TRADE UNION

Meaning:

Trade unions are a major component of the modern industrial relations system. Trade unions

are essential features of industry in every country. Trade unions emerged as reaction to the

factory system and capitalized society. In early stage of industrialization, working class in

absence of legal protection felt exploited at the hands of employers. Workers joined hands to

protect their interests through collective action. A trade union is, thus organized expression of

the needs, aspirations and attitudes of the working class. All trade unions have objectives or

goals to achieve, which are contained in their constitution and each has its own strategy to

reach those goals.

DEFINITIONS:

According to Sidney and Beatric webb; A trade union is a continuous association of wages

earners for the purpose of maintaining and improving the conditions of their working lives.

According to Lester, Trade union means an association of workers in one or more

occupations an association carried on mainly for the purpose of protecting and advancing the

members economic interests in connection with their daily work.

According to VV Giri, Trade union is such an organisation which is created voluntarily on

the basis of collective strength to secure the interest of workers

According to S.D. Punekar

A trade union is a monopolistic combination of wage earners who as individual producers are

complementary to one another but who stand to employers in a relation of dependence for the

sale of their labour and production, and that the general purpose of association is in view of

that dependence to strength their power to bargain with the employers or bargaining

collectively.

According to British trade union act

A trade union is a combination with the main objective of regulating the relation between

workmen and masters for imposing of restrictive conditions on the conduct of any trade or

business and also provision to members.

According to Indian Trade Union Act, 1926, a trade union is any combination, whether

temporary or permanent, formed primarily for the purpose of regulating the relations between

workmen and the employers, or between workmen or workwomen, between employers or for

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

federation of two or more trade union.

CHARACTERISTICS OF FEATURES OF TRADE UNION

1. The trade union is an association either of employers or employees or of independent

workers.

2. A trade union is a continuing or permanent rather than a temporary or casual

combination.
3. Membership of a trade union is voluntary. Generally, there is no legal or other

pressure to join a trade union and a person can join or leave the union on his free will.

4. A trade union also perform political and ancillary functions

5. Members of trade union have common interests and problems, which motivates them

to unite. A seek to regulate relations between employers and workers.

6. Trade union always acts through united action of members to protect and promote

their economic and other interests.

7. A trade union is a sub-system of the social system. Therefore, its character undergoes

change with change in economic, social, legal and political conditions in the country.

A union functions collectively to protect and promote the interests of its members

within a given socio-economic system together in a body.

OBJECTIVES OF TRADE UNIONS

The main objectives of trade unions are as follows:

1. To secure for workers fairer wages in the light of cost of living and the prevailing

standards of living.

2. To demand the management to provide all the basic facilities such as lighting and

ventilation, sanitation, rest rooms, safety equipment’s while discharging hazardous

duties, drinking water, refreshment, minimum working hours, leave and rest, holidays

with pay, job satisfaction, social security benefits and other welfare measures.

3. To win recognition for workers that they are equal partners with management in the

task of production.

4. To assure the workers a share in the increased profitability of industry through

payment of adequate bonus.

5. To ensure security of employment by resisting retrenchment.

 6. To protect workers against exploitation and victimization by the capitalists.

7. To secure for workers a say in management and industry democracy therby bringing

about a new social order.

8. To protect the larger interest of the society by assisting in the improvement of trade

and industry.

9. To offer responsive co-operation in improving levels of productions, productivity,

discipline and quality.

10. To enlarge opportunities for promotion and training.

FUNCTION OF TRADE UNION

Trade unions perform several functions to achieve their objectives. The main functions of

trade are as follows:

1. Trade unions safeguard workers against all sorts of exploitation by the employer and

political parties. A union provides protection from unfair labour practices and

atrocities of management. It also tries to revise the status of workers in industry and

society.

2. Unions attempt to secure for workers fair wages, proper working conditions and

welfare facilities like health, housing, reaction and social security so as to ensure

desirable living standards for them.

3. Collective bargaining with management to settle terms and conditions of employment.

4. Advice the management on personal policies and practices

5. Taking up the individual and collective grievances of the workers with management.

6. Trade union work for achieving a better say of workers in the management of matters

which directly influence the interests of workers.

7. Unions organize demonstrations, strikes and other forms of protest to press the

demands of workers. During strike the union may provide financial land other help to

members when the employers stop wages.

8. Make arrangements for the education of workers and their family members.

9. Some unions provide recreation, sports and other welfare facilities for their members.

10. Trade union represents workers in various national and international forums such as

Indian labour conference and international labour organization (ILO)

11. Secure legislative protection for the workers from the government.

12. A trade union serves as a link between employers and workers so as to develop

mutual understanding and cooperation between the two sides.

The function performed by the trade union may be broadly classified into 3 categories

1. Militant Functions: The chief purpose of the trade unions is to secure better

conditions of work and employment. The unions also endeavor to secure some share

in productivity gains and a greater share in the management or even control of

industry. When the unions fail to accomplish these ends by the method of collective

bargaining and negotiations, they adopt agitation methods and put up fight with the

management in the form of strike, boycott, gherao etc. – a situation that often turns

into fierce antagonism.

2. Fraternal functions: these functions include providing financial and non-financial

assistance to workers during the periods of strikes and lock-outs, extension of medical

facilities during slackness and causalities, provision of education, recreational and

housing facilities, provision of social and religious benefits etc.

 3. Political Functions: many trade unions seek to improve the political status of the

union leaders and the members.

THEORIES OF TRADE UNION

Trade unionism is born out of industrialization which caught momentum after industrial

revolution in England during the mid-nineteenth century. The evolution of the trade union has

been interpreted in different ways by different authorities. Their views are expressed in the

form of ideologies, approaches, theories etc.

John T. Dunlop has been view that a useful theory of trade union must provide answers

to the following questions:

1. What factors lead to the organization of a union?

2. What conditions are favourable to bring a union into existence?

3. What different patterns of growth goals of the unions? How will these affect the

political, economic and social structure of the country in the long-run?

To these Arthur D. Butler added two more questions namely

1. How do unions decide which goals to seek through collective bargaining? When a

union knows it cannot win everything at a particular bargaining session, how does it

decide whether to fight harder for wage increases or for a better grievance procedure?

2. How do unions decide which techniques to use in accomplishing their goals? What

determines whether unions will select economic or political methods?

