QAISAR KHAN (CHAIRMAN).-The admitted facts of this case are as follows :- Sui Northern Gas Pipelines Limited is a Corporation with its headquarter at Lahore dealing with production and sale of gas. An industry-wise Trade Union by the name of "Sui Northern Gas 'Pipelines Employees Union" was registered in the organization with N. I. R. C. in 1973. Another local Trade Union for Lahore Branch had also been registered with the Provincial Registrar. Another industry-wise Trade Union by the name of "Sui Northern Gas Workers Union" was formed and it applied to the N. I. R. C. for registration on 16-1-1976. During the pendency of this application the Lahore Union got itself dissolved and its registration was cancelled by the Registrar on 6-2-1976. In the meantime, however, another Local Union for Rawalpindi Region was formed and it applied for registration on 6-5-1976 to the Regional Registrar of the Province and was registered on 11-5-1976.
2. In connection with the registration of Sui Northern Gas Workers Union an objection has been raised to the effect that it could not be registered as the number of workers forming it was less than 1/5th of the total number of workers of the organization. Reliance for this has been placed on section 7(2;(b), I. R. O. on the ground that 2 registered Trade Unions already existed in the organization. The case was dealt with by Mr. Kazi Masud Afzal Khan, Member as Registrar and he referred it to me for constituting a larger bench for giving a decision as to whether under the circumstances the petitioner-Union was bound to show 1/5th membership or not. I, therefore, constituted a Full Bench consisting of all the whole --time Members of the Commission to act as Registrar for decision of this point so that conflicting decisions by the Members in such like cases could be avoided for the future.
3. Messrs M. Bilal and Khawaja Akhtar Ali, Advocates for the applicant-Union, Mr. Aftab Ahmad Khan, Advocate for the Management and Mr. Asadullah Siddiqui, Advocate for the Sui Northern Gas Pipelines Employees' Union were heard at length.
4. In this connection the application of clause (b) of subsection (2) of section 7 is involved. But before the application of this clause is considered, the following terms used in it need clarification and when the true meanings of these terms is ascertained then there will be no difficulty in applying the clause to any particular case
(i) Establishment.
(ii) Group of Establishments.
(iii) Registered Trade Union.
The term "establishment" is defined in section 2(ix) I. R. O. but the term "group of establishments" has not been defined in the I. R. O. The definition of the term "establishment" given in section Aix) of the I. R. O. runs as follows :- "'Establishment' means any office, firm, industrial unit, undertaking, shop or premises in which workmen are employed for the purpose of carrying on any industry and except in section 22-BE, includes a Collective Bargaining Unit, if any, constituted under that section in any establishment or group of establishments."
The common meaning which is generally attached to this definition is that every branch of an organization is called an establishment and any number of branches taken together is called a "group of establishments". This can best be illustrated by a specific example. Habib Bank Limited is an organization having hundreds of branches all over Pakistan. Each branch, according to the common meaning, is taken as an establishment and any two or more branches taken together is taken as "group of establishments". This, however, does not stand to reason because when it is asked in this connection as to what is Habib Bank Limited it is again said that it is an establishment as it cannot be urged that it is an industry or a business because the industry or business is "BANKING" and not Habib Bank Ltd. When again in this connection it is asked as to how many groups of establishments are there in Habib Bank Ltd. then again the question is not answered because any two branches taken together is called a group and the said two branches taken together with a third is also called a group and in this way there can be infinite number of groups of establishments which is ridiculous. Similarly, examples can be given of gas industry, oil Industry etc. There are many Gas Companies and Oil Companies supplying gas and oil and each company has branches all over Pakistan.
6. If the aforesaid common meaning assigned to the word "establishment" is taken as correct then it would lead to absurd consequences so far as Trade Unions are concerned and the very object of the Industrial Relations Ordinance so far as Trade Unions are concerned would be defeated. In that case, in every branch there would be the possibility of, four or five Trade Unions and similarly, in every group in a Province there would be the further possibility of four or five Trade Unions and there could be infinite number of groups by joining different branches together. In the same way there could also be an infinite number of industry-wise Trade Unions, and what would happen if most of the office-bearers or members of a Union are transferred from one branch to another. It would also be impossible in that case to determine a C.B.A. because some of the Trade Unions would be for some branches (called establishments) and some of the same with a few others. This was certainly neither the object of the Industrial Relations Ordinance nor the intention of the Legislature.
