SALIENT FEATURES OF SALIENT FEATURES OF THE TRADE UNION ACT THE TRADE UNION ACT

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Prof. H A C POPPENProf. H A C POPPEN Director

CHRIST COLLEGE INSTITUTE OF MANAGEMENTBANGALORE -560 029Phone : 080-4012 9345(O) 080-55359746(R)Email: hcpoppen@sify.com

I. SCOPE OF THE ACT (Sn.1)

DEFENITION OF TRADE UNION COVERS:

WORKMEN’S ORGANIZATIONS AS WELL AS EMPLOYERS ORGANIZATIONS

[OFFICERS & MANAGERS CAN FORM TRADE UNIONS, GOVT. TOOL ROOM OFFICERS ASSN VS ASST. LAB. COMMISSIONER

2002 (2) LLJ339[HC-KAR]H

II ADMINISTERED BY [Sn.2(a)]

APPROPRIATE GOVERNMENT

IF UNION’S ACTIVITIES ARE TO : CENTRAL COVER MORE THAN ONE STATE GOVERNMENT

IF ACTIVITIES LIMITED TO ONE STATE : STATE GOVERNMENT

ADMINISTRATION THROUGH REGISTRAR OF TRADE UNIONS APPOINTED BY APPROPRITE GOVERNMENT [CENTRAL OR STATE]

III PROCEDURE FOR OBTAINING REGISTRATION [Sn. 5,6,7,8,9]

- SIGNATURE OF 7 OR MORE MEMBERS REQUIRED.

- PREPARE RULES PROVIDING FOR ALL FOLLOWING ITEMS:-

NAME OF TRADE UNION. OBJECTS OF THE UNION. PURPOSES FRO WHICH THE GENERAL FUND CAN BE

USED. MAINTENANCE OF MEMBERSHIP LIST AND

PROVISION

FOR INSPECTION BY MEMBERS.

A MINIMUM SUBSCRIPTION OF 1 Rs PER MONTH.

MANNER OF AMENDING OR RESCINDING RULES.

METHOD OF DISSOLVING UNION, REMOVING OFFICE BEARERS AND MEMBERS.

SAFE CUSTODY OF FUNDS.

ANNUAL AUDIT OF ACCOUNTS & INSPECTION BY MEMBERS.

IV GRANT OF REGISTRATION

[Sn. 8,9,10] IF THE APPLICATION PROVIDES FOR

PARTICULARS FOR ALL ITEMS IN PARA III ABOVE AND THE RULES OTHERWISE MEET WITH REQUIREMENTS OF THE ACT, A REGISTRATION CERTIFICATE WILL BE ISSUED.

THE REGISTAR CAN WITHDRAW OR CANCEL REGISTRATION FOR CERTAIN SPECIFIED REASONS.

V CANCELLATION OF REGISTRATIONA REGISTRAR CAN CANCEL / ANUL THE REGISTRATION AFTER GIVING TWO MONTHS ADVANCE NOTICE SPELLING OUT THE GROUNDS.

GROUNDS CAN BE :-

• REGISTRATION HAS BEEN OBTAINED BY FRAUD OR BY MISTAKE

• TRADE UNION HAS CEASED TO FUNCTION• EVEN AFTER NOTICE FROM REGISTRAR, UNION IS

CONTINUING TO RETAIN IN THEIR BYE-LAWS OR RULES PROVISIONS IN CONTRAVENTION OF TRADE UNION ACT

• THE UNION HAS RSCINDED FROM THEIR BYE-LAWS ANY PROVISION REQUIRED TO BE MAINTAINED UNDER Sn.6

• IF THE MEMBERSHIP DROPS BELLOW THE REQUIRED NUMBER [Sn 9C]

VI DISSOLUTION OF TRADE UNIONS [Sn.27]

A UNION CANDISSOLVE ITSELF BY MEMBERS VOTING SO

A RESOLUTION SIGNED BY MEMBERS AND SECRETARY MUST BE SENT TO REGISTRAR WITHIN 14 DAYS OF THE MEETING

DISSOLUTION EFFECTIVE FROM DATE RECORDED BY REGISTRAR

IF RULES DO NOT PROVIDE FOR DISTRIBUTION OF FUNDS, REGISTRAR WILL DECIDE THE DISTRIBUTION

VII CHANGE OF NAME OR AMALGAMATION OF UNIONS

[Sn.23, 24, 25 ]

CHANGE NAME IF 2/3 APPROVE AND INFORM REGISTRAR

AMALGAMATE IF AT LEAST 30% OF EACH UNION FAVOURS IT

VIII BENEFITS OF REGISTRATION [Sn. 15, 16, 17, 18, 19]

- PRIOR TO ACT, TRADE UNION ACTIVITIES AMOUNTED TO VIOLATION OF Sn.120 OF IPC- A CRIMINAL OFFENCE

- IF REGISTERED UNDER ACT, MAMBER / OFFICE BEARERS GIVEN CERTAIN AMOUNT OF LEGAL PROTECTION AGAINST CRIMINAL PROSECUTION [PROVIDED THEIR AGITATION IS PEACEFUL]

