Amalgamation of Trade Union

Project Work of Labour Law I

On

Amalgamation of Trade Union

Submitted To:-Dr. S. C. Roy

Faculty of Labour Law

Submitted By: Ankit Anand

Roll No. 916
2nd Year B.A. LL.B. (Hons)

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ACKNOWLEDGEMENT
I am highly elated to have worked on my research topic Amalgamtion of Trade
Union under the guidelines of Dr. S. C. Roy Faculty of Labour Law I. I am very grateful
to him for his proper guidance.
I would like to take this opportunity to express my profound gratitude and deep regard to him
for his exemplary guidance, valuable feedback and constant encouragement throughout the
duration of the project.
His valuable suggestions were of immense help throughout my project work.
His perceptive criticism kept me working to make this project in a much better way. Working
under him was an extremely knowledgeable experience for me.
I would also like to thank all my friends and my seniors and apart from all these I would like
to give special regard to the librarian of my university who made a relevant effort regarding
to provide the materials to my topic and also assisting me.
Finally I would like to thank my parents and brother for their immense support and presence
during this whole project work.

Ankit Anand

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Table of Contents:1.
2.
3.
4.
5.

Introduction (Trade Union)..04

Aims and Objectives....05
Research Methodology05
Source of Data.06
Trade Union :- An Overview06
Objective of this Act06
Applicability of this Act...06
Provision of this Act.07
6. Registration of Trade Union.09
The Industrial employment (Standing Orders) Act, 194609
The industrial Dispute Act, 1947.09
7. Industrial Relation Machinery.10
Conciliation..10
Adjudication.11
Role of Government.11
8. Objective of Trade Union.12
Representation..12
Negotiation...12
Collective Bargain13
9. Reason for worker to join Trade Union16
Function of Trade Union..17
Essential of Trade Union..17
Advantage of Trade Union..18
Pattern and Structure of Trade Union..19
Factors affecting the growth of Trade Union...19
Statutory Necessity of Trade Union.21
10. Amalgamation of Trade Union.21
11. Case Study23
12. Conclusion24
13. Bibliography.25

Introduction:The institution of Trade union, though comparatively recent in origin has become a powerful
force by way of its direct influence in the social and economic life of industrial workers.
Sydney and Beatrice Webb considered Trade Unionism to be "the extension of the principle
of democracy in the sphere of industry". 1 Unfortunately this broad idea is weakened by
causes not too far to seek; multiplicity of unions, placing political ideology before economic
interests and to some extent insufficient leadership.
1 G B Ramanujan, Story of Indian Labour, Everest Press, Delhi, 1 986,p.400.
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Since the conflict or co-operation between workers and management is greatly influenced by
the nature of the workers organisation and the processes that induce their structure, study of
Trade Union becomes a critical topic in the industrial relations area. In this chapter an effort
is made to study the origin of Trade Unions in India, the nature and pattern of unions, the
relations within the unions, its consequences for the structure and behaviour of Trade Unions
in the Industry and the implications they leave to be marked and provide in the years to come.
Workers Organisation - A Necessity and its Realisations in India.2
Trade Unions are the product of large scale industrialisation and concentration of industries.
Before the advent of industrialisation there were personal contracts between the employers
and the workers (as the industries were run In the homes and with the tools of the employer).
So there was no need to have any machinery for determining their relationship. But under the
modem factory system this personal contact lost its weight due to setting up of large scale
industrial units, with concentration in towns and with the heavy use of machinery. The lure of
employers, to reduce the cost of production, in order to withstand in the competitive market
and to maximise their profits enabled them to use more and more technologically advanced
devices of production and sophisticated machines which, in turn, have contributed in further
drying up the dampness of the personal relationship. Simultaneously it had given rise to a
new class of workers who were dependent on wages only for their livelihood and had come
from different parts of the country, for seeking employment in these industries.3

Trade Unions and Related Legislation

The Trade Unions Act, 1926
The Trade Unions Act was passed in 1926 under the title of the Indian Trade unions Act and
was brought into effect from I" June 1927" by a government. The act was amended in 1947,
1960 and 1962. Subsequently, the word 'Indian' was deleted from the amended Act of 1964,
which came into force from 1 " April 1 965.

2 R. Banerjee, "Industrial Relations in India", Indttstrial Relations, 32(5) Sept- Oct,

1978,pp.171-188
3 R.N. Pandey, "Labour legislation in India, growth and development", Indian Labour
Journal, 20 September 1979, pp.1673-16 81

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It was enacted to provide for the registration of the trade unions and in certain respects to
define the law relating to registered trade unions.
1. This Act may be called the Trade Unions Act, 1926
2. It extends to the whole of India.
3. It shall come into force on such date52 as the central government may,by notification
in the official gazette, appoint

AIMS AND OBJECTIVES

The prime objective of the researcher is to:

To acquaint himself with the meaning of Trade Union.

