HISTORY OF TRADE UNION ACT

Originally there were no organized trade unions.But developed gradually by growth of induatralisation
(19 cen) -Some unorganized group of workers attempted for better working conditions .The Britsh employer also
encourage dthe humanitariam movement with the motive of dividing Indian Employers as the feared the competition of Indian goods made at
low cost .
Philanthropic Movement : continued against child labour .finally due to public opinion pressure onEngland compelled the House of
Commons to pass resolution against child B/W 7-12 yrs old from working more than 9 hrs a day.
Humanitarian Movement:

1ST UNION ASSOCIATION Protest against low wages +cruel conditions

i.
1st strike Express Mills at Nagpur in 1877 followed by madras and Bombay agitation &mass petition british govt directd Govt of India to

consider labour condition.

ii.

1890-Bombay Mill Hands Association formed acted as welfare organization-brought into light the miserable wages,workin condn

longworking hrs.
iii.

After 1900 Postal union in Bombay ,Printers Union In

Calcutta emerged out :more like modern trade union .

IMPACT OF 1ST WORLD WAR Increase in prices ,but no change in wages,got only starvation wages
Textile workers in Madras formed-Labour Union In 1918 followed by unions in Bombay ,Bengal,Punjab etc.

Sense of solidarity and union consciousness began to grow up among workers.Thereafter the labour movement +independence
movement joined together under the leadership of gandhiji
1st ALL INDIA TRADE UNION FORMED
i.
1920:A.I.T.U.C-Formed by the fusion of 107 trade unions -Powerful labour federation and imp place in nationalist movement.
ii.
1920: 1st Trade Dispute Act passed-Retrograde legislation ,indirectly stifling or making unions illegal
a.
b.
c.
d.

New Factories Act 1922

Indian Mines Act 1923
Workmen Compensation Act 1923
Indian Trade UnionAct 1926 at last- These

act conferred legality of union ,immunities from liabilities both civil

+criminal
SPLIT IN TRADE UNION MOVEMENT 2GROUPS

1ST Group N.M.Joshi , V.V.Giri,

leader -confining its activities only to the advancement of material interest of worker .

Group 1922 communists began to capture +control trade union movement,organized many union and tried to affiliate
A.I.T.U.C with the Red International Labour Unions. Struggle for national independence
The great stike by Bombay Textile worker made the communit to organize formation of union out of it and thus they gained leadership among
labourers.
World Wide Business Depression 1929 : Wage cuts , retrenchment therefore many labourers joined the radicals.
2

nd

BEGINNING OF SPLITS

Trade Union Federation in 1931.: In Annual Session Of :A.I.T.U.C at Nagpur 1929- : moderate group under Joshi , siva Rao , Giri withdrew
from :A.I.T.U.C and formed T..U.F . A.I.T.U.C occurred B/W the Gandhian Reformist and communist
The communist abandoned :A.I.T.U.Cto for pure Red Trade Union Congress ,but due to the cooperative attitude of congress the rival faction
wee brought into :A.I.T.U.C and unity continued till 2nd world war.
i.
Indian Federation Of Labour 1942: under leadership of M.N.Roy formed to support british war effort .
ii.
1947: I .N.T.U.C Post independence the :A.I.T.U.C in hands of congress weakened as they didnt favour nationalist movement
,labour suffered backing of workers .so labour leaders associated with :A.I.T.U.C and national congress party seceded and
iii.

formed I .N.T.U.C.-Pinned faith to national ownership of industry .Its leaders adhere to Gandhi teaching ,non violence,peaceful
,trustyship ,truthful .
1948 :H.M.S -Hindu Mazdoor Sabha -further split in A.I.T.U.C formed by socialist party .-favour collective bargaining

iv.
v.

+reference of any dispute to adjudication when and if consultation fails

1949:UTUC Another group split off from A.I.T.U.C.- favours reduction of compulsory conciliation and adjudication
1969 :C.I.T.U -Centre of Indian Trade Union : further split in A.I.T.U.C

All these federation main goal is socialism .Emphasises class consciuosnes of workers , collective bargaining ,without restrictions on labourers
freedom to act .
REASONS FOR THE WEAKNESS OF INDIAN TRADE UNION MOVEMENT
1.OUTSIDE LEADERSHIP

outsider occupying key position in the union tend to give priority to their political convictions and give only secondary importance to
the workers socio-economic improvement.The outsiders loyalty and attention are divided between their political parties and labour unions.The
bane of Indian Trade Unionism is its overlordship by politicians.trade union leader has rendered great services togrowth of trade union
politicization of worker help to check unconditional exploitation by employers.
INDIAN TRADE UNION ACT -3/4TH of office bearer must be from among workers but this of no use when union grip held by president /secy
INDUSTRIAL RELATION BILL 1978 limit number of outsider in trade union so that employees take active part in union movement .
National Commission on Labour recommended promote internal leadership and permissible limit of outsider should be reduced.
2.MULTIPLICITY OF TRADE UNION

Emergence of mushroom unions proportionate to creation of political parties and sometimes even more is another weakness to healthy
trade union movement in India.The political ideologies and conviction dominated the cause of workers for their economic betterment and very
often political exploitation becomes net result in the name of workers.Intra union and inter union rivalries generate in such situation
contributing to the weakness of workers causes.
Raising minimum number of persons required toform a union is suggested as remedy toavoid multiplicity of union
National Commission on Labour
considered appropriate to raise new union minof 7 regular employees of plant or 100 which ever is lower.
Recommended principle of one union and one industry which was accepted by all federation .but there is difference whether existing
membership should be the criteriaon or new ballots to be applied to choose the union.
3.ACCENT TO COMPULSORY ADJUDICATION IN INDUSTRIAL DISPUTE ACT

Industrial Dispute Act 1947 Is the pivotal statute to regulate labour management relation is compulsory adjudication oriented.
Hence weak union and strong union are given equal relevance .
Trade Union Amendment Act 1947 amendment lapsed by efflux of time-amendment required the employer to recognize
representative trade union and to arbitrate any dispute over its certification..If this amendment has been given effect to ,it would have averted
the springing up of many unions rivalry in same estd.

