Registration of Trade Unions | Labour and Industrial Law - CLAT PG PDF Download

Procedures for the Registration of Trade Unions

The Trade Unions Act, 1926 aims to establish a framework for the registration and regulation of Trade Unions. While registration is not mandatory, it is recommended as registered Trade Unions enjoy various benefits, immunities, and protections under the Act.

• Members of registered Trade Unions are entitled to certain protections, immunities, and exceptions from civil and criminal liabilities. Registration under the Trade Unions Act, 1926 is the only means for a trade union to be officially recognized.
• Though the Act does not enforce compulsory registration, the drawbacks of non-registration make it advisable to register the trade union. The following outlines the procedure for registering a trade union.

Appointment of Registrar

• Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a Registrar of Trade Unions.
• The Government can also appoint additional and Deputy Registrars as needed to exercise the powers and duties of the Registrar.
• These appointees work under the supervision and direction of the Registrar and may exercise specified powers and functions within local limits.

Mode of Registration

Application for registration

• Application for registration must be submitted in the prescribed format. Sec 5 provides that, 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:
• the names, occupations and addresses of the members making the application;
• in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making the application;
• the name of the Trade Union and the address of its head office; and
• the titles, names, ages, addresses and occupations of the 4 office-bearers of the Trade Union.

Provisions to be contained in the rules of a Trade Union

• Every application must accompany the rules of trade union that has been provided under Sec 6 of the Act. 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:
• the name of the Trade Union;
• the whole of the objects for which the Trade Union has been established;
• 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 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.
• 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.
• the payment of a minimum subscription by members of the Trade Union which shall not be less than one rupee per annum for rural workers, three rupees per annum for workers in other unorganized sectors nd twelve rupees per annum for workers in any other case.
• 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.
• The manner in which the rules shall be amended, varied or rescinded the manner in which the members of the executive and the other office-bearers of the Trade Union shall be elected and removed the duration of period being not more than three years, for which the members of the executive and other office-bearers of the Trade Union shall be elected.
• 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  the manner in which the Trade Union may be dissolved.

Power to call for further particulars and to require alteration of name

• Under Sec 7 of the Act, the Registrar has power to 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.
• It further states that, 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

• Certificate of registration: Sec 9 of the Act empowers 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.
• Minimum requirement about membership of a Trade Union: Sec 9-A provides that, a registered Trade Union of workmen shall at all times continue to have not less than ten percent or one hundred of the workmen, whichever is less, subject to a minimum of seven, engaged or employed in an establishment or industry with which it is connected, as its members.

Cancellation of registration

A certificate of registration of a Trade Union may be withdrawn or cancelled under Sec 10 of the Act, by the Registrar

• on the application of the Trade Union to be verified in such manner as may be prescribed;
• 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;
• if the Registrar is satisfied that a registered Trade Union of workmen ceases to have the requisite number of members:

Appeal

• 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 under Sec I I of the Act.
• Where the head office of the Trade Union is situated within the limits of a Presidency town to the High Court.
• Where the head office is situated in an area, falling within the jurisdiction of a Labour Court or an Industrial Tribunal, to that Court or Tribunal, as the case may be where the head office is situated in any 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.
• 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 or withdrawal or cancellation of the certificate, as the case may be, and the Registrar shall comply with such order.

Advantages of registration of trade Union

• A trade union enjoys the following advantages after registration under sec 13, namely
• A trade union after registration becomes a body corporate
• It gets perpetual succession and common seal
• It can acquire and hold both movable and immovable property
• It can enter into a contract
• It can sue and be sued in its registered name

Contribution to political fund is not compulsory

• The subscription to a trade union for political funds is only voluntary. Sec 16 (3) provides that, If a member does not contribute to the political fund, he will be under no disadvantage or disability but in respect of control and management of this fund. He cannot be excluded in any way from the benefits of the trade union nor can any condition be imposed for his admission to the trade union.

