LABOUR LAW ASSIGNMENT

ON
TRADE UNIONS
 INTRODUCTION
In order to safeguard and advance the interests of their members, employers and workers
voluntarily organise as trade unions. These are the best kinds of companies to work for if you
want to improve and maintain a healthy balance between employers and employees. The quick
development of the industrial sector has helped trade unions advance.

In order to preserve and strengthen their negotiating position over pay and working conditions,
the employees’ band together. The Madras Labour Union, India's first officially recognized trade
union, was established in 1918. Trade unions were never limited to just workers from the start.

The Trade Unions Act, 1926 (Erstwhile Indian Trade Unions Act) defines the term ‘Trade Union’
as 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.

The rights of workers are collectively asserted through trade unionism. Trade unions are focused
on the welfare of its members, which includes

 Giving them better chances for training and advancement as well as fair pay.
 Preserving tenure security and enhancing their working circumstances.
 Enhancing the living and working circumstances of employees.
 Supplying amenities for culture, education, and recreation.

Following the First World War1, the Indian trade union movement got started. The urgent
necessity for the separate unions' operations to be coordinated was realized a decade after the
First World War's conclusion. Consequently, the Central Labour Board was established in
Bombay in 1920, the All-India Trade Union Congress was organized on a national basis, and the
Bengal Trades Union Federation was established in 1922. In the same year that the All-India
Railway men’s Federation was established, unions representing postal and telegraph workers also
established Provincial and Central federations.

1
Vikram Shroff and Akshay Bhargav, Trade Unions Act And State Laws Provide Legal Protections To Trade Unions
In India, SHRM Legal Report, March 2010
The historic Buckingham Mill case of 1940, in which the Madras High Court granted an interim
injunction against the Madras Labour Union Strike Committee, prohibiting them from pressuring
specific workers to violate their employment contracts by refusing to return to work, served as
the impetus for the passage of a Trade Unions Act in India.

Trade union leaders believed that legislation was required to protect their organization after
learning that their actions could result in prosecution and incarceration. A motion advocating for
the government to enact legislation for the registration and protection of trade unions was
successfully moved in the Central Legislative Assembly in March 1921 by Shri N. M. Joshi, the
General Secretary of the All India Trade Union Congress at the time. However, employer
resistance to the passage of such a law was so strong that the Indian Trade Unions Act was not
passed until 1926.

On March 25, 1926, the Legislature granted its assent to the Indian Trade Unions Bill, 1925. As
the Indian Trade Unions Act, 1926 (16 of 1926), it became operative on June 1st, 1927. The term
"Indian" has been removed by section 3 of the Indian Trade Unions (Amendment) Act, 1964 (38
of 1964), and it is now referred to as THE TRADE UNIONS ACT, 1926 (16 of 1926).

Today, the Bharatiya Mazdoor Sangh (“BMS”), the Indian National Trade Union Congress
(“INTUC”) and the AITUC are considered to be the largest trade unions in India. Also, the
country’s manufacturing sector in particular, is heavily unionized2

OBJECTIVES OF TRADE UNIONS

2
Vikram Shroff and Akshay Bhargav, Trade Unions Act And State Laws Provide Legal Protections To Trade Unions
In India, SHRM Legal Report, March 2010
1. Wages and Salaries: The topic that the trade unions appear to be most concerned with is
wages and salaries. This item may, of course, have something to do with policy. But there
might be variations in how they're put into practice. When it comes to the unorganized
sector, the trade union is crucial in negotiating wage scales.
2. Working conditions: In order to safeguard the workers' health, labour unions require that
management provide all the necessities, including drinking water, refreshment, minimum
working hours, paid time off, sanitation, lighting and ventilation, restrooms, safety
equipment when performing hazardous duties, job satisfaction, social security benefits,
and other welfare measures.
3. Discipline: Trade unions represent their members against management's controls when
they are the targets of management's arbitrary actions and punitive measures, in addition
to conducting talks about ways to improve working conditions. Victimization can take
many different forms, including dismissal, suspension, and transfer to a penal facility.
The worker who is separated and rendered defenseless in such a circumstance may
contact the trade union. In the end, the trade union may bring the issue to the attention of
management by describing the injustice done to a specific employee and suing the
management for justice. Therefore, the trade union may be able to defend the resentful
employee.
4. Personal policy: Trade unions have the power to oppose the improper application of
personnel policies pertaining to hiring, promotion, training, transfers, and other matters.
5. Welfare: As previously mentioned, the purpose of trade unions is to ensure the well-
being of labourers. The trade union assists employees in resolving their personal issues
and acts as a counsellor and advisor. During collective bargaining meetings, it could be
brought to the attention of management how difficult it is for workers to maintain
hygienic conditions in hospitals, housing, schools, and colleges due to the social and
cultural issues that their children face.
6. Employee-employer relations: An integral part of industrial peace is a harmonious
relationship between employees and employers. A trade union constantly works to
accomplish this goal. But the management's strict bureaucratic approach and unilateral
thinking can cause internal disputes that eventually sour relations between the staff and
 management. The trade union may engage in ongoing talks with management to advance
industrial peace in its capacity as the representative of all workers.

