Trade Unions and Industrial Relations in India

Posted on May 17, 2024 in Law & Jurisprudence

Unfair Labour Practices and Penalties

Section 2(ra) defines unfair labour practices as any of the practices specified in the 5th schedule to the act. The 5th schedule enumerates unfair labour practices on the part of employers and trade unions of employers, as well as workmen and trade unions of workmen.

Unfair Trade Practices on the Part of Employers and Trade Union of Employers

  1. Threatening workmen with discharge or dismissal if they join a trade union.
  2. Threatening a lockout or closure if a trade union is organized.
  3. Taking an active interest in organizing a trade union of his workmen.
  4. Showing penalty or granting favor to one of several trade unions.
  5. Establishing employer-sponsored trade unions of workmen
  6. Discharging or punishing a workman because he urged other workmen to join or organize a trade union.
  7. Discharging or dismissing a workman for taking part in any strike
  8. Changing seniority rating of workmen because of trade union activities
  9. Refusing to promote workmen to higher posts on account of their trade union activities
  10. Giving unmerited promotions to certain workmen with a view to undermine the strength of their trade union.

Unfair Labour Practices on the Part of Employees and Trade Union of Employees

  1. To advise, support, or actively support or instigate a strike deemed to be illegal under this act.
  2. To coerce workmen in the exercise of their right to self-organization or to join a trade union or refrain from trade union
  3. For a recognized union to refuse to bargain collectively in good faith with the employer.
  4. To indulge in coercive activities against certification of a bargaining representative.
  5. To stage demonstrations at the residences of employers or the managerial staff members
  6. To incite or indulge in willful damage to employers’ property connected with industry.

According to Section 25-U, any person who commits any unfair trade practice shall be punishable with imprisonment for a term which may extend to 6 months or with a fine which may extend to 100rs or with both.

Trade Movement in India

The first association of mill workers was formed in the 1890s in Bombay. The name of the association was the Bombay Millhands Association. This association was established for the redressal of grievances of Bombay mill workers. The trade union movement in India got impetus by the success of strikes in India and worldwide uprising of labor consciousness. The establishment of the International Labour Organization has also influenced the growth of the trade union movement in our country. The Trade Union Act was passed in 1926 and came into force in June 1927. It extends to the whole of India. The object of this enactment is to make necessary provisions regarding the registration of trade unions and to define the law in certain respects.

Trade Dispute

Section 2(g) of the Trade Union Act 1926 defines a trade dispute as any dispute:

  1. Between employer and workmen
  2. Between workmen and workmen
  3. Between employers and employers

Any such dispute can be connected with:

  1. The employment
  2. Non-employment
  3. The terms of employment
  4. The condition of labor of any person.

Trade Union

Section 2(h) defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between:

  1. Workmen and employers.
  2. Workmen and workmen
  3. Employers and employers.

A combination formed for imposing restrictive conditions on the conduct of any trade or business is also a trade union. It includes any federation of two or more trade unions, but the following are not trade unions within the meaning of the act:

  1. Any agreement between partners as to their business
  2. Any agreement between an employer and those employed by him as to such employment
  3. Any agreement in consideration of the sale of goodwill of a business or of instruction in any profession, trade, or handicraft.

A trade union, in common parlance, means an association of workers in a particular craft or industry. In a strictly legal sense, it means an association formed primarily for the purpose of regulating the relations between workmen and employers, or between the workmen and workmen, or between employers and employers.

Registration of Trade Unions

Section 3 of the Trade Union Act directs that the appropriate government should appoint a person to be the Registrar of Trade Unions for each state. The government is authorized to appoint additional or deputy registrars of trade unions, who shall work under the superintendence and direction of the registrar. A trade union may be registered, unregistered, or a recognized trade union. The members enjoy several benefits when compared with unregistered trade union members. A trade union shall not be registered unless at least 10% OR 100 OF THE WORKMEN WHICHEVER IS LESS engaged or employed in the establishment or industry with which it is connected are the members of such trade union on the date of making of application for registration.

A trade union shall not be registered unless it has on the date of making of application not less than seven persons as its members. Application for registration of a trade union is to be made to the Registrar of Trade Unions. It must be accompanied by a copy of its rules and a statement of the following particulars:

  1. The name, occupation, and addresses of the members making the application
  2. In the case of a trade union of workmen, the names, occupations, and addresses of the place of work of the members of the trade union.
  3. The name of the trade union and the address of its head office
  4. The titles, names, ages, addresses, and occupations of the office bearers of the trade union.

By Section 6, a trade union is entitled to registration only if the executive is constituted in accordance with the provisions of the act and its rules provide for the following matters:

  1. The name of the trade union
  2. The whole of its objects
  3. The whole of the purposes for which the general funds of the trade union shall be applicable
  4. The maintenance of a list of members of the trade union and adequate facilities for inspection.
  5. The payment of a minimum subscription by the members of the trade union.
  6. The manner in which rules shall be amended or varied
  7. The manner in which the trade union may be dissolved.

Registration and Certificate

By Section 8 of the act, the registrar, on being satisfied that the trade union has complied with all the requirements of this act in regard to registration, shall register the trade union. He shall register the trade union by entering in a registrar, to be maintained in such form as may be prescribed, the particulars relating to the trade union contained in the statement accompanying the application.

Hindustan Copper Mazdoor Sangh vs Chief Labour Commissioner 1968: Held that the right of workers to form a trade union is a fundamental right, and any trade union satisfying the requirements of the Trade Union Act 1926 is entitled to registration.

