Before diving deep into the concept of Trade Unions, let’s briefly understand how and why they came into existence.

Trade Unions emerged as a direct consequence of industrialization. Rooted in the principle “United we stand, divided we fall,” a Trade Union is essentially a collective organization or community of workers. It was shaped by several uncertain social and economic challenges faced by workers during the industrial era.

The key factors that led to the growth of Trade Unions include:

• Repeated strikes by workers

• Poor economic conditions and exploitation

• Stagnant wages amid rising inflation

• Labor shortages and harsh working environments

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What is a Trade Union?

According to The Indian Trade Unions Act, 1926, a Trade Union is:

“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.”

Dale Yoder also defines a Trade Union as:

“A union is a continuing, long-term association of employees formed and maintained for the specific purpose of advancing and protecting the interests of its members in their working relationships.”

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Minimum Membership Requirement

As per Section 4(1) of the Trade Unions Act, 1926, a minimum of seven persons can apply for the registration of a Trade Union.

This minimum number was set to encourage the formation and expansion of Trade Unions and promote the collective strength of workers.

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Advantages of Trade Unions

Trade Unions offer several significant benefits to their members and the broader workforce:

• Collective Bargaining Power: Enables workers to negotiate better wages and benefits, helping to counterbalance monopsony and unfair pay structures.

• Productivity Agreements: Unions can collaborate with employers to introduce new working methods aimed at increasing efficiency.

• Legal Representation: Trade Unions can represent their members in employment tribunals and other legal forums.

• Improved Industrial Relations: They help foster better communication and mutual trust between workers and management.

• Motivation & Retention: Higher wages and better working conditions boost worker morale and reduce turnover.

• Reduced Inequality: Unions promote fairness in wage distribution, job roles, and workplace practices.

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Documents Required for Registration of a Trade Union

To register a Trade Union, the following documents and details are required:

1. Names, occupations, and addresses of the members applying for registration
2. Proposed name of the Trade Union and address of its head office
3. Titles, names, ages, addresses, and occupations of office-bearers
4. A copy of the Constitution or Deed of the Union
5. Identity proof of members (Aadhaar card, Passport, Voter ID, Driving License, etc.)
6. PAN card of the Union
7. Proof of registered office address (electricity bill, water bill, or registration certificate)
8. No Objection Certificate (NOC) from the property owner (if rented premises)

Note:
If the Trade Union has been in existence for over a year, a statement of its assets and liabilities must also be submitted along with the application.