To answer these questions, the following theories of labour movement might prove useful:

1. CLASS STRUGGLE THEORY OF KARL MARX

 Karl Marx was the founder of ‘Scientific Socialism’ popularly known as

communism. In the eyes of Marx, the organized labour movement is an

intermediate step in the class struggle, the fight of power by the working class to

overthrow the capitalist class. Kalmarx traced the origin of trade unionism to the

growth of industrial capitalism. In his views, trade unions represent a prime

instrument of class struggle between proletarian and capitalist. To Marx the trade

union is an ‘organizing centre’. Without organization, workers compete with each

other for available employment. Trade union developed out of the attempts of the

workers to do away with this competition for the purpose of obtaining at least

such contractual conditions as would raise them above the status of bare slaves.

The labor organization provides the locus of the working class towards a change

in the structure of the society, and its political emancipation.

2. Webb’s theory of industrial Democracy

According to webb trade unionism is an extension of democracy from political

sphere to industrial sphere. According to him trade union movement is not an

instrument of revolution to overthrow the capitalist order. In fact they saw the

solution of class conflict in equality of bargaining power and collective

negotiation. It was merely to eliminate industrial autocracy and replace it with

industrial democracy.

3. Mahatma Gandhi’s Sarvodaya theory

Mahatma Gandhi philosophy based upon the sarvodya principles of Truth, Non-

violence and Trusteeship, in which class harmony prevails. According to

Mahatma Gandhi, unions are not anti-capitalistic organizations. They are in the

least degree political. He considered trade unions as essentially reformist

organizations and economic institutions, which must be organized on the basis

that capital and labour are not antagonistic but are supplementary to each other.
 CHAPTER-II

ROLE OF TRADE UNIONS & MANAGEMENT

ASSOCIATIONS AND THEIR PRESENT TREND IN INDIA

2.1 INTRODUCTION

With the changed social, political and educational environment in

terms of awareness of right, trade unions are considered a major component

of industrial relations system. Workers union plays an crucial role to protect

the interest of its members. Therefore, this chapter focuses on the need of

labour unions, significance and role of union, and welfare activities in sugar

industries in the study region.

Trade unions are those organisations of employees/workers who work

for the maintenance and enhancement of their economic status by insisting

on a rise in money wages and improvement in working conditions and

benefits. Besides this economic objective, there are other dimensions of trade

unions which have grained importance in the context of the changing socio-

political environment. The workers is not only a factor of production but an

individual whose total life situation is a matter of concern for the trade

unions. Gandhiji viewed trade unions as moral institutions aiming at making

the workers better individuals and responsible citizens. Trade unions are

considered to be institutions experimenting with industrial democracy which

would strengthen democracy. Traditionally, trade unions have been

resistance organisations defending the interests of workers and see to it that

they are not exploited. They have also been viewed as instruments of change

in the socio-political system so that workers may have their own government

and prevent their exploitation.

Different authors have defined a trade union in different ways.

However, the various definitions of a trade union exhibit two important

features, i.e., in the first place, a trade union is defined usually in the light of

the functions it is expected to perform. Though there is a diversity of

opinions in regard to the role of trade unions in the working class movement,

yet all agree to the fundamental purpose of trade unionism, viz., the pursuit

of the economic interests of the members. Secondly, a trade union is

confined to workers alone. The Webbs1 defined a trade union as "a

continuous association of wage-earners for the purpose of maintaining of

improving the conditions of their working lives." According to G.D.H. Cole,

"a trade union means an association of workers in one or more occupations -

an association carried on mainly for the purpose of protecting and advancing

the members' economic interests in connection with their daily work"2

Lester3 defines a trade union as "an association of employees designed

primarily to maintain or improve the conditions of employment of its

1
Webb, Sydney & Webb, Beatrice: History of Trade Unionism, London, 1920, p.1.
2
Cole, G.D.H. : An Introduction to Trade Unionism, p. 13.
3
Lester, R.A. : Economist of Labour, p.539.

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members". J. Cunnison4 defines a trade union as "a monopolistic

combination of wage-earners who stand to the employers in a relation of

dependence for the sale of their labour and even for its production; and that

the general purpose of the association is in view of that dependence to

strengthen their power to bargain with the employers."

2.2 OBJECTIVES AND NEED OF TRADE UNIONS

Unions concentrate their attention to achieve the following objectives:

(A) Wages and Salaries : The subject which drew the major attention of

the trade unions are wages and salaries. This item may be related to policy

matters. However, differences may arise in the process of their

implementation. In the case of unorganised senior the trade union plays a

crucial role in bargaining the pay scales.

(B) Working Conditions : Trade unions with a view to safeguard the

health of workers demand the management to provide all the basic facilities

such as lighting and ventilation, sanitation, rest rooms, safety equipment

while discharging hazardous duties, drinking water, refreshment, minimum

working hours, leave and rest, holidays with pay, job satisfaction, social

security benefits and other welfare measures.

4
Counnson J, 'Labour Organisatioin' London, 193; p-13.

43
(C) Personnel Policies : Trade unions may fight against improper

implementation of personnel policies in respect of recruitment, selection,

promotions, transfers, training, etc.

(D) Discipline : Trade unions not only conduct negotiations in respect of

the items with which their working conditions may be improved but also

protect the workers from the clutches of management whenever workers

become the victims of management's unilateral acts and disciplinary policies.

This victimisation may take the form of penal transfers, suspensions,

dismissals etc. In such a situation the separated worker who is left in a

helpless condition may approach the trade union. Ultimately, the problem

may be brought to the notice of management by the trade union, which

explains about the injustice meted out to an individual worker and fights the

management for justice. Thus, the victimised worker may be protected by

the trade union.

(E) Welfare : As stated earlier, trade unions are meant for the welfare of

workers. Trade union works as a guide, consulting authority and cooperates

inn overcoming the personal problems of workers. It may bring to the notice

of management, through collective bargaining meetings the difficulties of

workers in respect of sanitation, hospitals, quarters, schools and colleges for

their children's cultural and social problems.

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(F) Employee-Employer Relations : Harmonious relations between the

employees and employer are sine quanon for industrial peace. A trade union

always strives for achieving this objective. However, the bureaucratic

attitude and unilateral thinking of management may lead to conflicts in the

organisation which, ultimately, disrupt the relations between the workers and

the management. Trade union, being the representative of all the workers,

may carry out continuous negotiations with the management with a view to

promoting industrial peace.

