POWERS AND DUTIES OF REGISTRAR AND COLLECTIVE BARGAINING

ABSTRACT

This article will discuss and give detailed information about the trade union act of 1926, a structure in place of legislation for regulating and forming provisions for trade unions in country. Trade unions are basically a group of workers with common goals to accomplish. Trade unions eventually formed as industrialization and modernization began to take hold. Trade unions continued to expand as a result of the worsening economic situation and low wages.

The registrar role is one of the most crucial in this regulatory framework. Registrar is a significant administrative role with a variety of authority and responsibilities essential to Trade union’s smooth operation. In this article, we will discuss the powers and duties rest with the registrar to register trade unions under the trade union act, 1926 that protect the rights of employees and help them in the collective bargaining, a process that helps employees negotiating for better terms.

Collective bargaining and trade unions are not synonymous to each other rather they go hand in hand. While collective bargaining is the procedure of negotiating for improved employment terms and working conditions, unions are established by employees to advocate for their rights.

KEYWORDS-

trade union, registrar, powers of registrar, collective bargaining, workers, working conditions, legislation, industrialization, administration.

INTRODUCTION TO TRADE UNIONS

Some organizations were established by Indian laborers at the start of the 20th century in an effort to strengthen their negotiating position regarding pay and working conditions. These were comparable to modern-day Indian trade unions. Due to the requirement for individual unions’ activities to be coordinated, the trade union movement got its start in India following the end of World War I. Over time, the movement methodically expanded to practically all industrial centers and was incorporated into India’s industrial process. During this time, several trade unions were established, including the Madras Labour Union, one of the first unions to be formed, was established in 1918. Since then, trade unions in India have gone a long way. Over 84,642 trade unions are currently registered in India, and there are an uncountable number of unregistered unions spread throughout a wide range of industries.

Towards the end of the year of 1925, the growth of trade unions was ultimately increased. The employees demanded security against their rights and a mechanism that deals with finalization and avoidance of industrial disagreements. The ongoing disputes and disagreement lead to formation of THE TRADES UNION ACT, 1926.

According to section 2 (h) of THE TRADES UNION 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[1].

THE REGISTRAR’S APPOINTMENT

Section 2(f) of THE TRADES UNION ACT, 1926 provides a definition of registrar. (I) a Registrar of Trade Unions appointed by the appropriate Government under section 3, and includes any 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[2].

Section 3 (1) of THE TRADES UNION ACT, 1926,states that appropriate government shall appoint a person as registrar of trade union for each state[3]. It further states that the appropriate Government may designate as many Additional and Deputy Registrars of Trade Unions as it deems suitable in order to carry out and exercise the Registrar’s powers and duties under the supervision and guidance of the Registrar. This Act as it may, by order, establish and specify the geographical boundaries that each such Additional or Deputy Registrar shall use to carry out the duties and exercise the authority granted to them. For the purposes of this Act, an Additional or Deputy Registrar shall be deemed to be the Registrar in relation to the Trade Union in any area where the Additional or Deputy Registrar exercises and performs the duties and powers of a Registrar in conjunction with the Trade Union registered office.

POWERS AND DUTIES OF REGISTRAR

POWER TO CALL

According to section7 of the trade union act, 1926, registrar has a power or authority to demand more information and to demand a name change.

In order to confirm that any application conforms with section 5 requirements or that the Trade Union is eligible for registration under section 6, the Registrar may request additional information. If this information is not provided, the Registrar may refuse to register the Trade Union.

The Registrar will require the people applying for registration to change the name of the trade union stated in the application and will not register the union until such change has been made if the proposed name for a trade union is the same as the name under which any other existing trade union has been registered or if the Registrar believes that the proposed name is so similar to the proposed name that it is likely to mislead the public or the members of either trade union.

DUTY TO REGISTER THE TRADE UNION

According to section 8 of the trades union act, 1926, registrar after confirming that the Trade Union has complied with all registration requirements outlined in this Act, will register the Trade Union by recording the details of the Trade Union in a register that will be kept in a format that may be prescribed by trade union mentioned in the declaration that was submitted with the registration application. In order to complete the registration process, the Registrar enters the relevant information from the Trade Union registration application into the designated register as specified by the Act.

In the case of O.N.G.C. Workmen’s Association v. State Of West Bengal And Ors[4], while the Registrar has quasi-judicial authority over the registration and cancellation of trade unions, the Calcutta High Court made it clear that the Registrar’s duties regarding the modification of trade union office bearers under Section 8 and Section 28 of the Trade Union Act, 1926, are administrative in nature. When two opposing factions claim to be union officers, the Registrar’s investigation and subsequent ruling are considered administrative measures.