RESPONSIBLE TRADE UNIONISM NEED OF THE TIME

Awarness created among leaders- trade unionism should not be confused with politics there should be employee-employer harmony.
The state should impose social control in order to achieve social progress ,social justiceto all
The unions should also take responsibilities such as
i.
promotion of national integration
ii.
influencing socio economic policies through community active participation in formulation of policies
iii.
installing in their members a sense of responsibility towards industry and the community

TRADE UNIONS AND INDUSTRIAL DEMOCRACY

The growth of trade union has undoubtedly contributed to the awakening among wage earners of the awarness of their own dignity
and importance.
There is a long tradition in British Trade Union in fav of workers having some share in the management and control of the industries
in which they are employed , as well as determination of wages and working condition.
Quinn VS. Toffvale England ;Bukingham Carnatic Mill India.
The unions were held to be illegal conspiracies and were awarded damages.

SEC 2(h) -Trade union means any combination whether temporary or permanent , formed primarily
i.
for the purpose of regulating the relations between
a. b/w workmen and employer /
b. b/w workmen and workmen /
c. b/w employers and employersor
ii.
for imposing restrictive conditions on the conduct of any trade or business and include any federation of two or more
trade unions
OBJECT AND SCOPE OF ACT

The trade Union Act 1926 was passed with main object of providing a machinery for registration of the trade unions and in
certain respects to define law relating toregd trade unions.It also define the privileges , rights , liabilities of the trade union and member.The
term trade unions is not limited to a workers union but itComprehends employers association as well .
The act does not ensure compulsory registration of trade union but its left t the discretion of the employet .A recognized trade
union enjoys certain addl.privilleges ,like acting as bargaining agent , to sign collective bargaing agreement etc.Ann attempt was made by the
trade union in 1947 to give automatic recognition to the registered trade union but the amendment has not been brought into force till this date.
The act also prescribe the objects for which a trade union may spend its general funds and also provides for the constitiution of a
separate fund for the political purposes ..members of regd trade union have been granted several protection from various civil and criminal
liabilities which they may likely to incur in promoting and safeguarding their legitimate interest through trade union activities
The various provison of trade union Act gives the trade unionmovement a dignified place in the industrial world with full of power and
influence .Trade union increase the bargaining capacity of the employeeaand also guarantees induatrial peace and ensures stability of the
industry .
Advantages

1.Wages uniform level ; provide welfare of worker by providing housing , medical facilities ,run edu institution
2.Among workers 1. increase std of living 2.self relence and self respect &build national character.3.promote security of jon and
solidarity among workers 4.Increase efficiency of workers
3.understanding B/W employer and employee ; Helps employee for collective bargaining with equal respect and dignity.; Given bonus coz
w/o them industries are not run .
_________________________________________________________________________________________________________________
PROCEDURE FOR REGISTRATION OF A TRADE UNION
Rangaswami Vs Trade Unions

Though sec 2(g)imported into sec 2(h)it would mean that the industry should be the one as would amout to trade /buniess i.e.commercial
undertaking
Dr.grahams at kalingpong Vs.West Bengal

The workers of Raj Bhavan are not employees in a trade or business carried on by the employer , the services rendered by them is of
personal nature .Such union would not comes within scope of act to entitle for registration.
ARE NOT HELD TO BE WORKMEN AND NOT ENTITLED TO REGISTER
Palace administration Board Vs. Tripunithra .-Palace admin
Management of s.j.hospital Vs .kuldip singh board hospital
Madras pinjrapole Vs.workmen nonpropritery club
Corporation nagapore Vs.employees.-domestic servants employed by private servants
CIVIL SERVANTS CANNOT REGISTER TRADE UNION
Tamilnadu nonn-gazetted government officers union ,Madras Vs.The Registrar of trade unions

Union(of10 members) applied to the registrar of trade unions for registration U/S 5 of trade union Act .This was rejected by registrar
.On appeal the High Court also dismissed the appeal and held that to get registration they must also dismissed the appeal and held that to get
registration they must be workmen engaged in trade , business or industry and appellant do not have such capacity ,since they are civil servants
engaged in the tasks of the sovereign .
Registrar of Trade Unions, W.B Vs.Mihir Kumar Gocha

It was held that the employees of E.S.I Corporation are workmen and so they can register a Trade Union under the act .
Registration Of Trade Union

1.

Not necessary that every union must be registered , that

unregistered trade union or association would not in any
way be illegal .
2. But if registerd it will get immunities , privileges and other
rights contemplated under the act.
National Commission on labour recommends for compulsory
registration of trade unions which bring about uniform regulation
and improvement in organization and functioning

Recognition Of trade Union

1.

The trade union Act does not provide for compulsory

recognition of trade union .Recognition is thus a matter of
discretion of employer
2. Though the 1950 Trade union envised for compulsory
recognition it was not carried into effect and it lapsed.
National Commission on labour feels desirable for compulsory
recognition of trade unions where the undertaking with 100 or more
workers or where capital invested is more than stipulated size.

Rajendra nath roy Vs. State of Bihar

Sahitya Mandir Press Vs.State of U.P

SEC13 :A regd trade union is abody corporate which becomes legal

entity and has perpetual sucession ,common seal ,power to hold both
mov and immov property and to enter into contract .it can sue and be
sued .Under sec 13 it can institute a suit in forma pauperis under order
33, rule 1 of CPC

T.N.Electricity Board Vs.T.N.E.B .Accounts and Executive Staff

union.

If a trade union is registered it get immunity even if it s not

recognized.
The recognition once granted cannot be withdrawn illegally or without
complying with the rules of natural justice.