(G) Negotiating Machinery : Negotiations include the proposals made

by one party and the counterproposals of the other. This process continues

until the parties reach an agreement. Thus, negotiations are based on the give

and take' principle. Trade union, being a party for negotiations, protects the

interests of workers through collective bargaining. Thus, the trade union

works as the negotiating machinery.

(H) Safeguarding Organisational Health and the Interest of the

Industry : Organisational health can be diagnosed by methods evolved for

grievance redressal and techniques adopted to reduce the rate of absenteeism

and labour turnover and to improve the employee relations. Trade union by

their effective working may achieve employee satisfaction. Therefore trade

unions help in reducing the rate of absenteeism, labour turnover and

developing systematic grievance settlement procedures leading to

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harmonious industrial relations. Trade unions can thus contribute to the

improvements in level of production, productivity and discipline thereby

improving quality of work-life.

Need For Trade Unions

Why do workers organize themselves into a trade union? It is

however, a significant question. The worker joins a trade union for a variety

of reasons, but he may be no more conscious of the motive or motives that

prompt him to join a union. The trade unions are the organizations formed by

working male and female workers both to improve the conditions of labour

and to further to attain better life.

(i) The individual workers all alone feels specially weak in a

world of mass production and mass movement. An

organization may give him an opportunity to join others for

the achievement of those objectives that he considers as

socially desirable.

(ii) The basic purpose of trade union is to safeguard the

economic interests of its members. One of the problems in

the life of the workers is how to provide sufficient food,

clothing and a home for himself and for the members of his

family. This is first and foremost a question of finding a job

on a reasonable wage. To improve and maintain the wage at

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 a reasonable standard is one of the primary reasons for

which a worker joins a trade union.

(iii) A worker does not only require the bare necessaries of

existence but he also wants to obtain the amenities of

civilized life, e.g., a better home, more leisure, better

conditions of work, etc. The workers also join the trade

unions, to a very large extent, because they have interests

such as these to promote or defend.

(iv) The need for trade unions arises due to this fact also that the

workers require help in time of sickness or death, protection

from suffering and want when they are not of a job and an

income of some kind when they are too old to work any

more.

(v) There is anesthetic reason for the existence of trade unions,

viz., need for adequate machinery for settling the relations

between the employers and employees. In modern industry

the old personal relationship between the employers and the

workers largely disappears. The worker may become

dissatisfied with his working conditions or the treatment of

his employers while the employer may feel that he has

reason for complaint against the workers. With the growth

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 to industry the number of such questions to be settled

increases and it is much better to adjust these differences by

agreement between the employers and employees through

negotiations. Thus, a trade union is the best and socially

most desirable to conduct bargaining on behalf of the

workers and the development of collective bargaining

between the employers' and workers' organizations is an

essential basis for the establishment of peace in industry.

(vi) Trade unions developed on proper lines lessens violent class

conflicts and, thus, is beneficial to employers, the

employees, the state and the public. It is, thus, clear that no

agency formed or promoted to look after the interests of the

workers can be a real substitute for trade unions. The

organization of workers is, therefore, not only necessary but

also inevitable.

2.3 FUNCTIONS OF TRADE UNIONS

Trade unions in present era of industrial development, perform two

sets of functions: the "Militant Functions and the Fraternal Functions." The

trade union is a militant organisation designed to fight for the cause of the

workers. One of the main aims of the organisation of workers into trade

union is to secure better conditions of work and employment. The trade

48
unions try to fulfill this aim by the method of collective bargaining and

negotiations and if they do not succeed in securing their purpose in this

manner, they put up a fight with the employers for achieving their end in the

form of strikes and boycotts. More recently, the trade unions have started

making efforts to secure some share in the profits and also control of the

industry. Then, the trade union is also a fraternal association, a benefit

organization, providing sickness and accident benefits to the members and

supporting them during strikes and lockouts and during the period when they

are temporarily out of work. Such financial help to the members is given by

the trade unions out of their own funds created through subscriptions by

members. Such functions are known as fraternal functions : However, in

modern period, the various functions are performed by trade unions as

pointed out below:

(A) Militant or protective or intra-mutual functions : These

functions include protecting the workers' interests, i.e., hike in

wages, providing more benefits, job security, etc. through

collective bargaining and direct action such as strikes, gheraos,

etc.

(B) Fraternal or extra-mutual functions : These functions include

providing financial and non-financial assistance to workers

during the periods of strikes and lock-outs, extension of medical

49
 facilities during slackness and casualties, provision of

education, recreation, recreational and housing facilities,

provision of social and religious benefits, etc.

(C) Political functions : These functions include affiliating the

union to a political party, helping the political party in enrolling

members, collecting donations, seeking the help of political

parties during the periods of strikes and lock-outs.

(D) Social functions : These functions include carrying out social

service activities, discharging social responsibilities through

various sections of the society like educating the customers etc.

From above cited functions, one cannot take a static view of the

functions which trade unions have to perform in the larger interests of the

community. In every country the role of the trade unions has to change

depending on the stage of economic and social development. It also depends

on the strength of the unions, both organisational and financial, and also to a

great extent on the institutional set-up of the society in which they operate.

For instance, in France and the Netherlands, unions are required statutorily

to be consulted on any draft legislation dealing with economic and social

issues. In Sweden, unions participate at the level of the Planning

Commission and are responsible for the implementation of labour and social

security legislation. The range of responsibilities of the unions covers the

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experience of co-determination in the Federal Republic of Germany and

workers' control over industrial establishments in Yugoslavia. In Denmark,

unions participate at the level of the Economic Council. In the U.S.A. and in

Australia, the contacts of unions with governmental authorities are less

formal. Like unions' participation in framing and implementation of social

and economic policies, their consciousness of community responsibility

varies from country to country depending upon the extent of wage

employment.

