final labour project

Amalgamation of Trade Union

Project Work of Labour Law I

On

“Amalgamation of Trade Union”

Submitted To:-Dr. S. C. Roy

Faculty of Labour Law

Submitted By: -

Ankit Anand

Roll No. 916

2nd Year B.A. LL.B. (Hons)

CHANAKYA NATIONAL LAW UNIVERSITY


ACKNOWLEDGEMENT

I am highly elated to have worked on my research topic “Amalgamtion of Trade Union”

under the guidelines of Dr. S. C. Roy Faculty of Labour Law I. I am very grateful to him

for his proper guidance.

I would like to take this opportunity to express my profound gratitude and deep regard to him

for his exemplary guidance, valuable feedback and constant encouragement throughout the

duration of the project.

His valuable suggestions were of immense help throughout my project work.

His perceptive criticism kept me working to make this project in a much better way.

Working under him was an extremely knowledgeable experience for me.

I would also like to thank all my friends and my seniors and apart from all these I would like

to give special regard to the librarian of my university who made a relevant effort regarding

to provide the materials to my topic and also assisting me.

Finally I would like to thank my parents and brother for their immense support and presence

during this whole project work.

Ankit Anand



Table of Contents:-

1. Introduction (Trade Union)…………………………………………………………..04

2. Aims and Objectives……………………………………………………………..…..05

3. Research Methodology………………………………………………………………05

4. Source of Data……………………………………………………………………….06

5. Trade Union :- An Overview…………………………………………………………06

Objective of this Act…………………………………………………………………06

Applicability of this Act……………………………………………………………...06

Provision of this Act………………………………………………………………….07

6. Registration of Trade Union………………………………………………………….09

The Industrial employment (Standing Orders) Act, 1946……………………………09

The industrial Dispute Act, 1947…………………………………………………….09

7. Industrial Relation Machinery……………………………………………………….10

Conciliation…………………………………………………………………………..10

Adjudication………………………………………………………………………….11

Role of Government………………………………………………………………….11

8. Objective of Trade Union…………………………………………………………….12

Representation………………………………………………………………………..12

Negotiation…………………………………………………………………………...12

Collective Bargain……………………………………………………………………13

9. Reason for worker to join Trade Union………………………………………………16

Function of Trade Union……………………………………………………………..17

Essential of Trade Union……………………………………………………………..17

Advantage of Trade Union…………………………………………………………..18

Pattern and Structure of Trade Union………………………………………………..19

Factors affecting the growth of Trade Union………………………………………...19

Statutory Necessity of Trade Union………………………………………………….21

10. Amalgamation of Trade Union……………………………………………………….21

11. Case Study……………………………………………………………………………23

12. Conclusion……………………………………………………………………………24

13. Bibliography………………………………………………………………………….25



Introduction:-

The institution of Trade union, though comparatively recent in origin has become a powerful

force by way of its direct influence in the social and economic life of industrial workers.

Sydney and Beatrice Webb considered Trade Unionism to be "the extension of the principle

of democracy in the sphere of industry".1 Unfortunately this broad idea is weakened by

causes not too far to seek; multiplicity of unions, placing political ideology before economic

interests and to some extent insufficient leadership.

Since the conflict or co-operation between workers and management is greatly influenced by

the nature of the workers organisation and the processes that induce their structure, study of

Trade Union becomes a critical topic in the industrial relations area. In this chapter an effort

is made to study the origin of Trade Unions in India, the nature and pattern of unions, the

relations within the unions, its consequences for the structure and behaviour of Trade Unions

in the Industry and the implications they leave to be marked and provide in the years to come.

Workers Organisation - A Necessity and its Realisations in India.2

Trade Unions are the product of large scale industrialisation and concentration of industries.

Before the advent of industrialisation there were personal contracts between the employers

and the workers (as the industries were run In the homes and with the tools of the employer).

So there was no need to have any machinery for determining their relationship. But under the

modem factory system this personal contact lost its weight due to setting up of large scale

industrial units, with concentration in towns and with the heavy use of machinery. The lure of

employers, to reduce the cost of production, in order to withstand in the competitive market

and to maximise their profits enabled them to use more and more technologically advanced

devices of production and sophisticated machines which, in turn, have contributed in further

drying up the dampness of the personal relationship. Simultaneously it had given rise to a

new class of workers who were dependent on wages only for their livelihood and had come

from different parts of the country, for seeking employment in these industries.3

1 G B Ramanujan, Story of Indian Labour, Everest Press, Delhi, 1 986,p.400.2 R. Banerjee, "Industrial Relations in India", Indttstrial Relations, 32(5) Sept- Oct, 1978,pp.171-1883 R.N. Pandey, "Labour legislation in India, growth and development", Indian Labour Journal, 20 September 1979, pp.1673-16 81



Trade Unions and Related Legislation

The Trade Unions Act, 1926

The Trade Unions Act was passed in 1926 under the title of the Indian Trade unions Act and

was brought into effect from I" June 1927" by a government. The act was amended in 1947,

1960 and 1962. Subsequently, the word 'Indian' was deleted from the amended Act of 1964,

which came into force from 1 " April 1 965.

