Cancellation and Dissolution of Trade Union and Procedure for Change of Name 

Cancellation and Dissolution of Trade Union and Procedure for Change of Name 

This article is written by Jagat Pal Singh Gohil (Cancellation and Dissolution of Trade Union and Procedure for Change of Name), Army Law College, Pune intern under Legal Vidhya

ABSTRACT

Trade unions are organizations formed by workers to represent their collective interests and to negotiate with employers on issues related to wages, benefits, and working conditions. In India, trade unions have a long and influential history that dates back to the late 19th century. The first trade union in India, the Bombay Mill Hands Association, was formed in 1890. Today, trade unions are present in almost every industry and continue to play a crucial role in advocating for workers’ rights and interests, shaping labor laws and policies, and negotiating with employers. Despite facing various challenges, trade unions remain an essential part of the labor movement in India.

Introduction

A trade union, also known as a labor union, is an organization that represents the collective interests of workers in a particular industry or trade. The primary purpose of a trade union is to negotiate with employers on behalf of its members for better wages, benefits, and working conditions. Trade unions may also provide their members with a range of services, including legal representation, training, and advocacy. 

Cancellation and dissolution of a trade union refer to the legal process of terminating the existence of a labor union. This can occur for various reasons, including voluntary or involuntary dissolution, bankruptcy, or court order. The cancellation or dissolution process can be complex and may involve various legal and regulatory requirements, depending on the jurisdiction. 

In some cases, a trade union may also opt for a change of name, which may be due to rebranding or other strategic reasons. The process for changing the name of a trade union also varies depending on the jurisdiction and may require the submission of specific forms and documentation to relevant regulatory bodies. 

It is important to note that a trade union’s cancellation, dissolution, or name change can have significant consequences for its members. Therefore, it is crucial that the process is carried out in accordance with applicable laws and regulations and that the rights and interests of the members are protected throughout the process. 

History

The term “trade union” is generally attributed to the British reformer and political economist Robert Owen. Owen used the term in his writings and speeches in the early 19th century to refer to organizations of workers who came together to improve their working conditions, wages, and overall well-being. He is also credited with coining the related term “trade society,” which was used to describe similar organizations of workers in the UK during this period.

The history of trade unions can be traced back to the end of the 18th century, when workers in the UK and US began to form associations to improve their working conditions and wages. The first recorded trade union was the Journeymen’s Club, established in 1768 in Manchester, England. 

The first significant trade union in the UK was the Friendly Society of Agricultural Laboure’s, established in 1872, which represented the interests of rural workers. The growth of industrialization in the 19th century led to the formation of numerous trade unions, which helped to secure better working conditions and wages for workers.

In the US, the first trade union was the National Trades’ Union, established in 1834. This union represented workers in a range of industries, including carpentry, shoemaking, and printing. The National Trades’ Union was short-lived, but it paved the way for the establishment of other trade unions, such as the Knights of Labor and the American Federation of Labor. 

The history of trade unions is marked by significant struggles and achievements, including the fight for the eight-hour workday, workplace safety regulations, and collective bargaining rights. Today, trade unions continue to play an important role in protecting workers’ rights and advocating for better working conditions and wages.

Definition

Since the publication of History of Trade Unionism (1894) by Sidney and Beatrice Webb, the dominant historical view has been that a trade union is “a continuous association of wage-earners for the purpose of maintaining or improving the condition of their employment.” Karl Marx described trade unions as: “The value of labor-power forms the conscious and evident basis of trade unions, the importance of which … can hardly be overestimated to the working class. prevent the lowering of wages below the level traditionally maintained in the various branches of industry. That is, they labor- desiring to prevent the price of power from falling below its value” (Capital V1, 1867, p. 1069). Early socialists also saw trade unions as a way to democratize the workplace to capture political power.

A modern definition by the Australian Bureau of Statistics states that a trade union is “an organization consisting primarily of employees, whose main activities include the negotiation of rates of pay and conditions of employment for its members”.

Recent historical research by Bob James advances the view that trade unions were part of a broader movement of beneficent societies, including medieval guilds, Freemasons, Oddfellows, friendly societies, and other fraternal organizations.

What is Trade Union Cancellation?

