Labour Laws (Notes for Exam) PDF

**LABOUR LAWS** **UNIT I: HISTORICAL PERSPECTIVE ON LABOUR** 1.1: LABOUR CAPITAL CONFLICTS Includes exploitation of labour, profit motive, poor bargaining power, poyor working conditions, unorganised labour, bonded labour, surplus labour, division of labour and super specialisation- lack of alter...

**LABOUR LAWS** **UNIT I: HISTORICAL PERSPECTIVE ON LABOUR** 1.1: LABOUR CAPITAL CONFLICTS Includes exploitation of labour, profit motive, poor bargaining power, poyor working conditions, unorganised labour, bonded labour, surplus labour, division of labour and super specialisation- lack of alternative employment 1.2: LAISSEZ FAIRE TO WELFARISM TO GLOBALISATION 1. In the primitive and agrarian stage, no relationship existed 2. In the Serfdom stage or feudalism the lords had land for cultivation and there existed a relationship between the feudal lords and slaves or serfs 3. The relationship was quite unclear during the handicraft stage 4. Max Webber (Protestant ethics) -- the idea to work hard, do one's duty and save was the main concept behind protestant ethics. It also includes spending one's time and money in a manner to finally accumulate wealth 5. Finally the Industrial Revolution came about in England due to wealth, trade, scientific thought and commerce 6. This resulted in a factory system wherein masters developed factories where a capital economy was created (Laissez Faire philosophy) 7. People were brought from rural areas working under a common employer, common conditions, common problems and circumstances. The labour was unrested and forced to work which resulted in death, exploitation of labour and then protested against the factory system 8. The working conditions of the labourers especially children in mines were terrible and finally the Mines Act was passes restricting employment of children in coal mines 9. There was still unrest amongst the labourers and hence, resulted in riots and breakdown of machinery. Adam Smith's book 'wealth of nations' also had its impact at this time 10. The govt passed the notorious combination laws by which if employees breached contract, civil and penal action could be taken 11. The change from Laissez Faire to a welfare state resulted in better working conditions where trade unions began to be established 12. The International Labour Movement of 1836 i. It moved from England to Brussels. ii. It was the first reported event of injustice against workers which lead to various international movements and finally to the formation of the ILO iii. Robert Owen and Daniel supported the cause of the labour movement in France iv. Gradually membership went upto 10 million and legislation was demanded for protection of labour from exploitation 13. Second International movement 1890 the working class lost commitment and went to fight. The third international came about which also promoted the same cause 14. Then there was the Russian revolution which had the militant social approach. The treaty of Versailles at the end of the World War led to social justice under the ILO **[UNIT II: INTERNATIONAL LABOUR ORGANISATION]** 2.1: ILO GENESIS, AIMS AND OBJECTIVES 1. The ILO was established on April 19, 1919 by Versailles Peace Conference as an autonomous body associated with the League of Nations 2. It was the result of a peace conference at the end of World War I at Versailles and India became its member in 1919 as an original signatory to the treaty of peace 3. ILO was the only international organisation which survived World War II 4. It aims at trying to make the world conscious that world peace may be affected by the conditions of the working population 5. The unique feature of ILO is that it is a tripartite body consisting of representations of employees, labour and government 6. The objectives of ILO are enumerated in the preamble of its constitution and in the Declaration of Philadelphia (1994) supplemented by Article 427 of the Peace Treaty of Versailles (1919) 7. The Preamble affirms: i. Universal and lasting peace can be established only if it is based on social justice ii. Conditions of labour exist involving such injustice, hardship and privation to large numbers of people as to produce unrest that the peace and harmony of the world is imperilled iii. The failure of any nation in battering the conditions of the labour would degrade the economic progress of the country 8. The ILO has been attempting to promote world-wide respect for the freedom and dignity of the working men and to create conditions in which that freedom and dignity can be more fully and effectively enjoyed 9. During World War II, in a conference at Philadelphia the aims of the ILO were redefined. It was termed as Declaration of Philadelphia and incorporated in the constitution of the ILO 10. The conference reaffirmed the principles of ILO namely; i. Labour is not a commodity ii. Freedom of expression and of association is essential to substantial progress iii. Poverty constitutes a danger to prosperity everywhere iv. The war against want requires to be carried on with unrelenting vigour within each nation and by continuous and concerted international effort in which workers, employees and government representatives have equal status in free discussion and democratic decisions based on common welfare 11. The declaration of Philadelphia enunciated 10 objectives of the ILO: i. Full employment and raising of standard of living ii. Employment of workers in satisfactory occupation giving them fullest measure of their skill and make contribution to common well being iii. The provision of facilities for training and the transfer of labour including migration for employment and settlement iv. Policies in regard to wages and earnings bonus and other conditions of work calculated to ensure a just share of fruits of progress to all and minimum living wage v. The effective recognition for all collective bargaining, the co-operation of management and labour and collaboration of workers and employers in social and economic measures vi. The extension of social security measures to provide a basic income to all and comprehensive medical care vii. Adequate protection for life and health of workers viii. Provision for child welfare and maternity protection ix. The provision of adequate nutrition, housing and facilities for recreation and culture x. The assurance of educational and vocational opportunity 2.2: CONSTITUTION AND STRUCTURE 1. The constitution of the ILO provides that all states, who were members of ILO on 1^st^ November 1945 and any original member of UN can become member of ILO by accepting its obligations to its constitution 2. After amendment in 1945, the new rules say that : i. Membership of the UN does not mean membership of the ILO, any original member of the UN and any state subsequently admitted to membership of UN may become member of the ILO by communicating to the Director General, its formal acceptance of the rules and obligations of the ILO ii. If a state is not a member of the UN, the ILO confess on the International Labour Conference (ILC- parliamentary wing of the ILO), the right to admit the state to membership, which it has assumed defects during the period of the relationship of the ILO with the League 3. The ILO consists of 3 principal organs namely: i. International Labour Conference- supreme policy making and legislative body ii. The Governing Body- executive body iii. International Labour Office- secretarial, operational headquarters and information centre 4. The ILC (International Labour Conference) i. Comprises of 4 groups representing governments, employees and workers in a ration of 2:1:1 ii. Holds its sessions once a yr iii. Delegates to this session may be accompanied by advisors not exceeding two for each item on the agenda iv. As per the constitution, the employees and workers delegates to the conference are nominated by the govt of the state in agreement with respective organisations of employees and workers v. One of the primary functions of the conference is to appoint committees to deal with different matters during each session. These committees are tripartite in nature, except the finance committee vi. These committees are: a. The selection committees b. The credential committee c. The resolution committee d. A committee for application of conventions and recommendations e. The drafting committee f. The committed on standing orders g. The finance committee 5. Functions of the ILC: i. To formulate International labour standards ii. To fix amount of contribution by member states iii. To decide the expenditure budgeted estimate proposed by the Director General and submitted to Governing Body iv. To make amendments to the constitution subject to subsequent ratification of the amendments by 2/3^rd^ member states including 5 of the 10 states of industrial importance v. To consider the report of the Director General giving labour problems and assist in their solution vi. To appoint committee to deal with different matters during each session vii. To select once in 3 yrs members of governing body viii. To elect its President ix. To seek advisory opinion from the International Committee on Justice x. To confirm the powers, functions and procedure of regional conference 6. The Governing Body i. It is a non-political non-legislative body and implements decisions of the ILC with the help of the International Labour office. ii. It has 56 members out of which 28 represent government and 14 each represent employers and labour iii. Of the 28 government members, 10 are appointed by member states of Industrial importance and the balance are delegates of other governments iv. The criteria laid down for selection of member of industrial importance is strength of its total industrial population v. India is one of the states of industrial importance vi. The tenure is 3 yrs and it meets 7 times a yr 7. Functions of the Governing Body: i. To co-ordinate work of the organisation ii. To prepare agenda for each session and subject to the decision of the ILC to decide what subject should be included in the agenda of the ILC iii. To appoint the Director General iv. To scrutinise the budget v. To follow up the implementation of the conventions and recommendations adopted by the ILC by member states vi. To fix the date, duration and agenda of the regional conference vii. To seek advisory opinion from the International Court of Justice with the consent of ILC 8. The International and Labour Office: i. It functions as the secretariat of the ILO in Geneva ii. The Director of General of ILO is the Chief Executive of the secretarial iii. He is appointed by the Governing Body and also acts as Secretary General of the ILO with a tenure of 10 yrs which may be extended by the Governing Body iv. He is assisted by : a. Two Deputy Director Generals b. 6 Assistant Director Generals c. 1 Director of International Institute of Labour Studies d. 1 Director of International Centre of Advanced Technical And Vocational Studies e. Staff drawn from 100 nations 9. Functions of the International Labour Office: i. To prepare documents on the times of the agency for the conference ii. To assist governments in forming legislations on the basis of the decisions of ILC iii. To carry our it functions related to the observance of the conventions iv. To bring out publications dealing with industrial labour problems of international interest v. To collect and distribute information of international labour and social problems 10. Finance of the ILO: i. The budget is prepared and fixed on the recommendations of the Governing Body ii. Member states make their contributions, fixed on a ad hoc basis from yr to yr iii. India contributes 2.77% to the annual budget of the ILO 2.3: CONVENTIONS 1. The ILC provides a forum for discussion and deliberation of International labour problems and then formulate the standard in the form of conventions and recommendations 2. A convention is a treaty, which when rectified by the member state, creates binding international obligation on the state. A recommendation creates no such obligation 3. One of the fundamental obligation imposed on the governments by the constitution of the ILO is that they must submit the instruments before the competent national or state authorities, within a maximum period of 18 months of their adoption by such conference for such action as might be considered practical 4. ILO has so far adopted 173 conventions and 180 recommendations 2.4: INTERNATIONAL LABOUR STANDARDS AND LABOUR LEGISLATIONS IN INDIA 1. India has adopted many of the conventions and recommendations of the International standards for improvement of labour conditions under Art 3 of the constitution of the ILO 2. India has been nominating non-government delegates and advisors to the ILC every yr 3. India has ratified 36 ILO conventions and these have been incorporated in the Indian labour legislations 4. The ILO standards have a decisive impact on the factory, mines, social security and wage legislation in India 5. The ILO has also greatly influenced the trade union movement in India. AITUC owes its origin to the ILO 6. India's commitment to the ILO is reflected in its adherence to the institution of tripartism as a method of resolving labour management conflicts 7. ILO conventions have formed the sheet anchor of the Indian labour legislation 8. The DPSP in Arts 34, 41, 42 and 43 of the constitution lay down policy objectives in the field of labour having close resemblance and influence to the ILO constitution and Philadelphia Charter of 1944 **UNIT III- TRADE UNIONISM** 1. A trade union is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives.