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Trade Union

Industrial Relation and labour law Trade Unions

Trade Union

Meaning and Definition of Trade Union:

A trade union is an association of workers formed with the object of improving the conditions of workers. It is formed for protecting the interests of workers. Workers have little bargaining capacity when they are unorganized. In fact, trade union movement began against the exploitation of workers by certain managements under the capitalist system.

Labour unions or trade unions are organizations formed by workers from related fields that work for the common interest of its members. They help workers in issues like fairness of pay, good working environment, hours of work and benefits.

They represent a cluster of workers and provide a link between the management and workers.

A trade union is a combination of persons. Whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers or between workers for imposing restrictive conditions on the conduct of any trade or business and includes the federations of two or more trade unions as per Sec. 2 (6) Trade Unions Act, 1926.A Trade Union is an organisation of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining”. Trade Unions are voluntary organization of Workers as well as Employers formed to protect and promote the interest of their members.

A Trade Union is an organisation of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining”. Trade Unions are voluntary organization of Workers as well as Employers formed to protect and promote the interest of their members.

They are the most suitable organizations for balancing and improving the relations between the employer and the employees.

Trade Unions have made headway due to rapid industrial development. The workers come together to maintain and improve their bargaining power on wages and working conditions.

The trade union has been defined by different authors as follows:

(1) Webb: Trade union may be defined as “a continuous association of wage earners for the purposes of maintaining or improving the conditions of their working lives.”

(2) Lester: “A trade union is an association of employees designed primarily to maintain or improve the condition of employment of its members.”

(3) Indian Trade Union Act 1926: “Any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between the workmen and employers”.

Objectives of Trade Union:

The following are the objectives of trade union:

To improve the economic lot of workers by securing them better wages.
To secure for workers better working conditions.
To secure bonus for the workers from the profits of the enterprise/organization.
To ensure stable employment for workers and resist the schemes of management which reduce employment opportunities.
To provide legal assistance to workers in connection with disputes regarding work and payment of wages.
To protect the jobs of labour against retrenchment and layoff etc.
To ensure that workers get as per rules provident fund, pension and other benefits.
To secure for the workers better safety and health welfare schemes.
To secure workers participation in management.
To inculcate discipline, self-respect and dignity among workers.
To ensure opportunities for promotion and training.
To secure organizational efficiency and high productivity.
To generate a committed industrial work force for improving productivity of the system.

Functions of Trade Unions

Collective bargaining with the management for securing better work environment for the workers/ employees.
Providing security to the workers and keeping check over the hiring and firing of workers.
Helping the management in redressal of grievances of workers at appropriate level.
If any dispute/matter remains unsettled referring the matter for arbitration.
To negotiate with management certain matters like hours of work, fringe benefits, wages and medical facilities and other welfare schemes.
To develop cooperation with employers.
To arouse public opinion in favour of labour/workers.

Benefits of Trade Union

Workers join trade union because of a number of reasons as given below:

A worker feels very weak when he is alone. Union provides him an opportunity to achieve his objectives with the support of his fellow colleagues.
Union protects the economic interest of the workers and ensures a reasonable wage rates and wage plans for them.
Union helps the workers in getting certain amenities for them in addition to higher wages.
Union also provides in certain cases cash assistance at the time of sickness or some other emergencies.
Union organize negotiation between workers and management and are instruments for settlement of disputes.
Trade union is also beneficial to employer as it organizes the workers under one banner and encourages them follow to peaceful means for getting their demands accepted.
Trade union imparts self-confidence to the workers and they feel that they are an important part of the organization.
It provides for promotion and training and also helps the workers to go to higher positions.
It ensures stable employment for the workers and opposes the motive of management to replace the workers by automatic machines.
Workers get an opportunity to take part in the management and oppose any decision which adversely affects them.

A trade union is an association of workers formed for the purpose of protecting the rights of the workers and improving their economic conditions.

It can be defined as permanent organisation which tries to:

Improve economic conditions of labour,
Promote labour welfare, and
Protect the interest of workers by other means. Trade unions try to protect labourers’ interest and promote labour welfare in various ways.

