LABOUR LAW PROJECT

REGISTRATION OF TRADE UNIONS

BY
LAKSHMINARAYAN.R
769
 REGISTRATION OF TRADE UNIONS

What is a Trade Union?

Trade Unions are the group’s set-up with the aim of trying to create fairness and
job security in a workplace. A trade union is an organization of workers who have
banded together to achieve common goals in key areas such as wages, hours, and
working conditions. Basically a trade union bargains with the employer on behalf
of union members and negotiates with employers. Freedom of association has been
the corner stone of society. This freedom finds its expression in a democratic form
of government. Trade unionism has been a movement launched against the
concentration of economic power in the hands of a few individuals of society and
for the purpose of promoting the welfare of working class. Trade union movement
is not confined to the premises of one nation or country but it has widened to the
international field as well. It may be desirable to mention that besides trade unions
in specific countries, there is one international organisation of working class
known as International Labor Organisation (ILO) for promoting labour welfare.

Trade unionism is over a century old in India and is defined under the Trade
Unions Act 1926, as any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen or between employers and
employers or for imposing restrictive conditions on the conduct of any trade or
business, and includes any federation or two or more trade unions. Trade unions
are those unique organisations whose role has been understood differently by
different groups of the society but the real role has been to protect jobs and
earnings, better working conditions, maintaining fairness and equity and the social
security of all its members.

The object of Trade Unions Act, 1926 is to provide for registration of Trade unions
and to define law relating to registered trade unions in certain aspects. The Indian
Trade Union Act was passed in 1926and came into force on the 1st June,1927. In
the year 1925 the Government of India, after consulting the State Governments
drew up a Bill providing for the registration of trade unions and introduced the
same in the Legislative Assembly on the 1st August,1925. The Indian Trade Union
Act was passed in 1926and came into force on the 1st June,1927. Although two
amending Acts were passed in 1928 and 1942, no major changes were introduced
in the Act till 1947. In 1947, an amending Acct was passed which provided for
compulsory recognition of the representative Unions by the employers, and listed
certain practices on the part of recognized Unions. These provisions of the
amended Act, however, have not been brought into force.

According to section 2 (h) of the Act, “Trade Union” means any combination,
whether temporary or permanent, formed primarily for the purpose of regulating
the relations between workmen and employers or between workmen and workmen,
or between employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any federation of two or more Trade
Unions. Thus, the present article shall deal with the most important aspect of trade
union, and that is the registration of trade unions.

Thus, technically, there can be ‘union’ of employers also, though, almost

universally, the term ‘trade union’ is associated with union of workmen or
employees.
Appointment of Registrars

According to section 3 of the Act, the appropriate government shall appoint a

person to be the Registrar of Trade Unions for each state, and the appropriate
government shall also appoint as many additional registrars as it may deem fit to
carry out the purposes of the Act.

Mode of Registration

According to section 4 of the Act, any seven or more members of a Trade Union in
accordance with the provisions of the Act may make an application apply for
registration of the trade union. There are two conditions subsequent to the same,
firstly no trade union of workmen shall be registered unless at least 10% or 100 of
the workmen, whichever is less engaged in the employment of the establishment
are its members on the date of making of its application and secondly no trade
union shall be registered unless on the date of making of application, minimum
seven of its members who are workmen are employed in the establishment or
industry.

Also, such application shall not be deemed to be invalid merely on the ground that
at any time after the date of the application, but before the registration of the trade
union some of the members but not exceeding half of the total number of persons
who made the application has ceased to be members.

Application for registration

According to section 5 of the Act, every application for the registration of the 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-
 1. The names, occupations and addresses of the members making the
application;
2. The name of the trade union and the address of its head office, and
3. The titles, names, ages, addresses and occupations of the office- bearers
of the trade union.

Where a trade union has been into existence for more than a year, then a copy of
the assets and liabilities shall also be submitted along with the application for
registration.

Provisions to be contained in the rules of a Trade Union

According to section 6 of the Act, a Trade Union shall not be entitled to

registration under the Act unless the executive committee has been established in
accordance with the provisions of the Act and the rules provide for the following-

1. The name of the trade union;

2. The whole of the objects for which the trade union has been established;
3. The whole of the purposes for which the general funds of the trade union
shall be applicable;
4. The maintenance of a list of the members of the trade union;
5. The admission of ordinary members who shall be persons actually
engaged or employed in an industry with which the trade union is
connected;
6. 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;
7. The manner in which the rules shall be amended, varied or rescinded;
 8. The manner in which the members of the executive and the other office
bearers of the Trade Union shall be elected and removed;
9. 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;
10.The manner in which the trade union may be dissolved.

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

According to section 7 of the Act, the registrar may call for further information for
the purpose of satisfying himself that whether all the particulars are in accordance
with section 5 and 6 of the Act.

