Rights and Liabilities of Registered Trade Unions
Rights and Liabilities of Registered Trade Unions
What is a Registered Trade Union?
A Registered Trade Union is an organization of workers formed to protect and promote their interests. Registration gives it a legal status and certain rights and responsibilities.
Rights of Registered Trade Unions
1. Right to Sue and be Sued
A registered trade union can file lawsuits to protect the interests of its members and can also be sued in its registered name.
It can take legal action for breach of contract, unfair labor practices, or other disputes.
2. Right to Own Property
Registered trade unions have the right to own, acquire, and manage property (both movable and immovable) in the name of the union.
This property can be used for union activities like offices, meeting halls, etc.
3. Right to Collect Membership Fees
Registered trade unions have the right to collect subscription fees, fines, and other contributions from their members.
These funds are used for welfare activities, legal aid, strike funds, and union administration.
4. Right to Represent Members
The union has the right to represent members in negotiations with employers on wages, working conditions, benefits, and disputes.
They can participate in collective bargaining on behalf of their members.
5. Right to Hold Meetings and Processions
Registered trade unions have the right to organize meetings, rallies, and processions to promote the interests of their members.
These activities must be peaceful and lawful.
6. Right to Defend Members
The union can provide legal or financial assistance to members in disputes related to employment.
It can defend members against wrongful dismissal, unfair treatment, or disciplinary actions.
Liabilities of Registered Trade Unions
1. Liability for Breach of Contract
If a trade union enters into contracts (e.g., hiring halls, services), it is liable for breach of those contracts.
The union, as a legal entity, can be sued for non-performance.
2. Liability for Torts
The union can be held liable for tortious acts committed by its members during union activities, such as unlawful strikes or damage to property.
3. Responsibility for Proper Use of Funds
Union officials have the responsibility to manage funds honestly and transparently.
Misappropriation or misuse of union funds can lead to legal consequences for the officials.
4. Liability in Industrial Actions
If the union calls for illegal strikes or protests, it may be held responsible for losses or damages caused.
The union must ensure that industrial actions are lawful.
5. Accountability for Violation of Rules
The union must follow its own rules and regulations and those applicable to trade unions.
Failure to do so can lead to cancellation of registration or penalties.
Case Law Examples
Case 1: Workmen of A.P. Steels Ltd. v. Management
Facts: The union organized a strike that was considered illegal by the management.
Held: The court held the union liable for losses caused due to the illegal strike.
Principle: Trade unions must ensure industrial actions are lawful; otherwise, they are responsible for consequences.
Case 2: All India Bank Employees’ Association v. Union of India
Facts: The union challenged certain government policies affecting employees.
Held: The court recognized the right of the union to represent and protect employees’ interests.
Principle: Registered trade unions have the right to legally represent their members.
Summary
| Rights | Liabilities |
|---|---|
| Right to sue and be sued | Liability for breach of contracts |
| Right to own and manage property | Liability for tortious acts during union activities |
| Right to collect membership fees | Responsibility for proper management of funds |
| Right to represent members in negotiations | Liability for illegal strikes or actions |
| Right to organize meetings and rallies | Accountability for violation of union rules |
| Right to defend members |
Conclusion:
A registered trade union enjoys important rights that help it protect and promote workers' interests, but it also carries liabilities to ensure responsible functioning. The union must act within the law and its own rules to avoid legal consequences.
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