POWERS AND DUTIES OF THE REGISTRAR AND COLLECTIVE BARGAINING: AN INTERSECTION OF LABOUR LAW AND UNION REGULATION

This article is written by Shubhangi Baranwal of 3^rd Year of LL.B of K. C. Law College, University of Mumbai, an intern under Legal Vidhiya

ABSTRACT

This article examines the powers and duties of the Registrar of Trade Unions in India and their significant impact on collective bargaining processes. By analyzing the statutory framework established under the Trade Unions Act of 1926, the article highlights the Registrar’s role in ensuring legal compliance, transparency, and effectiveness of trade unions. It discusses how the Registrar’s responsibilities, including registration, certification, and regulation of trade union funds, directly influence a union’s capacity to negotiate effectively with employers. The study also explores the consequences of the Registrar’s decisions, such as registration cancellation, on the bargaining power of trade unions. By integrating relevant case law and comparing international practices, this article provides a comprehensive understanding of how regulatory oversight can affect industrial relations and collective bargaining in India.

KEYWORDS

Registrar of Trade Unions, Collective Bargaining, Trade Unions Act, Industrial Disputes Act, Labour Law, Union Regulation, Industrial Relations, Trade Union Registration, International Labour Standards

INTRODUCTION

The Trade Union Act of 1926, a landmark in Indian legislation, established the legal framework for organizing and regulating trade unions in the country. Its primary purpose was to strengthen the relationship between employers and employees by assisting in the resolution of their disputes. The Act achieves this by providing necessary provisions for the registration of trade unions and defining the law relating to registered Trade Unions. Thus, enabling them to represent employees and voice their grievances and concerns to employers. This legal recognition empowers unions to present a united front on behalf of workers.

The concept of trade unions plays a significant role in industrial relations, providing workers with a collective voice to negotiate terms of employment, wages, working conditions, and benefits. The legal framework governing India’s trade unions is primarily based on the Trade Unions Act, 1926. The Act outlines the powers and duties of the Registrar of Trade Unions, a critical position for ensuring that trade unions operate within the bounds of the law. By monitoring registration, compliance, and transparency, the Registrar ensures that trade unions serve their intended purpose of representing workers fairly and legally.

In Section 2(h)[1] of the Trade Unions Act, 1926, a trade union is defined 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”.

Section 2(f)[2] of the Trades Union Act, 1926 defines registrar as (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.

At the same time, collective bargaining, a key component of industrial relations, allows trade unions to negotiate on behalf of their members with employers to establish fair working conditions, resolve disputes and reach acceptable outcomes. The Registrar’s role in overseeing the legality and function of trade unions directly influences their ability to engage in successful collective bargaining.

STATUTORY POWERS AND DUTIES OF THE REGISTRAR OF TRADE UNIONS

Registration of Trade Unions

The Registrar of Trade Unions plays a pivotal role in ensuring the legal standing of a union by overseeing the registration process. Section 6 of the Trade Unions Act, 1926 mandates the conditions under which a trade union may be registered. According to the Act, a trade union must apply in writing to the Registrar, providing necessary details such as:

• Name of the Union
• Objects of the Union
• List of the members of the Trade Union making the application
• General funds of the Trade Union and its usage
• Names of office bearers along with their qualifications, etc

Section 8 of the Trade Unions Act, 1926 provides that “on satisfaction of all the requirements provided under the act for the purpose of registration of trade union, the Registrar shall register the union by entering its name, along with the relevant particulars from the accompanying statement, into the prescribed register”.

Once registered, the trade union gains the status of a legal entity, empowering it to negotiate on behalf of its members and represent workers in disputes with their employers. The status granted under Section 13 of the Act provides trade unions with immunity from certain legal actions, particularly regarding tortious liability, which enhances their negotiating position in collective bargaining processes.

The legal registration of a trade union offers statutory protections to both the union and its members, such as the immunity under Section 17 of the Act, which protects members from prosecution for conspiracy in furthering a trade dispute, a key aspect when collective bargaining escalates into industrial action, such as strikes.