- Sydney and Beatrice Webb 2. Definition under the Trade Union Act given later. 3. A trade union is an organisation for the workers to promote, protect and improve through collective action the social, economic, political interest of its members. -- Edwin B. Flippo. 4. It has the following basic features- \(a) It is an association of workers, employers, etc. \(b) It is a relatively permanent association. \(c) It is created for the purpose of securing benefits for its members. \(d) The concept of trade unions is constantly changing. \(e) Its origin has been influenced by several ideologies. \(f) It represents the workers. \(g) It works towards negotiations on behalf of the workers. \(h) It voices such issues as affect the workers. \(i) It provides member services. 5. The functions of trade unions may be divided into 2 categories- militant/protection functions and fraternal functions. 6. Militant functions relate to such functions as help in achieving benefits for the workers by way of methods like strikes, etc. 7. Fraternal functions on the other hand provide protection to workers in times of lock-outs or unemployment, etc. 8. Some militant functions may be listed as follows- \(a) To achieve higher wages and better conditions of service. \(b) To prevent victimisation of workers. 9. Some of the fraternal functions are as follows- \(a) To take up welfare measures. \(b) To protect women. \(c) To generate self confidence amongst workers. 10. The importance of trade unions lies in the fact that it has helped accelerate the pace of development by way of recruitment and settlement of industrial disputes. It has also helped raise social standard by bringing about national integration, corporate social responsibility and industrial peace. 11. The following reasons may be given for joining a trade union, namely- \(a) Greater bargaining power. \(b) Minimizing discrimination. \(c) Sense of security \(d) Sense of participation \(e) Betterment of relationships \(f) Platform for self expression 3.1 [Labour movement as a counter measure to exploitation: History of Trade Union movement in India.] 1. In ancient India, organisations of workers primarily comprised of guilds/shrenis of persons belonging to the same profession. The advent of the caste system made this possible. 2. The trade union movement in India started in the proper sense in the first part of the 20^th^ Century. But, it had already begun sporadically in the later part of the 19^th^ Century. 3. In 1875, certain social reformers and philanthropists under the leadership of Sorabji Shapurji started a movement in Bombay protesting against the horrible conditions of workers in factories especially women and children. 4. Strikes have been recorded in 1867 by the Butchers of Bombay (protesting against the shifting of slaughter houses to Bandra) and in 1877 in the Empress Mills of Madras (change of wage rates). 5. NM Lokhande is regarded as the founder of the organised trade union movement in India. He formed the Bombay Mill Hands Association in 1875 of which he was the President. 6. He also founded the first working class newspaper- *Dinabandhu*, for bringing forth legitimate grievances of workers. 7. However, the movement remained dormant due to famines, plague, etc. 8. Several British merchants and press people took interest in the plight of the Indian workmen, not out of sympathy but because of the realization that greater working hours with lesser pay for Indian workmen shall mean lowering of prices of goods, thereby leading to cuts in the salaries of British workmen. 9. Thus, an act was passed in 1911 which defined the number of working hours as 12 for adults and 6 for children. 10. The movement then started being influenced by the political developments in the country such as the Swadeshi movement and the sentencing to 6 years imprisonment of Lokmanya Tilak which led to a 6 day mass political strike in Bombay. 11. In 1910, a *Kamgar Hitvardhak Sabha* was formed by the philanthropists of Bombay for the welfare of workers. 12. Some factors which helped the growth of the movement may be discussed as follows- \(a) [First World War]- During the First World War, prices shot up but there was no corresponding increase in wages though enormous profits were amassed by the employers. This gave impetus to the trade union movement. \(b) [Influence of political leaders]- Leaders like Tilak, Annie Besant and Mahatma Gandhi worked for the cause of workmen. Gandhiji went on to establish the Ahmedabad Textile Labour Association. \(c) [International Labour Organisation-]India was a founder member of the body and thus had to adhere to its principles. The government would send delegates to the annual International Labour Conference after consultation with workers and employers to represent their interests. This also led to the formation of the All India Trade Union Congress. \(d) [The Russian Revolution]- The fall of the Czars in Russia and establishment of Soviet Republics gave further fillip to the movement. It was also influenced by the writings of Marx and other philosophers. 13. The following factors may be enumerated as having hampered the growth of the movement- \(a) [Ad-hoc associations-] The employers would previously follow the principles of demand and supply with respect to payment of wage rates. This led to the workers forming ad-hoc associations to voice their grievances. However, the requirement was of more permanent organisations. \(b) [Non- recognition of the right of association-] Several times workers and unions would go on strike but they would be imprisoned or penalized for the same by the government. Thus, the freedom of association was not recognised. However, with the coming in of the ILO, a convention on freedom of association was adopted in 1921 and a change was seen in the attitude of governments across the world. \(c) [No proper legislation-] Earlier there was no legislation recognizing the fundamental right of freedom of association of workers. Infact, trade union leaders were liable in civil action and damages for infringing contractual rights and liabilities and for interference in the employer's trade and business. They could also be made liable in criminal proceedings for any sort of concerted action. NM Joshi, who has been regarded as the father of the modern trade union movement in India, introduced the trade union bill in the legislature which later became the Trade Union Act, 1926. This Act gave immunity to trade union leaders for activities of the union with respect to civil or criminal proceedings. There has also been a pressing demand for recognition of trade unions in the 2^nd^ five year plan and the recommendations of the National Labour Commission which has stated that recognition must be made compulsory in an establishment of more than 100 workers or where there is a stipulated size of capital. \(d) [Absence of right to strike and lock-outs-] Previously, strikes were considered to be illegal but later on this view changed. It has been observed that an individual worker has the right to bestow his work as he desires and this includes the right to strike. However, there still exist restrictions on strikes such as restrictions on agricultural labourers, on seamen during a voyage or with respect to certain essential services in the country. In some countries, strikes having a political or sympathetic nature are also banned. The counterpart of a strike is the weapon of lock-out which is available with the employer incase the worker resort to any extreme measures. For the first time, strikes were recognised under the Industrial Disputes Act, 1929. The act also put several restrictions on strikes especially in public utility services. Inspite of the Act, the government generally ended up supporting employers due to issues of law and order. \(e) [Recognition-] The right to be given recognition by the employer is the legal corollary of the freedom of association. However, so far there is no law in force which can compel an employer to recognize a trade union. \(f) [Failure to achieve industrial democracy-] A trade union is an industrial organisation and requires the efforts of not just the workers and employers but also of the government and people. Sadly though, the movement has been confined only to the industrial sphere and has failed to bring about a system of industrial democracy involving everyone in society. \(g) [Introduction of politics-] Greater involvement of political leaders has led to the disintegration of the movement. The movement is now being run not to cater to the interests of the workers but towards the furtherance of political interests. Most of the members of these unions are infact 'outsiders' and not members of the establishment as such. [Stages of development of the movement in India-] [First stage: 1919-30] 1. The strike of the Buckingham and Carnatic Mills workers in Madras and the Cotton Mills in Bombay influenced the movement. 2. As a result of these strikes, the government amended the Factories Act to suit the requirements of the workers. 3. The All India Trade Union Congress (AITUC) was established in 1920. The government had to consult this organisation for nominating delegates to the ILO conferences as it was the most representative organisation with respect to labour in the country. 4. There was even a Provincial Trade Union Congress in the provinces. 5. The Government of India Act, 1919 provided for representatives of the labour class to be a part of the Central legislative assembly and the Provincial Legislative Councils. 6. The government consulted the AITUC with respect to matters in labour legislations. 7. Gradually, several industrial federations came up such as the All India Railwaymen's Federation, etc. 8. This period was marked by the passing of the Trade Unions Act, 1926. 9. By 1927, the movement was divided into 2 visible factions of the rightists or the Geneva-Amsterdam group and the leftists or the Muscovites. 10. This division led to several problems for the movement as it lead to confusion amongst workers everywhere as regards the policies of the movement. 