How to form a Trade Union in India?

InIndia, as against the earlier policy of suppressing trade unionism and its leaders, a modest protection has been given under the Trader Unions Act, 1926. Trade Union means 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 (Sec 2{g}). The rulebook of the trade union, a copy of which is to be submitted for registration along with other details, shall disclose whole of the objects for which the trade union has been established and whole of the purposes for which the general funds of the trade union shall be applicable. The rules shall also determine membership criteria, subscription requirements, method of election of office bearers and dissolution of the trade union (Sec 6).

The Registrar’s satisfaction about compliance with all the requirements of the Act leads to registration (Sec 8) creating a corporate personality. In order to deal with the problem of multiplicity of trade unions, it is provided by the Amendment Act 2001 that a registered trade union of workmen shall at all times continue to have not less than ten percent or one hundred of the workmen, whichever is less, employed in the industry with which it is connected (Sec 9A). Willful contravention of the provisions of the Act, or fraud or mistake in obtaining registration, or stoppage of functioning may cost its registration itself (Sec 10). This is a strong measure for purpose compliance.

For effective functioning of the trade unions, the office bearers or members of Trade Unions are given immunity from criminal and civil liabilities (Sec 17 and 18) for activities purporting to further trade union objectives. The appropriate government (either central or state) shall appoint a person as Registrar of Trade Union for each state. He shall be assisted by Additional and Deputy Registrars of Trade Unions appointed by the Government. These officers are the implementing bodies for the statute. Willful contravention of the provisions of the Act, or fraud or mistake in obtaining registration, or stoppage of functioning may cost its registration (Sec 10).

Advantages:

• it protects the interest of its members
• it builds the relationship between the employee and employer
• it organize social , recreational and culture activities among the members

 Disadvantages:

• If labour markets are competitive, higher wages will cause unemployment.
• Trades unions only consider the needs of its members; they often ignore the difficulty of those excluded from the labour markets.

To form a Trade Union in India just fill this form: