The trade unions act 1926.ppt final presentation.ues
1. Trade union is an association of workers
formed for the purpose of protecting and
improving the socio-economic status of its
members through collective action.
• The common feature of all unions is that the
union is in theory a democratic institution.
The ultimate power lies in the membership
as a whole.
2. Section 2(h) of the Trade Unions Act 1926
defines Trade Union as a combination,
temporary or permanent , formed primarily
for the purpose of regulating the relations
between workmen and employer, workmen
and workmen, or employers and employers,
or for imposing restrictive condition on the
conduct of any trade or business, and
includes the federation of two or more trade
unions.
3. The Registration of a trade union is not necessary.
However, upon registration, a trade union gets several
benefits that are not available to an unregistered Trade
Union.
The trade union gains recognition in the eyes of the
employer, employees and general public. Hence, a
stronger footing for collective bargaining between the
employers and workers.
In the case of Workers of B and C Co vs Labor
Commissioner, AIR 1964 Mad it was held that a Trade
Union can raise or sponsor a trade dispute and represent
on behalf of its members in legal proceedings arising out of
a trade dispute.
Hence it is only a registered Trade Union which can
espouse an industrial dispute.
A Registered Trade Union gets immunity from civil and
criminal liability for acts done in pursuance to a trade
dispute.
4. Section 13 specifies that upon registration, a
trade union gets a legal entity status, due to
which it has perpetual succession and a common
seal.
It can acquire and hold movable as well as
immovable properties, can contract through
agents, can sue and can be sued.
Under section 17, 18, and 19 a registered trade
union gets immunity in certain criminal, civil,
and contractual proceedings. However, such
immunity /protection is confined to acts done in
contemplation of a trade dispute.
5. In the case of GTRTCS and Officer's Association,
Bangalore and others vs Asst. Labor Commissioner
and and others AIR 2002, Kar. HC held that the
definition of workmen for the purpose of Trade
Unions is a lot wider than in other acts and that the
emphasis is on the purpose of the association rather
than the type of workers and so it is a valid Trade
Union.
In the case of Tamil Nadu NGO Union vs Registrar,
Trade Unions, AIR 1962, Madras HC held that Tamil
Nadu NGO Union, which was an association of sub
magistrates of the judiciary, tahsildars, etc., was not
a trade union because these people were engaged in
sovereign and regal functions of the State where were
its inalienable functions
6. Under section 15 a registered trade union has a right to
establish a general fund.
Under section 16, a registered trade union has a right to
establish a political fund. Subscription to this fund is not
necessary for a member.
Under section 24, trade unions have the right to
amalgamate.
Under section 28-F, the executive of a registered trade
union has a right to negotiate with the employer the
matters of employment or non-employment or the terms
of employment or the condition of labor of all or any of
the members of the trade union
The employer shall receive and send replies to letters and
grant interviews to such body regarding such matters.
It further provides that the executive is entitled to post
notices of the trade union meant for its members at any
premises where they are employed and that the employer
shall provide reasonable facilities for that.
7. Section 3 (Appointment of the
Registrar) : The appropriate
government appoints a person to be
the registrar or trade unions for
each state.
When the prerequisite
documentation is completed, the
Registrar issues a Certificate of
Registration.
8. An application must be sent to the Registrar of Trade
Unions appointed by an appropriate government.
The application must be made by seven or more persons
who are engaged in the trade or industry in connection to
which the Trade Union is to be formed.
All the applicants must subscribe their names to the rules
of the Trade Union and comply with the provisions of this
act regarding registration.
There must be at least 10% or 100, whichever is less,
members who are engaged or employed in the
establishment or industry to which it is connected.
If more that half of the persons who had applied for the
registration cease to be members of the union or expressly
disassociate themselves from the application, the
application for Registration will be deemed to be invalid.
9. The application should be sent to the registrar along with
the copy of the rules of the trade union. (The rule book
should be enclosed).
It must contain a statement of the following particulars:
The name, occupation, and addresses of the applicants.
The name of the trade union and the address of its head
office.
The titles, names, ages, addresses, and occupations of the
office bearers of the trade union.
If the trade union has been in existence for more than 1 yr,
a general statement of its assets and liabilities.