11. Therefore in 1929, the movement split in its Nagpur session wherein the minority left the AITUC and formed the All India Trade Union Federation which had more realistic policies and aims. 12. The attitude of the government during this period was mainly non-interfering and they stepped in only for the purpose of maintaining law and order. 13. The Royal Commission on Labour, 1929 was appointed to look into conditions of labour in the industrial establishments of the country. The Commission submitted its report in 1931 wherein it was stated that the needs of labour couldn't be met just by the government. The role of trade unions and outsiders was thus recognised. 14. During this period, other than the Trade Unions Act, the Workmen's Compensation Act, 1923 and the Indian Trade Disputes Act, 1929 (for settling disputes by public opinion and setting up of courts of enquiry and boards of conciliation) were also enacted owing to the International Labour Conference. [Second Period: 1930-39] 1. This period saw a regression in the movement due to economic depression, shifting of interest to the Civil Disobedience movement, prosecution of trade union leaders in the Meerut conspiracy case and the failure of the Bombay Textile strike. 2. The employers took advantage of the situation and started large scale retrenchment of workers, introduced wage cuts and demoted workers to lower positions. 3. The AITUC which had already split had become weaker. It further split to form the Red Trade Union Congress which was later reunited with the parent body. 4. At a conference in 1931-32, the need was felt for a united body and thus the National Trade Union Federation (NTUF) was formed which consisted primarily of Railway Unions and all those affiliated to the AITUC. This organisation claimed greater membership than the AITUC. 5. However, a consensus was struck and it was proposed that both these bodies-the NTUF and the AITUC be united. It was decided that a board of ten members each of both the bodies shall be constituted with the author as the chairman. Also, for decisions with respect to strike and political resolutions, a 3/4^th^ majority would be required. Further, the body decided not to have any foreign affiliations. Thus, the unification took place in Nagpur in 1938. 6. The victimization of workers for genuine trade union activities however continued. There was a slight change in the government's attitude and legislations such as the Payment of Wages Act, Dock Labour Employment Act, Bombay Conciliation Act, Bombay Industrial Disputes Act, etc. were passed. 7. A number of provinces also appointed several labour enquiry committees to look into conditions of labour. 8. The government started taking active part afterwards. In the Madurai Mills case, it promulgated S.144 of the Cr. PC to compel the employers to terminate a lock-out when the latter refused to pay heed to the orders of the government not to impose a lock-out. Again in Madras, workers went on strike without proper notice and did not resort to peaceful means of settlement when asked by the government. Thus, the government issued orders under S.144 against the workers. [Third Period: 1939-46] 1. During this period emergency was declared due to the 2^nd^ World War and Governors took over the administration in Provinces. Further, the executive council of the Governor General at the Centre was expanded. 2. There was also a split in the AITUC as it took a negative approach towards the war in its Bombay resolution of 1939 wherein it was stated that participation in the war was not required as it would not benefit the working class of India in any way. 3. This resulted in a small faction of the organisation dissociating itself from the main body under the leadership of radical democratic leader MN Roy to help the government in its war efforts. 4. However, during the war, due to the fall out between Hitler and the Soviets and with the support of the Communist Party in UK, the AITUC decided to change its stance and lent support to the war effort. 5. Also, several nationalist elements of the AITUC followed the lead provided by the Indian National Congress (INC) and joined the freedom movement. Thus, many of them were arrested and this gave rise to domination by communist leaders of the AITUC. 6. Due to the war, employment opportunities increased. However, due to increase in purchasing power and simultaneous decrease in supply of essential goods led to inflation. Thus, the real wages of the workers went down. 7. Several conciliation boards were set up especially in Bombay and a Court of Enquiry was set up under the chairmanship of BN Rau in order to look into the grievances of railway workers. 8. A Directorate of Cost of Living Index Schemes was set up during this period. Also, J. GS Rajadhyakhsha was appointed to investigate and report on the demands made by Posts and Telegraphs employees. 9. This was the period when the Industrial Statistics Act was passed. The Rege Committee was also appointed to collect information relating to wages, employment, housing, etc. 10. The Office of Chief Labour Commissioner was created under the Labour Ministry and the Labour Bureau which acted as the storehouse of statistics was also created. 11. Due to the war, the government assumed emergency powers and promulgated Rule 81-A under the Defence of India Rules. As per this rule, there could be no strikes or lock outs and industrial disputes were to be referred for conciliation and adjudication at the discretion of the government. The body conducting the same would give an award which would be binding on the parties and there could be no strikes or lock outs during the period of the award. 12. The government also promulgated two ordinances during this period. The first was the National Service (Technical Personnel) Ordinance, 1940 which regulated the terms of conditions of service, appointment or dismissal and other matters relating to technical personnel through the National Service Labour Tribunals. 13. The second ordinance was called the Essential Service (Maintenance) Ordinance, 1941 which regulated the conditions of service and other matters with respect to undertakings which were declared as being essential by the central or provincial governments. The employees in such undertakings couldn't refuse to work and the employers couldn't dismiss or discharge them. 14. During this period, the employers developed a more favourable attitude towards workers in order to maintain a high rate of profit. They started some welfare programmes for workers and some of them even recognised a few trade unions. 15. The government also stepped up welfare activities. With the formation of a popular government, the Indian Labour Conference was convened for the first time in 1942. It consisted of 22 representatives of the government and 11 each of the employers and workers. There was also a standing committee which consisted of 10 government representatives and 5 each from employers and workers. The Conference was to be convened annually but the committee met on a more regular basis in order to help promote better industrial relations. 16. In defence establishments, welfare committees were set up and welfare officers were appointed. 17. The wage limit was also increased from Rs. 200 to Rs. 400 in order to get benefits under the Workmen's Compensation Act, Coal Mines Welfare Fund Ordinance, etc. [Fourth Period: 1946-56] 1. This period was marked by independence and subsequent partition. The inflation rates were again high and thus real wages went down. 2. The Indian National Trade Union Congress (INTUC) was formed in order to bring about democratic trade unions in comparison to the communist ideology of the AITUC. A need was felt to reduce political influence in trade union activities. 3. The unions affiliated to the INTUC were to submit regular returns to the body and were supposed to go in for arbitration if disputes couldn't be settled by negotiations. 4. The Hind Mazdoor Sabha (HMS) was another organisation which was formed during this period by socialist leaders. The organisation brought together the members of the Hind Mazdoor Panchayat, the Indian Federation of Labour (a powerful section of the AITUC) and other unaffiliated trade unions to form a body free from political influence. 5. There were 2 rival factions in the railways as well- the All India Railwaymen's Federation and the Indian National Railway Worker's Federation which were merged to form the National Federation of Indian Railwaymen which later disintegrated. 6. Some of the trade union leaders which attended the conference called by the socialists for the formation of the HMS didn't agree with its objectives and thus broke away to form the United Trade Union Committee (UTUC). This body asked for freedom from sectarian politics. However, it also wanted that employers recognise trade unions and arrangements be made for making agreements reached through negotiations binding on the employers. 7. These four organisations viz. the AITUC, INTUC, HMS and the UTUC are the main bodies with respect to trade union activities in the country. However, due to difference in ideology, they could never be merged. 8. Besides, organisations such as the Indian Federation of Independent Trade Unions and the Indian Federation of Working Journalists have also been formed. 2.2 [Right to trade union as part of human right to freedom of association: International norms and the Indian Constitution-] Take from history Also, ILO Convention no. 87 talks about freedom of association, protection of the right of workers to organise and right to elect their representatives in full freedom. However, India has not ratified it. But, Art. 19(1)(c) of the Indian constitution provides for a right to association and the Trade Unions Act impliedly provides for the same by conferring rights, duties and immunities on members of Trade Unions. However, there must be a ratification of the convention. 2.3 [Problems: multiplicity of unions, over-politicisation- Intrusion and inter-union rivalry, outside leadership, closed shop and union shop, recognition of unions] 1. Some of the reasons why the trade union movement in India couldn't be as successful are- \(a) Unrealistic policies of the government. \(b) Moral idealism \(c) The setting of goals by the government which were too ambitious. \(d) Encouragement by the government to small and weak trade unions. \(e) Deep and selfish interests of political parties. 2. Not only are there lesser number of unions throughout the country but these unions have also fared very badly. 3. Several trade unions are also internally divided based on their loyalties to political groups, etc. 4. Also, there are many which are not affiliated to an all-India trade union organisation. Some of the problems faced by the unions have been discussed under the following headings- [Multiplicity of Unions-] 1. This problem is mainly due to the interference of political leaders into the movement who try to break up unions on the lines of caste, creed, region, religion, etc. and thus weaken the entire movement. 2. This leads to the formation of rival unions within the industry and thus weakens the entire system of collective bargaining and negotiations as well. It thus reduces the chances of workers actually getting any benefits. 3. An example may be given of the Dhanbad trade union case wherein nearly 5000 tribal workers were removed by the trade union leaders acting in connivance with the management showing that such workers had voluntarily abandoned their jobs. 4. Multiple unions weaken the entire movement as it leads to lesser representation, limited functions (primarily for the benefit of a particular caste/community) and there is virtually no realization of the importance of mutual help. [Inter-union rivalry-] 1. There may be different rival unions in a single industry. An example may be given of the railways which have two parallel organisations- Indian Railwaymen's Federation and Indian National Federation of Railwaymen. 