InCalcutta Port Trust Union v. Haldia Shore Ship and Transport Handling Workers Co-Operative Construction Society Ltd. and another (2013)[3], the High Court of Calcutta stated that“any trade union that is not registered under the Trade Unions Act cannot be treated as a trade union under the Industrial Disputes Act, 1947 and that if a Trade Union is registered under any other act then such registration shall be void.”

Thus, if workers wish to establish an association to function as a trade union, they are required to register the union in accordance with the Trade Union Act, 1926.

Certificate of Registration

Section 9 of the Trade Union Act, 1926 mandates that following the successful registration of a trade union under Section 8, the Registrar is required to issue a Certificate of Registration to the trade union as conclusive evidence of its registration in a format prescribed under the act. The issuance of this certificate is significant, as it provides the trade union with a legal identity and the authority to act as a representative body of its members.

This certificate is pivotal in protecting the legal status of trade unions by providing them with formal recognition, which allows them to exercise rights such as engaging in collective bargaining, representing workers’ interests, and other activities aimed at promoting the welfare of their members. Moreover, the certificate acts as a safeguard against disputes regarding the union’s validity, making it an essential legal document for the union’s operations and activities.

Cancellation of Registration

The Registrar has the authority to cancel the registration of a trade union under Section 10 of the Trade Unions Act, 1926. If a trade union fails to comply with the Act’s provisions, engages in unlawful activities, or commits fraud or misrepresentation, the Registrar may revoke its registration. The cancellation of a union’s registration has significant consequences, as it removes the union’s legal standing and prohibits it from representing workers in collective bargaining.

Without legal registration, the union loses its bargaining power, as employers are no longer obligated to negotiate with an unregistered body. The Registrar’s power to cancel registration thus serves as a critical control mechanism, ensuring that only unions operating within the law can engage in collective bargaining.

In Saraswat Co-op. Bank Employees’ Union v. State of Maharashtra and Others, 1996 L.A.B. I.C. 1700[4], the Court ruled that the Registrar can only cancel a trade union’s registration under Section 10 of the Trade Unions Act, 1926, if there is sufficient evidence proving that the union has wilfully violated any provision of the Act or its Rules. Without establishing intentional contravention, the Registrar lacks the authority to revoke the registration. This decision emphasizes the necessity of proving intent before such a measure can be taken.

Change of Name or Amalgamation of Trade Union

Under Section 25[5] of the Trade Unions Act, 1926, formaking any change in the name of trade unions or for the amalgamation of trade unions, a notice has to be submitted to the Registrar. The said notice must be in writing and signed by the Secretary and seven members of the trade union in case of change of name and in case of amalgamation it must be signed by the Secretary and seven members of each trade union involved.

The Registrar, upon receiving written notice, may register the changes if satisfied that the provisions of the Act regarding name changes and amalgamation of trade unions have been complied with. But if the Registrar is not satisfied with the notice or determines that the proposed name matches that of an existing Trade Union, they may reject the name change or amalgamation. Additionally, for an amalgamation, the Registrar of the state where the newly merged Trade Union is based must ensure that the Trade Union complies with the requirements of the Act before approving the registration.

Regulation of Trade Union Funds

The Registrar’s role extends to the regulation of trade union funds. Unions are required to use their funds for lawful purposes, such as supporting workers during strikes, negotiating collective agreements, and improving labour conditions. The Registrar monitors how unions handle their finances to ensure that they are not misused.

Proper management of trade union funds is essential for maintaining the credibility of the union, both internally and in negotiations with employers. Unions that misuse funds or fail to provide transparency may lose the trust of their members and the wider labour community. By overseeing union finances, the Registrar ensures that funds are used in a way that supports the union’s objectives, including collective bargaining.

Collection of Annual Returns and Reports

As per Section 28 of the Trade Unions Act, 1926, registered trade unions must submit annual returns detailing their financial status, membership numbers, and activities. The Registrar collects and reviews these returns to ensure that unions remain compliant with the law and transparent in their operations.

By requiring unions to submit annual returns, the Registrar promotes accountability and transparency within unions. Unions that fail to submit returns or provide false information risk having their registration cancelled, weakening their bargaining power.

