INDUSTRIAL

LAW

TRADE UNION

By:
Shivani Vyas
F.Y.BMS - B
Roll No - 117
 INTRODUCTION

A trade union is an organization of employees formed on a continuous basis for

the purpose of securing diverse range of benefits. It is a continuous association
of wage earners for the purpose of maintaining and improving the conditions of
their working lives.

The Trade Union Act 1926 defines a trade union as a combination, whether
temporary or permanent, formed primarily for the purpose of regulating the
relations between workmen and employers or between workmen and workmen,
or between employers and employers, or for imposing restrictive condition on
the conduct of any trade or business, and includes any federation of two or more
trade unions.

This definition is very exhaustive as it includes associations of both the workers

and employers and the federations of their associations. Here, the relationships
that have been talked about are both temporary and permanent. This means it
applies to temporary workers (or contractual employees) as well. Then this
definition, primarily, talks about three relationships. They are the relationships
between the:
• workmen and workmen,
• workmen and employers, and
• employers and employers.
Thus, a trade union can be seen as a group of employees in a particular sector,
whose aim is to negotiate with employers over pay, job security, working hours,
etc, using the collective power of its members. In general, a union is there to
represent the interests of its members, and may even engage in political activity
where legislation affects their members. Trade unions are voluntary associations
formed for the pursuit of protecting the common interests of its members and
also promote welfare. They protect the economic, political and social interests of
their members.

Features of trade unions:

1. It is an association either of employers or employees or of independent
workers. They may consist of :-

○ Employers’ association (eg., Employer’s Federation of India, Indian

paper mill association, etc.)
○ General labour unions
 ○ Friendly societies
○ Unions of intellectual labour (e.g. All India Teachers Association)
1. It is formed on a continuous basis. It is a permanent body and not a casual
or temporary one. They persist throughout the year.
2. It is formed to protect and promote all kinds of interests –economic,
political and social-of its members. The dominant interest with which a
union is concerned is, however, economic.
3. It achieves its objectives through collective action and group effort.
Negotiations and collective bargaining are the tools for accomplishing
objectives.
4. Trade unions have shown remarkable progress since their inception;
moreover, the character of trade unions has also been changing. In spite
of only focusing on the economic benefits of workers, the trade unions are
also working towards raising the status of labours as a part of industry.

ORIGIN
The trade unionism in India developed quite slowly as compared to the western
nations. Indian trade union movement can be divided into three phases.

The first phase (1850 to1900).During this phase the inception of trade unions
took place. During this period, the working and living conditions of the labor were
poor and their working hours were long. Capitalists were only interested in their
productivity and profitability. In addition, the wages were also low and general
economic conditions were poor in industries. In order to regulate the working
hours and other service conditions of the Indian textile laborers, the Indian
Factories Act was enacted in 1881. As a result, employment of child labor was
prohibited.

The growth of trade union movement was slow in this phase and later on the
Indian Factory Act of 1881 was amended in 1891. Many strikes took place in the
two decades following 1880 in all industrial cities. These strikes taught workers
to understand the power of united action even though there was no union in real
terms. Small associations like Bombay Mill-Hands Association came up by this
time.

