Dissolution of Trade Unions

Trade Union is an integral part of the Labour Laws. Trade unions are contemplated as the voluntarily emerged association with the required number of the labour force with respect to work conferring upon any trade or industry. This established association helps, protects, and improves the welfare of labours as well as the organizations. Trade Unions in India are governed and regulated under the Trade Unions Act, 1926. Section 27 of the Trade Union Act, 1926 deals with the dissolution of the associated trade union organizations. To get dissolved the union should be officially and legally certified with the registration of such union. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution. On being satisfied the registrar shall register the notice and the union shall stand dissolved from the date.

Introduction

Trade Union is an integral part of the Labour Laws. However, Labour laws confer mostly on the well-being of the wage-earners and on development of the workplace of their organization. Such that Trade unions are contemplated as the voluntarily emerged association with the required number of the labour force with respect to work conferring upon any trade or industry. This established association helps, protects, and improves the welfare of labours as well as the organizations. Trade Unions in India are governed under the Trade Unions Act, 1926 which administers the formed unions and to ear and accept the claims of the workers. Even the registered company or union can dissolve or wind up according to the provisions under this Trade Unions Act, 1926.

Chronicle on International View

International Labour Organization (ILO) was the first legal organization formed to sort-out all demands of the workers and establishments. This Organization was implemented through the Treaty of Versailles during 1919 at the Paris Peace Conference. In the same year, The International Federation of Trade Union was the first international union set up to hear all schemes on welfare and interest of the labours suggested by various countries. The International Federation of Trade Union directed and demanded to abolish the practice of wage employment and as a result introduced the concept of socialism and communism. After this International conference, the two allied powers Great Britain and the United States of America proposed their opinions for the welfare of the workers. The United States proposal was approved with certain restrictions and few recommendations of other Countries by the Paris Peace Conference in 1919. In 1946, the International labour (Trade Unions) conference came to an end and the International Labour Organization was added to the United Nations [1].

International Aspect

The Compilation of decisions of the Committee on Freedom of Association under the International Labour Organization deals with the information and direction on the procedures of dissolutions and suspensions of the trade union organization. The motive of this Compilation is to generate certain guidelines and to take cognizance of the existing fruitful fundamental principles on the freedom of association. The preamble of the Constitution of International Labour Organization proclaims the Principles of freedom of association as for developing the good circumstances of workers and to maintain peace in their workplaces. Those directions provide a detailed view on the dissolution of trade unions organization. The directions are as follows [2]:

  1. With respect to general principles of this compilation clarifies that the associated unions can be dissolved deliberately or by judicial intrusion under Convention No. 87 in Freedom of Association and Protection of the Right to Organise Convention, 1948.
  2. Deliberate dissolution can be constituted by summoning a committee consists of all workers with their consents and such a result of dissolution should not contravene any of the rights of the trade unions.
  3. The dissolution of trade unions through the intrusion of judicial bodies must occur only on extreme emergence circumstances. In such circumstances, the union which incurred to be dissolved should be given acceptance for the same. Decision made by courts/tribunals on the dissolutions should be appealable.
  • Associated unions shall wind up due to scanty in required workers. That union should be at an inadequate state to continue or perform their works in the future.
  • Dissolution of trade organization by administrative authorities of that respectively formed union may be made with proper notice to registrar in form of cancellation of the registered union. If the dissolution made without prior notice to registrar such administrative dissolution of trade unions is considered a breach of Article 4 under Convention No. 87 in Freedom of Association and Protection of the Right to Organise Convention, 1948. The registrar is the person representing the Governmental authority who governs the legal procedures including registering and dissolution of the associated trade unions.
  • Trade unions should be dissolved with respect to legislative measures enacted through statutory law with the certain provisions mentioned to it.