In the early stages of their growth, unions in many countries

concerned themselves primarily with their members' interests, but took on

wider functions in due course. Thus trade unions have become far more

developed than their forerunners undertaking a wider range of functions and

having a clearer perception of their ultimate aims. As put by John Price,5

"The trade union of today is not content with protecting and improving

wages and conditions of labour; it concerns with all matters by which the

workers are likely to be affected whether as producers or consumers,

whether as units of industrial manpower or as citizens." It has been aptly put

by Professor Laksi that, "Trade unions today are plurist in character and

pragmatic in method; if they are not, they are unlikely to survive the

demands made upon them by so swiftly changing an environment."6

5
Price, John: Op. Cit., p.34
6
Laski, H.J. : Op. Cit, p.28.

51
Social Responsibilities of Trade Unions

(i) To educate the rank and file workers so that the traditional

agitational role be gradually transformed into one of

understanding and co-operation;

(ii) To keep the well-being and progress of the society

constantly before them by way of refraining from

unnecessary strikes work stoppage, go-slow intimidation;

(iii) To protect the interests of the consumer which is usually

lost sight of in bipartite agreements reached between the

parties;

(iv) To discharge their role in the success of the schemes for

planned economic development of the country, maximizing

production and distribution in an equitable manner.

According to the first plan document, "for the successful

execution of the plan,' the co-operation of the trade unions

and employers is indispensable." The Second Plan

document also emphasized that, "a strong trade union

movement is necessary both for safe guarding the interests

of labour and for realizing the targets of production";

(v) To adopt themselves to charging social needs and to rise

above divisive forces of caste, religion and language and to

52
 help in promoting national, social and emotional integration

at all levels.

(vi) To instil in their members a sense of responsibility towards

industry and the community. Further they should seek to

harmonise the sectional goals of their members with the

community interests in the larger good of the society;

(vii) To organise the unorganized sections of the working class in

the rural and urban areas and help these groups in

organising themselves. They should involve themselves

more in the upliftment of those below the poverty line,

rather than strive for achieving more comforts for the

privileged section of the organised labour.

(viii) To encourage capital formation by supporting small savings

schemes;

(ix) To support modernization of equipment and rationalization

programmes;

(x) To work for a stable social order by establishing industrial

democracy and social justice; and

(xi) To help in holding the price line by keeping a vigilant watch

on prices.

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 Workers organise themselves into unions primarily to protect their

own interests. The foremost responsibilities impose on them the obligation to

preserve and strengthen internal democracy. To achieve this, trade unions

have to improve their internal administration, instill voluntary discipline and

responsible conduct among workers, strive to resolve the problems of rivalry

and work for the creation of a unified trade union movement. The protection

of the interests of the union members is restricted not only to a narrower

sphere of their jobs but also extends to a broader sphere to serve their

members through the establishments and promotion of co-operatives,

cultural and welfare organisations and by helping them to utilize other social

services provided by the community. Another social responsibility of trade

unions is in the area of making a common cause to fight all evils in society-

economic, social and political, such as hoarding, black-marketing and

speculation. This brings about a close relationship between the workers, their

unions and the community. The task before our country is not simply limited

to getting some higher benefits for labour but extends to a basic

transformation of the relationship among the different groups in society. The

trade unions can act as one of the major instruments in bringing about social

change and economic progress.

In the words of the planning commission, "trade unions have a vital

and constructive role in improving the quality of life of the workers. They

54
should evince greater interest in welfare programmes for their members,

such as education including literary, health and family planning, and

recreational and cultural activities. They can also promote personal and

environmental hygiene and a sense of thrift and savings. Government can

consider some financial aid to those trade unions which take up such welfare

activities. Such involvement in constructive activities would help the trade

unions is furthering the interests of their members."7

The responsibilities which the unions have to undertake for the

community cannot be discharged unless the members themselves are served

better. Here, the society has to discharge its responsibility towards labour

and the trade union. The trade union movement cannot function effectively

unless the society ensures democratic rights and civil liberties to its members

and caters to there economic and social interests. Thus, we find that labour,

capital and society have common interests which have to be satisfied to

ensure their survival and growth. Once these common interests are

acknowledged by the three parties, it becomes easier for them to discharge

their responsibilities to each other in an atmosphere of harmony and mutual

co-operation.

7
Govt. of India, Planning Commission, New Six Five Year Plan, (1980-85), p.405.

55
 consciously or unconsciously, actively or passively, against the intellectuals
who would frame its programmes and shape its policies.

But Perlman also felt that a theory of the labour movement should include a theory
of the psychology of the labouring man. For instance, there was a historical
continuity between the guilds and trade unions, through their common fundamental
psychology; the psychology of seeking a livelihood in the face of limited economic
opportunity. It was when manual workers became aware of a scarcity of
opportunity, that they banded together into unions for the purpose of protecting
their jobs and distributing employment opportunities among themselves equitably,
and to subordinate the interests of the individual to the whole labour organism.
Unionism was ruled, thus, by this fundamental scarcity consciousness (Perlman,
1970).

8. Hoxie’s Functional Classification of Unionism:

He classified Unionism on the basis of their functions. His classification were

Business Unionism for protecting the interest of various craftmen, “Uplift
unionism” for the purpose of contributing better life such as association of sales
engineers, etc. “Revolutionary Unionism” which is eager to replace existing social
order, “Predatory Unionism” which rests on these support of others.

9. Tannenbaum’s Theory of Man Vs. Machine:

According to him, Union is formed in reaction to alienation and loss of community

in an individualistic and unfeeling society. In his words, the union returns to the
workers his society, which he left behind him when he migrated from a rural
background to the anonymity of an urban industrial location. The union gives the
worker a fellowship and a value system that he shares with others like him.
Institutionally, the trade union movement is an unconscious effort to harness the
drift of our time and reorganize it around the cohesive identity that men working
together always achieve.

Classification of Theories of Trade Unionism:

The various approaches/theories of trade unions can be classified into the

following five types:
1. Revolutionary Theory:
The revolutionary approach/theory of trade union is developed by Karl Marx.
“This theory is also known as “the theory of class war and dialectical materialism”.
According to Marx, trade union was the foremost organising centre to provide
locus for streamlining the forces of working classes The trade unions are, for Marx,
the instruments to overthrow capitalism.

These are, thus, prime instruments of the class struggle between proletarian
workers and capitalist businessmen. Marx advocated that the working class must
not divert itself from its revolutionary programme, because it is labour struggle
only that can abolish capitalism. To Marx, workers‟ emancipation involves
abolition of capitalism.

2. Evolutionary Theory:
This theory also known as “theory of industrial democracy” was enunciated by
Sydney and Beatrice Webbs. To Webbs, trade unionism is an extension of the
principle of democracy in the industrial sphere. In other words, trade unionism is
not an instrument to overthrow the capitalism, but a means of equalizing the
bargaining power of labour and capital.

