The approval will facilitate:
- Recognition of Trade Unions at Central and State level.
- Ensure true representation of workers in the tripartite bodies.
- Check on the arbitrary nomination of workers’ representatives by the Government.
- 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. Trade Unions so recognized would be accountable in maintaining industrial harmony.
Recognition of Trade Unions at Central/State level would reduce duplicity of such exercise by different departments. Recognized Trade Unions may be assigned specific roles at Central or State level.
Being a pre-independence legislation, the said Act provides only for registration of Trade Unions. There is no provision for recognition of Trade Unions in the Act.
However, presently recognition of Trade Union is governed by instructions and guidelines in the Code of Discipline evolved in 1958 as voluntarily accepted by employers and employees.
Since there are demands from various quarters for providing statutory force to the recognition of Trade Unions so that their role will become more important in maintaining harmonious industrial relations in the country, the Government proposes to amend the said Act