7. An inkling to the correct meaning of the term "establishment" has been given in the last two sentences of the definition itself when it says that it includes C.B.U., if any, constituted under section 22-EE of I.R.O. in an esta--blishment or group of establishments. This clearly shows that C.B.U. is to be constituted in an establishment or group of establishments which in turn shows that no C.B.U. could be constituted in a branch of an organization (establishment). Section 22-EE of the I. R. O. clearly lays down that C. B. U. could be constituted only in an establishment or group of establishments of the same industry and this clearly negatives the general meaning commonly given in the term "establishment" because no C.B.U. could be formed in a branch of an organization (establishment). For example, how can a C.B.U. be formed in the Abpara Branch of the National Bank of Pakistan. A further inkling to the correct meaning of the terra "establishment" is given in the proviso to subsection (2) of section 22, I. R. O. which runs as follows :- "Provided that the Registrar may, in the case of a large establishment having its branches in more than one town hold the secret ballot within thirty days from the making of the application."
This also clearly shows that the branches in various towns are to be those an-establishment and these by themselves cannot be establishments. A close perusal of the definition of term "Employer" under section 2 of the I. R. U. also leads to the conclusion that establishment means the whole organization and not its various branches at various places. The definition of employer refers to incorporation and non-incorporation in relation to an establishment and incorporation and non- incorporation can only be of the whole organization and not of its various branches. Furthermore, in relation to an establishment run by or under the authority of the Government the employer is to be the authority appointed in that behalf or the head of the Department. The authority or head of the department can only be for the whole organization and not for its various branches. For example, in the Telegraph and Telephone Department the employer is to be the Head of the Department or any authority appointed in that behalf. But the authority or the Head can only be for the Department and not for its various branches in different towns. The Telephone and Telegraph Department is, therefore, to be taken as an establishment and not each of its branches in different towns.
8. Section 3(a) recently added to the I. R. O. shows that the whole organization of P. I. A. was an establishment and that P. I. A. did not consist of establishments. It may be mentioned here that there were only industry-wise Trade Unions in the P. I. A. and rightly no local Unions. Section 15(1) of the I. R. O. read with Standing Order I i-A also shows that the branches of an organization could not be establishments and that the whole of the organization was to be taken as an establishment. For example, if the National Bank of Pakistan closes its branch at the Super Market, Islamabad then how can it be said that the whole establishment has been closed down. If the branch is taken as an- establishment then who will be the employer to ask for the closure of the whole branch (called `establishment'). A branch does not have any such authority (Employer) who can approach the Labour Court for the closure. Sections 24 and 25 of the I. R. O. read to--gether also show that an establishment means the whole organization and not its various branches for if branches of an organization are taken as 'establish--ments' then it would lead to absurd results. Habib Bank Ltd. has hundreds of branches in Pakistan and how could there be hundreds of Work Councils in the said organization and how could then they perform their function. There can only be one Work Council in the organization of Habib Bank Ltd. and Habib Bang Ltd. as a whole was, therefore, to be taken as an establishment and not its various branches. A mire perusal of section 25, I. R. O. also shows that an organization as a whole was to be taken as an establishment and not its various branches because conciliators are never appointed by the Government for the various branches of an organization.
9. Reading together, all the provisions of the I. R. O. mentioned above clearly shows that the term 'establishment' means the whole organization which carries on any business or industry and not its branches at various places. The definition or interpretation of the term 'establishment' also fits in with the ordinary meaning of the term 'group of establishments'. Thai correct meaning of the term 'group of establishments' can best oe understood by giving specific examples. In the Banking Industry-, for example, there are many establishments like the National Bank of Pakistan, Habib Bank Limited, United Bank Limited and Muslim Commercial Bank Ltd. etc. and all these establishments taken together form a group of establishments belonging to the same industry.
Gas extraction is an industry and Sui Northern Gas Pipelines Ltd., Indus Gas Ltd. and Karachi Gas Ltd. are establishments for carrying on the industry and all these establishments taken together form a group of establishments belonging to the same industry. Similarly, supply and distribution of petroleum is an industry which is carried on by a number of establishments like Pakistan National Oils, Pakistan Burmah Shell Ltd. Premier, Dawood Petroleum and Esso etc. and all these establishments taken together form a group of establishments belonging to the same industry.
