Trade Union Act,1926

Contents
• Introduction
• Definition
• Objective of trade unions
• Registration and Re-registration of Trade Union
• Trade Union Rivalry
• Problems of Leadership
 INTRODUCTION
The Trade Union Act,1926 was brought into operation
from 1st June,1927 by notification in the official gazette
by the Central Government.

The Act was amended in 1947, 1960 and 1962.

The Trade Unions in India are governed by the Trade

union Act,1926.

This Act was enacted to accord protection to the Union

Leaders for the acts done by them in connection with the
legal trade union activities.
 INTRODUCTION
The object of Act is to provide the procedure for
registration of a Trade Union.

The object of the Act is to make provisions for the

registration of Trade Unions formed by the workers to
protect their legitimate rights while fighting with
employers.

The Act was enacted with the object of providing for the
registration of trade unions and verification of the
membership of trade unions registered so that they may
acquire a legal and corporate status.
 INTRODUCTION
As soon as a trade union is registered, it is treated as an
artificial person in the eyes of law, capable of enjoying
the rights and discharging liabilities like a natural person
 INTRODUCTION
The detailed provisions are laid down for formation,
procedure, registration and protections available to the
Union Leaders both from Civil and Criminal Laws while
themselves in the Union activities of a registered Trade
Union.

As per Sidney and Beatric Webb and Dale Yoder, it is a

continuous association of wage earners for the purpose
of maintaining and improving the conditions of working
lives.
 INTRODUCTION
The British Trade Union Act views that, “A trade union is
a combination with the main objective of regulating the
relation between workmen and masters or between
workmen and workmen or between masters and
masters.”

In the words of Indian Trade Union Act,1926, “a trade

union is any combination whether temporary or
permanent, formed primarily for the purpose of
regulating relations between workmen and employers or
between workmen and workmen, between employers
and employers or for imposing restrictive conditions on
the conduct of any trade or business.”
 INTRODUCTION

The Act extends to the whole of India.

The Act applies not only to the Union of the

Workers but also to the association of
employers.

Certain Acts do not apply to the registered Trade

Unions.

1. The Societies Registration Act,1980

2. The Cooperative Societies Act,1912
3. The Companies Act,1956
4. The Registration of any such union under any
such Act is null and void.
 Functions of Trade Union
Primary functions of a trade union are to protect and
promote the interest of the workers and the conditions
of their employment. In India, trade unions generally
undertake the following functions:

1.To achieve higher wages and better working and living

conditions for the members.
2.to generate self confidence among the workers.
3.To encourage sincerity and discipline among workers.
4.To take up welfare measure for improving the morale
of the workers
 Functions of Trade Union
The National Commission of Labour has underscored
certain basic functions to which trade unions have to pay
greater attention such as…

1.To secure fair wages for workers

2.To safeguard the security of tenure and improve
conditions of services.
3.To enlarge opportunities for promotion and training
4.To improve working and living wages.
11
 List of Trade Unions and its affiliation
After independence, in the year 1998, total 61592 trade unions are available.
At present, there are 13 Central Trade Unions are below:
-------------------------------------------------------------------------------------------------------------
Trade Union No. of Membership Political Year of
affiliated unions (in lakhs) affiliation establishment
-------------------------------------------------------------------------------------------------------------
INTUC 4428 54.36 Congress 1947
AITUC 2996 29.74 CPI 1920
CITU 3011 23.86 CPI(M) 1970
HMS 1248 43.56 - 1948
BMS 2871 40.81 BJP 1955
UTUC 413 7.85 RSP --
UTUC-LS 231 11.98 SUCI 1948
HMKS 81 15.61 - -
NFITU 132 7.61 - -
NLO 356 6.61 - -
ICL 23 8.46 - -
TUCC 198 5.13 - -
IFFTU 26 5.15 - -
 No. of Association and Federations
Besides the affiliated unions and their federations, there are a
large number of associations and federations which have not
joined any one of the Central Workers’ Organizations. Some of
are as under:
1.All India Bank Employees’ Association
2.All India Bank Employees’ Federation
3.All India Insurance Employees’ Association
4.All India Defense Employees’ Federation
5.All India Railwaymen’s Federation
6.National Federation of Indian Railwaymen
7.National Federation of Posts and Telegraphs Employees
8.All India Private Employees Federation
9.All India Electricity Employees Federation
10.All India Port and Dock Workers Federation
11.All India Defence Workers Federation
12.All India Chemical and Pharmaceutical Employees
Federation
 Objective of Trade Unions
• Wages salaries
• Working conditions
• Discipline
• Welfare
• Employee-employer relation
• Negotiating machinery
• Safeguarding organizational health and interest of
the industry
Reasons For Joining Trade
Unions
1. Greater Bargaining Power
2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Platform for self expression
7. Betterment of relationships
16
 1) Appointment of registrars(Sec. 3)
-Appointed by “appropriate Government”
- appropriate Government can also appoint as many
additional and Deputy Registrars of trade unions.
-But limits will be defined by Registrar