To know various function and objective of Trade Union.

To know essential, advantage, disadvantage of Trade Union.

To know the various types of Trade Union.

To know the factor affecting the growth of Trade Union.

To Know how trade union amalgamate.

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

RESEARCH METHODLOGY
The various books, various articles, websites, Law journals, Acts, Treatises, are referred for
this topic. The sources from which the material for this research collected are primary &
secondary. The methodology used in the research has been Doctrinal. No non-doctrinal
method has been used by the researcher in this project work.
SOURCES OF DATA

Primary Sources: -

1. Labour and Industrial Laws

2. Code of Criminal Procedure

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

2. Books on Code of Criminal Procedure
3. Magazines
4. Websites

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5. Journals etc.

Trade Union:Objective of the Act4:The Act was enacted with the object of providing for the registration of trade unions and
verification of the membership of trade unions registered so that they might acquire a legal
and corporate status. As soon as a trade union is registered, it is treated as an artificial person
in the eyes of the law, capable of enjoying rights and discharging liabilities like a natural
person. In certain respects, the act attempts to define the law relating to registered trade
unions. The Act, apart from the necessary provisions for administration and penalties, makes
provisions for:a. Conditions governing the registration of trade unions.
b. The obligations of a registered trade union; and
c. The rights and liabilities of registered trade unions.
Applicability of the Act:The Act extends to the whole of India. The words "except the state of Jamrnu and Kashmir'
have been omitted by the amended Act of 1970 with effect from 1 st September 1971.The Act
applies not only to the unions of workers but also to the associations of employers.
The Act is a central legislation, but it is administered and enforced mostly by state
governments. For the purpose of this act, the Central government handles the cases of only
those unions whose activities are not confined to one state. All other unions are the concern
of state governments. The registrars of trade unions are appointed both by the central and
state governments. They can also appoint additional or Deputy Registrars who may exercise
the powers and functions of the Registrars, as they think fit so as to obviate delays in the
disposal of applications for the registration of trade unions.
General Scheme of the Act:The Act is divided into 33 sections and contains 5 chapters.
Chapter I deal with the title, scope and commencement of the Act, together with important
definitions (Section 1 and 2).
Chapter II discusses the various aspects of registration of trade unions, viz., appointment of
Registrars (sec.3) mode of registration. (Sec.4) submission of application for registration
(Sec.5); provisions to be contained in the rules of a trade union (sec.6) power to call for
4 lst June, 1927, see Gazette of India, 1927 p.467.
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further particulars and alteration of name (sec.7) registration (sec.8); issue of certificate of
registration (sec.9); cancellation of registration (sec. 10); making of appeals (sec. l 1);
location of registered offices of the trade unions (sec.12); incorporation of registered trade
unions (sec. 13); and the non-applicability of certain acts to registered trade unions (sec. 14).
Chapter III describes the rights and liabilities of registered trade unions, i.e., it deals with the
objectives for which general funds may be spent (sec. 15); the constitution of a separate fund
for political purposes (sec.16); criminal conspiracy in trade disputes-immunity (sec. 17);
immunity against civil suit (sec. 18), enforceability of agreements (sec. 19); right of
inspecting books of trade unions (sec.20); rights of minors to membership of trade unions
(sec. 21); disqualification of office-bearers of trade unions (sec.21 .A); proportion of officers
to be connected with the industry (sec.22); change of name of trade union (sec.23);
amalgamation to trade unions (sec. 24); notice of change of name or amalgamation of trade
unions (sec.25); effects of change of name and amalgamation (sec.26); dissolution of trade
unions (sec. 27); and filing returns by trade unions (sec.28).
Chapter IV deals with powers to make regulations (sec.29); and publication of regulations
(Sec.30).
Chapter V deals with the consequence of failure to submit returns (Sec.31); Supplying false
information regarding trade unions (Sec.32); and cognizance of offences (Sec.33).
Provisions of the Act:The main provisions of the act relate to
1.
2.
3.
4.
5.
6.
7.
8.
9.

Definition
Registration of trade unions
Duties and liabilities of a registered trade unions
Rights and privileges of registered trade unions.
Amalgamation and dissolution of trade unions.
Submission of returns
Penalties and fines.
Power to make regulations.
Definitions under the Act.