2. Such rivalry creeps up primarily due to involvement of politics. Also, there is no law requiring recognition of a single trade union as the sole bargaining agent in the industry. 3. Due to such inter-union rivalry, one union may oppose any decision taken by the other and thus the entire process of negotiation might get stalled. 4. Further, a dissident leader might declare himself the leader of a union of a group and then run a parallel union. 5. This gives an advantage to the employers who now have the chance of playing one union against the other. (policy of 'divide and rule') [Suggestions to combat problems of multiplicity of unions and inter-union rivalry-] 1. Every employee must be allowed to join a union of his choice. 2. There shall be no violence, intimidation, etc. towards any of the members. 3. There shall be no casteism, communalism, regionalism, etc. 4. There shall be acceptance of the democratic working of a trade union. 5. The members of the executive must be appointed by way of regular elections. 6. There shall be no dual membership of unions. 7. The ignorance or backwardness of the unions shall not be exploited. 8. The Central unions must combat the formation or continuance of company unions. [Leadership Issue-] 1. Generally the leaders of the union are such persons who have absolutely no connection with the rank and file of workers in the industry. 2. Such persons are appointed as leaders for the following reasons- \(a) The workers are illiterate as compared to the management and thus cannot bargain effectively. \(b) The management generally belongs to the upper class while the workers belong to the lower strata of society and thus the social difference alongwith illiteracy creates a psychological mind block for them. \(c) The unions generally do not have the required funds and resources to carry on their activities and thus require the help of these outsiders to help them with the same. \(d) Further, due to lack of funds, it becomes difficult to pay for the allowances of office-bearers of the union and thus outsiders are taken in who provide their services for free. 3. An example of problems created by such outside leadership may be seen in the case of the Bombay Textile Workers who were led in a strike by Dr. Datta Samant. After 2 years, the strike fizzled and the workers were forced to leave Bombay in great duress. However, the instigator of the movement was nowhere to be seen. 4. One of the major problems associated with such leadership is that it leads to politicisation of the union and the leaders generally tend to work for their own interests. They work only for those unions which further their interests. 5. Besides, these leaders generally work for more than one union and because they have no connection with the rank or file of the movement, they cannot effectively understand the problems faced by the workers. 6. Such political involvement also leads to multiplicity of unions and inter-union rivalry. 7. Some suggestions for elimination of this problem as given by the National Commission on Labour may be stated as follows- \(a) Ex-employees to be regarded as outsiders. \(b) Restrictions on the number of outsiders as members. \(c) Provision that an office bearer cannot be a member of any political party. \(d) Penalties for victimisation of workers which prevents internal leadership. \(e) Provision for education of workers. \(f) Provision for training of workers with respect to organisation. 8. The Government of India while drawing up the Scheme of Workers' Participation in 1975 provided that no non-worker could become a member of the shop council or joint council. 9. Further, S.22 of the Trade Union Act requires that atleast half of the office bearers of a registered trade union shall be engaged or employed in the industry concerned. [Unions and Politics-] 1. Trade Unions have been under the influence of political parties from the very beginning. In the pre-independence era, they were influenced by the activities of the Indian National Congress. 2. The involvement of politics leads to creation of divisions and factions in the movement which weakens the movement. 3. It also leads to frequent change in ideology and policy due to the changing political scenario. 4. The influence of politics has primarily been there due to lack of education amongst workers, presence of caste differences, etc. [Problem of recognition of the Unions-] 1. No employer is obliged to recognise any trade union. 2. Recognition for the first time was discussed under the Bombay Industrial Disputes Act. 3. The Code of Discipline talks of recognition in the following manner- \(a) Where there is more than one union claiming recognition, such unions must be functioning for atleast a year after recognition. \(b) The union should represent atleast 15% of the industry and such membership must be such that a member has paid the subscription fee for atleast 3 months in the 6 months preceding recognition. \(c) A union may claim recognition as representing the local area if it has atleast 25% membership of workers. \(d) Once the union is recognised, there should be no change for atleast another two years. \(e) Where there are several unions, the one with the largest membership will be allowed recognition. \(f) A representative union shall be allowed to represent all its workers. However, a union with 50% or more membership in the establishment should be allowed to deal with matters of purely local interest. \(g) Only those who observe the code of discipline should be allowed recognition. \(h) The question of affiliation or non-affiliation to any all-India trade union should be dealt with separately. [Indian Trade Union Act, 1926] [Background and Object of the Act-] 1. In 1920, the Madras HC passed an injunction in the Madras Textile Labour Union case, restraining Trade Union officials from inducing certain workers to refuse to come to work, thereby breaking their contract of work. 2. These officials were imprisoned even for bonafide trade union purposes. This decision thus created a huge furor across the nation. 3. Thus, the Trade Union Act was passed in 1926 which was later amended in 1929 to provide for registration of Trade Unions. 4. The object of the Act is to provide for registration of Trade Unions of workers trying to fight against their employers legitimately for the attainment of their objectives such as better wages, improvement in conditions of work, etc. 5. The Act for the first time granted Trade Union leaders several immunities while working for the union's activities. 6. Certain important definitions under the Act/subsequent cases may be given as follows- \(a) [Trade Dispute-] Any dispute between an employer and employer or an employer and workman or between workman and workman, with respect to employment or non-employment or terms of employment or conditions of labour of any person. \(b) [Workmen-] All the persons employed in a trade or industry and it is immaterial whether the persons employed in the trade or industry are or are not in the employment of the employer with whom the trade dispute arises. \(c) [Industry-] In the case of [State of Bombay v. Hospital Mazdoor Sabha,] it was held that an industry is any activity systematically or habitually undertaken for the production or distribution of goods or rendering of services to the community or a part thereof with the help of employees. It involves the cooperation between the employer and employee and its object is the satisfaction of human wants. \(d) [Trade Union-] It is a combination, whether temporary or permanent formed primarily for the purpose of regulating the relations between employer and workmen, workmen and workmen or employer and employer or for imposing restrictive conditions on the conduct of any trade or business and includes a federation of any two or more trade unions. 7. This Act doesn't affect- \(a) Any agreement between partners as to their own business. \(b) Any agreement between the employer and employees as to such employment. \(c) Any agreement in consideration of the sale of goodwill of the business or of instruction in any profession, trade or handicraft. [Registration of Trade Unions-] 1. S.4 provides for the mode of registration. It states that any seven or more members of the Trade Union by subscribing to the rules of the Union or by complying with the provisions of the Act with respect to registration apply for registration. 2. However, there shall be no registration if atleast 100 (doubt) 3. Also, the application will not be declared invalid on the ground that at any time after such application but before registration, some applicants, not exceeding half the number cease to be members of such union or inform the registrar about dissociating themselves from the application. 4. S.5 further provides that every application for registration to the registrar shall contain the rules of the union and the following particulars- \(a) Names, occupations, addresses of the members. \(b) Incase of a trade union of workmen, names, occupation and addresses of their place of work. \(c) Name of the trade union and address of its head office. \(d) Titles, names, addresses and occupations of its office bearers. \(e) Incase, the union has been in existence for a period of atleast a year prior to such application, a statement of its assets and liabilities during such period must also be submitted. 5. S.6 provides for the contents of the rules of the trade union as follows- \(a) Name of the Union. \(b) Its objects. \(c) The purposes for which its general funds may be used. \(d) Maintenance of a list of members which may be inspected by the office bearers or members. \(e) Manner in which ordinary members who are part of the establishment/industry may be admitted and also how certain honorary or temporary members may be admitted as office bearers. \(f) Method of amendment or variation of rules. \(g) The payment of minimum subscription of Re. 1 in rural areas, Rs. 3 in unorganized sector and Rs.12 elsewhere. \(h) Conditions on which a member shall be entitled to benefits and under which there may be any fine or forfeiture. \(i) The manner in which members of the executive and office-bearers may be elected. \(j) Duration of term of office of such persons (not exceeding 3 years). \(k) Safe custody of funds, annual audit and inspection of account books by the members or office bearers. \(l) Manner in which union may be dissolved. 6. As per S.7, the Registrar may require the Union to furnish the details mentioned in Ss. 5 and 6 and if the same is not done, he may even refuse registration. 7. Further, if the Registrar feels that the name of the Union is the same as that of another registered union or is so similar to such other name that it is likely to deceive people or members of either union, he may ask the Union concerned to alter the name. He may even refuse registration till the time there is an alteration. 8. The Registrar shall then after being satisfied that all requirements have been complied with, enter the name of the Union in a register in the prescribed form and issue a certificate of registration in the prescribed form to the union. Such certificate is conclusive evidence of the registration. (Ss. 8 and 9) 9. As per S.9A, every registered union shall have at all times atleast 10% or 100 of the workmen as members, whichever is lesser. The minimum requirement is that of 7 members engaged or employed in the industry or establishment. 10. As per S.10, there shall be cancellation of registration on the following grounds- \(a) If the Union makes an application for the same. \(b) If the Registrar is convinced that the certificate of registration has been obtained by fraud or mistake. \(c) If the Union has ceased to exist. \(d) If the Union willfully and even after notice from the Registrar contravenes a provision of the Act. \(e) If it continues with a rule which contravenes the Act. \(f) If it rescinds a rule which is required for compliance with S.6. \(g) It the Registrar is satisfied that the Union no longer has the required number of workmen. 