The amendment bill provides for inserting of section 10A in the Trade Union Act, 1926 to power centre and state governments to recognize trade unions and federation of trade unions at central as well as state level.
The amendment bill once passed by the parliament, the Ministry of Labour would issue rules and regulations prescribing the manner of recognition of these trade unions.
Benefits from the Proposed recognition to Trade Unions
The benefits of formal recognition to the trade unions are:
- Ensure true representation of workers in the tripartite bodies in a transparent manner.
- Check on the arbitrary nomination of workers’ representatives by the Government.
- Reduce the duplicacy of such exercise by different departments.
- The recognised trade unions may be assigned specific roles at Central or State level. This would aid in developing inclusive governance.
The Indian Trade Unions Act, 1926 provided for only registration of trade unions and there was a long pending demand to grant recognition to trade unions. The amendment bill fulfils this long-standing demand.