TRADE UNION DEMOCRACY

A research proposal submitted in partial fulfilment of the course Labour

Law I, Semester — IV during the Academic Year 2017 — 18.

Submitted by
Rajneesh Kumar, 1636
BBA.LLB

Submitted to Vijay Kumar Vimal

April 2018

Chanakya National Law

University Nyaya Nagar,

Mithapur

800001, Patna
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals. I would like to extend my sincere
thanks to all of them.

I am indebted to my teacher of Labour Law 1 MR. VIJAY KUMAR VIMAL for his
guidance and constant supervision as well as for providing necessary information
regarding the project & also for her support in completing the project.

I would like to express my gratitude towards my parents & my friends for their kind
co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to seniors for giving me such
attention and time.

My thanks and appreciations also go to my colleagues in developing the project and

people who have willingly helped me out with their abilities.

THANK YOU.
Hypothesis:
The researcher assumes that the international labour standard is highly influential in
development of Indian labour laws. So, plays an important role in its development. A lot of
legislation comes after joining the international labour organization or its recommendations.

Research Methodology:
The researcher has adopted doctrinal method of research. The researcher has made extensive use
of the library at the Chanakya National Law University and also the internet sources.

Source of data

The following are primary source of data:-

1. Legislative provision
2. Cases
The following are secondary source of data:-
1. Books
2. Website
3. Newspapers

Scope of study

The project deals with Development of Labour laws. It informs the readers about the origin
and development of Indian labour law with role of international laws in it. It also deals in brief
about origin and development of some Indian labour laws like industrial dispute
acts,1947,industrial employment act,etc.

INTRODUCTION

The institution of Trade union, though comparatively recent in origin has become a
powerful force by way of its direct influence in the social and economic life of industrial
workers. Sydney and Beatrice Webb considered Trade Unionism to be "the extension of the
principle of democracy in the sphere of industry .Unfortunately this broad idea is weakened
by causes not too far to seek multiplicity of unions, placing political ideology before economic
interests and to some extent insufficient leadership.
Since the conflict, or co-operation between workers and management is greatly
influenced by the nature of the workers organisation and the processes that induce their
structure, study of Trade Union becomes a critical topic in the industrial relations area. In this
chapter an effort is made to study the origin of Trade Unions in lndia, the nature and pattern
of unions, the relations within the unions, its consequences for the structure and behaviour of
Trade Unions in the Industry and the implications they leave to be marked and provide in the
years to come.
Trade Unions are the product of large scale industrialisation and concentration of
industries. Before the advent of industrialisation there were personal contracts between the
employers and the workers (as the industries were run In the homes and with the tools of the
employer). So there was no need to have any machinery for determining their relationship. But
under the modem factory system this personal contact lost its weight due to setting up of large
scale industrial units, with concentration in towns and with the heavy use of machinery. The
lure of employers, to reduce the cost of production, in order to withstand in the competitive
market and to maximise their profits enabled them to use more and more technologically
advanced devices of production and sophisticated machines which, in turn, have contributed
in further drying up the dampness of the personal relationship. Simultaneously it had given
rise to a new class of workers who were dependent on wages only for their livelihood and had
come frnm different parts of the country, for seelung employment in these industries.

Trade Unions are organization of Workers as well as Employers formed to protect and promote
the interest of their members. Trade Unions have made headway due to rapid individual
development. The workers come together to maintain and improve their bargaining power on
wages and working conditions. The first organized Trade Union in India named as the Madras
Labour Union was formed in the year 1918. From the beginning itself, Trade Unions were not
confined to workers alone. From 19th Century itself there were Employer’s associations in the
form of Chamber of Commerce, Industrial Associations etc. to protect and promote the
interests of their members in a concerted manner. After independence, expansion of industrial
activity and grouping worker’s Trade Unions acted as a spur for strengthening and expansion
of employers’ organization. In 1926, the Trade Union Act was passed which was a landmark
in the history of Trade Unions in the country. The Act gave legal status to the Registered Trade
Unions and conferred on them and their members a measure of immunity from Civil Suit and
Criminal prosecution. Registration of Unions enhanced their status before general public. The
Act gives protection to registered trade unions in certain cases against civil or criminal action.
Employers and Registered Trade Unions are required to submit annual statutory returns to the
Registrar of Trade Unions of respective States/Union Territories regarding their membership,
sources of income, distribution of expenditure and detail of assets and liabilities, who in turn
submit consolidated return on all these aspects to Labour Bureau in the specified proformae.
Trade unions are associations of workers or organization formed together by labour, workers
or employees to achieve their demands for better conditions at their work atmosphere. In the
United States, trade unions go by the name labor unions. A labor union, or trade union, is an
organization of workers who have joined together to achieve goals in areas such as wages and
working conditions. The union negotiates contracts and conditions with employers, keeping
employee satisfaction high and protecting workers from unsafe or unfair working conditions.