The second phase (1900 to 1946). This phase was characterized by the
development of organized trade unions and political movements of the working
class. Between 1918 and 1923, many unions came into existence in the country.
At Ahmadabad, under the guidance of Mahatma Gandhi, occupational unions like
spinners’ unions and weavers’ unions were formed. A strike was launched by
these unions under the leadership of Mahatma Gandhi who turned it into a
satyagrah. These unions federated into industrial union known as Textile Labor
Association in 1920.In 1920, the First National Trade union organization (The All
India Trade Union Congress (AITUC)) was established. Many of the leaders of this
organization were leaders of the national Movement. In 1926, Trade union law
came up with the efforts of Mr. N N Joshi that became operative from 1927.
During 1928, All India Trade Union Federation (AITUF) was formed.
The third phase began with the emergence of independent India (in 1947). The
partition of country affected the trade union movement particularly Bengal and
Punjab. By 1949, four central trade union organizations were functioning in the
country:
1. The All India Trade Union Congress,
2. The Indian National Trade Union Congress,
3. The Hindu Mazdoor Sangh, and
4. The United Trade Union Congress
The working class movement was also politicized along the lines of political
parties. For instance Indian national trade Union Congress (INTUC) is the trade
union arm of the Congress Party. The AITUC is the trade union arm of the
Communist Party of India. Besides workers, white-collar employees, supervisors
and managers are also organized by the trade unions, as for example in the
Banking, Insurance and Petroleum industries.
Trade unions in India. The Indian workforce consists of 430 million workers,
growing 2% annually. The Indian labour markets consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce.
2. Organized sector, which employs 8 per cent of workforce, and
3. The urban informal sector (which includes the growing software industry
and other services, not included in the formal sector) which constitutes the
rest 32 per cent of the workforce.
At present there are twelve Central Trade Union Organizations in India:
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labour Organization (NLO)
10.Trade Unions Co-ordination Centre (TUCC)
11.United Trade Union Congress (UTUC) and
12.United Trade Union Congress - Lenin Sarani (UTUC - LS)

OBLECTIVES OF TRADE UNION

1. Trade unions are formed to protect and promote the interests of their
members. Their primary function is to protect the interests of workers
against discrimination and unfair labour practices. Trade unions are
formed to achieve the following objectives:
2. Representation - Trade unions represent individual workers when
they have a problem at work. If an employee feels he is being unfairly
treated, he can ask the union representative to help sort out the
 difficulty with the manager or employer. Unions also offer their
members legal representation. Normally this is to help people get
financial compensation for work-related injuries or to assist people
who have to take their employer to court.

3. Negotiation - Negotiation is where union representatives, discuss

with management, the issues which affect people working in an
organization. There may be a difference of opinion between
management and union members. Trade unions negotiate with the
employers to find out a solution to these differences. Pay, working
hours, holidays and changes to working practices are the sorts of
issues that are negotiated. In many workplaces there is a formal
agreement between the union and the company which states that
the union has the right to negotiate with the employer. In these
organizations, unions are said to be recognized for collective
bargaining purposes
4. Voice in decisions affecting workers - The economic security of
employees is determined not only by the level of wages and
duration of their employment, but also by the management’s
personal policies which include selection of employees for layoffs,
retrenchment, promotion and transfer. These policies directly affect
workers. The evaluation criteria for such decisions may not be fair.
So, the intervention of unions in such decision making is a way
through which workers can have their say in the decision making to
safeguard their interests.
5. Member services During the last few years, trade unions have
increased the range of services they offer their members. These
include:

1. Education and training - Most unions run training courses

for their members on employment rights, health and safety
and other issues. Some unions also help members who have
left school with little education by offering courses on basic
skills and courses leading to professional qualifications.
2. Legal assistance - As well as offering legal advice on
employment issues, some unions give help with personal
matters, like housing, wills and debt.
3. Financial discounts - People can get discounts on
mortgages, insurance and loans from unions.
4. Welfare benefits - One of the earliest functions of trade
unions was to look after members who hit hard times. Some
of the older unions offer financial help to their members when
they are sick or unemployed.

REGISTRATION OF TRADE UNION

1. Appointment of Registrars -The appropriate Government shall
appoint a person to be the Registrar of Trade Unions for each State. The
appropriate Government may appoint as many Additional and Deputy
Registrars of Trade Unions as it thinks fit for the purpose of exercising and
discharging, under the superintendence and direction of the Registrar,
such powers and functions of the Registrar under this Act as it may, by
order, specify and define the local limits within which any such Additional
or Deputy Registrar shall exercise and discharge the powers and functions
so specified. Subject to the provisions of any order under sub-section (2),
where an Additional or Deputy Registrar exercises and discharges the
powers and functions of a Registrar in an area within which the registered
office of a Trade Union is situated, the Additional or Deputy Registrar shall
be deemed to be the Registrar in relation to the Trade Union for the
purposes of this Act.