2) Mode of registration(Sec. 4)
-Any 7 or more members of Trade Union can subscribe to
the charter of TU by application and complying with the
provisions of this Act.

Cease to Cease to Registration

Registration be a
be a is valid
is invalid member
member
17
 3) Application for Registration(Sec. 5)
-Application for registration of TU shall be made to
Registrar in comply with Rules and statement of
following particulars:

er to
emb is
m
Any hich TU d
w ruste
ent

18
4) Provisions to be contained in the Rules of Trade
Unions(Sec. 6)
list of members of Whole of the objects for
Name of TU TU and their which the TU has been
established.
- inspection

admission of ordinary
Whole of the purpose for members(employee) to
Payment of whome TU is connected &
which the general funds Manner for every
subscription 25
of the TU shall be appointment and removal of the number of temporary
paise/month/memb members as office-
applicable. office-Bearer/
er
Dissolve of TU beares(forms the executive
of TU)

Conditions under- Manner of

benefit entitled to Annual Audit of
members the account
books 19
5) Power to call for further particulars and to require
alterations of names(Sec. 7)

• If TU is proposed to be registered is identical with

that by which any other existing

• shall refuse to register TU until such alteration has

been made.

20
6) Registration(Sec. 8)
Registrar, on being satisfied that the TU has complied
with all the requirements of this Act in regard to
registration, shall register the TU within a period of
from60thedaysdate of such compliance.

7) Certificate of registration
in the prescribed form which shall be conclusive
evidence that the Trade Union has been duly
registered under this Act.

21
The Registration of a Union can be cancelled or a
certificate of registration withdrawn by the
Registrar …

1.When the application is not made by the trade

union,
2.If the Registrar is satisfied that the Certificate
was obtained by fraud or mistake or
3.When the trade union has ceased to exist or
4.If the Registrar is satisfied that the TU has called
for or participated in any illegal strike
22
The Registrar, on receiving an application from the
Union for withdrawal or cancellation or
registration, must satisfy himself that the
withdrawal or cancellation of registration was
approved by a general meeting of a trade union.
For this purpose, the Registrar may call for such
further information as he thinks necessary.

23
Any person aggrieved by any refusal for the
Registrar to register a TU or by the withdrawal or
cancellation of registration, may prefer
Appeal within 60 days of the date on which the registrar
passed the order.

The appeal is to be filed in High Court.

The Appellate Court may..
- Dismiss the appeal or
- pass an order for registration and
issue a Certificate of Registration or
- Set aside the order for withdrawal
or cancellation of the certificate. 24
A TU whose Certificate of Registration has been
cancelled may apply for re-registration to the
Registrar after the expiry of a period of 6 months
from the date of such cancellation.

Provided that such cancellation is on the ground

that the TU has failed to comply with any of the
requirements provided under the Act. (Sec.11A)

25
• AII communications and notices to a
registered TU may be addressed to its
registered office.

• Notice of any change in the address of the

head office shall be given within 14 days of
such change to the Registrar in writing and
the changed address shall be recorded in the
register referred to in sec. 8,

26
A TU on registration enjoys the advantages….

Every registered TU becomes a BODY CORPORATE

by the name under which registered.