- CAN PURSUE LEGITIMATE TRADE UNION ACTIVITY WITHOUT FEAR OF CRIMINAL PROSECUTION

- AN AGREEMENT IN RESTRAINT OF TRADE ISVOID UNDER CONTRACT ACT – THAT IS NOT APPLICABLE TO LEGITIMATE TRADE UNION ACTIVITIES

IX MEMBERSHIP [Sn. 20,21 ]

- MINIMUM AGE 15 YEARS

- MEMBERSHIP LIST MUST BE OPEN FOR INSPECTION BY MEMBERS

- CURRENT RATE OF SUBSCRIPTION IS RUPEE PER MONTH [UNION COULD COLLECT

HIGHER SUBSCRIPTION]

X OFFICE BEARERS [21A, 22]

• MINIMUM AGE 18 YEARS

• MUST NOT BE CONVECTED FOR MORAL TURPITUDE WITH PUNISHMENT OF IMPRISONMENT – UNLESS 5 YEARS HAVE ELAPSED SINCE RELEASE FROM PRISON

• NOT MORE THAN 50% CAN BE OUTSIDERS (THOSE WHO ARE NOT WORKMEN OF THE ESTABLISHMENT / INDUSTRY

[REDUCED TO 331/3%]

XI MAINTENANCE OF ACCOUNTS &

ANNUAL RETURNS [Sn. 15,16,17]

- MUST KEEP PROPER BOOKS OF ACCOUNTS.

- MUST BE AVAILABLE FOR INSPECTION BY MEMBERS.

- MUST BE AUDITED.

- GENERAL FUND TO BE SPENT ONLY ON

EXPENDITURES ALLOWED UNDER Sn.15.

- A SEPARATE POLITICAL FUND (OPTIONAL) CAN BE

COLLECTED FROM MEMBERS AND UTILISED FOR

POLITICAL PURPOSES LISTED UNDER SN.16.

- ANNUAL RETURNS AND AUDITED ACCOUNTS MUST

BE FILLED BEFORE REGISTRAR – IF NOT DONE,

WILL ATTRACT A FINE.

XII PURPOSES FOR WHICH THE FUNDS

COULD BE USED:

(A) GENERAL FUND [Sn.15] [COMPULSORY COLLECTION FROM ALL MEMBERS] 1. FOR PAYMENT OF SALARIES AND ALLOWANCES OF OFFICE BEARERS. 2. FOR DEFENDING INDUSTRIAL DISPUTES IN COURTS PERTAINING TO MEMBERS. 3. FOR ACTIONS TO PROTECT TRADE UNION RIGHTS. 4. FOR MEETING RELIGIOUS / SOCIAL / EDUCATIONAL EXPENSES OF MEMBERS. 5. FOR PUBLICATION OF PERIODICALS ON LABOUR MATTERS. 6. FOR ANY OTHER MATTER NOTIFIED BY GOVERNMENT.

(B) POLITICAL FUND [Sn.16] [OPTIONAL]

• TRADE UNIONS CAN COLLECT A SEPARATE POLITICAL FUND.

• CONTRIBUTIONS SHOULD NOT BE MADE COMPULSORY.

• IT SHOULD NOT BE MIXED WITH GENERAL FUND.

• CAN UTILIZE FOR OBJECTS LISTED IN Sn.16 LIKE EXPENSES ON MEMBERS CONTESTING FOR ELECTION TO LEGISLATIRES ETC. OR TO MEET EXPENSES FOR HOLDING POLITICAL MEETINGS.

XIII RIGHTS OF REGISTERED UNIONS [Sn.15,16]

• CAN ACQUIRE IMMOVABLE PROPERTY IN UNION’S NAME

• CAN SUE AND BE SUED AS LEGAL PERSON

• CAN CONSTITUTE POLITICAL FUNDS AND COLLECT SUBSCRIPTIONS

• ENJOY PARTIAL IMMUNITY FROM CRIMINAL PROSECUTION

• CAN NOMINATE MEMBERS TO WORKS COMMITTEES UNDER Sn.3 OF I.D. ACT.

XIV GOVERNMENT’S POWER TO

REULATE

- GOVERNMENT CAN REGULATE

TRADE UNION REGISTRATION AS PER

Sn.29 & 30

XV AMENDMENTS IMPLIMENTED

FROM 09-01-2002

A - MINIMUM MEMBERSHIP REQUIREMENT:-

(a) FOR WORKFORCE LESS THAN 7O = 7 WORKMEN

(b) FOR ,, BETWEEN 71 TO 1000 = 10% WORKFORCE

(c) FOR ,, ,, ABOVE 1000 = 100 WORKMEN

B - MAXIMUM NUMBER OF OUTSIDERS AS LEADERS

(a) FOR EXISTING UNIONS [INORGANIZED SECTOR] = 50% TO 331/3%

(b) PERSONS HOLDING POSITIONS OF PROFIT FROM GOVT ARE DEBARED

(c) RETIRED / RETRANCHED WORKMEN OF SAME ESTABLISHMENT WILL BE

TREATED AS INSIDERS

C - MINIMUM SUBSCRIPTION ENHANCED FROM 25 ps TO Rs. 1 pm