CENTRAL UNIVERSITY OF SOUTH BIHAR

School of Law & governance

Subject – Labour Laws
Topic – Immunities to Trade Unions

Submitted to:
Dr. Ram Chandra Oraon
Submitted By:
Kumar Ankit
B.A. LL.B (H)
7th Semester
CUSB1613125023
Submission Date – 19th November, 2019

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 Acknowledgement

I owe a sincere thanks to many people who helped me and

guided me in writing of this project. My deepest thanks to my
course instructor Dr. Ram Chandra Oraon Sir for guiding and
helping at every stage during the completion of this project
with sincere attention and care.
Again, I would like to thank all mighty and my friends for
supporting me in whole process of this project completion. At
last, my deep sense of gratitude also goes to my friends,
institution and every single person who are related with this
project in any way and without whom this project would have
been a distant reality.

Kumar Ankit

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 Table of Contents

 Introduction………. Page 4

 Trade Unions…………….Page 5

 Development of trade Unions in India……………Page 6-8

 Trade Unions Act, 1926………………..Page 9

 Immunities to Trade Unions…………….Page 10-11

 Critical Analysis………………..Page 12

 Conclusion………………..Page 13

 Bibliography……………..page14

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 Introduction

Labour law is the area of law most commonly relating to the relationship between trade
unions, employers and the government. While the development of the field in different
jurisdictions has resulted in different specific meanings of what is meant by labour law, it is
generally used in reference to employment contexts that involve a trade union, while the
term employment law is usually used for workplaces where the legal relationship is directly
between the employer and the employee. While in some jurisdictions the term may be used
to refer to such law that may not involve trade unions, the genesis of the term is historically
inseparable and begins with the labour union movements.

At the statutory level, Labour law is concerned with the establishment of a labour-relations
framework that provides for orderly and peaceful industrial relations between employers
and organized workers, and usually includes rules on forming a union, conditions under
which the union becomes bargaining agent, strikes and lock-outs, process for negotiations,
and other structural elements that then permit the employer and the union to bargain a
collective agreement and fill-in the rest specific to rules and conditions relating to the
workplace. It arises primarily from and in the context of British common law and related
jurisdictions, to which it is also historically linked as wage work begins in the Industrial
Revolution, and in this way, labour law and related concepts mark a departure from the
tradition of contract law that existed previously for master-servant relations to that point.
Labour law is not the law that regulates minimum standards of employment in most British
common law jurisdictions, but is the law that pertains to the rules meant to provide a
framework for labour relations and collective bargaining. Employment law, or employment
standards law, refers to the regulations in statute law that establish minimum conditions
relating to the employment of persons, such as minimum working age, minimum hourly
wage, and so on.1

1
https://en.wikipedia.org/

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 Trade unions

Trade unions are associations of workers and are formed with the intention of protecting
the workers against exploitation of the employers and also to improve the workers’
conditions. The industrial revolution in England and in other countries and the advent of the
factory system of production are greatly responsible for the emergence of trade unions.

The modern industrial establishments employ the workers in conditions which make them
helpless in bargaining individually. The workers are unorganised and are subject to
exploitation by the employer. This exploitation of the employers is resented by the working
class. Hence they form unions to protect themselves against the exploitations of the
employers. Thus, the trade union movement arose for the purpose of defending their rights,
for improving their living and working conditions and for protecting their interests. From a
small beginning, this movement has now grown into worldwide movement for achieving
social justice, economic equality and preservation of democratic values of life.

 Definitions of Trade Unions:

Trade union is a voluntary organisation of workers formed to protect and promote their
interests through collective action. It may be formed on plant basis, industry basis, firm
basis, regional basis or national basis. Different writers and thinkers have defined the trade
union differently. Following are some of the definitions:2

 Trade union is a “continuous association of wage earners for the purpose of

maintaining and improving the conditions of their working lives.” – Web
 “A trade union means an association of workers in one or more occupation—
an association carried on mainly, for the purpose of protecting and advancing
the members’ economic interests in connection with their daily work’. – G.D.H
Gole
 “A trade union is an association of employees designed primarily to maintain
or improve the conditions of employment of its members.” – Lester
 A trade union is a continuous association of persons in industry, whether
employers, employees or independent workers—formed primarily for the
purpose of the pursuit of the interest of its members and of the trade they
represent. – The Trade Unions Act, 1926

