Trade union is an association of workers formed for the purpose of protecting and improving the socio-economic status of its members through collective action.

• The common feature of all unions is that the union is in theory a democratic institution. The ultimate power lies in the membership as a whole.

Section 2(h) of the Trade Unions Act 1926 defines Trade Union as a combination, temporary or permanent , formed primarily for the purpose of regulating the relations between workmen and employer, workmen and workmen, or employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes the federation of two or more trade unions.

The Registration of a trade union is not necessary.

However, upon registration, a trade union gets several benefits that are not available to an unregistered Trade Union.

The trade union gains recognition in the eyes of the employer, employees and general public. Hence, a stronger footing for collective bargaining between the employers and workers.

 In the case of Workers of B and C Co vs Labor Commissioner, AIR 1964 Mad it was held that a Trade Union can raise or sponsor a trade dispute and represent on behalf of its members in legal proceedings arising out of a trade dispute.Hence it is only a registered Trade Union which can espouse an industrial dispute.

A Registered Trade Union gets immunity from civil and criminal liability for acts done in pursuance to a trade dispute.

Section 13 specifies that upon registration, a trade union gets a legal entity status, due to which it has perpetual succession and a common seal.

It can acquire and hold movable as well as immovable properties, can contract through agents, can sue and can be sued.

Under section 17, 18, and 19 a registered trade union gets immunity in certain criminal, civil, and contractual proceedings. However, such immunity /protection is confined to acts done in contemplation of a trade dispute.

In the case of GTRTCS and Officer's Association, Bangalore and others vs Asst. Labor Commissioner and and others AIR 2002, Kar. HC held that the definition of workmen for the purpose of Trade Unions is a lot wider than in other acts and that the emphasis is on the purpose of the association rather than the type of workers and so it is a valid Trade Union.

In the case of Tamil Nadu NGO Union vs Registrar, Trade Unions, AIR 1962, Madras HC held that Tamil Nadu NGO Union, which was an association of sub magistrates of the judiciary, tahsildars, etc., was not a trade union because these people were engaged in sovereign and regal functions of the State where were its inalienable functions

Under section 15 a registered trade union has a right to establish a general fund.

Under section 16, a registered trade union has a right to establish a political fund. Subscription to this fund is not necessary for a member.

Under section 24, trade unions have the right to amalgamate.

Under section 28-F, the executive of a registered trade union has a right to negotiate with the employer the matters of employment or non-employment or the terms of employment or the condition of labor of all or any of the members of the trade union

The employer shall receive and send replies to letters and grant interviews to such body regarding such matters.

It further provides that the executive is entitled to post notices of the trade union meant for its members at any premises where they are employed and that the employer shall provide reasonable facilities for that.

Section 3 (Appointment of the Registrar) : The appropriate government appoints a person to be the registrar or trade unions for each state.

When the prerequisite documentation is completed, the Registrar issues a Certificate of Registration.

An application must be sent to the Registrar of Trade Unions appointed by an appropriate government. 

The application must be made by seven or more persons who are engaged in the trade or industry in connection to which the Trade Union is to be formed. 

All the applicants must subscribe their names to the rules of the Trade Union and comply with the provisions of this act regarding registration.

There must be at least 10% or 100, whichever is less, members who are engaged or employed in the establishment or industry to which it is connected.

If more that half of the persons who had applied for the registration cease to be members of the union or expressly disassociate themselves from the application, the application for Registration will be deemed to be invalid.

The application should be sent to the registrar along with the copy of the rules of the trade union. (The rule book should be enclosed).

It must contain a statement of the following particulars:

The name, occupation, and addresses of the applicants.

The name of the trade union and the address of its head office.

The titles, names, ages, addresses, and occupations of the office bearers of the trade union.

If the trade union has been in existence for more than 1 yr, a general statement of its assets and liabilities.

Specifies the provisions that should be contained in the rule book of the trade union.

A copy of this rule book must be supplied along with the application for registration of the trade union.

This rule book details the internal administration of the trade union and also determines and governs the relationship between the trade union and its  members. It must contain the rules for the following matters:

Name of the trade union Object of the trade union Purposes for which the general funds can be used. Maintenance of the list of members and adequate facilities to inspect it by the members of the

trade union ( the membership of ordinary members who are actually engaged or employed in an industry with )which it is connected as well as the membership of the honorary or temporary members.

Rules related to the appointment of members of the executive body.

The membership or subscription fee.

The conditions under which a member can get the benefits or has to pay fines.

The safe custody of funds and provisions for inspecting or auditing the statements, or other documents of the trade union.

Dissolution of the trade union.

M T Chandersenan vs Sukumaran AIR 1974, SC held that if a member fails to pay subscription fee, he cannot be considered a member of the trade union. However, subscriptions cannot be refused under some pretext which results in the denial of membership.

In the case of Bokajan Cement Corporation Employees Union vs Cement Corporation of India, 2004, SC held that membership of the union does not automatically cease upon termination of the employment.

• The registrar has the power to ask for further information from the trade union to satisfy himself that the trade union complies with section 5 and is eligible to be registered under section 6.

