Is the trade union boon or bane? Indian Trade Union Act with latest amendments - HR /Personnel/IR

Dr.Sarma 25-04-2017
05/27/17dr.sarma/HR coaching/Imran 1

1-Trade Union Act, 1926 – The Act provides for the
registration of trade union and determines the rights,
liabilities and immunities of the union.
2. The Industrial Employment (Standing Orders) Act, 1946
drafted by the employer which contains the conditions of
employment.
3. The Constitution of India, 1950 – The Constitution of
India in the Chapters on Fundamental Rights and Directive
Principles of State Policy justify the legality
4-Maharashtra recognition of trade unions Act/prevention
of unfair labor practices act-MRTUPULP act

A 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.

◦ 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

The Registration of a trade union is not necessary.
registration, gives a trade union several benefits that are not
available to an unregistered Trade Union.
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.

Upon registration, a trade union gets a legal entity status, 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.
A registered trade union gets immunity in certain criminal,
civil, and contractual proceedings to acts done in
contemplation of a trade dispute.

The emphasis is on the purpose of the
association rather than the type of workers

A registered trade union has a right to establish a general fund.
has a right to establish a political fund. Subscription to this fund is not
necessary for a member.
Unions have the right to amalgamate.
The executive of a registered trade union can negotiate with the employer
on 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.
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.

The appropriate government appoints a person to
be the registrar or trade unions for each state.
When the documentation is completed, the
Registrar issues a Certificate of Registration.

 An application must be sent to the Registrar of Trade Unions
 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 year,
a general statement of its assets and liabilities.

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.

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.
membership of the union does not automatically cease upon
termination of the employment.

• The registrar has the power to ask for further
information 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.
• The power of the registrar is not discretionary.

Register if name is not 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

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

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.
not incumbent upon the Registrar to hear other existing unions
before registering a new union.

the Registrar has the power to cancel the registration of a trade
union in the following conditions:
2 months notice in writing stating the ground
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
If the trade union willfully, has contravened or allowed any rule to
continue in force, which is inconsistent with the provisions of this
act.

If the registrar is satisfied that a trade union of
workmen has ceased to have the requisite
number of members a show cause notice is
necessary to de recognize

An appeal may be made in case :
There is refusal by the registrar to register the Trade
Union Or
If there is a cancellation of the certificate of registration

Registration is done at the initiative of the Trade Union.
Certificate of Registration is issued by Registrar
Recognition is granted by the employer to Trade Unions
for facilitating negotiations and effective collective
bargaining.

 There is no concept of a recognized union
under the Trade Union Act or the Industrial
Disputes Act.
 union cannot enforce the right of
recognition against a management by writ,
since there is no statutory provision.

 where a particular union has represented the
workmen for over 3 decades and carried out
negotiations, such union cannot be said to be
“Not Recognized”.
 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.

High Court can interfere if principles of natural
justice are not followed.
HC does not have the right to quash recognition of
one union and accord it to another union.
05/27/17Dr.Sarma/HR coaching/Imran 26

The following are some restrictions on a registered
union.
Can spend funds only on the activities specified in
Section 15.
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.
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
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 Egg. Calling for a strike.
immunity for such conspiracy as long as no
offence is committed.

When it involves a violent act or illegal
means then members cannot claim
immunity.
Deliberate Trespass
Molestation during picketing

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

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

 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

Collective bargaining consists of negotiations
between an employer and Union generally the
recognized union employees
To determine the conditions of working
The result of collective bargaining procedures is
a collective agreement.

 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.

 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.

Is the trade union boon or bane? Indian Trade Union Act with latest amendments - HR /Personnel/IR

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Is the trade union boon or bane? Indian Trade Union Act with latest amendments - HR /Personnel/IR