2
http://www.yourarticlelibrary.com/

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Development of Trade Unions in India:
The development of trade unions in India has been a gradual process expanding over a
period of nearly 30 years. The six phases of trade union movement in India are as follows: A.
Pre-1918 Phase B. 1918-1924 Phase C. 1925-1934 Phase D. 1935-1938 Phase E. 1939-1946
Phase F. 1947 and since.

Trade unionism is a world-wide movement. The evolution and growth of trade unionism has
been sine qua non with growth in industrialisation. Accordingly, the evolution of trade
unionism in India is traced back towards the latter half of the nineteenth century. The origin
and development of trade union movement in India may well be studied under distinct
phases with their distinguishing features from others.3

 Pre-1918 Phase: The setting up of textiles and jute mills and laying of
the railways since 1850 paved the way for that emergence of industrial
activity and, in turn, labour movement in India. Some researchers have
traced the origin of labour movement in India dated back to 1860. However,
most of the writers on the subject trace the history of labour movement in
India since 1875. The first labour agitation, under the guidance and
leadership of Mr. S. S. Bengalee, a social reformist and philanthropist, started
in Bombay in 1875 to protect against the appalling conditions of workers in
factories, especially those of women and children and appealed to the
authorities to introduce legislation for the amelioration of their working
conditions. As a result, the first Factory Commission was appointed in
Bombay in the year 1875 and the first Factories Act was passed in 1881. Mr.
N. M. Lokhande may be said to be the founder of organised labour
movement in India who founded the first trade union in the country, namely,
the Bombay Mill Hands Association (1890).

 1918-1924 Phase: The phase 1918-1924 is considered as the era

of formation of modem trade unionism in the country. The trade union
movement got momentum just after the close of the World War I. The post-
war economic and political conditions contributed to the new awakening of
class consciousness among the workers. This led to the formation of trade
unions in the truly modem sense of the term. As a result, Ahmedabad Textile
Labour Association (1917), led by Shrimati Ansuyaben Sarabhai; the Madras
Labour Union (1918), led by B. P. Wadia; Indian Seamen’s Union, Calcutta
Clerk’s Union; and All India Postal and RMS Association were formed.

3
http://www.yourarticlelibrary.com/

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  41925-1934 Phase: With increasing hardships of workers, the
signs of militant tendencies and revolutionary approach in trade unionism
got expression into violent strikes since 1924. The communists gained
influence in L trade union movement during this period. They split the Trade
Union Congress twice with their widening differences with the left-wing
unionists. The moderate section under the leadership of Mr. N. M. Joshi and
Mr. V. V. Giri seceded from the Congress and set up a separate organization
named the National Trade Unions Federation (NTUF).

 1935-1938 Phase: The Indian National Congress was in power in

seven provinces in 1937. This injected unity in trade unions. As a result, the
All India Red Trade Union Congress itself with the AITUC in 1935. After three
years in 1938, the National Trade Union Congress (NTUC) also affiliated with
the AITUC. Other factors that contributed to the revival of trade unions were
increasing awakening among the workers to their rights and change in the
managerial attitude towards trade unions. In 1938, one of the most
developments took place was the enactment of the Bombay Industrial
Disputes Act, 1938. An important provision of the Act, inter alia, to accord
compulsory recognition of unions by the employers gave a big fillip to the
growth of trade unionism in India.

 1939-1946 Phase: Like World War I, the World War II also

brought chaos in industrial front of the country. Mass retrenchment
witnessed during the post-World War II led to the problem of unemployment
.This compelled workers to join unions to secure their jobs. This resulted in
big spurt in the membership of registered trade unions from 667 in 1939-40
to 1087 in 1945-46. The year 1946 was also marked by two important
enactments, namely, the Industrial Employment (Standing Orders) Act, 1946
and the Bombay Industrial Relations Act, 1946. Both the Acts, through their
provisions, contributed to strengthen the trade unionism in the country.

