Part A

Ans 1

Trade Union Section 2(h) Trade Unions Act, 1926

"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

Trade unions are formed to protect and promote the interests of their members.

Their primary function is to protect the interests of workers against discrimination

and unfair labor practices

Trade union is an association either of employees or employers or of

independent workers.

It is a relatively permanent formation of workers. It is not a temporary or

casual combination of workers. •

It is formed for securing certain economic, social benefits to members. •

Collective strength offers a sort of insurance cover to members to fight against

irrational, arbitrary and illegal actions of employers. Members can share their

feelings, exchange notes and fight the employer quite effectively whenever he goes

off the track.

Trade Union: Section 2(h) defines which can be analysed into:

Any combination whether temporary or permanent.

The combination formed for the purpose of:

 Regulation relation between:

Workmen and employer.

Workmen and workmen.

Employers and employers.

Imposing restrictive condition of any trade or business:

Any agreement between parties to business.

Any agreement between employer to employment.

Any agreement in consideration of the sale of goods.

Objectives of Trade Union

• Wages or salaries

• Working conditions

• Discipline

• Personnel policies

• Welfare

• Employee-employer relation

• Negotiating machinery

• Safeguarding organizational health and interest of the industry

Functions of Trade unions

(i) Militant Functions (Activist or Revolutionary) (a) To achieve higher wages

and better working conditions (b) To raise the status of workers as a part of industry
(c) To protect labors against victimization and injustice

(ii) Fraternal Functions (Brother Relationship) • To take up welfare measures

for improving the morale of workers • To generate self confidence among workers •

To encourage sincerity and discipline among workers • To provide opportunities for

promotion and growth • To protect women workers against discrimination

Importance Of Trade Unions

• Trade unions help in accelerated pace (speed) of economic development in

many ways as follows: • by helping in the recruitment and selection of workers. • by

inculcating discipline among the workforce • by enabling settlement of industrial

disputes in a rational manner • by helping social adjustments. Workers have to adjust

themselves to the new working conditions, the new rules and policies. Workers

coming from different backgrounds may become disorganized, unsatisfied and

frustrated. Unions help them in such adjustment.

Ans 2

‘Workman’.

Section 2(s) of the Industrial Disputes Act, 1947, defines 'workman' to mean:

Any person (including an apprentice) employed in any industry to do any

manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire

or reward, whether the terms of employment be express or implied, and for the

purposes of any proceeding under this Act in relation to an industrial dispute,

includes any such person who has been dismissed, discharged or retrenched in

connection with, or as a consequence of, that dispute, or whose dismissal, discharge

or retrenchment has led to that dispute, but does not include any such person –

(i) who is subject to the Air Force Ad, 1950, or the Army Act, 1950, or the

Navy Act, 1957; or

(ii) who is employed in the police service or as an officer or other employee of

a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding

ten thousand rupees per mensem or exercises, either by the nature of the duties

attached to the office or by reason of the powers vested in him, functions mainly of a

managerial nature.

Broadly speaking, the definition requires that 'workman' must be:

(a) person,

(b) employed,

(c) in any industry,

 (d) to do the specified type of work,

(e) for hire or reward, but excludes certain specified categories of persons.

Test

The master’s power of selection of his servant

 The payment of wages or other remuneration

 The master’s right to control the method of doing the work

 The master’s right of suspension or dismissal

The scope of the aforesaid expression has been the subject-matter of judicial

interpretation in a series of decided cases. Let us turn to examine the scope of the

aforesaid expressions.

A. Person

'Workman' includes:

Any person employed in an industry,

An Apprentice,

Any person who has been dismissed, discharged or retrenched in connection

with,

or as a consequence of, that dispute,

or whose dismissal, discharge or retrenchment led to that dispute

B. Employed

The word' employed', however, is susceptible to two meanings:

(a) in a broader sense, it synonym of 'engaged' or 'occupied' and

(b) in a restricted sense, it involves the connotation of the master-servant relationship.

