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Procedure and expenditure for referendum

(Querist) 07 August 2012 This query is : Resolved 
Dear Sir,

In our company two unions are existence and both are claiming they are majority for Collective bargaining. Management tried to form the Joint negotiations committee and one union not ready to form the joint committee and the same time minority union (lessor members as per their list)filed application with ALC that they are the majority union.After conciliation ALC not able to conclude the case.Then management decided requesting labour commissioner for referendum for collective bargaining.Now Labour commissioner also advised and appointed labour officer of our area as a returning officer for conducting referendum.
Now my question is whether the cost of referendum should be born by the company?,If so what are the cost involved ?

Waiting for valuable suggestion.

Regards
Umesh PR
Kirti Kar Tripathi (Expert) 19 August 2012
To recognize or not to recognize is the the right of management. No law compel the management to recognize a particular union. However, for smooth functioning and maintenance industrial peace and also for collective bargaining, it is advisable to get a body of the workman to whom it may deal with. In industrial law it is not possible for the management to satisfy all the employees of the industry. Thus conception of collective bargaining was introduced.But in our country no law give mandate to recognize a particular union. It is only code of conduct advised by the government. The management has a right to enter into an settlement on demand charter, irrespective of the fact, the union entering into an agreement is having majority support of workman or not. The other union, if is not satisfied or not sign the settlement has aright to raised industrial disputes for their on demands. No one can stopped them. The settlement will not be binding upon the member of that particular union.
As regard of your query that who will be responsible for expenditure for referendum, is concerned. There is no rule.It depend on mutual understanding. Normally this type of expenses are born by the management.
Umesh (Querist) 20 August 2012
Dear Sir,
Thank you very much for your valuable suggestion.

can you please let me know what are the cost involved for referendum because Labour department asked for Rs.1 Lac Deposit.

Regards
Umesh PR
Kirti Kar Tripathi (Expert) 20 August 2012
There is no norms. You can make your own arrangement. Valid papers and voter list can be prepared with the aid of representative of unions and Labour Department is only authority to supervise the same. I do not know why they are asking this huge amount.


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