In this sense, trade unions are formed to overcome weakness of labour, viz., weak bargaining power of an individual worker, impossibility of storing labour power for obtaining better price (i.e., securing higher wages), and excess supply of labour (or existence of surplus labour) which makes it possible for the employer to exploit workers with ease. Thus a trade union is a “voluntary organisation of workers formed to promote and protect their interests by collective action.”
Nowadays, the terms and conditions of work of the labourers are settled by negotiation between an employer or an employer’s organisation with the trade union. Such negotiation is called collective bargaining. Through collective bargaining, workers can secure higher wages and improved working conditions. In this sense, a trade union can be defined as the collective body of workers bargaining for

Proper wages and
Proper work-load

Trade unions are a collection of workers seeking to protect and promote their members’ interest. Their goals basically revolve around three themes: to influence the wage and benefits offered; to influence the administration of rules; and to establish a security system for its members.
Trade unions have now spread to all places and activities. It not only concerns workers in production, also office workers, computer staff and even supervisors and managers. This is especially the case in local and central government and in the publicly owned industries.

Theories Of Trade Union

A cross-country examination of trade unions reveals different ideologies influencing the evolu-tion and development of trade unions depending on social, economic and political conditions preva-lent therein. That is precisely the reason the objectives of trade unions and their place have been emphasized differently by different thinkers.

The various approaches/theories of trade unions can be classified into the following five types:

1. Revolutionary Theory:

Marx & Engels, in Germany, influenced trade unionism in various ways. To Marx, a trade union was first & foremost an organisation centre. It provided the locus for collecting the forces of working classes.

Referring to the struggle between the class of wage earners and the class of employers, Marx brings out that modern technique of production has concentrated the social means of production under the ownership of the capitalist who, thus, became the absolute master.

The theory of class war and dialectical materialism enunciated by Marx has created a class of trade unionists who regard labour organisation as essential to bring about a revolutionary and fundamental change, in the social order in which men are living.

From them trade unions are the instruments to overthrow capitalism. According to Marx, trade unionism thus represents a prime instrument of the class struggle between proletarian- workers and capitalist businessmen.

He believed that capitalism itself renders effective, although unintended, aid to its enemies by developing three tendencies —

a)the tendency of heavy concentration of wealth and capital in the hands of a few of the largest capitalists reduces the number of the natural supporters of capitalism,

b)the tendency towards a steady depression of wages and a growing misery of the wage-earning class keeps revolutionary order alive, and

c)the inevitable and frequent economic crisis under capitalism disorganise it and hasten it on towards destruction".

Marx advocated that the working class must not divert itself from its revolutionary programme and the labour struggle must be for the abolition of capitalism.

The revolutionary approach/theory of trade union is developed by Karl Marx “This theory is also known as “the theory of class war and dialectical materialism”. According to Marx, trade union was the foremost organising centre to provide locus for streamlining the forces of working classes The trade unions are, for Marx, the instruments to overthrow capitalism.

These are, thus, prime instruments of the class struggle between proletarian workers and capitalist businessmen. Marx advocated that the working class must not divert itself from its revolutionary programme because it is labour struggle only that can abolish capitalism. To Marx, workers’ emancipation involves abolition of capitalism

2. Evolutionary Theory:

The Webbs (Sydney and Beatrice Webb) in their work "Industrial Democracy" have put forward a non-revolutionary theory of industrial democracy.

They have considered trade unionism to be the extension of the principal of democracy in the sphere of industry.

Trade unions are regarded to be "institutions for overcoming managerial dictatorship to strengthen individual labourers and to give them some voice in the determinant of the conditions under which they have to work

In other words, trade unionism is not an instrument to overthrow the capitalism, but a means of equalizing the bargaining power of labour and capital.

Trade unionism provides a means by which workers overcome managerial dictatorship, on the one hand, and express their voice in the determination of the conditions under which they have to work, on the other.

3. Theory of Industrial Jurisprudence:

S.H. Slitchor, extending the Webbs' theory still further in his analysis of the purposes of unionism stated that wage-earners could not exercise much control over working conditions through individual bargaining because of various reasons.

In his view, "Individual bargaining is an unsatisfactory way of controlling work and working conditions because, employers who use methods which improve the labour supply, are not sure of gaining as a result and employers who use methods which spoil the labour supply suffer no direct loss".

Consequently, he believed that workers, through their unions, developed a system of work rules and traditions 'a system of industrial Jurisprudence* which served as a means of production to employees in their work.

From the study of American Labour Movement that the objectives of trade unionism change, Selig Perlman (University of Wisconsin, United States) propounded his ’Scarcity-consciousness theory of Labour Movement'.

