Retired Representatives in Industrial Negotiations: Bombay HC's Landmark Judgement Upholds Union Rights

In a significant judgment, the Bombay High Court's Aurangabad Bench has quashed a key provision of the Bank of Maharashtra's Industrial Relations Policy, marking a crucial victory for trade unions across India. The ruling, delivered on 02 August, 2024, has far-reaching implications for the rights of elected trade union representatives, particularly those who have retired from service.

Timeline of The Legal Battle

The case stems from a 2019 policy implemented by the Bank of Maharashtra, which included a clause restricting retired elected office bearers from representing the union in negotiations with the bank's management. The All India Bank of Maharashtra Employees’ Federation(AIBMEF), represented by General Secretary Devidas Tuljapurkar, challenged this clause in 2021, arguing that it violated the Indian Trade Union Act of 1926. The hearing was delayed due to the COVID-19 pandemic, but the case was finally heard by a division bench comprising Justice Ravindra Ghuge and Justice Y.G. Khobragade.

After careful consideration of the arguments presented by both sides, the bench ruled in favour of the union. The contentious provision of the Industrial Relations Policy was struck down, with the court affirming the union's argument that the clause was contrary to the rights guaranteed under the Indian Trade Union Act, 1926.

(Copy of a relevant portion of the judgment.)  

Impact on Trade Union Rights

The ruling is seen as a landmark victory not only for the Bank of Maharashtra Employees Federation and the banking unions, but also for the broader trade union movement in India. By upholding the right of retired union representatives to participate in negotiations, the court has reinforced the democratic right of union members to choose their own representatives, regardless of the leader’s employment status.

This decision is expected to set a precedent that will influence how trade unions across various sectors, especially in public sector banks, interact with management in future negotiations. It also addresses a growing concern within the trade union community about attempts by the employers to curtail the effectiveness of union representation by imposing restrictive policies.

Landmark Victory Amid Heightened Tension 

Devidas Tuljapurkar, General Secretary of AIBMEF, who is also the petitioner in this case, praised the verdict as a landmark victory for the trade union movement. “ “Several bank managements have been trying to restrict retired employees from representing the unions, considering retired employees as outsiders. The hidden motive behind is to curtail voices of dissent in industrial affairs, as retirees are not amenable to the management. This latest judgment from Bombay HC will put an end to such tactics. Hence it is a victory for the trade union movement as a whole”, Tuljapurkar told Kanal reflecting on the verdict.

Devidas Tuljapurkar is also the Joint Secretary of All India Bank Employees Association(AIBEA) and one of the signatories of the 12th bipartite settlement between Indian Banks Association(IBA) and the United Forum of Banking Unions(UFBU), representing the workmen.           

The judgment comes at a time of heightened tension between employers and trade unions in India, particularly over issues related to the right to representation and the right to collective bargaining. The ruling highlights the legitimacy of workers' rights in the country.