COLLECTIVE BARGAINING: PROCESS AND IMPORTANCE

Collective bargaining is a process of negotiating between management and workers represented by their representatives for determining mutually agreed terms and conditions of work which protect the interest of both workers and the management. It serves as a platform for workers to collectively voice their concerns and seek improvements in areas such as wages, working hours, benefits, job security, and workplace safety.

At its core, collective bargaining involves discussions on various employment-related issues, including wages, working hours, benefits, health and safety, job security, and other terms of employment. The agreements reached through collective bargaining are typically formalized in a collective bargaining agreement, which serves as a contract between the employer and the employees.

The significance of collective bargaining lies in its ability to foster cooperative relationships between workers and employers. It provides a structured framework for resolving conflicts, addressing grievances, and promoting industrial harmony. By engaging in collective bargaining, employees gain a collective voice, which can lead to improved working conditions and more equitable compensation.

Legal Framework for Collective Bargaining

Collective bargaining is primarily governed by the Industrial Disputes Act, 1947 and the Trade Unions Act, 1926. The Industrial Disputes Act, 1947 provide a framework for resolving industrial disputes through negotiation between employers and trade unions and the Trade Unions Act, 1926 provides framework for the formation and registration of trade unions. The role of the Registrar in ensuring that trade unions are legally registered and compliant with the law is crucial for the collective bargaining process.

Stages of Collective Bargaining

• Preparation: The trade union collects grievances and formulates demands on behalf of its members. This stage is critical because it sets the agenda for negotiations with the employer.
• Representation: Workers are typically represented by a union, giving them a stronger position to negotiate compared to individual bargaining.
• Negotiation: The union and employer engage in discussions to reach an agreement. The success of these negotiations depends on the strength and legitimacy of the union, which is in part ensured by the Registrar’s oversight.
• Agreement: If the parties reach an agreement, it becomes a legally binding contract that outlines the terms of employment, wages, benefits, and working conditions.
• Implementation: The trade union monitors the employer’s compliance with the agreement to ensure that the terms are upheld.

Importance of Collective Bargaining

Collective bargaining plays a key role in improving labour conditions, resolving industrial disputes, and maintaining industrial peace. Through collective bargaining, workers can negotiate with employers to achieve better wages, working conditions, and benefits. The process also allows for the peaceful resolution of disputes, preventing strikes and lockouts, which can harm both workers and employers. It helps to foster a peaceful and stable relationship between the workers and the organisation.

In Workmen of Hindustan Lever Ltd. v. Management of Hindustan Lever Ltd., AIR 1984 SC 516[6], the Supreme Court held that collective bargaining agreements must be upheld as valid contracts. This case reinforced the binding nature of collective agreements and emphasized the importance of trade unions in protecting workers’ rights through negotiations.

INTERSECTION OF THE REGISTRAR’S POWERS AND COLLECTIVE BARGAINING

The role of the Registrar in overseeing trade unions directly impacts collective bargaining. A legally registered trade union, recognized by the Registrar, has the authority to engage in collective bargaining on behalf of workers.

Ensuring Legal Compliance

The Registrar’s powers are critical for ensuring that trade unions comply with legal requirements. Compliance is important because only legally registered unions can participate in collective bargaining. The Registrar’s role in enforcing compliance helps maintain the integrity of the bargaining process, ensuring that both parties operate within the law.

When unions comply with the legal requirements set out by the Trade Unions Act, 1926, they are more likely to be accepted by employers as legitimate representatives of workers. Legal compliance fosters trust in the negotiation process and helps avoid industrial disputes. The Registrar’s powers ensure that unions adhere to these legal standards, enhancing their ability to engage in effective collective bargaining.

Impact of Cancellation on Bargaining Power

Section 10 of the Trade Unions Act, 1926 grants the Registrar the authority to cancel the registration of a trade union. Grounds for cancellation include:

• Failure to adhere to the statutory requirements laid out in the Act
• Involvement in unlawful activities
• Instances of fraud or misrepresentation

The cancellation of a trade union’s registration has serious ramifications. Without registration, a trade union loses its legal capacity to engage in collective bargaining, thereby weakening its position in negotiations with employers. Section 11 also provides unions with the opportunity to appeal against the cancellation, ensuring a fair process.

