Trade Union ACT - Lecture notes 1 PDF

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TRADE UNION ACT, 1926Historical Background : The Industrial Revolution aimed at mass production of commodities in large scale industrial units came to be set up resulting in concentration of workmen at one place under one employer. Industrial employer now been replaced by corporations wielding immen...

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TRADE UNION ACT, 1926 Historical Background: •

The Industrial Revolution aimed at mass production of commodities in large scale industrial units came to be set up resulting in concentration of workmen at one place under one employer.

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Industrial employer now been replaced by corporations wielding immense economic power. The workmen were exploited and were at the mercy of the employer.

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The State did not protect the under-privileged and weaker partner in the industry and the workmen had to fend for themselves when conflicts arose between the employer and the workmen. Workers, therefore, came in groups and formed associations.

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Trade union is the outcome of the factory system. It is based on labour philosophy- ‘united we stand, divided we fall.’ Industrial revolution in India has changed the traditional outlook in the labour management relationship.

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With the introduction of the modern factory system, personal relationship between the employer and the employee disappeared and has given rise to many social and economic evils which made it imperative on the part of the workers to devise an effective means to contract employers and to bargain with them.

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Formation of trade unions has been an ideal solution.

Trade Union Movement in India •

The labour movement in India, may be traced from 1860s. Early years of the movement were generally led by philanthropists and social reformers, who organized workers and protected them against inhuman working conditions.

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Strike committees emerged which called themselves trade unions and demanded the privileges of trade unions without any means of discharging responsibilities thereof.

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The position of trade unions has improved since then. Their number has gone up and their membership and funds have increased.

History of Trade Unionism in India: •

In India, trade unionism can be traced back to the 1890, when an association was formed in the name and style of ‘Bombay Millhands Association’. This association was formed for the redressal of grievances of the Bombay mill workers. This association cannot be treated as a Trade Union in the strict sense in which the expression is used nowadays.

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After World War I, the cost of living increased. The political agitation against foreign rule was gaining momentum throughout the country. This led to an economic discontent amongst the masses, particularly in industries.

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The industrial unrest and economic discontent led to a number of strikes by workers, guided and controlled by their Action Committees consisting of representatives of workers themselves.

On many occasions , these strikes were successful in getting the workers demands fulfilled. Trade Union movement in India got impetus by the success of strikes in India and the world wide uprising of labour consciousness. Establishment of International Labour Organisation influenced the growth of the trade union movement in India. The progress of trade union movement in India in pre-independence days has not been very satisfactory , but the post independence has been a tremendous Trade Union activity in every sphere of the industry. There is hardly any category of workers which has no Union of its own. Development of Trade Union Law in India  In 1920, the High Court of Madras, in a suit filed against the officials of the Madras Textile Labour Union by Binny & Co. granted an injunction restraining the Union Officials to induce certain workers to break their contracts of employment by refusing them to return to work.  The leaders of the Trade Union found themselves liable to prosecution and imprisonment even for bona fide trade union activities.  It was felt that legislative protection of Trade Union was necessary. Mr. N.M. Joshi, the then General Secretary of All India Trade Union Congress, moved a resolution in the Central Legislative Assembly seeking introduction of some measure by the Govt. for the protection of Trade Unions.  The employers opposed to this being adopted that the passing of the Indian Trade Union Act was possible only in 1926. the Act was enforced from 1st June, 1927.  Contribution of labour and capital in an industry is equally important. Therefore, the prosperity of an industry upon the co-operation of its 2 components.  Disputes between the capital and labour are inevitable so the object of any industrial legislation is to ensure smooth relationship between the two and to strive for settlement of any dispute by resorting to negotiation and conciliation.  Trade Unions encourage such collective bargaining as it ensures better terms and conditions of employment to the labour and maintenance of good relations between the employer and the employees.  To secure better working conditions, privileges and amenities to the labour, the Trade Unions adopt methods like legislation, collective bargaining, mutual insurance and strike. The method of mutual insurance is unknown to the Trade Unions in India.  The Act of 1926 was amended in 1929 to provide for the procedure of appeal against the decisions of the Registrar.

