Trade Unions Act 1926.pptx

8/14/2019 Trade Unions Act 1926.pptx

1/40


2/40

TRADE UNIONS ACT,1926

Total chapters 5

Total sections 33


3/40

MEANING OF TRADE UNION

Trade Unions Act,1926 S.2(h) "Trade Union" means any combination, whether

temporary or permanent, formed primarily for the purpose of regulating the relations

between workmen and employers or between workmen and workmen, or between

employers and employers, or for imposing restrictive conditions on the conduct of any

trade or business, and includes any federation of two or more Trade Unions:

Provided that this Act shall not affect--

(i) any agreement between partners as to their own business;

(ii) any agreement between an employer and those employed by

him as to such employment; or

(iii) any agreement in consideration of the sale of the good-will of a business or of

instruction in any profession, trade or handicraft.


4/40

HISTORY

First cotton mill established in India in 1851 in Bombay and first Jute Mill in

1855 in BengalIn 1875 for the first time factory workers united together for securing better

living conditions

First factory commission appointed in Bombay in 1875 and first Factories

Act passed in 1881

1881 Act proved highly inadequate and another Factory Commission

appointed in 1884

Representation submitted to govt. in 1890 reiterating demands of 1884 and

it was signed by 17,000 workers


5/40

HISTORY

In 1890 Bombay Mill-Hands Association was established under

Mr.Lokhandey; this was first Labour Association in IndiaDeclaration of war helped growth of labour movement in India; cost of

living increased and lowered standard of living; this led to series of

strike waves in 1918-19

By 1920 large numbers of unions were formed

AITUC was established


6/40

TRADE UNIONS ACT 1926

Passing of Trade Unions Act 1926 was important landmark in Trade Union

movement; in addition to giving trade union legal status, registrationgave immunity to its members from civil suits and criminal

prosecutions

Registration enhanced status of unions in public and employerseyes


7/40

RECOGNITION OF TRADE UNIONS

Technically there is no provision in Trade Unions for recognition;

In actual practice employers accord recognition to trade unions followingprocedure contained in Code of Discipline ratified by all Central

Employersand WorkersOrganizations at 16thsession of Indian Labour

Conference held in May,1958,and negotiate with Trade Unions for

settlement of industrial disputes to restore and maintain industrial

peace in their establishments;


8/40

S.4 MODE OF REGISTRATION

(1)Any seven or more members of a Trade Union may, by subscribing their

names to the rules of the Trade Union and by otherwise complying withthe provisions of this Act with respect to registration, apply for

registration of the Trade Union under this Act.


9/40

TRADE UNIONS (AMENDMENT)ACT,2001

Features of Amending Act of 2001 are:

S.4 Proviso:Mode of Registration

''Provided that no Trade Union of workmen shall be registered unless at

least ten per cent or one hundred of the workmen, whichever is less,

engaged or employed in the establishment or industry with which it is

connected are the members of such Trade Union on the date of making of

application for registration:

Provided further that no Trade Union of workmen shall be registered unlessit has on the date of making application not less than seven persons as its

members, who are workmen engaged or employed in the establishment or

industry with which it is connected .'


10/40

EXPLANATION WITH EXAMPLE

A registered TU of workmen shall at all times continue to have not less

than 10 percent or 100 of the workmen whichever is less, subject tominimum of 7, engaged or employed in an establishment or industry

with which it is connected, as its members.

e.g. Suppose in an industry there are 2000 workmen. A TU can be

registered in this industry if it has at least 100 members as 10% is more

i.e. 200.

In another industry, there are 60 workmen. 10% will be 6. But minimumno. of members has to be 7.


11/40

Important amendments in section 22 of the Trade Unions Act, 1926

A very important amendment by Act 31 of 2001 took effect from 9.1.02 in sec 22 of

the Trade Unions Act,1926.

This section deals with the proportion of office bearers to be connected with the

industry. Before amendment, section 22 provided that not less than one half of theoffice bearers of a TU, shall have to be persons actually engaged or employed in the

industry with which the TU is connected.

For example if there are 20 office bearers in a TU, at least 10 [could be more] have to be

from the industry and 10 could be from outside.

This provision has been retained for the unorganized sector unions as per amended

sec 22(1). The appropriate government will have to specify which will beunorganized sectors.


12/40


13/40

A new Sub section 3 has been introduced to section 22 and this is as under: No member of the council of ministers or a person holding an office of

profit [ not being an engagement or employment in an establishment orindustry with which the TU is connected] in the union or a state, shall be amember of the executive or other office bearer of the union.