According to S. H. Slitcher the propounder of the “Theory of Industrial Jurisprudence”, workers individually fail in bargaining with employers for pro-tecting their interests. In his view, trade unionism served as a means for workers to protect them in work. Such an approach of trade unionism, Slitcher termed as “a system of industrial jurisprudence”.

According to him, the character of the labour movement in any particular country must depend upon the particular combination of three factors:

1)the resistance power of capitalism determined by its own historical development,

2)the degree of dominance over the labour movement by the intellectuals’ mentality which regularly underestimates capitalism's resistance power and overtimes labour's will to radical change, and

3)the degree of maturity of trade union mentality".

He believes that the impulse of the employees is not "to suppress the employer but to supress their competitive menaces.

To do so they feel that they must organise into a union and engage in a class struggle against the employer.

It is labour's aim to continue increasing bargaining power and with its share of industrial control. Just as it is the employer's aim to maintain a 'status quo' or better.

Although this presupposes a continuous struggle, it is not a revolutionary but an opportunist struggle, while Marx conceived technical progress as the cause of class struggle, Perlman saw the forces of market as the basis of the conduct of organised labour and industrial struggle.

In his words "the beginning of class struggle has nothing to do machine technique and a capitalist ownership of the tools of production ... The underlying cause was the rapid extension of markets outrunning the technical development of industry".

Referring to the developments during the 17th to 19th centuries, he concluded that the class struggle instead of becoming sharper and sharper with advance of capitalism and leading to a social revolution, as predicted by Marx, grew less and less revolutionary in reality and led to a compromise or succession of compromises, viz., collective agreements.

4. Rebellion Theory:

To Frank Tannenbaum, the propounder of “Rebellion Theory”, trade unionism is a spontaneous outcome in the growth of mechanization. He believes that the use of machines leads to exploitation of workers. Thus, machine is the cause and labour movement, i.e., trade unionism is the result. In other words, trade

unionism is a rebellion approach against mechanisation automatization of industrial society to protect workers’ interest in the enterprise.

According to Frank Tannebaum, the emergence of trade unionism is spontaneous and inherent in the growth of capitalism. He believed that "the fundamental cause of exploitation of men is the use of machine and, therefore, the Labour Movement is the result and the machine is the major cause and thus the labour movement seems dastined to achieve complete control of the industrial functions of the community by substituting service for profit in industrial enterprise and with service democracy into industry".

Tannenbaum’s Theory of Man Vs. Machine: According to him Union is formed in reaction to alienation and loss of community in an individualistic and unfeeling society. In his words, the union returns to the workers his society, which he left behind him when he migrated from a rural background to the anonymity of an urban industrial location. The union gives the worker a fellowship and a value system that he shares with others like him. Institutionally, the trade union movement is an unconscious effort to harness the drift of our time and reorganise it around the cohesive identity that men working together always achieve.

5. The Gandhian Approach:

The Gandhian approach of trade unionism is based on “class collaboration rather than class conflict and struggle”. The idea to take worker’s due share from capitalist by reform and self- consciousness among workers led to the emergence of trade unionism. Thus the Gandhian approach of trade unionism is not only related to material aspect but also moral and intellectual aspects.

Gandhi emphasised that the direct aim of a trade unionism is not, in the last degree political. Instead, its direct aim is internal reform and also evolution of internal strength. Also, trade unionism, according to the Gandhian approach, is not anti-capitalistic as is generally viewed.

According to Gandhi Ji, class collaboration and harmony rather than class struggle led to the emergence of trade unionism. "It (Trade Unionism) is not anti-capitalistic. The idea is to take from

capital labour’s due share and no more, and this, not by paralysing capital, but by reform among labourers, from within and by their own self-consciousness, not again through the cleverness of non- labour leaders, but by educating labour to evolve its own leadership and its own self-reliant, self-existing organisation. Its direct aim is not in the last degree political. Its direct aim is internal reform and evolution of internal strength.

The direct result of this evolution when, and if it ever becomes complete, will naturally be tremendously political”.

The Gandhian approach to trade unionism is thus not only related to material aspect, but also to moral and intellectual aspects. Gandhi Ji emphasised that a trade union must strive for all-round betterments of the working-class including training of its members in a supplementary occupation.

Why Join A Trade Union?

Workers join trade union because of a number of benefits which they get from the union. These are explained below:

1.A worker feels very weak when he is alone. Union provides him an opportunity to achieve his objectives with the support of his other fellow beings.

2.Union protects the economic interest of the workers and ensures a reasonable wage for them, so it improves the economic lot of workers by securing higher wages, bonus, allowances and perquisites etc.