Advancement in India

Some of the initial trade unions associated in India during the British rule were namely Bombay Mill-hands Association, 1890; Printer’s Union Calcutta, 1905; Bombay Postal Union, 1907; Bombay Kamgar Hitwardhak Sabha, 1910. The Madras Labour Union, 1918 has been traced as the 1st Indian Association to form a trade union in the pre-independent India. At this stage of the pre-independence era, these trade unions have existed for both workers as well as employers. There were several employer unions that exist to prevent and develop the welfare of them like the chamber of commerce, industrial associations, etc. Emerged Trade unions in various industrialized developed countries created a huge bang (improvement) on the social, political, and economic fields. The rise of many trade unions in India was quiet cut-backed with certain limits yet in a developmental stage. Since India is mostly known for its abundance of growth in agricultural fields such formation of trade unions was constricted [3].

There was a demand that arose during the post of First World War for the formation of all separately constituted unions to collective union organizations. Hence, All India Trade Union Congress, 1920; Bengal Trades Union Federation, 1922 and Bombay Central Labour Board, 1922; All India Railway men’s Federation; Provincial and Central federations of unions for postal workers were set up with respect to National premise. These union organizations emerged in India at post World War-I [4].

Working of the Indian trade union organization was governed and regulated by the Trade Union Act. For the declaration of the Indian Trade Union Act, the Buckingham Mill case, 1940 played a vital role where the Madras High Court awarded an interim order against the Strike Committee of the Madras Labour Union prohibiting them to prompt some labours to pierce their contracts of job with not returning to work. Trade Union leaders were held liable with a legal sanction in order to continue the functions of trade union organization in a good faith and also thought that need for certain legislation for the protection and regulation of trade unions [5].

Shree Narayan Malhar Joshi, the trade union leader and the General Secretary of the All India Trade Union Congress passed suggestions in the Parliament in 1924. They endorse the Central Government should enact statutory law for the governing, preventing, and regulating the trade union organizations. But the employers’ unions stood against this provision since it was favourable only to workers. Besides, the Indian Trade Unions Act, 1926 was declared. Such that the Indian Trade Union Bill was introduced in1925. The bill was passed by the legislatures and got the assent on the 25th of March 1926. Finally, the act got its effect from the 1st of June in 1927. Today, it is referred to as the Trade Union Act, 1926 [6].

Dissolution

The definition of the trade unions is mentioned in section 2(h) of the Trade Union Act, 1926. Trade Union means any combination, whether temporary or permanent, formed mainly for the purpose of regulating the relations between employee and employers or among employees, or among employers, or for imposing limitations to conditions on the conduct of any trade or business and includes any federation of two or more trade unions. This act ensures that any provisions contained in this act shall not affect any agreement between partners as to their own business, any agreement between an employer and the employee who employed by him regarding such employment, any agreement with something in return of the sale of the goodwill of a business or trade [7].

Section 27 of the Trade Union Act, 1926 deals with the dissolution of the associated trade union organizations. To get dissolved the union should be officially and legally certified with the registration of such union. Section 27 (1) conveys that an associated union can be dissolved through giving 14 days prior notice to the registrar. The notification may be on any insufficient grounds and completely believed the unions cannot run further. Such notice should be signed with a minimum of seven members and the secretary of the trade union. The registered dissolution notice is satisfied and registered by the registrar of such dissolution had its effect from the date of such registration and made dissolution should be in accordance with the rules of the trade union [8].

Section 27 (2) confers the allotment of funds to the workers. When the dissolution of a trade union has been registered and the rules of that trade union do not provide for the distribution of funds of the trade union on dissolution, the registrar should allot the respective funds of the workers in a stipulated manner [9].

Brief of the Trade Union Act, 1926

The Trade Union act requests for the protection and registrations of trade unions that emerged in India. Chapter – I of this act refers to the title, its extension to whole country, and its time of commencement with the definitions of important terms mentioned under Trade Union Act, 1926. The act discusses the application, registration, amalgamation, and dissolution procedures of trade unions in India under Chapter – II of sections from 3 to 14. The associated trade unions are also vested with certain rights and liabilities under Chapter – III of sections from 15 to 28. And imposes penalties on the failure of performance.

Sample Notice of Dissolution [10]:

Notice of Dissolution of a Trade Union

                  Date: …………………….

Name of the trade union: ………………….…………………….…….

