The Centre on January 2 approved an amendment to the Trade Unions Act, 1926, to make provisions regarding the recognition of trade unions.

The present Act provides for only registration of trade unions. Currently, there is no provision for recognition of unions in the Act.

However, the recognition of trade unions is governed by guidelines in the Code of Discipline evolved in 1958, voluntarily accepted by employers and employees.

The recognition is necessary because the recognised trade union of an industry or establishment gets bargaining or negotiating rights with the employer.

“The Union Cabinet chaired by Prime Minister Narendra Modi has approved amendment to the Trade Unions Act, 1926, to make provisions regarding recognition of trade unions,” an official statement said.

According to the statement, the amendments will facilitate the recognition of trade unions at the Central and state level, ensure true representation of workers in tripartite bodies, check on the arbitrary nomination of workers’ representatives by the government, and reduce litigations and industrial unrest.

The proposed Bill will ensure that the nomination of workers’ representatives in tripartite bodies by the government will become more transparent. The trade unions so recognised will be accountable in maintaining industrial harmony.

The recognition of trade unions at the Central and state level will reduce duplicacy of such exercise by different departments. Recognised trade unions may be assigned specific roles at the Central or state level.

The amendment provides for the insertion of Section 10A in the principal Act, which empowers the Centre and state governments to recognise trade unions and the federation of trade union at the Central government level.

The Bill also provides for insertion of clause (ba) in Section 29(2) of the Act, which empowers the Centre and states to make regulations for the manner of recognition of trade unions and deciding disputes in this regard.

After the amendment Act is passed, the manner of recognition will be prescribed in the regulations.