In case the trade union applying for registration bears a name identical to that of an
existing trade union and the registrar feels that the name so resembles that of the
other that there are fairs chances of the persons being misled then the registrar shall
ask the trade union applying to change the name and shall refuse to register the
same until such alteration has been made.

Registration

According to section 8 of the Act, if the registrar thinks that the trade union has
complied with all the provisions of the Act, it shall register the Trade Union by
entering in a register all the particulars in accordance with the provisions of the
Act.
In fact, section 8 imposes the statutory duty upon trio Registrar to register Trade
Union on being satisfied that It has complied with all his duty within a reasonable
time may attract the interference of the Court under Article 226 of the Constitution
commanding the Registrar of Trade Unions to perform the statutory duty imposed
upon him under Sections 7 and 8 of the Act with the required promptitude (A.C.C
Ratanks Lime Stone Quarries Niaztioor Union V Registrar of Trade Union( 1958).

In Keshorem Rayon Workers Union V. Registrar of Trade Unions, 1968, it was

held that the workmen of an industrial establishment can form as many unions as
they like. There is nothing in the Act that bars the formation of rival Unions or
requires a Union applying for registration to give notice to all existing Unions.
When a Union seeks registration, all that it has to do Is to ensure that the previsions
of the Act, Rules and Regulations made there under relating to registration of
Trade Union have been complied with.

In Hindustan Copper Mazdoor Sangh V. Chief Labour Commissioner, (1968), it

was held that the right of the workers to form trade unions is a fundamental right
and any Trade Union satisfying the requirements of the Trade Unions Act, 1926 is
entitled to registration

Certificate of registration

According to section 9 of the Act, the registrar shall issue a certificate of

registration to the trade union after registration under section 8 which shall be
conclusive proof that a trade union has been duly registered.
Cancellation of registration

According to section 10 of the Act, a certificate of registration of a trade union

may be cancelled or withdrawn or an application of the trade union to be verified
in such manner as may be prescribed; where  the registrar is satisfied that the
certificate has been obtained by fraud or mistake or the trade union has ceased to
exist or has willfully and other notice from the registrar contravened any
provisions of the Act and if the registrar is satisfied that a registered trade union
ceases to have requisite number of members.

In Hindustan Copper Mazdoor Sangh V. Chief Labour Commissioner,(1986), it

was held that on a plain reading of Sec. 10 (b) Trade Unions Act, it must be held
that a prior notice, apart from the one for the proposed action for cancellation or
withdrawal of certificate of registration as contemplated under the proviso to Sec,
10 has to be given by the Registrar in a case where there is any allegation of or
contravention of any provisions of this, Act by the Trade Union, in absence of such
a prior notice, any proceeding for cancellation or withdrawn of registration is
illegal and without jurisdiction.

In Mysore Iron and Steel Works Labourers Association V Commissioners of

Labour and Registrar of Trade Unions in Mysore, it was held that the notice
contemplated under the proviso to Sec 10 of the Trade Unions Act, is mandatory,
The Registrar is not competent to pass an order cancelling registration without in
the first instance giving the requisite notice and giving an opportunity to the Trade
union to show cause against the proposed action.

Appeal
According to section 11 of the Act, any person aggrieved by any refusal to register
a trade union or withdrawal of registration, etc by registrar may file an appeal
where the trade union head office is situated within the limits of a presidency town
to the High Court, or 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.

On an application to the appropriate forum, the court may either dismiss the appeal
or pass an order directing the registrar to take appropriate measures.

The court shall have the same powers of a civil court under Civil Procedure Code,
1908 and may follow the same procedures.

The highest appeal can be made to the High Court.

Registered office

According to section 12 of the Act, all communications shall be made on the

registered office of the trade union

Incorporation of registered trade union

According to section 13 of the Act, every registered trade union shall be a body
corporate having a common seal and perpetual succession with power to acquire
and hold movable and immovable property and shall by the said name sue and be
sued. No civil suit or other legal proceeding can be initiated against a registered
trade union in respect of any act done in furtherance of a trade dispute under
certain conditions. No agreement between the members of a registered trade union
shall be void or voidable merely on the ground that any of its objects is in restraint
of trade.

The Kerala Trade Unions Regulations, 1958

State of Kerala has framed the Kerala Trade Unions Regulations, 1958. As per
Regulation 3, every application for registration shall be in Form A and as per
Regulation 5, the fees payable for registration is rupees five hundred.

As per Regulation 4, the Registrar who receives an application may require from
the applicants evidence to show that the applicants have been duly authorized to
make the application on behalf of the Trade Union. As per Regulation 13, an
Appeal under Section 11 of the Act should be filed within two months of passing
of the order being appealed against.

Conclusion

The presence of trade unions establishes a healthy relationship between the

employer and workmen with a sense of responsibility towards each other. Trade
unions define and channelize the rights of the workers with pressure on the
employer to not deceit them. The registration of Trade Union ensures that a trade
union duly certified and recognized and thereby the provisions for same are laid
down exhaustively in the Act.