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Introduction:
Trade Unions are the group’s set-up with the aim of trying to create fairness and job security in a workplace. A
trade union is an organization of workers who have banded together to achieve common goals in key areas
such as wages, hours, and working conditions. Basically, a trade union bargains with the employer on behalf
of union members and negotiates with employers. Freedom of association has been the corner stone of
society. This freedom finds its expression in a democratic form of government. Trade unionism has been a
movement launched against the concentration of economic power in the hands of a few individuals of society
and for promoting the welfare of working class. Trade union movement is not confined to the premises of one
nation or country but it has widened to the international field as well. It may be desirable to mention that
besides trade unions in specific countries, there is one international organization of working class known as
International Labor Organization (ILO) for promoting labor welfare.
History of Trade Union Movement:
Modern trade unionism is a product of conditions created by industrial revolution. The industrial revolution in
Great Britain and later in other countries brought about a sudden and drastic change in the economic sphere.
These changes were so sudden that it was difficult to bring about a complete social, economic and political
adjustment. The factory system of production completely tore the relationship between the capitalist and the
labor class without replacing it with a new one. The new economic order that was created was a challenge,
which workers sought to meet through the formation of associations known as trade unions to defend their
living and working conditions.
Trade Unions Act, 1926
The object of Trade Unions Act, 1926 is to provide for registration of Trade unions and to define law relating
to registered trade unions in certain aspects. In the year 1925 the Government of India, after consulting the
State Governments drew up a Bill providing for the registration of trade unions and introduced the same in the
Legislative Assembly on the 1st August,1925. The Indian Trade Union Act was passed in 1926and came into
force on the 1st June,1927. Although two amending Acts were passed in 1928 and 1942, no major changes
were introduced in the Act till 1947. In 1947, an amending Acct was passed which provided for compulsory
recognition of the representative Unions by the employers, and listed certain practices on the part of
recognized Unions. These provisions of the amended Act, however, have not been brought into force.
History of Trade Union Movement in India
The first cotton mill in India was established in 1951 in Bombay and the first jute mill in 1855 in Bengal. This
was the beginning of the modern factory system in India. After 1851 and 1855, the number of factories began
to increase both in Bombay and Bengal. Prof. S. N. Dhyani has observed that the year 1875 is landmark in the
history of trade union Movement. For the first time, in India factory workers united together for securing
better working conditions in the factories.
Definition
Section 2(h) of the Trade Union Act, 1926 has define a trade union as:
“Any combination, whether temporary or permanent, former primarily for regulating the relation between
workman and workmen or between employers, or for imposing restrictive conditions on the conduct of any
trade or business, and includes any federation of two or more trade unions.
Thus, technically, there can be ‘union’ of employers also, though, almost universally, the term ‘trade union’ is
associated with union of workmen or employees.
Registration of Trade Unions:
Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain
rights and privileges under the Act. Minimum seven workers of an establishment (or seven employers) can
form a trade union and apply to the Registrar for it registration.

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The application for registration should be in the prescribed form and accompanied by the prescribed fee, a
copy of the rules of the union signed by at least 7 members, and a statement containing
(a) The names, addresses and occupations of the members making the application,
(b) The name of the trade union and the addresses of its head office, and
(c) The titles, names, ages, addresses and occupations of its office bearers.
If the union has been in existence for more than a year, then a statement of its assets and liabilities in the
prescribed form should be submitted along with the application. The registrar may call for further information
for satisfying himself that the application is complete and is in accordance with the provisions.
Legal Status of a Registered Trade Union:
 A registered trade union is a body corporate with perpetual succession and a common seal.
 It can acquire, hold sell or transfer any movable or immovable property and can be a party to contracts.
 It can sue and be sued in its own name
 No civil suit or other legal proceeding can be initiated against a registered trade union in respect of any act
done in furtherance of a trade dispute under certain conditions.
 No agreement between the members of a registered trade union shall be void or voidable merely because any
of its objects is in restraint of trade.
Registration does not mean recognition:
Registration and recognition of Union by an employer are independent issues. Registration of Trade Union
with Registrar has nothing to do with its recognition in a factory/company. Recognition of Trade Union is
generally a matter of agreement between employer and trade union. In States like Maharashtra and Madhya
Pradesh, there are specific legal provisions for recognition of a trade union.
Transformation of The Trade Unions’ Act, 1926
The history of trade union movement indicates that the trade union movement in India had not to face the
onslaught of legislation as in England. In Great Britain, trade unions were regarded against the common law,
and were also looked down as criminal conspiracies.
Recognition of A Trade Union
The need for recognition of trade unions by employers was felt by the working class to ensure that appropriate
modes of collective bargaining took place and that the agreements, which were collectively reached, were
mutually observed. It was considered that recognition of trade unions was a step towards securing reasonable
levels of pay and working conditions. This in turn will be achieved if workers stood united in representing
their demands through a trade union, which is adequately recognized.
It was the late 1990’s that it was realized that trade unions have become massive bureaucratic bodies with
interests and agendas of those who comprise its membership. However, there is a growing debate as to the
extent to which they represent and pursue the interests of their members. It is often argued that this is slight
and coincidental.
There are elements in the discussion, such as the argument about whether it is acceptable to require a level of
support from among the whole of a workforce, to be recognized – an idea with history and resonance, which
need to be debated thoroughly.
Trade union recognition works as much in the interests of the employer as it does in the interest of the worker.
The recognition of a trade union has several repercussions in defending people on disciplinary charges,
accompanying members in meetings with managers and negotiating local conditions of service.
After the passing of the Trade Unions Act, 1926, it may be observed that from criminal and illegal
associations trade unions have now become legalized and recognized institutions, from institutions which
were only very small bodies they have now become gigantic associations, from institutions that were