It was enacted to provide for the registration of the trade unions and in certain respects to

define the law relating to registered trade unions.

1. This Act may be called the Trade Unions Act, 1926

2. It extends to the whole of India.

3. It shall come into force on such date52 as the central government may,by notification

in the official gazette, appoint

AIMS AND OBJECTIVES

The prime objective of the researcher is to:

• To acquaint himself with the meaning of Trade Union.

• To know various function and objective of Trade Union.

• To know essential, advantage, disadvantage of Trade Union.

• To know the various types of Trade Union.

• To know the factor affecting the growth of Trade Union.

• To Know how trade union amalgamate.

• To acquaint with the various case law related with amalgamation of Trade Union.

RESEARCH METHODLOGY

The various books, various articles, websites, Law journals, Acts, Treatises, are referred for

this topic. The sources from which the material for this research collected are primary &

secondary. The methodology used in the research has been Doctrinal. No non-doctrinal

method has been used by the researcher in this project work.



SOURCES OF DATA

• Primary Sources: - 1. Labour and Industrial Laws

2. Code of Criminal Procedure

• Secondary Sources: - 1. Books on Labour and Industrial Laws

2. Books on Code of Criminal Procedure

3. Magazines

4. Websites

5. Journals etc.

Trade Union:-

Objective of the Act4:-

The Act was enacted with the object of providing for the registration of trade unions and

verification of the membership of trade unions registered so that they might acquire a legal

and corporate status. As soon as a trade union is registered, it is treated as an artificial person

in the eyes of the law, capable of enjoying rights and discharging liabilities like a natural

person. In certain respects, the act attempts to define the law relating to registered trade

unions. The Act, apart from the necessary provisions for administration and penalties, makes

provisions for:-

a. Conditions governing the registration of trade unions.

b. The obligations of a registered trade union; and

c. The rights and liabilities of registered trade unions.

Applicability of the Act:-

The Act extends to the whole of India. The words "except the state of Jamrnu and Kashmir'

have been omitted by the amended Act of 1970 with effect from 1st September 1971.The Act

applies not only to the unions of workers but also to the associations of employers.

The Act is a central legislation, but it is administered and enforced mostly by state

governments. For the purpose of this act, the Central government handles the cases of only

those unions whose activities are not confined to one state. All other unions are the concern

of state governments. The registrars of trade unions are appointed both by the central and

state governments. They can also appoint additional or Deputy Registrars who may exercise

4 lst June, 1927, see Gazette of India, 1927 p.467.



the powers and functions of the Registrars, as they think fit so as to obviate delays in the

disposal of applications for the registration of trade unions.

General Scheme of the Act:-

The Act is divided into 33 sections and contains 5 chapters.

Chapter I deal with the title, scope and commencement of the Act, together with important

definitions (Section 1 and 2).

Chapter II discusses the various aspects of registration of trade unions, viz., appointment of

Registrars (sec.3) mode of registration. (Sec.4) submission of application for registration

(Sec.5); provisions to be contained in the rules of a trade union (sec.6) power to call for

further particulars and alteration of name (sec.7) registration (sec.8); issue of certificate of

registration (sec.9); cancellation of registration (sec. 10); making of appeals (sec. l 1);

location of registered offices of the trade unions (sec.12); incorporation of registered trade

unions (sec. 13); and the non-applicability of certain acts to registered trade unions (sec. 14).

Chapter III describes the rights and liabilities of registered trade unions, i.e., it deals with the

objectives for which general funds may be spent (sec. 15); the constitution of a separate fund

for political purposes (sec.16); criminal conspiracy in trade disputes-immunity (sec. 17);

immunity against civil suit (sec. 18), enforceability of agreements (sec. 19); right of

inspecting books of trade unions (sec.20); rights of minors to membership of trade unions

(sec. 21); disqualification of office-bearers of trade unions (sec.21 .A); proportion of officers

to be connected with the industry (sec.22); change of name of trade union (sec.23);

amalgamation to trade unions (sec. 24); notice of change of name or amalgamation of trade

unions (sec.25); effects of change of name and amalgamation (sec.26); dissolution of trade

unions (sec. 27); and filing returns by trade unions (sec.28).

Chapter IV deals with powers to make regulations (sec.29); and publication of regulations

(Sec.30).

Chapter V deals with the consequence of failure to submit returns (Sec.31); Supplying false

information regarding trade unions (Sec.32); and cognizance of offences (Sec.33).