14/40

TRADE UNIONS (AMENDMENT)ACT,2001

Election of members of executive and office bearers at an interval of not

more than three years


15/40

LEGAL CHARACTER OF A REGISTERED TRADE UNION

Registered trade union receives a legal status and becomes legal person

According to S.13 every registered Trade Union becomes a body corporate byname under which it is registered and has a perpetual succession and acommon seal with a power to acquire and hold both movable and immovableproperty and to contract and to sue and be sued

Registered trade union is granted immunity from criminal and civil liability incertain cases


16/40

S.5

Application for Registration to be made to Registrar in prescribed manner


17/40

REGISTRATION

S.8 of Trade Unions Act 1926 provides that Registrar on being satisfied that

the Trade Union has complied with all the requirements of this Act in

regard to registration, shall register the trade union by entering

particulars of trade union in a register


18/40

ONGC WORKMENS ASSOCIATION V. STATE OF WEST

BENGAL

In ONGC WorkmensAssociation v. State of West Bengal (1988) II LLJ (Cal.)

it has been held that Registrar of Trade Union has no quasi-judicial

authority to hold any enquiry by allowing parties to examine witnesses

and to decide dispute as to who are real office-bearers; scope of

powers of registrar of trade unions provided under S.8 and 28 of the Act


19/40

ONGC WORKMENS ASSOCIATION V. STATE OF WEST

BENGAL

The registrar of TU under sections 8 and 28 of the Act is not quasi judicial

authority to look into the evidence; the ultimate forum is the ordinary

civil court where the parties can initiate proceedings for declaration of

rights and to obtain consequential reliefs in accordance with the law;


20/40

CANCELLATION OF REGISTRATION

According to S.10 of Trade Unions Act, a certificate of registration of a

trade union may be withdrawn or cancelled by Registrar in one of the

following two ways:

S.10(a):On application of Trade Union(when members of trade union do not

want their trade unions to remain registered any longer)


21/40


S.10(b):At Will of the Registrar(when certificate obtained by fraud or mistake;when trade union has ceased to exist; when trade union has wilfully

contravened any provisions of Trade Unions Act; when Trade Union hasallowed any rule to continue which is inconsistent with any provisioncontained in Trade Union Act; when Trade Union has rescinded any ruleproviding for any matter, provision for which is required under S.6 of theAct;)


22/40

MUKUND IRON AND STEEL WORKS LTD. V.

V.G.DESHPANDE

In Mukund Iron and Steel Works Ltd. v. V.G.Deshpande, Registrar of TU, Bombay 1986 LLJ 290 Bom. the question forconsideration was whether the Registrar has power to withdraw the cancellation of the registration; in this caseregistration of the trade union cancelled on the ground that it had contravened provisions of S.28 of the Act byfailing to send an annual return; the union sent the return and requested restoration of registartion; in view ofprayer registrar withdrew the cancellation order;

it was held that once Registrar cancels or withdraws registration of a trade union he has no power t review it; henceorder of Registrar of TUs withdrawing cancellation order on the ground that union has complied with theprovisions of the Act by submitting the necessary annual returns is without jurisdiction


23/40


S.10(c)Inserted by the Trade Unions (Amendment)Act, 2001: If Registrar is

satisfied that a Registered Trade Union of workmen ceases to have the

requisite number of members


24/40

RIGHTS OF REGISTERED TRADE UNIONS

Chapter III

Rights granted to it as a legal person(S.13)

Right to spend general funds(S.15)

Right to constitute a separate Political Fund(S.16)

Right to change its name(S.23)

Right to amalgamate(S.24)


25/40

RIGHTS OF TRADE UNIONS IN RESPECT OF INDUSTRIAL

MATTERS

Right of representation of labour before employer, in works committees, before

conciliation, mediation and in arbitrations, before courts and tribunals or

labour departments

SC held in Crescent Dyes and Chemicals Ltd. v. Ram Naresh Tripathi (1993) I LLJ

907 that right to be represented through counsel or agent can be restricted,

controlled or regulated by statute, rules, regulations or standing orders

RIGHTS OF TRADE UNIONS IN RESPECT OF


26/40

RIGHTS OF TRADE UNIONS IN RESPECT OF

INDUSTRIAL MATTERS

Right to negotiate and settle the disputes with employers and sign thesettlement and execute them;

Right to hold meetings, conferences, post their notices or inspect the placeswhere the members are employed for work

Right to accept services of notices, summons, etc.

Right to obtain legal aid

Right to collect fees on employers premises

Right to stage demonstration and strikes


27/40

STATUS AND POWERS OF REPRESENTATIVE TRADE

UNIONSIn Shivanand Gaurishankar Baswanti v. Laxmi Vishnu Textile Mills and others 2009 1

SCC (L&S) 293 the SC observed regarding status and position of representativeunion; the learned counsel for the union was held right in submitting that underBombay Industrial Relations Act, 1946, it is the representative union which has allpowers to enter into a settlement on behalf of the workers in the industry and it isonly that union which can take a decision under the 1946 Act;

the said decision could bind not only the member of the union, but also those workerswho are not members of such union; for reaching this conclusion variousprovisions of the Act were referred to;


28/40

Indian Air Lines OfficersAssociationv. Indian Air Lines Ltd. SC held that

employees of the organization cannot have any right in policy making; it

upheld judgment of DB of HC;


29/40

LIABILITIES AND DUTIES OF A REGISTERED TRADE

UNION

Duty to make provisions in rules of certain matters(S.6)

