1. Different kinds of funds maintained by trade union?
Procedure for the contribution for the
funds
Indian trade unions, as per the Trade Unions Act, 1926, are allowed to maintain two distinct
funds:
1. General Fund: This fund is for the core functioning and welfare of the union
members. The Act specifies how contributions to this fund can be used. Some
permitted uses include [2]:
o Salaries and allowances for union office bearers
o Administrative and audit expenses
o Legal proceedings related to the union or its members' employment rights
o Supporting members during trade disputes (compensation for losses)
o Providing allowances to members or their dependents in case of death, old
age, sickness, accidents, or unemployment
o Educational, social, or religious benefits for members and their dependents
o Maintaining a union publication
2. Separate Fund (Political Fund): This fund is for promoting the civic and political
interests of the members. Contributions to this fund are voluntary, and members
cannot be compelled to contribute [3]. The Act allows using this fund for activities
like [1]:
o Supporting candidates in elections
o Holding political meetings
o Distributing political materials
The Trade Unions Act, 1926, outlines the procedures for contributions to trade union funds in
India. Here's a breakdown for both the General Fund and the Separate Fund (Political Fund):
General Fund (Mandatory Contribution):
1. Membership Dues: Becoming a member of a registered trade union usually involves
mandatory contributions to the general fund. These contributions are often called
union dues.
2. Method of Contribution: The specific method for collecting dues will be determined
by your union, but common approaches include:
o Automatic Deduction: This is a widespread method where your dues are
deducted directly from your salary,typically with your prior consent.
o Direct Payment: You might be required to pay your dues directly to the union
at specific intervals (monthly,quarterly, etc.). The union will inform you of the
preferred payment method.
Separate Fund (Political Fund) (Voluntary Contribution):
The Act safeguards members' rights by making contributions to the political fund entirely
voluntary [1].
1. Opt-In Process: If you wish to contribute to the political fund, you'll need to actively
opt-in through a process defined by your union. This might involve:
o Filling a Separate Form: The union should provide a form where you
explicitly express your desire to contribute to the political fund.
o Specifying Contribution Details: You might be able to choose a specific
amount you wish to contribute (fixed sum or a percentage of your general
dues).
o Choosing a Payment Method: Similar to general dues, you might have
options for automatic deduction from your salary or direct payment to the
union.
2. Industrial relation and objectives of industrial relations , function of collective bargaining
Industrial Relations
Industrial relations refer to the interactions between employers and employees (or their
representatives) within an organization or industry. It's a complex web of relationships that
aims to create a harmonious working environment. Here are the key players involved:
Employees: The workforce within an organization.
Employers: The organization or its management.
Trade Unions: Representational bodies formed by employees to advocate for their
rights and interests.
Government: Sets labour laws and regulations to ensure fair treatment for workers.
Objectives of Industrial Relations
The primary goals of industrial relations are to:
Maintain Industrial Peace: This means minimizing disputes and fostering a stable
work environment that benefits both employers and employees.
Protect Worker Rights: Ensure fair wages, safe working conditions, and adherence
to labour laws.
Promote Mutual Understanding: Encourage open communication and cooperation
between employers and employees.
Increase Productivity: When workers feel valued and have a voice, it can lead to
higher productivity and efficiency.
Resolve Disputes: Establish fair mechanisms for addressing disagreements and
grievances.
Function of Collective Bargaining
Collective bargaining is a cornerstone of industrial relations. It's a process where
representatives from the employees (usually a trade union) negotiate with employers to reach
agreements on various employment terms. These agreements,often formalized in a written
contract, typically cover issues like:
Wages and Benefits: Salaries, bonuses, health insurance, vacation time, etc.
Working Conditions: Safety standards, hours of work, overtime pay, grievance
procedures, etc.
Job Security: Rules around layoffs, seniority rights, and potential disciplinary
actions.
By coming to a collective agreement, both parties can avoid conflicts and establish a stable
working environment. Here are some additional benefits of collective bargaining:
Fairness for Workers: Unions give employees a stronger voice to negotiate and
secure better working conditions.
Stability for Employers: Established contracts reduce uncertainty and potential
disruptions caused by strikes or grievances.
Increased Productivity: Addressing worker concerns through negotiation can lead to
a more motivated and productive workforce.
However, collective bargaining also has some potential drawbacks:
Rigidity: Agreements can make it difficult for companies to adapt to changing
business conditions.
Strikes and Lockouts: If negotiations break down, strikes or lockouts can disrupt
operations and cause financial losses.
Costs for Employers: Higher wages and benefits negotiated through collective
bargaining can increase labour costs.
Overall, industrial relations and collective bargaining play a crucial role in maintaining a
balance between the interests of employers and employees, ultimately contributing to a
healthy and productive work environment.
3. Minimum wages for fair wages under the minimum wages act 1948
The Minimum Wages Act, 1948 of India establishes a crucial foundation for worker
compensation in the country.However, it's important to understand the distinction between
the minimum wages set by the Act and the concept of a fair wage.