Has perpetual succession and a common seal with

power to acquire and hold both movable and
immovable property

Has a power to contract and

It can sue and be sued.

27
(1)Maintain general funds of the registered TU
- Payment of salaries, allowances and
expenses
- Payment of expenses for the
administration
- The prosecution or defence of any legal
proceeding.
- The conduct of Trade Disputes on behalf
of the Trade Union or any member
- Compensation to members for the loss
arising out of trade disputes 28
(1)Maintain general funds of the registered TU
- Allowances to members or their
dependents on account of death, old age,
sickness, accidents or unemployment of such
members
- the provision of educational, social or
religious benefits

29
(1) Maintenance of the Political Fund (Sec.16)
- to meet out expenses for election
- to meet out expenses for distribution of
literature or documents in support of such
prospective candidate for election
- for holding of political meetings of any kind

30
Change of name:-
Every regd. TU can change its name by a resolution
passed by two – thirds of members by the union
in a General Meeting under intimation to the
Registrar of Trade Union.
Amalgamation of Trade Unions:-
Any two or more regd. Trade Unions may be
amalgamated as one TU with or without
dissolution such Trade Unions,
Provided that the votes of at least one half of the
members of each of every such trade union are
recorded and that at least 60% of the votes
recorded are in favour of the proposal of
amalgamation. 31
Amalgamation of Trade Unions:-
A notice in writing for amalgamation, signed by the
Secretary and by 7 members of each and every trade
union should be sent to the Registrar of the State in
which any of the amalgamated unions has a registered
office.

If the Registrar is satisfied, he will register the trade union

and amalgamation will have effect from the date of
such registration (section 25)

Any amalgamation of two or more registered TU shall not

prejudice any right of such trade unions. (Section 26) 32
• Notice of the dissolution signed by 7 members
and by the Secretary of the TU shall, within 14
days of the dissolution be sent to the Registrar,

• in accordance with the rules of the TU, and the

dissolution shall have effect from the date of
such registration.

• the Registrar shall divide the funds amongst the

members as per the rules or as may be
prescribed.
33
 Re-registration of a Trade Union

A trade union whose certificate of registration has been

cancelled may apply for re-registration to the Registrar
after the expiry of a period of 6 months from the date of
such cancellation.
 Registered Office and change in it
(Section 12)
All communications and notices to a registered trade
union may be addressed to its registered office.

Notice of any change in the address of the Head Office

shall be given within 14 days of such change to the
Registrar in writing and the changed address shall be
recorded in the Register maintained in the office of the
Registrar.
 Incorporation of Regd. T U (Section 13)
- Every registered TU becomes a legal entity or body
corporate by the name under which it is registered.

- Every registered TU has perpetual succession and

common seal with power to acquire and hold both
movable and immovable property.

- Registered TU has a power to contract and it can sue

and be sued.
 Duties and Liabilities of regd. TU (S.15)
The general fund of a regd. TU shall be spend on any of
the following purposes:

1. The payment of salaries, allowances and expenses

to the Office-bearers of the TU.
2. The payment of expenses for the administration of
the trade union, including audit of the accounts of
the general fund of the TU.
3.The prosecution or defence of any legal proceeding to
which the trade union or any member is a party.
4.The conduct of trade disputes on behalf of the trade
union or any member thereof.
 Duties and Liabilities of regd. TU (S.15)
5. The compensation to members for the loss arising out
of trade disputes.

6. Allowances to members or their dependents on

account of death, old age, sickness, accidents.

7. Policies insuring members against sickness, accident

or unemployment.

8. The provision of educational, social or religious

benefits for members (including payment of the
expenses on funeral, religious ceremony)
 Duties and Liabilities of regd. TU (S.15)
5. The compensation to members for the loss arising out
of trade disputes.

6. Allowances to members or their dependents on

account of death, old age, sickness, accidents.

7. Policies insuring members against sickness, accident

or unemployment.

8. The provision of educational, social or religious

benefits for members (including payment of the
expenses on funeral, religious ceremony)
 Duties and Liabilities of regd. TU (S.15)
9. Maintenance of a political fund under section 16 for
the purposes like ….
- the payment of any expenses by a candidate for
election as a member of any legislative body
constituted under the Constitution or any local
authority before, during or after the election in
connection with his candidature or election.

