Chapter 4(D) The Trade Union Act, 1926 – CS Professional Labour Laws and Practice Notes is designed strictly as per the latest syllabus and exam pattern.
The Trade Union Act, 1926 – CS Professional Labour Laws and Practice Study Material
Question 1.
There was dispute between the management of XYZ and Co. and its workers union, which was registered under the Trade Unions Act, 1926. The said dispute related to the introduction of productivity linked bonus scheme. The union decided to go on strike and served a notice on the management. The Union chalked out a detailed programme to make the strike success. It was decided not to resort to violence.
As expected, the strike which commenced on the expiry of the notice was a great success. The management wants to initiate criminal proceeding against the office bearers of the trade union and also wants to file a civil suit against the union for the loss suffered due to strike action. Advise the management according to provisions of Trade Union Act, 1926, will it make any difference in your answer, if the workers had gone on strike to protest the new Industrial policy announced by the Government? (Dec 2021, 6 marks)
Answer:
Trade Union means “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”.
Trade union is a voluntary organization of workers pertaining to a particular trade, industry or a company and formed to promote and protect their interests and welfare by collective action. They are the most suitable organisations for balancing and improving the relations between the employer and the employees. They are formed not only to cater to the workers’ demand, but also for inculcating in them the sense of discipline and responsibility.
Section 17 of the Act deals with Criminal conspiracy in trade disputes. It provides that no office-bearer or member of a registered Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal Code 1860, 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.
Further Section 18 of the Act deals with immunity from civil suit in certain cases. It states that:
(1) 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 of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortious 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 Union.
Thus from the above and as per facts given in the case study, the management of XYZ & Co. cannot succeed in a civil suit for recovery of damages for causing loss to the property of the company or initiate criminal proceeding against the office bearers of the trade union. However, those workers who became violent and caused substantial loss to the establishment are civilly and criminally liable for their acts.
If the workers had gone on strike to protest the new Industrial policy announced by the government, the office bearers would be liable for damages as the strike in that case would not be in contemplation or furtherance of a trade dispute as defined in section 2(g) of the Trade Union Act, 1926.
Question 2.
Define Trade Union.
Answer:
“Trade Union” means any combination
- Whether temporary or permanent
- formed primarily for the purpose of regulating the relations between:
- Workmen and Workmen.
- Employers and Employers.
- Workmen and Employers.
- or for imposing restrictive conditions on the conduct of any trade or business
- Includes any federation of two or more trade unions.
Question 3.
How can a Trade Union be registered?
Answer:
- Any 7 or more members of the trade union by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the trade union under this Act.
- Application for registration of a Trade union shall be made to the Registrar.
- It shall be accompanied by a copy of the rules of the Trade Union and statement containing following particulars.
- Names, occupations and addresses of the members making the applications,
- Name of the trade union and the address of its head office;
- Names, ages, addresses and occupation of the office bearers of the Trade Union.
- The Registrar on being satisfied shall register the Trade union by entering in a register and issue a certificate of registration.
Question 4.
What are the Provisions contained in the rules of a Trade Union ?
Answer:
Following matters need to be provided for registering a Trade Union:
- Name of the Trade Union
- Object of the Trade Union
- Purposes for which the general funds of the Trade Union shall be applicable
- Maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the office bearers and members of Trade Union
- admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected
- payment of a minimum subscription by members of the Trade Union
- conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members
- manner in which the rules shall be amended, varied or rescinded
- manner in which the members of the executive and the other office bearers of the Trade Union shall be elected and removed
- duration of period being not more than three years, for which the members of the executive and other office bearers of the Trade Union shall be elected
- the safe custody of the funds of the Trade Union, an annual audit, in such manner as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office bearers and members of the Trade Union
- the manner in which the Trade Union may be dissolved.
Question 5.
What are the Objects on which general funds of Trade Union may be spent?
Answer:
- Payment of salaries, allowances and expenses of office bearers of trade union.