In the case of Inland seam navigation workers union[5], the workers’ union submitted a registration application to the registrar. But the registrar rejected the application, using the justification that the stated goals are, for all intents and purposes, illicit.

It was held that, According to the court, the registrar’s responsibilities include reviewing the application and considering the reasons the union was established. The registrar is responsible for registering the union if the purposes for registration align with the act and all rules and regulations are followed accordingly.

DUTY TO PROVIDING CERTIFICATE OF TRADE UNION REGISTRATION

According to section 9 of the trade union act, 1926, When a Trade Union is registered under Section 8; the Registrar issues a certificate of registration in the format specified by the Act. This certificate serves as definitive proof that the Trade Union has been properly registered.

Examining applications for trade union registration that are submitted to him is the Registrar’s main duty. The Registrar has the power to authorize registration and issue a certificate of registration, but only in the event that the Trade Union complies with the requirements of the Trade Union Act, 1926. It is important to remember that the Registrar is not authorized by the Trade Union Act, 1926, to declare that the election of union office bearers is unlawful.

POWER OF CANCELLATION OF CERTIFICATE OF TRADE UNION

According to section 10 of the trade union act of 1926, The Registrar has the authority to remove or cancel a Trade Union’s certificate of registration if ,

the Registrar determines that the certificate was obtained through deception or error
the Trade Union has dissolved
it has intentionally broken any law after receiving notice from the Registrar, or
That it has permitted any rule to remain in effect, which is incompatible with any such clause, or has repealed any regulation making provisions for any subject for which section 6 is necessary.

As long as the Trade Union is given written notice by the Registrar at least two months in advance, outlining the reasons for the proposed withdrawal or cancellation of the certificate, before any action is taken other than at the Trade Union’s request.

In the case of Coromandal Cement Factory Employees Union v Deputy Registrar of Trade Union and Deputy Commissioner of Labour, Kurnool and others[6], The court decided that even though the Registrar has the authority to revoke a Trade Union’s registration for willful violations of any Act provision, in order for the registration to be canceled, a show-cause notice must be sent out outlining the reasons for the cancellation and providing two months’ notice.

POWER OF THE REGISTRAR TO REVIEW TRADE UNION AUDITED STATEMENTS

According to section 28 of the trade union act, 1926, the registrar is entitled to get yearly audited statements detailing all income, outlays, assets, and liabilities of Trade Unions that are registered with the Registrar. These statements must be presented in the correct format and cover the year that ends on December 31st, at the latest.

Trade unions must also provide the Registrar with a copy of the rules they have changed as well as a statement detailing any other changes, they have made to them during the year. Within fifteen days of their passage, any modifications to the Trade Union’s regulations must be reported to the Registrar.

POWER OF REGISTRAR TO RECORD THE DISSOLUTION OF TRADE UNION

According to section 27(1) of the trade union act, 1926, when a registered trade union is dissolved, a notification of the dissolution signed by the union’s secretary and seven members must be given to the registrar within fourteen days of the dissolution. If the registrar is satisfied that the dissolution has been carried out in compliance with the Trade Union’s regulations, and it will take effect on the registration date.

POWER OF REGISTRAR TO DISTRIBUTE FUNDS

According to section 27(2) of the trade union act, 1926, In the event that a registered trade union dissolves and its bylaws do not specify how the union’s assets should be distributed to its members, the Registrar will allocate the funds among the members by any prescribed method.

POWER OF THE REGISTRAR TO AMALGAMATE OR CHANGE THE NAME OF THE TRADE UNION

According to section 25 of the trade union act, 1926, Every name change and amalgamation must be announced in writing to the Registrar and, if the combined Trade Union’s headquarters is located in a different State, to the Registrar of that State.

The Registrar shall refuse to register the change of name if the proposed name is the same as that by which any other existing Trade Union has been registered or if the Registrar believes that the proposed name is so similar to the existing name that it would be likely to mislead the public or the members of either Trade Union. If the Registrar determines that the Act’s name-change requirements have been met, he or she will record the name change in the register mentioned in section 8; the name change will become effective on the date of registration.

If satisfied that the provisions of this Act regarding amalgamation have been followed and that the Trade Union formed thereby is entitled to registration under section 6, the Registrar of the State in which the amalgamated Trade Union’s head office is located shall register the Trade Union in the manner provided in section 8, and the amalgamation shall take effect from the date of such registration.

