Definition and Registration of Trade Union

Introduction	jurisprudence
Provisions	section 2(g)&(h, 3-13 of Trade Union Act
Case laws	Rangaswami v. Registrar of Trade Unions AIR 1962 Mad. 231 The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v. The Registrar of Trade Unions AIR 1962 Mad. 234 In Re Inland Steam Navigation Workers’ Union AIR 1936 Cal. 59 The Food Corporation of India Staff Union v. Food Corporation of India & Ors AIR 1995 SC 1344
Conclusion	Present problem

What is Trade Union?

A trade union is an organized group of workers formed to protect and promote their common interests, such as improving working conditions, securing higher wages, ensuring job security, and advocating for workers’ rights. Trade unions act as a collective voice for employees in negotiations with employers, typically through the process of collective bargaining.
Section 2(h) of Trade Union Act defines Trade union as, “any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions”.

Trade union primarily made for two goals,
1. Firstly, for regulating the relationship between, workmen and employers; workmen and workmen; employers and employers.
2. Second, for imposing limitations on the operations on any trade or business, which includes any federation of two or more trade unions.

Registration of Trade Union

The registration of trade unions is a legal process that allows workers or employers to form an organized group to protect their rights and interest. The method of registration encourages the unions to expand steadily and maintain strong unions. The process for the registration of a trade union is outlined in Chapter II (Sections 3 to 14) of the Trade Unions Act, 1926. While registration is not mandatory, it is highly desirable as it confers certain rights and privileges on the trade union and its members, such as legal recognition and immunity from certain civil and criminal liabilities.

Procedure for Registration

1. Appointment of Registrars (Section 3):
   The “appropriate Government” (Central or State, depending on the union’s scope) is empowered to appoint a “Registrar of Trade Unions” for each State.
   The appropriate Government may also appoint Additional and Deputy Registrars to assist the Registrar and exercise specified powers under their supervision.
2. Mode of Registration (Section 4):
   – Minimum Membership: Any seven or more members of a trade union can apply for registration.
   – Application: They must subscribe their names to the rules of the trade union and comply with the Act’s provisions regarding registration.
   – Workmen’s Unions – Additional Requirement (Post Amendment): For trade unions of workmen, there’s an additional condition: the union shall not be registered unless at least 10% or 100 of the workmen, whichever is less, engaged in the establishment or industry with which it is connected, are members on the date of application. There’s also a minimum requirement of seven workmen as members.
3. Application for Registration (Section 5):
   – The application must be made to the Registrar in the prescribed form.
   – It must be accompanied by the following:
   * If the trade union has been in existence for more than one year before the application, a general statement of its assets and liabilities in the prescribed form must also be submitted.
   * A copy of the rules of the trade union, signed by at least seven members.
   * A statement containing the following particulars:
   * The names, occupations, and addresses of the members making the application.
   * The name of the trade union and the address of its head office.  
   * The titles, names, ages, addresses, and occupations of the office-bearers of the trade union.
   – If the trade union has been in existence for more than one year before the application, a general statement of its assets and liabilities in the prescribed form must also be submitted.  
4. Provisions to be Contained in the Rules of a Trade Union (Section 6):
   – A trade union is not entitled to registration unless its rules make provision for the following matters:
   * The name of the trade union.
   * The whole of the objects for which the trade union has been established.
   * The purposes for which the general funds of the trade union shall be applicable.  
   * The maintenance of a list of the members and adequate facilities for their inspection.  
   * The admission of ordinary members and the payment of subscriptions.
   * The conditions under which any member shall be entitled to any benefit assured by the rules.
   * The manner in which the rules shall be amended, varied, or rescinded.
   * The manner in which the members of the executive and other office-bearers shall be appointed and removed.  
   * The safe custody of the funds of the trade union, its annual audit in the prescribed manner, and adequate facilities for inspection of the accounts by the members.
   * The manner in which the trade union may be dissolved.
5. Power of Registrar to Call for Further Particulars (Section 7):
   – The Registrar has the power to call for further information to satisfy themselves that the application complies with the Act’s provisions.
   – If the proposed name of the trade union is identical to that of any existing registered trade union or so closely resembles it as to be likely to deceive the public or the members of either union, the Registrar may require the applicants to alter the name.
6. Registration (Section 8):
   – If the Registrar is satisfied that the trade union has complied with all the requirements of the Act regarding registration, they shall register the trade union by entering the particulars relating to the union in a register maintained in the prescribed form.
7. Certificate of Registration (Section 9):
   – Upon registering a trade union, the Registrar shall issue a certificate of registration in the prescribed form.
   – This certificate is conclusive evidence that the trade union has been duly registered under the Act.
8. Cancellation of Registration (Section 10):
   – The Registrar has the power to withdraw or cancel the certificate of registration in the following circumstances:
   * On the application of the trade union itself, verified in the prescribed manner.
   * If the Registrar is satisfied that the certificate was obtained by fraud or mistake.
   * If the Registrar is satisfied that the trade union has ceased to exist.
   * If the Registrar is satisfied that the trade union has willfully and after notice from the Registrar contravened any provision of the Act or allowed any rule to continue in force which is inconsistent with any such provision.  