A Trade union cancellation is the process by which a trade union’s legal status is terminated by the relevant regulatory authorities. This can happen due to various reasons such as non-compliance with legal requirements, mismanagement or corruption, or a lack of membership. 

The procedure for cancellation of a trade union: –

The procedure for cancellation of a trade union may vary from one country to another, but in general, it involves certain steps.

• The first step in the cancellation process is usually an investigation by the regulatory authorities to determine whether the trade union has violated any laws or regulations. This may involve a review of the union’s financial records, its activities, and its compliance with legal requirements such as filing regular reports and maintaining accurate records.
• If the investigation reveals that the trade union has violated any laws or regulations, the regulatory authorities may issue a warning or a notice of non-compliance, giving the union an opportunity to rectify any issues. The union may be required to provide additional information or documentation to demonstrate compliance with legal requirements.
• If the union fails to respond or fails to rectify the issues, the regulatory authorities may initiate proceedings to cancel the union’s legal status. This may involve a formal hearing, where the union has the opportunity to present evidence and argue its case.
• During the hearing, the regulatory authorities will consider the evidence presented by both sides and make a decision on whether to cancel the union’s legal status. If the decision is to cancel the union’s legal status, the authorities will typically issue an order or notice of cancellation, which will take effect immediately or after a specified period of time.
• The consequences of trade union cancellation can be severe for both the union and its members. Without legal status, the union will no longer be able to represent its members in negotiations with employers or to engage in collective bargaining on their behalf. Members may lose the protections and benefits that come with union membership, such as access to legal representation, health and safety protections, and collective bargaining agreements.
• To avoid trade union cancellation, trade unions must comply with legal requirements, maintain accurate records, and operate in an ethical and transparent manner. They must also ensure that they have sufficient membership to be considered representative of the workers in their industry.

Trade union cancellation is the termination of a trade union’s legal status by regulatory authorities due to non-compliance with legal requirements, mismanagement or corruption, or a lack of membership. The procedure for cancellation may involve an investigation, a warning or notice of non-compliance, a formal hearing, and an order or notice of cancellation. Trade unions must adhere to legal requirements and operate in an ethical and transparent manner to avoid cancellation and protect the interests of their members.

What is Trade Union Dissolution? And Procedure of Dissolution in Trade Union?

Trade union dissolution refers to the formal ending of a trade union’s operations, leading to the cessation of the union’s existence as an organization. The process of trade union dissolution can be initiated for various reasons, including internal conflicts, financial difficulties, the accomplishment of union goals, or changes in the economic or political environment. Trade unions play a vital role in advocating for the rights and interests of workers, and their dissolution can significantly impact workers, employers, and the wider community.

The procedure of trade union dissolution: –

• The procedure of trade union dissolution generally commences with a vote of union members to dissolve the organization. This resolution is passed through a two-thirds majority vote in a general meeting of members. The decision to dissolve a trade union is often a challenging one and could lead to extensive deliberations and discussions among members.
• After the resolution for dissolution has been passed, the union must inform the relevant authorities, such as the registrar of trade unions, of its intention to dissolve. This notification must be given within a specified period, usually 14 days (about 2 weeks), of the decision to dissolve. The notice should contain details of the reasons for dissolution, the date of the decision, and the planned date for the dissolution.
• The next step is to account for all the union’s assets and liabilities. This includes any property, money, or other assets owned by the union, as well as any debts or obligations that the union may have to employees, creditors, or other parties. It is critical to ensure that all assets and liabilities are appropriately accounted for since failure to do so can result in legal complications and financial losses.
• After accounting for all assets and liabilities, the trade union must develop a plan for the distribution or transfer of its assets. The union may transfer assets to another organization, such as another trade union or a charity, or distribute assets to members or employees. It is essential to ensure that the distribution of assets is carried out equitably and fairly and meets all legal requirements.
• The next step in the trade union dissolution process is to settle all debts and liabilities. This may include paying off outstanding debts to creditors, fulfilling any financial obligations owed to employees, or settling any other obligations the union may have. It is essential to settle all debts and liabilities before completing the dissolution process to avoid legal complications and financial losses.
• Once all legal requirements have been met, the registrar of trade unions will cancel the registration of the trade union, marking the formal end of the union’s operations and its dissolution as an organization. Any property that remains after settling debts must be disposed of according to the union’s rules.
• It is essential to prepare a report on the trade union dissolution process, which must be submitted to the relevant authorities within a specified period, usually three months, of the dissolution. This report should provide details about the reasons for dissolution, the process that was followed, and the outcome of asset distribution and debt settlement.
• If the trade union had employees, terminating their employment is an important consideration in the trade union dissolution process. The union must comply with all relevant labor laws and regulations in terminating employees, including providing notice, settling outstanding entitlements, and adhering to any relevant redundancy or severance pay requirements.

