THE INDIAN TRADE UNIONS ACT, 1926

INTRODUCTION

Trade union is an outcome of the factory system. It is based on labour

philosophy-“united we stand, divided we fall.” Industrial revolution in India has changed the
traditional outlook in the labour management relationship. With the introduction of the
modern factory system, personal relationship between employer and employee disappeared
and has given rise to many social and economic evils which made it imperative on the part of
the workers to devise an effective means to contact employers and to bargain with them.
Formation of trade unions has provided an ideal solution.

Definitions

Appropriate Government: For the trade unions whose objects are not confined to one
state, the appropriate government will be the Central Government, for others it’ll be the State
Government.

Trade dispute: It 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 conditions of labour, of any person.

Workmen:- Means all persons employed in trade or industry whether or not in the
employment of the employer with whom the trade dispute arises the dimensions of this
definition determine the permissible area of trade union activities. An analysis of the above
definition reveals that a trade union:-
1:-must be a combination
2:-such as a combination should be either temporary or permanent, and
3:-should include any federation of two or more trade unions.

Objectives

1:- To regulate the relations

a-between workmen and employers,
b-among workmen or
c-among employers
2:- To impose restrictive conditions on the conduct of any trade or business
But it shall not affect
a-an agreement between parties as to their own business,
b-agreement as to employment,
c-agreement in consideration of sale of the goodwill of a business or of
instruction in any profession, trade or handicraft

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 DEVELOPMENT OF TRADE UNIONISM

Background

Freedom of association has been the corner stone of society. This freedom finds its
expression in a democratic form of government1. Trade unionism has been a movement
launched against the concentration of economic power in the hands of a few individuals of
society and for the purpose of promoting the welfare of working class. Trade union
movement is not confined to the premises of one nation or country but it has widened to the
international field as well. It may be desirable to mention that besides trade unions in specific
countries, there is one international organisation of working class known as International
Labour Organisation (ILO) for promoting labour welfare.

History of Trade Union Movement in India

The first cotton mill in India was established in 1951 in Bombay and the first jute mill
in 1855 in Bengal. This was the beginning of the modern factory system in India. After 1851
and 1855, the number of factories began to increase both in Bombay and Bengal. Prof. S. N.
Dhyani has observed that the year 1875 is landmark in the history of trade union movement.
For the first time, in India Factory workers united together for securing better working
conditions in the Factories.

Factories Act, 1881

The growing consciousness of a common cause for amelioration brought the working
class closer despite several hindrances. The secretary of state for India was kept informed of
all these evils of the modern factory system and the first Factory Commission was appointed
in Bombay in the year 1875 and the first Factories Act was passed in 1881. The 1881 Act
proved highly inadequate and its provisions regarding protection to child labour and absence
of any regulation for women labour were highly disappointing. Consequently, another
Factory omission was appointed in 1884. Mr. Lokhandey organised a conference of workers
in Bombay and drew up a memorandum signed by some 5,300 workers to be presented to the
Factory Commission. This was the beginning of modern trade union movement in India. The
memorandum submitted and adopted at this meeting demanded a weekly rest, half an hour’s
recess, compensation for disablement, payment of wages not later than 15 day of the month
following the one in which they were earned, limitation on hours of work from 6.30 A.M. till
sun-set9 P.M.

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 Bombay Mill-hands Association and Other Labour Associations

The conditions, however, did not improve and therefore, another representation was
submitted to the government in 1890 reiterating the demands of 1884 and was signed by
about 17,000 workers. In the same year the Bombay mill-hands association was established
under the president ship of Mr. Lokhandey. This was the first labour association in India. The
Bombay mill-hands association may not, be classified as a genuine trade union. The workers
did not have effective organisation of their own. It had no existence as an organised body
having no roll or membership, no funds and no rules.

A large number of labour associations were started after 1890. For instance, the
Printers’ Union, Calcutta was established in 1905 and the kamgar hitwardhak sabha and the
social service league in 1910. The amalgamated society of railway servants of India and
Burma was registered under the Companies Act.

Its rules were comprehensive and provided for the election of various office bearers,
the holding of annual general meetings. The society and all other labour associations
established were essentially labour welfare organisations. They may hardly be regarded as
modern trade unions. They wanted to mitigate the evils of the modern factory system. They
discussed the problems, represented their case before the government and pressed for suitable
labour legislation. During the said period from 1875 to 1918, the unions and labour
associations mainly relied upon the constitutional method for getting their grievances
redressed. The most notable feature of this period was the absence of strikes as a means of
getting grievance.

