Trade Unionism in India

Trade unions play a pivotal role in ensuring the welfare of workers, particularly in a
developing country like India, where industrialization has led to rapid urbanization and
significant changes in labor relations. Trade unionism emerged in India during the colonial
period, growing in strength in response to exploitative labor conditions in industries like
textiles and railways. After independence, trade unions have remained crucial in protecting
workers’ rights, negotiating better wages and working conditions, and participating in the
democratic process.

The Trade Unions Act, 1926 provides the legal framework for the registration, regulation, and
operation of trade unions in India. It also ensures the protection of unions from certain legal
actions, thereby allowing them to function without undue interference from employers or the
state. Trade unions serve as an organized platform for workers to engage in collective
bargaining, improve their working conditions, and address grievances collectively, rather
than individually.

b. Definition of Trade Union and Trade Dispute

Definition of Trade Union:

A trade union, as per the Trade Unions Act, 1926, is defined as an organized group of workers
formed primarily for the purpose of regulating the relations between employers and
employees or between employees and other employees. The main objectives of a trade union
are to protect and promote the interests of its members. These objectives generally include
securing higher wages, improving working conditions, and providing social security
measures such as health care, pensions, and other welfare benefits. Trade unions also act as
a collective voice for workers in the formulation and implementation of labor policies at the
national level.

Trade unions in India can be of different types, including craft unions (formed by workers of
the same trade or craft), industrial unions (covering all workers in a particular industry), and
general unions (representing workers across multiple industries). While their goals may vary,
their common focus is on safeguarding the economic and social interests of workers.

Definition of Trade Dispute:

A trade dispute, according to Indian labor law, refers to any disagreement or conflict between
employers and employees related to employment, non-employment, terms of employment, or
conditions of labor. Trade disputes are often categorized into two broad types:

1. Interest Disputes: These arise when there is a demand for better wages, hours of
work, or other employment conditions. They generally involve negotiations for new terms or
conditions of employment.
2. Rights Disputes: These typically concern the interpretation of existing rights, such
as breaches of employment contracts, disputes over promotions, dismissals, and unfair labor
practices.

Trade disputes can arise for various reasons, including wage demands, dissatisfaction with
working conditions, job security issues, and non-compliance with collective agreements. The
role of trade unions in resolving trade disputes is crucial, as they negotiate with the
employers on behalf of the workers, often through collective bargaining.

Examples of Common Trade Disputes:

• Disputes over wage increases or adjustments.

• Disagreements related to the duration of work hours.
• Disputes concerning health and safety standards in the workplace.
• Conflicts over job security, promotions, or transfers.
• Issues of worker dismissals and retrenchments.

Trade unions also play a significant role in addressing and resolving these disputes through
collective bargaining, mediation, and legal channels.

c. Registration of Trade Unions

i) Legal Status of Registered Trade Union

Once a trade union is registered under the Trade Unions Act, 1926, it attains a distinct legal
identity, separate from its members. This legal status enables the trade union to sue and be
sued in its name, enter into contracts, and acquire, hold, and dispose of property. Registered
trade unions are provided several legal protections, including immunity from certain civil and
criminal liabilities that may arise in the course of lawful trade union activities.

The legal status of a registered trade union ensures that the union can effectively represent
its members, negotiate on their behalf, and take collective actions such as strikes or
demonstrations within the ambit of the law. It also enables the trade union to access its funds
for legitimate activities, such as the provision of benefits to its members.

ii) Mode of Registration

The process for registering a trade union in India is laid out in the Trade Unions Act, 1926. To
begin with, the union must have a minimum of seven members, and at least 10% or 100
workers (whichever is lower) in the industry must be part of the union. The application for
registration is submitted to the Registrar of Trade Unions, and it must include the following:

• The name of the trade union.

• The objectives and rules of the union.
• Names, ages, and occupations of office-bearers.
• A list of members.

Along with these documents, the union must also provide a copy of its constitution, detailing
the management structure, the frequency of general meetings, and the process for electing
office-bearers. The union must also declare that its funds will be used for lawful purposes.

iii) Powers and Duties of Registrar

The Registrar of Trade Unions plays a key role in ensuring that trade unions comply with legal
requirements. Upon receiving an application for registration, the Registrar has the power to
ask for additional information, conduct an investigation, and either grant or refuse
registration based on whether the union fulfills all the conditions. The Registrar must ensure
that the union is not being formed for unlawful purposes and that its objectives are aligned
with the legal definition of a trade union.