Ans 3

Industry Section 2 of the Industrial Disputes Act, 1947, defines industry as follows:

“industry” means any business, trade, undertaking, manufacture or calling of

employers and includes any calling, service, employment, handicraft or industrial

occupation or vocation of workmen.

From the above definition, industry appears to mean:

1) A business, such as merchandising,

2) A trade, such as cutler,

3) A manufacture, such as flour milling

4) An undertaking, such as an electricity company,

5) A calling, such as architect,

6) A services, such as transporter, or

7) An employment, which is a general term covering. Perhaps, the rest of the

vocations.

Section 2(j) is divided into two parts,

one which is from the perspective of the employer, and

the other which is from the perspective of the workman (industrial occupation

or avocation of workman), and both parts have to be read together.

Despite its immense importance, however, Section 2(j) is only illustrative in

nature and does not give any test or formula to determine what is an industry

In Bangalore water supply Vs. A Rajappa 1998 SC, the Hon'ble Apex Court

considering the scope of industry laid down the triple test,

 Where there is-

1. Systematic

2. Organised by

3. For the productn and/or activity corporatn distribution of between goods and

services employer calculated to & satisfy human employee, bonds and wishes

The following points are also emphasised in this case:-

a) Industry does not include spiritual or religious services or services geared to

celestial bliss.

b) Absence of profit motive or gainful objective is irrelevant.

c) The true focus is functional and the deceisive test is the nature of the activity

with special emphasis on the employer-employee relations.

In State of Bombay V. HospitalMazdoor Sabha•The SC held that hospitals is an

industry for thepurpose of retrenchment andreinstatement of its employees.

In University of Delhi v. Ramnath: The SC held that the work of imparting

education is more a mission and a vocation thanprofession or trade and thus,

university is not anindustry. The SC on the basis of triple test laid down inthe case

Bangalore water supply case, held thateven a university would be an industry.

In Madras GymkhanaClub Employees Union v.Management It was held that

club was a member’s self serving institution and not an industry but it was overruled

byBangalore water supply case. It was held that boththe cricket club of India and

Madras Gymkhana clubwould now be an industry because they fulfill thetriple

test.Both are systematically organised with thecooperation of employer &

employee for distributionof service to satisfy human wishes

Ans 6

Theminimum wage is the lowest wage that an employer is allowed to pay an

employee, according to a law or agreement.

Minimum wages have been defined as “the minimum amount of remuneration

that an employer is required to pay wage earners for the work performed during a

given period, which cannot be reduced by collective agreement or an individual

contract”

This definition refers to the binding nature of minimum wages, regardless of

the method of fixing them. Minimum wages can be set by statute, decision of a

competent authority, a wage board, a wage council, or by industrial or labour courts

or tribunals. Minimum wages can also be set by giving the force of law to provisions

of collective agreements.

The purpose of minimum wages is to protect workers against unduly low pay.

They help ensure a just and equitable share of the fruits of progress to all, and a

minimum living wage to all who are employed and in need of such protection.

Minimum wages can also be one element of a policy to overcome poverty and reduce

inequality, including those between men and women, by promoting the right to equal

remuneration for work of equal value.

Minimum wages Act, 1948 is a welfare legislation. It provides wages requires

for livelihood. The main object of the Act is to prevent exploitation of workers and to

determine minimum wages. (Edward Mills Co. Ltd. v/s State of Ajmer,1954)
 Section 2 h) Wages- all remuneration, capable of being expressed in term of

money, be payable to a person employed in respect of his employment or of work

done.

Section 3 to 9 of the minimum wages act, 1948 mentions the procedure for

the determination of minimum wages. Section 3(i) of the act provides that the

appropriate government shall be empowered to fix the minimum wages in the manner

prescribed under this act. It shall fix the minimum rates of wages payable to

employees employed in an employment specified in part 1 or part 2 of the schedule.