The term executive refers to anybody, by whatever name called, to which the management of
the affairs of a trade union is entrusted, ie., a body should be responsible for managing the
affairs of a trade union. Office bearer means and includes "any member of the executive of a
trade union". No one can be appointed an office bearer unless he has attained the age of 18
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years, and has not been convicted by the court for any offence involving moral turpitude, or
sentenced to imprisonment ( unless a period of 5 years has elapsed since his release ). Not
less than 75% of the total number of office bearers of every registered trade union shall be
persons actually engaged or employed in an industry with which the trade union is concerned.
Registered office means that office of a trade union which is registered as the Head Office
under the Act".5
Registrar of Trade unions means "a Registrar appointed by the appropriate Government for
each state. The registrar also includes an additional or Deputy Registrar of Trade Unions".
Trade Dispute means " any dispute (i) between employers and workmen; or (ii) between
workmen and workmen, or (iii) between employers and employers which is connected with
the employment or non- employment, or the terms of employment, or the condition of labour
of any person".6
Trade union means "combination, whether temporary or permanent, formed (i) primarily for
the purpose of regulating the relation between (a) workmen and employers, or (b) between
workmen and workmen, or (c) between employers and employers, or (ii) for imposing
restrictive conditions and the conduct of any trade or business, and includes any federation of
two or more trade unions.
The Trade Unions Act Does Not Affect
1. Any agreement between partners as to their own business
2. Any agreement between an employer and those employed by him as to such
employment; or
3. Any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft.
A trade union is not only a combination of workmen but also of employers; and the Act
applies not only to the union of workers but also the association of employers.7
Registration of Trade Unions

5 Karnik - Indian Trade [Unions : A Stirvey, P. C. Manekalal & Sons, Bombay, 1998,p.48.
6 Dr. P.N. Chopra, Indian Struggle for Freedom, Vol. 3, Ashish Publishing House, New
Delhi, 1985, p.285

7 S.K Chatterjee, Personnel Management and Indrrstrial Relalions, Surjeet Publication

Delhi,1993, p.98

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Any seven or more members of a Trade union may, by subscribing their names to the rules of
the trade union and by otherwise complying with the provisions of this Act with respect to
registration, apply for registration of the trade union under this Act.
Application for registration
Every application for registration of a Trade union shall be made to the Registrar, and shall be
accompanied by copy of the rules of the trade union and a statement of the following
particulars namely;
a. the names, occupations and addresses of the members making the application;
b. the name of the trade union and the address of its Head Office and
c. the titles, names, ages, addresses and occupations of the office bearers of the trade
union.
The Industrial employment (Standing orders) Act 1946
The Indian Trade Unions Act, 1926 is intended mainly to provide a base for orderly labourmanagement relations. The industrial employment (standing orders) Act, 1946, also forms
part of the same base. Its principal function is to settle and clarify from the beginning many
of those terms of employment over which disputes normally arose. It also protects workers
from arbitrary actions by employers.8
The Industrial Dispute Act 1947
In spite of the above mentioned facts disputes arise in factories. It is the function of the
industrial disputes act to settle them.
The industrial disputes act is an endeavour on the part of the state to regulate industrial
relations. The registration IS designed to ensure industrial peace by having recourse to a
given form of a procedure and machinery for investigation and settlement of industrial
disputes.9
The Act is mainly concerned with settlement of disputes. However, there is certain provision
aimed at the prevention of disputes. It provides for the establishment of works committee,
whose function is to provide a vehicle for the peaceful working out of labour-management
problems, before they reach the status of industrial disputes. There are restrictions on strikes
and lockouts in public utilities. It also restricts employers in laying off its employees and
declaring lock-outs. All these provisions aimed at prevention of disputes. If disputes still
8 V. D. Kennedy, Unions, Employers and Government, Manaktals, Bombay, 1966, p.88
9 S. K. Chatterjee, Personnel Management and Industrial Relations, Surjeet Publications,
Delhi , p. 1 10

