Formation of Trade Union | Commerce & Accountancy Optional Notes for UPSC PDF Download

Introduction

Trade unions play a crucial role in safeguarding the interests of workers and regulating the relationship between employers and employees. The Trade Unions Act of 1926 in India provides the legal framework for the formation and registration of trade unions.

Eligibility Criteria for Formation

• Minimum Workmen Requirement: Under the Act, a trade union can be formed by either 10 percent of workmen or 100 workmen (whichever is less) of an establishment or factory.
• Minimum Membership: Any union seeking registration must have a minimum of seven members.
• Restriction to Trade Engagement: Workmen forming a trade union must be engaged in the same trade, emphasizing the specific and collective nature of the union's purpose.

Purpose and Restrictive Conditions

• Stipulated Purpose: The Act specifies that the purpose of forming a trade union is to impose restrictive conditions on the conduct of a trade or business or regulate the relationship between employers and employees.
• Prohibited Purposes: Trade unions cannot be formed for purposes other than those outlined in the Act.

Formation and Registration Process

• Application to Registrar: After formation, the trade union can apply to the registrar of trade unions for registration, providing necessary details and fulfilling the statutory requirements.
• Federation Formation: The Act allows for the formation of federations comprising two or more trade unions, promoting collaboration and collective strength.

Unregistered Trade Unions

• Existence of Unregistered Unions: While the Act permits the existence of unregistered trade unions, registration provides legal benefits and protections.
• Legitimacy and Fearless Activities: Registered trade unions can engage in activities fearlessly and legitimately, enjoying specific immunities from criminal and civil liabilities.

Legal Status and Corporate Entity

• Body Corporate: Upon registration, a trade union attains the status of a body corporate, with the ability to acquire a common seal and possess movable and immovable property.
• Contractual Capacity: Registered trade unions can enter into contracts, sue others, and be sued in legal matters.

Immunities and Liabilities

• Legal Immunities: Registered trade unions and their office-bearers benefit from certain immunities, both criminal and civil, not extended to unregistered unions.
• Exception to Immunities: Immunities do not cover agreements to commit offenses, and trade unions are not shielded from liability for unlawful acts committed by workers without the knowledge or against the instructions of union executives.

Conclusion

In conclusion, the Trade Unions Act of 1926 lays down a comprehensive framework for the formation, registration, and functioning of trade unions in India. Understanding the legal provisions is essential for workers and employers alike to navigate the dynamics of industrial relations.