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trade unIons In IndIa 2012 LABOUR BUREAU MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA CHANDIGARH/SHIMLA www.labourbureau.gov.in PREFACE Trade Unions have proliferated due to rapid economic development and development in particular. The setting of industrial units involving wide spread use of machinery, changes in working and living environment of workers, concentration of industries in large towns have brought the workers together to maintain and improve their bargaining power and hence their employment conditions. The first organized Trade Unions in India named as the Madras Labour Union was formed as early as 1918. Since then, a large number of Unions came up in almost all the industrial centers of the country. The government of India passed the “Trade Unions Act,1926” to regulate conditions governing the registration of Trade Unions, obligations imposed on a registered Trade Unions and right and liabilities there of. The Rules Framed under the “Trade Unions Act,1926 impose obligation on the registered Trade Unions (Workers & Employers) to submit annual statutory return in the prescribed format to the Registrar of their respective States/ Union Territories. These State/U.T. Authorities in turn furnish the consolidated data in respect of the entire State/U.T. to the Labour Bureau. The Labour Bureau compiles and disseminates these statistics at All India level. The present biennial review presents comprehensive statistics on the working of the Trade Unions Act, 1926 during 2012. It is based on the Annual Returns received from the Registrar of Trade Unions of the respective States/Union Territories. I am thankful to the Registrar of Trade Unions of all the responding State Government/Union Territory without, whose support it would not have been possible to bring out this Report. I also place on record my appreciation for the work done by the team of officers and staff members of Labour Bureau, whose names appear in Annexure IV. Suggestions for further improvement of this publication are welcome. Daljeet Singh Director General Chandigarh Dated : 4th February, 2015 CONTENTS Sl. No. Title Pages SUMMARY OF THE REPORT 1 CHAPTERS I Salient features of the Trade Unions Act, 1926 2-6 II Growth of Trade Unions 7-9 III Finances, Assets and Liabilities of Trade Unions 10 ANNEXURES I Statistical Tables (Sl. No 1.1 to 6.4) 11-46 II National Industrial Classification 47-57 III Blank Performae for collection of Labour Statistics 58-63 IV List of Official associated with this report 64 (i) STATISTICAL TABLES Table No. Title of Table Page 1.1 Number and Membership of Workers’ Unions By Major Industry Divisions for 11 the year, 2012 1.2 Percentage Distribution of Income of Workers’ and Employers’ Unions by 12 Sources during 2012 1.3 Percentage Distribution of Expenditure of Workers’ and Employers’ Unions by 13 Items of Expenditure during 2012 2.1 Growth of Registered Trade Unions and their Membership -1996 to 2012 14 2.2 State-wise Distribution of Registered Trade Unions during 2012 15 3.1 Number and Membership of Workers' Trade Unions (Central and State) by Sex 16 and States/UT's during 2012 3.2 Industry-wise Number and Membership of Worker's Trade Unions (Submittting 17-23 Retuns) by Sex at NIC 3 digit level during 2012 3.3 Number of Workers' Trade Unions (Submitting Returns) and their Membership 24 by State/Uts and State/Central Sphere during 2012 4.1 State-wise Number and Membership of Employers' Trade Unions (Submitting 25 Returns) by Sex and State/UTs during 2012 5.1 General Funds of Trade Unions Submitting Returns, 1996-2012 26 5.2 State-wise General Funds of Workers' Trade Unions (Submitting Returns) by 27 States/UTs during 2012 5.3 Industry wise General Funds of Workers' Unions (submitting returns) at NIC 2 28-30 digit level during 2012 55..66 IInnccoommee ooff WWoorrkkeerrss'' TTrraaddee UUnniioonnss ((CCeennttrraall && SSttaattee)) bbyySSoouurrcceess aanndd SSttaatteess//UUTTss 3311--3322 durng 2012 5.7 Income of Workers' Trade Unions (Central & State) by Sources and Industries 33-36 at NIC 2 digit level during 2012 5.10 Expenditure of Workers'Trade Unions (Central & State) byItems and State/UT 37-38 during 2012 5.11 Expenditure fo Workers' Trade Unions (Central & State) by Items of 39-45 Expenditure and Industries during 2012 5.14 Assets and Liabilities of Trade Unions during 2012 46 (ii) Summary of the Report Trade Unions are organization of Workers as well as of Employers formed to protect and promote the interest of their members. In the year 1926 the Trade Unions Act was passed and gave legal status to the Registered Trade Unions in the country i.e. Trade Unions in India 1926. The present review presents information in respect of Workers and Employers Unions, of Registered Trade Unions submitting returns by their sex-wise membership. Besides, it also presents data of income and expenditure of Workers Unions, Employers Unions and Federation of Trade Unions. Growth of Trade Unions  The total no. of registered Trade Union was 16154 in the year 2012 (Table 2.1).  