Once the union is registered, the Registrar also has a duty to maintain records of all
registered trade unions in the region and ensure that they submit annual returns, detailing
their financial position, activities, and membership.

iv) Cancellation and Dissolution of Trade Union

The Registrar also holds the power to cancel the registration of a trade union under certain
circumstances. For instance, if the trade union has ceased to exist, has violated provisions of
the Trade Unions Act, 1926, or has failed to comply with the rules concerning financial
management, the Registrar can initiate the process for canceling its registration. A
registered trade union may also voluntarily dissolve if its members agree to the dissolution
by following the procedures outlined in its constitution.

v) Procedure for Change of Name

A registered trade union can change its name by passing a resolution in a general meeting of
its members. The union must submit a formal application to the Registrar, including a copy of
the resolution and an updated constitution reflecting the name change. Once approved by
the Registrar, the change of name is officially recognized.

vi) Amalgamation and Dissolution of Trade Union

Two or more registered trade unions may amalgamate into a single entity by passing a
resolution in general meetings of their respective memberships. The application for
amalgamation is submitted to the Registrar, along with details of the proposed union’s name
and objectives. Amalgamation provides a way for unions to consolidate their power and
resources, thereby enhancing their bargaining strength.

Dissolution of a trade union occurs when the union ceases to exist, either due to voluntary
dissolution by its members or by the Registrar canceling its registration. When dissolving
voluntarily, the union must settle all its debts and distribute any remaining assets among its
members according to its constitution.

d. Disqualifications of Office-Bearers, Rights and Duties of Office-Bearers and Members

The office-bearers and members of a trade union have specific responsibilities and rights,
both individually and collectively. The Trade Unions Act, 1926 outlines the conditions under
which individuals can serve as office-bearers and the rights they possess in representing
workers’ interests.

Disqualifications of Office-Bearers:
An individual is disqualified from being an office-bearer of a trade union if:

• They have been convicted of a crime involving moral turpitude unless five years
have passed since their release.
• They are not engaged in or employed in the industry with which the trade union is
connected, except for those designated as honorary members.
• They fail to comply with the age restrictions prescribed by the union’s constitution
or the law.

Rights and Duties of Office-Bearers:

The office-bearers of a trade union are responsible for the effective management of the
union’s activities. Their duties include representing the union in negotiations with employers,
handling the union’s funds, ensuring that the union’s constitution is followed, and leading
collective actions like strikes or demonstrations. Office-bearers are also tasked with
maintaining transparent communication with the union’s members and keeping them
informed about the status of negotiations or any disputes with employers.

Office-bearers have the right to act on behalf of the union in all legal and industrial matters.
They are protected under the law from certain liabilities while performing these duties, as
long as their actions are lawful and in the interest of the union.
Rights and Duties of Members:
Members of a trade union have the right to participate in its activities, vote in general
meetings, and run for office within the union. They are entitled to the benefits provided by
the union, such as legal representation, financial aid, and access to welfare services.

However, members also have certain duties. They must abide by the rules and regulations of
the union, pay membership fees regularly, and support the collective decisions made by the
union. In case of strikes or collective actions, members are expected to act in solidarity and
refrain from any activity that may undermine the union’s objectives.

e. General and Political Funds of Trade Union

Registered trade unions are entitled to maintain two types of funds under the Trade Unions
Act, 1926: a General Fund and a Political Fund. These funds are essential for the smooth
operation of the union and for supporting its activities, including providing benefits to
members and engaging in political advocacy when necessary.

General Fund:
The General Fund is used to cover the day-to-day expenses of the trade union. This includes
paying office rent, salaries of staff, legal fees, expenses for organizing meetings or strikes,
and welfare benefits for members. The General Fund also supports activities such as
educational initiatives for members, research on labor conditions, and efforts to promote
labor welfare through legal and peaceful means.

The trade union may also use its General Fund to assist members during periods of
unemployment or strikes, provide compensation to injured workers, and support the families
of deceased members.