These unions exist to deal with problems faced by laborers, these problems maybe of any
nature such as those concerning the pay, unfair work rules, timings and so on. All the workers
working under one particular employer is represented by the worker's union. All the
communication that happens in between the employer and the workforce generally takes place
through the union. All of the above trade unions are also liable and responsible for maintaining
discipline and among the workers, core purpose is to see that proper relations or being
maintained in between management and workers and trade union may take disciplinary action
against the workers who ever misbehaves, disturbed peace and harmony in the workplace and
maintenance indiscipline.
Trade unions or labour unions are governed by the different law in different countries, they
should follow the procedure and mode of registration for formation of the trade union
according to the law of the country. Trade union formed in accordance with the law of their
country shall have the privileges given by the law of trade union.With privileges or rights of
the trade union, it should perform certain duties with respect to workers. The Primary purpose
of a trade union is collective bargaining. In India trade unions can be formed only the persons
engaged in trade or business can form trade unions.

Every registered trade union according to the law of trade union shall have certain functions for
achievement of certain objectives which are mentioned in details further. The primary object
you of the trade union is to protect the interests of the workers and exploitation against him by
Management or employer. In addition to this, it is the responsibility and duty of every trade
union to support management for its functioning and contribute to organisation or company by
way of encouraging workers in a positive way for the improvement of overall efficiency of
organisation.

HISTORICAL DEVELOPMENT OF
TRADE UNION IN INDIA
• Trade Union formed in 1890, Bombay Mill Hands Association by Mr.Lokhande to demand
amendment of Factories Act 1918. Then several other unions followed to fulfill specific demands
and also to lend support to national movement.

• In 1918:-Ahmedabad Textile Labour Association was borned when dispute was settled by the
intervention of Mahatma Gandhi.

• In Madras B.P.Wadia formed Madras Labour Union

• International Labour Organization (ILO) was established in 1919,Thisinfluenced formation of

All India Federation of Trade Unions.

•After world war I, in 1919, large number of strong trade unions were formed by Annie Besant in
Madras and Mahatma Gandhi in Ahmedabad. After 1924, all major All India Left-wing Trade
Unions were formed for class struggle.

TRADE UNION STRUCTURE

There are three types of unions:

• A craft unions is formed by workers belonging to same occupation or specialization irrespective

of industry, e.g. Indian pilots, guild, electricians etc

• Industrial Union is formed on the basis of industry e.g. cotton textile factories ( Rashtriya Mill
Mazdoor Sangh)

• General Union embraces all workers whatever kind of industry or craft in a place e.g.
Jamshedpur Labour Union

WHY EMPLOYEES JOIN UNION ?

Employees join union for following reasons

 Trade unions will protect employee’s economic and vocational interest. As such , it serves
as instrument of defence and security.
 Trade unions look after employees welfare.
 Trade unions safeguard and improve service conditions .
  Trade unions will communicate their views to the management .
 Trade union will restrain managerial authoritarianship. It will oppose management
discretions.
 Trade union will strengthen their bargaining power. It is seen as an instrument regulating
the relationship between employers and employees.
 Trade union highlights class distinction to reduce workers dissatisfaction.
 To exercise leadership role as office-bearers of trade union. This satisfies their ambition
to get ahead which they aspire.

UNIONS PROVIDE THE FOLLOWING:

 Job security to the workers / employees.