3.Union helps the workers in getting certain amenities for them in addition to higher wages e.g., house to live, congenial working conditions etc.

4.Union also provides (in certain cases) cash assistance at the time of sickness or termination of job.

5.Union conducts negotiation between workers and management and acts as a machinery for settlement of industrial disputes.

6.Trade union is also beneficial to employer as it organises the workers under one banner and encourages them to follow peaceful means for getting their demands accepted. It lessens violent class conflicts.

7.Trade union imparts self-confidence to the workers and they feel that they are an important part of the organisation and not simply a cog in the machine.

8.It imbibes sincerity and discipline among the workers.

9.It provides for promotion and training and helps the workers to go to higher positions. It challenges the promotions which are not made as per the promotion policy of the organisation.

10.It ensures stable employment for the workers and opposes the move of the management to replace the workers by automatic machines.

11.Workers get an opportunity to take part in the management and oppose any decision which adversely affects them.

Why do Workers Join a Trade Union? (Reasons)

Human beings are rational creature. They usually act upon rationally in different spheres of their lives. Similarly, workers join a union with a rationale approach whether joining a union will be beneficial or not. This can simply be decided by making a cost- benefit analysis in this regard. The excess of benefits over costs, i.e., profit or reward, justifies workers’ joining to a trade union.

Researchers have devoted a great deal of time and effort to study “why do employees choose to join a union.” They have failed to report a common list of reasons that apply to all organising efforts.

Nonetheless, there is a general agreement among the labour experts that certain issues are likely to lead to an organising drive by workers Major ones among them are the following:

Job Security:

Employees need to have a sense of job security and want to be sure that management will not make unfair and arbitrary decisions about their employment. They look unions to ensure that their jobs are duly protected against lay-offs, recall, promotion, etc.

Wages and Benefits:

Employees work for livelihood, i.e., bread-and-butter. Obviously, bread-and-butter issues of employees are always important issues in their unionization. The employees may think that the union, with its united strength, will ensure fair wages at par with those of other workers in the community, benefits such as medical facility, pensions, paid sick leave, vacations and holidays for them.

Working Conditions:

Employees like to work in a healthy and safe environment. Although there are statutory provisions for providing employees a safe work environment employees still feel more secured knowing that trade union is directly involved in safety and health issues relating to them.

Fair and Just Supervision:

The days are long gone when managers / leaders could rule employees with an iron fist. Thanks to the trade unions that brought about a change or shift in leadership styles from autocractic to democratic, or say, people oriented to ensure that the managers treat their employees fairly, justly, and respectfully. Employees can only be disciplined for “just cause.” In case of mistreatment from the employer, the employee may file a written grievance against the employer.

The complaint will be heard and resolved through a formal grievance procedure involving collective discussion by both union and management representatives.

Powerlessness:

Employees individually often feel voiceless or powerless to bring about changes that will benefit them’. But, it is union that provides them a powerful, collective voice to communicate to management their dissatisfaction and frustration. This is based on labour philosophy ‘unity is the strength”.

Need to Belong:

Man is a social animal. Hence, need to belong is strong in both his personal and work lives. The union, from this point of view, provides a mechanism for bringing people together not only to promote common job-related interests but also to organise programmes, functions, and social events from time to time, to create a strong bond among the union members’.

To conclude, the management’s failure in ensuring job security, fair remuneration, safe and healthy working conditions, fair supervision, involvement in decision making, sense of belonging etc., to employees motivates them to join a union.

Role of Trade Unions in India’s Socio-Economic System

One of the major defects of India’s trade unions is that their members are more concerned with their rights than with their duties. But rights and duties go hand in hand. As present, most trade unions confine their attention to the various demands of working class such as high wage, paid holidays, annual payment (income) in the form of bonus, and so on.
There is no doubt that trade unions are formed with the primary objective of protecting and advancing the interest of its members by negotiating wage rates and conditions of employment (number of hours worked, grounds for dismissal, etc.). As such, unions exert considerable influence on the wage rates, supply of labour and costs of production in individual industries.
In India, workers do not always discharge their responsibilities fully. They do not always put the maximum effort for the benefit of the organisation and for their own benefit also. They follow “go-slow” tactics. As a result, labour cost rises, or labour productivity falls.

Consequently, entrepreneurs find it profitable to substitute labour by capital. Thus, the negative attitude of union members adversely affects the prospect of employment creation in a labour surplus country like India.

