In India, the Parliament has passed a law called the Indian Trade Unions Act, 1926, which deals with the formation of trade unions. Since you are a student of PMIR, I advise you to go through the provisions of the Act from the point of view of learning. Briefly stating, a trade union is a body formed by workmen to regulate relations between employers and workmen or between workmen and workmen. Such a trade union shall be registered under the Trade Unions Act and obtain a certificate of registration.
Voluntary Arbitration
Voluntary arbitration is provided for under Sec.10-A of the Industrial Disputes Act, 1947. When there exists an industrial dispute between the employer and the workmen/union, it is first raised before the Conciliation officer who brings both the parties to settle the dispute. If the dispute is not settled, then two options lie before the parties:
1. One is to allow the dispute to be referred to a Labor Court/Industrial Tribunal to adjudicate on it.
2. Both parties can agree to voluntarily refer the dispute to arbitration by entering into an agreement to that effect, whereupon the Arbitrators will investigate the dispute and submit their decision, called an award, to the Government.
I suggest you go through important Labor Acts since their knowledge is necessary from an IR point of view.
Hope this helps.
Regards,
B. Saikumar