History and Growth of Trade Union Movement in India

 Pre-1918 Phase
The establishment of jute and textile mills, along with the construction of railroads,
starting in 1850, prepared the ground for India's industrialization and subsequent rise of
the labour movement. According to certain researchers, the Indian labour movement
began in 1860.Nonetheless, the majority of authors on the topic follow the development
of the Indian labour movement from 1875 onwards. Under the direction and leadership of
social reformist and philanthropist Mr. S.S. Bengalee, the first labour agitation began in
Bombay in 1875 to protest the terrible working conditions of factory workers,
particularly for women and children. It called on the government to enact laws to
improve these conditions. Consequently, the first Factories Act was passed in 1881 and
the first Factory Commission was appointed in Bombay in 1875. One could argue that
Mr. Lokhande is credited with starting the organized labour movement in India when he
established the Bombay Mill Hands Association, the nation's first trade union, in 1890.A
number of associations, including the Kamgar Hiwardhak Sabha (191O), the Printers
Union of Calcutta (1905), the Madras and Calcutta Postal Union (1907), and the
Amalgamated Society of Railway Servants in India (1897), came after this. All of these
unions sought to advance worker welfare programs and increase employee literacy.
The main characteristics of the labour movement prior to 1918 can be summed up as
follows:
i) Rather than the workers, social reformers and philanthropists spearheaded the
movement.
ii) In actuality, there was no trade union in the traditional sense.
iii) Rather than being led by workers, the labour movement was led by and for workers.
iv) The movement was limited to the uprising against child labour and the horrifying
working conditions endured by women employed in a variety of industries.
 1918-1924 Phase
1918–1924 is regarded as the period when modern trade unionism first emerged in the
nation. The trade union movement gained impetus shortly after World War I ended. The
political and economic circumstances that followed the war played a role in the workers'
renewed awareness of class. These circumstances paved the way for the establishment of
trade unions in the most contemporary sense of the word. Thus, the following
organizations were established: the Indian Seamen's Union, the Calcutta Clerk's Union,
the Ahmedabad Textile Labour Association (1917), headed by Shrimati Ansuyaben
Sarabhai, the Madras Labour Union (1918), and the All India Postal and RMS
Association.
The following is a brief list of the different factors that impacted the trade union
movement's growth in India during this period:
i) The appalling conditions of labourers caused by the skyrocketing costs of necessities in
the wake of World War II prompted workers to organise into trade unions in order to
strengthen their negotiating position and, consequently, their standard of living.
ii) The political environment in Punjab, which was defined by the marriage law and the
home-rule movement, led politicians to acknowledge the workers' movement as a
valuable ally in their cause. However, workers also required capable leadership and
direction from the politicians in order to resolve their disputes with their employers.
iii) The Russian Revolution also influenced India's labour movement by presenting the
country's average citizen with a new social structure.
iv) The labour movement also received a significant boost in 1919 with the establishment
of the International Labour Organisation (ILO).

 1925-1947
With increasing hardships of the workers led to two major splits
1. Mr. Joshi and Mr. Giri led the moderate faction that left the congress and founded
the National Trade Unions Federation (NTUF), a new independent organization.
 2. During the AITUC's Calcutta session in 1931, there was another split when the
radical left wing, led by Messrs. S.V. Despande and B.T. Randive, broke away to
form the All-India Red Trade Union Congress.

The passage of two Acts, the Trade Unions Act of 1926 and the Trade Disputes Act of
1929, which also aided in the expansion of trade unionism in India, was another
significant aspect of this time. The previous Act allowed for voluntary registration and
granted registered unions rights and privileges in exchange for certain duties. The later
Act made provisions for trade union settlements. One could refer to this era of the Indian
labour movement as Left-Wing Trade Unionism.

More over different situations in different times formed many Unions and Federations,
which of some as listed below.

 All India Trade Union Congress 1920

 Red Trade Union Congress 1931
 National Federation of Labour 1933
 Red Trade Union Congress merged with AITUC in 1935
 Indian Federation of Labour 1941 etc.

