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Mercantile Laws – II

Notes not apply to any registered trade union, and that the registration of any such trade union under
any such Act shall be void.
The Act is administered by the Ministry of Labour through its Industrial Relations Division.
The Division is concerned with improving the institutional framework for dispute settlement
and amending labour laws relating to industrial relations. It works in close coordination with
the Central Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets a
stable, dignified and efficient workforce, free from exploitation and capable of generating higher
levels of output. The CIRM, which is an attached office of the Ministry of Labour, is also known
as the Chief Labour Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by
the Chief Labour Commissioner (Central). It has been entrusted with the task of maintaining
industrial relations, enforcement of labour laws and verification of trade union membership in
central sphere. It ensures harmonious industrial relations through:-
 Monitoring of industrial relations in Central Sphere;
 Intervention, mediation and conciliation in industrial disputes in order to bring about
settlement of disputes;
 Intervention in situations of threatened strikes and lockouts with a view to avert the
strikes and lockouts;
 Implementation of settlements and awards.

11.1.1 Objectives of Trade Union

They aim to:

 Secure fair wages for workers and improve their opportunities for promotion and training.
 Safeguard security of tenure and improve their conditions of service.
 Improve working and living conditions of workers.

 Provide them educational, cultural and recreational facilities.
 Facilitate technological advancement by broadening the understanding of the workers.
 Help them in improving levels of production, productivity, discipline and high standard
of living.
 Promote individual and collective welfare and thus correlate the workers’ interests with
that of their industry.

11.1.2 Basic Provisions

According to the Trade 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”. The basic provisions of the Act are:-
1. The Act provides for the registration of the trade unions with the ‘Registrars of Trade Unions’
set up in different States, like the Office of Registrar (Trade Union) set up by the Government of
National Capital Territory of Delhi. For registration of a trade union, seven or more members
of the union can submit their application in the prescribed form to the Registrar of trade unions.

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