Advantages of Registration

1. Legal Recognition: enables the union to operate as a formal entity.
2. Collective Bargaining: strengthens the union’s ability to negotiate with employers.
3. Immunity: Members enjoy protection from certain liabilities under the law.

Rights of Registered Trade Unions

1. Right granted as a legal person: a registered trade union is recognised as a separate legal entity, capable of owning property, entering contracts, and suing or being sued.
2. Immunity from certain legal actions: registered trade unions and their members are protected from civil or criminal liabilities for acts done in furtherance of a trade dispute, provided such acts are lawful. This includes strikes, peaceful picketing, and negotiations.
3. Right to manage funds: trade unions can maintain funds for lawful purposes, such as administrative costs, legal expenses, or benefits for members during strikes.
4. Right to admission: a person has right to admit as a member but it is not absolute right as trade union may set restrictions and admissions requirements as per law.
5. Right of Representation: Trade unions can represent their members in disputes, labour courts, tribunals, and other legal proceedings.
6. Right to inspect books: members of trade union have right to inspect any book of accounts under section 20.
7. Right to amalgamate: as per section 24, two or more trade unions may amalgamate into one with or without dissolution or division of their funds.
8. Right to change its name: trade union can change its name with the consent of at least 2/3 of its members.

Duties and Liabilities of registered trade union

1. Maintenance of accounts: trade union must maintain accurate accounts and financial records. Annual audits are mandatory to ensure transparency and compliance.
2. Submission of Annual returns: unions must submit annual returns to the Registrar of Trade Unions, including details of membership, income, expenditure, and assets.
3. Adherence to constitution and rules: trade unions must not promote or engage in activities that contravene the law, including violent strikes or unlawful picketing.
4. Fair Representation: they must ensure that the interests of all members the represented equally without discrimination.
5. Use of funds: funds must be used only for lawful purposes, such as member welfare, administrative expenses, and dispute resolution.
6. Duty to provide access to books of trade union
7. Duty to send notice to Registrar: it is the duty of trade union to send notice to Registrar for any changes in its union.

Case Laws

Rangaswami v. Registrar of Trade Unions

Facts: Workers in the Madras Raj Bhawan creates a trade union named, “Madras Raj Bhawan Worker’s Union”. On 9 February, 1959, seven of the employees applied to the Registrar of Trade Unions, Madras for registration of their union as a trade union under the Trade Unions Act of 1926, claiming that their services could not be held to be purely domestic services, so their union was entitled to the benefits of registration under the Trade Unions Act. However, they did not claim that employees were engaged in either trade or industry.
Workers worked there and their services were not pensionable but were entitled to gratuity at certain rates.
Registrar refused to register their trade union stating that they are not worker as there is no industry or trade where they are working and they are just providing personal services.
Issue: Whether Industrial Disputes Act and the Trade Unions Act could be read together as in pari materia, that is, as forming one system and interpreting one in the light of another?
Whether the sale of unserviceable materials and surplus garden produce will amount to a trade or business activity?
Judgement: Court said that The Trade Union Act and Industrial Dispute Act cannot be read together. Even if we read S.2(j) of the Industrial Dispute Act with S.2(j) of the Trade Union Act, the services provided by the workers are personal in nature, as the employers were not cooperating with the employees to achieve a particular result.
In the definition of the term “trade union”, the regulation of relationship contemplated is in regard to the conditions of service of the employees which postulates the existence of an employer who is concerned in the business, trade or industry. Court held that employees at Raj Bhavan are Government servants who could not form themselves into a trade union, it cannot be stated that the workers are employed in a trade or business carried on by the employer. The services rendered by them are purely of a personal nature. The union of such workers would not come within the scope of the Act so as to entitle it to registration thereunder. So, petition was dismissed.

