government to recognise trade unions and federation of trade union at central government level.

The bill also provides for insertion of clause (ba) in Section 29(2) of the Act, which empowers the centre and states to make regulations for manner of recognition of trade unions and deciding disputes in this regard.

After the amendment Act is passed, the manner of recognition will be prescribed in the regulations.

The nomination of the workers' representatives in tripartite bodies by government will become more transparent. Recognised trade unions will be accountable in maintaining industrial harmony. It will ensure true representation of workers in the tripartite bodies and put a check on the arbitrary nomination of workers' representatives by the government. Besides it will reduce litigations and industrial unrest.