Trade unionism provides a means, by which workers overcome managerial

dictatorship, on the one hand, and express their voice in the determination of the
conditions under which they have to work, on the other.

3. Theory of Industrial Jurisprudence:

According to S. H. Slitcher, the propounder of the “Theory of Industrial
Jurisprudence”, workers individually fail in bargaining with employers for pro-
tecting their interests. In his view, trade unionism served as a means for workers to
protect them in work. Such an approach of trade unionism, Slitcher termed as, “a
system of industrial jurisprudence”.

4. Rebellion Theory:
To Frank Tannenbaum, the propounder of “Rebellion Theory”, trade unionism is a
spontaneous outcome in the growth of mechanisation. He believes that the use of
machines leads to exploitation of workers. Thus, machine is the cause and labour
movement, i.e., trade unionism is the result. In other words, trade unionism is a
rebellion approach against mechanisation and automatization of industrial society
to protect workers‟ interest in the enterprises.
5. The Gandhian Approach:
The Gandhian approach of trade unionism is based on “class collaboration rather
than class conflict and struggle”. The idea to take worker‟s due share from
capitalist by reform and self-consciousness among workers led to the emergence of
trade unionism. Thus, the Gandhian approach of trade unionism is not only related
to material aspect, but also moral and intellectual aspects.

Gandhi emphasized that the direct aim of a trade unionism is not, in the last degree
political. Instead, its direct aim is internal reform and also evolution of internal
strength. Also, trade unionism, according to the Gandhian approach is not anti-
capitalistic as is generally viewed.
[Ref.: www.yourarticlelibrary.com>5 Classification of Theories of Trade Union]

Summary:
This presentation brings out various approaches and theories, which try to explain
the logic and legacy behind idea of Trade Unionism. These approaches and
theories have been broadly classified in to five categories, whilst various thinkers
and authors have given their respective views on the origin and growth of trade
unions.

Questions to Check Progress:

1. What are the Theories of Trade Unionism?

2. What is the classification of the theories of Trade Unionism?

 THE TRADE UNIONS ACT, 1926
(Modified as on 19th November, 2018)
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
REGISTRATION OF TRADE UNIONS
3. Appointment of Registrars.
4. Mode of registration.
5. Application for registration.
6. Provisions to be contained in the rules of a Trade Union.
7. Power to call for further particulars and to require alteration of name.
8. Registration.
9. Certificate of registration.
10. Cancellation of registration.
11. Appeal.
12. Registered office.
13. Incorporation of registered Trade Unions.
14. Certain Acts not to apply to registered Trade Unions.
CHAPTER III
RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS
15. Objects on which general funds may be spent.
16. Constitution of a separate fund for political purposes.
17. Criminal conspiracy in trade disputes.
18. Immunity from civil suit in certain cases.
19. Enforceability of agreements.
20. Right to inspect books of Trade Union.
21. Rights of minors to membership of Trade Unions.
21A. Disqualifications of office-bearers of Trade Unions.
22. Proportion of office-bearers to be connected with the industry.
23. Change of name.
24. Amalgamation of Trade Unions.
25. Notice of change of name or amalgamation.

1
SECTIONS
26. Effects of change of name and of amalgamation.
27. Dissolution.
28. Returns.
CHAPTER IV
REGULATIONS
29. Power to make regulations.
30. Publication of regulations.
CHAPTER V
PENALTIES AND PROCEDURE
31. Failure to submit returns.
32. Supplying false information regarding Trade Unions.
33. Cognizance of offences.

2
 THE TRADE UNIONS ACT, 1926
ACT NO. 16 OF 19261
[25th March, 1926.]
An Act to provide for the registration of Trade Unions and in certain respects to
define the law relating to registered Trade Unions 2***.
WHEREAS it is expedient to provide for the registration of Trade Unions and in certain respects to
define the law relating to registered Trade Unions 2***; It is hereby enacted as follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called the 3*** Trade Unions
Act, 1926.
4
[(2) It extends to the whole of India 5***.]
(3) It shall come into force on such date6 as the Central Government may, by notification in the
Official Gazette, appoint.
2. Definitions.—In this Act, 7[“the appropriate Government” means, in relation to Trade Unions
whose objects are not confined to one State, the Central Government, and in relation to other Trade
Unions, the State Government, and] unless there is anything repugnant in the subject or context,—
(a) “executive” means the body, by whatever name called, to which the management of the
affairs of a Trade Union is entrusted;
(b) “ 8 [office-bearer]”, in the case of a Trade Union, includes any member of the executive
thereof, but does not include an auditor;
(c) “prescribed” means prescribed by regulations made under this Act;
(d) “registered office” means that office of a Trade Union which is registered under this Act as
the head office thereof;
(e) “registered Trade Union” means a Trade Union registered under this Act;
9
[(f) “Registrar” means—
(i) a Registrar of Trade Unions appointed by the appropriate Government under section 3,
and includes any Additional or Deputy Registrar of Trade Unions; and
(ii) in relation to any Trade Union, the Registrar appointed for the State in which
the head or registered office, as the case may be, of the Trade Union is situated;]

1. This Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962; to Pondicherry by Reg. 7 of 1963 (w.e.f. 1-101963)
and to Lakshadweep by Reg. 8 of 1965, s. 3 and Sch.
The Act has been amended in its application to Maharashtra by Maharashtra Act 3 of 1968 and to Madhya Pradesh by Madhya
Pradesh Acts 28 of 1960 and 16 of 1968.
2. The words “in the Provinces of India” omitted by Act 42 of 1960, s. 2.
3. The word “Indian” omitted by Act 38 of 1964, s. 3 (w.e.f. 1-4-1965).
4. Subs. by the A.O. 1950, for sub-section (2).
5 . The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Sch.
(w.e.f. 1-9-1971).
6. 1st June, 1927, sec Gazette of India, 1927, Pt. I, p. 467.
7. Ins. by the A.O. 1937.
8. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).
9. Subs. by Act 42 of 1960, s. 3, for cl. (f).