11. However, not less than 2 month's notice must be given by the registrar unless in the first case when the application is made by the Union itself. 12. S.11 provides for an appeal against the order of the Registrar refusing registration or withdrawing/ canceling the registration in the following manner- \(a) Where the head office of the union is situated within the limits of a Presidency town, appeal shall be made to the HC. \(b) Where such head office is situated within the limits of a labour court or industrial tribunal, appeal shall be made to such court or tribunal. \(c) Where such head office is situated in any other area, appeal shall be made to a Court not inferior to a Court of an additional or assistant judge of a principal Civil Court of original jurisdiction as appointed by the Government. 13. It is the duty of the Registrar to carry out the orders of the appellate authority. 14. The procedure to be followed shall be one as under the CPC. 15. If the appeal is dismissed by a court under (c), the aggrieved person may make an appeal to the HC. 16. All communications shall be made to the registered office of the Trade Union. Incase there is any subsequent change with respect to the address of such office, the same must be notified to the Registrar within 14 days of such change and thereafter, it shall be recorded in the register. 17. Under S.13, it has been stated that the Union shall be a body corporate with perpetual succession and a common seal. It shall be capable of acquiring and holding property and entering into contract in its registered name and can sue and be sued in its name. 18. However, the Cooperative Societies Act, the Registration of Societies Act and the Companies Act is not applicable to such unions. [Miscellaneous provision-] 1. Another important provision is S.14A which allows any person to bring a dispute before the industrial court with respect to the fact as to who is a lawful officer or member of the executive of the Union. 2. Such person must be a member of the union atleast for a period of 6 months prior to the dispute. 3. He may bring the dispute before the industrial court with the consent of the Registrar. 4. On reference, the court shall give both the parties an opportunity of being heard and decide the dispute. 5. In order to give a decision, the court may at its discretion call for fresh elections under its supervision. Its decision is final and cannot be questioned in any court of law. 6. Pending the disposal of the case, the court may declare as to who shall be the lawful officers of the union or members of the executive till the time a decision is given. 7. No civil court is entitled to maintain any civil suit or other proceedings with respect to such matter. [Rights and Liabilities of Registered Trade Unions-] 1. S.15 provides that the general fund of the Union may be spent on the following objects- \(a) For payment of salaries, allowances and expenses to office holders. \(b) Expenses for administration including for audit of the general fund. \(c) For any legal proceedings whereby the rights of the union are to be protected or secured or wherein any matter involving a member and his employer or a member and his employee is involved. \(d) For the conduct of any Trade dispute on behalf of the union or any member. \(e) To provide for any loss suffered by a member in such trade dispute. \(f) To provide allowances to a member or his dependants as the case may be incase of death, old age, sickness, accident or unemployment of such member. \(g) To provide for insurance of such member with regard to the abovementioned cases. \(h) For the provision of any educational, social or religious benefits to the members or their dependants and this includes funeral or other religious expenses. \(i) For the upkeep of any periodical published which discusses questions affecting employers and workmen. \(j) For using the fund for the purpose of any other contributions for the benefit of the members, provided such amount doesn't exceed 1/4^th^ of the gross income in a particular year and the balance of credit of those funds at the commencement of the year. \(k) For any other purpose as may be notified by the Government in the Official Gazette. 2. Further, under S.16, there shall be a separate fund for political purposes, contributions for which shall be made voluntarily by the members. 3. Such fund shall be maintained for the following reasons- \(a) For any expenses incurred for purposes of election of a candidate to a legislative body or a local authority. \(b) For the holding of any meeting or distribution of literature in support of such candidate. \(c) Expenses incurred with respect to any member holding office in a legislative body or local authority. \(d) Expenses incurred with respect to registration of electors or selection of a candidate. \(e) The holding of political meetings of any kind or for the distribution of political documents or literature of any kind. 4. Nevertheless, no member may be compelled to contribute to the fund and such member shall not be put at a disadvantage with respect to benefits receivable under the Union as compared to others who have contributed to the fund. Also, admission to the Union cannot be withheld on the ground of non-payment in such case. 5. Under S.17, no office bearer or member of a registered trade union shall be convicted under S.120B of the IPC (Criminal Conspiracy) with respect to any agreement for any act done to further the objects specified under S.15, unless the agreement has been entered into for commission of an offence. 6. S.18 gives immunity to the Union and its members in certain civil suits. 7. It provides that no Union or office bearer or member shall be liable for any act done in contemplation or furtherance of a trade dispute where a member of the union is party to such dispute, on the ground that such act has induced another person to break his contract of employment or on the ground that it has interfered with the trade, business or employment of any person or that it interferes with the right of any person to dispose off his capital or labour in a way he wishes. 8. Also, no Trade Union shall be liable before a Civil Court with respect to an tortious act committed by its agent if it is shown that such agent committed the act without the knowledge of or contrary to the express instructions given by the union. 9. As per S.19, an agreement between the members of the Trade Union cannot be declared as being void or voidable on the ground that it is in restraint of trade. 10. Further, no proceeding may be instituted in a civil court with respect to breach of an agreement concerning conditions based on which a member of a trade union shall or shall not sell their goods, transact business, work, employ or be employed. 11. Also, any office bearer or member of the union may inspect the account books or list of members of such union at such times as may be prescribed by the rules of the Union. 12. As per S.21, any person above the age of 15 years may become a member of the union and shall have the same rights and obligations as that of other members and execute all instruments of the Union subject to the rules of the union. 13. Under S.21A, a person may be disqualified from being an office bearer on the following grounds- \(a) If he has not attained the age of 18 years. \(b) If he has been convicted for any offence which involves moral turpitude by a Court in India unless 5 years have lapsed since such conviction. \(c) When such person is holding office as an office bearer prior to the commencement of the Amendment Act of 1964 and he has been convicted for such offence as mentioned in (b), he shall cease to hold such office as soon as the act commences unless 5 years have lapsed since such conviction. 14. S.22 provides that atleast half of the office bearers of a registered trade union in an establishment or industry in the unorganized sector shall be those actually engaged or employed in such industry or establishment. 15. The government may however pass an order stating that this provision shall not be applicable to a particular trade union or class of trade unions. 16. The unorganized sector as stated here shall mean any sector as specified by the government by notification in the official gazette. 17. With respect to any other sector, the number of office bearers who shall actually be employed or engaged in the industry or establishment shall not exceed 1/3^rd^ of the total number of office bearers or 5, whichever is lesser. 18. Also, any member who has retired or has been retrenched shall not be regarded as an outsider for the purpose of this provision. 19. Further, no person who is a member of the Council of ministers or holds an office of profit under the Union or the State can be an office bearer. 20. The name of the Union may be changed with the consent of 2/3^rd^ of its members and subject to the provisions of S.25. 21. Also, two or more unions may be amalgamated to form a single union without the division or dissolution or both of their funds provided half of the members of every such union who are eligible to vote, cast their votes and atleast 60% of such persons vote in favour of the amalgamation. 22. S.25 provides for notice of the change of name and amalgamation. Incase of a change of name, a notice needs to be given to the Registrar by the Secretary of the Union and seven other members. Incase of amalgamation, notice must be given by the Secretary and seven members of each of such trade unions. 23. Incase of amalgamation, if the head office of the newly formed union is in another state, notice shall be sent to the registrar of such other state. 24. If the registrar is satisfied that the changed name is the same as the name of any other union or is so similar so as to deceive, he shall refuse to change the name. 25. The fact of such change of name or amalgamation shall be entered into the register by the Registrar and the same shall come into effect from the date of such registration. 26. As under S.26, the change of name shall not prejudice any rights of the union or any proceeding by or against the union. Such proceeding may be carried on with the new name. 27. Incase of amalgamation, the rights of such unions shall not be prejudiced. Also, the right of any creditor against such unions shall not be prejudiced. 28. S.27 provides for the dissolution of the Trade Union in accordance with the rules of the Union. 29. Notice of the same must be sent to the Registrar by the Secretary and seven members within 14 days of such dissolution and the Registrar shall enter the same into the register if he is satisfied that dissolution has taken place as per the rules of the Union. 30. If the rules of the Union do not provide for distribution of funds on dissolution, the Registrar shall divide the same amongst its members in a manner as may be prescribed. 31. Under S.28, annual returns shall be sent to the Registrar by the Trade Union with respect to audited statements of all receipts and accounts and statements of assets and liabilities. 32. Also, changes in the office bearers made by the Union during the year shall also be sent together with a corrected copy of the rules. 33. Also, if there is any alteration made in the rules of the union, such alteration must be notified within 15 days to the Registrar. 34. The Registrar or any officer authorized by him shall have the right to inspect the books of account, registers and other documents of the union at its registered office or at any other place which such Registrar/officer may specify, provided the place is within 10 miles of the union's registered office. [Provisions with respect to Approved Unions-] 1. This part of the Act provides for maintenance of a list of approved unions. 