But the appropriate government may, in respect of employees employed in an

employment specified in part 2 of the schedule, instead of fixing minimum wages

under this clause for the whole state, fix such rates for a part of the state or part

thereof, thus the jurisdiction to determine the minimum wages is with the appropriate

government.

Section 3(1)(A) provides that the appropriate government may refrain from

fixing minimum rates of wages in respect of any scheduled employment in which

there are in the whole state less than 1000 employees engaged in such employment.

But if at any time the number of employees has risen to one thousand or more, then it

shall determine the minimum rates of wages.

Subsection (2) provides that the government may fix:

1.A minimum rate of wages for time work ( i.e., ‘a minimum time rate.’)

2.A minimum rate of wages for piece work (i.e., ’a minimum piece rate.’)
 3.A minimum of remuneration to apply in case of employees employed on

piece work for the purpose of securing to such employees a minimum rate of

wages on a time work basis which is known as “a guaranteed time rate.”

4.A minimum rate to apply in substitution for the minimum rate which would

otherwise be applicable, in respect of overtime work done by employees which

are known as “overtime.”

Fixation and Revision of Minimum Wages:

Sec.3 Fixation of the minimum rate of Wages:

1.Provides that the appropriate government may refrain from fixing minimum

rates of wages in respect of scheduled employment.

Case: Hydro Engineers Pvt. Ltd. v/s Workmen

2.Provides that the government may fix:

A minimum rate of wages for time work (a minimum time rate).

A minimum rate of wages for piece work (a minimum piece rate).

A minimum of remuneration to apply.

Overtime.

Sec.4 Minimum Rates of wages- fixed or revised by the appropriate government:-

1.A basic rate of wages and special allowance at a rate to be adjusted.Case: U.

Unichay v/s State of Kerala

2.The basic rate of wages with or without the cost living allowance.

3.An all-inclusive rate allowing for the basic rate, the cost of living.
Ans 7

Strike Section 2(q) IDA 1947

Meaning : Strike means the stoppage of work by a body of workmen acting in

concert with a view to bring pressure upon the employer to concede to their demands

during an industrial dispute. The workmen must be employed in any industry. Mere

cessation of work does not come within the purview of strike unless it can be shown

that such cessation of work was a concerted action for the enforcement of an

industrial demand Indian Iron and Steel Co. Ltd. v. Its Workmen, (1967) I LU 381

(pat).

Thus a Strike means:

(1) Cessation of work by a body of persons employed in any industry acting in

combination; or

(2) A concerted refusal of any number of persons who are or have been

employed in any industry to

continue to work or to accept employment; or

(3) A refusal under a common understanding of any number of persons who are

or have been employed in industry to continue to work or to accept employment.

Duration of cessation of work

As pointed out in this clause a cessation of work or refusal to work is an

essential element of strike.

There can be no strike if there is no cessation of work. However, the duration

of cessation of work is immaterial. Cessation of work even for half an hour amounts

to a strike. Patiala Cement Co. Ltd. v. Certain Workers, (1955) Il LU 57 (LAT).

Absence from work

What is required, therefore, is actual cessation of work for howsoever short a

period it may be. Mere absence from work is not enough but there must be concerted

refusal to work, to constitute a strike.' Ram Sarup and another v. Rex, AIR 1949

All 218.

The workers of a company wanted to celebrate "May Day". They requested the

employer of company to declare that day a holiday. They were also ready to

compensate the loss of work by working on a Sunday. On the Company's failure to

declare 'May Day' as a holiday the workers enbloc applied for leave. It was held that

there was no "cessation of work" or concerted refusal to work and the action of the

employees to apply for casual leave enbloc did not amount to strike. Standard

Vacuum Oil Co., Madras v. Gunaseelam, M.G., (1954) Il LU 1956

Kinds of Strike

There are mainly three kinds of strike, namely,

(1) General strike;

(2) Stay-in-strike; and

(3) Go slow.
 Part B

Ans 1

Chapter II of the Trade Unions Act, 1926 deals with the provisions of the

registration of trade unions. According to section 2 (h) of the Act, “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. Thus, the present article shall deal with the

most important aspect of trade union, and that is the registration of trade unions.

