business

1. Trade Union
Prepared By:-
Kamalpreet Saini
Trade Union

2. 2
Trade Union (Content)
 Introduction
 Definition
 Objectives
 Functions/Role
 Advantages
 Rights
 Liabilities
 Recognition
 Amalgamation
 Dissolution
 Registration
Process of membership
 Problems of Trade Union in India and
Remedial measures to overcome them.

3. 3
Advantages
 Trade union certainly plays an important
role in industrial relations. The advantages
of trade union can be divided into the
three:
 Advantages To Workers
 Advantages To Employer
 Advantages To Society

4. 4
Advantages To Workers
 promote unity
 ensures improvement in working conditions and
provision of better welfare facilities.
 spirit of self reliance and self respect
 Change in employer’s attitude
 Uniform Wages

5. 5
Advantages To Employer
 disputes can be avoided or may be solved
amicably (harmoniously, politely) (continuous workflow)
 industrial peace (sense of resp. and loyalty)
 framing healthy labor policies (reduces chance
of industrial disputes in future)

6. 6
Advantages To Society
 gain sympathy of general public (in crisis)
 propose to the Government (to enact labor
policies to protect and develop labor force of the country in
a better way)
 development of industrial economy by
maintaining good industrial relations It will
result in higher and better production at
lower costs.

7. 7
RIGHTS OF A TRADE UNION
 It is a corporate body: The registered trade union
is a corporate body under section 13 of the Act.
 It enjoys immunity (exemption) from criminal
conspiracies
 Section 17 of the Trade Union Act gives immunity
to members and office bearers of registered trade
unions from criminal conspiracy in connection
with trade disputes.

8. 8
RIGHTS…..
 The union can keep separate fund for political
purposes.
 An agreement between the members of a
registered trade union not to accept employment
is valid (not void being agreement in restraint of
trade).
 The union has a right to amalgamate to form a
larger union.
 Members of the union have a right to inspect
books.

9. 9
RIGHTS…..
 Any person who has attained the age of
15 years can become the member of the
union
 The union can enforce the performance of
contracts.

10. 10
LIABILITIES OF TRADE UNION
The Act imposes duties and liabilities on registered trade
unions. They are:
a. CHANGE OF REGISTERED OFFICE:
 If the address is changed, notice in writing must be
given to the Registrar within fourteen days of the change.
The change shall be recorded in the Register.
b. CHANGE OF NAME:
 Any registered trade union may change its name with
the consent o not less than two third of the total number of
its members and subject to the provisions of section 25.

11. 11
LIABILITIES……
c) DISBURSEMENT OF THE TRADE
UNION’S FUNDS:
 The registered union maintains two types
of funds:
 General fund
 Political fund

12. 12
LIABILITIES……
The general funds of a registered trade union cannot be spent
on objects other than those prescribed by the Act. These
are as follows:
 Payment of salaries, allowances and expenses to its office
bearers.
 Payment of expenses for its administration including audit
of account.
 Expenses incurred during prosecuting or defending a legal
action to which the union or any of its members is a party,
when such prosecution or defense is undertaken for the
purpose of securing or protecting any rights of the union or
its members.

13. 13
LIABILITIES……
 Expenses incurred in the conduct of the trade
disputes on behalf of the trade union or any
member thereof.
 The compensation of members for loss arising out
of trade disputes.
 Allowances to members or their dependants on
account of death, old age, sickness, accident or
unemployment of such members.
 Policies of assurance taken to insure members
against sickness, accident or unemployment.

14. 14
LIABILITIES……
 The provision of educational, social or religious
benefits for members or for the dependants of
members.
 Expenses incurred for funeral or religious
ceremonies of deceased members.
 The upkeep of a periodical published mainly for
the purpose of discussing questions affecting
employers or workmen as such.
 Any other object notified by the appropriate
Government in the Official Gazette.

15. 15
LIABILITIES……
The political funds of a registered trade union shall be used for
the promotion of civil and political interests of its members
or in furtherance of any of the objects specified below:
 The holding of any meeting or the distribution of any
literature or documents in support of any such candidate.
 The registration of the electors on the selection of a
candidate for election to any legislative body constituted
under the constitution of any local authority.
 The holding of political meetings of any kind or the
distribution of political literature or political documents of
any kind.