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occur, the Act makes provision for settlement either by conciliation, voluntary arbitration, or
compulsory adjudication by a labour court or tribunal.
Industrial Relations Machinery
The present machinery for the settlement of industrial disputes comprises; (1) conciliation
(11) arbitration and (111) adjudication machinery. An attempt is made here in to review the
working of the present industrial relations machinery and to see what success of has achieved
its limitations and defects.
Conciliation:The aim of conciliation is to bring about a settlement in disputes through third party
intervention. According to the Madhya Pradesh Industrial Relations Act, 1960, the procedure
followed by the conciliation machinery is as follows: a party desiring to effect change in the
conditions of work gives a notice of change to the other party. The parties- may arrive at an
agreement by negotiations with a stipulated time. When no agreement is arrived at, the
dispute shall be referred to conciliation except in cases where arbitration has been agreed
upon by both the parties. Conciliation proceedings are deemed to have been completed when
settlement is signed after the completion of conciliation proceedings, the desired change can
be affected or enforced by direct action.10
The attitude of the parties to conciliation is extremely important for the success or failure of
the conciliators. Besides, conciliation is often looked upon by the parties as merely a hurdle
to be crossed for reaching the next stage of arbitration.11
Voluntary Arbitration:Another system of settlement of disputes is voluntary arbitration. But apart from the statutory
arrangement for recourse to voluntary arbitration, considerable emphasis is placed on this
mode of settling disputes in official pronouncement. In order to make voluntary arbitration
more effective the government established the National Arbitration Promotion Board with a
tripartite composition - representatives of government, employer and workmen. All these
effects with standing voluntary arbitration has had little success so far. Factors which have
contributed to the slow progress of voluntary arbitration, as mentioned by trade union
leaders/executives or labour officers are:
1. Easy availability of adjudication, in case of failure of negotiations
2. Dearth of suitable arbitrators who can command the confidence of both the parties
10 Radhakrishna Mukerjee, Indian Working Class, Asia Public House, Bombay,
11 . K. G. J.C. Knowels, Strikes, Oxford Basil Blackwell Edition, 1952, p.74
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3. The fact that an appeal against an arbitration award was not possible under the law.
4. Mutual distrust of parties about their intentions.
Adjudication
The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudication by the appropriate government.
Role of government
The intervention of the government in laying down a statutory provision for the settlement of
industrial disputes was the prevention and settlement of disputes. Right from the start of trade
unionism government has been the mediator or arbitrator in all the disputes. Not even a single
major issue has been settled without the intervention of the government.12
The central government had taken power under rule 81(A) of the Defence of India Rules to
issue general or special order to prohibit strikes or lock-outs and for requiring employers and
workers to observe certain terms and conditions of employment. Government had also power
to refer any trade dispute to conciliation or adjudication and to enforce the award of
adjudication. Strikes were made illegal during adjudication or conciliation proceedings and
also during the period for which award was made binding. Government exercised these
powers freely and many trade disputes were referred to adjudication and awards were
enforced.
The government's role on mediation and adjudication has become complicated because of the
induction of political parties and their leaders at the top of the government machinery.13
Objectives of Trade Unions
The objectives of the trade unions generally are:
1. They strive for achieving higher wages and better conditions for the members.
2. They not only minimize the helplessness of the individual workers by making them
stand collectively and increasing their resistance power through collective bargaining
but also protect their member against victimization or injustice of the employers.
3. They provide the worker self confidence and a feeling that they are not simply a log in
the machine.
4. They imbibe a spirit of sincerity and discipline in the workers.
5. They also take up welfare measures for improving the morale of the workers.
12 Crouch Harold, Trade Unions and Politics in India, Manaktals, Bombay 1966, p. 10
13 'National Commission on Labour' Government of India, Edited 1963, p.287
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6. They demand an increasing share for workers in the management of industrial
enterprises. They help in raising the status of workers as partners of Industry and as
citizens of the society.
Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labour
practices. Trade unions are formed to achieve the following objectives:
Representation
Trade unions represent individual workers when they have a problem at work. If an employee
feels he is being treated unfairly, he can ask the union representative to help sorting out the
difficulty with the manager or employer. Unions also offer their members legal
representation. Normally this is to help people get financial compensation for work-related
injuries or to assist people who have to take their employer to court.
Negotiation
Negotiation is where union representatives, discuss with management, the issues which affect
people working in an organization. There may be a difference of opinion between
management and union members. Trade unions negotiate with the employers to find out a
solution to these differences. Pay, working hours, holidays and changes to working practices
are the sorts of issues that are negotiated. In many workplaces there is a formal agreement
between the union and the company which states that the union has the right to negotiate with
the employer. In these organizations, unions are said to be recognized for collective
bargaining purposes.

Collective Bargain:Collective bargaining is a method where negotiation and compromise are resulted in
agreements, joint determination and regulation. In other words, the nature of collective
bargaining is a process where the interaction talks place between employers and labour
collective where liberal collectivist are favoured. Within Human Resource system a process
through which an employee and their representative persuade and take part in decision
making and collective bargaining is one the most frequently used mechanism.14