• The registrar can refuse to register the trade union until he receives the information.

• Held in Kesoram Rayon Workers union Vs Registrar of Trade Unions(1968)Lab IC 1539 CalDB that if the requirements are complete, the registrar cannot refuse to grant certificate of Registration. The power of the registrar is not discretionary.

The purpose of section 7 is that the general public, members of the union are not deceived that the union which seeks registration of a name is connected to one already registered.

Further, the Registrar has the power to ask to change the name of the trade union if a union with the same name already exists or if he feels that the name could be deceiving or confusing to the public or the members of the trade union. Held in All India Trade Union Congress Vs Registrar of Trade Unions (2006)110FLR(Bom)

• Under section 8, upon satisfaction of all the requirements, the Registrar of the Trade Unions will register the trade union. It is mandatory for the registrar to register a trade union if the union satisfies all the technical requirements of this act.

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Under section 9, the registrar will issue the certificate of registration in the prescribed form, which shall be a conclusive evidence that the trade union is registered under this act.

In the case of re Indian Steam Navigation Workers Union AIR 1936 SC held that a Registrar only has to see whether all the technical requirements are being fulfilled and not whether it could be described as unlawful.In the case of ACC Rajanka Limestone Quarries Worker's Union vs Registrar of Trade Unions, AIR 1958, it was held that if the registrar does not register the trade union within 3 months of application, an appeal can be made to the High Court under art 226.

Held in the case of Raymond Synthetics Vs. Registrar of Trade Unions.(1994)2LLN 81 that it is not incumbent upon the Registrar to hear other existing unions before registering a new union.

Under section 10, the Registrar of Trade Unions has the power to cancel the registration of a trade union in the following conditions:

Provided that 2 months notice in writing stating the ground on which it is proposed to cancel the certificate of Registration shall be given by the registrar to the trade union.

If the registrar is satisfied that registration was obtained by fraud or mistake.

If the trade union has ceased to exist.

Financial irregularities in the accounts have been shown

If the trade union willfully, upon notice of the registrar, has contravened or allowed any rule to continue in force, which is inconsistent with the provisions of this act.

If the trade union rescinds( to go back) any rule providing for any matter, provision for which is required to be made in section 6.

If the registrar is satisfied that a trade union of workmen has ceased to have the requisite number of members.

Held in Coromandel Cement Factory Employees Union Vs Deputy Registrar Trade Unions 2001 LLR 170 (AP) that Cancellation of Registration without giving a show cause notice is liable to be set aside as no opportunity for representing his case has been given to the party and such an act is violative of the principles of Natural Justice.

An appeal may be made in case : 1) There is refusal by the registrar to register the

Trade Union Or 2) If there is a cancellation of the certificate of

registration Such appeal may be made to the High Court, if the

head office of the trade union is located in a presidency town.

The labour court or industrial tribunal, if the head office of the trade union is located in its jurisdiction.

If the head office of the trade union in any other location, then the application can be made 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 govt. may appoint in this behalf for that area.

Registration is done at the intiative of the Trade Union.

Certificate of Registration is issued by Registrar after procedure detailed in Sec’s 4,5,6 is followed.

Recognition is granted by the employer to Trade Unions for facilitating negotiations and effective collective bargaining.

There is no concept of a recognised union under the Trade Union Act or the Industrial Disputes Act.

Held in Kampali Cooperative Sugar Factory Vs its Management(1995)ILLJ725 Kar H.C. A union cannot enforce the right of recognition against a management by writ, since there is no statutory provision.

Held in Food Corporation of India Workers Union VsFCI 1996(L&S)1255(SC) where a particular union has represented the workmen for over 3 decades and carried out negotiations, such union cannot be said to be “Not Recognised”.

Refusal to grant Recognition, or withdrawal of Recognition once granted, without affording a opportunity of hearing to the Trade Union is opposed to principles of Natural Justice.

Held in Hindustan Copper Mazdoor Sangh Vs Chief Commissioner ministry of labour Government of India (1986)IILLN228Raj HC that the High Court can interfere if principles of natural justice are not followed.

However, under Art 226,the HC does not have the right to quash recognition of one union and accord it to another union.

The following are some restrictions on a registered trade union.A Trade Union cannot spend the funds on anything the office bearers want. It can spend funds only on the activities specified in Section 15. These include:

salaries of the office bearers.

expenses required for the administration of the trade union

compensation to workers due to loss arise of any trade dispute.

welfare activities of the workers including housing, clothing, or any such activity.

benefits to the workers or their dependents in the case of unemployment, disability, or death.

publishing material for creating awareness in the workers.

legal expenses required for defending or bringing a suit.

education of workers or their dependents.

expenses for medical treatment of workers.

taking insurance policies

Section 17 confers immunity from liability in the case of criminal conspiracy under section 120-B of IPC, committed by an office bearer or a member.

However, this immunity is partial in the sense that it

is available only with respect to the legal agreements created by the members for the furtherance of valid objects of a trade union as described in section 15 of the act.