10. Specifies the provisions that should be contained in the rule book of the trade union.
A copy of this rule book must be supplied along with the application for registration of the
trade union.
This rule book details the internal administration of the trade union and also determines and
governs the relationship between the trade union and its members. It must contain the rules
for the following matters:
Name of the trade union
Object of the trade union
Purposes for which the general funds can be used.
Maintenance of the list of members and adequate facilities to inspect it by the members of the
trade union ( the membership of ordinary members who are actually engaged or employed in an
industry with )which it is connected as well as the membership of the honorary or temporary
members.
Rules related to the appointment of members of the executive body.
The membership or subscription fee.
The conditions under which a member can get the benefits or has to pay fines.
The safe custody of funds and provisions for inspecting or auditing the statements, or other
documents of the trade union.
Dissolution of the trade union.
11. M T Chandersenan vs Sukumaran AIR 1974,
SC held that if a member fails to pay
subscription fee, he cannot be considered a
member of the trade union. However,
subscriptions cannot be refused under some
pretext which results in the denial of
membership.
In the case of Bokajan Cement Corporation
Employees Union vs Cement Corporation of
India, 2004, SC held that membership of the
union does not automatically cease upon
termination of the employment.
12. • The registrar has the power to ask for further
information from the trade union to satisfy
himself that the trade union complies with section
5 and is eligible to be registered under section 6.
• The registrar can refuse to register the trade
union until he receives the information.
• Held in Kesoram Rayon Workers union Vs Registrar
of Trade Unions(1968)Lab IC 1539 CalDB that if
the requirements are complete, the registrar
cannot refuse to grant certificate of Registration.
The power of the registrar is not discretionary.
13. The purpose of section 7 is that the general public,
members of the union are not deceived that the
union which seeks registration of a name is
connected to one already registered.
Further, the Registrar has the power to ask to
change the name of the trade union if a union with
the same name already exists or if he feels that the
name could be deceiving or confusing to the public
or the members of the trade union. Held in All India
Trade Union Congress Vs Registrar of Trade Unions
(2006)110FLR(Bom)
14. • Under section 8, upon satisfaction of all the
requirements, the Registrar of the Trade
Unions will register the trade union. It is
mandatory for the registrar to register a
trade union if the union satisfies all the
technical requirements of this act.
•
Under section 9, the registrar will issue the
certificate of registration in the prescribed
form, which shall be a conclusive evidence
that the trade union is registered under this
act.
15. In the case of re Indian Steam Navigation Workers
Union AIR 1936 SC held that a Registrar only has to see
whether all the technical requirements are being
fulfilled and not whether it could be described as
unlawful.
In the case of ACC Rajanka Limestone Quarries
Worker's Union vs Registrar of Trade Unions, AIR
1958, it was held that if the registrar does not register
the trade union within 3 months of application, an
appeal can be made to the High Court under art 226.
Held in the case of Raymond Synthetics Vs. Registrar
of Trade Unions.(1994)2LLN 81 that it is not
incumbent upon the Registrar to hear other existing
unions before registering a new union.
16. Under section 10, the Registrar of Trade Unions has
the power to cancel the registration of a trade union in
the following conditions:
Provided that 2 months notice in writing stating the
ground on which it is proposed to cancel the certificate
of Registration shall be given by the registrar to the
trade union.
If the registrar is satisfied that registration was
obtained by fraud or mistake.
If the trade union has ceased to exist.
Financial irregularities in the accounts have been
shown
If the trade union willfully, upon notice of the
registrar, has contravened or allowed any rule to
continue in force, which is inconsistent with the
provisions of this act.
17. If the trade union rescinds( to go back) any rule
providing for any matter, provision for which is
required to be made in section 6.
If the registrar is satisfied that a trade union of
workmen has ceased to have the requisite number of
members.
Held in Coromandel Cement Factory Employees Union
Vs Deputy Registrar Trade Unions 2001 LLR 170 (AP)
that Cancellation of Registration without giving a show
cause notice is liable to be set aside as no opportunity
for representing his case has been given to the party
and such an act is violative of the principles of Natural
Justice.