Duty to constitute executive as required(S.21A and S.22)

Duty to spend general funds as required(S.15)

Duty to constitute a separate political fund(S.16)

Duty to provide access to books of trade union(S.20)

Duty to send notice to Registrar in case of every change of its name, everyamalgamation, any change in address, dissolution(S.23, S.24, S.12, S.27, S.28)

Duty to file returns


30/40

IMMUNITIES OF A REGISTERED TRADE UNION

Immunity from criminal liability(S.17)

Immunity from civil liability(S.18)


31/40

S.17

No office bearer or member of a registered trade union shall be liable to punishment under sub-section (2) of section 120B ofthe Indian Penal Code in respect of any agreement made between members for the purpose of furthering any object oftrade union as is specified in S.15

Section 120B in The Indian Penal Code, 1860

120B. Punishment of criminal conspiracy.--(1)Whoever is a party to a criminal conspiracy to commit an offence punishable withdeath, 2[ imprisonment for life] or rigorous imprisonment for a term of two years or upwards, shall, where no expressprovision is made in this Code for the punishment of such a conspiracy, be punished in the same manner as if he hadabetted such offence.

(2)Whoever is a party to a criminal conspiracy other than a criminal conspiracy to commit an offence punishable as aforesaidshall be punished with imprisonment of either description for a term not exceeding six months, or with fine or with both.]
http://indiankanoon.org/doc/81396/http://indiankanoon.org/doc/822448/http://indiankanoon.org/doc/822448/http://indiankanoon.org/doc/81396/


32/40

S.18

No suit shall be maintainable in any Civil Court against any registered

Trade Union or any office bearer or member in respect of any act done

in contemplation or furtherance of a trade dispute to which a member of

Trade Union is a party on ground that such act induces some other

person to break a contract of employment or it is in interference with

trade, business or employment of some other person


33/40

S.18

Registered trade union shall not be liable in any suit or other legal

proceeding in any Civil Court in respect of any tortuous act done in

contemplation or furtherance of a trade dispute by agent of TU if

proved that such person acted without knowledge of, or contrary to

express instructions given by, the executive of the TU


34/40

DISQUALIFICATION OF OFFICE BEARERS OF TRADE

UNIONSS.21A

Person shall be disqualified for being chosen as member of the executive or any other

office bearer of a registered trade union ifHe has not attained age of 18 years

He has been convicted by court of India involving offence of moral turpitude andsentenced to imprisonment, unless five years has elapsed(any member whobefore commencement of Trade Union Amendment Act 1964 convicted for sameoffence shall cease to be a member unless five years has elapsed since his releasebefore that date)


35/40

PROPORTION OF OFFICE BEARERS TO BE

CONNECTED WITH THE INDUSTRY(S.22)

Not less than one-half of total number of office-bearers of every registered trade union

in an unorganized sector shall be persons actually engaged or employed in an

industry with which the Trade Union is connected


36/40

CHANGE OF NAME(S.23);AMALGAMATION OF

TRADE UNION(S.24)Any registered trade union may, with consent of not less than 2/3 of total number

of members and subject to provision of S.25 change its name;

Any two or more registered Trade Unions may become amalgamated together asone Trade Union with or without dissolution or division of the funds of suchTrade Union or either or any of them, provided that votes of at least one-halfof the members of each or every such Trade Union entitled to vote arerecorded, and that 60% of votes recorded are in favour of such proposal


37/40

DISSOLUTION(S.27)

When a registered trade union is dissolved, notice of such dissolution

signed by 7 members and by Secretary of the Trade Union shall within

14 days of such dissolution be sent to the Registrar, and shall be

registered by him if he is satisfied that the dissolution has been effected

in accordance with the rules of the Trade Union, and the dissolution

shall have effect from the date of such registration


38/40

RECOMMENDATIONS OF THE NATIONAL COMMISSIONOF LABORFormation of crafts and occupational trade unions must be discouraged.

Formation of Industrial Trade Unions and Industrial Federation must beencouraged.

a. Limit the number of outsiders in a union to less than 30% in all types of

unions.

b. Treat all former employees as advisors and members.


39/40

RECOMMENDATIONS OF THE NATIONAL COMMISSIONOF LABORc. Non-employees, including foreign members of political parties, shouldn't

be holding senior positions in union management, and shouldn't be

given power during important decisions pertaining to the progress of

the union.

d. Union leadership should only be comprised of present of past industrial

employees, because only employees can understand the needs of other

employees.

e. A management's policy of taking unfair advantages of the labour must beprofessionally addressed and penalized.

f. Workers must collectively bargain directly with senior management, and

not have non-members do it for them.


40/40

RECOMMENDATIONS OF THE NATIONAL COMMISSIONOF LABORA union may be closed down if:

a. Its membership falls below a minimum number required for registration.b. Annual returns are not submitted.

c. No explanation is provided for defective returns.

Documents

Trade Unions Act 1926.pptx