2. Besides there are some unions which are deemed to be approved unions such as those under the Bombay Industrial Relations Act, the Madhya Bharat Industrial Relations Act. 3. As per S.28C, any representative union in a particular industry or if there is no representative union, then any registered union in an industry provided the Central Government is not the appropriate government for such industry may apply for being included in the list of approved unions. 4. The Registrar on receipt of such application shall conduct an enquiry into the fact as to whether such union satisfies the criteria of being an approved union and shall accordingly pass the order. However, if the registrar feels and is convinced that the union is being added to the list not for the benefit of the employees but for the employer's benefit, he shall not allow the same. 5. If more than one union in the same industry applies for the same, the one with the largest membership shall be accepted. 6. S. 28D provides for the following conditions for including the union in the list of approved unions- \(a) The membership of the union shall be atleast 50% of the workers of the industry within the 3 months preceding the date of application. \(b) Its subscription fee must be of atleast 4 annas a month or any other fee as may be specified by the state government. Also, its accounts must be audited atleast once every year by a person approved or appointed by the State Government. \(c) Its executive members must meet atleast one in every three months and all resolutions passed must be put down in a minute book. \(d) The union shall not resort to strike if arbitration or conciliation is available. Further, the union shall not resort to a strike unless a ballot is organised for voting in favour or against such strike. 7. The state government may by notification direct that any union placed under the ambit of the minimum wages act shall be considered for recognition as an approved union even if its membership fee is less than 4 annas a month. 8. Further, if there is a union which is more representative than another union in the same industry whose name has been included in the approved list, the Registrar shall after conducting an enquiry the former's name into the list in place of the latter. 9. Incase of an altered local area, there may be an approved union for a period of 6 months or for such period till the application for the same is disposed by the Registrar. (S.28E) 10. S.28F provides that the Registrar may after conducting an enquiry remove a union from the approved list on the following conditions- \(a) If registration and certificate of the union has been cancelled under S.10. \(b) If entry into the list has been done due to mistake, misrepresentation or fraud. \(c) If after entry into the list, the union doesn't comply with the requirements of S.28D. 11. If any union is aggrieved because of refusal of entry into the list or removal from such list, it may appeal within 30 days of communication of the order of the Registrar to the industrial court whose decision shall be final. Such receipt of communication shall not include the time required to obtain a copy of the order/ 12. S.28H provides for rights of such officers and members of the approved union as may be authorized under the rules of the state government as follows- \(a) Such officer shall have the right to collect sums payable by members of the union on the premises where wages are paid to them. \(b) Shall have the right to put up or cause to be put any board in a place where its members are employed and affix or cause to be affixed any notices thereon. \(c) Shall for the purposes of settlement of any industrial dispute, hold discussions with the members of the union, address the employers about the grievances of the workers and inspect any place where any member of the union is employed. [Other provisions of the Act-] **UNIT IV- CONCEPT AND SCOPE OF INDUSTRIAL RELATION** 4.1 [Development of employer-employee relations] 1. As per the [Britannica Encyclopedia,] industrial relations means the relations of the state with the employers, workers and their organisations. 2. As per the [ILO,] industrial relations means the relationship of the state and employers and worker's organisation or the relations between the occupational organisation themselves. 3. As per [HA Clegg,] industrial relations deals with the study of workers and their trade unions, the management, employer's associations and the state institutions concerned with regulation of employment. 4. Thus, industrial relations may be said to have the following main features- \(a) It cannot exist in vacuum and requires that there be two parties-the employer and employee. \(b) It is based on the fact that the two groups shall work with cooperation. \(c) It leads to the formulation of rules so as to allow for peaceful settlement of industrial disputes and maintain industrial peace. \(d) It involves the state as well which regulates such relations and provides for laws, courts to settle disputes, etc. 5. Thus, industrial relations may be defined as the relations between the employers and employees with respect to the management of affairs in the industry so as to work for the betterment of both groups as well as the national economy. 6. The objectives of industrial relations may be given as follows- \(a) To safeguard the interests of employers and employees alike. \(b) To maintain industrial peace and harmonious relations. \(c) To increase productivity. \(d) To bring about industrial democracy wherein the workers get a chance to participate in managerial decisions as well. \(e) To bring down instances of strikes, lock-outs, gheraos, etc. and ensure fair wages and conditions of employment to the workers. \(f) To bring about government control over industries especially those which are running at a loss for the purpose of national interest. 7. One of the major premises on which industrial relations is based is that labour is not a commodity and must get its due respect as a human being. Thus, it looks into the inherent human rights of labourers. 8. It also takes note of the fact that employees being the most important asset of an industry, their interests must be protected. 9. The main aspects of industrial relations may be explained as follows- \(a) Development of healthy labour-management relations which presupposes the following- i. Existence of strong trade unions and employer organisation. ii. The spirit of collective bargaining and settlement of disputes by way of arbitration or conciliation. iii. Working towards the welfare of workers and maintenance of industrial peace with the help of the state. \(b) Maintenance of industrial peace which may be achieved through the following- i. Establishment of adequate machinery for the settlement of disputes. ii. Government should have the power to refer disputes for adjudication when the situation goes out of hand. iii. The government must enjoy the power to maintain status quo. iv. Provision for bipartite and tripartite forms of settlement of disputes. \(c) Development of industrial democracy with the help of the following techniques- i. Establishment of shop councils and joint management councils at the floor and plant levels. ii. Recognition of human rights of workers. iii. Increasing the productivity of workers. iv. Providing for a good work environment. 10. In India, instances of good industrial relations may be seen in places where workers are part of the Works Committee, Joint Management Councils and even have representatives on the Board of Directors as has been seen in public sector banks and public sector undertakings. 11. The management has evolved across the world from being an exploitative and authoritative system to a more benevolent authoritative system which provides for welfare measures for its workers. Gradually, it has evolved into a consultative management system which takes decisions in consultation with workers. And thereafter, the participative style is also seen wherein workers actually participate in managerial decisions. 12. The role of the government has also changed from that of a laissez faire state in the 19^th^ Century to a welfare state. 13. Earlier, the government did not interfere in the working of an industry and the conditions of workers. Thus, the living conditions of workers deteriorated. Then due to agitations by philanthropists like Robert Owen, Ruskin and others in the UK, the Government decided to take a more active role. 14. Even in India, the same thing happened after the acceptance of the principles of a welfare state under the Indian Constitution. India set up tripartite bodies such as the Indian Labour Conference, the Standing Labour Committee and various other industrial committees in pursuance of several ILO conventions. 15. Then, the state became one of the largest employers with the nationalisation of various industries. Thereafter, it assumed the role of a regulatory authority. 16. However, recently due to the new economic policy of liberalisation in the country, it is becoming difficult for the state to strike a balance between promotion of industrial development and welfare of workers. 17. The various factors affecting industrial relations may be discussed as follows- \(a) Institutional factors- state policy, labour laws, labour unions, etc. \(b) Social factors- creed, social values, norms, prevalence of caste system \(c) Economic factors-type of ownership, whether government or MNC, source of labour force, factors influencing the labour market, etc. \(d) Political factors-political institutions, attitude of government, etc. \(e) Enterprise related factors-organisational health and climate, extent of competition, etc. \(f) Global factors- global conflicts, ILO conventions, etc. \(g) Technological factors- type of technology used, R&D activities, etc. \(h) Psychological factors-owner's attitude, worker's attitude towards work, motivation, etc. 18. It has been noted that industrial relations in Japan are very harmonious particularly due to the informal human relations and lesser number of formal laws and regulations with respect to the same. 19. The strikes in Japan only last for about half a day to a maximum of three days. This has been attributed mainly to the attitude of the Japanese people who dislike waste, believe in high standards of quality and have high standards with respect to work. 20. They also believe in benefit to the entire group rather than to one individual. Further, there is loyalty to the enterprise due to employment for life. 21. Japan is a contrast to countries like the USA where hiring and firing is very common. The workers remain in the same organisation for their entire term of employment and even surplus workers are deployed to do some other work. 22. There is also a cooperative trade union environment wherein the employers and workers work together as partners to achieve the desired goals. 23. Another reason for success of industrial relations in Japan is due to the existence of individual unions on a company-wide basis. These unions constitute nearly 95% of the trade unions in Japan. 24. Also, most labour disputes are handed over to a Labour relations commission which is a tripartite body consisting of equal number of representatives of the government, the employers and the employees. This system has been created so as to avoid the time taking and cumbersome court process. 25. Besides, the management consults the workers for every decision affecting not just the workers or their unions but the industry as a whole. Further, there are also committees set up for such purpose. 26. Further, the members of the top management board also have trade union experience. 