Provisions of the Act:-

The main provisions of the act relate to

1. Definition

2. Registration of trade unions



3. Duties and liabilities of a registered trade unions

4. Rights and privileges of registered trade unions.

5. Amalgamation and dissolution of trade unions.

6. Submission of returns

7. Penalties and fines.

8. Power to make regulations.

9. Definitions under the Act.

The term executive refers to anybody, by whatever name called, to which the management of

the affairs of a trade union is entrusted, ie., a body should be responsible for managing the

affairs of a trade union. Office bearer means and includes "any member of the executive of a

trade union". No one can be appointed an office bearer unless he has attained the age of 18

years, and has not been convicted by the court for any offence involving moral turpitude, or

sentenced to imprisonment ( unless a period of 5 years has elapsed since his release ). Not

less than 75% of the total number of office bearers of every registered trade union shall be

persons actually engaged or employed in an industry with which the trade union is concerned.

Registered office means that office of a trade union which is registered as the Head Office

under the Act".5

Registrar of Trade unions means "a Registrar appointed by the appropriate Government for

each state. The registrar also includes an additional or Deputy Registrar of Trade Unions".

Trade Dispute means " any dispute (i) between employers and workmen; or (ii) between

workmen and workmen, or (iii) between employers and employers which is connected with

the employment or non- employment, or the terms of employment, or the condition of labour

of any person".6

Trade union means "combination, whether temporary or permanent, formed (i) primarily for

the purpose of regulating the relation between (a) workmen and employers, or (b) between

workmen and workmen, or (c) between employers and employers, or (ii) for imposing

restrictive conditions and the conduct of any trade or business, and includes any federation of

two or more trade unions.

The Trade Unions Act Does Not Affect

1. Any agreement between partners as to their own business

5 Karnik - Indian Trade [Unions : A Stirvey, P. C. Manekalal & Sons, Bombay, 1998,p.48.6 Dr. P.N. Chopra, Indian Struggle for Freedom, Vol. 3, Ashish Publishing House, New Delhi, 1985, p.285



2. Any agreement between an employer and those employed by him as to such

employment; or

3. Any agreement in consideration of the sale of the goodwill of a business or of

instruction in any profession, trade or handicraft.

A trade union is not only a combination of workmen but also of employers; and the Act

applies not only to the union of workers but also the association of employers.7

Registration of Trade Unions

Any seven or more members of a Trade union may, by subscribing their names to the rules of

the trade union and by otherwise complying with the provisions of this Act with respect to

registration, apply for registration of the trade union under this Act.

Application for registration

Every application for registration of a Trade union shall be made to the Registrar, and shall

be accompanied by copy of the rules of the trade union and a statement of the following

particulars namely;

a. the names, occupations and addresses of the members making the 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.

The Industrial employment (Standing orders) Act 1946

The Indian Trade Unions Act, 1926 is intended mainly to provide a base for orderly labour-

management relations. The industrial employment (standing orders) Act, 1946, also forms

part of the same base. Its principal function is to settle and clarify from the beginning many

of those terms of employment over which disputes normally arose. It also protects workers

from arbitrary actions by employers.8

The Industrial Dispute Act 1947

In spite of the above mentioned facts disputes arise in factories. It is the function of the

industrial disputes act to settle them.

The industrial disputes act is an endeavour on the part of the state to regulate industrial

relations. The registration IS designed to ensure industrial peace by having recourse to a

7 S.K Chatterjee, Personnel Management and Indrrstrial Relalions, Surjeet Publication Delhi,1993, p.988 V. D. Kennedy, Unions, Employers and Government, Manaktals, Bombay, 1966, p.88



given form of a procedure and machinery for investigation and settlement of industrial

disputes.9

The Act is mainly concerned with settlement of disputes. However, there is certain provision

aimed at the prevention of disputes. It provides for the establishment of works committee,

whose function is to provide a vehicle for the peaceful working out of labour-management

problems, before they reach the status of industrial disputes. There are restrictions on strikes

and lockouts in public utilities. It also restricts employers in laying off its employees and

declaring lock-outs. All these provisions aimed at prevention of disputes. If disputes still

occur, the Act makes provision for settlement either by conciliation, voluntary arbitration, or

compulsory adjudication by a labour court or tribunal.

Industrial Relations Machinery

The present machinery for the settlement of industrial disputes comprises; (1) conciliation

(11) arbitration and (111) adjudication machinery. An attempt is made here in to review the

working of the present industrial relations machinery and to see what success of has achieved

its limitations and defects.