16. 16
d) DISQUALIFICATION OF OFFICE
BEARER OF TRADE UNION:

17. 17
 A person shall be disqualified for being chosen as
or being a member or an executive or an office
bearer of a trade union under the following
circumstances:
· If he has not attained the age of 18 years.
· If he has been convicted by a Court in India to
any offence involving moral turpitude and
sentenced to imprisonment by a Court in India,
unless a period of 5 years has been elapsed since
his release.

18. 18
 However, any person shall not be
disqualified as an office bearer if the
· Offence does not involve moral turpitude.
· Punishment is only pecuniary.
· Disqualification is only for a temporary
purpose.

19. 19
RECOGNITION OF TRADE
UNIONS:
 Though the Indian Trade Union Act 1926
was amended in the year 1947 to include
section 28-C to section 28-I, incorporating
the provisions relating to recognition of a
trade union, these provisions have not
come into operation till date.

20. 20
RECOGNITION BY AGREEMENT
(SECTION 28 C):
A trade union is deemed to be recognized when:
i. The employer accepts o recognize a trade union by entering
into a memorandum of agreement with the officers of the
trade union or their authorized representatives and
ii. The registrar records the memorandum in a register in
prescribed manner.
The trade union, as long as such agreement is in force,
may exercise all the rights of a recognized trade union
under this Act and either party there to on application
made to the Registrar in the prescribed manner may
revoke the agreement.

21. 21
CONDITIONS FOR RECOGNITION BY ORDER OF A
LABOR COURT (SECTION 28 D):
A Labor Court may grant recognition to a trade union by an order
subject to fulfillment of certain conditions:
1. All its members are workmen or representatives of all the
workmen who are employed in the same industry or in an
industry closely allied to or connected with one another.
2. The rules of the trade union:
o Do not contain any provision for exclusion of membership of
any class of the workmen referred to in clause (b).
o Provide for the procedure for declaring a strike.
o Provide for a meeting of its executive to be held at least once
in every six months.
3. In case of a registered trade union all the provisions of the Act
have been duly complied with.

22. 22
APPLICATION TO AND GRANT OF RECOGNITION BY
LABOR COURT (SECTION 28 E):
In the event of failure of a registered trade union to
obtain recognition within a period of three
months from the date of making an application
to an employer:
1. An application along with the particulars as may
be prescribed, be made to the Labor Court.
2. The trade union may be required to submit
further information by the Labor Court, but if it
fails to submit the same within the prescribed
time, the application may be rejected.

23. 23
 3. The Labor Court, after serving notice in the
prescribed manner on the employer, may
investigate to satisfy itself that all the condition
for recognition set out in section 28-D have been
duly complied with.
 4. If the labor court is satisfied it shall make an
order directing such recognition.
 5. Every order made under sub–section (5) shall
be forwarded to the appropriate Government,
which shall notify it in the Official Gazette.

24. 24
AMALGAMATION (SECTION 24):
Any two or more registered trade unions may be amalgamated
together as one trade union with or without dissolution or division
of the funds of such trade unions. Such amalgamation is allowed
if:
1. The votes of at least half of the members of each and every such
trade union entitled to vote are recorded out of which at least 60
percent of the votes recorded are in favor of the proposal of
amalgamation.
2. Notice in writing of every amalgamation signed by the secretary
and by seven members of each and every such trade union, which
is a party there to.
3. Such notice shall be sent to the Registrar of such state in which
the head office of the amalgamated trade union is situated.

25. 25
4 The Registrar is satisfied that all
necessary formalities in respect of
amalgamation have been complied with.
5. The amalgamation of two or more
registered trade unions shall not affect
prejudicially any right of any such trade
union or of a creditor or any of them.

26. 26
DISSOLUTION OF TRADE UNION
(SECTION 27):
 In case a trade union is dissolved:
· A notice of such dissolution signed by seven members and
the Secretary of the trade union must be sent to the
Registrar within fourteen days of such dissolution.
· The registrar shall register the fact of dissolution on being
satisfied that all the formalities in respect of dissolution
have been complied with and the dissolution shall have
effect from the date of such registration by the Registrar.
· If the rules of the trade union do not provide for the
distribution of the funds on dissolution, the Registrar is
authorized by the Act to divide the funds amongst the
members of the union in such a manner as may be
prescribed.