Appointment of Registrars

According to section 3 of the Act, the appropriate government shall appoint a

person to be the Registrar of Trade Unions for each state, and the appropriate

government shall also appoint as many additional registrars as it may deem fit to

carry out the purposes of the Act.

Mode of Registration

According to section 4 of the Act, any seven or more members of a Trade

Union in accordance with the provisions of the Act may make an application apply

for registration of the trade union. There are two conditions subsequent to the same,

firstly no trade union of workmen shall be registered unless at least 10% or 100 of the

workmen, whichever is less engaged in the employment of the establishment are its

members on the date of making of its application and secondly no trade union shall
be registered unless on the date of making of application, minimum seven of its

members who are workmen are employed in the establishment or industry.

Also, such application shall not be deemed to be invalid merely on the ground

that at any time after the date of the application, but before the registration of the

trade union some of the members but not exceeding half of the total number of

persons who made the application has ceased to be members.

Application for registration

According to section 5 of the Act, every application for the registration of the

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-

1.The names, occupations and addresses of the members making the

application;

2.The name of the trade union and the address of its head office, and

3.The titles, names, ages, addresses and occupations of the office- bearers

of the trade union.

Where a trade union has been into existence for more than a year, then a copy of the

assets and liabilities shall also be submitted along with the application for

registration.

Provisions to be contained in the rules of a Trade Union

According to section 6 of the Act, a Trade Union shall not be entitled to

registration under the Act unless the executive committee has been established in

accordance with the provisions of the Act and the rules provide for the following-

1.The name of the trade union;

 2.The whole of the objects for which the trade union has been

established;

3.The whole of the purposes for which the general funds of the trade

union shall be applicable;

4.The maintenance of a list of the members of the trade union;

5.The admission of ordinary members who shall be persons actually

engaged or employed in an industry with which the trade union is

connected;

6.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;

7.The manner in which the rules shall be amended, varied or rescinded;

8.The manner in which the members of the executive and the other office

bearers of the Trade Union shall be elected and removed;

9.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;

10.The manner in which the trade union may be dissolved.

Power to call for further particulars and to require alteration of name

According to section 7 of the Act, the registrar may call for further information

for the purpose of satisfying himself that whether all the particulars are in accordance

with section 5 and 6 of the Act.

 In case the trade union applying for registration bears a name identical to that

of an existing trade union and the registrar feels that the name so resembles that of

the other that there are fairs chances of the persons being misled then the registrar

shall ask the trade union applying to change the name and shall refuse to register the

same until such alteration has been made.

Registration

According to section 8 of the Act, if the registrar thinks that the trade union has

complied with all the provisions of the Act, it shall register the Trade Union by

entering in a register all the particulars in accordance with the provisions of the Act.

Certificate of registration

According to section 9 of the Act, the registrar shall issue a certificate of

registration to the trade union after registration under section 8 which shall be

conclusive proof that a trade union has been duly registered.

Cancellation of registration

According to section 10 of the Act, a certificate of registration of a trade union

may be cancelled or withdrawn or an application of the trade union to be verified in

such manner as may be prescribed; where  the registrar is satisfied that the certificate

has been obtained by fraud or mistake or the trade union has ceased to exist or has

willfully and other notice from the registrar contravened any provisions of the Act

and if the registrar is satisfied that a registered trade union ceases to have requisite

number of members.
Appeal

According to section 11 of the Act, any person aggrieved by any refusal to

register a trade union or withdrawal of registration, etc by registrar may file an appeal

where the trade union head office is situated within the limits of a presidency town to

the High Court, or where the head office is situated in an area, falling within the

jurisdiction of a Labour Court or an Industrial Tribunal, to that court or tribunal as the

case may be; where the head office is situated in any area, to such court, not inferior

to the court of an additional or assistant judge of a principal Civil Court of original

jurisdiction as the  appropriate government may appoint.