Conciliation:-

The aim of conciliation is to bring about a settlement in disputes through third party

intervention. According to the Madhya Pradesh Industrial Relations Act, 1960, the procedure

followed by the conciliation machinery is as follows: a party desiring to effect change in the

conditions of work gives a notice of change to the other party. The parties- may arrive at an

agreement by negotiations with a stipulated time. When no agreement is arrived at, the

dispute shall be referred to conciliation except in cases where arbitration has been agreed

upon by both the parties. Conciliation proceedings are deemed to have been completed when

settlement is signed after the completion of conciliation proceedings, the desired change can

be affected or enforced by direct action.10

The attitude of the parties to conciliation is extremely important for the success or failure of

the conciliators. Besides, conciliation is often looked upon by the parties as merely a hurdle

to be crossed for reaching the next stage of arbitration.11

Voluntary Arbitration:-

Another system of settlement of disputes is voluntary arbitration. But apart from the statutory

arrangement for recourse to voluntary arbitration, considerable emphasis is placed on this

9 S. K. Chatterjee, Personnel Management and Industrial Relations, Surjeet Publications, Delhi , p. 1 1010 Radhakrishna Mukerjee, Indian Working Class, Asia Public House, Bombay,11 . K. G. J.C. Knowels, Strikes, Oxford Basil Blackwell Edition, 1952, p.74



mode of settling disputes in official pronouncement. In order to make voluntary arbitration

more effective the government established the National Arbitration Promotion Board with a

tripartite composition - representatives of government, employer and workmen. All these

effects with standing voluntary arbitration has had little success so far. Factors which have

contributed to the slow progress of voluntary arbitration, as mentioned by trade union

leaders/executives or labour officers are:

1. Easy availability of adjudication, in case of failure of negotiations

2. Dearth of suitable arbitrators who can command the confidence of both the parties

3. The fact that an appeal against an arbitration award was not possible under the law.

4. Mutual distrust of parties about their intentions.

Adjudication

The ultimate legal remedy for the settlement of an unresolved dispute is its reference to

adjudication by the appropriate government.

Role of government

The intervention of the government in laying down a statutory provision for the settlement of

industrial disputes was the prevention and settlement of disputes. Right from the start of trade

unionism government has been the mediator or arbitrator in all the disputes. Not even a single

major issue has been settled without the intervention of the government.12

The central government had taken power under rule 81(A) of the Defence of India Rules to

issue general or special order to prohibit strikes or lock-outs and for requiring employers and

workers to observe certain terms and conditions of employment. Government had also power

to refer any trade dispute to conciliation or adjudication and to enforce the award of

adjudication. Strikes were made illegal during adjudication or conciliation proceedings and

also during the period for which award was made binding. Government exercised these

powers freely and many trade disputes were referred to adjudication and awards were

enforced.

The government's role on mediation and adjudication has become complicated because of the

induction of political parties and their leaders at the top of the government machinery.13

Objectives of Trade Unions

The objectives of the trade unions generally are:

12 Crouch Harold, Trade Unions and Politics in India, Manaktals, Bombay 1966, p. 1013 'National Commission on Labour' Government of India, Edited 1963, p.287



1. They strive for achieving higher wages and better conditions for the members.

2. They not only minimize the helplessness of the individual workers by making them

stand collectively and increasing their resistance power through collective bargaining

but also protect their member against victimization or injustice of the employers.

3. They provide the worker self confidence and a feeling that they are not simply a log in

the machine.

4. They imbibe a spirit of sincerity and discipline in the workers.

5. They also take up welfare measures for improving the morale of the workers.

6. They demand an increasing share for workers in the management of industrial

enterprises. They help in raising the status of workers as partners of Industry and as

citizens of the society.

Trade unions are formed to protect and promote the interests of their members. Their primary

function is to protect the interests of workers against discrimination and unfair labour

practices. Trade unions are formed to achieve the following objectives:

Representation

Trade unions represent individual workers when they have a problem at work. If an employee

feels he is being treated unfairly, he can ask the union representative to help sorting out the

difficulty with the manager or employer. Unions also offer their members legal

representation. Normally this is to help people get financial compensation for work-related

injuries or to assist people who have to take their employer to court.

Negotiation

Negotiation is where union representatives, discuss with management, the issues which affect

people working in an organization. There may be a difference of opinion between

management and union members. Trade unions negotiate with the employers to find out a

solution to these differences. Pay, working hours, holidays and changes to working practices

are the sorts of issues that are negotiated. In many workplaces there is a formal agreement

between the union and the company which states that the union has the right to negotiate with

the employer. In these organizations, unions are said to be recognized for collective

bargaining purposes.

Collective Bargain:-



Collective bargaining is a method where negotiation and compromise are resulted in

agreements, joint determination and regulation. In other words, the nature of collective

bargaining is a process where the interaction talks place between employers and labour

collective where liberal collectivist are favoured. Within Human Resource system a process

through which an employee and their representative persuade and take part in decision

making and collective bargaining is one the most frequently used mechanism.14

The purpose of determining terms and conditions of employment and or regulating relations

between them for workers organisation and employers or employer’s organisation are all

negotiated and this is defined by the International Labour Office Convictions. The

relationship between the parties to terms and conditions of employment and regulations are

limited to subject matter by International Labour Office Convention. Collective bargaining is

the dominant employee participation process which is arguable.15

There are two types of rules where collective bargaining which tends to reach an agreement.

First is substantive rule, here the terms and conditions are determined for employment, for

example the pay scale or the annual holidays or the basic working hours in a week. This rule

also includes which work to give according to grade of staff and called as Demarcation rule.