 Safeguard workers interestc.
 Improve their working conditionsd.
 Helping employees in developing skill according to the job entrusted theme .
 Enable the worker participation in management
 Protect rights of the workers
 Helping in maintaining good industrial relation .
 Negotiating with management on industrial conflicts/ disputes

FUNCTIONS OF TRADE UNION

  FUNCTIONS RELATING TO TRADE UNION MEMBERS

1) Safeguard workers interest against explotion by employers

2) Protect workers from unfair labour practices by employer.

3) Provision of health, safe and conducive working conditions.

4) To ask for rewards to be associated with work performance.

5) Get benefits from organization for health, housing, education etc.

6) To help in grievance redressal of employees.

7) To foster labour-management participation and cooperation.

8) To make workers conscious of their rights and duties.

 FUNCTIONS RELATING TO ORGANIZATIONS

1) To increase production and productivity.

2) To help maintenance of discipline.

3) To promote cordial relations between the management and workers.

4) To create favourable opinion about management among workers.

5) To facilitate effective communication with the management.

 FUNCTIONS RELATING TO UNION

1) To improve financial position by increasing subscription etc

2) To train members in leadership.

3) To augment communication between union and members.

4) To crub inter-union rivalary.

5) To avoid unfair labour practices.

6) To review relevance of union objectives in the context of socialchange.

7) To maintain accounts & other administrative records of union.

  FUNCTIONS RELATING TO SOCIETY

1.To help national development e.g. family planning, national integration, afforestration.

2.To launch campaigns against social evils, i.e. corruption,communalism, cateism, price rise, hoa
rding, smuggling, dowry,illiteracy etc.

3.To help and co operate with the government and mobilise people participation.

WEAKNESSES OF TRADE UNION MOVEMENT IN INDIA

i..Multiplicity of trade union as only 7 persons can from a union

ii. Inter-union rivalry

iii. Intra-union factions / rivalry

iv. Absence of criteria for recognition of sole bargaining agent

v. Politicalisation of trade union and association of outsiders with enterpriseunions.

vi..Philosophy and approaches which advocated

vii. Adversarial relationship (war-fare) conflict with management

viii. Class struggle: oppression and exploitation by employers.

ix. Adoption of pressure tactics, militancy, indiscipline, intimidation, black-mailing, towards

management

x. No role played as social change agents but self-centered.

 REGISTRATION OF TRADE UNIONS
Appointment of Registrars.-

(1) The appropriate Government shall appoint a person to be the Registrar of Trade Unions for
each State.

(2) 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.

(3) 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.

Mode of registration.-

(1) 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.

(2) Where an application has been made under sub-section (1) for the registration of a Trade Union,
such application shall not be deemed to have become invalid merely by reason of the fact that, at
any time after the date of the application, but before the registration of the Trade Union, some of
the applicants, but not exceeding half of the total number of persons who made the application,
have ceased to be members of the Trade Union or have given notice in writing to the Registrar
dissociating themselves from the application.

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 office-bearers 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.

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 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 office-bearers required under section 22 to
form the executive of the Trade Union;

 (ee) the payment of a subscription by members of the Trade Union which shall be not less
than twenty-five naye paise per month per member;

 (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 office-bearers 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 the office-bearers and members of the Trade Union; and

 (j) the manner in which the Trade Union may be dissolved.

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.

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.

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.

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.

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.

Registered office.- All communications and notices to a registered Trade 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.

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.

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.
 RIGHTS AND LIABILITIES OF REGISTERED
TRADE UNIONS
Objects on which general funds may be spent.- The general funds of a registered Trade Union
shall not be spent on any other objects than the following, namely: -

 (a) the payment of salaries, allowances and expenses to office-bearers of the Trade Union;

 (b) the payment of expenses for the administration of the Trade Union, including audit of
the accounts of the general funds of the Trade Union;

 (c) the prosecution or defence of any legal proceeding to which the Trade Union or any
member thereof is a party, when such prosecution or defence is undertaken for the purpose
of securing or protecting any rights of the Trade Union as such or any rights arising out of
the relations of any member with his employer or with a person whom the member
employs;

 (d) the conduct of trade disputes on behalf of the Trade Union or any member thereof;

 (e) the compensation of members for loss arising out of trade disputes;

 (f) allowances to members or their dependants on account of death, old age, sickness,
accidents or unemployment of such members;

 (g) the issue of, or the undertaking of liability under, policies of assurance on the lives of
members, or under policies insuring members against sickness, accident or unemployment;