 1947 and Since: Proliferation of trade unions in the pattern of

proliferation of political parties has been a distinguishing feature in the trade
union history of India during the post-Independence period. In May 1947,
the Indian National Trade Union Congress (INTUC) was formed by the

4
Same as page 6

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nationalists and moderates and was controlled by the Congress Party. Since
by then, the AITUC is controlled by the Communists. The Congress socialists
who stayed in AITUC at the time of the formation of INTUC subsequently
formed the Hind Mazdoor Sabha (HMS) in 1948 under the banner of the
Praja Socialist Party. Subsequently, the HMS was split up with a group of
socialist and formed a separate association, namely, “Bhartiya Mazdoor
Sabha” (BMS) which is now an affiliate of the Bhartiya Janata Party (B JP).
Years after, the communist party split into various fractions forming the
United Trade Union Congress (UTUC) and the Center of Indian Trade Unions
(CITU).

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 Trade Unions Act, 1926

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 the 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.

In India, the first organised trade union was formed in 1918 and since then they have spread
in almost all the industrial centres of the country. The legislation regulating these trade
unions is the Indian Trade Unions Act, 1926. 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. The Act is applicable not only to the
union of workers but also to the association of employers. It extends to whole of India. Also,
certain Acts, namely, the Societies Registration Act, 1860; the Co-operative Societies Act,
1912; and the Companies Act, 1956 shall not apply to any registered trade union, and that
the registration of any such trade union under any such Act shall be void. The Act is
administered by the Ministry of Labour through its Industrial Relations Division. The Division
is concerned with improving the institutional framework for dispute settlement and
amending labour laws relating to industrial relations. It works in close co-ordination with the
Central Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets a
stable, dignified and efficient workforce, free from exploitation and capable of generating
higher levels of output. The CIRM, which is an attached office of the Ministry of Labour, is
also known as the Chief Labour Commissioner (Central) [CLC(C)] Organisation. The CIRM is
headed by the Chief Labour Commissioner (Central). It has been entrusted with the task of
maintaining industrial relations, enforcement of labour laws and verification of trade union
membership in central sphere.5

5
https://archive.india.gov.in/

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 Immunities to Trade Unions in India

The repealing of mediaeval statutes opened the theoretical possibility of free bargaining
between workmen and employers (subject, of course, to the provisions of the minimum
standard statutes). If the terms of employment were not satisfactory, the worker could
withdraw his labour until the employer paid more. If the terms were too onerous, the
employer could suspend the work until the workmen accepted less. But, in practice,
mechanization of industries which took away the importance of their craftsmanship, surplus
labour market which made alternative cheap labour available, the statutes penalizing
breach of contract under which workmen except on pain of imprisonment, agitated for
better terms and the overall economic superiority of employers heavily tilted the bargaining
power in favour of the employer and the workmen became helpless participants. Until 1926,
unions of workers indulging in strike and causing financial loss to management were liable
for illegal conspiracies. For instance in Buckingham and Camatic6 Mills the unions were held
liable for illegal conspiracies and employers were awarded damages. It was only in 1926 that
the Trade Unions Act, 1926 immunises trade union activity, from restraint of trade and
conspiracy. But these provisions are of pre- constitutional era. These statutory provisions
must now be considered in the light of the Constitutional guarantees of the right to freedom
of speech and expression, to assemble peaceably, to form associations and unions, to
practice any profession and to carry on any occupation, trade or business, and grants
protection against economic exploitation. This paper seeks to examine the nature and scope
of the immunity afforded to the members and office-bearers of registered trade union from
civil and criminal conspiracies and restraint of trade under the Trade Unions Act, 1926.

 Immunity from Criminal Conspiracy:7 Section 17 of the Trade

Unions Act, 1926 seeks to insulate trade unions activity from liability for criminal
conspiracy. No office-bearer or member of a registered Trade Union shall be liable to
punishment under sub-section (2) of Section 120B of the Indian Penal Code in
respect of any agreement made between the members for the purpose of furthering
any such object of the Trade Union as is specified in Section 15, unless the
agreement is an agreement to commit an offence.