Rights Of Recognised Trade Union

1) Sole representation of worker in collective bargaining ,; nominate reps to the grievances committee /statutory and non statutory
bipartite committees; discuss with employer the grievances of the worker ; to raise issues and enter into agreement with employer on
gen.questionconcerning terms and condition of employment.
2) To inspect place of work ;to put up in Notice Board in the premises of the undertaking and affix notices relating to meeting s,
statement of A/Cs and other announcements;To collect membership fees and subscription payable by members to the union within the
premises of the undertakings or demand check off facility
Appointment of Registrar-Sec 3.

Registrar Sec3(1)
ADDL/Depy Registrar Sec3(2)

Mukund Ram Tanti Vs. Registrar Of Trade Union

Registrar with full jurisdiction to enquire about legality of new election of the office bearer of trade union who required tocompky with the act .
Procedure and Formalities of Registration Of Union

i.
ii.
iii.
iv.

As Under sec 4 (amended)-Minimum number of members f trade union is raised to 10 if aggregate of members of workmen who are
members to such trade union is 100/less .In all other cases Min number of member is 7.
Application shall be made in form A.(as per the rule 3 of central trade union regulations 1938)
Sec 4(2)-If the number of applicants originally applied ceased to be a member or have turned against union it will not render
application invalid.
Sec 6-Trade union Act stipulates that the trade union is not entitled to registration unless the executive thereof is constituted in
accordance with provision of the act and its rules provided for following matters.
a. Name of the trade union .
b. All the objects of its establishment.
c. The purpose for which the general funds of the union shall be spent ;the purpose for which such funds can be lawfully
spent.
d. Maintainence of members list and adequate facilities for its inspection by office bearers and membersof the union.
e. Procedure for a). admission of ordinary members who shall be persons actually engaged or employed in an industry
with which the trade union is connected. b).Admission of honorary and temporary members as office bearers under
sec 22 to form executive.(atleast 3/4th of office bearer must be engaged in induatry with which the union is concerned).
f. A minimum membership subscription of 25 paise per month .
g. The conditions under which any members would be entitled to any benefit under the rule and under which any fine
and forfeiture may be imposed on him.
h. The manner in which the rules are to be amended or recinded.Indian Oxygen Ltd Vs.Workmen
i. Safe custody of funds ,annual audit of the account and adequate facilities to the office bearers and members for the
inspection of the accounts books.
j. The manner of dissolution of the trade union.

v.

Before seeking the registration the executive committee of the trade union must be constituted in accordance with the provision of the
act .( central trade union regulations 1938)
vi.
Sec 7.-The application made to the registrar shall be accompanied by a copy of the rules of the trade union and statement as to the
a)name .b)address and occupation of the applicant and office bearers of the unions .c)Name of the trade union and address of its head
office .7(2)Rules enumerated in sec 6 is condition precedent and does not confer any authority to frame rules.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

DUTIES OF REGISTRAR-IN REGISTRATION OF TRADE UNION

Scrutiny:

The registrar has to verify whether the application are in compliance with the provision of sec 5 and sec 6 of act and rules

framed

Further Information sec 7(1):Gives

power to registrar to call for further info and refuse to register until such info is given .

Register Sec 8:After

the satisfaction the registrar enter in prescribed register the particulars relating to trade union applied for
registration.For satisfaction he has to consider the relavant material i.e must comply with rules of natural justice.It does not mean that
registrar has togive opportunity to existing trade union while registering a new trade union.
Certificate Of Registration SEC 9: Registrar on registering a trade union shall issue a certificate of registration
inprescribed form.IT is a conclusive proof . If

the registarar does not take any step for registration after lapse of 3 mon it amt to
non exercise of ststutory duty and writ under 226 made for direction to perform with in 60 days of such refusal , if the head office of
the trade union is situated withinlimits of presidency twn and other cases b4 local civil court of original jurisdiction .The court may
dismiss petition or direct registrar toregister the union or setaside order of withdrawal / cancel.From order 2 nd appeal is maintainable..
Presumption :Registration of a union under the act is not conclusive proof of its real existence .It may raise only presumption to that
effect .
Quasijudicial authority :The registrar is to act as quasi judicial authority complying with rules of natural justice.W.R.T
registration /cancellation.- DCM Chemicals Mazdoor Ekta Union Vs.Registrar of Trade Unions.
Registrar with adjudicating power on dispute Now

sec28(c) Ratan Kumar Dey Vs Union Of India

No such power b4 1982 amend

-Rly Mazdoor Union

Vs.Registrar of Trade Unions,Kanpur

Triloki Nath tripathi Vs.All India Postal Worker Union

The registrar ask to change name of trade union if identical with any other union.and shall refuse the registration of union until such
alteration is effected
A.C.C.Rajnka Rayan Workmens Union Vs.Registrar of Trade Unions -writ under 226
DCM Chemicals Mazdoor Ekta Union Vs.Registrar of Trade Unions - natural justice
Kesoram Rayan Workmens Union Vs.Registrar of Trade Unions An existing trade union cannot claim any right to be heard b4
registration of rival union.
Kandan Textiles Ltd Vs.Industrial Tribunal Presumption
---------------------------------------------------------------------------------------------------------------------------------------------------------------------CANCELLATION /WITHDRAWAL OF REGISTRATION sec10
Sec 10(a) -The

registrar has to satisfy himself that the withdrawal or cancellation was approved by the general meetimg of the Trade Union or
by majority of the members of the tarde union .

Sec10(b)-Grounds

i.
ii.
iii.
iv.
v.
vi.

On application of trade union for cancellation

If certificate of registration obtained by fraud or mistake
Union has ceased to exist
Trade union willfully contravened the trade unionact or rules thereunder .
Trade unionhas any rules in force which is inconsistent with the provisons of the act
Trade union has not included any rule which is required to be included under the act.

Sec 10-Proviso Compulsory Notice

It is mandatory on the part of registrar to give 2 mon notice before cancellation or withdrawal on grounds mentioned .It is not
necessary to issue 2 notice .Such notice must specify the ground for cancellation or withdrawal .
But when the cancellation is W.R.T contravention of the act by trade union a prior notice has to be given apart from
mentioned notice .