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primarily interested in the advancement of the cause of their own membership they have now become
institutions which are interested in the social, cultural and political development of the country. This was a
remarkable process.
Recommendations by the National Labor Commission, 1969
The Commission has strongly recommended that:
(1) Trade union registration be made compulsory;
(2) The registrar must be time bound to decide the issue of registration
(3) Effective measures must be taken for cancellation if the unions do not comply with conditions regarding
filing of returns or membership;
(4) Trade union recognition by the employers be made compulsory by Central legislation as specified
undertakings;
(5) Such recognized unions, must be given statutorily exclusive rights and facilities like right of sole
representation, entering collective bargaining agreements, holding discussions and negotiations, inspection,
check-off etc.; and
(6) The minority unions must also be allowed to represent workers in redressal of individual grievances like
dismissal, discharge etc. The suggested measures are likely to promote growth of healthy and strong trade
unionism and eliminate inter-union rivalry to some extent. Compulsory recognition of one union for one
undertaking will make the unions effective instruments of collective action and give them requisite bargaining
equality.
Definition of Recognition:
A union must be recognized before it may effectively represent any employees. Once a union is recognized it
serves as the bargaining agent for the workers in a bargaining unit. An employee may not circumvent the
union, because recognition entails willingness ‘to negotiate with a view to striking a bargain and this involves
a positive mental decision.
Need for recognition:
Recognition of trade union is the backbone of collective bargaining. It has been debated time and again. But
despite the government stated policy to encourage trade unions, there is no enforced central legislation on this
subject. There are however voluntary code of discipline and legislations in some states
Definition of Collective bargaining as the ‘performance of the mutual obligation of the employer and the
representative of the employees to meet at reasonable times and confer in good faith with respect to wages,
hours, and other terms and conditions of employment’. absence of any central legislation, management in
several states have refused to recognize a trade union mainly on five grounds:
(1) Most of the office bearers of the union were outsiders,
(2) and sometimes, those disapproved by management, particularly politicians and ex-employees;
(3) The union consisted of only small number of employees;
(4) There were many rival unions in existence; and
(5) The trade union was not registered under the Trade Unions Act, 1926.
Constitution and Recognition of Trade Unions:
The right to grant recognition to trade unions within the meaning of Constitution of India, art. 19(1)(c) is a
fundamental right or not is answered in negative because the right to form association does not carry with it
the concomitant right that the association must be recognized by the employers. Hence withdrawal of
recognition does not infringe the fundamental rights guaranteed under the Constitution of India, art. 19(1)(c).

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Conditions for Recognition:

Trade Unions (Amendment) Act, 1947, s. 25D provides that a trade union will not be entitled for recognition
by order of a labor court under s. 25E unless it fulfills the following conditions, namely:
(1) That all its ordinary members are workmen employed in the same industry or in industries closely allied to
or connected with another;
(2) That it is representative of all the workmen employed by the employer in that industry or those industries;
(3) That its rules do not provide for the exclusion from membership of any class of the workmen referred to in
clause (b);
(4) That its rules do not provide for the procedure for declaring a strike;
(5) That its rules provide that a meeting of its executive will be held at least once in every six months; and
(6) That it is a registered trade union and that it has complied with all provisions of this Act.
Rights of Trade Unions in India
The trade union rights in our country are found scattered in various laws, voluntary measures like the Code of
Discipline and the constitutional provisions under the Constitution of India, art. These trade union rights may
be divided into the following categories:
(1) Right of freedom of speech and expression which includes right of picketing and demonstrations;
(2) Right regarding the formation and the registration of the trade union;
(3) Right regarding the recognition of the trade union by the employers;
(4) Right regarding collective bargaining and collective actions;
(5) Right regarding conduct and functioning of the trade union; and
Miscellaneous rights:
Right to form a Trade Union – A Constitutional Right of citizens of India
The right to form and continue36 a trade union is a fundamental right guaranteed under the Constitution of
India, art. 19(1)(c), which may only be subjected to reasonable restrictions in the public interest as provided
by art. 19(1)(6).

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Conclusion
After the registration of the trade union, the question of its recognition by the employer comes to the forefront
in as much as if it is recognized by the employer for collective bargaining, then it will have certain privileges
and an opportunity to fulfill its role. There is no provision in the Indian Trade Unions Act or Industrial
Disputes Act, 1947, the only two central enactments in this respect in the country regarding recognition of the
trade union by employers. No union registered or otherwise may lay claim to recognition by the management
for participation in negotiations as a matter of a legal right.
However, it may not be denied that fair play requires the management to consider grant of recognition when a
body of persons legitimately expects to be affected. This right of recognition must be secured by the trade
unions by raising an industrial dispute. The Code of Discipline regulates this aspect, though not on a statutory
level. The National Commission on Labor has recommended such a statutory right for unions. Non-
recognition of a trade union for collective bargaining constitutes an unfair labor practice. Provisions has
however been made in the State of Maharashtra by Maharashtra Recognition of Trade Unions and Prevention
of Unfair Labor Practices Act, 1971.

Bibliography:
1. John Bowers & Simon Honey Ball, Text Book on Labor Law, Blackstone, London
2. KM Pillai, Labor & Industrial Laws
3. VG Goswami, Labor & Industrial Law
4. Dr. SK Pura, Labor and Industrial Law
5. DD Seth, Commentaries on Industrial Dispute Act

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