MODULE 1: REGULATION OF TRADE UNION

& UNFAIR LABOUR PRACTICES

TRADE UNION ACT, 1926

 TRADE UNION ACT 1926
Introduction
The establishment of the International Labour Organization (hereinafter ILO) and the world-wide
publicity it gave to labour conditions provided a platform for discussing labour problems It was in
this context that India‘s membership in the ILO had brought about a ―remarkable change in the
country‘s attitude towards labour and labour questions.India was admitted to the ILO membership
and was recognized as one of the eight nations of chief industrial importance, and this gave
further fillip to the growth of labour legislation in India. The ILO has done a good deal in
influencing the labour movement in India.

Early labour legislations were enacted to safeguard the interest of employers. They were
governed by the doctrine of laissez faire. Modern labour legislation, on the other hand, aims to
protect workers against exploitation by employers. The advent of doctrine of welfare state is
based on the notion of progressive social philosophy which has rendered the old doctrine of
laissez faire obsolete.
Contd.

• At the conclusion of World War I, various economic and political pressures were brought to bear
on the Government. They generated an awakening among the working class for protective labour

legislation, and there was wide industrial unrest and cost of living had risen. The Russian Revolution

of 1917 and the establishment of the ILO in 1919 added further impetus this awakening. Important

laws passed during the twenties were: The Indian Factories Act, 1922; the Indian Mines Act, 1923;

be India; Workmen‘s Compensation Act, 1923; the Indian Trade Unions Act 1926 and the Trade

Disputes Act, 1929.

• Till the Second World War, very little was done by the Government of India in the field of labour

welfare. During the war, Government launched scheme on labour welfare in their ordinance,

ammunition and other factories in war production to keep up the morale of the workers and also to

increase their productivity. After this, a number of enactments containing the provisions for the

welfare of the workers were passed by the government of India. Over the years, labour laws have

undergone change with regard to their object and scope.

 AIM AND OBJECT

• The progress of the trade movement in India in pre-independence days has not been very satisfactory , but the post-

independence has been a tremendous Trade Union activity in every sphere of industry.

• After independence democratic spirit is gradually developing among the Indian citizens and workmen in Industry. Mr.

N.M Joshi ,the then General Secretary of All Legislative Assembly seeking introduction of some measure by the

government for protection of Trade Unions. The employers were so much opposed to any such legislative measures

being adopted but despite to that the Trade Unions Act was passed in 1926 under the title of the Indian Trade unions Act

and was brought into effect from I" June 1927" by a

• government. The act was amended in 1947, 1960 and 1962. Subsequently, the word 'Indian' was deleted from the

amended Act of 1964, which came into force from " April 1 965.

• The object of this Act is to provide for the registration of Trade Unions so that they may acquire a legal and corporate

status. The Trade Unions Act 1926 made the provisions relating to-

• 1. Conditions governing the registered Trade Unions.

• 2. Obligations imposed upon a registered Trade Union.

• 3. Rights and privileges of registered trade union.

 General Scheme of the Act
• The Act is divided into 33 sections and contains 5 chapters.

• Chapter I deal with the title, scope and commencement of the Act, together with
important definitions (Secs 1and 2).

• Chapter II discusses the various aspects of registration of trade unions, viz.,

appointment of Registrars (sec.3) mode of registration. (Sec.4) submission of
application for registration (Sec.5); provisions to be contained in the rules of a trade
union (sec.6) power to call for further particulars and alteration of name (sec.7)
registration (sec.8); issue of certificate of registration (sec.9); cancellation
of registration (sec. 10); making of appeals (sec. 11); location of registered offices
of the trade unions (sec.12); incorporation of registered trade unions (sec. 13);
and of the trade unions (sec.12); incorporation of registered trade unions (sec. 13);
and the non-applicability of certain acts to registered trade unions (sec. 14).
• Chapter III describes the rights and liabilities of registered trade
unions, i.e., it deals with the objectives for which general funds
may be spent (sec. 15); the constitution of a separate fund for
political purposes (sec.16); criminal conspiracy in trade disputes-
immunity (sec. 17); immunity against civil suit (sec. 1 S),
enforceability of agreements (sec. 19); right of inspecting books of
trade unions (sec.20); rights of minors to membership of trade
unions (sec. 21); disqualification of office-bearers of trade unions
(sec.21 .A); proportion of officers to be connected with the industry
(sec.22); change of name of trade union (sec.23); amalgamation to
trade unions (sec. 24); notice of change of name or amalgamation of
trade unions (sec.25); effects of change of name and amalgamation
(sec.26); dissolution of trade unions (sec. 27); and filing returns by
trade unions (sec.28).
• Chapter IV deals with powers to make regulations (sec.29); and
publication of regulations (Sec.30).

