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Section 26: Amalgamation of Trade Unions

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Trade Unions
Competent Labour Forum
Act No. 35 of 2020
Section 25 All 104 Sections of Industrial Relations Code, 2020 Section 27

Legal Commentary & Landmark Judgments: Section 26

Section 26 of the Industrial Relations Code, 2020 authorizes the amalgamation of two or more registered Trade Unions into a single corporate entity, establishing stringent voting turnouts and a 60% affirmative super-majority threshold to safeguard membership rights and prevent unrepresentative mergers.

  • Dual Statutory Voting Thresholds for Amalgamation: Section 26 provides that any two or more registered Trade Unions may become amalgamated together as one Trade Union, provided that: (i) the votes of at least one-half (50%) of the total members of each amalgamating union are recorded; and (ii) of the votes so recorded, at least sixty percent (60%) are in favor of the proposal.
  • Flexibility of Corporate Restructuring & Fund Preservation: Amalgamation may take place with or without the dissolution or division of the funds of the amalgamating Trade Unions; the amalgamating bodies may consolidate all assets and liabilities into a single general fund.
  • Automatic Succession & Non-Abatement of Legal Proceedings: Upon amalgamation, all property, rights, liabilities, and ongoing collective bargaining references of each union transfer to the new amalgamated body; pending industrial tribunal disputes or conciliation proceedings do not abate.
Key Landmark Precedents:
  • Associated Cement Companies Ltd. v. Their Workmen AIR 1960 SC 56: The Supreme Court recognized the validity and enforceability of collective agreements and tribunal references maintained by amalgamated trade unions representing unified workforces.
  • Balmer Lawrie Workers Union v. Balmer Lawrie & Co. Ltd. 1985 Supp SCC 280: The Supreme Court observed that union consolidation through lawful amalgamation strengthens collective bargaining, eliminates multi-union rivalry, and enhances enterprise stability.
  • General Manager, Northern Railway v. Sarvesh Chopra (2002) 4 SCC 45: Affirmed that corporate restructuring of employee representative bodies preserves existing contractual rights and procedural standings before statutory authorities.
Courtroom Practice & Strategic Litigation Guidance:

Both amalgamating unions must coordinate a simultaneous secret ballot across their respective memberships. The returning officers must independently verify: (a) that at least 50% of the total registered members on the roll cast their votes; and (b) that at least 60% of those votes were affirmative. Draft a comprehensive Amalgamation Agreement setting forth the constitution, asset vesting, and executive composition of the amalgamated entity for submission under Section 27.

Section 25 All 104 Sections of Industrial Relations Code, 2020 Section 27