Cancellation of Registration

; sec 10 , acertificate of registration of a trade union may be withdrawn or cancelled by registrar under following circumstances : a)on the application of trade union  b)if the registrar is satisfied,that the certificate has been obtained by fraud or mistake c)if the registrar is satisfied that a registered trade union of workmen ceases to have the requisite number of members.

hindustan copper mazdoor sangh  vs chief labour commisioner 1968.


#RIGHTS AND LIABILITIES OF REGISTERED TRADE UNION :

The registered trade union are those which are registered under the provisions of this act .the trade union which have the certificate ogf registration shall be deemed to be registered trade inion.there is no provision in the act which compels the registration of trade unions.however when a trade union is registered under this act,certain rights as well as liabilities are arising out of such registerartion. 

Rights and privilages of registered trade unions :

a)body corporate b)seperate funf for political purpose  c)immunity from punishment for criminal conspiracy D)immunity from civil liabilities e0right to minors of membership

Duties and liabilities of registerd office :

a)notice of change of registered office  b)objects on which general funds may be spend   c)constitution of funds for political purpose (sec(16))  d)prpotion of office bearers to be connected with the industry  e)returns- sec 28 f)disqualifications of office bearers of trade union :sec 21-a

Amalgamation of trade unions :any 2 or more registered trade unions may be amalgamated together as one trade union with or ewithout dissolution or division of funds of such trade unions.the amlagamation shall take place only when votes of at least one half of the members of each trade union entitled to vote are recorded,and that at 60% of votes recorded are in favour of the proposal of amalgamation.





#COLLECTIVE BARGAINING AND INDUSTRIAL PEACE :

Collective bargaining is the method by which problems of wages and conditions of employment are dissolved amicably,peacefully and voluntarily betwwn labour and management.it is the negotiation between the employer  and employees to reach agreement on working conditions.

The development of an undertaking or an industry depends upon the industrial peace,it can be achieved by peaceful settlements of diffrences between management and labour,collective bargaining is the technique for voluntary regulations of industrial relations.

Advantages of collective bargaining : a)it is quick and efficient  b)it is more democrartic c)produces nore harmonious relationship between employers and workers.

Disadvantages of collective bargaining : a)the consumers are represented in the bargaining though they bear the burden of settlements raising wages and the consequential price hike.  b)the collective bargaining settlements flow more power politics than from rational and moral thought c)under this system,when the bargaining parties fail to agree,intorable strikes some times occur.

Bargaining power : the strength of parties really determines the issues rather than the wordly duel.in other words the success of collective bargaining depends upon strngth of parties.the strength of employer depend supon A)the availability of substitute labour  B)the market demand for his goods C)the effect that a closure would have on the bcompany and its customers during a strike.

The workers strngth depends upon : a)thier capacity to undergo hardship during strike  b)the availability of alternate employment c)the financial position of the union 


#THE INDUSTRIAL EMPLOYMENT ACT 1946 :

The industrial employment act was enacted in 1946.prior to the passing of this enactment ,conditions of employment in several industrial establishments were governed by contracts b/w the employers and thier empolyees,this act made relevant provisions of making standing orders which,after they are certified,constitute the statutory terms of employment b/w industrial establishments in questions and thier emplyees.this act extends to whole of india.it applies to every industrial establishment wherein 100 or more workmen are employed.

Balakrishna pillai and others vs anant enginnering works 1975 :  held that once the act becomes applicable to an industrial establishment it does not cease to apply on account of fall in the number of workmen in that establishment below 100.



#STANDING ORDERS:

Sec 2(g),means rules relating to matters set out in the schedule to the act.yhey are a)classification of workmen ie, whether permanent,temporary prbationers or badlis.   b)manner of intimating to workmen periods And hours of work,holidays etc c)shift working d)attendence and late coming E)conditions of procedure in applyng for and the authority which may grant leaves and holidays  F)requirement to enter premises by certain gate and liablity to search G)termination of employment and notice thereof to be given by workmen and employer. H)suspensiomn or dismissAL FOR MISCONDUCT AND ACT OR Ommision which constitute misconduct   I)means of redress for workmen against unfair traetment or wrongful exaction by the employer J)any other matter which may be prescribed.

Management SS railway co. vs ss railway workers union 1969 ; court observed that the act being a beneficement piece of legislation it will not be improper to include certain matters not enumerated in the schedule of the ACT.


#SUBMISSION,CERTIFICATION,MODIFICATION ETC OF STANDING ORDERS :

The employer shall submit to certifying officer 5 copies of the draft standing orders proposed by him for adoption in his industrial establishment sec 3(1).such a draft standing order is to be sumbitted within 6 months applicable to industrial estblishment.the draft standing orders submitted under sec 3 shall be accompanied by a statement giving the following particulars of thge workmen employed in the industrial establishment.  a)total no. of workmen b) no. of permanent workmen c)no. Of temporary workmen d)no. Of badlis or substitutes e)no. Of probationers. e)no. Of apprentices

Register of standing orders:a copy of all nstanding orders as finnaly certified shall be filed by the certifying officer in a register maintained for this purpose,the certifying officer shall further furnish a copy of standing orders to any person sapplying for it on the payment of prescribed fee.

Posting of standing orders ; the contents and text of standing orders finally certified under the act shall be prominently posted by the employer in english and in the lamguage understood by the majority of his workmen,the a standing order   a)either on special boards maintained for the purpose b)at or near the entrance through which the majority of workmen enter c)in all departments where the workmen are employed.

Duration and modification:

Standing ordrers finally certified under the act shall  ot except on agreement b/w employer and workmen or a trade union or other representative body of workmen.be liable to odification until the expiry of 6 months from the date on which standing order or last modification thereof came into operation.