Trade Union

Unit -2
Definition of Trade Union
 Trade Union is a Group of persons whether temporary or permanent, primarily for the purpose of
regulating the relations between workers and employers or between workers for imposing
restrictive conditions on the conduct of any trade or business and includes the federations of
two or more.

 Some examples of Trade Union are :-

 All India Central Council of Trade Unions
 All India Trade Union Congress
 Hind Mazdoor Sabha
 Self Employed Women’s Association
 Trade Union Coordination Centre
Main objective of Trade Union

 To improve the economic conditions of workers.

 To provide better working conditions to the employees.
 To protect the jobs of workers against layoffs.
 To ensure that workers get his all retirement benefit.
 To provide workers with better safety and health welfare schemes.
 To allow participation of workers in management decision making.
Functions of trade unions.

 Collective bargaining with the management of the organization for ensuring

better working conditions for workers.
 Providing security to the workers unwanted firing of the workers.
 Negotiating with management on matter like hours of work, wages, medical
facilities etc.
 Developing cooperation among the workers.
 Helps in the maintenance of discipline in organisation.
Registration of trade union
 Mode of registration
 Any seven or more members of trade union may by subscribing their names to the rules of the
trade Union than they can apply for the registration.
 No Trade union of workmen shall be registered unless at least ten
per cent. Or one hundred of the workmen , whichever is less, employed in industry is agree.


Application should contains
 Every application for registration of trade union shall be made to the registrar and shall
accompanied by a copy of the rules of the trade union and a statement of the following :-
 Name , occupation and addresses of the members making application.
 The name of trade union and the address of its head office.
 The title, name, age, addresses and occupation of the office bearers of the union.

 Ifregistrar is not satisfied then he can ask for

further document related to trade union .
 After all documentation registrar issues
certificate of registration and guidance
according to Trade union Act.
Cancellation of registration
 Registration cancelled by registrar on application of trade union .
 Registrar is satisfied if:-
o certificate is obtain by fraud .
o After notice of registrar union is continuously violet Act guidelines.
o Poor management practices, financial irregularities, or lack of proper governance can lead to cancellation .
o Not following the codes or rules set for trade unions in a particular jurisdiction.
o If a trade union becomes involved in illegal activities or actions that go against the law.
Right of Trade union
 Trade union has a right to establish a general fund.
 Trade union has a right to establish a political fund.
 Any member of Trade Union may inspect the books himself or through agent .
 Any two or more than two trade unions may amalgamate into one with or without
dissolution of funds but at least 50% of majority votes is recorded and at least sixty
percent of those votes are in favour of amalgamation.
 Right to contract in its own name.
 Right to acquire, hold and dispose of both movable and immovable property in its own
name.
 Common seal in its own name
 A registered trade union can change the name with minimum 2/3 majority and all
requirement of section 25 must be fulfilled.
Liabilities of Trade Union

 The trade union cannot spend the fund for any voluntary reasons. They can only spend
for specific activities.
 Trade union must make available all records, its books of accounts and list of
membership for inspection which confirmed in section 20 upon request of any member
or his representatives.
 The trade union has to send notice to registrar in case of every change of its name,
amalgamation of trade unions, any change in the address of head office, for
dissolution and a copy of every alteration made in the rules of registered trade union .
 Audit report in prescribed manner, all income and expenses and assets and liabilities existing on such
31st day of december must be sent to the register every year.
 Minors more than 15 years of age can be a member as per section 21 but they can’t hold office.
 Trade union cannot appoint a person who has been convicted for a crime involving moral turpitude or has
been imprisoned for 6 months or more within last 5 years.
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.
Penalty according to offence

Offence Penalty

If the registered union/its office Fine up to 5 and an additional fine

bearers or members fail to give any up to 5 per week in case of
notice or send any statement as continuing offence (Maximum fine
required under the Act. imposable is ₹50).
(ii) If any person willfully makes any
false entry in the annual statement Fine up to 500.
of the union or its rules.
(iii) If any person, with intent to
deceive, gives an incorrect copy of
rules of the union to any member or Fine up to ₹200.
a prospective member.
 Problems Faced by Trade Unions in
India
a. Lack of Balanced Growth: A vast majority of the working population is without any
union backing. The entire agricultural sector is highly unorganized in India. The
agricultural workers are subject to all kinds of exploitation. The same is true with respect
to those working in small scale and cottage industries. Main reason behind unbalance
growth in India of trade union.
b. Low Membership: This is because many employees are not willing to join unions
although they are ready to enjoy the benefits arising out of the union actions.
c. Political Control: Most popular trade unions in India are affiliated to certain political
parties.
d. Lack of able Leaders: Some union leaders give a strike call even for petty problems
that can easily be resolved through talks. On the other hand, there are leaders who have
secret pact with the management. They get bribes from the government and work against
the interests of the employees.
c. Lack of Recognition: Most management is not prepared to recognize trade unions.
This happens because of any of the following reason.
1. The existence of low membership that reduces the bargaining power of the union.
2. The existence of more unions within the same industry.
3. Inter-union rivalry.
4. The indifferent attitude of the employees themselves towards trade unions.