• Chapter V deals with the consequence of failure to submit returns

(Sec.31); Supplying false information regarding trade unions
(Sec.32); and cognizance of offences (Sec.33).
 SOME IMPORTANT DEFINITIONS

Trade Union

Section 2(h) of Trade Union Act,1926: The definition of the ‘Trade Union’ can be divided into
two parts. According to the first part Trade Union means:

1. any combination whether temporary or permanent;

2. the combination should be formed for the purpose of regulating the relations between:

(a) workmen and employers; or

(b)workmen and workmen; or

( c) employers and employers.

d. The combination may be formed for imposing restrictive conditions on the conduct of any
trade or business.

e. Trade Union also includes any federation of two or more Trade Unions.
• The second part of the definition provides that the Act shall not affect:
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession and trade or handicraft.
• From the above discussion it is clear that ‘Trade Union’ is not used in ordinary
sense. Ordinarily a ‘Trade Union’ means a employers or federation of two or
more any such combinations. Therefore, the principal object of a Trade Union is
the regulation for relation. This is an important test that is applied to determine
as to whether a combination or association of persons is a Trade Union or not.
Section 2(g)“Trade dispute” means “any dispute which has arisen between workmen and employers,
between two or more workmen and between two or more employers which is related either to employment
or non-employment, or any or regarding the conditions of labour of any person.” and “ Workmen” means
“the person(s) who is in the employment or has remained employee of an industry with whom the disputes
have arisen.”
It implies that a trade that a trade dispute may be between:
(1) employers and workmen ; or
(2) workmen and workmen; or
(3) Employers and employers.
The Trade dispute should be connected with:
(4) The employment ; or
(5) Non-employment ; or
(6) Terms of employments; or
(7) Conditions of labour of any persons
• Workmen- The Trade Unions Act, 1926 doesn’t specify regarding the
persons who can be members of a trade union. The regulations framed
under this Act clear that workmen or employers of an industry can form a
trade union. The term ‘workman’ has not been defined in the Act
independently but we find the definition of the workman in section 2(g),
i.e., the persons who are employed or who have remained in employment
in the trade or industry and with whom the trade disputes have arisen are
‘workmen’. Therefore, the workmen implied the persons employed in any
trade or industry to do work.
• The term ‘workmen’ defined in the Act has a wide coverage which is not
confined to those persons who are employed to do skilled, unskilled,
manual, technical or clerical work. The persons employed to do any work
in an industry can be covered within the definition of ‘workmen’ provided
they are employed in the industry.
• “Registrar,” as per section 2(f) of the Act, is that who is appointed by the
appropriate govt. under section 3. It also includes Additional or Dy.
Registrar of Trade Unions. And the Registrar who is appointed for the State,
regarding any trade union, the head office of the trade union is situated or
as the case may be.
Classification Trade Union based on union management agreement

• Closed Shop:
A closed shop is a form of union security agreement under which the employer agrees to only hire
union members and employees must retain members of the union at all times in order to remain
employed. This is an ideal situation where union hold monopoly in employment. Such situation is
called "closed shop". In USA closed shop is banned by Taft-Hartley Act 1947. Yet in many
construction and printing work, such arrangement exists. They are also called "Hiring Hall"
arrangement. International Labour Organization Covenants don’t address the legality of closed
shop provisions, leaving the question upto individual nation. The legal status of closed shop
agreements varies widely from country to country, ranging from ban on the agreement to
extensive regulation of the agreement to not mentioning it at all.
• Union Shop:
A Union Shop is a form of a union security clause under which the employer agrees to hire either
labour union members or non members but all non union employers must become union
members within a specified period of time or loss their jobs. This is an Agreement with
management in which all new recruits must join the union within a fixed period after
employment say within 3 months. By this arrangement management is free to select anyone to fill
up a vacancy in which union cannot interfere or influence. In USA, some states are declared as
"right-to work". In such states, union shop viz. compulsory membership to union is prohibited.