COLLECTIVE BARGAINING

As per the Supreme Court (“SC”), collective bargaining is “the process by which disagreement as to terms of employment is settled peacefully by agreement rather than force.”10 It is a procedure wherein the terms of employment and working conditions are discussed and negotiated between the employer and employees. Trade unions typically represent employees when it comes to voicing complaints to management and the company about pay and working conditions. The Industrial Disputes Act, 1947 (“IDA”) states that it is unfair labor practice to refuse to bargain collectively in good faith with the employer. This is a generally successful strategy because it usually prompts businesses to take steps to address the concerns of their employees.

Employers and workers represented by trade unions enter into collective bargaining agreements as part of the collective bargaining mechanism. These agreements are usually structured as memorandums of settlements, listing the various clauses that regulate the relationship between the employers and the workers represented by trade unions.

TRADE UNION AND COLLECTIVE BARGAINING

Today, collective bargaining has become more important than individual bargaining. The fact that employees of a company could be reluctant to speak up for fear of losing their jobs is one of the reasons collective bargaining is required. The labor market’s functioning is changed by the collective nature of trade unions. The interests of the marginal worker—who is typically youthful and marketable and may be drawn to other enterprises while ignoring those who are older and less marketable—are the company’s top priority in a non-unionized context. Put simply, the interests of people who are not likely to quit the company are not taken into account. But in a unionized workplace, the union takes into account the wishes of all employees while representing them at the bargaining table, ensuring that individuals who are unlikely to leave the company are also represented.

Collective bargaining encourages communication and understanding between employers and workers. It fosters mutual respect and trust between the two parties and provides a place for honest and beneficial communication. This could lead to a more enjoyable work environment, which is good for the company and the workers. In conclusion, collective bargaining—a crucial facet of Indian labor law—requires the existence of trade unions.

CONCLUSION

An employer and employee can have a positive working relationship because of trade unions. Workers feel that their rights are properly safeguarded because of trade unions, and they can always put pressure on their employers if they believe that they are being overworked.

In addition, the Trade Union Act of 1926’s registration requirement for unions aided in their accreditation and recognition. The Registrar plays a crucial role in the management and supervision of Trade Unions in India, having been endowed with considerable powers and responsibilities under the Trade Union Act of 1926. The Registrar’s diverse responsibilities include registering, amending, dissolving, and inspecting Trade Unions to make sure they adhere to the Act’s requirements. The Registrar is authorized by law to approve or disapprove registration applications, taking into account several aspects like the uniqueness of the name and compliance with rules. They are also essential in allowing trade union name changes and managing amalgamations. When dissolution occurs, the Registrar records the occurrence and, if required, manages the distribution of funds. The Registrar also oversees Trade Union finances, checking audited records to guarantee accountability and transparency.

Historically, the primary purpose of trade unions in India has been to engage in collective bargaining for financial advantage. Nonetheless, trade unions today have a significant impact on banking, healthcare, cultural initiatives, employee welfare programs, and raising awareness through member education and training. Conversely, due to increased competition, the main managerial goals in collective bargaining in recent years have been to lower labor costs, boost output or productivity, and improve organizational flexibility (e.g., multi-skilling/multi functioning, worker grade changes, etc.).

Collective bargaining and trade unions are crucial. When bargaining with employers, they represent the voice of all employees. The goal of trade unions is to provide workers with benefits such as job security, comfortable working conditions, and fair compensation. They are also crucial in protecting worker rights and stopping any form of harassment, discrimination, or worker exploitation.

REFERENCES

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Law Bhoomi, https://lawbhoomi.com/powers-and-functions-of-registrar-under-trade-union-act/,(last visited on 5january 2024)
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[1] THE TRADES UNION ACT, 1926, §2(h), No.16, Acts of Parliament, 1926(India).

[2] THE TRADES UNION ACT, 1926, §2(f), No.16, Acts of Parliament, 1926(India).

[3] THE TRADES UNION ACT, 1926, §3(1), No.16, Acts of Parliament, 1926(India).

[4] O.N.G.C. Workmen’s Association v. State of West Bengal, 1988 II CLR 127.

[5] Inland seam navigation workers union vs. state, 1936 AIR Cal 57.

[6] Coromandal Cement Factory Employees Union v Deputy Registrar of Trade Union and Deputy Commissioner of Labour, Kurnool and others, 2000 (6) ALD 341.

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