3
 (g) “trade dispute” means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected with the
employment or non-employment, or the terms of employment or the conditions of labour, of
any person, and “workmen” means all persons employed in trade or industry whether or not
in the employment of the employer with whom the trade dispute arises; and
(h) “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:
Provided that this Act shall not affect—
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft.
CHAPTER II
REGISTRATION OF TRADE UNIONS
3. Appointment of Registrars.—1[(1)] 2[The appropriate Government] shall appoint a person to be
be the Registrar of Trade Unions for 3[each State].
4
[(2) The appropriate Government may appoint as many Additional and Deputy Registrars of
Trade Unions as it thinks fit for the purpose of exercising and discharging, under the
superintendence and direction of the Registrar, such powers and functions of the Registrar under
this Act as it may, by order, specify and define the local limits within which any such Additional or
Deputy Registrar shall exercise and discharge the powers and functions so specified.
(3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy
Registrar exercises and discharges the powers and functions of a Registrar in an area within which the
registered office of a Trade Union is situated, the Additional or Deputy Registrar shall be deemed to be
the Registrar in relation to the Trade Union for the purposes of this Act.]
4. Mode of registration.— 5[(1)] 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.
6
[(2) Where an application has been made under sub-section (1) for the registration of a Trade
Union, such application shall not be deemed to have become invalid merely by reason of the fact
that, at any time after the date of the application, but before the registration of the Trade Union,
some of the applicants, but not exceeding half of the total number of persons who made the
application, have ceased to be members of the Trade Union or have given notice in writing to the
Registrar dissociating themselves from the applications.]
5. Application for registration.—(1) Every application for registration of a 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 particular’s, namely:—

1. Section 3 renumbered as sub-section (1) thereof by Act 42 of 1960, s. 4.

2. Subs. by the A.O. 1937, for “Each L.G.”.
3. Subs., ibid., for “the Province”.
4. Ins. by Act 42 of 1960, s. 4.
5. Section 4 renumbered as sub-section (1) thereof by s. 5, ibid.
6. Ins. by s. 5, ibid.

4
 (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 1[office-bearers] of the Trade
Union.
(2) Where a Trade Union has been in existence for more than one year before the making of
an application for its registration, there shall be delivered to the Registrar, together with the
application, a general statement of the assets and liabilities of the Trade Uni on prepared in
such form and containing such particulars as may be prescribed.
6. Provisions to be contained in the rules of a Trade Union. —A Trade Union shall not
be entitled to registration under this Act, unless the executive thereof is constituted in
accordance with the provisions of this Act, and the rules thereof provide for the following
matters, namely:—
(a) the name of the Trade Union;
(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purposes for which the general funds of the Trade Union shall be
applicable, all of which purposes shall be purposes to which such funds are lawfully
applicable under this Act;
(d) the maintenance of a list of the members of the Trade Union and adequate facilities for the
inspection thereof by the 1[office-bearers] and members of the Trade Union;
(e) the admission of ordinary members who shall be persons actually engaged or
employed in an industry with which the Trade Union is connected, and also the admission of
the number of honorary or temporary members as 1 [office-bearers] required under section 22
to form the executive of the Trade Union;
2
[(ee) the payment of a subscription by members of the Trade Union which shall be not less than
twenty-five naye paise per month per member;]
(f) the conditions under which any member shall be entitled to any bene fit assured by
the rules and under which any fine or forfeiture may be imposed on the members;
(g) the manner in which the rules shall be amended, varied or rescinded;
(h) the manner in which the members of the executive and the other 1[office-bearers] of the
Trade Union shall be appointed and removed;
(i) 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 1 [office-bearers] and members of the Trade Union; and
(j) the manner in which the Trade Union may be dissolved.
7. Power to call for further particulars and to require alteration of name .—(1) The
Registrar may call for further information for the purpose of satisfying himself that any
application complies with the provisions of section 5, or that the Trade Union is entitled to
registration under section 6, and may refuse to register the Trade Union until such information
is supplied.
(2) If the name under which a Trade Union is proposed to be registered 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 require the persons applying for registration to alter

1. Subs. by Act 38 of 1964, s. 2, for “officers” (w.e.f. 1-4-1965).

2. Ins. by Act 42 of 1960, s. 6 .

5
the name of the Trade Union stated in the application, and shall refuse to register the Union
until such alteration has been made.
8. Registration.—The Registrar, on being satisfied that the Trade Union has complied with all
the requirements of this Act in regard to registration, shall register the Trade Union by entering in a
register, to be maintained in such form as may be prescribed, the particulars relating to th e Trade
Union contained in the statement accompanying the application for registration.
9. Certificate of registration.—The Registrar, on registering a Trade Union under section 8, shall
issue a certificate of registration in the prescribed form which shall be conclusive evidence that the Trade
Union has been duly registered under this Act.
10. Cancellation of registration.—A certificate of registration of a Trade Union may be withdrawn
or cancelled by the Registrar—
(a) on the application of the Trade Union to be verified in such manner as may be
prescribed, or
(b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake,
or that the Trade Union has ceased to exist or has wilfully and after notice from the Registrar
contravened any provision of this Act or allowed any rule to continue in force which is
inconsistent with any such provision, or has rescinded any rule providing for any matter
provision for which is required by section 6:
Provided that not less than two months’ previous notice in writing specifying the ground on which it
is proposed to withdraw or cancel the certificate shall be given by the Registrar to the Trade Union
before the certificate is withdrawn or cancelled otherwise than on the application of the Trade Union.
1
[11. Appeal.—(1) Any person aggrieved by any refusal of the Registrar to register a
Trade Union or by the withdrawal or cancellation of a certificate of registration may, within
such period as may be prescribed, appeal,—
(a) where the head office of the Trade Union is situated within the limits of a Presidency-town
2
***, to the High Court, or
(b) where the head office is situated in any other 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 3[appropriate Government] may appoint in this behalf for that area.
(2) The appellate Court may dismiss the appeal, or pass an order directing the Registrar to
register the Union and to issue a certificate of registration under the provisions of section 9 or
setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and
the Registrar shall comply with such order.
(3) For the purpose of an appeal under sub-section (1) an appellate Court shall, so far as may
be, follow the same procedure and have the same powers as it follows and has when trying a suit
under the Code of Civil Procedure, 1908 (5 of 1908), and may direct by whom the whole or any
part of the costs of the appeal shall be paid, and such costs shall be recovered as if they had
been awarded in a suit under the said Code.
(4) In the event of the dismissal of an appeal by any Court appointed under clause ( b) of
sub-section (1), the person aggrieved shall have a right of appeal to the High Court, and the
High Court shall, for the purpose, of such appeal, have all the powers of an appellate Court
under sub-sections (2) and (3), and the provisions of those sub-sections shall apply
accordingly.]

