5. Write an article on the Trade Union Act 1926, including the process of registration, benefits of registration and whether a minor can be a member of a registered trade union.

 What are trade unions

According to the Act, a trade union is any group that is eligible to register as one, which includes both employers’ and workers’ organisations. An association’s or combination’s main objective will determine whether or not it qualifies as a trade union. Section 2(h) of the Trade Unions Act, 1926, defines a trade union as “any combination or association of persons based upon mutual confidence, understanding, and cooperation for the protection of common interests”. It could be any group of workers or employers. It does not have to be a permanent combination; it can be formed even for a shorter period.

The definition outlines the primary objectives of a trade union. The trade union is therefore established primarily for the following two goals: 

1. First, for regulating the relationships between-

• Workmen and employers; 
• Workmen and workmen; or 
• Employers and employers

2. Second, for imposing limitations on the operation of any trade or business, which includes any federation of two or more trade unions.

The definition of the trade union under the Trade Union Act makes it clear that the main aim of a trade union is to keep the relationships between the persons involved in the industrial production and process in balance, harmony and with the right adjustments. 

Necessary to register a trade union

A trade union under the Industrial Dispute Act, 1947 has been defined as that which has been registered under the Trade Unions Act, 1926. Therefore a trade union which has not registered under the Trade Union Act is not regarded as a trade union under the Industrial Disputes Act. Further the Industrial Dispute Act provides certain rights to only those kind of trade unions which have been registered under the Trade Unions Act, 1926 and those trade unions which are not registered under the Act have no such rights.

It was frequently observed in India that the workers usually form their own association or unions without registering them under the Trade Union Act. These unions used to negotiate bonuses and other terms of employment with the employers and the employers in return were also used to give due consideration to their opinions. As a result of this recognition made by the employers it was often believed by the workers that they have a trade union with significant negotiating power with the employers. But this is not the case since their trade union or association are not legally recognised as a trade union, the powers provided to the trade unions under the Industrial Dispute Act do not apply to them. 

Although an unregistered trade union is permitted to carry out the same functions as a regular trade union as defined under the Trade Unions Act, it is not allowed to file a petition for an industrial dispute, represent an employee, or take part in any proceedings under the Industrial Disputes Act. An unregistered trade union is also unable to speak on behalf of its members or employees while negotiating a contract with an employer and even if it does it may not be able to enforce the contract.

Further, the Industrial Disputes (Central) Rules, 1957, makes the distinction by stating that a registered trade union has the right to give the employer the names of “protected workmen” and that the employer must maintain the terms of employment of such protected workmen while an industrial dispute is in progress. However, an unregistered trade union lacks the power to name “protected workmen,” and even if it does it has no legal significance. In other words “protected workmen” designated by an unregistered trade union are not eligible for the protection provided by Section 33 of the Industrial Disputes Act.

Procedure for registration 

The procedure for registration of a trade union is as follows:

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.

In the case of trade union registration, the trade union is in charge of the entire registration procedure. The appropriate government may appoint a person to serve as the registrar of trade unions under Section 3 of the Trade Union Act, 1926. The appropriate government, whether state or central, may also appoint additional and deputy registrars as it sees fit to exercise and carry out the registrar’s powers and duties. However, such a person will work under the supervision and direction of the registrar. He may exercise the powers and functions of the registrar within the limits specified for this purpose.

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.

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.

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The following rights have been granted to registered trade unions:

Right of admission

The right to be admitted as a union member is not an absolute right. A trade union may set restrictions and admissions requirements in accordance with the Trade Union Act,1926, the rules, and any other applicable laws.

Right of representation

If an employee makes a written statement, the trade union may intervene in a dispute on their behalf. A trade union can then make a representation with that statement before any conciliation officer, industrial tribunal, labour court, etc. A trade union can then make a representation with that statement before any conciliation officer, industrial tribunal, labour court, etc.

Right to spend general funds

A registered trade union has the right to use its general fund for the payment of salaries, allowances, and expenses to its office-bearers, the prosecution or defence of any legal proceedings for securing or protecting any trade union rights, the conduct of trade disputes, compensation to members for any loss arising from trade disputes, the provision of educational, social, or religious benefits to members, the publication of periodicals on labour matters, the issue of or undertaking of liability under policies of assurance on members’ lives or policies of members against illness, accident, or unemployment, contribution to any cause intended to benefit workers, and any other object notified by the relevant government.

Right to constitute a separate political fund

If the registered trade union decides to pursue political objectives, it has the power to establish a separate political fund for those purposes using contributions that are separately collected for or made to that fund. Payments for the advancement of the civil and political interests of its members may be made out of this fund. Thus, the political funds are separate funds established by the trade union through a separate levy on its members for the advancement of the civil and political interests of its members.

Rights granted to it as a legal person 

The following rights are granted to a registered trade union as a result of its legal status and registration name: 

• Right to a common seal in its own name; 
• Right to purchase, hold, and sell both movable and immovable property in its own name; Right to enter into contracts in its own name; and 
• Right to bring legal action for any infringement of its rights. It may also be sued on its behalf by any aggrieved party. 