10. So far is registered Trade Union is concerned, the definition of Trade Union given in section 2(xxvi), I. R. O. read with section thereof shows that any number of workers can join together without any restriction to form a Trade Union. But then sections 6, 7, 13 and 22 of the I. R. O. show that some restrictions have been imposed on the registration of Trade Unions. According to section 6(iv-a), a Trade Union should relate to an establishment or group of establishments and the names of the registered Trade Unions in the establishment or group of establishments are also to be given. This clearly shown that a Trade Union is to be registered for an establishment or group of establishments. Similarly, clauses 1(d) and 2(d) of section 7, I. R. O. also show that Trade Unions are to be registered for an establishment or group of establishments. Section 13, clause (c) also shows that registrations are to he for an establishment or group of establishments. Similarly, section 22, I.
R. O. also lays down that the registered Trade Unions are to be in an establishment or group of establishments.
In this view of the matter taking into consideration my interpretation of; the, term "establishment" and group of "establishments" no Trade Union, can be registered for a branch of an establishment and if an establishment has branches extending beyond one province then all the Trade Unions in that establishment ate to be registered as industry-wise Trade Unions with N. I. R. C. and no Trade Union could be registered for any branch at the provincial level.
11. The above view is re-in forced by provision of section 22, I. R. O. according to which a C. B. A. is to be for an establishment or group of establishments. Furthermore C.B.A. is to take collective bargaining for the whole of the establishment; to represent all its workers and to nominate representatives fear certain Boards of the establishment which duty cannot be performed by a C.
B. A. in a particular branch of the establishment. There cannot therefore, be either a registered Trade Union car a C. B. A. for a branch of an establishment. The necessary corollary of this would be that the Provincial Registrar would have to jurisdiction to register a Trade Union for an establishment or group of establishments whose branches extend beyond his jurisdiction. The seems reasonable also for otherwise great confusion would arise and the object of the Ordinance would be defeated.
12. If the Provincial' Registrars are held competent to register local unions in establishments whose branches extend beyond one province then how would a C. B. A. be determined and by whom. The National Industrial Relations Commission would not have jurisdiction to hold referendum because it can only determine a C. B. A. among industry-wise Trade Unions and a Provincial Registrar would not have jurisdiction to hold referendum because he cannot deal with an industry-wise Trade Union. Furthermore, how can a local union compete in referendum within an industry-wise Trade Union. The question of the splitting of the members of an industry-wise Trade Union for referendum with local Union does not arise because a Union cannot be split under any provisions of the I. R. O. either by the Provincial Registrar or the N. I. R. C. Besides, local unions might have been registered with all the Provincial Registrars and in that case which Provincial Registrar will have the jurisdiction to hold a referendum.
13. In view of my interpretation of the three terms viz., 'establishment', 'group of establishments' and 'registered Trade Union' the decision of the, present case becomes very simple. The Sui Northern Gas Pipelines Limited is an establishment having branches all over Pakistan. Under the circumstances, a locally registered Trade Union is to be considered by the N. I. R. C. as non-existent.
There is thus left only one Trade Union in the establishment and the petitioner is, therefore, not bound to show 1/5th membership of the total membership of the establishment and cannot be refused registration on that account.
MAMOON A. KAZI (MEMBER).--[8-9-1976]- The applicant-Union applied for registration as an industry-wise Trade Union representing various branches of the Organization known as "Sui Northern Gas Pipelines Limited", on 16th January 1976. The total membership claimed by the Union was 630 out of a total of 2796 workers, but the enquiry made by the Deputy Registrar of this Commission revealed that the total membership of the Union was only 507 workers. Before the application for registration was filed by the applicant-Union there already was one more industry- wise Trade Union registered with the Commission, namely, "Sui Northern Gas Pipelines Workers Union". While the application of the applicant-Union was pending for further action, another Union, though at a local level, got itself registered with the Registrar, Trade Unions, Rawalpindi Region, on 11th May 1976.
