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M/s. Faxconn (India), a multinational company situated in Sriperumbudur in Chennai, entered into a settlement with the minority Union bypassing democratic principles and ignoring majority Union by name, Podhu Thozhilalar Sangam affiliated to CITU.

The Union, Podhu Thozhilalar Sangam filed writ petition in the High Court of Madras alleging that the company had entered into a settlement with the minority trade Union bypassing democratic principles and ignoring majority Union. The learned single Judge of Madras High Court directed the Asst. Labour Commissioner, to hold elections through secret ballot and determine majority union.

Aggrieved by the above order, the company filed writ petition before the Division Bench of Madras High Court and the same was dismissed.

The company went in appeal to the Apex Court contending that the settlement was entered into with many of the workmen and therefore, the order of the Madras High Court is not in conformity with real facts and therefore the same cannot be questioned by the Union which was not recognized by the management.

The Apex Court after hearing the parties upheld the judgment of the single judge and the Division Bench of Madras High Court holding that when there is more than one Union, the majority Trade Union should be determined only by secret ballot and that multinational companies cannot bypass majority Union in wage negotiations.

Accordingly, the Apex Court directed the Asst. Labour Commissioner, Chennai, to conduct secret ballot and declare which of the Union is the majority Union to be recognized by the multinational company, M/s. Foxconn (India) Ltd.,

In view of the above judgment of the Apex Court, we are of the opinion that when there are more than one Union, it is necessary that the labour authorities should be requested by the management to conduct elections by secret ballot, before entering into any settlement. In this way, the majority Union for recognition should be determined only by secret ballot. However, if there is check-off system of deducting Union subscription and remitting to the Union, it is easy to know the majority Union. In such cases, conducting secret ballot to determine the majority Union does not arise.

This judgment is rendered by a Bench of Justice S.T. Mukhopadhaya and Justice V. Gopala Gowda.

Incidentally, Justice V. Gopala Gowda is from the State of Karnataka and was an Advocate representing Trade Unions before the Labour Court, Tribunal and Hon'ble High Court of Karnataka. Justice V. Gopala Gowda, was the judge of Karnataka High Court for nearly a decade and thereafter Chief Justice of Odisha High Court for nearly 2 years. Now, he is Judge of Hon'ble Supreme Court for more than two years.


The author can also be reached at drgubbilegal@gmail.com


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Category Labour & Service Law, Other Articles by - Dr Gubbi S Subba Rao 



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