14 . 'Third Five Year Plan', Government of India Planning Commission

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The purpose of determining terms and conditions of employment and or regulating relations
between them for workers organisation and employers or employers organisation are all
negotiated and this is defined by the International Labour Office Convictions. The
relationship between the parties to terms and conditions of employment and regulations are
limited to subject matter by International Labour Office Convention. Collective bargaining is
the dominant employee participation process which is arguable.15
There are two types of rules where collective bargaining which tends to reach an agreement.
First is substantive rule, here the terms and conditions are determined for employment, for
example the pay scale or the annual holidays or the basic working hours in a week. This rule
also includes which work to give according to grade of staff and called as Demarcation rule.
Second is Procedural rule, here the method and procedures are determined, for example an
example an issue discussion at particular in national level or company level. Normal
negotiation cannot resolve any disagreements or disputes and to refer disputes at plant level
to regional or national level arrangements possibly is there and this rule determines the
arbitration arrangements for example probably a rule that disputes should refer to ACAS ( the
Advisory Conciliation and Arbitration services).
Over the past years, the evolution of collective bargaining was in different stages. Collective
bargaining was established for skilled labour at the local level. The joint negotiations were
encouraged at the industry level due to the influence of corporate system and this lead to the
establishment of collective bargaining. John Goodman (1984) has defined collective
bargaining as a Process through which representatives of employers and of employee
organizations act as the joint creators of the substantive and procedural rules regulating
employment. In addition they frequently accept the main responsibility for interpreting,
applying and enforcing the rules16
There are various types of functions in collective bargaining. First, market or economic
function. In this function the price of the labour are decided by the employer and the
employee will work as per the terms and conditions. Second decision-making function. In
this function the collective bargaining allow the employees the opportunity to participate in
taking decision about the policies of the organization. Third, governmental function. In this
15 'Second Five Year Plan' Govemment of India, Planning Commission, Edition 1956,
p575

16 'First Five Year Plan' Government of India, Planning Commission, Edited 1950-5 l , p58
1

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function the collective bargaining establishes the rule that governs the employment
relationship. It is also called as the political process. It is like a constitution where both the
parties have the power to veto to control the actions of each other.
The agreement is made between the employer and the employee with the two types of the
rules. Those are substantive rules and procedural rules. Substantive rules are the rule that
regulates the terms and conditions of employment. Procedural rules are rules under which the
negotiation over the terms and conditions are made. These rules help in improving and
maintaining the employment relationship between the employer and the employee. There are
also some strategies like avoiding problems, using kind words, compromising used for
maintaining the employment relationship.
Ref: John Leopold, 2002, Human Resources in Organizations, Financial Times/ Prentice
Hall, England.
There are two approaches of collective bargaining which plays an important role in
maintaining the employment relationship. First approach, distributive bargaining. In this type
one party enjoys the benefit, profits, and gains with the expenses of the other party. Here the
opposite parties can use the power to achieve their tasks. So, it becomes a problem when one
side refuses to accept the compromise or the benefits given to them. The second approach,
integrative bargaining. It seeks in mutual gains in areas of the common interest with the
problem solving approach. For the success of integrative bargaining both the parties should
share the information between each other and they should trust each other. So, compromise
and problem solving plays an important role in maintaining employment relationship.17
Collective bargaining is useful in many ways in the organization. It helps in the downward
communication where the communication takes place from the managers to employees. It
takes place in formal written reports such as employee reports, house journals etc. It helps in
the upward problem solving where the greater opportunities are given to the employee to
contribute to the discussions relating to their work. It also helps in task participation and team
working where the employees are expected to extend their tasks at their work. It also helps in
financial involvement where the success of the enterprise is linked to the individual rewards.
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17 M. K. Gandhi, Economic and industrial Life and Relation, Vol.1, Navajeevan

Publications, Ahmedabad, 1957, p.90.

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There are also some strategies used in the collective bargaining and they are by ignoring the
conflict, many problems can be avoided. By using kind and soft words, the problem or the
conflict can be smoothened. By compromising also many problems can be solved. So, these
are some of the ways through which the employment relationship can be controlled through
collective bargaining.18
The controlling of the employment relation can be done by introducing the new rules in the
enterprise such as like giving standard rate of pay for the employees who will benefit them.
Employment relationship can also be controlled by modifying the goals such as to avoid the
conflict between the employer and the employee.
The person on behalf of the management and a person on behalf of the trade union conduct
the meeting at different level to negotiate the problem. Those levels are national or industry
wide level and company level or local level. The negotiations which are conducted at national
level are known as centralized bargaining and the negotiations which are conducted at the
company level are known as decentralized bargaining. Centralized bargaining is found in
most of the large public sector companies and multi site private companies, with the help of
this approach the company lay down nationally applicable rule of conduct for the employee
relations and also payment conditions. Decentralized bargaining helps in improving the local
requirements, demands and terms and conditions.19
Collective bargaining plays an important role in solving the conflicts or the problem that is
arising. Collective bargaining has got the power to bring the change in the enterprise
independently even though both the parties have power to influence each other. Collective
bargaining brings about the trust in the relationship with each other. It also helps in following
the rules and regulations. Conflicts arising can also be solved by following these rules.
Collective bargaining plays a very important role in managing the employer-employee
relationship. It helps in forming the trade unions and also in involving the negotiation process
incase of any disputes.
There has been a recent developments in collective bargaining and they are single union deals
and single table bargaining. Single union deal is like an agreement where the management
18 Report of the Royal Commission on Labour in India (1929 Sept 3 1 ) p.322,
Govemment of India, Branch Calcutta.