2. It so happened, that during this time Labour Laws (Amendment) Act, 1976, came into force, substituting a new subsection (2) in place of the former in section 7 of the I. R. O., which provided 3- "(2) without prejudice to the provisions of subsection (1), a Trade Union of workmen shall not be entitled to registration under the Ordinance
(a) unless all its members are workmen actually engaged or employed in the industry with which the Trade Union is connected ; and
(b) where there are two or more registered Trade Unions in the establish--ment, group of establishments or industry with which the Trade Union is connected, unless it ha- as its members not less than one-fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the case may be."
Thus according to clause (b) above, if there are registered two or more Trade Unions fn an establishment, group of establishments or Industry, another Trade Union connected with either of them cannot be-registered by the Registrar, unless it has as its members rot less than one-fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the case may be. Sui Northern Gas Pipelines being a large organization with branches scattered all over the country, question arises, whether restrictions imposed on registration, as envisaged above, would apply to the said organization as a whole or merely to a particular branch of group of such branches thereof, as the case may be; because in case the restrictions apply with reference to the whole of the Organization, then in that case, the applicant-Union would not be entitled to registration as its membership falls short of the minimum one-fifth prescribed by clause
(b) of section i 12' of the I. R. O., there being two Trade Unions already registered within the same organization. As the matter is of great importance, it has now been referred to this Bench for determination.
3. Much depends upon the interpretation of the expressions, "establishment", "group of establishments" and "industry" referred to in clause (b) of subsection (2) of section 7 of the I. R. O.
"Establishment" according to section 2, clause (ix) of the I. R. O. means "any office, firm, industrial unit, undertaking, shop or premises in which workmen are employed for the purpose of carrying on any industry; and except in section 22-EE, includes a Collective Bargaining Unit, if any constituted under that section in any establishment or group of establishments". The words "any office, firm, industrial unit, undertaking, shop or premises in which workmen are employed" are wide enough to include even a branch of a big organization. That means that for carrying on an industry, if the employer has different branches working at different places, each one of them individually can be called an "establishment". This gets further support from a Division Bench Decision of the High Court of Sind & Baluchistan in Muhammad Aqil v. Chairman, Sind Labour Appellate Tribunal and another
(1) wherein the following observations of Fakhruddin G. Ebrahim, J. at paragraph 7, are of material importance: "7. From the aforesaid definition it would appear that an employer may have more than one establishment, for example, offices in a commercial area, shops in a business area, or one or more industrial units in an industrial area and the expression "establishment" would include not whole of the establishment of an employer but each of them individually. That an employer, may have more than one establishment for carrying on his industry or for the purpose of his industry is clearly envisaged by provisions contained in the then section 22-A of the Industrial Relations Ordinance, 1969, reproduced hereunder: 22-A. Collective Bargaining Agent for institutions with more than one establishment.-(1) Where an employer carrying on an industry has, for the, purpose of that industry, more establishments than one, any registered Trade Union which fulfils such conditions as may be prescribed in this behalf may make an application in such manner and to such authority as may be prescribed for being declared as the Collective Bargaining Agent in relation to all such establishments and, upon such an application, there shall be determined in the prescribed mariner a Collective Bargaining Agent for such establish--ments.
(2) Where a Collective Bargaining Agent has been determined under subsection (1) for the establishments referred to therein, the Collective Bargaining Agent determined, if any, under section 22 for any one or more of such establishments shall not undertake collective bargaining in respect of matters relating to the terms and conditions of employment applicable to workmen employed in any of such establishments.
It will, therefore, follow that there is no substance in the contention that a person to come within the definition of employer, as defined in the Industrial Relations Ordinance, has to be incharge, supervision of or running the whole of the establishment of the employer for he may as well be, as in the present case, in charge of a part of the "establishment". If that is the meaning given to the expression "establishment", then "group of establishments" would include .any number of such establishments joined in a group. Coming next to the expression "industry", it has been defined by clause (xiv) of section 2 (1) 1974 PLC 194 of the I. R. O. as "any business, trade manufacture, calling, service, employment or occupation". The words such as "business", "trade", or "manufacture" referred to in the above definition are wide enough to include even more than one Organization, either under the same employer or under different employers. The definition of "industry" therefore carries a much wider import than the other two expressions vie. "establishment" or "group of establishments."