Radheyshyam Singh Vs. Bala Mazdoor Union

Registrar refused registration coz of contravention of provison of act under sec 21that respondent willfully refused the appellant &few other to
enroll as member of union .Respondent in such case gave only one notice and no prior notice.In such case appellate court set aside cancellation
given by registrar.Contraventionof provision of act is ground for cancellation .the registrar has to find whether such contravention willful /not.
Nagde Rashtra Sevak Karamchari CongressVs. Industrial Court

Cancellation of registration of trade union by registrar W/O union will be violative of principles of natural Justice.
MEMBERSHIP IN TRADE UNION SEC 21

o
o
o

Admission to trade union is made subject to the rules of trade union .

But a person cannot claim as matter of absolute right to be admitted as a member of a trade union ./Act does not provide such rights.
Any person who have attained age of 15 and even minor who have attained 15 yrs can become a member of a trade union.

Mohd Ibrahim Vs.Assamol Iron &Steel Workers Union .

A mere description in the constitution of union of the qualification prescribed does not confer an absolute right for the person belonging to that
class to becoming a member .The court will not enforce such claim by issuing writ of mandamus.
OFFICE BEARER OF TRADE UNION SEC 22(AMEND 2001 )
unorganized sector :

Not less than of the office bearers of registered trade union in unorganized sector shall be persons actually engaged or employed in an
industry with which the trade union is concerned.(This is specified by appropriate govt by gazette notification and it also have power to grant
exemption)
Other cases:
Not less than 3/4th of the total office bearers shall be persons actually engaged or employed in the industry with which the trade union is
connected.
DISQUALIFICATION TO BECOME OFFICE BEARERS sec 21-A

1.
2.

Not attained age of 18 years

Convicted by the court in India for any offence involving moral turpitude and sentenced to imprisonment and period of 5yrs have
elapsed since on his release.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------

PROCEDURE TO CHANGE NAME : SEC 23

A regd trade union with the consent of not less than 2/3rd of the total number of its members ,change its name-

Rajendra nath roy

Vs. State of Bihar

SEC 25.(1)Written

notice of such change in unions name , signed by the secretary and 7 members of the trade union shall be sent to the
Registrar of Trade Union
SEC 25.(2)The registrar will refuse to register the change of name if the proposed name identical to the existing regd trade union.
25(3)If the registrar is satisfied with the change and its in compliance with Act and Rules of the trade union shall record such change in the
register and the change of name shall have effect from the date of such registration.
EFFECT OF NAME CHANGE : - SEC 26

The change of name shall not affect any rights or obligations of trade union
It does not affect the validity of any legal proceedings against the trade union inits old name
The same may be continued by it /against it by its new name.

CHANGE OF OFFICE BEARERS SEC 28(3)

A statement showing the changes of office bearers of trade union during the relavant year must be sent to the registrar along with annual
return and copy of rules of the trade union corrected up-to-date.
CHANGE/AMENDMENT OF RULES OF TRADE UNION SEC 28(3)
STEPS

i.
ii.
iii.
iv.

Acopy of every alteration made in rules of regd trade union sent to registrar within 15 days of making such alteration.
The registrar on receipt of it has to verify and satisfy whether such a change is in accordance with act and rules of the trade union.
If satisfied he shall record such changes in prescribed register and notify that fact to the secy of the union
Only after this amendment takes place

Oxygen Ltd Vs.Workmen

Company an all India Estd with 2 factories at jamshedpur & patna.Dispute arose relating to Overtme wages @ jamshedpur
with352 members represented by Indoxco Labour Union .The govt referred the dispute to the tribunal for adjudication .The union long back@
its gen.body meetingdecided for amendement and change the name of union to Indian Oxygen Workers Union so as toinc.all the worker under
estd co.in Bihar .
The tribunal :amendment made longb4 and the mere mentioning does not materially affect the position and dispute raised by
union in respect employees wherever stationed.To this SC held the provison of act not followed for the change of name and intimating to
registrar.as per amended rules.Sc held the view of Tribunal tobe erronousand award cant be extended to workers of ranchi factory.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------AMALGAMATION OF TRADE UNION Sec 24
Amalgamation means merger of two or more trade unions into a single trade unions By means of
1. Dissolution of such trade unions which are joining in amalgamation.
2. Without dissolution of trade union
3. With division of funds of such trade unions joining in the amalgamation
4. Without division of funds of such trade unions

Conditions for valid amalgamation

At least of the members of concerned trade union must partiicpate in the vote for amalgamation .
At least 60% of the vote recorded are in favour of the amalgamation.
Procedure :
i.
Written notice of amalgamation must be signed by the secy and 7other members of each and every such unions proposing for
amalgamation should be sent to the registrar.
ii.
The registrar after verification satisfied that the provisons of the act in respect of amalgamation have been compiled shall register the
amalgamation.
iii.
The amalgamation shall come into force from the date of such registration.
iv.
Such amalgamation by with /W/O dissolution and with /W/O division of funds .
v.
Amalgamation will not affect the rights and liabilities of individual unions b4 amalgamation
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------DISSOLUTION OF TRADE UNION SEC 27
i.
ii.
iii.
iv.
v.
vi.

A registered trade union may be dissolved at any time by following its own rules regarding dissolution .-It is mandatory condition that
a registered trade union s rules must contain detailed provision for dissolution of the trade union .
Written notice of dissolution must be signed by the secy and 7other members should be sent to the registrar with in 14 days of
dissolution .
The registrar after verification satisfied that the provisons of the act in respect of dissolution have been compiled shall register the
dissolution
The dissolution shall come into force from the date of such registration.
If the rules of Trade union does not provide for the distribution of fund on dissolution Registrar shall divide the funds among members
in such manner as he thinks fit. Or else in acc with the rules
If the rules of trade union do not provide for dissolution then it may be dissolve with the consent of all members /by order of the
court .
Outside Leadership:sec34

No of office bearers to trade union of employees of a industrial estd /undertaking from outside is limited to
2 numbers.; W.R.T union activities with 2 or more industrial estd not to exceed th of total number of office bearer of such trade union
The National Commission On Labour recommends to concentrate efforts to build up a strong leadership from within for eliminating outside or
political influence.
`
___________________________________________________________________________________________________________________
Industrial Regulation Bill 1978-

RIGHTS AND LIABILITIES OF TRADE UNION

1.