Second is Procedural rule, here the method and procedures are determined, for example an

example an issue discussion at particular in national level or company level. Normal

negotiation cannot resolve any disagreements or disputes and to refer disputes at plant level

to regional or national level arrangements possibly is there and this rule determines the

arbitration arrangements for example probably a rule that disputes should refer to ACAS ( the

Advisory Conciliation and Arbitration services).

Over the past years, the evolution of collective bargaining was in different stages. Collective

bargaining was established for skilled labour at the local level. The joint negotiations were

encouraged at the industry level due to the influence of corporate system and this lead to the

establishment of collective bargaining. “John Goodman (1984) has defined collective

bargaining as a Process through which representatives of employers and of employee

organizations act as the joint creators of the substantive and procedural rules regulating

employment. In addition they frequently accept the main responsibility for interpreting,

applying and enforcing the rules”16

14 . 'Third Five Year Plan', Government of India Planning Commission15 'Second Five Year Plan' Govemment of India, Planning Commission, Edition 1956, p57516 'First Five Year Plan' Government of India, Planning Commission, Edited 1950-5 l , p58 1



There are various types of functions in collective bargaining. First, market or economic

function. In this function the price of the labour are decided by the employer and the

employee will work as per the terms and conditions. Second decision-making function. In

this function the collective bargaining allow the employees the opportunity to participate in

taking decision about the policies of the organization. Third, governmental function. In this

function the collective bargaining establishes the rule that governs the employment

relationship. It is also called as the political process. It is like a constitution where both the

parties have the power to ‘veto’ to control the actions of each other.

The agreement is made between the employer and the employee with the two types of the

rules. Those are substantive rules and procedural rules. Substantive rules are the rule that

regulates the terms and conditions of employment. Procedural rules are rules under which the

negotiation over the terms and conditions are made. These rules help in improving and

maintaining the employment relationship between the employer and the employee. There are

also some strategies like avoiding problems, using kind words, compromising used for

maintaining the employment relationship.

Ref: John Leopold, 2002, Human Resources in Organizations’, Financial Times/ Prentice

Hall, England.

There are two approaches of collective bargaining which plays an important role in

maintaining the employment relationship. First approach, distributive bargaining. In this type

one party enjoys the benefit, profits, and gains with the expenses of the other party. Here the

opposite parties can use the power to achieve their tasks. So, it becomes a problem when one

side refuses to accept the compromise or the benefits given to them. The second approach,

integrative bargaining. It seeks in mutual gains in areas of the common interest with the

problem solving approach. For the success of integrative bargaining both the parties should

share the information between each other and they should trust each other. So, compromise

and problem solving plays an important role in maintaining employment relationship.17

Collective bargaining is useful in many ways in the organization. It helps in the downward

communication where the communication takes place from the managers to employees. It

takes place in formal written reports such as employee reports, house journals etc. It helps in

the upward problem solving where the greater opportunities are given to the employee to

contribute to the discussions relating to their work. It also helps in task participation and team 17 M. K. Gandhi, Economic and industrial Life and Relation, Vol.1, Navajeevan Publications, Ahmedabad, 1957, p.90.



working where the employees are expected to extend their tasks at their work. It also helps in

financial involvement where the success of the enterprise is linked to the individual rewards.

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There are also some strategies used in the collective bargaining and they are by ignoring the

conflict, many problems can be avoided. By using kind and soft words, the problem or the

conflict can be smoothened. By compromising also many problems can be solved. So, these

are some of the ways through which the employment relationship can be controlled through

collective bargaining.18

The controlling of the employment relation can be done by introducing the new rules in the

enterprise such as like giving standard rate of pay for the employees who will benefit them.

Employment relationship can also be controlled by modifying the goals such as to avoid the

conflict between the employer and the employee.

The person on behalf of the management and a person on behalf of the trade union conduct

the meeting at different level to negotiate the problem. Those levels are national or industry

wide level and company level or local level. The negotiations which are conducted at national

level are known as centralized bargaining and the negotiations which are conducted at the

company level are known as decentralized bargaining. Centralized bargaining is found in

most of the large public sector companies and multi site private companies, with the help of

this approach the company lay down nationally applicable rule of conduct for the employee

relations and also payment conditions. Decentralized bargaining helps in improving the local

requirements, demands and terms and conditions.19

Collective bargaining plays an important role in solving the conflicts or the problem that is

arising. Collective bargaining has got the power to bring the change in the enterprise

independently even though both the parties have power to influence each other. Collective

bargaining brings about the trust in the relationship with each other. It also helps in following

the rules and regulations. Conflicts arising can also be solved by following these rules.

Collective bargaining plays a very important role in managing the employer-employee

relationship. It helps in forming the trade unions and also in involving the negotiation process

incase of any disputes.