Effects of First War

The declaration of war in 1914 had much helped in the growth of labour movement in
India. The entire economic situation was changed. The war and the consequent shortage of
shipping facilities led to restricted imports of commodities. There was a considerable increase
in the prices of essential commodities like salt, cotton, cloth, kerosene oil, etc. The capitalists
were making enormous profits.

The cost of living was steadily increasing and wages lagged behind. This economic
situation created discontentment and class-consciousness amongst the workers. Their low
standard of living was lowered further. The consequent distress of workers whose wages
were not correspondingly increased generated a series of strike waves in 1918-19. The strike
of Buckingham and Carnatic mills workers in Madras gave a fillip to the trade union
movement in the south. The strike improved their working conditions. However, they needed
proper guidance and leadership. The non-cooperation movement of Gandhi provided willing
leadership to the labour movement.

The Russian revolution and the establishment of Union of Soviet Socialist Republic
(USSR) had its own favourable effect on our trade union movement. It brought a ray of hope
to the underdog in every country. The setting of ILO, a tripartite body was also helpful in the
organisation of labour associations in India.

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 All these factors brought a change in the moral and mental outlook of the workers. A
large number of trade unions were organised after 1918. The Madras labour union was the
first trade union or modern type in India. Its progress was mostly because of the spirit and
sacrifice of its President B. P. Wadia. By 1920, a large number of unions were formed. The
All India Trade Union Congress (AITUC) was established. It represented the workers
interests economic, social and political whenever and wherever it became necessary. The
foundation of the AITUC marked the first recognition of the common interest of labour
throughout the country. By 1925, the number of unions increased. During that period the
labour movement was truly united and there was complete harmony and co -operation among
all sections of working class.

Registration of Trade Unions

Definitions

In this act 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 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) [Subs. By Trade Unions (Amendment) Act 38 of 1964] 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;

(f) [Note: Subs. by Act 42 of 1960] "Registrar" means

(i) A Registrar of Trade Unions appointed by the appropriate Government under

section 3, and includes an 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;

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Appointment of Registrars: -

(1)- [The appropriate Government] shall appoint a person to be the Registrar of Trade
Unions for [each] (State)].

(2)- [Note: The principal section re-numbered as sub-section (1) and sub-section (2)
inserted by Act 48 of 1960] 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, be order, specify and define the local
limits within which any such Additional or Deputy Registrar shall exercise and discharge the
powers and function 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 function 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 Registrar in relation to the Trade Union for the purposes of
this Act.

Mode of registration:-

(1) Any seven or more members of a Trade Union may be 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.

(2) [The principal section re-numbered as sub-section (1) and sub-section (2) inserted by
Act 48 of 1960] Where an application has been made under sub-section (1) of 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 applications, but not exceeding half of the total number of the
persons who made the application, have ceased to be members of the Trade Union or have
notice in writing to the Registrar dissociating themselves from the application].

Application for registration:-

(1) Even 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 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 title, names, ages, addresses and occupations of the [Subs. by Trade Unions
(Amendment) Act No.33 of 1954] of the Trade Union.

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 (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 Union prepared in
such form and containing such particulars as may be prescribed.

Provisions to be contained in the rules of 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
provided for following matters, namely:-

(a) The name of the Trade Union;

(b) The whole of the object 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 purpose, 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 [Subs. by Trade Unions (Amendment) Act
No.33 of 1954] 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 [Subs. by Trade
Unions (Amendment) Act No.33 of 1954] required under Section 22 to form the
executive of the Trade Union;

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 Sec; 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 resemble 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
the name of the Trade Union stated in the application, and shall refuse to register the Union
until such alteration has been made.

Registration:-

The Registrar, on being satisfied that the 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 the
Trade Union contained in the statement accompanying the application for Registration.

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Notes:-This section is mandatory. The Registrar cannot refuse to register a Trade Union if the
application for registration complies with the technical requirement as laid down in this Act.

This Registrar has only to see if it fulfils the technical requirements and not whether it
could be described as unlawful. If the applicant for registration complies with technical
requirements of this Act, he has no option but to register the Trade Union, no matter what
happens to it subsequently even if it, in fact, proceeds counter to law or seeks to carry out its
lawful objects in an unlawful way. (Inland Steam Navigation Workers Union In re.1635 an
application for registration cannot be rejected on the ground that it is an attempt to revive an
old, already unlawful, union under a new name (Ibid.).

The functions of the Registrar are prescribed by this Act and his office is also created
by this Act (Ibid.).

Certificate of Registration
The Registrar registering a Trade Union under Section 8, shall issue a certificate of
registration in the prescribed form which shall be conclusive that the Trade Union has been
duly registered under this Act.
 