2. Mode of registration - Any seven or more members of a Trade Union

may, by subscribing their names to the rules of the Trade Union and by
otherwise complying with the provisions of this Act with respect to
registration, apply for registration of the Trade Union under this Act.

3. Application for registration - (1) Every application for registration of

a Trade Union shall be made to the Registrar, and shall be accompanied
by a copy of the rules of the Trade Union and a statement of the following
particulars, namely:--
(a)The names, occupations and addresses of the members making the
application;
(b) The name of the Trade Union and the address of its head office; and
(c) The titles, names, ages, addresses and occupations of the of the Trade
Union.
(2) Where a Trade Union has been in existence for more than one year
before the making of an application for its registration, there shall be
delivered to the Registrar, together with the application, a general
statement of the assets and liabilities of the Trade Union prepared in such
form and containing such particulars as may be prescribed.

4. Provisions to be contained in the rules of a Trade Union – A

Trade Union shall not be entitled to registration under this Act, unless the
executive thereof is constituted in accordance with the provisions of this
Act, and the rules thereof provide for the following matters, namely:--
(a) The name of the Trade Union;
(b) The whole of the objects for which the Trade Union has been
established;
(c) The whole of the purposes for which the general funds of the Trade
Union shall be applicable, all of which purposes shall be purposes to which
such funds are lawfully applicable under this Act;
(d) The maintenance of a list of the members of the Trade Union and
adequate facilities for the inspection thereof by the 1*[office-bearers] and
members of the
Trade Union;
(e) The admission of ordinary members who shall be persons actually
engaged or employed in an industry with which the Trade Union is
connected, and also the admission of the number of honorary or
temporary members as required under section 22 to form the executive of
the Trade Union;
(f) The conditions under which any member shall be entitled to any benefit
assured by the rules and under which any fine or forfeiture may be
imposed on the members;
(g) The manner in which the rules shall be amended, varied or rescinded;
(h) The manner in which the members of the executive and the other of
the Trade Union shall be appointed and removed;
(i) The safe custody of the funds of the Trade Union, an annual audit, in
such manner as may be prescribed, of the accounts thereof, and adequate
facilities for the inspection of the account books by and members of the
Trade Union; and
(j) the manner in which the Trade Union may be dissolved.

5. Power to call for further particulars and to require alteration of

name - (1) The Registrar may call for further information for the purpose
of satisfying himself that any application complies with the provisions of
section 5, or that the Trade Union is entitled to registration under section
6, and may refuse to register the Trade Union until such information is
supplied. (2) If the name under which a Trade Union is proposed to be
registered is identical with that by which any other existing Trade
Union has been registered or, in the opinion of the Registrar, so nearly
resembles such name as to be likely to deceive the public or the members
of either Trade Union, the Registrar shall require the persons applying for
registration to alter the name of the Trade Union stated in the application,
and shall refuse to register the Union until such alteration has been made.

6. Registration -The Registrar, on being satisfied that the Trade Union

has complied with all the requirements of this Act in regard to registration,
shall register the Trade Union by entering in a register, to be maintained in
such form as may be prescribed, the particulars relating to the Trade
Union contained in the statement accompanying the application for
registration.

7. Certificate of registration - The Registrar, on registering a Trade

Union under section 8, shall issue a certificate of registration in the
prescribed form which shall be conclusive evidence that the Trade Union
has been duly registered under this Act.