4. Now, when clause (b) of section 7 of the I. R. O. is subjected to further examination, the restrictions with regard to one-fifth membership can apply to any Trade Union, relating either (i) to one or more Organi--zations, (ii) to any of the branches, of a big Organizations, or (tit) to any group of such branches, depending upon the circumstances of each case. In that case, all that is to be seen is, with which one of the above the Trade Union seeking registration is connected, and the restrictions referred to in clause (b) will apply to that establishment, group of establishments or industry, as the case may be. The words, "establishment, group of establish--ments or industry" at the beginning of clause (b) are plainly disjunctive and the words, "in such establishment, group of establishments or industry, as the case may be", appearing at the end of the said clause clearly show that the restrictions imposed by that clause apply only within a particular sphere and not generally to the whole of the Organization.
5. Coming to the present case, there is only one industry-wise Trade Union which already stands registered with this Commission, namely, "Sui Northern Gas Pipelines Employees Union". There is also a second Union, but it is of a local nature confined only to an establishment or establish-- ments within Rawalpindi Region. I am therefore very clear in my mind that the restrictions imposed by clause (b) of section 7 (2) of the I. R. O. do not apply to the applicant- Union, as there is only one other industry-wise Trade Union connected with the group of establishments to which the applicant-Union relates.
6. Lastly, one other argument was advanced, in the alternative, by Mr. M. Bilal the learned counsel appearing for the applicant-Union and that was, that the position with regard to the membership of a union is to be ascertained at the time, the application for registration is received, because in the present case the second Union which is registered with the Registrar, Trade Union, Rawalpindi, had applied to the latter much alter the application for registration was filed before the Commission by the applicant-Union. Mr. Bilal also pointed out, with some stress, that according to section 8 of the I. R. O., if the application for registration of a union is found deficient in a material respect, the objections are to be communicated by the Registrar to the Union applying for registration within fifteen days from the date of receipt of the application, and then the Union has to meet them within fifteen days. When the objections are satisfactorily met the Registrar has to issue a Registration Certificate within three days from the date of the objections having been so met. According to Mr. Bilal although the objections in the present case were satisfactorily met by the applicant-Union, still the Commission failed to issue Registration Certificate within the prescribed time, with the result that the second- Union in the meanwhile got itself registered with the Registrar, Trade Unions, Rawalpindi. The learned counsel therefore argued that the applicant- Union should not be penalised as it was itself not at fault. The question raised no doubt is material, but since I have already held that the applicant-Union is entitled to registration and the restrictions imposed by section 7, subsection (2), clause (b) of the I. R. O. are not applicable in the present case, going into that question at this stage will not be necessary.
BASHER AHMAD MALIK. (MEMBER).-[8-9-1976] I agree with the views expressed by the learned Senior Member.
FARHAT ALI KHAN (MEMBER).-[9-9-1976] The question before us at the moment, is whether the applicant-Union, under the prevailing conditions and existing law, should or should not be registered by the Commission.
2. Facts of the case with brevity and law of considerable magnitude, have already been discussed at length by my learned brother, Mamoon A. 1Kazi (Senior Member) and therefore it would be futile to delve on it.
3. It is the admitted position that before the applicant-Union applied for registration, another industry-wise Trade Union was already registered with the Commission under the name and style of "Sui Northern Gas Pipelines Employees Union", and it was during the pendency of application for registration by the applicant-Union that on the fateful day of 11th May 1976, another Union got itself registered at a local level in Rawalpindi. It is thus clear that two Trade Unions, one as an industry- wise and the other at a local level existed on the day when the present case came up before this Bench of the Commission.
4. A cursory reading of section 7 (2) (a) and (b) of the I. R. O., 1969, clearly shows that conditions precedent for registration of a Trade Union are that (1) all its workmen are workmen actually engaged or employed in the industry with which the Trade Union is connected and where there are two or more registered Trade Unions in the establishment, group of establishments or industry with which the Trade Union is connected, it should have as its members not less than one-fifth of the total members of workmen employed in such establishment, group of establishments o industry, as the case may be. Nowhere in subsection 2 (b) of section 7 of the I. R O. 1969, has been provided that what should be the determined status of the said "two or more registered Trade Unions". What it in plain terms speaks is simply "two or more registered Trade Unions". irrespective of the fact whether they are registered as industry-wise or on local level, as Trade Unions.