- the holding of any meeting or distribution of any

literature in support of such candidate

- holding of political meetings of any kind.

 Penalties and Procedure
Under Section 31 to 33, the Registrar of Trade Unions is
empowered to impose penalty on the trade union for default
in submitting returns or for supply of false information and
statement.

Every office bearer or other member of the Executive

Committee is bound to give such information or documents
as required under the provisions of the Act and if this is not
done, they are punishable with fine which may extend to
Rs.25/-.

In the case of a continuing default, an additional fine

exceeding Rs.25/- may be imposed for each week after the
first week during which the default continues.
 Penalties and Procedure
The following information are required to be submitted
by the regd. TU.
1.Notice of change in the address of the head office of
the trade union.
2.Notice of change of name on amalgamation of the
unions.
3.Notice of change in the officers of the trade union.
4.Copies of the corrected rules and
5.Copy of every alteration made in the rules.
6.Notice of dissolution of the trade union and
7.Annual returns for the period ending 31st March.
 Penalties and Procedure
Supplying false information about Trade Unions (Sec 32)

The Act lays down that where any person, with intent to
mislead, gives to any member of a regd. TU or to any
person applying to become a member of such TU or any
alterations of the rule, which he knows that it is not a
correct copy of rules of alteration, shall be punishable
with fine which may extend to Rs.200/-
UNION RIVALRY
Multiplicity of Unions and Inter-Union Rivalry
The Multiple unions are mainly the result of political
outsiders wanting to establish unions of their own with a
view to increasing their political influence, even though
in urban areas.

The existence of different conflicting or rival

organizations with divergent political views is largely
responsible for the inadequate and unhealthy growth of
the movement.
Multiplicity of Unions and Inter-Union Rivalry

Within a single organization, one comes across a number

of groups comprising ‘insiders-outsiders’, new-comers
and old-timers’, northerners and southerners, etc.

The multiplicity of unions leads to Inter-union rivalries,

which ultimately cuts at the very root of unionism,
weakens the power of collective bargaining and reduces
the effectiveness of workers in securing their legitimate
right.
 Inter-Union Rivalry
Another problem of TU is Inter-union Rivalry

In every important industry, there are parallel and

competing unions.

EXAMPLES

1.In Indian Railways

- the Indian Railwaymen’s Federation and the
Indian national Federation of Railwaymen (NFIR)
 Inter-Union Rivalry
2. In the textile industry in Bombay
- the Girni Kamgar Union and the Rashtriya Mazdoor
Sangh (controlled by the INTUC)

3. In the coal, mining, jute industries, the iron and steel

industry, the zawar mines, Udaipur similar parallel
organizations under different political parties
compete for the same jurisdiction.

4. Rival unions sometimes obstructing the normal

conduct of trade union activities on different appeals.
 Inter-Union Rivalry
A union does oppose a strike by a rival on various
grounds – strike being unnecessary, uncalled for, against
the interest of the workers and being anti-national.

Such conditions are created where an anti-union

employer gets a chance to paint he trade union in the
darkest colours and to play one against the other.

The policy of divide and rule becomes convenient to him.

He partly settle one and push the other.

 Inter-Union Rivalry
The rivals also treat in mutual mudslinging and wild
accusations which shake the workers’ faith in the trade
union itself.

In regard to Union Rivalries, the National Commission on

Labour recommended the following which, in its opinion,
would reduce inter-union rivalries:
1. Building of internal leadership within the unions in
order to eliminate party politics and outsiders.
2.Promotion of collective bargaining through recognition
of sole bargaining agents;
 Inter-Union Rivalry
3. Improving the system of union recognition.

4. Encouraging union security

5. Empowering the Labour Courts to settle

Inter- union disputes, if the concerned central
organization is unable to resolve these.
 Problems of Leadership
After independence, every political party have patronized
a particular union and provided it much desired support.

It is painful that even today most Indian Trade Unions are

in the clutches of outside leaders.