On an application to the appropriate forum, the court may either dismiss the

appeal or pass an order directing the registrar to take appropriate measures.

The court shall have the same powers of a civil court under Civil Procedure

Code, 1908 and may follow the same procedures.

The highest appeal can be made to the High Court.

Registered office

According to section 12 of the Act, all communications shall be made on the

registered office of the trade union

Incorporation of registered trade union

According to section 13 of the Act, every registered trade union shall be a body

corporate having a common seal and perpetual succession with power to acquire and

hold movable and immovable property and shall by the said name sue and be sued.
Conclusion

The presence of trade unions establishes a healthy relationship between the employer

and workmen with a sense of responsibility towards each other. Trade unions define

and channelize the rights of the workers with pressure on the employer to not deceit

them. The registration of Trade Union ensures that a trade union duly certified and

recognized and thereby the provisions for same are laid down exhaustively in the Act.
Ans 2

Strike and lockout are the actions taken by the employees and employers

respectively to fulfil their demands. The strike is the remedy for employees while the

lockout is the remedy is for the employer of the company or industry.

In the struggle between the employers and employees, lockout and strikes work

as weapons. Strike makes the effect on the production in the industry whereas the

lockout makes the effects on the salary of the employees. Law gives the room for

strike and lockout to place in the industry. But both must be peaceful and must fulfil

the conditions of the Industrial dispute act, 1947. Here, we will discuss what is strike

or lockout, strike and lockout under industrial dispute act, the definition of strike and

lockout, illegal strike and lockout and lockout and strike difference.

Strike Section 2(q) IDA 1947

Meaning : Strike means the stoppage of work by a body of workmen acting in

concert with a view to bring pressure upon the employer to concede to their demands

during an industrial dispute. The workmen must be employed in any industry. Mere

cessation of work does not come within the purview of strike unless it can be shown

that such cessation of work was a concerted action for the enforcement of an

industrial demand Indian Iron and Steel Co. Ltd. v. Its Workmen, (1967) I LU 381

(pat).

Thus a Strike means:

(1) Cessation of work by a body of persons employed in any industry acting in

combination; or

(2) A concerted refusal of any number of persons who are or have been
employed in any industry to continue to work or to accept employment; or

(3) A refusal under a common understanding of any number of persons who are

or have been employed in industry to continue to work or to accept employment.

Lockout:

"Lock-out" means the closing of a place of employment, or the suspension of

work, or the refusal by an employer to continue to employ any number of persons

employed by him.

Strike is a weapon in the hands of the labour to force the management to accept

their demands.

Similarly, lock-out is a weapon in the hands of the management to coerce the

labour to come down in their demands relating to the conditions of employment.

Lock-out is the keeping of labour away from work by an employer with a view to

resist their claim. There are four ingredients of a lock-out:

(i) Temporary closing of a place of employment by the employer, or

(ii) Suspension of work by the employer, or

(iii) Refusal by an employer to continue to employ any number of persons

employed by him;

Lock-out has been described by the Supreme Court as the antithesis of strike.

Kairbetta Estate Kotagiri v. Raja ManicbJm, AIR 1963 SC 893.

Difference between lockout and strike.

STRIKE LOCK-OUT

1 It is the weapon of employees It is the weapon of the employer against

against employers. employees.

2 Cessation of work by employees. Cessation of work by the employer.

3 It is a full cessation of work by It is a temporal shutdown by the

employees until the fulfilment of employer, refusal of employ.

their demands.

4 The reasons are often economic. Reasons can be economic or non-

economic

5 The strike is of various types. The lock-out does not have varieties.

6 The strike is conducted to gain a Lock-out is used to enforce the terms of

concession from the employer. employment during the dispute