19 Harrjan, September 7, 1947, pp.309-311, July 3, 1937, p.161, March 31, 1935, pp.2023

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allows only one trade union to represent the employees. Single union agreements may also
have other agreements and those agreements are pendulum arbitration, no strike agreements
and flexibility agreements. Pendulum arbitration is also called as final offer arbitration. It is a
method where the third party involves when there is an disagreement between two parties and
this bargaining is done in good faith to settle the conflicts between each other. Single table
bargaining also gives similar benefits to the employer as single union deals while marinating
a multi-union site. Here the negotiation process takes place between the unions. Flexible
agreements are agreements that are done to modify the traditional working practices and also
the flexibility in the function that are to be carried out in the working place.20
There are lot of benefit from collective bargaining, there are many reasons for the decline of
collective bargaining in recent days. It is because the power and the control of the trade union
are in the hands of governments and also because of Act of employment legislation to control
the power of trade unions. It is also because the focus is now a day shown on each individual
at the work. It is also because of the growth of new managerial statistics. It is mainly because
of the failure of the trade unions to develop effective strategies in developing the employer
employee relationship. It is also because some privatised companies do not adopt collective
bargaining and thus it is completely abandoned in major companies. It is because of these
reasons the collective bargaining has fallen down to a greater extent in past years. But,
Human resource management plays an important role in encouraging flexible working
arrangements and in development of the human resource and in paying to the employee for
their performance.21
Reasons for Workers to join Trade Union:Workers join unions because they are constrained by circumstances to do so, and because
they want.
1. To get economic security through steady employment and adequate income.
2. To restrain the management from taking any action which is irrational, illogical.
discriminatory or prejudicial to the interests of labour. Workers desire that the
assignment of jobs, transfers, promotions, maintenance of discipline, lay off,
20 'First Five Year Plan', Government of India, Planning Commission, Edited 1950-51,
pp.572-573
21 Harijan, September 7, 1947, pp.309-3 1 1, July 3, 1937, p. 161, March 3 1, 1935,
pp.20-23

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retirement, rewards and punishment should be on the basis of a pre-determined policy
and on the basis of what is fair and just.
3. For better communication of their news, aims, ideas, feelings and frustrations to the
management and to have an effective voice in discussion about their welfare.
4. To secure protection from economic hazards beyond their control for example, illness,
accident, death, disability, unemployment and old age.
5. To get along with their fellow workers in a better way and to gain respect in the eyes
of their peers.
6. To get a job through the good offices of a trade union.
Function of Union:The functions of unions include intramural, extramural and political. Intramural functions are
those activities which are at the betterment of needs of workers in relation to their
employment such as ensuring adequate wages, securing better conditions of work, rest
interval, continuity of employment etc. Extramural activities are those which perform to help
the workers in times of need and improve their efficiency. They also include welfare
measures and conduct recreational functions for the workers.22
The history of trade unionism in the country records profound effects of political leaders. The
route of action, the concentration of work moves from workers to a more universal areapolitics. In India most of the unions are politically affiliated or have strong support of leading
political parties of the country. Thus the trade unions use their franchise to capture the
government which indirectly results in acquiring stronger hold of power through political
influence for their trade union.
Essentials of a Successful Trade Union
1. Should have a social foundation, so that it may be strong enough to achieve success in
the realisation of its objectives.
2. Should have clearly enumerated objectives and a coherent and well conceived policy,
and it should consider itself a business organisation which requires careful planning
and sound organisational methods for its success.
3. Should be an enlightened one, so that it may be able to guide and direct the Trade
Union movement properly. This presupposes the existence of correct and effective
22 Harijan, September 7, 1947, pp.309-31
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leadership which should come from the rank and file of its members and subject to
their support or rejection. The union should be run "by the members for the
members".
4. Should have honesty and integrity of purposes not only in financial matters but to its
relationship with employer, to the formulation of its polices and evaluation of its
performances.
5. Should have a sense of responsibility:a. to be internally strong that it may be effective in protecting the interests of
workers.
b. to use its economic power in a careful and responsible way.
c. to be democratic so that the worker's right to self government becomes a reality.
Advantages and Disadvantages of Trade Unions
A strong trade union gives a guarantee of industrial peace and brings stability in the industry.
Trade unions bring about improvement in the conditions of work, employment and wages of
workers and lead to greater efficiency among labourers.
They also inculcate a feeling of self respect and confidence among the workers.
But in spite of the above advantages the trade union activities have been criticised on the
ground that they create misunderstandings between the workers and employer and disturb
industrial peace and bring instability in the industry. They generally adopt a hostile attitude
towards rationalisation or improved methods of production and retard technical progress.
Sometimes intoxicated with their strength or misled by others they launch strikes on flimsy
grounds.23
However, it should be noted this sort of criticism is due to the defective or improper policies
and working of the trade unions rather than the basic objectives of trade unionism itself It is
now a generally agreed fact that trade unionism is beneficial not only to the working class but
also to the Industry and, the economy as a whole. Thus, trade unions have to play an
increasingly important role in the economic development of the country and they must be
prepared to undulate the role.24
Patterns and Structure of Unions in India
23 lbid
24 lbid
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There is no statutory provision which has outlined a definite structure and laid down a
specific basis for the formation of trade unions in India. There are different varieties of
structure. The reason for this can be understood, from the views of the National Commissions
of Labour. It says "The basis on which a trade union should be organised is a matter to be
determined by workers themselves, in the light of their own needs and experiences. They
have to grow according to the dictates of their members, but within the constraints set on
them by the law of land.25
Types of trade union:Since the growths of unions are spontaneous and automatic there is no definite classification
that is followed all over the country. However for clear gaps of differentiation the unions
have been classified into the following categories.
a. Primary unions
b. Industrial Production.
c. The National Centres.
Primary unions are further divided as
a. Industrial Union
b. General Union
c. Craft Union
Factors Affecting the Growth of Trade Unions
Here an attempt is made to analyse and point out the factors which are responsible for the
rapid increase, relative stability and fast decline that is seen at frequent intervals in the story
of the growth of trade unionism. They can be called the determinants of the rate of growth of
trade unionism.
Commitment of labour force is the first determinant. Here the worker is permanent in his job
and Industry and hence more committed. In this case the rate of growth is rapid. The
composition of labour force also affects the rate of growth of Trade Union movement in a
country. For example if women and children constitute a significant proportion in the labour
force, rate of trade union movement would be slow since it is different to organise women
and children. History reveals that the number of membership of Trade Unions increases
during cyclical upswings in business activity and fall during the downward swing. It is
known that during periods of war also, when economic activities expand, employment