The Tamil Nadu Non-Gazetted Government Officers’ Union, Madras v. The Registrar of Trade Unions

Facts: The Tamil Nadu Non- Gazetted Government Officers’ Union which was recognized by government, represented by 10 of its members applied on 23^rd December, 1957 to the Registrar of Trade Unions, Madras for registration as trade union, under Sec 5 of Indian Trade Unions Act, 1926.
But the Registrar rejected the application for registration contenting that the said association of ministerial employees cannot claim registration as a trade union.
Issue: Whether the Registrar was correct in rejecting the application?
Can ‘Collective bargaining’ be exercised as a right by the civil servants?
Whether the non-gazetted officers of the appellant union like the Sub Magistrate in the judiciary, Tahsildar, Officers of the Treasuries, and Home department of Government are workmen in trade or industry to be registered as Trade Union?
Judgement: The court stated that section 8 of the Trade Union Act empowers the Registrar to reject the application if it fails to fulfill any conditions of this Act. Since the Union has not fulfilled the conditions set by Section 2(g) and S. 2(h), the Registrar has the power to refuse the registration.
The regal and sovereign activities of the Government are outside the wide scope of “Industry”. In the present case, the civil servants engaged in sovereign and regal functions of the Government can not be registered as a Trade Union.
People working as civil servants are not workmen within the definition of the provision and they are also not working in the industry to make them “workers”. Persons who are not “workmen” in an “industry” can not form a Trade Union.
“Collective bargaining” is a right conceded to labor organizations within the contractual field of the employer and employee relationship. It does not apply to civil servants whose tenure, dismissal, and demotion are decided by the Government. It can only be applied in a contractual relationship between the employee and employer.
The court found that the word “workmen” is limited only to laborers and semi-skilled workers. The court held that the Registrar was correct in refusing the registration application as the non-gazetted officers or government servants in the union are not workers within the definition under section 2(g) of the Act.

In Re Inland Steam Navigation Workers’ Union 

Facts: A trade union, Inland Steam Navigation Worker’s Union, files an application for registration to the Registrar. But the Registrar refused to register under section 16 of the Criminal Law Amendment Act 1908 by the Govt of Bengal, on the ground that this is a previous trade union, RSN and LGN, and Ry. Workers’ Union, which was earlier declared unlawful.
Hence, the appellant filed suit under section 11 of the Trade Union.
Issue: Whether the Registrar of the Trade Union was right to pass a decision after relying on the letter presented before the Bengal Government?
Judgement: The court stated that The Registrar made an error in applying. The registrar has to examine the application and look after the trade union’s object for which it was formed. He is not allowed to examine whether the union is unlawful or not. He can’t go into the question of law.
The court provided that section 8 of the Trade Union Act, gives powers to Registrar to refuse an application for a union’s registration only on the ground that the said Union has not complied with the requirements as provided by the Act.
The duties of the Registrar before registering a Union under this Act are:-
1. To examine the application presented for registration.
2. To look into the objects for which the Union was formed.
3. To examine whether the said objects are intra vires or ultra vires of the act.
Court sent back the matter to the Registrar to consider whether the requirements of registration is compiled or not. Appeal allowed.

