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2010 Supreme(Mad) 3896
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE D. HARIPARANTHAMAN
Coimbatore Regional Mill Labour Union
Versus
National Textile Corporation Limited Southern Regional Office, Coimbatore & Others
W.P.Nos.1440 & 5030 of 2010 & CONNECTED MISCELLANEOUS PETITIONS
Decided On : 02-09-2010
For the Petitioner:Balan Haridas, Advocate.
For the Respondents:R1 & R2 - T.R. Rajagopalan, Senior Counsel for T.R. Rajaraman, R3 to R8 - N.G.R. Prasad for M/s. Row & Reddy, Advocates, R9 - Mrs. Lita Srinivasan, Government Advocate.
The main legal point established in the judgment is that trade unions with 10% membership of the workforce should be recognized, and casual employees are entitled to vote in the election for the purpose of electing recognized unions.
Headnote:
Trade Unions Act - Recognition of Unions - 1926 - The judgment discusses the recognition of trade unions under the Trade Unions Act, 1926, and the criteria for membership percentage for recognition. It also addresses the inclusion of casual employees in the voters list for union recognition.
Fact of the Case:
The case involves two writ petitions filed by different labor unions against the National Textile Corporation Ltd. regarding the recognition of unions and the criteria for membership percentage for recognition.
Finding of the Court:
The court found that the recognition should be given to a trade union that secures votes representing 10% of the workforce. It also ruled that casual employees are entitled to vote in the election for the purpose of electing recognized unions.
Issues: The issues involved in the case were: (i) whether the union that secures votes representing 10% of the workforce has to be recognized or the union should get 15% of the workforce for recognition, and (ii) whether the casual employees are to be given voting rights.
Ratio Decidendi: The court held that the recognition should be given to a trade union that secures votes representing 10% of the workforce. It also decided that casual employees are entitled to vote in the election for the purpose of electing recognized unions.
Final Decision: The court directed the respondent corporation to conduct elections in all the 7 textile mills in Tamil Nadu for the purpose of granting recognition to the unions, under the guidance and directions of the Assistant Commissioner of Labour, Coimbatore, within a period of eight weeks from the date of receipt of the order.
1. Since the issue involved in both the writ petitions are one and the same, both writ petitions are taken up together.
2. The writ petition in W.P.No.1440 of 2010 has been filed by the Coimbatore Regional Mill Labour Union (shortly "the CRML Union").
3. The writ petition in W.P.No.5030 of 2010 has been filed by the Coimbatore District Mill Labour Union (shortly "the CDML Union").
4. Both the Unions are registered under the Trade Unions Act, 1926. The members of both the Unions are workmen, employed in the National Textile Corporation Ltd. (shortly "the Corporation"). The Corporation is fully owned by the Government of India. The Corporation runs textile mills in Tamil Nadu, Kerala, Andra Pradesh and Mahe in Pondicherry. 7 textile mills are owned by the Corporation in Coimbatore District in Tamil Nadu; 5 textile mills in Kerala; 1 textile mill in Andhra Pradesh and one in Mahe in Pondicherry. We are now concerned with the textile mills in the State of Tamil Nadu.
5. Many Unions are functioning in the textile mills owned by the Corporation. In 1991, the Corporation recognized the Unions at unit level, which had 5% of the work force as their members. In 1995, the same has been raised to 7.5%. In 1996, the same has been further raised to 10%. In all these years, the Corporation adopts check off system for granting recognition.
6. In December 2009, the Corporation sent a letter to the Unions stating that they have decided to increase the percentage from 10% to 20% for recognition. This was objected by all the Unions. They wanted the existing 10% for recognition of the Unions to continue. But they demanded secret ballot in lieu of check off system.
7. While so, the writ petition in W.P.No.1440 of 2010 was filed by the CRML Union, praying for secret ballot to elect the representative body. According to them, the first two Unions, which secure the highest votes, could be the representative Unions.
8. After filing the writ petition in W.P.No.1440 of 2010, the Corporation issued a circular dated 22.02.2010 stating that 15% of the work force as members would be sufficient to become a recognized Union. However, the Corporation stated that the check off system would continue. The CDML Union made a representation dated 23.02.2010 in reply to the circular dated 22.02.2010 requesting the Corporation not to alter the existing 10% work force as membership for recognition. The representation was rejected by the Corporation by the order dated 02.03.2010 reiterating their earlier letter dated 22.02.2010. This led to the CDML Union filing a writ petition in W.P.No.5030 of 2010 to quash the orders dated 22.02.2010 and 02.03.2010 of the Corporation and for a consequential direction to hold secret ballot to recognize the Unions which have the membership of 10% of the work force, including casuals, who have been working for over 10 years.
9. Notice of motion was ordered on 28.01.2010 in W.P.No.1440 of 2010. The writ petition in W.P.No.5030 of 2010 was admitted on 11.03.2010 and interim injunction was also granted on the same day. The Corporation has filed a counter affidavit.
10. Heard the submissions made on either side and perused the materials available on record.
11. The Corporation owns 7 mills in Tamil Nadu. In all the mills, the recognition of Unions are done at the unit level. That is, in each mill, trade unions are recognized based on their membership. In 1991, a trade union that had 5% of total work force in the unit as its members was recognized. Later, in 1995, it was raised to 7.5%. In 1996, it was further raised to 10%. From the year 1996 onwards, the unions are recognized if they have 10% of work force as its members. The Corporation follows the check off system and election by secret ballot system has not been conducted so far. Now, the Corporation is willing to conduct election by secret ballot system to elect the recognized unions at the unit level.
12. Though the CRML Union prayed for recognition of only two unions t