18. An appeal may be made in case :
1) There is refusal by the registrar to register the
Trade Union Or
2) If there is a cancellation of the certificate of
registration
Such appeal may be made to the High Court, if the
head office of the trade union is located in a
presidency town.
The labour court or industrial tribunal, if the head
office of the trade union is located in its
jurisdiction.
If the head office of the trade union in any other
location, then the application can be made 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 govt. may appoint
in this behalf for that area.
19. Registration is done at the intiative of the
Trade Union.
Certificate of Registration is issued by
Registrar after procedure detailed in Sec’s
4,5,6 is followed.
Recognition is granted by the employer to
Trade Unions for facilitating negotiations and
effective collective bargaining.
20. There is no concept of a recognised union
under the Trade Union Act or the Industrial
Disputes Act.
Held in Kampali Cooperative Sugar Factory Vs
its Management(1995)ILLJ725 Kar H.C. A
union cannot enforce the right of recognition
against a management by writ, since there is
no statutory provision.
21. Held in Food Corporation of India Workers
Union VsFCI 1996(L&S)1255(SC) where a
particular union has represented the
workmen for over 3 decades and carried out
negotiations, such union cannot be said to be
“Not Recognised”.
Refusal to grant Recognition, or withdrawal
of Recognition once granted, without
affording a opportunity of hearing to the
Trade Union is opposed to principles of
Natural Justice.
22. Held in Hindustan Copper Mazdoor Sangh Vs
Chief Commissioner ministry of labour
Government of India (1986)IILLN228Raj HC
that the High Court can interfere if principles
of natural justice are not followed.
However, under Art 226,the HC does not
have the right to quash recognition of one
union and accord it to another union.
23. The following are some restrictions on a registered trade union.
A Trade Union cannot spend the funds on anything the office bearers want. It can spend funds
only on the activities specified in Section 15. These include:
salaries of the office bearers.
expenses required for the administration of the trade union
compensation to workers due to loss arise of any trade dispute.
welfare activities of the workers including housing, clothing, or any such activity.
benefits to the workers or their dependents in the case of unemployment, disability, or
death.
publishing material for creating awareness in the workers.
legal expenses required for defending or bringing a suit.
education of workers or their dependents.
expenses for medical treatment of workers.
taking insurance policies
24. Section 17 confers immunity from liability in the
case of criminal conspiracy under section 120-B of
IPC, committed by an office bearer or a member.
However, this immunity is partial in the sense that it
is available only with respect to the legal
agreements created by the members for the
furtherance of valid objects of a trade union as
described in section 15 of the act.
Registered Trade Unions have certain rights to do in
furtherance of their trade disputes such as calling for
strike, persuading members to protest, distributing
pamphlets, making speeches to garner support for
the union or educate the employees about any
unjust act of the management etc.
25. The immunity can be claimed by a trade
union for an act which is done in furtherance
of a trade dispute:
Immunity is restricted to breach of contract of
employment Eg. Calling for a strike. Charges of
criminal conspiracy cannot be leveled against
the trade union. If workers go on strike, it is a
breach of contract of employment which would
give rise to civil action for damages. If 2 or
more workers commit such an illegal act as a
concerted act, it would fall within the ambit of
criminal conspiracy.
The Trade Union Act provides immunity for
such conspiracy as long as no offence is
committed.
26. Immunity cannot be claimed for an act
that is an offence. Even, if an act of
the trade Union is in promotion of a trade
dispute and this involves a violent act or
illegal means then members cannot claim
immunity.
Eg.For Deliberate Trespass (Dalmia
Cement Case) or
Molestation during picketing R.S.Ruikar
Vs Emperor AIR1935
TU members cannot claim immunity
27. • In general, a person is liable in torts for inducing
another person to breach his contract of
employment or for interfering with the trade or
business of another.
• However, a trade union, its officers, and its
members are immune from this liability provided
that such an inducement is in contemplation
or furtherance of a trade dispute.
• Further, the inducement should be lawful.
There is no immunity against violence, threats,
or any other illegal means.
28. A trade union cannot force members to subscribe to political fund under section
16.
Under section 20 a trade union must make available all its record books of
accounts and list of membership for inspection upon request of any member or his
representative.