Fundamental Right :guaranteed right

Right to form trade union is a fundamental right guaranteed under article 19(1)(c).It is not available to all categories of jobs.
TN, N.G.O.Union Vs.Registrar Of Trade Unions

Civil servants engaged in the task of sovereign and legal aspect of the govt and they cant be included within definition of workman in
an industry in sec 2(s) &2(j) of the industrial Disputes Act .and therefore cant be regd as trade union under Trade Union Act 1926.
2.

Not fundamental Right : Concomitant Rights

Right to collective bargaining and strike are not fundamental guaranteed right
ALL India Bank Employees Association Vs National Industrial Tribunal

FINANCE OF TRADE UNIONS

It is an all important prerequisite for the effective functioning of trade union .The right to collect and conserve the fund is
recoognised to registered trade union by the trade union act .Gen and political fund shall not be mixed up and no compulsion shall be exerted
against members to contribute towards political fund.or made as condition precedent for admission of member in the trade union.Howevr the
control and mgmt of political fund can be exclusively be vested in the hands of only those members who have contributed to thepolitical fund.
GENERAL FUNDS:SEC15-should

be utilized only for the purposes

stipulated in sec 15 .
1.
2.
3.

salaries, allowances,expenses to office bearer of trade union.

2.for payment for admin of union audit of A/C
3.prosecution or defence of any legal proceeding to which
the trade union or any member is a party and for protecting
or securing any rights of the trade union.
4. 4.For conduct of trade disputes of the trade union /any
member thereof .
5. 5.Giving compensation for loss arising out of trade
disputes( 2 members).
6. 6. allowances to members /dependent on A/C of death ,old
age, sickness ,accident or unemployment
7. 7.for issue /undertaking liability under policy of assurances
on the lives of member against against sickness
,accident/unemployment.
8. 8. For providing education,social ,religious benefits to
mem/dependt.
9. 9.Upkeep the periodicals for purposes of discussing
questions affecting employer/workmen.
10. 10.Other objects as notified by appropriate govt by
notification.
Dhara Singh Vs.E.K.Thomas

Any amount received by the union for and on behalf of the members
is liable to be returned to the workmen concerned.

POLITICAL FUNDs :SEC16(2)specified .

1.

2.
3.
4.
5.

should be utilized only for the object

The payment of any expenses incurred by a candidate or

prospective candidate for election asa member of any
legislative body/any local authority .The expenses include
the expenses incurred before ,during or after the election in
connection with his candidature.
Holding of any meeting or distribution of any literature or
documents in support of such candidate or prospective
candidate.
Maintainence of any person who is member of any
legislative body or local authority .
Registration of electors or the selection of a candidate for any
legislative body or local authority .
Holding of any meeting or distribution of political literature
or documents to the members of thetrade union or to the
general public.

IMMUNITIES OF REGISTERED TRADE UNION SEC 18

Immunity means freedom from liability.Immunity is one kind of privilege .The Act grants certain kinds of limited immunity to
reg trade union , the office bearers and its members in respect of certain specified cases of civil and criminal liability
The object of granting such immunity is to allow the trade union to do the legitimate trade union activity without fear of being
subjected to civil suits and criminal prosecutions .These immunities are the most important and basic rights without which no trade union
activity , in its proper sense is possible..
1. SEC 17:IMMUNITY FROM CRIMINAL LIABILITY (Non appln to unregd trade union)

Acc to this sec office bearers and members of the registered trade union are not liable to be punished under sec.120(B)(2) of IPC for criminal
conspiracy
i.
if it involves any agreement between the members for furthering any of the objects for which the trade unions general funds may be
expended.
ii.
the agreement itself is not one to commit an offence.
Eg.two or more members ofa regd trade union agree to persuade the workers to commit assault or such other offences on the management will
not be protected by sec17.
SEC 17 is condusive to trade union activities without which the union officer ,members are exposed to criminal liability consequent to
exhortion for strike or such other means for ventilating grievances of the workers.
BASIS: The sec is based on sec 3 of English Conspiracy and Protection of property act 1875 as amended by sec 5(3) of the Trade Dispute Act
1906.
i.

Convey Vs.Wade

If the inducement was to break a contract without threat or violence then its not actionable.,if done in contemplation of trade dispute.
ii.

Rookes Vs. Barnard

If no threat , no violence no breach of contract but interference with the trade ,business or employment of some other person to dispose off his
capital/labour as he wills , its nt actionable provided it was done in contemplation of a trade dispute.
Indian Bank Vs.Federation Of Indian Bank Employees Union

It was held that strike or picketing at the sho or factory of the employer when done collectively or in combination by number of workers ,would
amount to a conspiracy at common law but it is protected under Trade Union Act .
Jay Engg.works Vs. State of W.B ; Railway Board Vs.Niranjan Singh ; M.P.Colters WorkersLtd Vs.United Colliers

Where it resort to unlawful confinement of persons ,criminal trespass or where it becomes violent and indulges in criminal force or criminal
assault or mischief to person or property or molestation or intimidation the exemption cannt be claimed.
Exemption : No exemption for an agreement to commit an offence or intimidation or molestation or violence which may amt to an offence.
Peaceful gathering during the work hours inside or outside estd should not violate the law but when such gatering comits an offence the
exemption is lost
2. SEC 18 :IMMUNITY FROM CIVIL LIABILITY

Sec 18(1) Barring jurisdiction of a civil court from entertaining an action for damages or an action to prevent commission of such
actionable wrong.
No suit or other legal proceeding shall be maintainable in any civil court office bearers and members of the registered trade union in respect of
any act done in contemplation or furtherance of a trade dispute to which a member of trade union is party on the ground that
i.
Such act induces some other persons to break a contract of employment
ii.
Interferences with the trade ,business or employment of some other persons.

