(1) There shall be a negotiating union or a negotiating council, as the case may be, in an industrial establishment having registered Trade Unions, for negotiating with the employer on such matters as may be prescribed.
(2) Where only one registered Trade Union is functioning in an industrial establishment, the employer shall recognize such Trade Union as sole negotiating union.
(3) If more than one Trade Union is functioning, the Trade Union having fifty-one per cent or more workers on the muster roll shall be recognized as the sole negotiating union.
(4) If no Trade Union has fifty-one per cent membership, the employer shall constitute a negotiating council consisting of representatives of such registered Trade Unions which have not less than twenty per cent of the total workers, with one representative for every twenty per cent of workers.
Legal Commentary & Landmark Judgments: Section 14
Section 14 of the Industrial Relations Code introduces a historic statutory mechanism for the recognition of a 'Negotiating Union' or 'Negotiating Council' to represent workers in collective bargaining with the employer.
Where no single union commands fifty-one percent membership, sub-section (4) mandates the constitution of a 'Negotiating Council' consisting of representatives of trade unions that command at least twenty percent support, with proportional representation.
Section 14 institutionalizes collective bargaining in India. Employers can no longer pick and choose pliant minority unions to sign sub-optimal wage settlements; settlements signed with the statutory Negotiating Union or Council bind the entire workforce under Section 54.