8. Cancellation of registration - A certificate of registration of a Trade

Union may be withdrawn or cancelled by the Registrar--
(a) on the application of the Trade Union to be verified in such manner as
may be prescribed, or
(b) if the Registrar is satisfied that the certificate has been obtained by
fraud or mistake, or that the Trade Union has ceased to exist or has
wilfully and after notice from the Registrar contravened any provision of
this Act or allowed any rule to continue in force which is inconsistent with
any such provision, or has rescinded any rule providing for any matter
provision for which is required by section 6: Provided that not less than
two months' previous notice in writing specifying the ground on which it is
proposed to withdraw or cancel the certificate shall be given by the
Registrar to the Trade Union before the certificate is withdrawn or
cancelled otherwise than on the application of the Trade Union.

9. Appeal - (1) Any person aggrieved by any refusal of the Registrar to

register a Trade Union or by the withdrawal or cancellation of a certificate
of registration may, within such period as may be prescribed, appeal,--
(a) where the head office of the Trade Union is situated within the limits of
a Presidency-town to the High Court, or
(b) where the head office is situated in any other area, to such Court, not
inferior to the Court of an additional or assistant Judge of a principal Civil
Court of original jurisdiction, as the appropriate Government may appoint
in this behalf for that area.
(2) The appellate Court may dismiss the appeal, or pass an order directing
the Registrar to register the Union and to issue a certificate of registration
under the provisions of section 9 or setting aside the order for withdrawal
or cancellation of the certificate, as the case may be, and the Registrar
shall comply with such order.
(3) For the purpose of an appeal under sub-section (1) an appellate Court
shall, so far as may be, follow the same procedure and have the same
powers as it follows and has when trying a suit under the Code of Civil
Procedure, 1908 (5 of 1908), and may direct by whom the whole or any
part of the costs of the appeal shall be paid, and such costs shall be
recovered as if they had been awarded in a suit under the said Code.
(4) In the event of the dismissal of an appeal by any Court appointed
under clause (b) of sub-section (1), the person aggrieved shall have a right
of appeal to the High Court, and the High Court shall, for the purpose of
such appeal, have all the powers of an appellate Court under sub-sections
(2) and (3), and the provisions of those sub-sections shall apply
accordingly.]

10. Registered office - All communications Union may be addressed to

its registered office. Notice of any change in the address of the head office
shall be given within fourteen days of such change to the
Registrar in writing, and the changed address shall be recorded in the
register referred to in section 8.

11. Incorporation of registered Trade Unions - Every registered Trade

Union shall be a body corporate by the name under which it is registered,
and shall have perpetual succession and a common seal with power to
acquire and hold both movable and immovable property and to contract,
and shall by the said name sue and be sued.

12. Certain Acts not to apply to registered Trade Unions – The

following Acts, namely:--
(a) The Societies Registration Act, 1860 (21 of 1860),
(b) The Co-operative Societies Act, 1912 (2 of 1912),
(c) The Companies Act, 1956 (1 of 1956);shall not apply to any registered
Trade Union, and the registration of any such Trade Union under any such
Act shall be void.

REASONS FOR JOINING TRADE UNION

The important forces that make the employees join a union are as
follows:

1. Greater Bargaining Power - The individual employee possesses

very little bargaining power as compared to that of his employer. If he
is not satisfied with the wage and other conditions of employment, he
can leave the job. It is not practicable to continually resign from one
job after another when he is dissatisfied. This imposes a great
financial and emotional burden upon the worker. The better course
for him is to join a union that can take concerted action against the
employer. The threat or actuality of a strike by a union is a powerful
tool that often causes the employer to accept the demands of the
workers for better conditions of employment.

2. Minimize Discrimination - The decisions regarding pay, work,

transfer, promotion, etc. are highly subjective in nature. The
personal relationships existing between the supervisor and each of
his subordinates may influence the management. Thus, there are
chances of favouritisms and discriminations. A trade union can
compel the management to formulate personnel policies that press
for equality of treatment to the workers. All the labour decisions of
the management are under close scrutiny of the labour union. This
has the effect of minimizing favouritism and discrimination.