Cancellation of Registration

A certificate of registration of a Trade Union may be withdrawn o 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 willfully 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.

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 Trade union finances and accounting records

Trade unions have certain rules they must meet over their finances and accounting
records. Find out about the right of trade union members to be sent and have access to some
of a trade union's finance and accounting records.

Duty to keep accounting records

A trade union must keep proper accounting records of its finances. They must have a
system of controlling their records, cash holdings, receipts and payments. An audited set of
financial records must be part of a trade union's annual return to the Certification Officer.
A trade union must keep these accounting records available for inspection for six years
starting from 1 January after the end of the accounting year they are from.

Financial statements

Within eight weeks of sending its annual return to the Certification Officer, a trade
union must provide all its members with a statement about its finances during the period of
the annual return. 
The trade union may provide the statement either by:-

 sending copies to members

 using the normal way of providing members with
information (eg- publication in the trade union's
journal)
The statement must give the following information on the trade union’s finances
during the period to which the annual return relates:

 the trade union's total income and expenditure

 how much of its income came from trade union
membership subscriptions
 if it has a political fund, the total income and
expenditure of that fund
 the salary and other benefits paid to the president,
general secretary and each member of the
executive committee

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 The statement must also set out the auditors' report on the trade union's accounts for
the period and give the name and address of its auditors.
The trade union must supply a copy of this statement, free of charge, to any member
who asks for one within two years of the date on which it sent its annual return to the
Certification Officer.

Right to inspect accounting records

Trade union members have the right to inspect the records relating to any accounting
period they were a member. If you ask to see your trade union's accounting records, it will
arrange an appointment for you to inspect them. This will normally be at the office where the
records are held.
If you ask for copies of any of the records when inspecting them, your trade union
must supply these for you to take away with you. Your trade union may charge you a
reasonable fee to cover its administrative costs. It must tell you how much the fee will be or
how the amount will be worked out.

Disqualification from holding office

Someone in an official position in a trade union could be found guilty of certain

criminal offences over the duty to keep proper accounting records. If they are, they
cannot hold any important elected position in the trade union (eg member of the
executive) for either five or ten years. The length of the ban depends on how serious the
offence is.
The criminal offence could include:-

 failing to keep proper accounting records

 destroying or fraudulently altering a record of
the trade union's financial affairs
 Trade union elections

Making a complaint

The Certification Officer has general powers to investigate a trade union’s finances.
You can complain to the Certification Officer if you believe:-

 your trade union has carried out its finances

fraudulently or unlawfully
 the conduct of people managing its financial
affairs has been fraudulent or wrong
 your trade union has failed to carry out its
financial legal duties
 your trade union has broken its own financial
rules

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 The Certification Officer will then decide whether to investigate. You should make
your complaint as soon as possible.
In this section.
 Resolving problems with trade unions
 Joining a trade union
 Your right to join, or not join, a trade union
 Trade union rules and membership register
 Trade union subscriptions
 Trade union political funds
unions redressed. Strikes during this period were only exceptional. This period has
been characterised as social welfare period of our early trade union movement.

RECOGNITION OF TRADE UNION

The Trade Unions Act, 1926 however, was conspicuously silent with regard to
provisions regarding compulsory recognition of the unions by employers for the purposes of
negotiation and bargaining on account of employers’ stiff opposition who were not still
reconciled with the trade unions.
The Trade Unions Act, 1926, covers mainly three sets of matters, namely, the
conditions governing registration of trade unions, the obligation to which a trade union is
subjected after registration and the rights and privileges accorded to registered unions. The
Act, however, was amended by the Indian Trade Unions (Amendment) Act, 1928, defining
the procedure regarding appeal against the decision of a registrar refusing to register a trade
union or withdrawing certificate of registration. It would not be out of place to state at this
stage, that the trade union law in India made no provision with regard to compulsory
recognition of unions of workers by their employers for the purposes of negotiation or
settlement of disputes and thereby deliberately created unbridgeable gulf which is constantly
creating acrimony, fear and war of nerves between the labour and capital.

The Act confers on the executive of a recognised trade union the right to negotiate
with employers in respect of matters connected with the employment or non-employment,
terms of employment and the conditions of work of all or any of its members. Finally, the Act
defines certain practices, as unfair on the part of a recognised trade union and certain others
as to be unfair on the part of an employer, and requires both to desist from such practices
under threat of withdrawal recognition on application to the Labour Court by the Registrar or
the employer in the case of the former and a fine of up to Rs. 1,000 in the case of the latter.
Unfair practices include participation, support or instigation of an irregular strike, submission
of returns containing false statements, discharge or discrimination against any officer of a
recognised trade union.