 (h) the provision of educational, social or religious benefits for members (including the
payment of the expenses of funeral or religious ceremonies for deceased members) or for
the dependants of members;

 (i) the upkeep of a periodical published mainly for the purpose of discussing questions
affecting employers or workmen as such;

 (j) the payment, in furtherance of any of the objects on which the general funds of the Trade
Union may be spent, of contributions to any cause intended to benefit workmen in general,
 provided that the expenditure in respect of such contributions in any financial year shall
not at any time during that year be in excess of one-fourth of the combined total of the
gross income which has up to that time accrued to the general funds of the Trade Union
during that year and of the balance at the credit of those funds at the commencement of
that year; and

 (k) subject to any conditions contained in the notification, any other object notified by the
appropriate Government in the official Gazette.

Constitution of a separate fund for political purposes.-

(1) A registered Trade Union may constitute a separate fund, from contributions separately levied
for or made to that fund, from which payments may be made, for the promotion of the civic and
political interests of its members, in furtherance of any of the objects specified in sub-section (2).

(2) The objects referred to in sub-section (1) are: -

 (a) the payment of any expenses incurred, either directly or indirectly, by a candidate or
prospective candidate for election as a member of any legislative body constituted under
the Constitution or of any local authority, before, during, or after the election in connection
with his candidature or election; or

 (b) the holding of any meeting or the distribution of any literature or documents in support
of any such candidate or prospective candidate; or

 (c) the maintenance of any person who is a member of any legislative body constituted
under the Constitution or of any local authority; or

 (d) the registration of electors or the election of a candidate for any legislative body
constituted under the Constitution or for any local authority; or

 (e) the holding of political meetings of any kind, or the distribution of political literature
or political documents of any kind.

(2A) In its application to the State of Jammu and Kashmir, references in sub-section (2) to any
legislative body constituted under the Constitution shall be construed as including references to
the Legislature of that State.
(3) No member shall be compelled to contribute to the fund constituted under sub-section (1); and
a member who does not contribute to the said fund shall not be excluded from any benefits of the
Trade Union, or placed in any respect either directly or indirectly under any disability or at any
disadvantage as compared with other members of the Trade Union (except in relation to the control
or management of the said fund) by reason of his not contributing to the said fund; and contribution
to the said fund shall not be made a condition for admission to the Trade Union.

Criminal conspiracy in trade disputes.- No office-bearer or member of a registered Trade Union

shall be liable to punishment under sub-section (2) of section 120B Indian Penal Code (45 of 1860),
in respect of any agreement made between the members for the purpose of furthering any such
object of the Trade Union as is specified in section 15, unless the agreement is an agreement to
commit an offence.

Immunity from civil suit in certain cases.-

(1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered
Trade Union or any office-bearer; or member thereof in respect of any act done in contemplation
or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground
only that such act induces some other person to break a contract of employment, or that it is in
interference with the trade, business or employment of some other person or with the right of some
other person to dispose of his capital or of his labour as he wills.

(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil
Court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an
agent of the Trade Union if it is proved that such person acted without the knowledge of, or
contrary to express instructions given by, the executive of the Trade Union.

Enforceability of agreements.- Notwithstanding anything contained in any other law for the time
being in force, an agreement between the members of a registered Trade Union shall not be void
or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of
trade:

Provided that nothing in this section shall enable any Civil Court to entertain any legal proceeding
instituted for the express purpose of enforcing or recovering damages for the breach of any
agreement concerning the conditions on which any members of a Trade Union shall or shall not
sell their goods, transact business, work, employ or be employed.

Right to inspect books of Trade Union.- The account books of a registered Trade Union and the
list of members thereof shall be open to inspection by an office-bearer or member of the Trade
Union at such times as may be provided for in the rules of the Trade Union.

Rights of minors to membership of Trade Unions.- Any person who has attained the age of
fifteen years may be a member of a registered Trade Union subject to any rules of the Trade Union
to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and execute all
instruments and give all acquittances necessary to be executed or given under the rules.

Disqualifications of office-bearers of Trade Unions.-

(1) A person shall be disqualified for being chosen as, and for being, a member of the executive
or any other office-bearer of a registered Trade Union if -

 (i) he has not attained the age of eighteen years,

 (ii) he has been convicted by a Court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period of five years has elapsed since his release.