At present, trade unions confine their attention to the workers demand only. Indian trade unions are more or less like strike committees. It is high time they developed among the workers a sense of discipline and responsibility to do a full day’s work for a fair day’s wages. The unions should make every worker understand fully his duties and responsibilities first and then his rights and privileges.

Moreover, trade unions should provide certain benefits to the workers such as compensation for accidents, medical aid, education, practical suggestions, thrift and temperance, etc.

Trends in Trade Union Movement:

Unions are becoming increasingly matured, responsive and realistic in their thinking and actions. Gone are the days of cat-call strikes, bundhs, gheraos and violence.

Discussion among trade union circles nowadays relate to such issues as the productivity, total quality management, technology, competition, MNCs, exports and the like. Major unions of the telecom employees, for example are on-line with the corporatization plans of the department. They are now more concerned about such things as gearing up for competition and inculcating a customer-friendly approach.

Unions have accepted that there is surplus labour everywhere and the fat needs to be shed. Unions are, therefore, extending co-operation to schemes like voluntary retirement and golden handshake. Thirty five thousand workers of National Textile Corporation alone have retired voluntarily.
Another trend witnessed these days is depolitisation of Unions. It may be noted that the federations of the unions are affiliated to one political party or the other. It may also be noted that the prominent national leaders in the post-independent India were popular trade union leaders.
Being affiliated to one political party or the other, the unions were following the footsteps of their big bosses instead of protecting the workers’ interests. Unions have realised the futility of such affiliations and are now separating themselves from political influence.

Unions are now formed on the basis of religion and caste. This is indicative of the socio-political realities. Workers’ associations in our country are highly fragmented and the consequences has been the multiplicity of unions caused by such factors as ideological rifts, personal ambitions of leaders, craft divisions among workers, and the management’s own myopia.
Multiplicity of unions weakens the bargaining strength of employees. Management’s position is no better. Union leaders too are conscious about the need for single union plans. Of late, unions have presented a common front on issues like industrial sickness and the National Renewal Fund.
Unions, of late, are demanding better utilisation of the fund and felt that the amount should not be used merely for financing voluntary retirement schemes.

One of the effects of trade union movement in our country has been the phenomenon of outsider leadership. Individuals who were not connected with a factory would assume leadership of the union. The clout of the central trade unions, which peaked during the post-nationalisation years, is gradually appearing.

One of the reasons for this trend is the gradual realisation on the part of the workers, who are young and well-educated, that independent unions are more advantageous than being affiliated to all-India federations.

Thus, the trade unions are at cross-roads. Their membership is declining, their political support is waning, public sympathy is receding, and their relevance itself is at stake. Management is, on the other hand, on the offensive. They are able to force unions to accept terms and conditions and sign on the dotted lines.

Unions should inculcate innovative leads to regain their lost ground. One possible way is to extent unionism to non-traditional groups such as white collar and professional workers. Another way is to give up their obsession with strike and start serving the members in a better way.

Advantages of Trade Union:

(a) Time is saved in pay negotiations when dealing with a union as compared to dealing with individuals. This is particularly relevant in respect of supervisors and managers where it helps to promote equitable schemes of remuneration and to avoid inequalities and possible consequent resentment.

(b) Where there is mutual respect that is, where morale is good employees can more easily be given a picture of the organisation’s problems and thus obtain
a better understanding of them through meetings with shop stewards and local union officials. Improved industrial relations should thus result.

(c) Workers feel the strength of association and thus are able to have, through union representatives, constructive discussions on procedures relating to working practices, disciplinary measures and the like. Where relations are good, worker dissidents are often contained by the majority of workers.

(d) Cooperation with trade unions may help an organisation to meet more easily the obligations placed on employers by government regulations and statutes.

(e) Changes in working practices and necessary redeployment of workers can be more easily effected if implemented with union co-operation. Where redundancies are inevitable union cooperation can be particularly helpful in obtaining fair compensation for those affected.
(f) Joint consultation is made possible and easy.

Disadvantages of Trade Union:

(a) Delay: Managerial decisions may be delayed because of the lengthy discussions necessary at plant and local union level for these decisions to be implemented. Effective joint consultation can help minimise this.

(b) Perspective practices: A powerful union, particularly where there is a closed shops (where all workers are required to be union members), can perpetuate and intensify restrictive practices unnecessarily. An example would be the insistence on a qualified electrician to change the plug on a simple machine such as an electric typewriter. This puts up costs and causes delays which create further costs.

