Unit 3 Trade Union Act 1926 PDF

Unit 3 Trade Union Act 1926 Immunity granted to registered trade unions, Recognition of trade unions, The Industrial Employment (Standing Orders) Act 1946.  Trade Union means “any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between...

Unit 3 Trade Union Act 1926 Immunity granted to registered trade unions, Recognition of trade unions, The Industrial Employment (Standing Orders) Act 1946.  Trade Union means “any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions”. Trade union is a voluntary organization of workers pertaining to a particular trade, industry or a company and formed to promote and protect their interests and welfare by collective action. They are the most suitable organisations for balancing and improving the relations between the employer and the employees. They are formed not only to cater to the workers’ demand, but also for inculcating in them the sense of discipline and responsibility.  INTRODUCTION Trade Unions Act, 1926 deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensures that their funds are utilised properly. It gives legal and corporate status to the registered trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on their legitimate activities for the benefit of the working class. The Act is applicable not only to the union of workers but also to the association of employers. It extends to whole of India.  Definition Section 2 of the Act defines various terms used in the Act, some of the definitions are given here under: Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted.[ Section 2 (a)] Office-bearer in the case of a trade union, includes any member of the executive thereof, but does not include an auditor.[ Section 2 (b)] Registered office means that office of a trade union which is registered under this Act as the head office thereof. [Section 2 (d)] Registered trade union means a trade union registered under this Act.[ Section 2 (e)]  Trade dispute means any dispute between employers and workmen, or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labor, of any person, and “workmen” means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises. [ Section 2 (g)] Trade union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions. [Section 2 (h)]  Mode of registration Section 4 provides that any seven or more members of a Trade Union may by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union. However, no Trade Union of workmen shall be registered unless at least ten per cent. or one hundred of the workmen, whichever is less, engaged or employed in the establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration.  Application for registration Section 5 stipulates that every application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars, namely: – the names, occupations and address of the members making application; – in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making the application; – the name of the Trade Union and the address of its head office; and – the titles, names, ages, addresses and occupations of the office-bearers of the Trade Union. Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in  Recognition of Trade Unions Recognising the importance of having a central law for registering trade unions, the Indian Parliament passed the Indian Trade Union (Amendment) Act in 1947. This Act was meant to add a new chapter, Chapter III-A, to the Trade Union Act of 1926. This new chapter would have outlined the conditions necessary for trade unions to be officially recognised. However, this Act was never put into effect. As a result, there is currently no law in India that mandates the recognition of trade unions.  Need For Recognition of Trade Union Collective bargaining is a crucial part of the relationship between employers and employees. However, not all trade unions have the right to engage in collective bargaining; this right is typically granted to recognised trade unions. The process of registering a trade union is one thing, but being officially recognised as the exclusive representative for collective bargaining is another matter. Many industrial strikes have occurred due to disputes over trade union recognition. In practical terms, management usually engages in negotiations and collective bargaining only with recognised trade unions. Therefore, recognition of trade unions plays a fundamental role in collective bargaining. The question of whether a trade union should be recognised or not has been a subject of debate, primarily because there is no enforced central legislation regarding trade union recognition. Rights Granted on Recognition of Trade Unions In the case of Workmen of Kampali Co-operative Sugar Factory Ltd. v. Management of Kampli Co-operative Sugar Factory Ltd., the court ruled that if there is no statutory provision for trade union recognition, such a right cannot be enforced through a writ petition. In the absence of a statutory provision or a recognition agreement between the employer and the union, no legal right exists merely because the management has recognised the union. Furthermore, the withdrawal of recognition does not violate any legal right. Methods of Recognition of Trade Union Recognition of trade unions can be broadly categorised into two main types: voluntary recognition and statutory recognition. Voluntary recognition of trade unions occurs when employers willingly acknowledge and engage with a trade union as a legitimate representative of their employees. In contrast, statutory recognition of trade unions is a legal requirement imposed by government regulations, which mandates employers to recognise specific trade unions for the purpose of collective bargaining and negotiation. Both forms of recognition serve to establish and formalise the relationship between employers and trade unions, allowing for organised discussions on employment terms, conditions and workers’ rights.  