The Eighteenth Session of the All-India Trade Union Congress, presided over by
Congress President Suresh Chandra Banerjee, took place in Bombay on September 28
and 29, 1940. The session marked a turning point in the history of the Indian Trade Union
Movement as it saw the union regaining its full unity following the merger of the
National Trades Union Federation into the All-India Trade Union Congress. In order to
give workers and employers a common forum for discussion, a tripartite labour
conference was called in 1942.

 1947 and since

The Indian National Trade Union Congress (INTUC) was established in 1947 with the
goal of using democratic and nonviolent means to resolve labour disputes. the United
Trade Union Congress, which was established in 1949 and approved by the Indian
government to serve national and international conferences, the Hind Mazdoor Sabha,
 which was established in 1948, and the Indian Federation of Labour, which was founded
in 1949.

The Trade Union Movement does not confine its activities to the areas around Bombay or
Delhi. As time goes on, the movement expands throughout the nation, and friendly
groups welcome the Trade Union Movement's organism from various regions of India.
The Plantation Labour Act, 1951, which governs the wages of tea-garden workers, their
duty hours, and the amenities, is used by the Assamese garden men's forum, Assam Chah
Mazdoor Sangha, to demand their minimum wages from their employers.

The Trade Union Movement does not confine its activities to the areas around Bombay or
Delhi. As time goes on, the movement expands throughout the nation, and friendly
groups welcome the Trade Union Movement's organism from various regions of India.
According to The Plantation Labour Act, 1951, which governs the wages of tea-garden
workers, their duty hours, and the amenities, the Assamese garden men's forum, Assam
Chah Mazdoor Sangha, demands their minimum wages from their employers. This act
stipulates that the management is expected to provide housing, drinking water, education,
health care, child care facilities, accident cover, and protective equipment.

The minimum daily wage set by the Assamese government for workers on tea plantations
is Rs. 169. The commissioner and secretary of labour and employment have been
instructed to implement this policy for other industries as well. But despite what the
statement claims, not all tea garden owners have equally followed the rules. They are
currently the subject of intense agitation due to their negligence.

On the other hand, AITUC, INTUC, and HMS (Hind Mazdoor Sabha) united to form the
National Council of Central Trade Union, the union's highest body, in 1971.

Development of Trade Union Law in India

The different labour laws in the country are as follows:

 The Apprentices Act of 1961 sought to enhance and perfect existing skills through both
theoretical and practical training, as well as to promote new labour.
  The Contract Labour (Regulation and Abolition) Act of 1970 sought to control the use
of contract labour and, in some cases, to outlaw it altogether.
 The Employees' Provident Funds and Misc. Provision Act of 1952 guaranteed
employees social security benefits in addition to regulating how much they were paid.
 The 1948 Factories Act was designed to protect the health of workers performing
specific types of jobs.
 The 1948 Minimum Wages Act established minimum pay rates for a number of
occupations.
 The Trade Union Act of 1926 established regulations pertaining to registered trade
unions and allowed for their registration.

Laws Governing Trade Unions in India

In India, both federal and state laws protect the freedom to organise and join a trade union and to
participate in collective bargaining. The Indian judiciary has consistently maintained the freedom
of labourers to organize or become members of a trade union.

1. Constitution of India, 1950

The fundamental right to freedom of speech and expression is guaranteed to all citizens
of India by Article 19(1)(c) of the Indian Constitution, 1950 ("Constitution"). This
includes the right "to form associations or unions," including trade unions. 3 The Supreme
Court has ruled that the freedom to join a union or association is a part of the right
guaranteed by Article 19(1)(c). This right includes the State's ability to impose reasonable
restrictions.4

The various freedoms that are recognized under the fundamental right, Article 19(1)(c),
are

i. The right of the members of the union to meet,

ii. The right of the members to move from place to place,
iii. The right to discuss their problems and propagate their views, and
iv. The right of the members to hold property.

3
Article 19(4) of the Constitution
4
All India Bank Employees’ Association v. N.I.Tribunal, AIR 1962 SC 171
 2. Trade Unions Act, 1926

The Trade Unions Act, 1926, also known as the "TU Act," defines the law in some
areas pertaining to registered trade unions and allows for the creation and registration
of trade unions. "Any combinations, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and
employers, or between workmen and employers, or for imposing restrictive
conditions on the conduct of any trade or business," according to the definition of a
trade union given by the TU Act, includes any federation or two or more trade
unions.5
Every worker has the freedom to organise a union or to choose not to join one.6
All worker-organizations are not, however, regarded as trade unions.