It should be noted that these are very important rights. Rights lose their significance if the trade unions lack the ability or competence to enforce them in their own name.

Right to inspect books

Members of the trade union or office bearers have a valuable right under Section 20 of the Trade Union Act, 1926, which allows them to inspect the book of accounts at any time. However, they are not allowed to take a copy of any books.

Right to amalgamate

According to Section 24 of the Act, two or more registered trade unions may amalgamate into one union with or without dissolution or division of their respective funds.

Right to change its name

Any registered trade union may change its name with the consent of at least two-thirds of all of its members, subject to the provisions of Section 25.

Duties and liabilities of a registered trade union 

The following duties and liabilities are placed on unions registered under the Trade Unions Act:

Duty to make provisions in the rules of certain matters

The provisions listed in Section 6 of the Trade Unions Act, 1926, must be included in the constitution of the trade union. Section 6 contains information that the trade union must include in its regulations. Some of these regulations specify the goals for which the trade union was founded, the uses for which its general funds may be put to use, the acceptance of new members, the process for dissolving the trade union, and other things.

Duty to constitute executive as required 

It is the responsibility of the registered trade union to set up the trade union’s executive in accordance with the rules of the Act. Sections 21-A and 22 of the Act contain the provisions pertaining to the formation of the executive board of the trade union. According to the provisions of the Act, two obligations must be fulfilled before the registration process can begin. The Registrar has the power to refuse to register the proposed trade union if these obligations are not met.

Duty to spend general funds as required 

The trade union has a legal obligation to use general funds in accordance with Section 15 of the Act, which lists specific items for which only general funds may be used and not otherwise.

Duty to constitute a separate political fund 

The trade union must establish a separate fund, commonly known as a political fund, in accordance with Section 16, and it may be used for the objects specified therein if it decides to advance the civil and political interests of its members.

Duty to provide access to books of trade union

A registered trade union shall maintain the account books and membership list for inspection by an officer or member of the trade union at such times as may be specified in the rules of the trade union.

Duty to send notice to the registrar

The trade union has a responsibility to notify the registrar of any changes to its name, any amalgamations, any changes to the address of its head office, and any dissolutions. Every year, a general statement of all receipts and expenditures of every registered trade union during the year ending on the 31st day of December, the next preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of December, must be sent to the registrar on or before such date as may be prescribed. This general statement must be audited in the prescribed manner. The statement must be written in the appropriate format and include all necessary information.

Conclusion

In today’s system of production and distribution of goods and services, trade unions have evolved into a significant and powerful force. The modern industrialisation of society gave rise to trade unions. The methods used to produce goods and services, their distribution, the allocation of economic resources, the amount of employment and unemployment, the nature of rights and privileges, governmental policies, the mindset and status of significant portions of the population, and the very nature of economic and social organisations are all now being significantly impacted. In these circumstances, their role has given rise to significant and widespread controversy. In a developing economy like ours, trade unions and their policies are especially important.

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The right of a minor (an individual below the age of 18 years) to be a member of a trade union in India is generally recognized under the Trade Union Act, 1926 (now known as the Employees’ Compensation Act, 1923). Minors can be members of trade unions, and their membership rights are protected by the law. However, there are certain restrictions and safeguards in place to ensure that their rights are not abused and their interests are protected:

1. Consent of Guardian or Parent:
   • In most cases, a minor may become a member of a trade union with the consent of their guardian or parent. The guardian or parent must provide consent on behalf of the minor, as the minor may not have the legal capacity to make such decisions independently.
2. Rights and Privileges:
   • Minors who are members of trade unions enjoy the same rights, privileges, and benefits as adult members. They can participate in trade union activities, attend meetings, and be represented by the union in labor-related matters.
3. Protection of Interests:
   • The law includes provisions to protect the interests of minors who are members of trade unions. This is particularly important in situations where trade unions may be involved in labor disputes or negotiations that could affect the working conditions or employment of their members, including minors.
4. Limitations on Legal Capacity:
   • While minors can be members of trade unions, it’s important to note that they may have limitations on their legal capacity to enter into contracts or agreements. This means that certain actions or decisions, such as negotiating collective agreements, may require the involvement of their guardian or parent.
5. Guardianship and Protection:The guardian or parent of a minor who is a member of a trade union has a legal duty to act in the best interests of the minor. This includes protecting the minor’s rights and ensuring that their participation in trade union activities is not detrimental to their well-being
6. Safety and Welfare:
   • Trade unions, employers, and authorities should take steps to ensure the safety and welfare of minors who are members of trade unions. This includes providing a safe and appropriate environment for participation in trade union activities.
7. Educational and Developmental Needs:
   • It is important to balance a minor’s involvement in trade union activities with their educational and developmental needs. Trade unions should not hinder a minor’s access to education or put their well-being at risk.