HC: Banks can’t have a say on staff union membership
TNN | Jan 19, 2020, 04.04 AM IST
Chennai: The Madras high court has made it clear that the right to admit a nationalised bank employee as a member of a particular union vests with the union concerned and that the bank has no say over it.
Justice K Ravichandrabaabu made the observation while modifying a circular issued by the Union finance ministry directing all the nationalised banks to facilitate auto deduction of membership subscription of employees’ unions from the salary of their staff.
Disposing of the pleas moved by Canara Bank Employees Union and Canara Bank Officers Association, the court said such banks cannot auto debit such subscription fee without the concurrence of the union/association concerned.
The issue pertains to a circular issued by the finance ministry dated November 25, 2019 to all nationalised banks regarding online facility for recording/modifying employee mandate for deduction of association membership subscription from salary.
Claiming that the circular is against the basic tenets of trade union rights to admit the members and regulate the same, the associations has approached the court seeking to quash the circular.
“By enabling auto admission of members by accepting their subscription fee automatically from their salary, the union concerned is deprived of its right to accept or reject membership of an individual applicant on valid grounds,” the petitioners said.
Responding to the plea, the finance ministry submitted that the ultimate deduction from the salary of an employee towards subscription of union is only at his/her written request and not at the request of the union.
Such request for deduction of subscription from salary was hitherto submitted in physical format which is now digitalised, and the employees are advised to submit the same through their office application. The said guidelines are only to align with the advent of technology and seamless movement of such request and for immediate implementation of such request of deduction of subscription and therefore, there is no violation of any legal right of the petitioner, the ministry said.
TNN | Jan 19, 2020, 04.04 AM IST
Chennai: The Madras high court has made it clear that the right to admit a nationalised bank employee as a member of a particular union vests with the union concerned and that the bank has no say over it.
Justice K Ravichandrabaabu made the observation while modifying a circular issued by the Union finance ministry directing all the nationalised banks to facilitate auto deduction of membership subscription of employees’ unions from the salary of their staff.
Disposing of the pleas moved by Canara Bank Employees Union and Canara Bank Officers Association, the court said such banks cannot auto debit such subscription fee without the concurrence of the union/association concerned.
The issue pertains to a circular issued by the finance ministry dated November 25, 2019 to all nationalised banks regarding online facility for recording/modifying employee mandate for deduction of association membership subscription from salary.
Claiming that the circular is against the basic tenets of trade union rights to admit the members and regulate the same, the associations has approached the court seeking to quash the circular.
“By enabling auto admission of members by accepting their subscription fee automatically from their salary, the union concerned is deprived of its right to accept or reject membership of an individual applicant on valid grounds,” the petitioners said.
Responding to the plea, the finance ministry submitted that the ultimate deduction from the salary of an employee towards subscription of union is only at his/her written request and not at the request of the union.
Such request for deduction of subscription from salary was hitherto submitted in physical format which is now digitalised, and the employees are advised to submit the same through their office application. The said guidelines are only to align with the advent of technology and seamless movement of such request and for immediate implementation of such request of deduction of subscription and therefore, there is no violation of any legal right of the petitioner, the ministry said.
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