27. It may be stated that the conditions for establishing good industrial relations are as follows- \(a) Acceptance of the fact that employers must act as a team with workers. \(b) Workers must strive to deliver the goods. \(c) Fair redressal of grievances of workers. \(d) Payment of fair wages to workers. \(e) Workers shouldn't be unnecessarily influenced by politics. \(f) Adoption of a policy to provide workers an adequate share of the gains of industry. \(g) Provision for education of workers. \(h) Provision for training of workers. \(i) Sufficient communication to workers about decisions which affect their interests. \(j) Establishment of an environment of participation by way of joint councils, etc. 28. At Sandoz India Ltd., for the development of good industrial relations, the following measures have been adopted- \(a) The workers and unions have agreed to cooperate to bring about industrial peace. \(b) They have agreed to cooperate to increase productivity. \(c) Both the employers and employees have agreed to resort to constitutional means for settlement of disputes. \(d) Further, if any statute is enacted for the benefit of workers, then the workers shall either be entitled to the entire benefit under the statute or the benefit provided under this settlement whichever is more favourable to the workers. 4.2 [Changing patterns of development of Industrial relation in India] 1. In India, there was first the agrarian stage wherein property came to be transferred to landlords and the system of common ownership as prevalent in the tribal period was discarded. 2. In this stage, there were some landlords while others were landless peasants or agricultural workers who were generally kept as slaves and were paid no wages. They were given a small place to live, coarse food and worn out clothes. 3. There were also some people who were enslaved for non-payment of debts. 4. The government didn't have any power with respect to the same and generally sided with the employers. 5. This was succeeded by the handicrafts stage which developed due to the coming up of new towns and cities, increase in trade and commerce and decline in the power of the feudal lords. 6. The workers would generally work from home with the help of their family and owned their means of production. 7. There was division in the status of workers into master craftsmen, journeymen and apprentices. The master craftsmen were workers who owned means of production and thus had a higher status. The journeymen enjoyed a high status as well due to their skill and relative mobility. The apprentices enjoyed a relatively low status as they merely helped the master craftsmen in lieu of lodging and boarding facilities so as to gain experience in the work/trade. They were not paid but had a status higher than the slaves. 8. There was no system of middlemen during this period. 9. Next came the Cottage stage or the Putting-out stage. 10. During this period there were technological advances and expansion of the markets and trade. 11. The master craftsmen or traveling traders would supply other craftsmen with raw material and finances. These craftsmen would then work from their homes in order to make the finished goods. Such persons were paid wages based on every piece they produced. 12. Then there was the Factory stage which is better known as the Industrial Capitalism stage. 13. During this phase, the capitalists started installing machines and working through such machines rather than other craftsmen. 14. Thus, this led to the decline in the cottage industry and due to replacement of labour by machinery, it further led to large scale unemployment. 15. This was the time of the Industrial revolution wherein there was large scale industrialization with the help of machines. The employer only had the responsibility of payment of wages to the workers which was determined by the demand and supply of labour. No welfare measures were undertaken for the labour class. Thus, the human element was completely discarded. 16. In India, there existed several occupations in the ancient era though agriculture, trade and manual services dominated the scene. 17. Several guilds or shrenis were formed by workers of various classes. Even Kautilya's Arthashastra gives a detailed account of the rules observed in such guilds. 18. The caste system also had a role to play in the development of various occupations as people were generally divided into castes based on their occupation. However, in course of time, these professions became hereditary. 19. The institution of slavery was also developed by the Aryans primarily for the reason that people could repay debts owed to another by becoming their slaves and then could become free after repayment of the loan with interest. 20. The institution of slavery was not restricted to a particular caste but it was always observed based on certain rules of caste. For example, a Brahmin could enslave a Kshatriya, Vaishya or a Shudra but a Shudra couldn't own the other three castes. 21. During the medieval period, due to invasion by the Muslims, several craftsmen and traders fled from their homes so as to save themselves. This led to the decline of such occupations as well as their various guilds. 22. There was a recovery only during the time of the Mughals especially under Akbar who built several factories at Lahore, Agra, Fatehpur and Ahmedabad. 23. Also, during this period, craftsmen and artisans were mainly patronized by royalty who were the prime consumers of their products. They were supervised by the government officials. 24. However, the cottage industries were steadily declining and all the craftsmen who worked from home were living mostly in starvation. 25. The guilds or unions which were formed in ancient India were mostly run on democratic principles, though the King could intervene if there was a dispute between the members and the President. 26. As per Kautilya, the union should be run by a board of three directors, the members should pay a fixed fee to the President and all the profits of the organisation must be equally distributed amongst the members. 27. During the epic period, labourers working in an industry had their own unions which were affiliated to bigger unions of different industries called Naigams or industrial corporations. 28. Even Buddhist literature mentions about Shrenis which included around thousand members and had a Pramukha or a Jyeshtha as its head. These guilds also had considerable political power. 29. However, due to the autocratic rule of the Muslims, the conditions of workers became deplorable and there were no unions to protect their interests. 30. The workers were left to the mercy of the employer who could dismiss the worker whenever he wished and could even decide not to pay him wages. There was no appeal against the decision of such employer either. 31. With respect to industrial relations, there used to be a Madhyamasi or a mediator during the Vedic times. The people in the villages would solve their disputes with the help of the village officials who had both executive and judicial power. 32. The unions were not only the assemblies of the employees but they also helped maintain cordial relations amongst employers and workmen. 33. Kautilya's Arthshastra and Ashoka's edicts mention of instances which show that workers were paid high wages and were even given sick leave and old age pension. 34. If there was a dispute, the rulers had to settle them. In villages, generally the Panchayat used to perform this task. However, if still the dispute was not settled, it would be decided by a board appointed by the King. 35. If the employer had to dismiss a worker before the completion of work, he had to pay him wages for the entire day. 36. Incase the employers didn't pay wages, they would be fined 6 panas or 1/10^th^ part of the wages. If there was non-payment for a longer period, he would be fined 12 panas or 1/5^th^ of the wages. 37. The employers couldn't withhold wage payment for more than 7 days and if the work was not properly done within 7 days, the employer could ask another person to do it. 38. As per Kautilya, if there was to be a contract of employment between the employer and the worker, the employer couldn't employ anyone else for the same and the worker couldn't take up some other work. If the contract was broken, the offendor was to be fined 12 panas. 39. In the medieval times, there was little difference between a worker, an artisan and a slave. 40. A month was taken as being 40 days and very low wages were paid. Also, if the work was considered to be improperly done, the wages were proportionately reduced. 41. Disputes were solved by the Emperors but Akbar entrusted the work to officials called Kadis. However, the officials were generally very harsh with the workers. Remaining part- under the British, pre-independence and independence, take from the history of trade union movement. Unit V- Collective Bargaining 5.1 [The Concept] 5.2 [The International norms: conditions, precedents, merits and demerits] 1. Collective bargaining has been adopted in several developed nations such as the UK and the USA. It has been taken up in India as well in the form of compulsory adjudication but the implementation of the same has been very poor. 2. The term was coined by Sydney and Beatrice Webb. 3. Though there isn't unanimity between scholars as to the definition of the term, it is essentially taken to mean any sort of agreement between the employers and employees with respect to the conditions of employment and term of service. 4. It involves 2 parties namely- the employers either on their own or represented by the employers' union/federation and the workers represented by their unions. 5. Sometimes when the law provides for collective bargaining, the trade unions are also referred to as bargaining agents. 6. There has been a long standing debate that a representative of the public/government must also be allowed to be a part of the bargaining table. 7. The ILO has divided the subject matter of collective bargaining into 2 categories- \(a) Those which set out standards of employment and regulate employer-employee relations. E.g. wages, working hours, etc. \(b) Those which regulate the relations between the parties to the agreement and do not affect the employer-employee relationship in any way. E.g. methods of enforcing collective bargaining, methods of settling individual disputes, etc. 8. The International Confederation of Free Trade Union has referred to collective bargaining as a 'worker's bill of rights' and has laid down the following objects of collective bargaining- \(a) To establish recognition of trade unions. \(b) To increase the standard of living of workers and to give them a fair share in the company's profits. \(c) To practically express their demands and to ensure democratic participation. \(d) To settle day to day disputes in the establishment. \(e) To achieve general objectives such as defending and promoting the interests of workers in the country. 9. The duration of collective bargaining contracts vary from contract to contract. However, the management generally prefers to have a longer contract. In the US, such contracts last for upto about 3 years and have renewal clauses. In UK, there are open end contracts which may be renegotiated at any time by giving notice. 10. The following are some of the pre-requisites for collective bargaining- \(a) Freedom of association \(b) Strong and stable trade unions \(c) Recognition of trade unions \(d) Willingness to give and take \(e) Measures against unfair labour practices and victimisation 11. The main features of collective bargaining may be enumerated as follows- \(a) It involves group action and not individual action. \(b) It is a two party process \(c) It is a continuous process. \(d) It is dynamic and not static. \(e) It is flexible and mobile. \(f) It is industrial democracy at work. \(g) It is an art, an advanced form of human relations. \(h) It is not a competitive but a complimentary process. 12. The following are some of the advantages of collective bargaining- \(a) It is a bipartite agreement between employers and employees and thus is devoid of any complications caused by the entry of third parties. \(b) It saves a lot of time as decisions are taken more expeditiously. \(c) It is a democratic method of settling disputes. 