The number of Unions submitting returns was 4785 i.e. 29.6 percent of the total registered unions (Table 2.1).  The average membership for workers union was 1919 members only (Table 2.1).  Out of total of 16154 registered unions as many as 16098 unions i.e. 99.7 per cent belong to Workers and remaining 56 (0.3 per cent) unions were Employers (Table 2.2).  Among States/Union Territories, Karnataka accounted for the largest number of registered Trade Unions (3726) (Table 2.2). Growth of Workers Unions  Out of 16098 Workers Unions, 94.3 per cent were State Unions and remaining 5.7 per cent were Central Unions (Table 3.1).  Only 4785 Workers Unions (29.72 Per cent) had submitted the returns (Table 3.1).  The ‘Manufacturing Group’ accounted for 37.1 per cent of the total number of Workers Unions submitting returns, followed by ‘Transportation & Storage’ 13.6 per cent (Table 1.1). Employers Unions  Out of 56 registered employers unions none of them submitted returns. Finances, Assets and Liabilities of Trade Unions  All the 4785 trade unions submitting returns had income of ` 67 Crore against the expenditure of ` 62.8 Crore respectively. (Table 5.1).  Total Assets/Liabilities of Trade Unions of Workers was reported as ` 60.65 Crore. (Table 5.14). Federations of Workers Trade Unions  None of the Federations had submitted their returns. (Table 6.1). 1 Chapter I Salient Features of the Trade Unions Act, 1926 Trade Unions are organization of Workers as well as Employers formed to protect and promote the interest of their members. Trade Unions have made headway due to rapid individual development. The workers come together to maintain and improve their bargaining power on wages and working conditions. The first organized Trade Union in India named as the Madras Labour Union was formed in the year 1918. From the beginning itself, Trade Unions were not confined to workers alone. From 19th Century itself there were Employer’s associations in the form of Chamber of Commerce, Industrial Associations etc. to protect and promote the interests of their members in a concerted manner. After independence, expansion of industrial activity and grouping worker’s Trade Unions acted as a spur for strengthening and expansion of employers’ organization. In 1926, the Trade Union Act was passed which was a landmark in the history of Trade Unions in the country. The Act gave legal status to the Registered Trade Unions and conferred on them and their members a measure of immunity from Civil Suit and Criminal prosecution. Registration of Unions enhanced their status before general public. The Act gives protection to registered trade unions in certain cases against civil or criminal action. Employers and Registered Trade Unions are required to submit annual statutory returns to the Registrar of Trade Unions of respective States/Union Territories regarding their membership, sources of income, distribution of expenditure and detail of assets and liabilities, who in turn submit consolidated return on all these aspects to Labour Bureau in the specified proformae. 1.1 Coverage The coverage of the Act is confined to : (a) Only persons engaged in Trade or Business (which includes an Industry) can form a trade union or become members of the trade union. As such persons employed in Raj Bhawan for domestic and other duties cannot form a trade union. Likewise, the government servants engaged in the task of sovereign and legal functions are not entitled to the registration of a trade union. (b) The Trade Unions Act 1926 applies to the whole of Indian Union. (c) Any person who has attained the age of 15 years may become the member of a registered trade union. 2 1.2 Important, Definition, Concepts and Provisions of the Act 1.2.1 Trade Union: - Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relation (a) between workmen and employers, or (b) between workmen and workmen, or (c) between employers and employers or for imposing restrictive conditions on the conduct of any trade or business. It includes any federation of two or more trade unions. 1.2.2 Appropriate Government: - Appropriate Government means in relation to trade unions whose subjects are not confined to one state, the Central Government and in relation to other trade unions, the State government. 1.2.3. Registrar : A Registrar of trade unions appointed by the appropriate government under section 3, and includes any Additional or Deputy Registrar of trade unions. 