1. Subs. by Act 15 of 1928, s. 2, for section 11.

2. The words “or of Rangoon” omitted by the A.O. 1937.
3. Subs., ibid., for “L.G.”.

6
 12. Registered office.—All communications and notices to a registered Trade Union may
be addressed to its registered office. Notice of any change in the addr ess of the head office
shall be given within fourteen days of such change to the Registrar in writing, and the changed
address shall be recorded in the register referred to in section 8.
13. Incorporation of registered Trade Unions.—Every registered Trade Union shall be a
corporate by the name under which it is registered, and shall have perpetual succession and
a body common seal with power to acquire and hold both movable and immovable property
and to contract, and shall by the said name sue and be sued.
14. Certain Acts not to apply to registered Trade Unions.—The following Acts,
namely:—
(a) The Societies Registration Act, 1860 (21 of 1860),
(b) The Co-operative Societies Act, 1912 (2 of 1912),
1
* * * * *
2
[(e) The Companies Act, 1956 (1 of 1956),]
shall not apply to any registered Trade Union, and the registration of any such Trade Union under any
such Act shall be void.
CHAPTER III
RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS
15. Objects on which general funds may be spent .—The general funds of a
registered Trade Union shall not be spent on any other objects than the following,
namely:—
(a) the payment of salaries, allowances and expenses to 3[office-bearers] of the Trade
Union;
(b) the payment of expenses for the administration of the Trade Union, including
audit of the accounts of the general funds of the Trade Union;
(c) the prosecution or defence of any legal proceeding to which the Trade Union or
any member thereof is a party, when such prosecution or defence is undertaken for the
purpose of securing or protecting any rights of the Trade Union as such or any rights
arising out of the relations of any member with his employer or with a person whom the
member employs;
(d) the conduct of trade disputes on behalf of the Trade Union or a ny member
thereof;
(e) the compensation of members for loss arising out of trade disputes;
(f) allowances to members or their dependant on account of death, old age, sickness, accidents
or unemployment of such members;
(g) the issue of, or the undertaking of liability under, policies of assurance on the lives
of members, or under policies insuring members against sickness, accident or
unemployment;
(h) the provision of educational, social or religious benefits for members (including
the payment of the expenses of funeral or religious ceremonies for deceased members)
or for the dependants of members;

1. Clauses (c) and (d) rep. by Act 25 of 1942, s. 2 and the First Schedule.
2. Subs. by Act 42 of 1960, s. 7, for clause ( e).
3. Subs. by Act 38 of 1964, s. 2, for “officers” (w.e.f. 1-4-1965).

7
 (i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting
employers or workmen as such;
(j) the payment, in furtherance of any of the objects on which the general funds of the
Trade Union may be spent, of contributions to any cause intended to benefit workmen in
general, provided that the expenditure in respect of such contributions in any financial year
shall not at any time during that year be in excess of one-fourth of the combined total of the
gross income which has up to that time accrued to the general funds of the Trade Union
during that year and of the balance at the credit of those funds at the commencement of that
year; and
(k) subject to any conditions contained in the notification, any other object notified by the
1
[appropriate Government] in the Official Gazette.
16. Constitution of a separate fund for political purposes.—(1) A registered Trade
Union may constitute a separate fund, from contributions separately levied for or made to that
fund, from which payments may be made, for the promotion of the civic and political interests
of its members, in furtherance of any of the objects specified in sub -section (2).
(2) The objects referred to in sub-section (1) are:—
(a) the payment of any expenses incurred, either directly or indirectly, by a candidate or
prospective candidate for election as a member of any legislative body constituted under 2 [the
Constitution] or of any local authority, before, during, or after the election in connection with his
candidature or election; or
(b) the holding of any meeting or the distribution of any literature or documents in support of
any such candidate or prospective candidate; or
(c) the maintenance of any person who is a member of any legislative body constituted under
2
[the Constitution] or of any local authority; or
(d) the registration of electors or the selection of a candidate for any legislative body constituted
under 2[the Constitution] or for any local authority; or
(e) the holding of political meetings of any kind, or the distribution of political literature or
political documents of any kind.
3
[(2A) In its application to the State of Jammu and Kashmir, references in sub-section (2) to any
legislative body constituted under the Constitution shall be construed as including references to the
Legislature of that State.]
(3) No member shall be compelled to contribute to the fund constituted under sub -section (1);
and a member who does not contribute to the said fund shall not be excluded from any benefits of
the Trade Union, or placed in any respect either directly or indirectly under any disability or at
any disadvantage as compared with other members of the Trade Union (except in relation to the
control or management of the said fund) by reason of his not contributing to the said fund; and
contribution to the said fund shall not be made a condition for Admission to the Trade Union.
17. Criminal conspiracy in trade disputes.—No 4 [office-bearer] or member of a registered
Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal
Code (45 of 1860), in respect of any agreement made between the members for the purpose of
furthering any such object of the Trade Union as is specified in section 15, unless the agreement is
an agreement to commit an offence.

1. Subs. by the A.O. 1937, for “G.G in C.”.

2. The words “the Government of India Act” have been successively amended by the A.O. 1937, the A.O. 1950 and Act 42 of
1960 to read as above.
3. Ins. by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1 -9-1971).
4. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).