Immunity from civil suits and liability is confined to act done in contemplation or furtherance of trade dispute -Western Indian Cine
Employees Vs.Filmalaya Pvt Ltd.

Breach of contract of employment purely on account of the inducement generarted by the act does not render it actionable by virtue of
provision.Protection ltd to breach of contract of employment and to not other contract
Inducement must be by lawful means and not prohibited by law of land.-Reserve Bank Of India Vs.Asnis Kusum .
Inducement by illegal means such as violence ,intimidation etc ,the trade union or its members cant claim any immunity from civil
suits to prevent commission of such wrongs -Central Bank Of India ,Ahamadabad Vs. Central Bank Officers Association.

SEC 18(2)IMMUNITY TO TRADE UNION AGAINST THE TORTIOUS LIABILITY FOR ACTS DONE BY THE AGENTS

A regd Trade Union is not liable for any tortuous act done by its agents in furtherance of a trade dispute if such agent acted.
i.
Without the knowledge of the executive committee of thetrade union
ii.
Contrary to the express instruction of the executive committee

The provision against the vicarious liability of the trade union for such acts done in furtherance of trade dispute by agent is envisaged
under the act .The provison is intended to protect trade union and not its agents.
Immunity from civil suits and liability is confined to act done in contemplation or furtherance of trade dispute

Rohtas Industries Staff Union Vs.State Of Bihar

The court enlarged the scope of immunity provisions.Due to non payment of bonus and failure to implement an existing awrd the
workers went on strike .Later they withdrew the strike on an agreement to refer the matter for arbitration .The arbitration award held that strike
was illegal .The main question in this case was whether the employer has any right to claim damages against the employees for participating in
illegal strike which caused loss of production and business .The court held that the conspiracy as a tort would become actionable if the real
purpose was to inflict damage as distinguished from serving bonafide and legitimate interest of those who joined the combination .Since the
object of strike inthis was improving wage prospects of the worker it is nt actionable though affected interest of employer.
i.

Rookes Vs. Barnard

Appellant Rookes was a draftman in the design office of B.O.A.C Design shop was subject of closed shop agreement .Rookes had
resigned his membership from the association of Engg and ship Building Draftman ,a regd Trade Union.When rookes refused to rejoinunion all
workers of design office decided and informed the mgmt that they resort to strike if rookes was not removed from service within 3
days.Therefore mgmt suspended and dismissed rookes from service.
Rookes brought action FOR DAMAGES .The jury directed to give damges which resulted out of dismissal throstrike.C.O.A.
reversed holding though tort of intimidation existed it didnt cover the case of threat of breach of contract .H.O.L restored T.C DECISION that
A).tort of intimidation existed and that comprehended threats of breaches of contract and inference with business.B)The immunity provision
sec 1&3 Of the Trade Dispute Act 1906 afford nodefence to the claim for damages.

3.IMMUNITY FROM AGREEMENT IN RESTRAINT OF TRADE

An agreement B/w the members of trade union though it operqates as restraint on trade is not void /voidable , but it is valid and binding on
themembers (asimilar agreement entered between two individual is void)

Privilleges of Registered Trade Union

1.
2.
3.
4.
5.

.Body corporate-perpetual sucession, common seal

Separate legal entity
Minor as a member
Political Fund
Immunity- civil, criminal conspiracy,tortuous act , agreement in restraint of trade

Rights Of Registered Trade Union

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

.Body corporate Rights &privileges available to body corporate to regd trade union
common seal in its own name.
Hold and dispose of both mov &immov property in its own name.
Enter into contract in its own name
Shall sue in its name for nay infringement of rights.
Spend gen.Funds for acheiveing its object
Shall change its name by following the name prescribed in the procedure laid down in the act
It has right to amalgamation by following the prescribed in the procedure laid down in the act.
It can include Minor as a member
Member of registered trade union has right to inspect all books of account and other related doc of the union at such time as
may be provided for in the rules of the trade union
k) An agreement B/w the members of trade union though it operqates as restraint on trade is not void /voidable , but it is valid
and binding on themembers
Duties And Liabilities Of Registered Trade Union

a) Spend gen.Funds for acheiveing its object mentioned in the act

b) Cannot gen.Funds for political purposes.If trade union is interested in the promotion of the civic and politicalinterest of its
members it may create a separate political fund and use for political purpose of trade union.
c) A notice to be given to registrar in case of change in name &address of the regd Trade union.
d) A notice regarding the altered rule of trade union given to registrar with in 15 days of such alteration
e) Not less than of the office bearers of registered trade union in unorganized sector and Not less than 3/4th of the total office
bearers in other cases shall be persons actually engaged or employed in an industry with which the trade union is concerned.
(This is specified by appropriate govt by gazette notification and it also have power to grant exemption)
f) To the registrar must send annually by regd Trde Union gen.statement audited (of recipts and expenditure), an audited
statement(end of year ) , statement showing change of office bearer during the year , copy of rules of the trade union
amended up to date.
g) Members to executive committee completed 18 yrs & no conviction for offence (or 5 yrs elapsed since conviction).
h) Such member shall not hold an office of profit in union/state as minister or other
i) Failure to submit returns /give notice upto Rs.5 and addl fine of Rs.5 for every default for eah week not exceed Rs.50/j) Person giving false information with the intention of deciving liable to be punished with fine which may extend to Rs.200/____________________________________________________________________________________________________
COLLECTIVE BARGAINING
Meaning (Beatrice Webb-1st time)
Collective Bargaining is a method by which the problems of wages and conditions of employment are resolved , amicably , peacefully and
voluntarily between labour and management. It is recognized as right of social importance and greater emphasis is placed on it by India s Five

Year Plans.Yet it is not elevated to the position of fundamental right to form association /union U/A 19(1)c) as was held by supremecourt in
Bank Employees Association Vs.National Industrial Tribunal .
The obligation to bargain collectively is mutual and so the union as well as the employer is under the duty to bargain , that- the
parties are required to meet at reasonable times and confer in good faith and negotiate an agreement which should be reduced to writing and
should be signed by both the parties and that either party is required to agree to a proposal or to make concession .
The term collective Bargaining is applied to those arrangements under which wages and conditions of employment are settled
by a bargain ,in the form of an agreement between employers /association of employers /workers organization .
REASONS FOR ITS GROWTH

An individual is free to bargain for himself and safeguard his own interest .But an employee is not in the same position to bargain
with his employer for his rights because he is in a weaker position b4 his master .However the position is different if a bargain is made by a
group of workers or by the trade union .They can negotiate and settle their terms with the employer in a better way and secure better wages &
better terms and conditions of employment It is possible because of the expert presentation of demands by skilled officials of the trade union
and its a peculiar feature.
SCOPE OF COLLECTIVE BARGAINING

i.
ii.
iii.