18 Report of the Royal Commission on Labour in India (1929 Sept 3 1 ) p.322, Govemment of India, Branch Calcutta.19 Harrjan, September 7, 1947, pp.309-311, July 3, 1937, p.161, March 31, 1935, pp.20-23



There has been a recent developments in collective bargaining and they are single union deals

and single table bargaining. Single union deal is like an agreement where the management

allows only one trade union to represent the employees. Single union agreements may also

have other agreements and those agreements are pendulum arbitration, no strike agreements

and flexibility agreements. Pendulum arbitration is also called as final offer arbitration. It is a

method where the third party involves when there is an disagreement between two parties and

this bargaining is done in good faith to settle the conflicts between each other. Single table

bargaining also gives similar benefits to the employer as single union deals while marinating

a multi-union site. Here the negotiation process takes place between the unions. Flexible

agreements are agreements that are done to modify the traditional working practices and also

the flexibility in the function that are to be carried out in the working place.20

There are lot of benefit from collective bargaining, there are many reasons for the decline of

collective bargaining in recent days. It is because the power and the control of the trade union

are in the hands of governments and also because of Act of employment legislation to control

the power of trade unions. It is also because the focus is now a day shown on each individual

at the work. It is also because of the growth of new managerial statistics. It is mainly because

of the failure of the trade unions to develop effective strategies in developing the employer

employee relationship. It is also because some privatised companies do not adopt collective

bargaining and thus it is completely abandoned in major companies. It is because of these

reasons the collective bargaining has fallen down to a greater extent in past years. But,

Human resource management plays an important role in encouraging flexible working

arrangements and in development of the human resource and in paying to the employee for

their performance.21

Reasons for Workers to join Trade Union:-

Workers join unions because they are constrained by circumstances to do so, and because

they want.

1. To get economic security through steady employment and adequate income.

2. To restrain the management from taking any action which is irrational, illogical.

discriminatory or prejudicial to the interests of labour. Workers desire that the

assignment of jobs, transfers, promotions, maintenance of discipline, lay off,

20 'First Five Year Plan', Government of India, Planning Commission, Edited 1950-51, pp.572-57321 Harijan, September 7, 1947, pp.309-3 1 1, July 3, 1937, p. 161, March 3 1, 1935, pp.20-23



retirement, rewards and punishment should be on the basis of a pre-determined policy

and on the basis of what is fair and just.

3. For better communication of their news, aims, ideas, feelings and frustrations to the

management and to have an effective voice in discussion about their welfare.

4. To secure protection from economic hazards beyond their control for example, illness,

accident, death, disability, unemployment and old age.

5. To get along with their fellow workers in a better way and to gain respect in the eyes

of their peers.

6. To get a job through the good offices of a trade union.

Function of Union:-

The functions of unions include intramural, extramural and political. Intramural functions are

those activities which are at the betterment of needs of workers in relation to their

employment such as ensuring adequate wages, securing better conditions of work, rest

interval, continuity of employment etc. Extramural activities are those which perform to help

the workers in times of need and improve their efficiency. They also include welfare

measures and conduct recreational functions for the workers.22

The history of trade unionism in the country records profound effects of political leaders. The

route of action, the concentration of work moves from workers to a more universal area-

politics. In India most of the unions are politically affiliated or have strong support of leading

political parties of the country. Thus the trade unions use their franchise to capture the

government which indirectly results in acquiring stronger hold of power through political

influence for their trade union.

Essentials of a Successful Trade Union

1. Should have a social foundation, so that it may be strong enough to achieve success in

the realisation of its objectives.

2. Should have clearly enumerated objectives and a coherent and well conceived policy,

and it should consider itself a business organisation which requires careful planning

and sound organisational methods for its success.

22 Harijan, September 7, 1947, pp.309-31



3. Should be an enlightened one, so that it may be able to guide and direct the Trade

Union movement properly. This presupposes the existence of correct and effective

leadership which should come from the rank and file of its members and subject to

their support or rejection. The union should be run "by the members for the

members".

4. Should have honesty and integrity of purposes not only in financial matters but to its

relationship with employer, to the formulation of its polices and evaluation of its

performances.

5. Should have a sense of responsibility:-

a. to be internally strong that it may be effective in protecting the interests of

workers.

b. to use its economic power in a careful and responsible way.

c. to be democratic so that the worker's right to self government becomes a reality.

Advantages and Disadvantages of Trade Unions

A strong trade union gives a guarantee of industrial peace and brings stability in the industry.

Trade unions bring about improvement in the conditions of work, employment and wages of

workers and lead to greater efficiency among labourers.

They also inculcate a feeling of self respect and confidence among the workers.

But in spite of the above advantages the trade union activities have been criticised on the

ground that they create misunderstandings between the workers and employer and disturb

industrial peace and bring instability in the industry. They generally adopt a hostile attitude

towards rationalisation or improved methods of production and retard technical progress.

