AMALGAMATION OF REGISTERED TRADE UNION: PROCEDURE

AND EFFECTS

By Thaneshwar Jangid1

Introduction:

Trade Union as per Sidney and Webbs is a “Continuous association of wage earners for the purpose
of maintaining and improving the conditions of their working lives.” Trade Unions are association
of workers and are formed with the intention of protecting the workers and also to improve the
workers’ condition. A trade union is a combination of persons. Whether temporary or permanent,
primarily for the purpose of regulating the relations between workers and employers or between
workers for imposing restrictive conditions on the conduct of any trade or business and includes
the federations of two or more trade unions as per Sec. 2 (6) Trade Unions Act, 1926. In other
words, a Trade Union is an organization of workers, acting collectively, who seek to protect and
promote their mutual interests through collective bargaining. A union usually represents members
throughout the industry or occupation and helps in sharpening the management efficiency and
performance while protecting the rights and interests of the members. Trade Union is a kind of
political institution within the internal managerial structure.

As per Naval Hormusji Tata, the objectives behind establishment and promotion of Employer’s
Association are:

 To promote collective bargaining.

 To develop healthy and stable industrial relations.
 To bring employer’s viewpoint to the notice of the Government, and
 To represent employers at national and international forums.

1
B.Com LL.B(H) – 7th Semester
Amalgamation of Trade Unions:

Amalgamation of Trade Unions means merger of two or more trade unions into one trade union.
The amalgamation of trade unions is dealt by the provisions of Section 24 to 26 of Trade Union
Act, 1926. Section 24 of the act makes provisions for the amalgamation and Section 25 lays down
the procedure for the amalgamation of the trade union and effects to such amalgamations are dealt
under Section 26 of the Trade Union Act, 1926.

Procedure for Amalgamation of Registered Trade Unions:

 As per S. 24 of Trade Union Act, any two or more trade unions may become amalgamated
together as one trade union with or without dissolution or division of the funds of such
trade unions or either or any of them.
 Provided that the votes of at least one-half of the members of each or every such trade
union entitled to vote are recorded, and that at least sixty percent of the votes are recorded
in the favor of the proposed amalgamation.
 As per the S.25 of the act, the notice of such amalgamation, signed by the secretary and
seven members of the each trade unions, should be sent to the registrar of the state where
the head office of the amalgamation trade union is to be located.
 Name of the resultant amalgamated Trade Union should not match with the other
previously operative Trade Union in the country.
 If the registrar is satisfied that all the provisions of this act have been fulfilled and the
amalgamated trade union is entitled to registration under S. 6, he will register the new
trade union under S. 8 and amalgamation will take effect from the date of the registration.

Effects of the Amalgamation:

According to Section 26 of The Trade Unions Act, 1926 Change of name of a registered trade
union does not affect the rights and obligations of the Trade Union or render defective any legal
proceeding by or against the Trade Union. Similarly, Amalgamation of registered trade unions
shall not prejudice any right of the Trade Unions or any right of Creditors.
Dissolution of Trade Union:

As per S.27 of the act, following are the provisions for the dissolution of trade union:

 Notice of dissolution signed by secretary and 7 member of the Trade Union, should be sent
to the Registrar of the Trade Union within 14 days from the date of the dissolution of the
Trade Union.

 If registrar satisfies with provisions and rules followed by the members of the Trade Union
for dissolution, he will confirm the dissolution.

 Funds shall be divided by the Registrar among its members if there is no rules mention by
the Trade Union in distribution of the funds.

Returns to the Registrar:

As per S. 28 of the act, every registered Trade Union shall have to submit annually to the Registrar
a general statement of all receipts and expenditures at the end of the year. However, it shall be
noted that Calendar year is followed in accounting under Trade Union Act, 1926. Such a statement
shall be accompanied by another statement containing assets and liabilities of Trade Union.

Also, a copy of every alteration made in the rules of the registered Trade Union shall be sent to the
registrar within 15 days of making such alterations.