25 lbid
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increases and cost of living rises while wages lag behind, there is a relatively greater swing
towards unionisation.26
The political climate and the legal framework of the country also has a decisive influence
over the pattern and the rate of union growth.
The structure of Trade Union organisation also affects the growth of trade unions As long as
the craft unions exists, the pace of union growth cannot be accelerated as they show little
interest in the union activities. The structure of Trade Union movement has to adapt itself to
the changing needs of the labour force, otherwise it would become archaic and tamper the
growth and pace.27
It has become customary these days to make collective agreements with the employer for
union security provision such as the closed shop, union shop, agency shop, and maintenance
of membership shop etc. These provisions make union membership more or less compulsory
on workmen; the workers become union members automatically without any additional
efforts on the part of their unions. Hence union security provisions are considered as the
institutional interest of the unions.28
Since its very inception, trade unionism has faced stiff opposition from the employers. This
opposition and hostility took many turns; non-recognition of unions, bribing the trade union
officials, establishing rival unions and organisations, victimisation of union members and
workers. However the attitude of employers in India has apparently changed since
independence, at least they have learned to put up with the unions. They are not openly
antagonistic or hostile. However the question of recognition still longs in the air. Since there
are multiple of unions in an establishment, inter-union and intra-union
rivalries, the unions are not strong and the employers know that fact.
Statutory Necessities of Trade Union
An active union has essentially to fulfil the following criteria.
1. It has to have an office.
2. Paid or unpaid, part-time staff or full-time staff.
26 lbid
27 lbid
28 Harijan, July 3, 1937, p.161, July 29, 1983, p.216
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3. Systematic system of record keeping related to the strength and activities of members.
4. It has to carry out its business which ought to include.
a) Raising major demands of its members during the course of its functioning.
b) Contesting in elections for the workers councils.
c) Handling grievances of its members and working into their welfare needs in and outside
their work-place.