3. Sense of Security -The employees may join the unions because

of their belief that it is an effective way to secure adequate
protection from various types of hazards and income insecurity such
as accident, injury, illness, unemployment, etc. The trade union
secure retirement benefits of the workers and compel the
management to invest in welfare services for the benefit of the
workers

4. Sense of Participation - The employees can participate in

management of matters affecting their interests only if they join
trade unions. They can influence the decisions that are taken as a
result of collective bargaining between the union and the
management.

5. Sense of Belongingness - Many employees join a union

because their co-workers are the members of the union. At times, an
employee joins a union under group pressure; if he does not, he
often has a very difficult time at work. On the other hand, those who
are members of a union feel that they gain respect in the eyes of
their fellow workers. They can also discuss their problem with’ the
trade union leaders.

6. Platform for self expression - The desire for self-expression is

a fundamental human drive for most people. All of us wish to share
our feelings, ideas and opinions with others. Similarly the workers
also want the management to listen to them. A trade union provides
such a forum where the feelings, ideas and opinions of the workers
could be discussed. It can also transmit the feelings, ideas, opinions
and complaints of the workers to the management. The collective
voice of the workers is heard by the management and give due
consideration while taking policy decisions by the management.

7. Betterment of relationships - Another reason for employees

 joining unions is that employees feel that unions can fulfil the
important need for adequate machinery for proper maintenance of
employer-employee relations. Unions help in betterment
of industrial relations among management and workers by solving
the problems peacefully.

THE BENEFITS OF REGISTERED TRADE UNION

It is not compulsory for a trade union to register but there are good reasons,
both legal and organisational, for registering. However, it should perhaps first be
noted that both registered and unregistered unions can acquire the following
rights:

1. The protection of the chapter of the LRA on freedom of association.

2. Access to the dispute resolution mechanisms for conciliation of mutual
interest disputes
3. Legal personality.
4. Immunity against legal action for initiating or assisting in a protected
strike or lock-out.
5. May invoke the status quo remedy if an employer unilaterally changes
terms or conditions of employment.
6. May acquire organisational rights through negotiations or industrial action
(although unregistered unions would not be able to enforce agreements in
the Labour Court but would have to do so through industrial action or in
the High Court).
7. Must be informed and consulted before disciplinary action is instituted
against a trade union representative or an employee who is an office-
bearer or official of the union.
8. May have a right to be consulted by an employer in the event of
unprotected industrial action before employees may be dismissed ; and
9. Enjoy immunity against civil proceedings for ‘conduct in contemplation or
in furtherance of a protected strike or protected lock-out.

But, only a registered trade union:

1. Is eligible for membership of a bargaining council;

2. May apply for the establishment of a statutory council;
3. May enter into a collective agreement that is binding in terms of the LRA,
including agency shop and closed shop agreements;
4. May have any election or ballot in terms of its constitution administered,
overseen or scrutinised by the CCMA ;
5. May obtain advice or training from the CCMA ;
 6. May refer a dispute between itself and a member or applicant for
membership about alleged non-compliance with its constitution to the
Labour Court;
7. May act in any dispute to which a member is a party and be a party to any
proceedings to which a member is a party ;
8. Can qualify for organisational rights in terms of Part A of chapter lll of the
LRA ;
9. May apply for the establishment of a workplace forum ;
10.May authorise a picket in support of a protected strike or in opposition to a
lock-out ;
11.May call protest action to promote or defend socio-economic interests of
workers ;
12.May represent its members in conciliation, arbitration and other
proceedings;
13.May have a dispute between itself and a member or applicant for
membership about expulsion or refusal of membership by a trade union
which is party to a closed shop agreement determined by the Labour
Court ;
14.Has a right to be consulted about contemplated dismissals based on
operational requirements if there is no workplace forum in the workplace
concerned; and
15.May strike against a proposed dismissal subject to section 189A or refer a
dispute about the fairness of the reason for such dismissal to the Labour
Court.