The Food Corporation of India Staff Union v. Food Corporation of India

Facts: “Collective bargaining” is a right conceded to labor organizations within the contractual field of the employer and employee relationship. When there are multiple registered trade unions in an establishment, determining with whom the employer should negotiate or enter into bargaining becomes important. The method of secret ballot is being gradually accepted to determine the sole bargaining agent.
There were two registered Trade Unions in an Industry. Consequently, a situation arose before the employers to understand which was an powerful union or with whom they should bargain regarding terms, conditions etc. As a result, In the present appeal, the Supreme Court of India laid down the procedure be executed to get the correct results by the Secret Ballot System. 
Issue: When there are multiple registered trade unions in an establishment, who should be the sole bargaining agent?
What are the guidelines which laid down by the Court in the present appeal?
Judgement: Court stated that Secret Ballot is used to determine sole bargaining agent. The eligibility requirements for participating in the election are that the unions must have valid registration under the Trade Unions Act, 1926 for one year with an existing valid registration on the first day of filing of nomination.
Court gave following guidelines:-
1. The CLC shall fix the month of the election while the date of the election shall be fixed by the Returning Officer.
2. The Returning Officer shall notify the election schedule after the consultation with the FCI.
3. The Returning Officer shall conduct the election with the help of the FCI. 
4. The Polling assistants may be selected by the Returning Officer among the FCI members.
5. The Court said the strength of all eligible unions will be decided by the “Secret Ballot System” under the supervision of the Chief Labour Commissioner (CLC).
6. The Returning Officer shall inform FCI to furnish the list of all the employees who work in the category of III and IV under the FCI (Staff) Regulations Act, 1971.
7. The Trade Union, which is registered under the Act for one year, is eligible to participate in the election.
8. The FCI shall display the voters list on the notice board and other visible places so that the person who gets any issues can raise them to the Returning Officer within the stipulated time. 
9. The language of the ballot paper would be Hindi, English and the concerned regional language. 
10. The signature of the workman or employee shall be obtained on the counterfoil of the ballot paper to ensure that the ballot paper has been put inside the box. 
11. After polling, the ballot box will be opened and counted by the Returning Officer before the representative of each of the Union. 
12. After declaring the poll results, the Returning Officer will send a report of his findings to the CLC. 
 13. The contesting Union would have the power to challenge the election result. Before the Returning Officer, the objections can only be raised after the election is over. The Objection shall be heard by CLC and disposed of within 30 days. The decision of CLC shall be final but subject to challenge before a competent court. 
The Court directed the CLC and the FCI to hold the elections as per the procedure mentioned in this order.

PRESENT PROBLEM

1.Teachers don’t fall in the category of “workman” as it was held in the Delhi University vs Ram Nath(1963), teachers are excluded from the definition of “workman” because their work cannot be categorised as manual or operational. But this was overruled in Bangalore water supply case, that educational institutions are industry.
The Association should file an appeal against the Registrar’s decision before the appropriate authority or court, challenging the refusal on the grounds that:
– teachers are not excluded from forming trade unions under the TU Act
– the medical college could qualify as an industry under the triple test established in Bangalore Water Supply case.
Rely on the right under article 19(1)(c) to strengthen their arguments.

2. The association of employees of Juris & Co. qualifies as a trade union and is eligible for registration. The employees should ensure their application complies will all procedural and documentary requirements of the Trade Union Act, 1926. If the Registrar denies registration, they can appeal under section 11 of the Act.

3. Based on the legal provisions of the Trade Unions Act, 1926, particularly the definitions of “workman” and the understanding of “trade or industry,” and considering the primary religious nature of Tarala Society and the inclusion of the priests who do not stand in a typical employer-employee relationship within a trade or industry, I would have rejected the application for the registration of the “Tarala Staff Association.” The composition of the proposed union, including individuals who do not qualify as “workmen” under the Act within an institution whose primary activities are not “trade or industry,” does not meet the fundamental requirements for registration as a trade union.

4. GLTA should prioritize appealing the Registrar’s decision and obtaining registration under the Trade Unions Act. Once registered, they will have a stronger legal footing for collective bargaining and any potential industrial action, benefiting from the protections and recognition provided by the Act. Resorting to a strike as an unregistered union is fraught with legal uncertainties and risks.