(d) Unreasonable demands:

Unreasonable demands may be made on management or extra pressure created if a union is powerful, to the ultimate detriment of the organisation and even the industry.
There is no doubt that trade unions can contribute positively in all areas where they operate, provided their power is used properly and with discretion.

History of trade union in India

The first factories Act was passed in the year 1881 by virtue of recommendation of Bombay factory recommendation in the year 1985.The workers of the Bombay textile industry demanded that the working hour should be reduced, weekly holidays and compensation in case of injuries suffered by the workmen. Bombay mills hand association is first union established for workers by N.lokhande in the year 1890.

The first organized Trade Union in India named as the Madras Labour Union was formed in the year 1918. From the beginning itself, Trade Unions were not confined to workers alone. From 19thCentury itself there were Employer’s associations in the form of Chamber of Commerce, Industrial Associations etc. to protect and promote the interests of their members in a concerted manner. After independence, expansion of industrial activity and grouping worker’s Trade Unions acted as a spur for strengthening and expansion of employers’ organization

In industrially advanced countries, trade unionism has made a great impact on the social, political and economic life. India, being an agricultural country, trade unionism is restricted to industrial areas and it is still in a stage of growth. The earliest known trade unions in India were the Bombay Millhand's Association formed in 1890, the Amalgamated Society of railway servants of India and Burma formed in1897, Printers' Union formed in Calcutta in 1905, the Bombay Postal Union which was formed in 1907, the Kamgar Hitwardhak Sabha Bombay formed in 1910.

Trade Union movement began in India after the end of First World War. After a decade following the end of First World War the pressing need for the coordination of the activities of the individual unions was recognised.

Several Labour movements started after the outbreak of worldwar one. The miserable social and economic condition of the people at that time triggered the labour movement. Formation of ILO (international labour organization) leads to formation of trade unions .Ahmadabad labor textile association was formed under the guidance of Mahatma Gandhi principle of non violence.

Thus, the All India Trade Union Congress was formed in 1920 on a National Basis, the Central Labour Board, Bombay and the Bengal Trades Union Federation were formed in 1922. The All India Railwaymen's Federation was formed in the same year and this was followed by the creation of both Provincial and Central federations of unions of postal and telegraph employees.

The origin of the passing of a Trade Unions Act in India was the historic Buckingham Mill case of 1940 in which the Madras High Court granted an interim injunction against the Strike Committee of the Madras Labour Union forbidding them to induce certain workers to break their contracts of employment by refusing to return to work. Trade Union leaders found that they were liable to prosecution and imprisonment for bona fide union activities and it was felt that some legislation for the protection of trade union was necessary. In March, 1921, Shri N. M. Joshi, then General Secretary of the All India Trade Union Congress, successfully moved a resolution in the Central Legislative Assembly recommending that Government should introduce legislation for the registration and protection of trade unions. Opposition from employers to the adoption of such a measure was, however, so great that it was not untill 1926 that the Indian Trade Unions Act was passed.

All India trade union congress is formed in the year 1920 for the purpose of selecting the delegates for ILO, first meeting of AITUC was held in Bombay under the president ship of Lala Lajpat Rai in the year 1920 AIRF (All India Railways man Federation) was formed in 1922 , all the union consisting and compromising of railway workmen were made part of it and affiliated to it. AITUC witnessed the split because some members were in support of the war and other were not in support of the war, later group is separated as an organization under the leadership of congress leaders resulted in the formation of Indian National Trade Union Congress (INTUC) .Socialists also got themselves separated from the AITUC which resulted in the formation of Hind Mazdoor sabha in the year 1948. Therefore the splits and detachment can be observed resulting in creation of separate trade unions.

Indian Trade Unions Bill, 1925 having been passed by the Legislature received its assent on 25th March, 1926. It came into force on 1st June, 1927 as the Indian Trade Unions Act, 1926. By section 3 of the Indian Trade Unions (Amendment) Act, 1964 the word "Indian" has been omitted and now it is known as THE TRADE UNIONS ACT, 1926. This act summarizes all modalities pertaining to registration of trade union to decision of trade related disputes. This Act sets guidelines for both the workers and the industrialists. The Act deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensures that their funds are utilised properly. It gives legal and corporate status to the registered trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on their legitimate activities for the benefit of the working class.