It, therefore, necessarily follows that the applicant-Union is the third---one seeking registration and if it is so, then unless all the necessary ingredients of section 7 (2) (a) and (b) are fulfilled, registration cannot be granted. There seems to be no dispute with regard to the fulfilment of condition as contained in sub-clause (a) of subsection (2) of section 7 of the I. R. O., but with regard to the fulfilment of condition of having not less than one-fifth of the total members of workers as its members: there is a positive finding in an enquiry conducted by the Deputy Registrar of the Commission, that it does not possess a membership of not less than one-fifth of the total number of all its members. In my view of the matter, provisions of section 7 (2) (b) are attracted to the facts of the case and unless in all measures, the requirements of law are followed with strict adherence, the applicant-Union is not entitled to registration because consensus of judicial preponderance, both home and abroad, of the Superior Courts has been to interpret and apply law in its existing remonstrative perspective, where no ambeguity exists in the wordings of the provision, as the present case is.
6.The whole matter is to be examined by the Bench with regard to facts and law obtaining and existing on the day of hearing arguments because the certificate, if any, is yet to be issued and therefore submitting indirectly that in point of titre, the applicant-Union was only the second one to nave applied for registration and that it was only due to the slackness of the office of Registrar of the Commission which hindered issuance of the requisite certificate, is of no avail to the applicant- Union. The latter cannot b9 said to have been ignorant of its rights for the vindication of which certainly remedies were available to the applicant-Union, if it felt aggrieved of any act of the Registrar's Office.
7. In my view of the case, the applicant-Union is not entitled to registration, unless, as observed earlier, all legal al requirements are strictly adhered to.
S. RAIS AHMED JAFRI (MBMBER)---[8-9-1976] The admitted facts in the case are as under t
(1) The applicant-Union is an industry-wise Trade Union.
(2) At the time when the applicant-Union applied for registration, there were two Unions
(a) The objecting Union which was earlier registered with the Commission and is an industry-wise Trade Union ;
(b) A local Union registered at Lahore with the Registrar, Trade Unions, Lahore.
(3) The Lahore Union was dissolved and cancelled during the pendency of the registration of the applicant-Union.
(4) Another Union was registered with the Registrar, Trade Unions, Rawalpindi, after some time during the pendency of the registration of the applicant-Union.
The objecting Union namely Sui Northern Gas Pipelines Employees' Union has alleged that provisions of section 7 (2) (b) of the Industrial Relations Ordinance, 1969 are attracted and that the applicant-Union should prove that it has as its members not less than one-fifth of the total number of workmen employed in the establishment of the Sui Northern Gas Pipelines. The main ground taken by the objecting Union is that two registered Trade Unions already exist in the Organization, and that the applicant-Union being third Union should prove 1/5th membership.
The contention of the applicant-Union is two-fold:-
(1) The Lahore Union was cancelled and before the Rawalpindi Union was registered there was a period when there was only one Union and it should have been registered.
(2) As the applicant-Union is an industry-wise Trade Union, the existence of local Unions whether be it the Lahore Union or Rawalpindi Union does not bring it within the mischief of the provisions of section (7) (2) (7) of the Ordinance.
During arguments, the definition of the term "Establishment" also came under discus+)n. One view was Messrs Sui Northern Gas Pipelines is one whole establishment and its branches or oibces do not constitute separate establishments I hold the contrary view and have discussed the reasons of holding this view in detail in Case No. 2 (15)/76. I have also expressed my opinion that a Trade Union for a part of establishment can be registered except in the case when a separate Collective Bargaining Unit has been certified under section 22-EE of the Ordinance. That being the position, there already exist two Unions, viz. the Rawalpindi Union and the objecting Union. The applicant- Union therefore would have to prove 1/Sth membership before it can claim registration.