INTERNATIONAL PERSPECTIVE ON COLLECTIVE BARGAINING AND THE ROLE OF REGISTRAR

India’s legal framework regarding trade unions aligns with several global labour standards, particularly those set by the International Labour Organization (ILO). However, India has not ratified ILO Convention No. 98, also known as the Right to Organise and Collective Bargaining Convention, 1949. This convention highlights the significance of workers’ rights to organize and engage in negotiations for improved working conditions, yet India’s domestic approach to collective bargaining reflects similar principles through its own legislative measures.

The Role of the ILO and its Importance

The International Labour Organization (ILO), a United Nations agency, was established in 1919 to advocate for social justice and globally recognised labour rights. Through its conventions, the ILO sets international standards, urging countries to incorporate these into domestic legal systems.

One of the key areas the ILO promotes is collective bargaining, where employees and employers negotiate employment terms such as pay, working hours, and other conditions. By advocating for such negotiations, the ILO aims to foster fair labour practices and mitigate industrial disputes. The International Labour Organization (ILO) considers collective bargaining a fundamental right, which is established in its Constitution and reaffirmed in the 1998 ILO Declaration on Fundamental Principles and Rights at Work[7]. While India has not ratified Convention No. 98, it recognizes collective bargaining as an important tool in industrial relations, and this is reflected in its labour laws, such as the Industrial Disputes Act, 1947, and the Trade Unions Act, 1926.

The Right to Organise and Collective Bargaining Convention, 1949 (No. 98)[8]

The Right to Organise and Collective Bargaining Convention, 1949 (No. 98) is a core labour convention that seeks to protect union rights and the process of collective bargaining. The convention emphasizes protecting workers from anti-union discrimination and promoting voluntary negotiations between employers and workers.

Key Elements of Convention No. 98:

1. Protection Against Discrimination Based on Union Activity: Workers must not face prejudice, such as being dismissed or discriminated against, due to union membership or participation in union-related activities.
2. Autonomy of Workers’ Organizations: The independence of workers’ organizations must be guaranteed, and employers should not interfere in the formation or activities of trade unions.
3. Encouragement of Collective Bargaining: The Convention promotes voluntary collective bargaining, aiming for unions to negotiate better working conditions and pay structures with employers.

India’s Approach in the Absence of Ratification

Despite not ratifying Convention No. 98, India’s labour laws still reflect many of the principles laid out by the ILO. The Trade Unions Act, 1926, and the Industrial Disputes Act, 1947, provide the legal framework for workers to form unions, seek recognition, and engage in collective bargaining. The Registrar of Trade Unions plays a key role in ensuring that these unions are legally registered, which grants them the authority to participate in negotiations with employers.

The main reason for India’s non-ratification of these conventions is due to legal restrictions placed on government employees under Indian law. According to the Department of Personnel & Training (DoPT), ratifying these conventions would require extending certain rights to government workers, such as the right to strike, publicly criticize government policies, freely receive financial contributions, and join foreign organizations—rights that are currently restricted. India’s approach is to ratify ILO conventions only when its domestic laws fully comply with the conventions’ requirements. While the government has taken steps to explore the possibility of ratifying Convention No. 98, including holding discussions with relevant stakeholders, no definitive timeline has been set for this. The matter continues to be reviewed by the Tripartite Committee on Conventions (COC), with attention to international practices.

Nonetheless, India continues to align itself with several international standards on workers’ rights through domestic legislation and regulatory bodies. By balancing its unique socio-economic conditions with international labour norms, India provides a legal framework that encourages collective bargaining while maintaining regulatory oversight through the office of the Registrar of Trade Unions.

Global Comparisons and Relevance

Many other countries have adopted frameworks similar to India’s in compliance with ILO standards. For instance, in the United Kingdom, the Certification Officer plays a role similar to the Registrar of Trade Unions, overseeing union compliance with regulations. Similarly, Germany and Sweden maintain strong legal frameworks to uphold the principles of collective bargaining, ensuring workers’ organizations are independent and free from employer influence.