(2) Any member of the executive or other office-bearer of a registered Trade Union who, before
the commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), has been
convicted of any offence involving moral turpitude and sentenced to imprisonment, shall on the
date of such commencement cease to be such member or office-bearer unless a period of five years
has elapsed since his release before that date.

(3) In its application to the State of Jammu and Kashmir, reference in sub-section (2) to the
commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), shall be
construed as reference to the commencement of this Act in the said State.

Proportion of office-bearers to be connected with the industry.- Not less than one-half of the
total number of the office-bearers of every registered Trade Union shall be persons actually
engaged or employed in an industry with which the Trade Union is connected:
Provided that the appropriate Government may, by special or general order, declare that the
provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in
the order.

Change of name.- Any registered Trade Union may, with the consent of not less than two-thirds
of the total number of its members and subject to the provisions of section 25, change its name.

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-half 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.

Dissolution.-

(1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members
and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to
the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected
in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date
of such registration.

(2) Where the dissolution of a registered Trade Union has been registered and the rules of the
Trade Union do not provide for the distribution of funds of the Trade Union on dissolution, the
Registrar shall divide the funds amongst the members in such manner as may be prescribed.

Returns.-

(1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a
general statement, audited in the prescribed manner, of all receipts and expenditure of every
registered Trade Union during the year ending on the 31st day of December next preceding such
prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of
December. The statement shall be prepared in such form and shall comprise such particulars as
may be prescribed.

(2) Together with the general statement there shall be sent to the Registrar a statement showing all
changes of office-bearers made by the Trade Union during the year to which the general statement
refers, together also with a copy of the rules of the Trade Union corrected up to the date of the
despatch thereof to the Registrar.

(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the
Registrar within fifteen days of the making of the alteration.

(4) For the purpose of examining the documents referred to in sub-sections (1), (2) and (3), the
Registrar, or any officer authorised by him, by general or special order, may at all reasonable times
inspect the certificate of registration, account books, registers, and other documents, relating to a
Trade Union, at its registered office or may require their production at such place as he may specify
in this behalf, but no such place shall be at a distance of more than ten miles from the registered
office of a Trade Union.
REGULATIONS
Power to make regulations.-

(1) The appropriate Government may make regulations for the purpose of carrying into effect the
provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations
may provide for all or any of the following matters, namely: -

 (a) the manner in which Trade Unions and the rules of Trade Unions shall be registered
and the fees payable on registration;

 (b) the transfer of registration in the case of any registered Trade Union which has changed
its head office from one State to another;

 (c) the manner in which, and the qualifications of persons by whom, the accounts of
registered Trade Unions or of any class of such Unions shall be audited;

 (d) the conditions subject to which inspection of documents kept by Registrars shall be
allowed and the fees which shall be chargeable in respect of such inspections; and

 (e) any matter which is to be or may be prescribed.

Publication of regulations.-

(1) The power to make regulations conferred by section 29 is subject to the condition of the
regulations being made after previous publication.

(2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act,
1897 (10 of 1897), as that after which a draft of regulations proposed to be made will be taken into
consideration shall not be less than three months from the date on which the draft of the proposed
regulations was published for general information.

(3) Regulations so made shall be published in the Official Gazette, and on such publication shall
have effect as if enacted in this Act.
PENALTIES AND PROCEDURE
Supplying false information regarding Trade Unions.- Any person who, with intent to deceive,
gives to any member of a registered Trade Union or to any person intending or applying to become
a member of such Trade Union any document purporting to be a copy of the rules of the Trade
Union or of any alterations to the same which he knows, or has reason to believe, is not a correct
copy of such rules or alterations as are for the time being in force, or any person who, with the like
intent, gives a copy of any rules of an unregistered Trade Union to any person on the pretence that
such rules are the rules of a registered Trade Union, shall be punishable with fine which may
extend to two hundred rupees.

Failure to submit returns.-

(1) If default is made on the part of any registered Trade Union in giving any notice or sending
any statement or other document as required by or under any provision of this Act, every office-
bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there
is no such office-bearer or person every member of the executive of the Trade Union, shall be
punishable, with fine which may extend to five rupees and, in the case of a continuing default,
with an additional fine which may extend to five rupees for each week after the first during which
the default continues:

Provided that the aggregate fine shall not exceed fifty rupees.