Sometimes intoxicated with their strength or misled by others they launch strikes on flimsy

grounds.23

However, it should be noted this sort of criticism is due to the defective or improper policies

and working of the trade unions rather than the basic objectives of trade unionism itself It is

now a generally agreed fact that trade unionism is beneficial not only to the working class but

also to the Industry and, the economy as a whole. Thus, trade unions have to play an

increasingly important role in the economic development of the country and they must be

prepared to undulate the role.24

23 lbid24 lbid



Patterns and Structure of Unions in India

There is no statutory provision which has outlined a definite structure and laid down a

specific basis for the formation of trade unions in India. There are different varieties of

structure. The reason for this can be understood, from the views of the National Commissions

of Labour. It says "The basis on which a trade union should be organised is a matter to be

determined by workers themselves, in the light of their own needs and experiences. They

have to grow according to the dictates of their members, but within the constraints set on

them by the law of land.25

Types of trade union:-

Since the growths of unions are spontaneous and automatic there is no definite classification

that is followed all over the country. However for clear gaps of differentiation the unions

have been classified into the following categories.

a. Primary unions

b. Industrial Production.

c. The National Centres.

Primary unions are further divided as

a. Industrial Union

b. General Union

c. Craft Union

Factors Affecting the Growth of Trade Unions

Here an attempt is made to analyse and point out the factors which are responsible for the

rapid increase, relative stability and fast decline that is seen at frequent intervals in the story

of the growth of trade unionism. They can be called the determinants of the rate of growth of

trade unionism.

Commitment of labour force is the first determinant. Here the worker is permanent in his job

and Industry and hence more committed. In this case the rate of growth is rapid. The

composition of labour force also affects the rate of growth of Trade Union movement in a

country. For example if women and children constitute a significant proportion in the labour

force, rate of trade union movement would be slow since it is different to organise women

and children. History reveals that the number of membership of Trade Unions increases

25 lbid



during cyclical upswings in business activity and fall during the downward swing. It is

known that during periods of war also, when economic activities expand, employment

increases and cost of living rises while wages lag behind, there is a relatively greater swing

towards unionisation.26

The political climate and the legal framework of the country also has a decisive influence

over the pattern and the rate of union growth.

The structure of Trade Union organisation also affects the growth of trade unions As long as

the craft unions exists, the pace of union growth cannot be accelerated as they show little

interest in the union activities. The structure of Trade Union movement has to adapt itself to

the changing needs of the labour force, otherwise it would become archaic and tamper the

growth and pace.27

It has become customary these days to make collective agreements with the employer for

union security provision such as the closed shop, union shop, agency shop, and maintenance

of membership shop etc. These provisions make union membership more or less compulsory

on workmen; the workers become union members automatically without any additional

efforts on the part of their unions. Hence union security provisions are considered as the

institutional interest of the unions.28

Since its very inception, trade unionism has faced stiff opposition from the employers. This

opposition and hostility took many turns; non-recognition of unions, bribing the trade union

officials, establishing rival unions and organisations, victimisation of union members and

workers. However the attitude of employers in India has apparently changed since

independence, at least they have learned to put up with the unions. They are not openly

antagonistic or hostile. However the question of recognition still longs in the air. Since there

are multiple of unions in an establishment, inter-union and intra-union

rivalries, the unions are not strong and the employers know that fact.

Statutory Necessities of Trade Union

An active union has essentially to fulfil the following criteria.

1. It has to have an office.

2. Paid or unpaid, part-time staff or full-time staff.

26 lbid27 lbid28 Harijan, July 3, 1937, p.161, July 29, 1983, p.216



3. Systematic system of record keeping related to the strength and activities of members.

4. It has to carry out its business which ought to include.

a) Raising major demands of its members during the course of its functioning.

b) Contesting in elections for the workers councils.

c) Handling grievances of its members and working into their welfare needs in and outside

their work-place.

Amalgamation of Trade Union:-

23. Change of name. — Any registered Trade Union may, with the consent of not less than

two thirds of the total number of its members and subject to the provisions of section 25,

change its name. 29

24. Amalgamation of Trade Unions.—Any two or more registered Trade Unions may become

amalgamated together as one Trade Union with or without dissolution or division of the funds

of such Trade Unions or either or any of them, provided that the votes of at least one-half of

the members of each or every such Trade Union entitled to vote are recorded, and that at least

sixty per cent of the votes recorded are in favour of the proposal.

Merger of Trade Union ; On merger the Trade Union and its office-bearers do not lose

their identity Kumar Dey v. Union of India, (1991) 63 FLR 463 (Gau).

25. Notice of change of name or amalgamation.—(1) Notice in writing of every change of

name and of every amalgamation signed, in the case of a change of name, by the Secretary

and by seven members of the Trade Union changing its name, and in the case of an

amalgamation, by the Secretary and by seven members of each and every Trade Union which

is a party thereto, shall be sent to the Registrar and where the head office of the amalgamated

Trade Union is situated in a different State, to the Registrar of such State.