Minimum Wage : A minimum wage is a compensation to be paid by an employer to his workers
irrespective of his ability to pay. The Committee on Fair Wage' has defined minimum wage as "the
wage must provide not only for the bare sustenance of life, but for the preservation of the efficiency of
the workers. For this purpose, minimum wage must provide some measures of education, medical
requirements and amenities" The minimum wage may be defined as the lowest wage necessary to
maintain a worker and his family the minimum level of subsistence, which includes food, clothing and
shelter.
Minimum Wage as a Floor: The Act empowers individual states to set minimum
wage rates for various scheduled employments within their jurisdiction. There's also a
national floor level minimum wage recommended by the central government, but
states have the discretion to adopt it [1]. This minimum wage acts as a safety
net, ensuring workers receive at least a basic amount for their labour and preventing
unscrupulous employers from exploiting their workforce.
Fair Wage: Fair wage, according to the committee on Fair Wage, is the wage which is above
the minimum wage but below the living wage. The lower limit of the fair wage is obviously the
minimum wage; the upper limit is set by the capacity of the industry to pay. The concept of fair
wage is essentially linked with the capacity of the industry to pay.
Fair Wage for Better Living: The concept of a fair wage goes beyond the minimum
set by law. It strives to establish a compensation level that not only fulfills an
employee's basic needs but also factors in several aspects:
o Employee's Value: This considers the employee's skill level, experience, and
qualifications. Someone with specialized skills or extensive experience would
warrant a higher fair wage compared to an entry-level position.
o Industry Standards: Fair wages also take into account prevailing wage rates
within a specific industry or geographic location. For instance, an accountant
in a major city might expect a higher fair wage than one working in a rural
area.
o Employer's Capacity to Pay: While fair wages aim to provide for a decent
standard of living, they must also be balanced against the financial health of
the employer. A struggling company might not be able to afford to pay the
same fair wage as a highly profitable one in the same industry.
The Minimum Wages Act serves a vital purpose by setting a minimum
threshold. Ideally, wages should be negotiated to reach fair wage levels that consider the
factors mentioned above. This ensures a better standard of living for the employee while
maintaining the financial sustainability of the business.
4. Jurisdiction of fatal accident act 1855 or Compensation under fatal accident
act 1855
The Fatal Accidents Act, 1855 plays a significant role in ensuring that families receive
compensation when a loved one dies due to another party's negligence. Here's a deeper dive
into its jurisdiction and how it facilitates claiming compensation:
Jurisdiction:
Geographic Reach: The Act extends to all states and union territories of India with
the sole exception of Jammu and Kashmir. This is clearly stated in Section 1 of the
Act itself [1].
Type of Cases: It applies to situations where death is caused by the wrongful
act, neglect, or default of another person. This legal framework encompasses a wide
range of scenarios, including:
o Accidents: This could involve road accidents, workplace accidents, or any
other incident where someone's death results from another party's negligence
(e.g., faulty machinery, unsafe work environment).
o Medical Malpractice: If a medical professional's negligence (improper
diagnosis, surgical errors, etc.) leads to a patient's death, the Act can be
invoked to claim compensation.
o Intentional Acts: The Act also covers situations where death results from
intentional acts of violence or assault.
Claiming Compensation under the Fatal Accidents Act:
The Act empowers certain eligible family members to seek compensation for the loss of a
loved one. These typically include:
Spouse of the deceased
Parents of the deceased
Children of the deceased
The legal representative (executor, administrator) of the deceased person can file a suit for
compensation on behalf of the eligible family members in a court of competent
jurisdiction. The specific court will depend on the nature of the claim and the amount of
compensation sought.
The Fatal Accidents Act, 1855 doesn't prescribe a fixed compensation amount, recognizing
that the loss of a loved one has unique financial repercussions for each family. The court
meticulously examines various factors to determine a fair compensation sum:
Loss of Dependency: This forms the crux of compensation. The court estimates the
deceased's future earning potential based on factors like
age, qualifications, profession, and expected career trajectory. This lost income forms
the foundation for calculating the financial strain placed on the dependents.
Dependants' Needs: The court considers the number of individuals who relied on the
deceased's income for their financial well-being. This could include a spouse, minor
children, dependent parents, or even siblings in certain cases. The greater the number
of dependents, the higher the compensation is likely to be.
Severity of Negligence: The degree of carelessness or recklessness exhibited by the
responsible party also influences the compensation amount. For instance, a drunk
driving accident resulting in a fatality would likely lead to a higher award compared
to an unintentional workplace mishap.
Age of the Deceased: A younger person's death often translates to a higher
compensation amount. This is because younger individuals typically have a longer
working life ahead of them, and their future earning potential is considered
substantial.
Maximizing Compensation:
While the Act provides the framework, legal expertise can significantly impact the
compensation awarded. A lawyer can:
Gather Evidence: This might involve accident reports, medical records, income tax
returns of the deceased, and potentially expert testimony to establish future earning
potential.
Negotiate with the Responsible Party's Insurer: Often, insurance companies try to
settle for lower amounts. A lawyer can negotiate on your behalf to secure a more just
compensation.