 Registered Trade Unions have certain rights to do in furtherance of their trade disputes such as calling for strike, persuading members to protest, distributing pamphlets, making speeches to garner support for the union or educate the employees about any unjust act of the management etc.

The immunity can be claimed by a trade union for an act which is done in furtherance of a trade dispute:

Immunity is restricted to breach of contract of employment Eg. Calling for a strike. Charges of criminal conspiracy cannot be leveled against the trade union. If workers go on strike, it is a breach of contract of employment which would give rise to civil action for damages. If 2 or more workers commit such an illegal act as a concerted act, it would fall within the ambit of criminal conspiracy.

The Trade Union Act provides immunity for such conspiracy as long as no offence is committed.

Immunity cannot be claimed for an act that is an offence. Even, if an act of the trade Union is in promotion of a trade dispute and this involves a violent act or illegal means then members cannot claim immunity.

Eg.For Deliberate Trespass (Dalmia Cement Case) or

Molestation during picketing R.S.Ruikar Vs Emperor AIR1935

TU members cannot claim immunity

• In general, a person is liable in torts for inducing another person to breach his contract of employment or for interfering with the trade or business of another.

• However, a trade union, its officers, and its members are immune from this liability provided that such an inducement is in contemplation or furtherance of a trade dispute.

• Further, the inducement should be lawful. There is no immunity against violence, threats, or any other illegal means.

A trade union cannot force members to subscribe to political fund under section 16.

Under section 20 a trade union must make available all its record books of accounts and list of membership for inspection upon request of any member or his representative.

Section 21 allows minors more than 15 yrs of age to be members of a trade union. However, such minors cannot hold office.

Under section 21-A, a trade union cannot appoint a person as an office bearer of a trade union if he has been convicted of a crime involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.

As per section 22, at least half of the office bearers of a trade union of workers of unorganized sector must be engaged or employed in an industry to which the trade union is connected. Also, while a union has a right to remove any office bearer, this power must be used judiciously and rules of natural justice must be followed.

Under section 28, a general statement, audited in a prescribed manner, of all income and expenses must be sent to the registrar every year.

In India, an agreement in restraint of trade is void as per section 25 of Indian Contract Act.

However, such an agreement between trade union members is neither void nor voidable.

It is important to note that this right is available only to registered trade unions.

An unregistered trade union must follow the principles of general contract law

• Section 24 says that any two or more registered trade unions may become amalgamated together into one trade union with or without dissolution or division of the funds of such trade unions or either or any of them, provided that votes of at least one half of the members of each trade union are recorded and at least 60% of the votes of each trade union are in favor of the proposal.

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The notice of such amalgamation, signed by the secretary and seven members of each of the trade unions, should be sent to the registrar of the state where the head office of the amalgamated trade union is to be located. If the registrar is satisfied that all the provisions of this act have been complied with and the trade union formed thereby is entitled to registration under section 6, he will register the new trade union under section 8 and the amalgamation will take effect from the date of registration.

The notice of dissolution signed by seven members within 14 days of dissolution will be sent to registrar and shall be registered by him if he is satisfied that the dissolution has been affected in accordance with rules of the TU.

Dissolution shall have effect from the date of registration.

Where rules do not provide for distribution of funds, registrar shall divide funds among members as may be prescribed.

Safeguards workers against all sorts of exploitation by the employers, by union leaders and by political parties.

Protects workers from the atrocities and Unfair Labour Practices of the management.

Works to ensure healthy, safe and conducive working conditions.

Exerts pressure for enhancement of rewards associated with the work only after making a realistic assessment of its practical implications

To minimize the helplessness of individual workers by making them stand collectively.

To provide the workers with self confidence.

They take up welfare measures for betterment of conditions for the workers.

To remove the dissatisfaction and redress the grievances and complaints of workers.

To encourage worker’s participation in the management of industrial organization and trade union, and to foster labor-management cooperation.

They help in raising the status of workers as partners in industry.

To make the workers conscious of their rights and duties and work towards imbibing discipline in workers.

To impress upon works the need to exercise restraint in the use of rights and to enforce them after realistically ascertaining their practical implications.

They promote cordial and amicable relations between the workers and management by settling disputes through negotiation, joint consultation and voluntary arbitration, and by avoiding litigation.

To highlight that industrial organization is a joint enterprise between workers and management and to promote identity of interests.

To increase production quantitatively and qualitatively, by laying down the norms or production and ensuring their adequate observance.

To create opportunities for worker’s participation in management and to strengthen labor-management cooperation

They exert pressure on the employer

a) Enforce legislative provisions beneficial to the workers.

b) Share the profits equitably (ESOP schemes) c) Keep away from various types of unfair labor

practices.

Impress upon the management the need to adopt reformative and not punitive approach .

To improve the network of communication between trade unions and its members.

To curb inter-union rivalry and thereby help in the creating of unified trade union movement.

To resolve the problem of factionalism and promote unity and solidarity within the union.

To preserve and strengthen trade union democracy

To improve financial position by fixing higher subscription, by realizing the union dues and by organizing special fund-raising campaigns.

To train members to assume leadership position

To save the union organization from the exploitation by vested interests –personal and political

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