Amalgamation of Trade Union:23. Change of name. Any registered Trade Union may, with the consent of not less than
two thirds of the total number of its members and subject to the provisions of section 25,
change its name. 29
24. Amalgamation of Trade Unions.Any two or more registered Trade Unions may become
amalgamated together as one Trade Union with or without dissolution or division of the funds
of such Trade Unions or either or any of them, provided that the votes of at least one-half of
the members of each or every such Trade Union entitled to vote are recorded, and that at least
sixty per cent of the votes recorded are in favour of the proposal.
Merger of Trade Union ; On merger the Trade Union and its office-bearers do not lose their
identity Kumar Dey v. Union of India, (1991) 63 FLR 463 (Gau).
25. Notice of change of name or amalgamation.(1) Notice in writing of every change of
name and of every amalgamation signed, in the case of a change of name, by the Secretary
and by seven members of the Trade Union changing its name, and in the case of an
amalgamation, by the Secretary and by seven members of each and every Trade Union which
is a party thereto, shall be sent to the Registrar and where the head office of the amalgamated
Trade Union is situated in a different State, to the Registrar of such State.
(2) If the proposed name is identical with that by which any other existing Trade Union has
been registered or, in the opinion of the Registrar, so nearly resembles such name as to be
likely to deceive the public or the members of either Trade Union, the Registrar shall refuse
to register the change of name.
(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the
provisions of this Act in respect of change of name have been complied with, register the
29 Harijan, July 21, 1946, p.229
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change of name in the register referred to in section 8, and the change of name shall have
effect from the date of such registration.
(4) The Registrar of the State in which the head office of the amalgamated Trade Union is
situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have
been complied with and that the Trade Union formed thereby is entitled to registration under
section 6, register the Trade Union in the manner provided in section 8, and the amalgamation
shall have effect from the date of such registration.
26. Effects of change of name and of amalgamation.(1) The change M the name of a
registered Trade Union shall not affect any rights or obligations of the Trade Union or render
defective any legal proceeding by or against the Trade Union, and any legal proceeding
which might have been continued or commenced by or against it by its former name may be
continued or commenced by or against it by its new name.
(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of
any of such Trade Unions or any right of a creditor of any of them.
27. Dissolution.(1) When a registered Trade Union is dissolved, notice of the dissolution
signed by seven members and by the Secretary of the Trade Union shall, within fourteen days
of the dissolution be sent to the Registrar, and shall be registered by him if he is satisfied that
the dissolution has been effected in accordance with the rules of the Trade Union, and the
dissolution shall have effect from the date of such registration.
(2) Where the dissolution of a registered Trade Union has been registered and the rules of the
Trade Union do not provide for the distribution of funds of the Trade Union on dissolution,
the Registrar shall divide the funds amongst the members in such manner as may be
prescribed.

Case Study:Jute Mill Mazdoor Sangh v. The Registrar of Trade Union and others.30
Honble Judge:- S.B.Sinha v. S.Hoda,J.J.
Labour and Industrial - Amalgamation of Jute Mills - Review of Decision - Petition filed for
quashing of Order rejecting Petitioner's application for review of decision of Registrar
relating to amalgamation of Jute Mills - Held, it appeared that matter was enquired into by
Registrar Trade Union by Labour Superintendent - It further appeared that both parties were
30 Case No. 5574 of 1991
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given opportunity of hearing and all documents produced by them had also been taken into
consideration - In terms of provisions of by laws of Trade Unions normally election had to be
held every year - It was assertion of Respondent that General Secretary was removed in year
1981 itself - Said General Secretary could file a suit in civil Court questioning his expulsion
as also validity of meeting if any - He had not chosen to done so - It appeared that Registrar
Trade Union had taken into consideration all aspects of matter held that in facts and
circumstances of case, it was not necessary to review Order passed by his predecessor in
office - Decision of Registrar Trade Union was communicated to Petitioner but same was not
Order itself - It was well known that when statutory functionary performs statutory function,
same could be subject matter of scrutiny by writ Court in exercise of its writ jurisdiction only
if same was mala fide - Neither any such point had been raised in Petition nor Petitioner had
been able to point out any infirmity in Order - Petition dismissed.

Conclusion:A trade union is an independent self-regulating organization of workers created to protect and
advance the interests of its members through collective action. Over recent years, it has
become fashionable in many quarters to write off Britains trade unions, to label them as
obsolete institutions out of touch with new realities and incapable of change. In todays world
of individual employment contracts, performance-related pay schemes, Human Resource and
Total Quality Management and all the other ingredients of the so-called new workplace,
trade unions are often regarded as anachronistic obstacles preventing success of the market
economy. As collective voluntary organizations that represent employees in the workplace, it
is argued; trade unions no longer serve a useful purpose. The main priority of this research is
to represent the arguments for the relevance of trade unions in todays working society. Trade
unions exist because an individual worker has very little power to influence decisions that are
made about his or her job. The greatest advantage in joining a trade union is because, by
doing so, individuals possess more chance of having a voice and influence in their place of
work. By joining forces with other workers, an individuals opinions and beliefs regarding
their job will also be voiced by other union members, thus creating a stronger stance against
management, if needed. Therefore, the main purpose of a trade union is to protect and
improve people's pay and conditions of employment. This objective is usually achieved
through negotiation and representation.

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Further, the amalgamation of trade union is described under section 24-26 of Trade Union
Act, 1926 and according to researcher it is beneficial for trade union in respect of general as
well a s political scenario.

BIBLIOGRAPHY
STATUTE:

Labour and Industrial Laws

The Trade Union Act, 1926

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Amalgamation of Trade Union

P.K.Padhi, Labour and Industrial Laws, 2nd Edition, 2012, Eastern Economy Edition.
S.N.Mishra, Labour and Industrial Laws, 27th Edition, 2013, Central Law

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

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