The Supreme Court has declined to interfere with an order of the Madras High Court holding that the majority support in a trade union, when there are more than one union, can be decided only by secret ballot and multinational companies cannot by-pass the majority union in wage negotiations.
A Bench of Justices S.J. Mukhopadhaya and V. Gopala Gowda dismissed an appeal filed by Foxconn (India) Pvt Ltd, a multinational company in Sriperumbudur near Chennai against the High Court order directing the Assistant Labour Commissioner (ALC), Chennai to conduct elections to the unions by secret ballot. The High Court also made it clear that the trade union obtaining the highest number of votes in the process of election should be given recognition by the FCI for a period of five years from the date of the conferment of the recognition.
Podhu Thozhilalar Sangam, affiliated to the Centre for Indian Trade Unions (CITU) was aggrieved over the attitude of the company management in not negotiating with CITU union regarding wage settlement and related matters. The petitioner moved the High Court alleging that the company had entered into a settlement with a minority trade union, by-passing democratic principles. It alleged that multinational companies like Foxconn were deliberately indulging in unfair labour practices by negotiating with trade unions whom they liked and deprived the workers the right of collective bargaining and fair conditions of service. A single judge of the High Court directed the ALC to hold elections through secret ballot and on appeal by the company a Division Bench upheld this direction. The present appeal by the company was directed against this order.
On August 8, 2013, by an interim order, the Supreme Court directed the ACL, Chennai to comply with the directions of the Single Judge of Madras High Court and ascertain which of the two unions commanded the support of the workers. The ACL submitted a report to the Supreme Court stating that after notice to all parties, he had called for nominations on October 18, 2013. Only the union affiliated to CITU filed their nominations and the LPF which is the trade union wing of DMK remained absent and results were not declared. In the light of dismissal of the SLP, results of secret ballot would be declared by the ALC.
