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2015 Supreme(Ori) 92
ORISSA HIGH COURT, CUTTACK.
C.R. DASH, J.
Steel Employees Association and another - Petitioners
Versus
Union of India and others - Opp. Parties
W.P. (C) No. 13683 of 2014
Decided on : 18.03.2015
Advocate Appeared:
For Petitioners: M/s. Banshidhar Satapathy and S. Panda.
For Opp. Parties : Mr. A.K. Bose, Asst. Solicitor General (for O.Ps.1 to 4)
M/s. Jagannath Pattanaik, B. Mohanty, T.K. Pattnaik, A. Patnaik and S. Patnaik. (for O.P.5)
M/s. N. K. Mishra, A.K. Ray, P. Das, and S. Pradhan (for O.P.6).
M/s. Sarat Chandra. Dash, R.B. Das and S.N. Jena (for O.P.7)
In the absence of statutory rules, the Code of Discipline, executive instructions, and circulars govern the verification process for membership of Trade Unions. The process should be carried out through secret ballot, and the representative character of Trade Unions should be assessed based on established norms.
Headnote:
Trade Union - Verification Process - Code of Discipline, 1958, Rules for verification of membership and recognition of Trade Union Rules 1994, Executive Instructions of 1980 and 2011 - The court discussed the history and legal framework governing the process of verification of membership of Trade Unions, emphasizing the importance of the Code of Discipline, executive instructions, and circulars in the absence of statutory rules. The court also highlighted the principle established by the Supreme Court that the verification process should be carried out through secret ballot and the norms for assessing the representative character of Trade Unions through secret ballot.
Fact of the Case:
The petitioners, two Labour Unions, challenged the initiation of the verification process for membership of Trade Unions through secret ballot at Rourkela Steel Plant. The court directed the Labour Unions to participate in the verification process but prohibited the final order without leave of the Court. The election through secret ballot was held, but the result was not published.
Finding of the Court:
The court dismissed the writ petition, stating that the objections raised by the petitioners regarding the absence of rules for election through secret ballot, allowing non-members to cast votes, and the determination of relative strength of the Union were not valid. The court emphasized that the Code of Discipline, executive instructions, and circulars governed the field in the absence of statutory rules.
Issues: The issues raised by the petitioners included the absence of rules for election through secret ballot, allowing non-members to cast votes, and the determination of relative strength of the Union.
Ratio Decidendi: The court held that in the absence of statutory rules, the Code of Discipline, executive instructions, and circulars governed the verification process. It emphasized that the objections raised by the petitioners were not valid and that the verification process through secret ballot was a democratic process for recognition of the Union.
Final Decision: The writ petition was dismissed, and the court directed the result of the election through secret ballot to be declared forthwith. The court also urged the Union of India to take proper steps regarding framing a rule to govern and operate in the field of verification of membership of Trade Unions.
Judgment :
C.R. Dash, J. The petitioners are two of the Labour Unions functioning under Rourkela Steel Plant (SAIL, Rourkela). They have impugned the letter dated 26.03.2014 issued by the Deputy Chief Labour Commissioner (Central), Bhubaneswar (opp. party no.3) initiating the process of verification of membership of Trade Unions through secret ballot so far as Rourkela Steel Plant is concerned.
2. Sri Nitya Kishore Mohanty, General Secretary of opposite party no.2 Labour Union is present in person. He represents both petitioner nos.1 & 2. Mr. N. K. Mishra, learned senior counsel appearing for opposite party no.6, Mr. A.K. Bose, learned Assistant Solicitor General appearing for opposite party nos.1, 2, 3 & 4 and Mr. Jagannath Pattnaik, learned senior counsel appearing for opposite party no.5 – Rourkela Steel Plant are also present.
3. Heard Mr. Nitya Kishore Mohanty, General Secretary of the Labour Union (petitioner no.2) and learned counsels appearing for the parties.
4. The verification process for recognition of Trade Union was initiated in the present case on 26.03.2014 vide Annexure-1. The election through secret ballot was scheduled to be held on 15.10.2014. On 25.07.2014 the petitioners, who are two Labour Unions operating in Rourkela Steel Plant, filed the present writ petition with a prayer to quash the impugned letter dated 26.03.2014 issued by the Chief Labour Commissioner (Central), Orissa. Opposite party no.4 is initiating the process of verification of membership of the Unions on the ground that the election through secret ballot is scheduled to be held in absence of any rules framed by the Central Government.
5. Vide order dated 05.08.2014 passed in Misc. Case No.12271 of 2014, this Court directed all the Labour Unions including the present petitioners to participate in the verification process initiated vide Annexure-1, but it was further directed that no final order shall be passed by the authority concerned regarding election without leave of the Court. In view of the aforesaid order, the election through secret ballot has already been held, but result has not yet been published.
6. The previous elections/verification process of members of the Union were being conducted by the State under the provisions of the Rules for verification of membership and recognition of Trade Union Rules 1994, as the State of Orissa was the appropriate Government. The previous elections through secret ballot in Rourkela Steel Plant for recognition of Union after 1994 has had been held under the aforesaid Rules of 1994. I feel expedient here to find out the history of the procedure governing the process of verification of membership of the Trade Unions. The process of verification of membership of Trade Union originally started with formulation of the Code of Discipline in the 15th Indian Labour Conference in the year 1957. Said Code of Discipline was adopted in the 16th Indian Labour Conference in April, 1958. After that, the Code of Discipline was finalized in a meeting of representatives of the Management and the Unions in May, 1958. The Code of Discipline governing the process of verification of membership of Trade Unions came into force with effect from 01.07.1958 with due agreement by the Management and the Unions. Said Code of Discipline was drawn / approved in consultation with the federation of employers and the federation of Trade Unions as operating in the field during that time, which was the highest policy-making body on the matter of framing of policy for maintaining healthy industrial relationship in the country.
7. So far as the State of Orissa is concerned, before 1994 Rules came into force, the aforesaid Code of Discipline adopted at the 16th session of Indian Labour Conference held in 1958 was being followed for the process of verification of the membership of the Trade Unions by the State of Orissa. In the aforesaid 1994 Rules, however, Appendix-IV of the Code of Discipline was substituted, other matters of the C