8
 18. Immunity from civil suit in certain cases.—(1) No suit or other legal proceeding shall be
maintainable in any Civil Court against any registered Trade Union or any 1 [office-bearer] or
member thereof in respect of any act done in contemplation or furtherance of a trade dispute to
which a member of the Trade Union is a party on the ground only that such act induces some other
person to break a contract of employment, or that it is in interference with the trade, business or
employment of some other person or with the right of some other person to dispose of his capital
or of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil
Court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent
of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to
express instructions given by, the executive of the Trade Union.
19. Enforceability of agreements.—Notwithstanding anything contained in any other law for
the time being in force, an agreement between the members of a registered Trade Union shall not
be void or voidable merely by reason of the fact that any of the objects of the agreement are in
restraint of trade:
Provided that nothing in this section shall enable any Civil Court to entertain any legal
proceeding instituted for the express purpose of enforcing or recovering damages for the breach
of any agreement concerning the conditions on which any members of a Trade Union shall or
shall not sell their goods, transact business, work, employ or be employed.
20. Right to inspect books of Trade Union.—The account books of a registered Trade
Union and the list of members thereof shall be open to inspection by an 1[office-bearer] or
member of the Trade Union at such times as may be provided for in the rules of the Trade Union.
21. Rights of minors to membership of Trade Unions.—Any person who has attained the
age of fifteen years may be a member of a registered Trade Union subject to any rules of the
Trade Union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and
execute all instruments and give all acquittances necessary to be executed or given under the
rules.
2
* * * * *
3
[21A. Disqualifications of office-bearers of Trade Unions.—(1) A person shall be disqualified
for being chosen as, and for being, a member of the executive or any other office-bearer of a registered
Trade Union if—
(i) he has not attained the age of eighteen years;
(ii) he has been convicted by a Court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period of five years has elapsed since his release.
(2) Any member of the executive or other office-bearer of a registered Trade Union who, before the
commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), has been convicted
of any offence involving moral turpitude and sentenced to imprisonment, shall on the date of such
commencement cease to be such member or office-bearer unless a period of five years has elapsed since
his release before that date.]
4
[(3) In its application to the State of Jammu and Kashmir, reference in sub-section (2) to the
commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), shall be construed as
reference to the commencement of this Act in the said State.]
22. Proportion of office-bearers to be connected with the industry.—Not less than one-half
of the total number of the 1 [office-bearers] of every registered Trade Union shall be persons
actually engaged or employed in an industry with which the Trade Union is connected:

1. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).

2. The proviso omitted by s. 4, ibid. (w.e.f. 1-4-1965).
3. Ins. by s. 5, ibid. (w.e.f. 1-4-1965).
4. Ins. by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).

9
 Provided that the 2[appropriate Government] may, by special or general order, declare that the
provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in th e
order.
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.
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.
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 the reto, 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 bee n
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 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 in 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, he 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.

1. Subs. by Act 38 of 1964, s. 2, for “officers” (w.e.f. 1-4-1965).

2. Subs. by the A.O. 1937, for “L.G.”.

10
 28. Returns.—(1) There shall be sent annually to the Registrar, on or before such date as may
be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure
of every registered Trade Union during the year ending on the 31st day of 1 [December] next
preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such
31st day of 1[December]. The statement shall be prepared in such form and shall comprise such
particulars as may be prescribed.
(2) Together with the general statement there shall be sent to the Registrar a statement
showing all changes of 2[office-bearers] made by the Trade Union during the year to which the
general statement refers, together also with a copy of the rules of the Trade Union corrected up to
the date of the despatch thereof to the Registrar.
(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the
Registrar within fifteen days of the making of the alteration.
3
[(4) For the purpose of examining the documents referred to in sub-sections (1), (2) and (3), the
Registrar, or any officer authorised by him, by general or special order, may at all reasonable times
inspect the certificate of registration, account books, registers, and other documents, relating to a Trade
Union, at its registered office or may require their production at such place as he may specify
in this behalf, but no such place shall be at a distance of more than ten miles from the
registered office of a Trade Union.]
CHAPTER IV
REGULATIONS
29. Power to make regulations.—(1) 4*** the 5[appropriate Government] may make regulations for
the purpose of carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely:—
(a) the manner in which Trade Unions and the rules of Trade Unions shall be registered and the
fees payable on registration;
(b) the transfer of registration in the case of any registered Trade Union which has changed its
head office from one State to another;
(c) the manner in which, and the qualifications of persons by whom, the accounts
of registered Trade Unions or of any class of such Unions shall be audited;
(d) the conditions subject to which inspection of documents kept by Registrars shall
be allowed and the fees which shall be chargeable in respect of such inspections; and
(e) any matte which is to be or may be prescribed.
30. Publication of regulations.—(1) The power to make regulations conferred by
section 29 is subject to the condition of the regulations being made after previous
publication.
(2) The date to be specified in accordance with clause ( 3) of section 23 of the General
Clauses Act, 1897 (10 of 1897), as that after which a draft of regulations proposed to be
made will be taken into consideration shall not be less than three months from the date on
which the draft of the proposed regulations was published for general information.
(3) Regulations so made shall be published in the Official Gazette, and on such publication shall
have effect as if enacted in this Act.

1. Subs. by Act 38 of 1964, s. 6, for “March” (w.e.f. 1-4-1965).

2. Subs. by s. 2, ibid., for “officer” (w.e.f. 1-4-1965).
3. Ins. by Act 42 of 1960, s. 9.
4. The words “Subject to the control of the G.G. in C. ” omitted by the A.O. 1937.
5. Subs. ibid., for “L.G.”.

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 CHAPTER V
PENALTIES AND PROCEDURE
31. Failure to submit returns.—(1) If default is made on the part of any regiatared
Trade Union in giving any notice or sending any statement or other document as required by
or under any provision of this Act, every 1[office-bearer] or other person bound by the rules
of the Trade Union to give or send the same, or, if there is no such 1 [office-bearer] or person,
every member of the executive of the Trade Union, shall be punishable with fine which may
extend to five rupees and, in the case of a continuing default, with an additional fine w hich
may extend to five rupees for each week after the first during which the default continues:
Provided that the aggregate fine shall not exceed fifty rupees.
(2) Any person who wilfully makes, or causes to be made, any false entry in, or any
omission from, the general statement required by section 28, or in or from any copy of rules
or of alterations of rules sent to the Registrar under that section, shall be punishable with
fine which may extend to five hundred rupees.
32. Supplying false information regarding Trade Unions.—Any person who, with
intent to deceive, gives to any member of a registered Trade Union or to any person intending
or applying to become a member of such Trade Union any document purporting to be a copy
of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to
believe, is not a correct copy of such rules or alterations as are for the time being in force, or any
person who, with the like intent, gives a copy of any rules of any unregistered Trade Union to any
person on the pretence that such rules are the rules of a registered Trade Union, shall be
punishable with fine which may extend to two hundred rupees.
33. Cognizance of offences.—(1) No Court inferior to that of a Presidency Magistrate or a
Magistrate of the first class shall try any offence under this Act.
(2) No Court shall take cognizance of any offence under this Act, unless complaint thereof
has been made by, or with the previous sanction of, the Registrar or, in the case of an offence
under section 32, by the person to whom the copy was given, within six months of the date on
which the offence is alleged to have been committed.

_______

1. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).

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