Trade union dissolution is a complex process that requires careful planning and execution. It is critical to ensure that all legal requirements are met and that the interests of members and employees are protected during the dissolution process. The dissolution of a trade union can significantly impact workers, employers, and the wider community, and it is essential to approach the process with transparency, sensitivity, and fairness.

The Change of Name in Trade Union & Procedure for Change of Name in Trade Union.

Trade unions play a significant role in advocating for workers’ rights and welfare in different industries. These organizations work to secure better wages, benefits, and working conditions for their members. At times, trade unions may consider changing their names due to various reasons such as mergers, rebranding, or a shift in focus. We will now explore the concept of changing the name of a trade union, the reasons for doing so, and the procedure for effecting the name change.

What is the Change of Name in a Trade Union?

Changing the name of a trade union refers to the process of modifying its official name or title. The name of a union often reflects its identity, history, and values. Therefore, a change in the name may signify a change in the union’s focus, vision, or direction. A union may change its name due to various reasons, such as:

1.Merger: When two or more trade unions merge, they may decide to adopt a new name that reflects their combined strengths and values. The new name may also signify a new focus, vision, or mission that aligns with the interests of the merged unions.

2.Rebranding: A trade union may decide to rebrand itself to appeal to new members, modernize its image, or redefine its vision and mission. The new name may be aimed at creating a fresh identity that resonates with the current and future members.

3.Legal Reasons: In some instances, a union may be forced to change its name due to legal or regulatory requirements. For example, if the union’s name is similar to another organization’s name, it may be required to change its name to avoid confusion or trademark infringement.

4.Expansion: As trade unions expand their membership, they may opt to change their names to reflect their broader scope and coverage. The new name may signify the union’s commitment to representing a wider range of workers and industries.

Procedure for Change of Name in Trade Union: –

The procedure for changing the name of a trade union is governed by various laws, regulations, and policies. The process is often designed to ensure that the name change is transparent, democratic, and legal. The following is a step-by-step guide to the procedure for changing the name of a trade union:

1. Conduct a Survey and Research:

Before proposing a name change, it is essential to conduct a survey and research to establish the need and relevance of the new name. The union should involve its members in the survey and seek their opinions on the proposed name. The union should also conduct research on the legal implications, availability, and appropriateness of the new name.

• Propose the New Name:

Once the union has conducted the survey and research, it should propose the new name to its members through a general meeting or referendum. The proposal should outline the reasons for the change and the benefits that the new name will bring. The proposal should also provide an opportunity for members to ask questions, express their opinions, and vote on the proposed name.

• Amend the Constitution and Rules:

After the members have approved the new name, the union should amend its constitution and rules to reflect the new name. The amendment process should follow the existing procedures for amending the constitution and rules. The union should also seek legal advice to ensure that the amendments are compliant with the law.

• Notify Relevant Authorities:

The union should notify relevant authorities such as the Registrar of Trade Unions, the Ministry of Labour, and any other relevant regulatory bodies about the name change. The union should provide the necessary documentation, such as the amended constitution and rules and the minutes of the general meeting or referendum.

• Update the Communication and Branding Materials:

The union should update its communication and branding materials, such as its website, letterheads, logos, and signage, to reflect the new name. The union should also notify its members, stakeholders, and the public about the name change through various communication channels such as press releases, newsletters, and social media platforms.

• Retain the Old Name:

The union should retain its old name for a transitional period, usually six months to a year, to allow its members, stakeholders, and the public to adjust to the new name. The union should also ensure that the old name redirects too as well.

