Page 256 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 11: Trade Union Act, 1926

4. The concerned unions can recheck the verified list and forward objections, if any, to the Notes

verifi cation officer. In case of objections regarding dual membership, the officer talks to the

concerned workers and draws his own conclusions (based on personal interrogation).

5. The officer will then submit the report to the Government as well as the management of the
fi rm.

Verification, thus, is a contentious and time-consuming process. Most trade unions in India do
not maintain their membership records properly and even after several requests from the Labour
Department do not furnish membership register as well as receipts. Again, verifying common
names appearing in the Trade Union registers is not an easy task, with claims and counter-
claims coming from various quarters. Some of the unions do not agree to the secret ballot too,

which is adopted to find out the truth behind the curtain. The ‘secret ballot’ itself is a dangerous
proposition because it creates an election-like atmosphere with some leaders making promises
which they will never fulfil. The leaders may try to divide workers along caste, community,

religion, linguistic and regional lines. For short-term gains, the leaders may divide the illiterate
workers playing on sentimental and emotional issues and, in the process, damage the harmonious
relations within the unit permanently.

The Check-off System

Check-off system is, often, being advocated as a useful way of verifying the membership claims
of rival unions within a unit. In this system the membership fee is collected through the payroll at
the time of payment of wages. The amount so collected by the employer will directly go into the
account of the concerned union. The subscription fi gures of each union following the check-off
system, thus, offer reliable evidence of its membership and the same can be used to determine its
representative character or otherwise rights of a Representative Union.

The rights of Representative union under the Act are:
1. First preference to appear or act in any proceedings under the Act as the representative of
employees;

2. Right to submit a dispute for arbitration;
3. To make a special application to the Labour Court to hold an inquiry; and
4. Office-bearers of the union cannot be dismissed or discharged.

The Code of Discipline mentions the following rights of a recognised union: (a) enter into a
collective agreement with employer regarding terms of employment and service conditions
(b) collect subscription from members within the premises (c) put up a notice board within the
unit and use it for its regular announcements relating to meetings etc. (d) hold discussions with
its members inside the unit (e) discuss the grievances of its members with the management
(f) inspect any place in the undertaking where any member of the union is employed (g) fi nally,
appoint its nominees on joint consultative bodies and committees.
Multiplicity of trade unions creates problems for both the employer and the trade unions.
Therefore, recognition of a trade union as a negotiating agent is a business necessity. Sooner
a central legislation is passed and industry and business houses start dealing with recognised

unions, the better it will be. Such a device is beneficial for both the employer and the trade unions.
It provides strength, it provides opportunity for understanding and mutual appreciation and,
thus, provides opportunity for a matured employer-union relationship.

Task Do you think that trade unions in India have served the objectives for which
they were formed? Why and why not?

LOVELY PROFESSIONAL UNIVERSITY 251