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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Industrial Relations Code, 2020

Kaveri Auto Ltd, Pune, has 1,000 workers on its muster roll and three registered trade unions. Union A has verified support of 520 workers, Union B 300 and Union C 180. Under the Code, what is the position?

Union A must be recognised as the sole negotiating union. It has 520 of 1,000 workers, which is 52 per cent and meets the fifty-one per cent threshold, so no negotiating council is required.

  1. AA negotiating council must be formed with all three unions
  2. BUnion A must be recognised as sole negotiating unionCorrect
  3. CUnion A and Union B together form the negotiating union
  4. DNo recognition is possible until the unions merge

Explanation

Section 14(3) requires recognition as sole negotiating union of the union supported by fifty-one per cent or more of the workers on the muster roll. Union A has 52% (520 of 1,000). A negotiating council under Section 14(4) applies only if no union reaches 51%.

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