Immunities and Privileges of Registered Trade Unions

The Trade Unions Act, 1926 offers protections to members and office-bearers of registered trade unions against criminal and civil conspiracies during strikes, safeguarding them from legal repercussions for causing financial losses to employers. This legal framework acknowledges the historical imbalance in labor relations, where workers' rights to negotiate terms and conditions were often undermined by statutes favoring employers.

• Immunity from Criminal Conspiracy: Section 17 of the Trade Unions Act, 1926 provides immunity to office-bearers and members of registered trade unions from liability for criminal conspiracy under Section 120-B of the Indian Penal Code. This protection applies to agreements made to further the objectives of the trade union, as specified in Section 15 of the Act, except for agreements to commit an offence.
• Immunity from Civil Actions: Section 18 of the Trade Unions Act, 1926 grants immunity to registered trade unions from civil suits in respect of acts done in contemplation or furtherance of a trade dispute. This immunity protects trade unions and their members from legal actions based solely on inducing someone to break a contract of employment or interfering with another person's trade, business, or employment rights.]
• Enforceability of Agreements: Section 19 provides protection to agreements between members of a registered trade union that are in restraint of trade, regardless of any other law declaring such agreements void or voidable.

Problems Faced by Trade Unions in India

Trade unions in India face several challenges that impact their effectiveness and ability to advocate for workers' rights. These challenges include:

1. Multiplicity of Unions: Unlike developed countries, India has a large number of trade unions, often within the same industrial unit. This proliferation can lead to rival unions harming workers' interests.
2. Absence of Union Structure: Trade unions in India lack a clear structure, such as craft unions or industrial unions. The absence of craft unions, where workers with specific skills are organized, is particularly notable. The National Commission on Labour has recommended the formation of industrial unions and federations to address this issue.
3. Limited Membership: Trade unions in India often struggle with low membership numbers. A strong union typically requires a large membership base to be effective, but many unions have limited enrollment.
4. Scarcity of Finances: Financial resources are a significant problem for trade unions in India. Fragmentation and low membership fees contribute to limited finances, making it challenging for unions to engage in welfare activities for members.
5. Small Size: Due to limited membership, many trade unions in India are small. A significant percentage of unions have fewer than 500 members, which limits their influence and capacity.
6. Lack of Unity: The trade union movement in India is weakened by a lack of unity among various unions. Labour leaders often have political affiliations that prioritize political gains over workers' welfare, further fragmenting the movement.
7. Lack of Trained Workers: Many workers in India are uneducated and untrained, making them vulnerable to exploitation. Politicians, who may not prioritize workers' welfare, often become union leaders. The backwardness of workers and fear of victimization discourage active participation in union activities.
8. Political Dominance: Trade unions in India are often controlled by political parties. Political agendas can overshadow genuine workers' interests, leading to exaggerated demands and disruptions in industrial peace.
9. Hostile Attitude of Employers: Employers may respond to trade union activities with hostility, including blacklisting or harassing union leaders. Employers' unions may oppose workers' interests, further complicating the labor landscape.
10. Other Reasons: Other factors contributing to the weakness of trade unions include recruitment practices through middlemen that prevent workers from joining unions, divisions among workers based on caste and linguistic differences, and a lack of focus on members' welfare activities by unions.

The weak position of trade unions hinders the collective bargaining process, making adjudication a more common method for resolving industrial disputes. Strengthening trade unions is crucial for the welfare of workers, management, and the community as a whole.

Amalgamation of Trade Unions
Section 24 of the Trade Unions Act, 1926 allows for the amalgamation of two or more registered trade unions into one, with or without the dissolution or division of funds. The amalgamation requires the approval of at least one-half of the members of each union entitled to vote, with at least sixty percent of the votes in favor.

Notice of Change of Name or Amalgamation
Section 25 mandates that notice of any change of name or amalgamation be sent to the Registrar. In case of a change of name, the notice must be signed by the Secretary and seven members of the trade union. For amalgamation, the notice must be signed by the Secretary and seven members of each trade union involved. If the head office of the amalgamated trade union is in a different state, the notice must also be sent to the Registrar of that state.