13. Some disadvantages are- \(a) Strikes cannot be tolerated at all times. \(b) Lack of public representation on the bargaining table. 14. In India, collective bargaining has formed an important part of the planning process. The first five year plan recognised the right of workers to form organisations and associations and to use methods of collective bargaining. The second five year plan also realized the importance of mutual settlement of disputes. 15. The third five year plan encouraged voluntary arbitration and compulsory adjudication. The fourth five year plan stressed on the importance of collective bargaining, the development of the trade union movement and voluntary arbitration. 16. The National Commission on Labour was appointed by the Government of India in 1966 and it made the following recommendations- \(a) There must be recognition of trade unions. \(b) There must be a right to strike/lockout if collective bargaining is there. \(c) Regulation by the government required in a planned economy like India wherein if the entire system was left to the employers and the employees, it would seriously prejudice interests of employees. \(d) Continuing with a system of voluntary arbitration and adjudication and giving primacy to collective bargaining eventually so that interests of the public are not harmed. 17. The following factors have affected successful collective bargaining in India- \(a) Institutions such as the works committee, institution of standing orders and procedure for their certification and the adjudication system have weakened the trade unions. \(b) The provisions of the Trade Unions Act which prohibited certain forms of unfair practices on the part of management have not been enforced yet. \(c) Protection granted against criminal or civil conspiracy and restraint of trade under Ss. 17, 18 and 19 of the Act are insufficient. \(d) The labour laws in India greatly restrict the bargaining power of workers. The Industrial Disputes Act restricts the striking power of Indian workers. Also, Art. 19(1)(c) provides for the freedom of association but in the [All India Bank Employees Case,] the scope of this article was considerably limited by the SC when it stated that the freedom of association didn't include the right to strike. \(e) S.7 of the Criminal Law (Amendment Act) makes it impossible for workers to indulge in certain activities such as picketing, obstruction of access, intimidation of persons or employees, loitering at places of residence or business with the purpose of deterring others from entering/encroaching/dealing in such place, etc. Further, in Damodar Ganesh v. State, the court held that picketing under S.7 includes peaceful picketing as well and thus restricted the right of workers and their unions even more. \(f) The surplus labour market in India also affects the bargaining power of workers. \(g) The absence of provision for recognition has also caused several problems. \(h) Moreover the government's unfettered discretionary power to refer disputes for adjudication and pass prohibitory orders under S.10 of the ID Act has seriously restricted the scope of collective bargaining. \(i) Then there are other issues such as the worker if he so desires he may be represented by his union (S.36 of the ID Act). But, a union is not entitled on its own to represent its members. Further, the union cannot bind its members by its decisions. 5.3 [Techniques of Pressurization: strike and lockout, go-slow, work to rule, gherao, bandh] 1. S. 2(p) of the ID Act provides for settlements other than conciliation settlements. 2. S. 18(1) recognises bilateral settlements as being binding on the parties to the settlement. 3. In [Tata Chemicals v. Workmen,] it was held that it is illegal to refuse with a recognised trade union. 4. In the process of bilateral negotiations, the parties can make use of weapons such as strikes and lock-outs so as to make the other party behave reasonably. 5. Lockout means the temporary closing of place of work or suspension of work or refusal of employer to give work to persons employed under him. 6. As per 2(q), strike means cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. 7. The definition doesn't talk about the purpose of strike as such. Hence, strike may be resorted to for purposes other than industrial disputes. However, the judiciary has classified strikes into justified and unjustified strikes and has stated that strikes for any other purpose other than industrial disputes are unjustified. 8. The method of go-slow is not a strike but is regarded as a more serious form of misconduct. This was stated in [Bharath Sugar Mills v. Jai Singh]. Go slow involves slow down of production by workers and it has serious economic implications. It has been regarded as a misconduct under the Model standing orders appended to the Industrial Employment (Standing Orders) Act. 9. No workman in an establishment shall go on a strike and no employer shall declare a lock-out in the following circumstances- \(a) When conciliation proceedings are pending before a Conciliation board and 7 days after such proceedings. \(b) When conciliation proceedings are pending before the labour court, industrial tribunal or national tribunal and 2 months after such proceedings. \(c) When arbitration proceedings are pending before an arbitrator and 2 months after such proceedings. \(d) During any period in which a settlement or award is in operation in relation to any matter in such settlement or award. 10. No person employed in a public utility service can go on strike without giving a notice to the employer within 6 weeks of going on such strike. 11. The employees cannot go on strike- \(a) Within 14 days of giving such notice. \(b) Before the expiry of the date of strike as mentioned in the notice. \(c) And when conciliation proceedings are pending, during the pendency of such proceedings and 7 days thereafter. 12. No employer in a public utility service may lock-out his employees without giving a notice of 6 weeks. 13. The employers cannot impose a lock-out- \(a) Within 14 days of giving such notice. \(b) Before the expiry of the date of lock-out as mentioned in the notice. \(c) And when conciliation proceedings are pending, during the pendency of such proceedings and 7 days thereafter. 14. As per GM Kothari, the term strike is derived from the English terms 'strican to go'! 15. The characteristics of strike are as follows- \(a) There must be an established relationship between the persons striking and the one whom they are striking against. \(b) Such relationship must be one of an employer and employee. \(c) Strike must be resorted to for settlement of a dispute by using the weapon of stoppage of work or refusal to work to make the employer comply with the demands of the employee. \(d) At no point of time does strike mean cessation of the employer-employee relationship. 16. The definition of strike as given under the ID Act shows the presence of the following requirements- \(a) There must be cessation of work. \(b) There must be cessation of work by a body of persons employed under an industry. \(c) Such persons must be acting in combination or there must be a concerted refusal or there must be a refusal based on a common understanding of persons employed to continue to work or accept employment. 17. There must be actual cessation of work and not otherwise. 18. There is no time duration for such cessation under the act and hence there may be cessation even for a few hours provided there is a concerted refusal to work or refusal under a common understanding. ([State of Bihar v. Deodhar Jha)] 19. However, such cessation must be temporary and voluntary as a permanent cessation would lead to termination of the contract of employment which is not contemplated by a strike. 20. A mere resolution to go on a strike at a later date or a mere apprehension or threat of strike doesn't amount to strike as such. 21. This was also held in [Buckingham and Carnatic Company Ltd. v. Workers,] wherein it was held that as there was concerted action on the part of the workers, it amounted to a strike. Further, as textile mills formed part of public utility services and adequate notice was not given prior to the strike, such strike was illegal. 22. The terms 'acting in combination' means that the workers must psychologically be directed towards a particular end which is the cessation of work. Cessation of work must be the direct common object of the workers. 23. In [Shamnagar Jute Factory v. Workers,] it was held that cessation wouldn't amount to strike if the direct common object of such stoppage of work was not for the purpose of strike but cessation of work was only an indirect consequence of their actions. 24. Concerted action must be combined together by the community of demands and interests of all. 25. The proof of combination, concerted action or common understanding is dependent on proof of common intention and common object. There cannot be any direct proof of common intention but the same may be gathered from the circumstances. [(Delta Jute Mills Ltd. v. Workmen)] 26. Refusal of work must be to refuse to perform duties which the workers are required to perform and not what is only an alternative for them. What work is required to be performed depends on what work is habitually required to be done in an industry. 27. Further, the refusal must be in defiance of the authority of employers. In [Standard Vacuum Oil Company v. Gunaseelan MF,] it was held that where there is no intention on the part of the workmen to paralyse the work of the concern, there is no strike. 28. In [Model Mills v. Dharam Das,] it was held that strikes must necessarily be for the purpose of a dispute or for pressing any demands of the workers. 29. The National Commission on Labour has suggested that every strike must be preceded by a strike ballot and such strike must be supported by atleast 2/3^rd^ of the workers present and voting. The notice to be given to the employer with respect to strike must embody such fact. 30. The commission also suggested that requirement of notice must be extended to all industries and not just public utility services. 31. Rule 71 of the ID rules provides that notice of strike to be given in Form L. On receipt of the notice, the employer shall communicate the same to the conciliation officer. 32. S. 2(n) of the ID Act states that the following are a part of public utility services- \(a) Any railway or air service. \(b) Any service in connection with the working of a major port or dock of such major port or dock. \(c) Any post or telegraph service. \(d) Any part of an industrial establishment on whose working, the safety of the establishment and its workers depends. \(e) Any service for the supply of power, light or water to the public. \(f) Any system of public conservancy or sanitation. \(g) Any such service mentioned in the first schedule which may be declared as a public utility service by the government by way of notification in the Official Gazette for a temporary period. 33. The appropriate government has also been authorized to add any service to the first schedule if it is expedient or necessary in public interest. 34. It is important that the object of strike must be connected with employment, non-employment, terms of employment and conditions of labour. 35. Strikes may be categorised as under- \(a) Where workers on a particular day withdraw their services completely, such strikes are known as Sunday strikes, Alternate day's strike, etc. \(b) Where workers withdraw services partially, it is known as liedown strike, tooldown strike, lazy strike, bumper strike, sitdown strike, slowdown strike, token strike, slowgear strike, pendown strike, etc. \(c) Where workers attend work but use irritative methods such as irritation strikes, pearl strikes, etc. \(d) Hunger strikes. 36. The