Registration No.: …………………

To: Registrar of Trade Unions,

1. In accordance with Section 32(1) of the Trade Unions Ordinance, notice is given that this trade union was dissolved in accordance with Rule ……………  Of its registered rules on ….……………………….……………

2. Enclosed are the following documents certified and signed by the signatories to this notice: (a) a copy of the notice calling the meeting for considering the dissolution; and (b) a copy of the resolution of that meeting.

3. The union’s Certificate of Registration is attached.

4. In accordance with the said Section 32(1), this notice is signed by the Secretary and seven other persons who were voting members of this union at the date of the dissolution.

                Signature                                                          Name

(1) ………………………….………                   (                                                         )   

 (2) ………………………….………                 (                                                          )

(3) ………………………….………                  (                                                          )

(4) ………………………….………                  (                                                          )

(5) ………………………….………                 (                                                           )

(6) ………………………….………                    (                                                          )

(7) ………………………….………                    (                                                           )

8) ………………………….………                      (                                                           )    

[Signature of 1st person denotes the Secretary of the union and signature of persons from 2 to 8 (7 members) denotes the Members of the union]

Conclusion

For a complete dissolution it is necessary that the trade union organization should be registered and satisfied with the section 27 of the Trade Union Act, 1926. The registrar grants with the dissolution of certain grounds like insufficient members, illegal activities, etc and the registrar are satisfied that the union cannot work further on reasonable grounds. The Court may also interfere and declare the dissolution on series cases of fraudulent measures. The made decision of such Court or Tribunal should be appealable.

FAQs

Q.1. What is a Trade Union?

Trade unions are known as the voluntarily emerged association with the required number of the labor force with respect to work conferring upon any trade or industry. This established association helps, protects, and improves the welfare of labors as well as the organizations. Trade Unions in India are governed under the Trade Unions Act, 1926 which administers the formed unions and to ear and accept the claims of the workers.

Q.2. What Was the First International Trade Union?

The International Federation of Trade Union was the first international union set up to hear all schemes on welfare and interest of the labors suggested by various countries. The International Federation of Trade Union directed and demanded to abolish the practice of wage employment and as a result introduced the concept of socialism and communism.

Q.3. What Was the First Indian Trade Union Paved Way for The Trade Union Act, 1926?

The Madras Labor Union, 1918 has been traced as the 1st Indian Association to form a trade union in the pre-independent India. This paved way for legal legislation referring to the Trade Unions.

Q.4. When This Trade Union Act Was Came into Force?

The Indian Trade Union Bill was introduced in1925. This bill was passed by the legislatures and got the assent on the 25th of March 1926. Finally, the act got its effect from the 1st of June in 1927.

Q.5. What Is the Procedure for Dissolution?

Section 27 (1) conveys that an associated union can be dissolved through giving 14 days prior notice to the registrar. The notification may be on any insufficient grounds and completely believed the unions cannot run further. Such notice should be signed with a minimum of seven members and the secretary of the trade union. The registered dissolution notice is satisfied and registered by the registrar of such dissolution had its effect from the date of such registration and made dissolution should be in accordance with the rules of the trade union.

References

[1] https://ncib.in/pdf/ncib_pdf/Labour%20Act.pdf

[2]https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:70002:0::NO::P70002_HIER_ELEMENT_ID,P70002_HIER_LEVEL:3946569,1

[3] http://mospi.nic.in/sites/default/files/Statistical_year_book_india_chapters/Trade%20Unions.pdf

[4] http://mospi.nic.in/sites/default/files/Statistical_year_book_india_chapters/Trade%20Unions.pdf

[5] http://mospi.nic.in/sites/default/files/Statistical_year_book_india_chapters/Trade%20Unions.pdf

[6] http://mospi.nic.in/sites/default/files/Statistical_year_book_india_chapters/Trade%20Unions.pdf

[7] https://www.indiacode.nic.in/bitstream/123456789/2386/1/A1926-16.pdf

[8] https://www.indiacode.nic.in/bitstream/123456789/2386/1/A1926-16.pdf

[9] https://www.indiacode.nic.in/bitstream/123456789/2386/1/A1926-16.pdf

[10] https://www.labour.gov.hk/form/rtu/Form9_e.pdf

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