In absence of enforcement of the said amendment of the Act regarding recognition as

technically there is no provision in the Trade Unions Act for recognition. However, in actual
practice, the employers accord recognition to the trade unions following procedure contained
in the Code of Discipline ratified by all Central Employers’ and Workers’ Organisations at
the 16th session of the Indian Labour Conference held in May, 1958, and negotiate with the
trade unions for settlement of industrial disputes to restore and maintain industrial peace in
their establishments.

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Definition of Recognition

A union must be recognised before it may effectively represent any employees. Once
a union is recognised it serves as the bargaining agent for the workers in a particular
bargaining unit. An employee may not circumvent the union, because recognition entails
willingness ‘to negotiate with a view to striking a bargain and this involves a positive mental
decision’.
Need for recognition

Recognition of trade union is the backbone of collective bargaining. It has been

debated time and again. But inspite of the government stated policy to encourage trade
unions, there is no enforced central legislation on this subject. There are however voluntary
code of discipline and legislations in some states.

Definition of Collective bargaining as the ‘performance of the mutual obligation of

the employer and the representative of the employees to meet at reasonable times and confer
in good faith with respect to wages, hours, and other terms and conditions of employment’.

Absence of any central legislation, management in several states has refused to

recognise a trade union mainly on five grounds:-
(1) Most of the office bearers of the union were outsiders, and sometimes, those
disapproved by management, particularly politicians and ex-employees.
(3) The union consisted of only small number of employees;
(4) There were many rival unions in existence; and
(5) The trade union was not registered under the Trade Unions Act,1926.

However none of these objections are maintainable because to accept the same would
amount interference in the functioning of the Trade Unions. Be that as it may, refusal by
employers to recognise or bargain with unions has been the major obstacle to the healthy
growth of trade union and collective bargaining.

Role of ILO for Recognition of Trade Unions

At an international level, the concern felt by ILO for evolving an international

instrument for recognition of trade unions resulted in ILO Convention No. 87 on ‘freedom of
association and protection of the rights to organise’ in 1948 and Convention No. 98
concerning the right to organise and bargain collectively in 1949. The former states that;
‘Workers and employers, without distinction whatsoever, will have the right to establish and,
subject only to the rules of the organisation concerned, to join organisation concerned, to join
organisation of their own choosing without previous authorisation. The Convention
empowers the workers organisation to frame their constitution, to elect representatives and
among others to organise their activities.

To establish and join federations, art. It require that workers and employers and their
respective organisations, like all other, will respect the law of the land. The law of the land
shall not be such as to impair nor shall it be so applied as to impair, did the guarantees
provide for in the constitution’. The latter confers protection to workers against acts of anti-

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union discrimination in respect of their employment. The protection is, directed in respect to
acts calculated to:-

(1) Make the employment of a worker subject to the condition that he will not join a
union or may relinquish trade union membership; and

(2) Cause the dismissal, of or otherwise prejudice a worker by reason of union

membership or because of his participation in union activities outside working hours.

Constitution and Recognition of Trade Unions

The right to grant recognition to trade unions within the meaning of Constitution of
India, act. 19(1) (c) is a fundamental right or not is answered in negative (23) because the
right to form association does not carry with it the concomitant right24 that the association
must be recognised by the employers. Hence withdrawal of recognition25 does not infringe
the fundamental rights guaranteed under the Constitution of India, act. 19(1) (c).

Conditions for Recognition

Trade Unions (Amendment) Act, 1947, s. 25D provides that a trade union will not be
entitled for recognition by order of a labour court under s. 25E unless it fulfils the following
conditions, namely:-

(1) That all its ordinary members are workmen employed in the same industry or in
industries closely allied to or connected with another;

(2) That it is representative of all the workmen employed by the employer in that industry
or those industries;

(3) That its rules do not provide for the exclusion from membership of any class of the
workmen referred to in class.

(4) That its rules do not provide for the procedure for declaring a strike;

(5) That its rules provide that a meeting of its executive will be held at least once in every
six months; and

(6) That it is a registered trade union and that it has complied with all provisions of this
Act. The aforesaid provisions of the Act raise various problems
(a) Can an employer voluntarily recognise a union that is not registered under the Act,
which is in fact a majority union?
(b) Can an employer be compelled to recognise more than one union?

Notwithstanding the relative importance of these questions and rather unsatisfactory

answer than we get from the statute, the significance of Trade Unions (Amendment) Act,
1947, must not be overlooked. But even this might not be put into force.