A. Recognition and Registration: It is now vital to create a system in India

whereby a trade union is officially recognised by the employer, even
though no trade union is given any special rights regarding the right to be
recognised. The process by which an employer acknowledges a specific
trade union as having a representative nature and, as a result, agrees to
hold talks with the union about worker interests, is known as recognition. 7
The stability of industrial relations and the success of collective bargaining
depend on this process. However, there are some built-in advantages to
becoming a registered trade union member. 8As a body corporate, a
registered trade union has the legal standing to acquire and hold property,
make agreements, and bring legal action against other parties.
Additionally, a registered trade union is exempt from some criminal, civil,
and contractual actions. Registration is not required, though; it is optional.

5
Section 2, Trade Union Act, 1926
6
Tamil Nadu NGO Union v. Registrar, Trade Unions (AIR 1962 Mad High Court)
7
Singh et al., Employee Relations Management, p. 110, Available at https://books.google.co.in/books?
id=vkQ7BAAAQBAJ&printsec=frontcover (Accessed on November,2023)
8
Section 13 of the TU Act
 B. Registration Process: Trade unions are required by the TU Act to register
with the Registrar of Trade Unions in the relevant territory (the
"Registrar"). However, registration is not required.
Additionally, multiple trade unions may be registered in connection with
the same employer. At least seven members must agree to the union's rules
in order to register.9
Additionally, at the time of application, at least 10% of the workforce—or
100 workers, whichever is lower—engaging or employed in the
establishment must be members of the trade union associated with such
establishment. The Registrar must be satisfied that all of the TU Act's
primary requirements have been met before a trade union can be
registered. When determining whether to grant registration, the Registrar
must consider whether the trade union satisfies the technical requirements
for registration rather than whether it is legally acceptable. 10A trade union
may file an appeal with the High Court in accordance with Article 226 of
the Constitution if the Registrar does not register it within three months of
receiving the application.11

Landmark Cases Pertaining to Trade Unions

I. All India Bank Employees’ Association v. N.I.Tribunal12

Laid down the rights of the members of the trade unions that are encompassed within the
fundamental right to freedom of expression and speech, i.e. Article 19(1)(c)13:
 The right of the members of the union to meet,
 The right of the members to move from place to place,

9
Section 4, Trade Unions Act, 1926
10
Re India Stream Navigation Workers Union (AIR 1936 SC)
11
ACC Rajanka Limestone Quarries Workers’ Union v Registrar of Trade Unions (AIR 1958)
12
All India Bank Employees’ Association v. N.I.Tribunal, AIR 1962 SC 171
13
Constitution of India
  The right to discuss their problems and propagate their views, and
 The right of the members to hold property,
However, the case held that Article 19(1)(c) does not account for a right pertaining to the
achievement of the all the objectives for which the trade union was formed.

II. Srinivasa Reddy v. Karnataka Urban Water Supply & Drainage Board
Employees’ Association14
It has been held that an unregistered trade union or a trade union whose registration has
been cancelled has no rights either under the TU Act or the IDA. This case highlights the
importance with respect to registration of trade unions.

III. B.R Singh v. Union of India15

The court has recognized “strike” as a mode of redress for resolving the grievances of
workers.

CONCLUSION

The Trade Union Act of 1926 is a welfare law that was passed to safeguard the human rights of
workers in both the organised and unorganised sectors against cruel treatment. As a result, the
law includes provisions for trade union protection, benefits, registration, and regulation. The
workers gain as a result. Because they use collective bargaining to represent the interests and
demands of their members, trade unions are crucial institutions for the democratic development
of any nation. An essential component of the employer-employee relationship is collective
bargaining. Nevertheless, only recognised trade unions are eligible for collective bargaining;
other trade unions are not. As a result, the workers have repeatedly demanded mandatory trade

14
B. Srinivasa Reddy v. Karnataka Urban Water Supply & Drainage Board Employees’ Association, (2006) 11 SCC
731 (2)
15
B.R Singh v. Union of India,(1989) 4 SCC 710
union recognition, which is not provided by the Trade Union Act of 1926. Trade unions are
becoming more powerful due to the expansion of the media, and they are now major players in
the industrial, agricultural, and other related sectors as well as powerful pressure groups.

REFERENCES

 Ghosh, G., (1960), "Indian Trade Union Movement", Trade Union Publications, Calcutta.
 Joshi, N.M., (1927), "Trade Union Movement in India", Longmans Green & Co,
Bombay.
 Govt ofindia. (1931), "Report ofthe Royal Commission on Labour", New Delhi.
 I.L.O., (1964), "Welfare Facilities for Workers in India &Asia", Geneva.
 http://articles.economictimes.indiatimes.com/2014-07-09/news/51248148_1_national-
skill-development-corporation-india-october-economicsurvey (Accessed on November,
2023)