TRADE UNION ACT, 1926

A trade union is an organized group of workers who strive to help the workers in the issues relating to the fairness of pay, good working environment, hours of work and other benefits that they should be entitled to instead of their labour. They act as a link between the management and workers. In spite of being newly originated institutions, they have turned into a powerful force because of their direct influence on the social and economic lives of the workers. Trade union is a voluntary organization of workers pertaining to a particular trade, industry or a company and formed to promote and protect their interests and welfare by collective action. They are the most suitable organisations for balancing and improving there relations between the employer and the employees. They are formed not only to cater to the workers’ demand, but also for inculcating in them the sense of discipline and responsibility.

The Act

In India, Trade Unions Act of 1926 is the principal Act for controlling and managing the working of trade unions. It deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensures that their funds are utilized properly. It gives legal and corporate status to the registered trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on their legitimate activities for the benefit of the working class. The Act is applicable not only to the union of workers but also to the association of employers. It extends to whole of India.

Important Definitions

Section 2 of the Act defines various terms used in the Act, some of the definitions are given here under:

Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted.[ Section 2 (a)]

Office-bearer in the case of a trade union, includes any member of the executive thereof, but does not include an auditor.[ Section 2 (b)]

Registered office means that office of a trade union which is registered under this Act as the head office thereof. [Section 2 (d)]

Registered trade union means a trade union registered under this Act.[ Section 2 (e)]

Trade dispute means any dispute between employers and workmen, or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labor, of any person, and “workmen” means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises.[ Section 2 (g)]

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. [Section 2 (h)]

Mode of Registration (Section 4)

Section 4 provides that 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 with the provisions of this Act with respect to registration, apply for registration of the Trade Union. However, 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.

Application for Registration (Section 5)

Section 5 stipulates that every application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely:

The names, occupations and address of the members making application;
In the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making the application;
The name of the Trade Union and the address of its head office; and
The titles, names, ages, addresses and occupations of the office-bearers of the Trade Union. Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed.

Provisions contained in Rules of Trade Union (Section 6)

A Trade Union shall not be entitled to registration under the Act, unless the executive thereof is constituted in accordance with the provisions of the Act, and the rules thereof provide for the following matters, namely:—

The name of the Trade Union;
The whole of the objects for which the Trade Union has been established;
The whole of the purposes for which the general funds of the Trade Union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act;
The maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the office-bearers and members of Trade Union;
The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as office-bearers required under section 22 to form the executive of the Trade Union;
The payment of a minimum subscription by members of the Trade Union;
The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members;
The manner in which the rules shall be amended, varied or rescinded;
The manner in which the members of the executive and the other office-bearers of the Trade Union shall be elected and removed;
The duration of period being not more than three years, for which the members of the executive and other office-bearers of the Trade Union shall be elected;
The safe custody of the funds of the Trade Union, an annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office-bearers and members of the Trade Union; and
The manner in which the Trade Union may be dissolved.

Certificate of Registration (Section 8)

The Registrar, on being satisfied that the Trade Union has complied with all the requirements of the Act in regard to registration, shall register the Trade Union by entering in a register, to be maintained in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanying the application for registration.

The Registrar, on registering a Trade Union under section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the Trade Union has been duly registered under the Act. (Section 9)

Incorporation of registered Trade Union (Section 13)

Every registered Trade Union shall:

be a body corporate by the name under which it is registered, and
shall have perpetual succession and
a common seal with power to acquire and hold both movable and immovable property and to contract, and
shall by the said name sue and be sued.

Cancellation of Registration (Section 10)

The Registrar, has the power to withdraw or cancel the registration certificate of any union in any of the following conditions:

On an application made by the trade union seeking to be verified in such manner as may be prescribed;
If the registrar is satisfied with the fact that the trade union has obtained the certificate by means of fraud or deceit;
If the trade union has ceased to exist;
If the trade union has willfully and after submitting a notice to the Registrar, has contravened any provision of the Act or has been continuing with any rule which is in contravention with the provisions of the Act;
If any union has rescinded any rule provided under Section 6 of the Act.

Appeals (Section 11)

Any union which is aggrieved by a refusal to register or withdrawal of registration made by the Registrar can file an appeal:

In any High Court, if the head office of the trade union is located in any of the presidency towns;
In any labour court or industrial tribunal, if the trade union is located in such a place over which the labour court or the trade union has jurisdiction;
If the head office of the trade union is situated in any other location, an appeal can be filed in any court which is not inferior to the Court of an additional or assistant choose of a principal Civil Court of original jurisdiction.

