A trade union is an association of workers formed with the object of improving the conditions of

workers. It is formed for protecting the interests of workers. Workers have little bargaining
capacity when they are unorganized. In fact, trade union movement began against the
exploitation of workers by certain managements under the capitalist system.

Indian Trade Union Act 1926:

“Any combination whether temporary or permanent formed primarily for the purpose of
regulating the relations between the workmen and employers”.

Objectives of Trade Union:

(1) To improve the economic lot of workers by securing them better wages.
(2) To secure for workers better working conditions.

(3) To secure bonus for the workers from the profits of the enterprise/organization.

(4) To ensure stable employment for workers and resist the schemes of management which
reduce employment opportunities.

(5) To provide legal assistance to workers in connection with disputes regarding work and
payment of wages.

(6) To protect the jobs of labour against retrenchment and layoff etc.

(7) To ensure that workers get as per rules provident fund, pension and other benefits.

(8) To secure for the workers better safety and health welfare schemes.

(9) To secure workers participation in management.

(10) To inculcate discipline, self-respect and dignity among workers.

(11) To ensure opportunities for promotion and training.

(12) To secure organizational efficiency and high productivity.

(13) To generate a committed industrial work force for improving productivity of the system
Functions of Trade Unions:
(1) Collective bargaining with the management for securing better work environment for the
workers/ employees.

(2) Providing security to the workers and keeping check over the hiring and firing of workers.

(3) Helping the management in redressal of grievances of workers at appropriate level.

(4) If any dispute/matter remains unsettled referring the matter for arbitration.

(5) To negotiate with management certain matters like hours of work, fringe benefits, wages and
medical facilities and other welfare schemes.

(6) To develop cooperation with employers.

(7) To arouse public opinion in favour of labour/workers.

Types:
i. Craft unions:
These represent workers with particular skills e.g. plumbers and weavers. These workers may be
employed in a number of industries.

ii. General unions:

These unions include workers with a range of skills and from a range of industries.

iii. Industrial unions:

These seek to represent all the workers in a particular industry, for instance, those in the rail
industry.

iv. White collar unions:

These unions represent particular professions, including pilots and teachers. Unions in a country,
often belong to a national union organisation. For example, in India, a number of unions belong
to the All India Trade Union Congress (AITUC).

This is the oldest and one of the largest trade union federations in the country. A number of them
also belong to international trade union organisations such as the International Confederation of
Free Trade Unions, which has more than 230 affiliated organisations in 150 countries.
Appointment of Registrar:
Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a

person to be registrar of Trade Unions. The appropriate Government be it State or Central, as the

case may be is also empowered to appoint additional and Deputy Registrars as it thinks fit for the

purpose of exercising and discharging the powers and duties of the Registrar. However, such

person will work under the superintendence and direction of the Registrar. He may exercise such
powers and functions of Registrar with local limit as may be specified for this purpose.

Registration

According to section 8 of the Act, if the registrar thinks that the trade union has complied with
all the provisions of the Act, it shall register the Trade Union by entering in a register all the
particulars in accordance with the provisions of the Act.

Certificate of registration

According to section 9 of the Act, the registrar shall issue a certificate of registration to the trade
union after registration under section 8 which shall be conclusive proof that a trade union has
been duly registered.

Cancellation of registration

According to section 10 of the Act, a certificate of registration of a trade union may be cancelled
or withdrawn or an application of the trade union to be verified in such manner as may be
prescribed; where the registrar is satisfied that the certificate has been obtained by fraud or
mistake or the trade union has ceased to exist or has willfully and other notice from the registrar
contravened any provisions of the Act and if the registrar is satisfied that a registered trade union
ceases to have requisite number of members.
Rights and Privileges of a registered Trade Union

Under section 15 a registered trade union has a right to establish a general fund.

Under section 16, a registered trade union has a right to establish a political fund. Subscription to
this fund is not necessary for a member.

Under section 17, 18, and 19 a registered trade union gets immunity in certain criminal, civil, and
contractual proceedings.

Liabilities of a registered Trade Union

1. A Trade Union cannot spend the funds on anything the office bearers want. It can spend funds
only on the activities specified in Section 15. These include:

 salaries of the office bearers.

 expenses required for the administration of the trade union
 compensation to workers due to loss arise of any trade dispute.
 welfare activities of the workers including housing, clothing, or any such activity.
 benefits to the workers or their dependents in the case of unemployment, disability, or
death. – publishing material for creating awareness in the workers.
 legal expenses required for defending or bringing a suit.
 education of workers or their dependents.
 expenses for medical treatment of workers. – taking insurance policies for workers.
2. A trade union cannot force members to subscribe to political fund under section 16.
3. Under section 20 a trade union must make available all its record books of accounts and list of
membership for inspection upon request of any member or his representative.
4. Section 21 allows minors more than 15 yrs of age to be members of a trade union. However,
such minors cannot hold office.
5. Under section 21-A, a trade union cannot appoint a person who has been convicted of a crime
involving moral turpitude and has been imprisoned for 6 months or more within last 5 years.
6. As per section 22, at least half of the office bearers of a trade union must be engaged or
employed in an industry to which the trade union is connected. Also, while a union has a right to
remove any office bearer, this power must be used judiciously and rules of natural justice must
be followed.
7. Under section 28, a general statement, audited in a prescribed manner, of all income and
expenses must be sent to the registrar every year.
Trade union duties

To aid and improve effective employment relations, trade union representatives shall be allowed
to take reasonable time for duties concerned with:-
 terms and conditions of employment, or the working conditions of staff
 engagement or non-engagement, or termination or suspension of employment, of one or
more members of staff
 allocation of work/workload
 matters of discipline
 trade union membership
 facilities for trade union duties
 machinery for negotiation and consultation and other procedures
 special projects e.g. Framework Agreement
 involvement in HERA Role Analysis process
 personal case work
 any other matters associated with the legitimate interests of the trade union concerned
and its members.