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Re-Recognition of Trade Unions

The Trade Union (Amendment) Act, 1947, s. 28H permits the registered trade union
whose recognition is withdrawn under sub -s. (3) of s. 28G to make an application for re-
recognition after six months from the date of withdrawal of recognition.

Recognition of Trade Unions by Employers

After the registration of the trade union, the question of its recognition by the
employer comes to the forefront in as much as if it is recognised by the employer for the
purpose of collective bargaining, then it will have certain privileges and an opportunity to
fulfill its role. There is no provision in the Indian Trade Unions Act or Industrial Disputes
Act, 1947, the only two central enactments in this respect in the country regarding
recognition of the trade union by employers. No union registered or otherwise may lay claim
to recognition by the management for participation in negotiations as a matter of a legal right.

However it may not be denied that fair play requires the management to consider
grant of recognition when a body of persons legitimately expects to be affected 38. This right
of recognition has to be secured by the trade unions by raising an industrial dispute. The
Code of Discipline regulates this aspect, though not on a statutory level. The National
Commission on Labour has recommended such a statutory right for unions. Non-recognition
of a trade union for collective bargaining constitutes an unfair labour practice. Provisions has
however been made in the State of Maharashtra by Maharashtra Recognition of Trade Unions
and Prevention of Unfair Labour Practices Act, 1971.

Code of Discipline and Trade Union Recognition

With the evolution of the voluntary measures in the nature of the Code of Discipline
in the industry, an attempt has been made to make a provision for recognition of the unions
by the employers. Thus under the Code of Discipline the management has agreed to
recognise in accordance with the criteria evolved at the 16 Session of Indian Labour
Conference held in May 1958. The criteria for recognition of a union has been that the
membership of the union must cover at least 15 per cent of the workers in the establishment
and for this purpose the membership has to be counted only of those persons who have paid
their subscription for at least three months during the period of six months immediately
preceding the reckoning. When there is more than one union, a union claiming recognition
must have been functioning for at least one year after registration. The recognition is
generally given for a period of two years. It there is more than one union in an industry or
establishment, the one with the largest membership must be recognised. It is a condition of
recognition that the unions must observe the provision of the Code of Discipline. These
criteria for recognition of unions have created many problems and in the absence of any
statutory sanction underlying the Code of Discipline in actual practice, the recognition of a
union by employers has lot much of its significance.

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Rights of the Recognised Unions under the Code of Discipline

Under the Code of Discipline, the recognised unions have been given certain rights in
preference to unrecognised unions. These rights are:

(1) To raise issue and enter into collective agreements with employers on general
questions concerning terms of employment and conditions of service of workers in an
establishment of in the case of a representative union, in an industry in a local area;

(2) To collect membership fees/subscriptions payable by members to the union within the
premises of the undertaking;

(3) To put up or cause to put up a notice board on the premises of the undertaking in
which its members are employed and affix or cause to be affixed thereon notices relating to
meeting, statements of accounts of its income and expenditure and other announcements
which are not abusive, indecent or inflammatory or subversive of discipline or otherwise
contrary to the Code;

(4) For the purpose of prevention or settlement of an industrial dispute:-

(a) To hold discussion with the employees who are members of the union at a suitable
place or places within the premises of office/factory/establishment as mutually agreed
upon;
(b) To meet and discuss with an employer or any person appointed by him for the
purpose, the grievance of its members employed in the undertaking; and
(c) To inspect to prior arrangement, in an undertaking, any place where any member
of the union is employed;

(5) To nominate its representatives on the grievance committee constituted under the
grievance procedure in an establishment;

(6) To nominate its representative on joint management councils, and

(7) To nominate its representative on non-statutory bipartite committees for instance

production committee, welfare committee, canteen committee, house allotment committees
up by managements.

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CONCLUSION

Sound trade union has the potentialities for generating a healthy circle of better labour
productivity, increasing earnings of labour, expanding their purchasing power, improving
their working and living conditions, increasing efficiency, and having more production. Such
a state of affairs would be beneficial not only to workers, but also to the industry and to the
nation. Therefore, it is essential to recognise the vital importance of trade union as an integral
part of the industrial structure of India. The government and many enlightened employers do
appreciate the importance of the role of trade unions, and their policy is one of
encouragement and assistance to the trade unionism. The future of trade unionism in Indian
depends mainly upon the effort of the unionists themselves. For developing internal vitality, a
strong and stable trade union movement is essential for the proper functioning of industry.
Multiplicity of unions in the same plant leads to inter-union rivalry that ultimately cuts at the
root of the trade union movement. It weakens the power for collective bargaining and reduces
the effectiveness of workers in securing their legitimate rights. Therefore, there must be only
one union in one industry.

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