The common law emphasis of individual contract is shifted to collective agreement negotiated by and with representative groups.
The parties undertake towards one another certain obligation and create code for the trade .
The trade Union and employer or employers association by signing the agreement undertake tokeep the peace and not to resort to
strikes or lockouts for changing the agreed terms during the currency of the agreement .
iv.
It has the effect of imposing a limit on the freedom of the employer to run their business as they think fit as it is the voluntarily
negotiated agreement .
Collective bargaining = selfprotection to worker like rule of law in Industrial relations.-2 ways.
1.In presence of reserve of unemployed ,competitioneliminated i.e to offer services at lower price than their fellow worker getting
employment.
2. enables worker in fav condition to compel their employers toconsider wage improvement and other emolument & protect labour against
victimization and favouritism of employer .
OBJECT OF COLLECTIVE BARGAINING

1.Harmonise labour relation Promote industrial peace by creating equality of bargaining power between the employer and employee .
2.It is method adopted by trade union in championing the causes of their members.Both regd and unregd trade union can champion the causes
of worker
COLLECTIVE BARGAINING IN INDIAN CONTEXT

U.S.A-No state intervention until imperil on national economy ,health ,safety

England -No state intervention until imperil on national economy ,health ,safety
Japan-Right of collective bargaining in their constitution . No state intervention until imperil on mnational economy ,health ,safety
U.S.S.R-3 important factor for industrial Relation They have to carry out party policies ,ook after production interest , at same time
assume the traditional role to unions in furthering the interest of labour .

(take notes from history )

coz trade union movement in organized form emerged only recently .
Recognistion: During british period it was suppressed ,but in 1926 Trade union Act was passed trade unionism was recognized by
conferring immunities and previlleges to the trade union and its members.
Sectors:Collective bargaining recognition not only in the industrial sectors but in the agricultural ares as well
Incorporation Of Collective Bargaining : the rules of it incorporated into Industrial Dispute Act 1947in which provision has been
made for the appointment of concilliation officer as chairman who constitutes a conciliation board holding representative of employer
&employee .Thus they investigate the dispute and go from one camp to the other and to do all such things to arrive at a fair and
amicable settlement of dispute
Adoption :The ILO Has also adopted collective bargaining to solve industrial dispute in International Labour conference held in 1951
Late development

ADVANTAGES AND DISADVANTAGES OF COLLECTIVE BARGAINING

ADVANTAGES

1.
2.
3.
4.

DISADVANTAGES

Parties resolve their dispute in democratic manner avoiding

unnecessary litigation
Results in harmonious relationship between employer and
worker benefiting both
Its quick and efficient
It does not involve bitterness between the parties ,
unnecessary expenditure as in case of adjudication .

1.
2.
3.

Wage increase or other better amenities provided by the

virtue of collective bargaining will add to the cost of
production which in turn increase the price of the commodity
Ultimately the consumers are victims of collective bargaining
agreement and are kept out of bargaining table.
By and large the settlement are reached by the influence of
power politics than by the application of any rational
principle.The political party in power patronizing the
particular trade union very often takes undue advantage over
the other side .

BARGAINING POWER

A successful bargaining power requires that neither party shall control or dominate theother and there must be rough equivalence of bargaining
power between them .
Employer B.P- DEPENDS UPON AVAILABILITY OF SUBSTITUTE
LABOUR , MARKET DEMEND ,EFFECT OF CLOSUR EOF BUSINESS UPON
COMPANY ,CUSTOMER

Labour.B.P-DEPENDS UPON CAPACITY TO GO HARDSHIP DURING

STRIKE ,AVAILABILITY OF ALTERNATE EMPLOYMENT ,FINAANCIAL
POSITION OF UNION

SUCCESS OF COLLECTIVE BARGAINING

-Not only mutual eagerness tomaintain peace & create written collective agreement
-but also acceptance by management (inc.develop sound policies.procedure and practices) and labour (possibility to allocate responsibility for
breach of C.B.A)of their new atmosphere.
BARGAINING PROCESS

Complicated business yield less gain more ; Diplomatic endeavour probing into strength and weakness of opp party thus skillfully
&tactically handling the issues ; Demand parties to deal with prob open heart ,fair mind with certain std of good faith .
1) Separate Meeting Long before bargaining process parties have to hold separate meetings&discuss stand to be taken b4
conference table.This help reps to get necessary mandate to their commitment and demands at collective bargaining time .
2) Discussion : problems discussed horizontally and vertically and w.r.t max and min demands are to be evolved in such meeting
3) Approach By Union Leader: They shud have constructive role with rational approach taking into consideration capacity of the
employer and socio-economic effects and consequences of their extreme demand .Emotions are to be standardized into appropriate
channel.
4) Approach By Employer : They are expected to adopt a flexible stand with give and take spirit .
5) Conference: Following the private meeting the reps come b4 the conference table face to face ,problems discussed and debated ;
proposal , counter proposal are made ; sometimes adjournment made to enable reps for further discussion .
6) Contract : By this complicated process the parties may come to some settlement in which case contract will be drafted known as
collective bargaining contract
INITIATION OF BARGAINING AND PROBLEM OF RECOGNITION OF TRADE UNION .
INITIATION OF BARGAINING- Must be done by the employeee .But employer must respond