- Expenses for administration of the trade union.
- Prosecution or defence of any legal proceeding of trade union.
- Conducting trade disputes on behalf of trade union or its members.
- Compensation of members for loss arising out of trade union.
- Publication of periodical
Question 6.
Who is disqualified from being appointed as Office bearer of Trade Union?
Answer:
- A person shall be disqualified for being chosen as an office bearers of Trade Union if he
- has not attained the age of eighteen years.
- has been convicted by the Court in India of any offence involving
- moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release.
Question 7.
How is a Trade Union dissolved?
Answer:
- When a registered Trade Union is dissolved notice of the dissolution signed by seven members and by the secretary of the Trade Union, within fourteen days of dissolution, shall be sent to the registrar.
- The registrar shall register the same.
- Where the rules of the Trade Union do not provide for the manner of distribution of funds of the Trade Union, the Registrar shall distribute the funds amongst the members in such manner as may be prescribed.
Question 8.
Who is disqualified from being appointed as Office bearer of Trade Union?
Answer:
- General statement audited in the prescribed manner of all receipt & expenditure of every registered trade union during the year ending on the 31st day of December preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of December, shall be sent annually to the Registrar.
- A statement showing all the changes of office bearers made by the trade union during the year to which general statement refers shall also be sent to registrar.
- A copy of every alteration made to the rules of registered trade union shall also be sent to registrar within 15 days of making of alteration.
The Trade Union Act, 1926 Notes
Trade Union
“Trade Union” means any combination
- Whether temporary or permanent
- formed primarily for the purpose of regulating the relations between:
- Workmen and Workmen.
- Employers and Employers.
- Workmen and Employers.
- or for imposing restrictive conditions on the conduct of any trade or business
- Includes any federation of two or more trade unions.
Mode of registration of Trade Union
Any 7 or more members of the trade union by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the trade union under this Act.
Application for registration of Trade Union:
- Application for registration of a Trade union shall be made to the Registrar.
- It shall be accompanied by a copy of the rules of the Trade Union and statement containing following particulars.
- Names, occupations and addresses of the members making the applications,
- Name of the trade union and the address of its head office;
- Names, ages, addresses and occupation of the office bearers of the Trade Union.
Registration & Certificate of Registration
The Registrar on being satisfied shall register the Trade union by entering in a register and issue a certificate of registration.
Objects on which general funds of Trade Union may be spent
- Payment of salaries, allowances and expenses of office bearers of trade union.
- Expenses for administration of the trade union.
- Prosecution or defence of any legal proceeding of trade union.
- Conducting trade disputes on behalf of trade union or its members.
- Compensation of members for loss arising out of trade union.
- Publication of periodical
Constitution of a separate fund for political purposes
A registered Trade Union can constitute a separate fund, from contribution received which can be utilised for the promotion of the civic and political interests of its members.
Disqualifications of office bearers of Trade Unions
- A person shall be disqualified for being chosen as an office bearers of Trade Union if he
- has not attained the age of eighteen years.
- has been convicted by the Court in India of any offence involving
- moral turpitude and sentenced to imprisonment, unless a period of
- five years has elapsed since his release.
Dissolution of Trade Union
- When a registered Trade Union is dissolved notice of the dissolution signed by seven members and by the secretary of the Trade Union, within fourteen days of dissolution, shall be sent to the registrar.
- The registrar shall register the same.
- Where the rules of the Trade Union do not provide for the manner of distribution of funds of the Trade Union, the Registrar shall distribute the funds amongst the members in such manner as may be prescribed.
Returns
- There shall be sent annually to the Registrar, a general statement audited in the prescribed manner of all receipt and expenditure of every registered trade union during the year ending on the 31st day of December preceding such prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of December.
- A statement showing all the changes of office bearers made by the trade union during the year to which general statement refers shall also be sent to registrar.
- A copy of every alteration made to the rules of registered trade union shall also be sent to registrar within fifteen days of making of alteration.