Obligations and Rights of Recognized Trade Union Under MRTU & Pulp Act, 1971

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In this article, we shall study the obligations and rights of a recognized trade union.

Recognized Trade Union

Legal Status of Recognized Trade Union:

  • A recognized trade union is a body corporate with perpetual succession and a common seal.
  • It can acquire, hold sell or transfer any movable or immovable property and can be a party to contracts.
  • It can sue and be sued in its own name
  • No civil suit or another legal proceeding can be initiated against a registered trade union in respect of any act done in furtherance of a trade dispute under certain conditions.
  • No agreement between the members of a registered trade union shall be void or voidable merely on the ground that any of its objects are in restraint of trade.

Obligations or Duties of Registered Trade Unions:

Section 19:

Obligations of Recognised Union:

The rules of a union seeking recognition under this Act shall provide for the following matters, and the provisions thereof shall be duly observed by the upon, namely :-

(i) the membership subscription shall be not less than fifty paise per month;

(ii) the Executive Committee shall meet at intervals of not more than three months;

(iii) all resolutions passed, whether by the Executive Committee or the general body of the union, shall be recorded in a minute book kept for the purpose;

(iv) an auditor appointed by the State Government may audit its account at least once in each financial year.

Administrative Obligations:

The Executive Committee shall meet at intervals of not more than three months;, all resolutions passed, whether by the Executive Committee or the general body of the union, shall be recorded in a minute book kept for the purpose; (iv) an auditor appointed by the State Government may audit its account at least once in each financial year.

Objects on Which General Funds May Be Spent:

The general funds of a registered trade union should be spent only for the objects specified such as payment of salaries, allowances and expenses of its office bearers, its administrative and audit expenses, prosecution or defence of any legal proceeding for securing or protecting its rights, conduct of trade disputes, compensation for loss arising out of trade disputes, compensation for loss arising out of trade disputes, provision of educational, social or religious benefits and allowances on account of death, old age, sickness, accident or unemployment to its members, publication of labour journals etc.

Constitution of a Separate Fund for Political Purposes:

The trade union may set up a separate political fund for the furtherance of the civic and political interest of members. Contribution to this fund is not compulsory.

Right to Inspect Books of Trade Unions:

The account books of a registered trade union and the list of members thereof shall be open to inspection by an office-bearer or member of the trade union at such times as may be provided for in the rules of the trade union.

Effects of Change of Rules:

A copy of every alteration made in the rules of the union should be sent to the Registrar within 15 days of making the alteration.

Books of Accounts:

An annual statement of receipts and expenditure and assets and liabilities of the union for the year ending on the 31st December, prepared in the prescribed forms and duly audited should be sent to the Registrar within the prescribed time. This statement should be accompanied by a statement showing changes in office bearers during the year and a copy of the rules as amended up to date.

Criminal Conspiracy in Trade Disputes:

No office-bearer or member of a registered trade union shall be liable to punishment under sub-section (2) of Section 120 B of the Indian Penal Code, 1860 in respect of any agreement made between the members for the purpose of furthering any such object of the trade union as is specified in section its unless the agreement is an agreement to commit an offence.

Rights of Recognized Trade Union:

Section 20:

Rights of Recognised Union:

(1) Such officers, members of the office staff and members of a recognised union as may be authorised by or under rules made in this behalf by the State Government shall, in such manner and subject to such conditions as may be prescribed, have a right, –

(a) to collect sums payable by members to the union on the premises, where wags are paid to them;

(b) to put up or cause to be put up a notice-board on the premises of the undertaking in which its members are employed and affix or cause to be affixed notice thereon;

(c) for the purpose of the prevention or settlement of an industrial dispute, –

(i) to hold discussions on the premises of the undertaking with the employees concerned, who are the members of the union but so as not to interfere with the due working of the undertaking;

(ii) to meet and discuss, with an employer or any person appointed by him in that behalf, the grievances of employees employed in his undertaking;

(iii) to inspect, if necessary, in an undertaking any place where any employee of the undertaking is employed;

(d) to appear on behalf of any employee or employees in any domestic or departmental inquiry held by the employer.

(2) Where there is a recognised union for any undertaking, –

(a) that union alone shall have the right to appoint its nominees to represent workmen on the Works Committee constituted under section 3 of the Central Act;

(b) no employee seal be allowed to appear or act or be allowed to be represented in any proceedings under the Central Act (not being a proceeding in which the legality or propriety of an order of dismissal, discharge, removal, retrenchment, termination of service, or suspension of an employee is under consideration), except through the recognised union; and the decision arrived at, or order made, in such proceeding shall be binding on all the employees in such undertaking; and accordingly, the provisions of the Central Act, that is to say, the Industrial Disputes Act, 1947, XIV of 1947, shall stand amended in the manner and to the extent specified in Schedule I.

  • The office-bearers of a recognized trade union are authorized to collect sums payable by members to the union on the premises, where wages are paid to them;
  • They are authorized to put up or cause to be put up a notice-board on the premises of the undertaking in which its members are employed and affix or cause to be affixed notice thereon;
  • They are authorized to hold discussions on the premises of the undertaking with the employees concerned, who are the members of the union but so as not to interfere with the due working of the undertaking; to meet and discuss, with an employer or any person appointed by him in that behalf, the grievances of employees employed in his undertaking; and to inspect, if necessary, in an undertaking any place where any employee of the undertaking is employed for the prevention and settlement of industrial disputes;
  • They are authorized to appear on behalf of any employee or employees in any domestic or departmental inquiry held by the employer.
  • The recognized trade union alone shall have the right to appoint its nominees to represent workmen on the Works Committee constituted under section 3 of the Central Act

Rights of Unrecognized Union:

Section 22:

Rights or Unrecognised Unions:

Such officers, members of the office staff and members of any union (other than a recognised union) as may be authorised by or under the rules made in this behalf by the State Government shall, in such manner and subject to such conditions as may be prescribed, have a right โ€“

(i) to meet and discuss with an employer or any person appointed by him in that behalf, the grievances of any individual member relating to his discharge, removal, retrenchment, termination of service and suspension;

(ii) to appear on behalf of any of its members employed in the undertaking in any domestic or departmental inquiry held by the employer.

  • Generally, unrecognized unions have no rights but MRTU & PULP Act, 1971 provides special rights to unrecognized trade unions.
  • MRTU & PULP Act, 1971  gives specific rights to the unrecognized union to address individual disputes with the employer with regards to the severance of employment in any form and right to an appearance in domestic/departmental enquiries. But the right to represent in collective disputes lies only with the recognized union.  However, in the absence of applicability of MRTU AND PULP Act, all the unions having the employee following have the right for redressal of grievances.  However, as far as membership is concerned the same can be verified by filing an ICTU application in the Industrial Court.
  • Supreme Court has held that this provision does not violate the principle of natural justice.
  • The unrecognized union can represent casual workmen in the absence of a recognized union.

Conclusion:

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