27. 27
Registration Of Trade Union…….
Appointment of registrars
 Government shall appoint
a person to be the Registrar of Trade
Unions
 Government may appoint Additional and
Deputy Registrars of Trade Unions under
the direction of the Registrar to take care
region-wise

28. 28
Registration Of Trade Union…….
Mode of registration
 Any seven or more members of a Trade Union may apply for
registration of the Trade Union under this Act. Application should
include their names, the rules of the Trade Union and should
comply with the provisions of this Act.
 It is necessary that ten per cent or one hundred of the workmen,
whichever is less, should be employees in the establishment or
industry with which it is connected.
 After application and before the registration of the Trade Union if
some of the applicants (half or more of the total number of
persons who made the application) withdraw membership of the
Trade Union or give notice in writing to the Registrar
disassociating themselves from the applications, then the
registration is not given.

29. 29
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 address of the members
making 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.

30. 30
Application for registration
 (2) If Trade Union has been in existence for more than one
year before the making of an application for its registration
then they shall deliver a general statement of the assets
and liabilities of the Trade Union to the Registrar along
with the application.

31. 31
Provisions in registration
A Trade Union shall not be entitled to registration under this
Act, the rules provide the following matters, namely:—
(a) the name of the Trade Union;
(b) All the objectives for which the Trade Union has been
established;
(c) All the purposes for which the general funds of the Trade
Union shall be used. (All should 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 Trade Union;

32. 32
Provisions in registration
(e) 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 (normally paid members for
professional sevice) or temporary members as office-bearers to form the
executive of the Trade Union;
[(ee) The payment of a minimum subscription by members of the Trade Union
which shall not be less than—
(i) one rupee per annum for rural workers;
(ii) three rupees per annum for workers in other unorganized sectors; and
(iii) twelve rupees per annum for workers in any other case;]
(f) Conditions of benefit or any fine to be imposed on the members;

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Provisions in registration
(g) The manner in which the rules shall be amended (changed) ,
varied (incorporation of number of different types of elements ) or rescinded (revoke or
cancel);
(h) The manner in which the members of the executive and
office-bearers shall be elected 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.

34. 34
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.

35. 35
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;
(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 willfully 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;
(c) if the Registrar is satisfied that a registered Trade Union of workmen
ceases to have the requisite number of members
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.

36. 36
Limitations /Problems of Indian Trade
Union
 Predominance of small sized union
 Rival union
 Inadequate coverage
 Weak financial position
 Political domination
 Absence of full-time office-bearers
 Limited stress on welfare activates
 More reliance on strikes and litigation
 Absence of loyalty of workers to union
 Lack of public sympathy

37. 37
Remedial Measures to overcome the problem/Measure to
strengthen the trade union movement in India
 Maintaining Unity
 Free from political influences
 Worker’s Education
 Adequacy of Funds
 Welfare activities for workers

38. 38
Maintaining Unity
 “Unity is strength “
 Unity among the trade unions can be
maintained in different ways-
 All workers should join hands to form a single
union to represent all their demands.
 All unions with different political affiliations
should have one policy, one programme, one
objective and one method of labour
movement.

39. 39
Free from political influences
 One way to strengthen the trade union movement is the
provision of leaders from the rank of workers themselves.
 These union leaders should be full-time paid officers of the
unions having qualities such as literature, organising
capacity, hardworking, cool in temper and patience.
 Leadership qualities among the workers can be developed
through education and training.
 It is this realization that the Asian Trade Union college, at
kolkata is set up to train and educate young men
particularly from the working class.

40. 40
Worker’s Education
 It is the responsibilty of tu to make the
workers realize their responsibilities and
inculcate discipline in them to perform
their job satisfactorily.
 Workers need to be taught- ”first deserve
then desire”

41. 41
Adequacy of Funds
 On account of poor financial resources, the
workers movement/strike did not prolong
and ended in failure. Therefore, the
maintenance of strike fund is a necessity
 Strike pay can be given to the workers
increasing their loyalty and the barganong
power.

42. 42
Welfare activities for workers
 Provision of day School for their children,
night school for adults, opening libraries,
gymnasium co-operative sectors.
 These efforts make the workers loyal t the
unions.

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