These leaders of trade union are persons who are

professional leaders such as Politicians, Lawyers, Social
Workers, Doctors and the like.

These leaders are totally strangers for the workers and

their trade unions.
 Problems of Leadership
In their whole life-time, they neither meet the rank and
file nor visit the workplaces and as such have not even
slightest idea of their real problems.

In fact, leadership provided by them to the Union is the

“leadership by intellectuals rather than by workers.”

It applies at the local as well as at the national level.

There are notable reasons for the growth of outside

leadership.
 Problems of Leadership
- The illiterate and narrow-visioned of rank and file
workers are not matched with the professional and
diplomatic managerial leaders. Hence, they invariably
fail to discuss the various issues on the bargaining
table at the same wavelength with managers. This
generates a feeling of helplessness and hopelessness
among them. Hence, they are compelled to search for
more effective and dynamic persons to give tough
fight to the management, thus automatically paves
the way for entry of outside leaders in the union.
 Problems of Leadership
- The managerial hierarchy is dominated by the upper
strata of society which have both the power and
resources; whereas workers hail from lower classes.
The very social status difference coupled with
illiteracy creates a psychological block among them
which in turn restrain their free interaction among
them, that becomes more crucial when important
issues are to be discussed. So the trade unions to
work out their problems with management often seek
outside leaders.
 Problems of Leadership
- The resource-ridden union often search for
resourceful persons who can lead and guide them.
These outsiders (leaders) not only help the unions to
fight for their cause but also prevent the workers
from cruelty of management.

- At times, for want of finances, the union fails to

appoint wholetime office bearer for looking after its
diverse activities. The vaccum thus created is
invariably filled by the outside leaders who render
free services to union.
 Problems of Leadership
- These outside leaders appointed in whatsoever
capacity, for whatsoever work and in whatsoever way
are more concerned with “maximizing their
individual /party interest than maximizing welfare
and well being of workers.”

- In case they happen to be politicians, the condition

goes from bad to worse, as they always use the union
as a tool to further their personal and party’s political
interest or both.
 Problems of Leadership
The outside leaders largely look after the affairs of so
many unions of different plants at a time. Under these
circumstances, they fail to pay attention to the problems
of even one union properly. Further, they do not have
any contact with the rank and file union. As a result,
outside leaders fail to project the problems of the union
before management or government. They are using
tactics for getting the necessary favour for those unions
in which they are interested.
 Problems of Leadership
It has been realized that “a reorientation of policy is
desirable by a switchover to working class leadership”.
The National Commission on Labour gave a good deal of
thought to the issue whether outside leadership should
be retained. It felt that “there should be no ban on non-
employees holding positions in the executive body of the
unions as that would be a very drastic step.”

The Commission also refers to the ILO Convention

(No.87) concerning freedom of association and
protection of the right to organize and the workers’
organizations shall have the right to elect their
representatives in full freedom.
 Problems of Leadership
The Commission’s own estimate was that outsiders in the
Union’s Executive Bodies would be about 10% much less
than the number legally permitted. It makes the
following recommendations to deal with the problem of
outside leadership.

(1)Ex-employees of an industrial enterprise should be

treated as outsiders;
(2)Increase of workers’ education
(3)Penalties for victimization and similar unfair labour
practices such as would discourage the growth of internal
leadership
 Problems of Leadership
(4) Limiting the proportion of outsiders in the union
executive bodies in the following manner.

- Membership below 1000 No. of workers

should not be more
than 10%
- Membership between 1000 20%
and 10000
- Above 10000 30%
- The permissible limit for
industry-wise unions should be 30%
 Problems of Leadership
The leadership should be promoted from within the rank
and file and given a more responsible role. The initiative
should come from the workers themselves through
launching of a vigorous programme for workers’
education.

This will enable them to participate in decision making

and managing the union affairs effectively. The trade
union education and workers’ education will streamline
politics, free democratic trade union organizations and
gear them up to higher standards of efficiency.
 Union Problems
Trade union leadership

Multiple unions

Union rivalry

Finance
Finance

Other problems
illiteracy
Uneven growth
Low membership
Heterogeneous nature of labour
Lack of interest
Absence of paid office bearers