Acts/Laws on Cancellation and Dissolution of Trade Unions and Procedures for Change of Name in India 

In India, trade unions are registered under the Trade Unions Act, 1926, which provides for the registration, cancellation, and dissolution of trade unions in the country. The act also outlines the procedure for changing the name of a registered trade union. In addition to the Trade Unions Act, there are other relevant laws that deal with these issues, such as the Industrial Relations Code, 2020, and the Trade Union Regulations, 1938.

Law on Cancellation of Registration:

The cancellation of registration of a trade union can occur if the trade union has engaged in unlawful activities or failed to comply with the provisions of the Trade Unions Act. Section 9 of the Trade Unions Act provides for the grounds on which the registration of a trade union can be canceled. The act states that the Registrar of Trade Unions may cancel the registration of a trade union if:

1. The trade union has ceased to exist or has dissolved;
2. The trade union has willfully contravened any provision of the act;
3. The trade union has violated any law relating to the registration of trade unions;
4. The trade union has been engaged in unlawful activities; or
5. The trade union has failed to submit its annual returns for two consecutive years.

The cancellation of registration of a trade union can also occur under the Industrial Relations Code, 2020. Section 45 of the code provides for the grounds on which the registration of a trade union can be canceled. The code states that the registering officer may cancel the registration of a trade union if:

1. The trade union has contravened any provision of the code;
2. The trade union has obtained registration through fraud or mistake; or
3. The trade union has willfully contravened any provision of the code.

Law on Dissolution of a Trade Union:

The dissolution of a trade union refers to the process of terminating its existence as a legal entity. Section 28 of the Trade Unions Act provides for the dissolution of a trade union. According to this section, a trade union can be dissolved by a resolution passed by a two-thirds majority of its members. The resolution must be passed at a meeting of the trade union called for that purpose, and a notice of the meeting must be sent to all members of the trade union.

The Industrial Relations Code, 2020, also deals with the dissolution of a trade union. Section 49 of the code provides for the dissolution of a trade union. According to this section, a trade union can be dissolved by a resolution passed by a two-thirds majority of its members. The resolution must be passed at a meeting of the trade union called for that purpose, and a notice of the meeting must be sent to all members of the trade union.

Law Procedure for Changing the Name of a Trade Union:

Section 23 of the Trade Unions Act provides for the procedure to be followed in changing the name of a registered trade union. According to this section, a registered trade union can change its name by passing a resolution to that effect at a meeting of the trade union. The resolution must be passed by a two-thirds majority of the members present at the meeting, and notice of the meeting must be sent to all members of the trade union.

The Industrial Relations Code, 2020, also deals with the procedure for changing the name of a registered trade union. Section 42 of the code provides for the procedure to be followed in changing the name of a registered trade union. According to this section, a registered trade union can change its name by passing a resolution to that effect at a meeting of the trade union. The resolution must be passed by a two-thirds majority of the members present at the meeting, and notice of the meeting must be sent to all members of the trade union.

Conclusion

The cancellation and dissolution of a trade union can occur due to a variety of reasons, including failure to comply with legal requirements, illegal activities or misconduct, or voluntary termination. These legal processes mark the end of the union’s existence and can have significant implications for its members and the broader labor movement.

Therefore, it is important for trade unions to take necessary steps to comply with legal requirements, such as submitting annual returns and holding regular meetings, to avoid cancellation or dissolution. Additionally, unions must ensure that they operate in a lawful and ethical manner to avoid misconduct and potential dissolution orders by the court 

Ultimately, the cancellation and dissolution of a trade union are complex legal processes that require careful consideration and adherence to legal requirements. Trade unions must understand the implications of these processes and take necessary steps to prevent them while continuing to advocate for their members and the broader labor movement.

Summary 

Trade unions are important organizations that represent workers in various industries and professions. Their primary goal is to negotiate with employers on behalf of their members, seeking better pay, benefits, and working conditions. Unions also provide legal representation and support during disputes with employers. By joining together in a union, workers gain collective bargaining power, which can lead to improved working conditions and wages. Additionally, unions engage in lobbying efforts to promote policies that benefit workers, such as minimum wage laws and workplace safety regulations. Overall, trade unions play a vital role in protecting the rights and interests of workers and have been instrumental in achieving many important workplace reforms throughout history.

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