However, in many developing nations, despite ratifying similar conventions, enforcement remains weak due to economic pressures and inadequate legal infrastructure. Nonetheless, the ILO continues to advocate for more robust global adherence to its standards, emphasizing the importance of freedom of association and fair labour practices.

CONCLUSION

In conclusion, the powers and duties of the Registrar of Trade Unions play a crucial role in regulating the functioning of trade unions, which directly impacts the practice of collective bargaining. The Registrar ensures that trade unions operate within the framework established by the Trade Unions Act, 1926, thereby ensuring legal compliance, accountability, and transparency. Collective bargaining, a fundamental right of trade unions, depends on the union’s legal status, which is overseen and regulated by the Registrar. Through the registration process, financial oversight, and the ability to cancel registrations, the Registrar ensures that only legally compliant and transparent unions engage in negotiations with employers. This interplay between the Registrar’s powers and collective bargaining strengthens industrial relations by fostering trust and minimizing industrial disputes. Thus, the Registrar serves as a gatekeeper to maintain balance in the industrial ecosystem, ensuring that workers’ rights are protected while promoting industrial harmony.

REFERENCES

1. Trade Unions Act, No. 16 of 1926, INDIA CODE, available at https://www.indiacode.nic.in/bitstream/123456789/13322/1/trade_unions_act_1926.pdf, (last visited on 8 September 2024).
2. Industrial Disputes Act, No. 14 of 1947, INDIA CODE, available at https://www.indiacode.nic.in/bitstream/123456789/17112/1/the_industrial_disputes_act.pdf, (last visited on 8 September 2024).
3. Indian Kanoon, https://indiankanoon.org/doc/199476381/, (last visited on 8 September 2024).
4. ILO, C098 – Right to Organise and Collective Bargaining Convention, 1949 (No. 98), https://normlex.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C098, (last visited on 8 September 2024).
5. ILO, ILO Declaration on Fundamental Principles and Rights at Work (1998), https://www.ilo.org/ilo-declaration-fundamental-principles-and-rights-work/about-declaration/text-declaration-and-its-follow, (last visited on 8 September 2024).
6. ILO Fundamental Conventions, Press Information Bureau Government of India Ministry of Labour & Employment, (24 July 2017), https://pib.gov.in/newsite/PrintRelease.aspx?relid=168889, (last visited on 8 September 2024).
7. Aishwarya Agrawal, Powers and Functions of Registrar Under Trade Union Act, Law Bhoomi, (September 9, 2023), https://lawbhoomi.com/powers-and-functions-of-registrar-under-trade-union-act/#:~:text=Section%208%20of%20the%20Trade,the%20Trade%20Union%20Act%2C%201926, (last visited on 8 September 2024).
8. Mishu Jain, Powers and Duties of Registrar and Collective Bargaining, Legal Vidhya, (January 9, 2024), https://legalvidhiya.com/powers-and-duties-of-registrar-and-collective-bargaining/#_ftnref4, (last visited on 8 September 2024).
9. Sonal Srivastava & Naveen Talwar, Registration of trade unions under the Trade Unions Act, 1926, Blog ipleaders, (May, 16, 2023), https://blog.ipleaders.in/register-trade-union-trade-unions-act-1926/#:~:text=and%20Others%20(2013)%2C%20the,the%20Trade%20Union%20Act%2C%201926, (last visited on 8 September 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] Calcutta Port Trust Union vs Haldia Shore Ship and Transport Handling Workers Co-Operative Construction Society Ltd. and Another, (2013) 3 LLJ 360

[4] Saraswat Co-op. Bank Employees’ Union v. State of Maharashtra and Others, 1996 L.A.B. I.C. 1700

[5] The Trades Union Act, 1926, §25, No.16, Acts of Parliament, 1926(India).

[6] Workmen of Hindustan Lever Ltd. v. Management of Hindustan Lever Ltd., AIR 1984 SC 516

[7] ILO Declaration on Fundamental Principles and Rights at Work (1998)

[8] Right to Organise and Collective Bargaining Convention, 1949 (No. 98)

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