to such negotiation when requested by proper

agent of employee
In U.s- Failure to do so is unfair labour practice under Labour Management Relations Act .Where employer refuses on ground that union not
representing the majority of employees .it will be further handled by National labour Relation Board(interstate) /State labour Relation
Board(intra state).They hold election to decide whether union representing majority.
In India Trade union act does not compulsorily speaks about recognition of regd trade union.Thus it depend upon employer discretion.
National Commission on Labour Recommendation Accepted by govt.
considered appropriate to raise new union minof 7 regular employees of plant or 100 which ever is lower.
Recommended principle of one union and one industry which was accepted by all federation .but there is difference whether existing
membership should be the criteriaon or new ballots to be applied to choose the union.
Four labour member held their dissent regarding choosing on ballot which create complication &upset discipline.To be chosen on
membership alone.
If the recommendatn implemented it leads elimination of mushroom union and worker strength unified.
BARGAINING LEVEL

o Plant level for local consumption

o Industry wise Regional Level-If industries spread over a region eg.tea worker union
Scandinavian Countires ,France , Germany ,Italy,England &European Countries
o Industry wise National level - If industries spread throughout country- petroleum , post,Rly.

SUBJECT MATTER AND ENFORCEMENT OF COLLECTIVE BARGAINING

SUBJECT MATTER :

U.S, England , - parties freely determine subject within legal limit

Latin America contract inc specific ation regulating wages , working hrs ,etc.
India- circumscribed by law eg-fac act , employ S.O.Act , min wages act etc
ENFORCEMENT :

England Its a gentle agreement. By Ind.Relation.Act 1971 through labour tribunal but by Ind.Relation.Act 1974 repealed and
it remained as gentle agreement.
Latin America-Through court of law.
India- Enforceable under sec 18 of the Industrial Disputes Act . through labour cort /Industrial tribunal .
__________________________________________________________________________________________________________________
TRIPARTISM

It means reliance upon the advice of 3 parties to industrial relationand disputes i.e.Trade unions, employers ,government
The parties here do not decide but try to debate and advice about every thing.
It is a approach which stresses the identity of interest between capital and labour .It proceeds from 2 basic concepts.
1. relationship B/W workers and employers is one of the partnership in the maintainence of production and building up of national
economy .
2. The community as a whole and the individual employers are obliged to protect the well being of workers and to secure to them their
due share in the gains of economic development
Govt : is the most active party .It is one of the participant but decides nothing but take initiative in calling mgmt and labour together.
Representatives:They sit together in one kind of meeting or another and try to reach consensus and on that basis make recommendation
.
It is popular in Nanda period from 1957 and against giri approach
1947: tripartism embodied by Truce Resolution 1947 .
Chief instrument of tripartism :Annual labour conference advocatd proposal like worker edu, committees ,min wage legislation ,worker
participation in mgmt .
1958: Key stone of tripartite arch : Code of discipline in industry :put forth rights and liabilities of labour and mgmt under all agreement.
Educate mgmt, personnel, worker about those rights and responsibility .
Pledged parties to avoid strikes and lockouts w/o notice.
Pledged to avoid coersion ,victimisation ,partial strike &lock out
Provided for establishing and following grievance procedures.
Annual Conference and standing Labour Committee provided model grievance machinery for negotiations ,for implementation of labour
award,agreement and code of discipline.
.Since 1977 tripartite importance has gone down as annual Labour Conference are not held .In January 1990 after a long break in 1990 and
1997 such conference was held in which labour participation was highlighted.
___________________________________________________________________________________________________________________

Sec 29 :Power to make regulation

Manner of registration of trade unions, the rule of trade union ,the fees for registration
Transfer of registration in cases where the head office of union changed from one state to another
Manner of audit of the unions accounts and qualification of auditors
Condition for inspection of doc by the registrar and fees for it
Any other matter prescribed.
Sec 30 :make s condition precedent for making rules
Sec 30-A : such rules laid b4 parliament and state legislature.
Penalties & procedure

a)Sec 31: Failure to give return- returns /give notice/ statement /other document every office bearer /person bound /every meber of executive
trade union punishable with fine upto Rs.5 and addl fine of Rs.5 for every default for each week not exceed Rs.50/-.
b) Sec 32: Person giving false information i.e by member of regd trade union / prospective member -with the intention of deceiving liable to
be punished with fine which may extend to Rs.200/sec 33(1), (2)-Cognizance Of Offence

33(1)- No court inferior to that of presidency magistrate /magistrate of 1st class shall try offence
33 (2)-prescribes the procedural formalities for trial of such offences
Complaint shall be made within 6 mon of the date on which the date on which the offence is alleged tohave been committed.
Role Of Trade Unions

a. To secure for workers fair wages

b. To safeguard security of tenure and improve conditions of service
c. To enlarge opportunities for promotion and training
d. To improve working and living conditions
e. To provide for educational , cultural and recreational facilities.
f. To co-operate in and facilitate technological advance by broadening the understanding of workers on its underlying issues .
g. To promote the identity of interest of the workers with their industry
h. To cooperate in improving levels of production & productivity , discipline and highstd of equality and generality
i. To promote individual and collective welfare
National integration , socio economic policies , responsibility towards industry and the community.
Bluster Vs.Vasudevan

Employee office bearer engaged in Trade union activities during the office hr.The company refused to pay salary but prior it used to pay .the
Industrial court held that management aware of preoocupation.and tolerated practice by implication..Hence refusal to pay the salary violated
implied agreement between union and mgmt.
HC reversed the Judgement and refusing to pay the salary co, was not committing an unfair Labour Practice.and in withdrawing earlier
condition mgmt has not made any change in service conditions of employee.
There is no legal provison to enable office bearer to stay away from their allotted duties for trade union work .

LABOUR PARTICIPATION LEVEL

i.
Informative and associative participation
ii.
Consultative participation
iii.
Administrative Participation
iv.
Decision making Participation