(2) Any person who wilfully makes, or causes to be made, any false entry in, or any omission from,
the general statement required by section 28, or in or from any copy of rules or of alterations of
rules sent to the Registrar under that section, shall be punishable with fine which may extend to
five hundred rupees.

Supplying false information regarding Trade Unions.- Any person who, with intent to deceive,
gives to any member of a registered Trade Union or to any person intending or applying to become
a member of such Trade Union any document purporting to be a copy of the rules of the Trade
Union or of any alterations to the same which he knows, or has reason to believe, is not a correct
copy of such rules or alterations as are for the time being in force, or any person who, with the like
intent, gives a copy of any rules of an unregistered Trade Union to any person on the pretence that
such rules are the rules of a registered Trade Union, shall be punishable with fine which may
extend to two hundred rupees.

Cognizance of offences.-

(1) No Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try
any offence under this Act.

(2) No Court shall take cognizance of any offence under this Act, unless complaint thereof has
been made by, or with the previous sanction of, the Registrar or, in the case of an offence under
section 32, by the person to whom the copy was given, within six months of the date on which the
offence is alleged to have been committed.
 CONCLUSION

Trade Unions are the product of large scale industrialisation and concentration of
industries. Before the advent of industrialisation there were personal contracts between the
employers and the workers (as the industries were run In the homes and with the tools of the
employer). So there was no need to have any machinery for determining their relationship. But
under the modem factory system this personal contact lost its weight due to setting up of large
scale industrial units, with concentration in towns and with the heavy use of machinery. The
lure of employers, to reduce the cost of production, in order to withstand in the competitive
market and to maximise their profits enabled them to use more and more technologically
advanced devices of production and sophisticated machines which, in turn, have contributed
in further drying up the dampness of the personal relationship

Trade Unionism has made its headway owing to growth of industrialisation and capitalism.
Trade Unionism asserts collectively the rights of the workers. In industrially advanced countries
trade unionism has made a great impact on the social, political and economic life. India, being
an agricultural country, trade unionism is restricted to industrial areas and it is still in a stage of
growth. The earliest known trade unions in India were the Bombay Millhand's Association
formed in 1890, the Amalgamated Society of railway servants of India and Burma formed in
1897, Printers' Union formed in Calcutta in 1905, the Bombay Postal Union which was formed
in 1907, the Kamgar Hitwardhak Sabha Bombay formed in 1910. Trade Union movement began
in India after the end of First World War. After a decade following the end of First World War
the pressing need for the coordination of the activities of the individual unions was recognised.
Thus, the All India Trade Union Congress was formed in 1920 on a National Basis, the Central
Labour Board, Bombay and the Bengal Trades Union Federation were formed in 1922. The All
India Railwaymen's Federation was formed in the same year and this was followed by the
creation of both Provincial and Central federations of unions of postal and telegraph employees.
The origin of the passing of a Trade Unions Act in India was the historic Buckingham Mill case
of 1940 in which the Madras High Court granted an interim injunction against the Strike
Committee of the Madras Labour Union forbidding them to induce certain workers to break their
contracts of employment by refusing to return to work. Trade Union leaders found that they were
liable to prosecution and imprisonment for bona fide union activities and it was felt that some
legislation for the protection of trade union was necessary. In March, 1921, Shri N. M. Joshi,
then General Secretary of the All India Trade Union Congress, successfully moved a resolution
in the Central Legislative Assembly recommending that Government should introduce
legislation for the registration and protection of trade unions. Opposition from employers to the
adoption of such a measure was, however, so great that it was not untill 1926 that the Indian
Trade Unions Act was passed. The Indian Trade Unions Bill, 1925 was introduced in the Central
Legislative Assembly to provide for the registration of Trade Unions and in certain respects to
define the law relating to registered Trade Unions in Provinces of India.
 BIBLIOGRAPHY

BOOKS :

Legislations:

 Trade Unions Act, 1926

 The Industrial Employment (Standing Orders) Act, 1946
 The Industrial Disputes Act, 1947