1.2.4. Executive:- Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted. 1.2.5. Trade dispute :- Trade dispute means any dispute (a) between employers and workmen, or (b) between workmen and workmen, or (c) between employers and employers, which is connected with i) employment or non-employment, or ii) the terms of employment, or iii) the conditions of labour, of any person 1.2.6. Workmen :-- Workmen means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises. 1.2.7. Public Sector: - Public Sector means an establishment wholly owned, controlled or managed by: i) The Government or the department of the Government. ii) A Government company as defined under Section 617 of the Companies Act, 1956. 3 iii) A Corporation (including Co- operative Society) established by or under a Central, Provincial or State Act which is owned or controlled or managed by the Government and iv) A local authority 1.2.8. Private Sector :- Private Sector means an establishment, which is not an establishment in the Public Sector. 1.2.9. Procedure to become members Any person who has attained the age of 15 years may become the member of a registered trade union. Any Such member, subject to the rules of the trade union may enjoy all the rights of a member and execute all instruments and give all acquaintances necessary to be executed or given under the rules. But he cannot be an office bearer of the trade union until, he attains the age of 18 years. Only persons engaged in trade or business which includes an industry can form a trade union or become members of the trade union. As such persons employed in Raj Bhawan for domestic and other duties cannot form a trade union. Likewise, the government servants engaged in the task of sovereign and legal functions are not entitled to the registration of a trade union. 1.2.10. Registration of Trade Unions (i) Trade Union Act, 1926 provides for registration of trade unions. Any 7 or more members of a trade union by subscribing their names to the rules of the trade union and otherwise complying with provisions of this Act with respect to registration may apply for registration of trade union under this Act (Section 4 ) to the Registrar of Trade Unions. (ii) The Registrar issues a Certificate of Registration in a prescribed form which acts as evidence that trade union has been duly registered under the Act. 1.2.11. Cancellation of Registration A certificate of registration of a trade union may be withdrawn or cancelled by the Registrar (a) on the application of the trade union to be verified in such a manner as may be prescribed and (b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake or that trade 4 union has ceased to exist and has will fully and after notice from Registrar, contravenes provisions of the Act. 1.2.12. Dissolution i) When a registered trade union is dissolved, notice of the dissolution signed by 7 members and by the Secretary of the trade union shall, within 14 days of the dissolution be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of the trade union, and the dissolution shall have effect, from the date of such registration ii) Where the dissolution of a registered trade union has been registered and the rules of the trade union do not provide for the distribution of funds of trade union on dissolution, the Registrar shall divide the funds amongst the members in such a manner as may be prescribed. 1.2.13. Other provisions of the Act i) The Act clearly defines the rights and liabilities of registered trade union. It indicates the objects on which general funds may be spent. ii) The Act also provides for constitution of a separate fund for political purposes. iii) The trade unions are given immunity from civil suits in certain cases iv) The members of trade unions can inspect the books of trade unions v) The trade unions can be amalgamated, provided votes of at least one half of the members of each or every such trade union entitled to vote is recorded. 1.3 Limitations 1.3.1 Limitations:- Under the Trade Unions Act, 1926, the registration of a trade union is not obligatory. Thus information regarding unregistered trade unions is not included in the Review. However, it is observed that response rate of States submitting returns to Labour Bureau is very poor. During 2011 only 27% of the registered trade unions from 10 States/Union Territories and during 2012 only 29.6 % of the registered trade unions from 15 States/Union Territories have submitted returns in the prescribed proformae to the concerned authorities. The data, therefore, are not strictly comparable with those of the earlier years. 5

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The first organized Trade Unions in India named as the Madras. Labour Union was Page. 1.1. Number and Membership of Workers' Unions By Major Industry Divisions for the year .. Professional, scientific and technical activities.
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