(2) If the proposed name 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 refuse

to register the change of name.

(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the

provisions of this Act in respect of change of name have been complied with, register the

29 Harijan, July 21, 1946, p.229



change of name in the register referred to in section 8, and the change of name shall have

effect from the date of such registration.

(4) The Registrar of the State in which the head office of the amalgamated Trade Union is

situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have

been complied with and that the Trade Union formed thereby is entitled to registration under

section 6, register the Trade Union in the manner provided in section 8, and the

amalgamation shall have effect from the date of such registration.

26. Effects of change of name and of amalgamation.—(1) The change M the name of a

registered Trade Union shall not affect any rights or obligations of the Trade Union or render

defective any legal proceeding by or against the Trade Union, and any legal proceeding

which might have been continued or commenced by or against it by its former name may be

continued or commenced by or against it by its new name.

(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of

any of such Trade Unions or any right of a creditor of any of them.

27. Dissolution.—(1) When a registered Trade Union is dissolved, notice of the dissolution

signed by seven members and by the Secretary of the Trade Union shall, within fourteen days

of the dissolution be sent to the Registrar, and shall be registered by him if he is satisfied that

the dissolution has been effected in accordance with the rules of the Trade Union, and the

dissolution shall have effect from the date of such registration.

(2) Where the dissolution of a registered Trade Union has been registered and the rules of the

Trade Union do not provide for the distribution of funds of the Trade Union on dissolution,

the Registrar shall divide the funds amongst the members in such manner as may be

prescribed.

Case Study:-

Jute Mill Mazdoor Sangh v. The Registrar of Trade Union and others.30

Hon’ble Judge:- S.B.Sinha v. S.Hoda,J.J.

Labour and Industrial - Amalgamation of Jute Mills - Review of Decision - Petition filed for

quashing of Order rejecting Petitioner's application for review of decision of Registrar

relating to amalgamation of Jute Mills - Held, it appeared that matter was enquired into by

Registrar Trade Union by Labour Superintendent - It further appeared that both parties were

30 Case No. 5574 of 1991



given opportunity of hearing and all documents produced by them had also been taken into

consideration - In terms of provisions of by laws of Trade Unions normally election had to be

held every year - It was assertion of Respondent that General Secretary was removed in year

1981 itself - Said General Secretary could file a suit in civil Court questioning his expulsion

as also validity of meeting if any - He had not chosen to done so - It appeared that Registrar

Trade Union had taken into consideration all aspects of matter held that in facts and

circumstances of case, it was not necessary to review Order passed by his predecessor in

office - Decision of Registrar Trade Union was communicated to Petitioner but same was not

Order itself - It was well known that when statutory functionary performs statutory function,

same could be subject matter of scrutiny by writ Court in exercise of its writ jurisdiction only

if same was mala fide - Neither any such point had been raised in Petition nor Petitioner had

been able to point out any infirmity in Order - Petition dismissed.

Conclusion:-

A trade union is an independent self-regulating organization of workers created to protect and

advance the interests of its members through collective action.” Over recent years, it has

become fashionable in many quarters to write off Britain’s trade unions, to label them as

obsolete institutions out of touch with new realities and incapable of change. In today’s world

of individual employment contracts, performance-related pay schemes, Human Resource and

Total Quality Management and all the other ingredients of the so-called ‘new’ workplace,

trade unions are often regarded as anachronistic obstacles preventing success of the market

economy. As collective voluntary organizations that represent employees in the workplace, it

is argued; trade unions no longer serve a useful purpose. The main priority of this research is

to represent the arguments for the relevance of trade unions in today’s working society. Trade

unions exist because an individual worker has very little power to influence decisions that are

made about his or her job. The greatest advantage in joining a trade union is because, by

doing so, individuals possess more chance of having a voice and influence in their place of

work. By joining forces with other workers, an individual’s opinions and beliefs regarding

their job will also be voiced by other union members, thus creating a stronger stance against

management, if needed. Therefore, the main purpose of a trade union is to protect and

improve people's pay and conditions of employment. This objective is usually achieved

through negotiation and representation.



Further, the amalgamation of trade union is described under section 24-26 of Trade Union

Act, 1926 and according to researcher it is beneficial for trade union in respect of general as

well a s political scenario.

BIBLIOGRAPHY

STATUTE: -

Labour and Industrial Laws

The Trade Union Act, 1926

BOOKS: -



P.K.Padhi, Labour and Industrial Laws, 2nd Edition, 2012, Eastern Economy Edition.

S.N.Mishra, Labour and Industrial Laws, 27th Edition, 2013, Central Law

Publications.

H.L.Kumar, Law Relating to Disciplinary Proceedings in Industries, 6th Edition, 2009,

Universal Law Publishing Co


final labour project

Documents

structure of trade union

study of trade union

introduction trade union

essential of trade union

advantage of trade union

growth of trade union

objective of trade union

institution of trade