Rights and Liabilities of Registered Trade Unions (Sections 15-28)

Section 15 lays down the activities only on which a registered trade union can spend its funds. These activities include:

Salaries to be given to the office-bearers.
The cost incurred for the administration of the trade union.
Compensation to the workers due to any loss arising out of any trade dispute.
Expenses incurred in the welfare activities of the workers.
Benefits conferred to the workers in case of unemployment, disability, or death.
The cost incurred in bringing or defending any legal suit.
Publishing materials with the aim of spreading awareness amongst the workers.
Education of the workers or their dependents.
Making provisions for medical treatment of the workers.
Taking insurance policies for the welfare of the workers.
It also provides that the reason of non-contribution to the said fund and also a contribution to the fund cannot be made as a criterion for admission into the union.

Section 16 provides that a trade union, in order to promote the civic and political interests of its members can constitute a separate fund from the contributions made separately for the said purposes. No member of the union can be compelled to contribute to the fund.

Section 17 states that no member of a trade union can be held liable for criminal conspiracy mentioned under sub-Section 2 of Section 120B regarding any agreement made between the members of the union in order to promote lawful interests of the trade union.

Section 18 of the Act immunes the members of trade union from civil or tortuous liabilities arising out of any act done in furtherance or contemplation of any trade disputes.

Although as per Contract Act, any agreement in restraint of trade is void. But under Section 19 of the Trade Unions Act, 1926 any agreement between the members of a registered trade union in restraint of trade activities is neither void nor voidable. However such right is available only with the registered trade unions as the unregistered trade unions have to follow the general contract law.

According to Section 20, the account books and the list of the members of any registered trade union can be subjected to inspection by the members of the trade union at such times as may be provided under the rules of the trade union.

Section 21 provides that a person who is above 15 years of age can be a member of any trade union and if he becomes a member he can enjoy all the rights conferred upon the members of the trade union subject to the conditions laid down by the trade union of which he wants to be a part of.

Section 21A of the Act lays down the conditions the fulfillment of which disqualifies a person from being a member of the trade union. The conditions laid down in the Act are as follows:

If the member has not attained the age of majority;
If he has been convicted by any of the courts in India for moral turpitude and has been sentenced to imprisonment unless a period of five years has elapsed since his release.

Section 22 of the Act mandates that not less than half of the members of the trade union should be employed in the industry or work with which the trade union is connected. For example trade union is made for the welfare of the agricultural labourers then, as per this provision half of the members of such a trade union should be employed in agricultural activities.

Section 23 states that any registered union is free to change its name provided it does so with the consent of not less than 2/3rd of its members and subject to the fulfillment of the conditions laid down in Section 25 of the Act.

Section 24 lays down that two or more trade unions can join together and form one trade union with or without dissolution or division of the fund. Such amalgamation can take place only when voting by half of the members of each trade union has been effectuated and that sixty per cent of the casted votes should be in favour of the proposal.

Section 25 of the Act provides that:

A notice in writing of every change of name and of every amalgamation which is duly signed by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which is a party thereto, should be sent to the Registrar.
If the Registrar feels that the proposed name is identical with the name of any other existing Trade Union or, it so nearly resembles such name as it is likely to deceive the public or the members of either Trade Union, the Registrar may refuse to register the change of name.
If the Registrar of the State in which the head office of the amalgamated Trade Union is situated is satisfied that the provisions of this Act have complied with the amalgamation shall be given effect from the date of such registration.

Section 27 deals with dissolution of a trade union:

If a registered trade union has been dissolved, a notice of such dissolution which must be signed by seven members and by the Secretary of the Trade Union should be served to the registrar within 14 days of such dissolution and if the registrar is satisfied that the dissolution has been effected in accordance with the rules laid down by the trade union may register the dissolution.
Where a union has been dissolved but its rules do not lay down the way in which the fund is to be distributed after its dissolution, the registrar may distribute the funds in any prescribed manner.

Section 28 provides that each trade union should send the returns to the registrar annually on or before such a day as may be prescribed by the registrar. The return includes:

General statement
Audit report
All the receipts and expenditure incurred by the trade union
Assets and liabilities of the firm on the 31st day of December

Sub-Section 2 of the Section provides that along with the general statement a copy of the rules of the trade union corrected up to the date of dispatch thereof and a statement indicating all the changes made by the union in the year to which the statement is referred to be sent to the registrar.

Whenever any registered trade union alters its rules, such alterations should be conveyed to the registrar in a period of not less than 15 days from making such alterations.

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