SMALLER TRADE UNIONS LOSES ITS BARGAINING POWER UNDER THE INDUSTRIAL RELATIONS CODE- NEW LABOUR CODE

 SMALLER TRADE UNIONS LOSES ITS BARGAINING POWER UNDER THE INDUSTRIAL RELATIONS CODE- NEW LABOUR CODE

KEY CHANGES IN BARGAINING POWER

RECOGNITION OF TRADE UNIONS

•        The Industrial Relations Code introduces the concept of a “negotiating union” or “negotiating council.”

•        A union with 51% membership in an establishment is recognized as the sole negotiating union.

•        If no single union has majority membership, a negotiating council is formed with representatives from unions having at least 20% membership.

•        This centralizes bargaining but may weaken smaller unions’ influence.

MANDATORY 14 DAYS NOTICE FOR STRIKES AND LOCKOUTS

•        Stricter conditions for strikes: workers in all sectors (not just public utility services) must give 14 days’ notice before striking.

•        This reduces the spontaneity of collective action and strengthens employer control.

MANDATORY STANDING ORDERS

•        Mandatory standing orders (rules of conduct for workers) now apply only to establishments with 300 or more workers (earlier 100).

•        This gives employers more flexibility in smaller units, limiting union leverage in such workplaces. 

WEAKENING COLLECTIVE BARGAINING SCOPE

•        While the codes aim to streamline negotiations, critics argue they restrict collective bargaining rights compared to international labour standards.

•        Issues like minimum wages, gender equity, and social security remain inadequately addressed, weakening unions’ ability to push for broader worker protections.

MORE ADVANTAGEOUS TO EMPLOYERS

•        For Large Unions: Stronger bargaining position if they can secure majority membership.

•        For Smaller Unions: Reduced influence, as fragmented representation is less effective under the new rules.

•        For Employers: Greater flexibility and predictability in industrial relations, but potentially at the cost of worker voice.

•        For Workers: More formalized negotiation channels, but limited ability to mobilize quickly or challenge management decisions.

COMPARISON OF OLD LABOUR LAWS WITH NEW LABOUR CODES

SUBJECT	OLD FRAMEWORK	MEW LABOUR CODE
Union Recognition	Multiple unions could bargain	Single majority union or council
Strike Notice	Required mainly in public utilities	Mandatory 14-day notice in all sectors
Standing Orders Threshold	100 workers	300 workers
Bargaining Scope	Broader, though fragmented	Streamlined but narrower

 In short, the new labour codes consolidate bargaining power in majority unions but simultaneously impose restrictions that dilute overall union strength, especially for smaller groups.

YOUR COMPLIANCE PARTNER – R V SECKAR , FCS, LLB, 79047 19295