What are the different kinds of funds maintained by the Trade Union? Explain the procedure for the contribution of the funds.

Question: What are the different kinds of funds maintained by the Trade Union? Explain the procedure for the contribution of the funds.

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Answer

Trade Unions typically maintain various funds to support the activities of the union and to provide assistance to members in need. The types of funds maintained by a union can vary depending on its size, structure, and objectives, but here are some common ones:

Strike Fund: This fund is used to support members during strikes and other labour disputes. The Union collects money from members to build up the fund, which is then used to provide financial assistance to members who are on strike.

Welfare Fund: This fund is used to provide financial assistance to members in need, such as those who are ill, injured, or facing financial difficulties. The union may also use the welfare fund to provide scholarships and other forms of support to members and their families.

Legal Fund: This fund is used to pay for legal fees and other costs associated with legal action taken by the union, such as defending members who have been unfairly dismissed or negotiating collective bargaining agreements.

Political Fund: This fund is used to support political campaigns and lobbying efforts aimed at promoting the interests of the union and its members.

A Registered Trade Union is entitled to maintain two kinds of funds which are

1. General Fund

2. Political Fund.

General Fund

According to Section 15 of the Trade Unions Act, A registered trade union can create a general fund. Members of the registered trade union have to contribute to the general fund. The fund can be spent for the purposes as specifically stated in Section 15 of the Act. A Registered Trade Union can create a general fund. Members of the registered trade union have to contribute to the general fund. The fund can be spent for the purposes as specifically stated in Section 15 of the Act.

Purposes for which the General Fund can be utilized:

1. The Payment of salaries, allowances and expenses to office bearers of the trade union.

2. The Payment of expenses for the administration of the trade union including an audit of accounts of the general fund.

3. The Expenses in connection with prosecution or defence are undertaken for the purpose of securing or protecting any rights of the trade union.

4. The Conduct of trade disputes on behalf of the union or any member.

Political Fund

According to Section 16 of the Trade Unions Act, The trade union must create a separate political fund for the purpose of spending it for political causes. Contributions to such political funds should be collected separately. Contribution to the political fund cannot be compelled or made compulsory or a condition to admit a person as a member of the trade union. Section 16(2) specifically states the purposes for which the political fund may be utilized. Those are:

1. The payment of any expenses incurred by a candidate or prospective candidate for election as a member of any legislative body or any local authority. The expenses include the expenses incurred before, during and after the election in connecting with such candidature;

2. Conducting any meeting or distribution of any literature or documents in support of such candidate or prospective candidate;

3. Maintenance of any person who is a member of any legislative body or local authority;

4. Registration of electors or the selection of a candidate for any legislative body or local authority;

5. Conducting political meetings or distributing political literature and documents to the members of the trade union or to the general public.

Now, let's look at the procedure for contributing to these funds:

Strike Fund: Members may be required to pay a regular amount into the strike fund as part of their union dues. When a strike is called, the union may also ask members to make additional contributions to the fund to support those on strike.

Welfare Fund: Members may be required to pay a regular amount into the welfare fund as part of their union dues. The union may also hold fundraising events and solicit donations from members and supporters to build up the fund.

Legal Fund: Members may be required to pay a regular amount into the legal fund as part of their union dues. The union may also hold fundraising events and solicit donations from members and supporters to build up the fund.

Political Fund: Members may be asked to make voluntary contributions to the political fund, which is usually separate from regular union dues. The union may also hold fundraising events and solicit donations from members and supporters to build up the fund.

In General, the contribution procedures for these funds are determined by the union's bylaws and policies. Members may have the option to opt out of contributing to certain funds, but this can vary depending on the union's rules.