 When the Registrar refused to register a trade union or when registration was withdrawn, an appeal could be preferred against any such decision of the Registrar.  On examining the working of the Act, the Royal Commission on Labour made a few recommendations: 1. Act was to be re-examined within 3 years. Limitations on the activities of the Trade Union and their office bearers were to be reconsidered. Ensured that bona fide Trade Union not deprived of applying for registration. 2. Accounts of Trade Unions should be audited free of charge by Govt. officers. 3. At least two-third members of the executive of a Trade Union should actually engaged or employed in industry to which the Union relates. 4. Trade Unions should not be deprived of carrying on co-operative societies. Original Trade Unions Act of 1926, made provisions in respect of: 1. Conditions governing the registered Trade Unions 2. Obligations imposed upon registered Trade Union. 3. Rights and privileges of registered Trade Union.

Indian Trade Union (Amendment) Act, 1947: 

Indian Trade Unions Act, 1926 made provisions for registration of a Trade Union after fulfilling the requisite conditions but the employer was under no obligation to recognize Trade Union or deal with it even if it was registered.

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The Royal Commission on Labour pleaded for the recognition of representative Trade Unions. Consequently, the Act was amended in 1947 providing for compulsory recognition by the employers of the representative Trade Unions.

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Following provisions were made in the Amending Act:

1. Recognition of Trade Unions by employers. Any dispute regarding recognition was to be decided by the Labour Court set up under the Act. 2. Recognition was to be granted if the Union applying was representative of all workers in the concerned establishment or industry. 3. If trade union has applied for recognition to the employer, but failed to get recognition within 3 months, it could apply to the Labour Court to set up for the formal recognition by the employer. Required particulars were to be furnished along with any such application. Labour Court after investigation is satisfied that the Union fulfills all conditions necessary for recognition by the employer; it shall pass an order directing such recognition.

4. Executive of a recognized Trade Union has the right of negotiation with the employer in respect of any matter connected with the employment, non-employment, terms of employment, conditions of work of all or any of its members. 5. Acts amounting to unfair labour practices on the part of the Trade Union and of the employers were declared in the Act. Act refrains both the Trade Union and the employer to desist from unfair practices. Any Trade Union found guilty of unfair practice can be withdrawn on an application by the employer to the Registrar. In case of an employer found guilty of unfair practice a fine upto Rs. 1000/- may be imposed by the Registrar on an application by the Trade Union. 6. Some acts declared to be unfair practices are: i.

Participation, support or instigation of an irregular strike;

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Submission of returns containing false statement;

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Discharge or discrimination against any officer of a recognized Trade Union;

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Interference with the formation or administration of a Trade Union. Trade Union Bill 1950: 

Amending Act of 1947 did not provide for the inspection of books of Trade Unions by the Registrar of Trade Unions. The Chief Labour Commissioner (Central) in his report on the representative character of the All-India Trade Union Congress suggested periodical inspection of registers, records and account books of the Trade Unions by the Registrar or some other person deputed by him was necessary for the development of Trade Unions.

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The matter was discussed at the 11th session of the Standing Labour Committee in January 1949. On the basis of these discussions a Trade Union Bill seeking to make new provisions was introduced in Parliament in February 1950, but the Bill lapsed with the dissolution of the Parliament.

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The Indian Trade Union (Amendment) Act of 1960 made some changes in sections 2(f), 3, 4, 6, 14, 16, and 28 of the Act. By the Indian Trade Union (Amendment) Act of 1964 the word ‘Indian’ has been deleted from the Act.

Right to Form Union Protected by Constitution

In All India Bank Employers’ Association v. National Induatrial Tribunal (Bank Disputes), AIR 1962 SC 171, the Supreme Court held that the right guaranteed under sub-clause (c) of clause (1) of Article 19 of the Constitution of India extends to the formation of an association and as the activities of the association are concerned or as regards the steps which the Union might take to achieve the purposes of its creation they are subject to such laws as might be

framed and the validity of such laws is not to be tested by reference to the criteria to be found in clause (4) of the Article 19 of the Constitution.

International Labour Convention (ILO) Requirements

 Under ILO Convention No.87 workers and employers without distinction whatsoever shall have the right to establish and subject only to the rules of the organisation concerned, to join organizations of their own choosing without previous authorisations. Workers and employers organizations shall have the right to draw up their constitutions and rules to elect their representatives in full freedom to organize their administration and activities and to formulate programmes.  Convention No. 98 provides that workers shall enjoy adequate protection against acts of antiunion discrimination in respect of employment.  Convention No.135 concerning protection to workers representatives provides that the workers representatives in the undertaking shall enjoy effective protection against any act prejudicial to them, including dismissal, based on their status or activities as a workers representatives or on union membership, or participation in union activities in so far as in conformity with the existing laws or collective agreements or other jointly agreed arrangements....