TRADE DISPUTE

Section 2(g) in The Trade Unions Act, 1926 defines

(g) “trade dispute” as 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 labour,
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.

Privileges and Immunities of Registered Trade

Unions
The Trade Unions Act, 1926 confers certain privileges and immunities to the members
and leaders of the registered trade unions to enable them to carry out their legitimate trade
union activities without any fear or threat of civil or criminal action/liability. It is the most
important right without which the office bearers of the registered trade unions may not be
able to discharge their duties efficiently.

Section 17 of the Act provides immunity from Criminal liability and Section 18 provides
immunity from civil liability.

1. Immunity From Criminal Conspiracy

Section 17 of the Trade Unions Act, 1926 seeks to insulate trade unions activity from
liability for criminal conspiracy. It states that, no office-bearer or member of a
registered Trade Union shall be liable to punishment under sub-section of Section 120-B
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.

The immunity is, however, available only:

• to office-bearers and members of registered trade unions;

• for agreement;
• which further any such trade union object as is specified in section 15 of the Act;
and
• which are not agreements to commit offences.

The Calcutta High Court in Jay Engineering Works Ltd. v. Staff while interpreting the
provisions of section 17 of the Trade Unions Act, 1926 held that, no protection is
available to the members of a trade union for any agreement to commit an offence.

2. Immunity From Civil Actions

Section 18 of the Trade Unions Act, 1926, grants immunity to registered trade unions
from civil suits

No suit or other legal proceeding shall be maintainable in any civil court against any
registered trade union or any office bearer or member thereof in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the trade union is a
party on the ground only that such act induces some other person to break a contract of
employment, or that it is in interference with the trade business or employment of some
other person or with the right of some other person to dispose of his capital or his labour
as he wills.

A registered trade union shall not be liable in any suit or other legal proceeding in any
civil court in respect of any tortuous act done in contemplation or furtherance of a trade
dispute by an agent of the trade union if it is proved that such person acted without the
knowledge of, or contrary to express instructions given by the executive of the trade
unions.

In Rohtas Industries Staff Union v. State of Bihar, certain workmen went on an

illegal and unjustified strike at the instance of the union. A question arose
whether the employers have any right of civil action for damages against the
strikers. The arbitrator held that the workers who participated in an illegal and
unjustified strike, were jointly and severely liable to pay damages.

Enforceability of Agreements:

Section 19 grants protection to the agreements (between the members of a registered trade
union) whose objects are in restraint of trade notwithstanding anything contained in any
other law for the time being in force declaring such agreements to be void or voidable.