Section 21 allows minors more than 15 yrs of age to be members of a trade union.
However, such minors cannot hold office.
Under section 21-A, a trade union cannot appoint a person as an office bearer of
a trade union if he has been convicted of a crime involving moral turpitude and has
been imprisoned for 6 months or more within last 5 years.
As per section 22, at least half of the office bearers of a trade union of workers of
unorganized sector must be engaged or employed in an industry to which the trade
union is connected. Also, while a union has a right to remove any office bearer,
this power must be used judiciously and rules of natural justice must be followed.
Under section 28, a general statement, audited in a prescribed manner, of all
income and expenses must be sent to the registrar every year.
29. In India, an agreement in restraint of trade is
void as per section 25 of Indian Contract Act.
However, such an agreement between trade
union members is neither void nor voidable.
It is important to note that this right is
available only to registered trade unions.
An unregistered trade union must follow the
principles of general contract law
30. • Section 24 says that any two or more registered trade
unions may become amalgamated together into one
trade union with or without dissolution or division of
the funds of such trade unions or either or any of
them, provided that votes of at least one half of the
members of each trade union are recorded and at
least 60% of the votes of each trade union are in favor
of the proposal.
•
The notice of such amalgamation, signed by the
secretary and seven members of each of the trade
unions, should be sent to the registrar of the state
where the head office of the amalgamated trade union
is to be located. If the registrar is satisfied that all the
provisions of this act have been complied with and the
trade union formed thereby is entitled to registration
under section 6, he will register the new trade union
under section 8 and the amalgamation will take effect
from the date of registration.
31. The notice of dissolution signed by seven members
within 14 days of dissolution will be sent to registrar
and shall be registered by him if he is satisfied that
the dissolution has been affected in accordance with
rules of the TU.
Dissolution shall have effect from the date of
registration.
Where rules do not provide for distribution of funds,
registrar shall divide funds among members as may be
prescribed.
32. Safeguards workers against all sorts of exploitation by
the employers, by union leaders and by political
parties.
Protects workers from the atrocities and Unfair Labour
Practices of the management.
Works to ensure healthy, safe and conducive working
conditions.
Exerts pressure for enhancement of rewards associated
with the work only after making a realistic assessment
of its practical implications
33. To minimize the helplessness of individual workers
by making them stand collectively.
To provide the workers with self confidence.
They take up welfare measures for betterment of
conditions for the workers.
To remove the dissatisfaction and redress the
grievances and complaints of workers.
34. To encourage worker’s participation in the
management of industrial organization and trade
union, and to foster labor-management
cooperation.
They help in raising the status of workers as
partners in industry.
To make the workers conscious of their rights and
duties and work towards imbibing discipline in
workers.
35. To impress upon works the need to exercise
restraint in the use of rights and to enforce
them after realistically ascertaining their
practical implications.
They promote cordial and amicable relations
between the workers and management by
settling disputes through negotiation, joint
consultation and voluntary arbitration, and
by avoiding litigation.
36. To highlight that industrial organization is a joint
enterprise between workers and management and
to promote identity of interests.
To increase production quantitatively and
qualitatively, by laying down the norms or
production and ensuring their adequate
observance.
To create opportunities for worker’s participation
in management and to strengthen labor-
management cooperation
37. They exert pressure on the employer
a) Enforce legislative provisions beneficial to the
workers.
b) Share the profits equitably (ESOP schemes)
c) Keep away from various types of unfair labor
practices.
Impress upon the management the need to adopt
reformative and not punitive approach .
38. To improve the network of communication
between trade unions and its members.
To curb inter-union rivalry and thereby help
in the creating of unified trade union
movement.
To resolve the problem of factionalism and
promote unity and solidarity within the
union.
To preserve and strengthen trade union
democracy
39. To improve financial position by fixing higher
subscription, by realizing the union dues and by
organizing special fund-raising campaigns.
To train members to assume leadership position
To save the union organization from the
exploitation by vested interests –personal and
political
40. JYOTICA BHASIN
LAW OFFICES OF BHASIN AND BHASIN
B-33 SOUTH EXTENSION PART-II,
NEW DELHI 110049
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