I am also of view that provisions of section 7 (2) (b) should be strictly construed otherwise the very purpose of reducing the multiplicity of Trade Unions would be defeated. The words "as the case may be" appearing at the end of clause (b) of subsection (2) of the section 7 of the Ordinance qualify the establishment or group of establishments or the industry. Since the applicant-Union claims membership in the establishment of Rawalpindi where already a Union exists, the applicant-Union becomes the third Union. If the applicant-Union did not claim membership in Rawalpindi establish--ment, then in that case the provisions of section 7 (2) (b) would not be attracted. In my opinion the words "as the case may be" qualify the condition of 1/5th membership and not the Unions. In other words if the third Union pertains to one establishment it has to prove that it has as its members not less than 1/5th of the total number of workmen employed in that establishment; if it pertains to a group of establishments then 1/Sth member--ship out of total number of workmen employed in that particular group of establishments and if it pertains to industry then 1/5th number of the entire industry; as the case may be. Even if there is one local and one industry---wise Trade Unions, or again if there rare two local Unions, the third Union must fulfil the condition of section 7 (2) (b) of the Ordinance. The words "as the case may be" are related to the word "Trade Union" used in subsection (2) of section 7 of the Ordinance.
I, therefore, on the reasons mentioned above hold that the applicant. Union has to prove that it has 1/5th membership of the total workers employed in only those establishments to which it relates and not out of total employment in the Sui Northern Gas Pipelines Limited before it can be registered.
KAZI MASUD AFZAL KHAN (MEMBER).-[7-9-1976]. In the above-cited case my findings are already on record. I have not been able to find any grounds from the arguments of the parties before the Full Commission on the 17th August 1976, to change my findings.
Accordingly I hold that the applicant-Union is not required to fulfil the requirements of subsection (2)(b), of section 7, of the Industrial Relations Ordinance, 1969. It would be entitled to registration if it removes other deficiencies lately brought to. attention by the Deputy Registrar of the Commission, which had not been previously notified to the applicant-Union within prescribed period.
Findings of Mr. Kazi Masud Afzal Khan referred to in para.I of his Judgment dated: 7-9-1976.
[22-7-1976]. The Sui Northern Gas Pipelines Workers' Union applied for its registration on the 16th January 1976, as an industry-wise Trade Union of the workmen employed in the Company, called the Sui Northern Gas Pipelines Limited, Head Office Lahore. It had claimed the membership of 630 workers till that date, viz. the 16th January 1976, against the total number of 2796 workmen employed in the said Company.
At the time, there already existed a registered industry-wise Trade Union of workmen of Sui Northern Gas Pipelines Limited, in the name of Sui Northern Gas Pipelines Employees' Union, while a Union of the officers of the Company was also registered as the employer's association.
While the application of the Workers' Union for registration as an industry-wise Trade Union was pending with the National Industrial Relations Commission, a local Union of the Company's workmen employed at Rawalpindi applied for registration to the local Registrar of Trade Unions, of the Rawalpindi Region, on the 6th May, 1976, and secured its registration on the 11th May 1976.
4. As it so happened, the Industrial Relations Ordinance was amended through the Labour Laws (Amendment) Ordinance, 1975, providing in section 7, subsection (2), a new clause (b) that "a Trade Union is not entitled to registration where there are two or mare registered Trade Unions in the establishment, group pr establish--ments or industry with which the Trade Union is connected, unless it hits as its members not less than one fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the case may be".
5. On the basis of this amendment, the Sui Northern Gas Pipelines Employees' Union objected to the registration of the Workers' Union, claiming that much of its membership was not genuine, and that in any case it did not fulfil the requisite qualification of one-fifth membership. It also produced a number of affidavits and applications renouncing membership of the Workers Union.
6. The Deputy Registrar of the Commission was deputed to hold an inquiry into the allegations of the Employees' Union, and to verify the membership of the applicant-Union (Workers' Union).
Taking into consideration all the affidavits and applications filed by the Employees' Union, the Deputy Registrar has come to the conclusion that the applicant-Union is left with a membership of 507, out of the total number of 2796 workmen employed in the Sui Northern Gas Pipelines Limited.
This membership figure of the Workers Union is not within 1/5th of the total number of work--men employed in the Company.
7. The learned counsel for the Workers Union has pointed out that the dissident members of the Union have not made any complaint direct to the Commission or before the Inquiry Officer, but the complainant-Union (Employees' Union) has procured their objections and presented them to the Commission. He contends that there are two allegations in these applications, viz.: (i) they were duped by the Workers'-Union to sign its membership forms; and (ii) that their signatures are forged. The learned counsel pointed out that the former allegation is vague because the manner in which they were duped is not explained, and that the Inquiry Officer has not investigated into the other allegation of forgery of signatures. He has urged that these applications have been prepared under duress, and has In this regard drawn attention to acts of victimization of leaders of the applicant-Union at the management's hand, about which a complaint is slated to be before the Chairman, N. I. R. C. It was further argued that, in any case, those who now allege to have been duped by the Workers' Union have thereby confessed that they did become members of the new Union, and thus they cannot at a later stage be deleted from the membership of the Union on any general or vague accusation. The learned counsel for the Workers' Union has questioned the allegation of forged signatures also.
