Context:

The protests by Samsung India workers in Sriperumbudur, Tamil Nadu, center on their fundamental right to form a registered trade union to collectively bargain for better employment terms.

The workers aim to negotiate a collective agreement with Samsung regarding their work conditions.

Workers at the Samsung facility in Sriperumbudur have been on a strike since September 9, 2024, demanding recognition for their newly formed union and an increase in wages.

What’s in today’s article?

• Right to Form Trade Unions: Constitutional Protection
• Collective Bargaining: Definition and Importance
• Right to Strike: Legal Recognition with Restrictions
• Why are Samsung workers protesting?

Right to Form Trade Unions: Constitutional Protection

• In the 1989 B.R. Singh vs Union of India case, the Supreme Court upheld the right to form associations or unions as a fundamental right under Article 19(1)(c) of the Constitution.
• Restrictions under Article 19(4) can only be imposed if public order, morality, sovereignty, or the integrity of India is at risk, and such restrictions must be logical, not arbitrary.
• The court emphasized that trade unions are essential for voicing workers' grievances, and the State is obligated to register trade unions to give workers a platform for collective representation.
• Registration under the Trade Unions Act, 1926, grants unions immunity from civil and criminal action.
  • According to Section 4 of the Act, even seven members can apply for registration, and the Registrar must ensure the union’s rules comply with the Act.

Collective Bargaining

• Definition and Importance
  • The Madras High Court, in Rangaswami vs Registrar of Trade Unions, defined the purpose of the Trade Unions Act as facilitating the collective bargaining process.
  • Collective bargaining, as defined by the International Labour Organization (ILO) in the 1981 Collective Bargaining Convention, involves negotiations between employees and employers to establish working conditions and terms of employment.
  • Some labour law scholars described collective bargaining as a balance of power between workers and employers, while others recognized it as a fundamental workers' right.
  • In India, collective bargaining is statutorily recognized under the Industrial Disputes Act 1947.
    • If collective bargaining fails, the State may refer the matter to a conciliation officer, and if necessary, to a labour court or industrial tribunal.
    • The act lists refusal to bargain collectively in good faith as an unfair labour practice.
• Historical Evolution of Collective Bargaining
• Collective bargaining has its roots in the late 18th and early 19th century, when coal miners fought for basic work conditions.
• It became a recognized practice following the Great Depression and World War II, evolving alongside democratic governance worldwide.
• In India, early traces of collective bargaining were seen during the 1918 Ahmedabad Mills strike led by Mahatma Gandhi, where a committee of arbitrators was formed to resolve a wage dispute.
• Judicial Recognition of Collective Bargaining in India
  • The Indian Supreme Court has consistently recognized the importance of collective bargaining to achieve social justice.
  • In the Karnal Leather Karmchari vs Liberty Footwear Company case, the court highlighted its significance in modern industrial life.
  • The court also observed in Ram Prasad Vishwakarma vs The Chairman, Industrial Tribunal that before the days of collective bargaining, workers were at a significant disadvantage.

Right to Strike: Legal Recognition with Restrictions

• The right to strike is a legal right recognized under the Industrial Disputes Act, 1947, though with certain restrictions.
• The Supreme Court views strikes as a “form of demonstration” by workers to assert their rights, including various forms such as ‘go-slow,’ ‘sit-in-work,’ and ‘work-to-rule.’
• The right to strike is acknowledged by most democratic countries and is seen by the International Labour Organization (ILO) as a natural extension of the right to organize.
• However, the Industrial Disputes Act does not consider the right to strike as absolute.
  • Section 22 mandates conditions for a valid strike, such as the requirement of giving notice to the employer at least six weeks in advance, prohibiting strikes during conciliation proceedings or within seven days after such proceedings end.
• The Supreme Court has ruled that while the right to form associations is guaranteed, unions must operate within the bounds of industrial law.

Why are Samsung workers protesting?

• Demand for the recognition of their newly formed Samsung India Workers’ Union (SIWU)
  • The core issue is the workers’ demand for the recognition of their newly formed Samsung India Workers’ Union (SIWU), under the banner of the Centre of Indian Trade Unions (CITU).
    • CITU is a left-leaning labour organisation affiliated with the Communist Party of India (Marxist).
  • The company resisted this demand by saying that it is against the idea of a union engaging in collective bargaining along with leaders from outside (involving leaders from CITU).
    • However, as per experts, Section 6(e) of Trade Unions Act, 1926 allows for the inclusion of honorary or temporary members as union office-bearers, which permits individuals from outside the workforce to assist.
  • Samsung’s management had also objected to SIWU’s registration on the ground that the name ‘Samsung’ in SIWU’s full form is a trade mark violation.
    • Section 29(5) of the Trade Marks Act, 1999 prohibits the use of a registered trademark in the name of a business.
    • However, trade unions, defined under Section 2(h) of the Trade Unions Act, 1926, are not considered business entities but are formed to regulate relations between workers and employers.
    • U.S. courts have developed the concept of 'nominative fair use,' where enough of a company’s distinguishing elements can be used to reasonably associate the union with the company, implying this may apply in Samsung’s case.
• Salary
• Many protesting workers have complained about not receiving an increase in their wages in the past despite Samsung India earning profits.
• Working Conditions
  • The workers have raised concerns over extensive long hours.
  • They complained that they were made to work beyond their nine-hour shifts and nature of their work requires them to stand for most part of the shift.