Trade Union Act 1926 Overview

Trade Union Act 1926

• Grants immunity to registered trade unions
• Recognizes trade unions
• Includes the Industrial Employment (Standing Orders) Act 1946

Trade Union Definition

• A trade union is "any combination" (temporary or permanent) formed primarily to regulate relations between workers (or employers)
• Includes any federation of two or more trade unions
• Aims to promote and protect workers' interests and welfare through collective action
• Helps balance and improve employer-employee relations
• Encourages discipline and responsibility among workers

Trade Unions Act, 1926 (Introduction)

• Deals with trade union registration, rights, liabilities and responsibilities
• Ensures proper use of union funds
• Grants legal and corporate status to registered unions
• Protects unions from criminal and civil prosecution
• Applicable to both worker unions and employer associations
• Covers the entire country (India)

Definitions (Section 2)

• Executive: The body managing the trade union's affairs
• Office-bearer: A member of the executive, excluding auditors
• Registered office: The officially registered headquarters of a trade union
• Registered trade union: A trade union registered under the Act

Trade Dispute

• A dispute between employers and workers, or workers and workers, or employers and employers
• Concerns employment, non-employment, terms of employment, or labor conditions
• "Workmen" encompasses all persons in trade or industry, regardless of employer

Mode of Registration (Section 4)

• Seven or more members can apply for trade union registration by subscribing to the union's rules and complying with the Act
• A minimum of 10% or 100 (whichever is fewer) of the workers employed in the establishment (or industry) must be members of the union at the time of application

Application for Registration (Section 5)

• Applications must include copies of the trade union's rules and a statement of details
• Details include member names, occupations, addresses
• For worker unions, member addresses and work locations are needed
• Includes trade union name, headquarters address, and officer titles, names, ages, addresses and occupations

Recognition of Trade Unions

• Indian Parliament passed the Indian Trade Union (Amendment) Act, 1947, intending to create Chapter III-A in the Trade Union Act of 1926
• To outline conditions needed for official union recognition.
• However, the chapter was never implemented.
• Currently, no law mandates union recognition in India

Need for Recognition (of Trade Unions)

• Collective bargaining is part of the employer-employee relationship
• While union registration is one step, official recognition as an exclusive bargaining representative is crucial
• Recognition disputes have often led to industrial strikes
• Management mainly bargains with recognised unions

Rights Granted on Recognition

• The lack of statutory provision for recognition means disputes cannot be resolved through writs
• Recognition doesn't automatically create a legal right
• Withdrawal of recognition does not violate any legal rights

Methods of Recognition

• Voluntary recognition: Employers willingly acknowledge union representation
• Statutory recognition: Government regulations mandate employer recognition of specific unions

Recognition by Management

• Voluntary recognition crucial for union success
• Essential for a trade union's effectiveness
• Requires employer acknowledgement of legitimacy

Election by Secret Ballot

• All eligible workers vote for their preferred union
• Typically through a neutral agent (e.g., Registrar of Unions)
• Results usually valid for around two years

Check-Off Method

• Workers authorize deductions from wages for union fees and their transfer to the chosen union
• Provides management with union strength insight
• Prone to manipulation, requiring universal union acceptance

Immunity Granted to Registered Trade Unions (Criminal)

• Members and administrators of registered trade unions benefit from privileges and immunities under the Trade Unions Act 1926
• Permits lawful union activities without fear of legal action

Criminal Complicity (Section 17)

• Agreement with another union member to pursue objectives (listed in section 15) can lead to penalties

Importance Section 15

• Funds, earnings, and benefits of unions cannot be used for other purposes
• Covers administrative expenses, disputes, and compensation

Civil Immunities (Section 18)

• Registered trade unions, officers, and members are immune from civil liability in certain scenarios (trade disputes)
• Protecting unions when engaging in actions related to trade disputes
• Shielding from lawsuits relating to employment contracts, interference with business, or impairing workers' rights to capital or labor

Industrial Employment (Standing Orders) Act, 1946

• Establishes employment conditions in industries with 100 or more employees
• Standing orders define recruitment, discharge, disciplinary actions, holidays, and leaves
• Ensures clear definitions throughout the entire industry
• Standing orders, when certified, must be displayed prominently

Important Definitions

• Appellate Authority: An official body designated to hear appeals
• Appropriate Government: Central or State, depending on the industry
• Certifying Officer: A Labour Commissioner or Regional Labour Commissioner

Additional definitions

• Employer: Includes industrial establishment owners, managers, department heads, and any authority appointed by the government or those responsible to the owners for the supervision/control of the establishment

Industrial Establishment

• (i) Defined by the Payment of Wages Act of 1936
• (ii) Factories Act of 1948
• (iii) Indian Railways Act of 1890
• (iv) Establishments where people contract for a purpose(employing workers)

Standing Orders

• Rules related to the subjects defined in the Act schedule
• "Wages" and "workmen" definitions from the Industrial Disputes Act

Matters in Standing Orders

• Worker classification (permanent/temporary, etc.)
• Work timings, holidays, and wage rates
• Attendance policies
• Leave procedures and holiday entitlements
• Entry restrictions for establishments
• Industrial establishment closures and reopening matters

Additional matters (coal mines, termination of employment, and redress measures)

• Medical aid during accidents
• Railway travel access
• Vacancy filling processes
• Employee transfer policies
• Manager's liability and service certificates
• Standing Orders exhibition

Additional Matters in Standing Orders

• Service records, age details, confirmation, transfers, medical support, and more
• Includes legal requirements regarding gender equality and sexual harassment prohibitions within industries