6
1953 AIR 47, 1953 SCR 219
7
“Immunities of Trade Unions in India” – SC Srivastava

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  Immunity from Civil Suits:8 No suit or other legal proceeding shall be
maintainable in any Civil Court against any registered Trade Union in the following
activities and circumstances.

o Delay in the matters relating to the member of the Trade Union regarding
the trade disputes like ‘contract of employment’, (is an agreement between
an employer and an employee which sets out their employment rights,
responsibilities and duties.)
o Trade Union or its members showing interest or interfering in matters of the
trade or business.
o Trade Union or its members showing interest or interfering in matters of the
employment of the persons.
o Trade Union or its members showing interest or interfering in matters of the
removal of labour.
o Trade Union or its members showing interest or interfering in matters of the
removal of labour.
o Registered Trade Union shall not be liable in any suit or other legal
proceeding in any Civil Court for the tortuous act (wrongful act) committed
by the agent of the Trade Union.
o Registered Trade Union is not liable for the vicarious liability (if agent
commits mistake intentionally without the knowledge of the Trade Union,
agent is liable but not the Trade Union).

8
http://www.whatishumanresource.com/

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 Critical Analysis

From the aforesaid discussion there emerge some notable conclusions:

(i) The protections afforded to trade unions are of pre-constitutional era and
requires re-examination in the light of the constitutional guarantee given under
article 19 of the Constitution.
(ii) (ii)The nature and scope of immunity from criminal liability afforded members
and officers of the registered trade unions are very limited.
(iii) The criminal and civil immunities are available to the members and officers of
the registered trade unions. This needs to be re-examined particularly when the
registration of trade unions is not compulsory and they are permitted to bargain
with the employer on the same footing as that of registered trade unions.
(iv) The immunity from criminal liability is only limited to agreement between two or
more persons to do, or cause to be done, acts which are prohibited by law but
which neither amounts to an offence nor furnishes ground for civil action. In
other words no protection is available to the members or officers of a registered
trade union for any agreement to commit an offence.
(v) Section 18 does not afford protection from civil liabilities. (vi)
(vi) The scope of the expression in contemplation or furtherance of a trade dispute
to which a -member of a trade union is a party is narrower than the ambit of
protection under section 17 of the Trade Unions Act, 1926.

The Trade Unions Act, 1926 "closed shop" agreement does not provide for enforceability of
an agreement between the management and workers trade union which ultimately leads to
validating agreement which is invalid being in restraint of trade under section 27 read with
Sections 23 and 24 of the Contract Act, 1872.9

9
“Immunities of Trade Unions in India” – SC Srivastava

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 Conclusion
The evolution of the immunity of trade unions and their members reflects on the tussle
between the legislative intent of according trade union activity freedom and the laissez faire
induced ideology of the judges which was unfavourable to any such concessions. The
extension of forms of tortuous liability to trade unions and their activity was a manifestation
of exactly this dichotomy. The development in this law has led to a multiplicity of legislation
and conflicting judicial opinion as well.

The Indian legislation of 1926 has crystallised some of the immunity that had been present
in English law due to the Act of 1906. However, there has been considerable development
of the law in the latter jurisdiction with the result that there are better safeguards for trade
union activity in England as compared to India where the law has been frozen after the
enactment. The case law development in India with regard to the protection granted has
also not developed the law greatly as it has done in the United Kingdom.

The position after the enactment of the Trade Disputes Act, 1965 should be favoured. The
right of the trade unions to threaten to resort to collective agitation mechanisms such as
strikes must be recognised as has been done in the United Kingdom.

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 BIBLIOGRAPHY

 Websites:
 https://en.wikipedia.org/

 http://www.yourarticlelibrary.com/
 https://archive.india.gov.in/
 http://www.whatishumanresource.com/

 Articles:
 “Immunities of Trade Unions in India” – SC Srivastava
 “Immunity of Trade Unions For Inducing Breach of Contract: A Study of the Evolution
of English Law and its Application in India” – Kunal Ambasta

 Books:

KM Pillai, Labour and Industrial Law(Allahabad ; Allahabad Law Agency)

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