Du Toit et al (2006: 200) conclude that “the advantages attached to registration,

particularly in the crucial areas of organisational rights, collective bargaining and
industrial action, are overwhelming”.

BENEFITS FOR WORKERS

1. Protection: A union provides protection from unfair labour practices and atrocities of
management. It also tries to revise the status of workers in industry and society. Trade
unions resist retrenchment of their members and help to ensure steady employment
for workers.
2. Proper Standard of Living: Unions attempt to secure for workers fair wages, proper
working conditions and welfare facilities like health, housing, recreation and social
security so as to ensure desirable living standard for them.
3. Economic Security: Unions protect their members from various economic hazards
such as illness, accidental injuries, and unemployment. They secure compensation
from employers.
4. Sense of Belonging: An ordinary worker has little sense of belonging in modern
industry. By joining a union he can associate with fellow workers and gain social
respect.
5. Self-Expression: Unions serve as medium through which workers can express their
grievances and suggestions to employers.
 6. Collective Bargaining: A trade union negotiates and bargains with the management
to settle terms and conditions of employment.
7. Participation: Trade unions work for achieving a better say of workers in the
management of matters which directly influence the interests of workers. In this way
unions attempt to establish democracy in industry.
8. Protests: Unions organise demonstrations, strike and other forms of protest to press
the demands of workers. During a strike the union may provide financial and other
help to members when the employer stops wages.
9. Education: Many trade unions make arrangements for the education of workers and
their family members. Unions make workers conscious of their rights and duties and
aware of the need for technological changes.
10. Welfare and Recreation: Some unions provide recreation, sports, and other welfare
facilities for their members.
11. Legislation: Trade unions lobby with political parties and political leaders to secure
legislative protection for workers from the government.
12. Representation: Trade unions represent working class in various national and
international forums such as Indian Labour Conference and International Labour
Organisation (ILO).

AMALGAMATION OF TRADE UNION

Amalgamation of Trade Unions.- Any two or more registered Trade Unions
may become amalgamated together as one Trade Union with or without
dissolution or division of the funds of such Trade Unions or either or any of them,
provided that the votes of at least one-halt of the members of each or every
such trade Union entitled to vote are recorded, and that at least sixty per cent. of
the votes recorded are in favour of the proposal.

Notice of change of name or amalgamation - (1) Notice in writing of every

change of name of every amalgamation, signed, in the case of a change of
name, by the Secretary and by seven members of the Trade Union changing its
name, and, in the case of an amalgamation, by the Secretary and by seven
members of each and every Trade Union which is a party thereto, shall be sent
to the Registrar, and where the head office of the amalgamated Trade Union is
situated in a different State, to the Registrar of such State.(2) If the proposed
name is identical with that by which any other existing Trade Union has been
registered or, in the opinion of the Registrar, so nearly resembles such name as
to be likely to deceive the public or the members of either Trade Union, the
Registrar shall refuse to register the change of name. (3) Save as provided in
sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act
in respect of change of name have been complied with, register the change of
name in the register referred to in section 8, and the change of name shall have
effect from the date of such registration.
(4) The Registrar of the State in which the head office of the amalgamated Trade
Union is situated shall, if he is satisfied that the provisions of this Act in respect
of amalgamation have been complied with and that the Trade Union formed
thereby is entitled to registration under section 6, register the Trade Union in the
manner
provided in section 8, and the amalgamation shall have effect from the date of
such registration.

Effects of change of name and of amalgamation - (1) The change in the

name of a registered Trade Union shall not a affect any rights or obligations of
the Trade Union or render defective any legal proceeding by or against the Trade
Union, and any legal proceeding which might have been continued or
commenced by or against it by its former name may be continued or
commenced by or against it by its new name.(2) An amalgamation of two or
more registered Trade Unions shall not prejudice any right of any of such Trade
Unions or any right of a creditor of any of them.