8. The parties had ample opportunity to present their point of view before the Inquiry Officer, and they have not alleged that they were refused this opportunity. This is not the stage to agitate their allegations, and I have no reasons to doubt the bona fides of the proceedings conducted by the Inquiry Officer. At the same time, I have no option but to agree with the findings of the inquiry Officer that the applicant-Union does not fulfil the requirements of clause (b) of section 7 (2) of the Industrial Relations Ordinance.
9. As for the effect of registration of Sui Northern Gas Mazdoor Union, Rawalpindi (representing the workers employed only in the Rawalpindi establishment) on the application of the Workers Union for registration as industry-wise Trade Union, we will have to revert to clause (b), of subsection (2), of section 7, of the Industrial Relations Ordinance, reproduced in paragraph 4 ante. A plain reading would show that if there are already in existence "two or more registered Trade Unions"-
(i) in the establishment,
(ii) in the group of establishments, or
(iii) in the industry, with which the Trade Union is connected, then another Trade Union is entitled to registration only if its membership is not less than 1/5th of the total number of workmen employed-
(i) in such establishment,
(ii) in such group of establishments,
(iii) in such industry, as the case may be. The term "as the case may be" can only be assigned the meaning of "respectively". The use of the adjective 'such' followed by the term 'as the case may be', in conjunction with article "the" in principal clause of the sentence has qualified the relationship between the Union and the respective establishment, or group of establishments, or the industry, with either of which the Trade Union is connected.
10. In my view, the result would be that if there were already in existence two or more registered Trade Unions in the Rawalpindi establish--ment of the Company, and the 1Vorkers Union had applied for registration within the local limits of Rawalpindi only, the provisions of clause (b) ibid would be attracted. In this context, tee local Trade Union connected with the establishment of the Company in Rawalpindi has no locus standi vis-a-vis the Trade Union connected with the "collectivity of the establishments of the Company".
11. On the other band, there are already in existence two industry-wise registered Trade Unions for the "group of establishment" of the Sui Northern Gas Pipelines Limited, viz, the Employees' Union as an industry---wise Trade Union of workmen employed throughout all the establishments of the Company, and the Sui Northern Executive Officers Association registered as employers Union under the Industrial Relations Ordinance. The provisions of clause (b), of section 7 (2) ibid, relate to the "Trade Union of workmen" only because it specifically refers to membership of not less than 1/5th of the total number of "workmen employed in such establishment, stoup of establishments or industry, as the cave may be". There being only one registered industry-wise Trade Union of workmen in this "group of establishment", the restraints of clause (b) ibid are not attracted.
12. Since, however, the law is not very clear on this point, I wanted to know if there was any precedent. The inquiries have revealed that a similar point of law was involved in the case of registration of the Pakistan Telecommunication Line Staff Union. Punjab, Lahore. On a perusal of this file, I find that the learned Chairman had raised following querry--- "Has the Commission given any decision in any such case previously? The point is not very much clear. Supposing there are two or three Trade Unions in this industry registered with the Provincial Registrar, then what will be the position? Whether 1/5th clause will apply or not? Office should report if there is any precedent before an order is passed."
As a result, the Pakistan Telecommunication Line Stall' Union, Punjab was called upon to prove that it had one-fifth membership. Since the Union declined to adduce the required evidence, the registration application was rejected. It is evident that the learned Chairman is of the view that in case there are two or more registered Trade Unions at the Provincial level, the third industry-wise Union is subjected to the provisions of section 7 (? j (b).
13. The decision of the learned Chairman is contrary to my above views. Obviously, it is necessary to avoid a conflicting decision. It is suggested that a larger Bench be constituted for disposal of titre case.
ORDER OF THE COURT The order of the full Court acting as Registrar in this case, therefore, is that the petitioner-Union can be registered as industry-wise Trade Union without being required to show 1/5th membership of the whole of the organization (establishment).