Political Fund:
While trade unions are generally non-political bodies focused on industrial and labor issues,
the law permits them to engage in certain political activities through the creation of a
separate Political Fund. This fund is used to contribute to political parties, sponsor
candidates in elections, or support policies that directly impact the working class. However,
participation in political activities is voluntary for union members, and those who do not wish
to contribute to the Political Fund may opt out without facing penalties.

The Political Fund can also be used to promote labor-friendly legislation and engage in
lobbying efforts to influence government policy. However, all political activities funded by the
trade union must be aligned with its overall objective of improving workers’ welfare.

f. Civil and Criminal Immunities of Registered Trade Unions

One of the primary benefits of registration under the Trade Unions Act, 1926 is the legal
immunities provided to registered trade unions. These immunities protect unions from civil
and criminal liabilities in the course of lawful trade union activities.

Civil Immunities:
Registered trade unions are immune from certain civil suits in respect of acts done in
furtherance of a trade dispute. This means that trade unions cannot be sued for conspiracy
to commit a civil wrong, provided their actions are lawful and aimed at promoting the
interests of their members. For instance, trade unions are protected from being sued for
organizing strikes or boycotts if these actions are carried out peacefully and within the legal
framework.

Additionally, trade unions are immune from suits related to the enforcement of agreements
between members concerning trade disputes. This protection ensures that members can
engage in collective bargaining and other activities without fear of individual legal
repercussions.

Criminal Immunities:
Similarly, registered trade unions are protected from criminal prosecution for certain actions
taken in connection with a trade dispute. For instance, peaceful picketing or persuading
workers to join a strike is protected under the law. However, these immunities are not
absolute, and unions may still be held liable for illegal activities such as violence,
intimidation, or destruction of property.

The immunities provided to trade unions are crucial in allowing them to function effectively
and pursue their objectives without fear of legal retaliation by employers or the state.

g. Recognition of Trade Union

The recognition of a trade union by employers or the government is an important aspect of

industrial relations in India. Recognition gives the union the right to represent workers in
collective bargaining and other negotiations with employers.

In India, trade union recognition is generally based on the principle of majority

representation. A trade union that represents the majority of workers in a particular
establishment or industry is usually recognized by the employer as the bargaining agent for
all workers. Recognition can be granted voluntarily by the employer or through a formal
process, such as a government-ordered election.

The Industrial Disputes Act, 1947, and the Code on Industrial Relations, 2020, outline the
framework for recognizing trade unions. Once recognized, the trade union has the authority
to negotiate on behalf of workers concerning wages, working conditions, and other
employment-related matters. Recognition also gives the union access to grievance redressal
mechanisms and ensures that the employer must consult with the union before implementing
significant changes in employment terms.

Recognition is essential for the union’s effectiveness in collective bargaining, as it gives the
union legitimacy in the eyes of both the employer and the workers. However, unrecognized
unions may still operate, but their ability to influence negotiations is limited.

h. Collective Bargaining

Collective Bargaining is the process through which trade unions negotiate with employers on
behalf of their members to secure better working conditions, higher wages, and other
employment benefits. It is a crucial mechanism for ensuring that workers’ voices are heard
and that they have a say in determining the terms and conditions of their employment.

In India, collective bargaining has been instrumental in improving labor relations, particularly
in industries with a high degree of unionization, such as textiles, mining, and railways. The
collective bargaining process typically involves discussions between union representatives
and the employer, with the aim of reaching a mutually beneficial agreement. If negotiations
break down, unions may resort to strikes or other forms of industrial action to press their
demands.

The right to engage in collective bargaining is recognized by Indian labor law, and both the
Industrial Disputes Act, 1947, and the Code on Industrial Relations, 2020, provide legal
frameworks for resolving disputes arising from collective bargaining. However, the
effectiveness of collective bargaining in India is often hampered by factors such as the
existence of multiple unions within a single establishment, political interference, and the
reluctance of employers to recognize unions.

Despite these challenges, collective bargaining remains a powerful tool for improving labor
standards and ensuring that workers are treated fairly in the workplace. It allows workers to
negotiate on an equal footing with employers, thereby promoting industrial harmony and
preventing exploitation.

These notes provide an expansive overview of trade unionism in India, covering the key
aspects required for understanding the legal, social, and economic dimensions of trade
unions and their role in industrial relations.