Recognition by Management Recognition by management, a form of voluntary recognition, is crucial for the success of a trade union. To be effective in collective bargaining, it’s essential for an employer to acknowledge the union’s legitimacy. Even if a union is strong and stable, without employer recognition, its influence may be limited. Election by Secret Ballot Election by Secret Ballot is a system in which all eligible workers in an establishment vote for their preferred union, typically conducted by a neutral agent, often the Registrar of Unions, resembling general elections. The election results typically remain valid for a specified period, often around two years. The Supreme Court, in the case of Food Corporation of India Staff Union vs. Food Corporation of India and Others, established guidelines for evaluating the representative character of trade unions through the Secret Ballot system.  Check-Off Method The Check-Off method involves each worker authorising management, in writing, to deduct union fees from their wages and transfer them to the chosen union. This method provides management with a clear understanding of the relative strengths of different unions but can be susceptible to manipulation, particularly when there is favouritism or a large workforce. It also relies on all unions accepting and cooperating with the method.  For more visit: https://lawbhoomi.com/recognition-of-trade-unions/  Immunity granted to registered trade unions CRIMINAL IMMUNITIES OF REGISTERED TRADE UNIONS Members and administrators of registered trade unions are provided with specific privileges and immunities under the Trade Unions Act, 1926, permitting them to engage in their lawful union business without being anxious about facing legal action or criminal repercussions. It is the most crucial right, without which the registered trade union administrators might not be able to carry out their responsibilities satisfactorily.  Section 17 in The Trade Unions Act, 1926 17 Criminal complicity in industrial conflicts. —No If [office-bearer] or a member of a registered trade union makes an agreement with another union member to further any of the trade union’s objectives listed in section 15, that agreement may be punished under sub-section (2) of section 120B of the Indian Penal Code (45 of 1860). Unless the agreement is to commit a felony. IMPORTANT: Section 15 of the Act lists general funds of a trade union that are registered and that are prohibited from being used for any other purpose. The payment of earnings, benefits, and expenditures to The payment of trade union administrative expenses, such as audit fees The filing of a legal action or the rebuttal of one in which the Trade Union Conducting trade disputes on behalf of the Trade Union or any member Members’ culpability for injuries brought on by trade disputes Repayments to members or their heirs in the event of an accident, unemployment, or worsening health. The issue whether or not to assume a duty under assurance plans related to the lives of members Offering educational, social, or religious positive aspects to members or their offspring (including financing for funerals or additional traditions for late members); The release of a journal whose main goal is to talk about topics that affect employers or workers generally. Making contributions to any because that seeks to help workers generally in order to further any of the objectives on which the Trade Union may decide its general financial matters. CIVIL IMMUNITIES OF REGISTERED TRADE UNIONS Section 18 provides immunity from civil liability. Immunity from a civil lawsuit in certain situations. (1) A civil court cannot bring a suit or other legal proceeding against any registered trade union, any 1[office-bearer] or member thereof, to any act done in contemplation or furtherance of a trade dispute in which the trade union member is a party, on the sole basis that the act in challenging induces another person to violate an employment contract, interferes with another person’s trade, business, or employment, or blurs another person’s ability to dispose of capital or labour as they observe a good fit.  (2) If it can be demonstrated that an agent of the union acted in a tortious manner in the contemplation or furtherance of a trade dispute without the knowledge of or in contradiction of specific instructions from the union executive, the registered union shall not be liable in any suit or other legal proceeding in any Civil Court. In particular circumstances, such as contractual liability, tortuous liability, etc., the leaders and office bearers of registered trade unions are shielded from civil suits, according to this provision. The Industrial Employment (Standing Orders) Act, 1946  ‘Standing Orders’ defines the conditions of recruitment, discharge, disciplinary action, holidays, leave, etc., go a long way towards minimising friction between the management and workers in industrial undertakings. The Industrial Employment (Standing Orders) Act requires employers in industrial establishments to clearly define the conditions of employment by issuing standing orders duly certified. It applies to every industrial establishment wherein 100 or more workmen are employed or were employed on any day during the preceding twelve months. Model standing orders issued under the Act deal with classification of workmen, holidays, shifts, payment of wages, leaves, termination etc. The text of the Standing Orders as finally certified under this Act shall be prominently posted by the employer in English and in the language understood by the majority of his workmen on special boards to be maintained for the purpose at or near the entrance through which the majority of the workmen enter the industrial establishment and in all departments thereof where the workmen are employed.  The Industrial Employment (Standing Orders) Act, 1946 requires employers in industrial establishments to define with sufficient precision the conditions of employment under them and to make the said conditions known to workmen employed by them.  IMPORTANT DEFINITIONS Appellate Authority It means an authority appointed by the appropriate Government by notification in the Official Gazette, to exercise in such area, as may be specified in the notification the functions of an appellate authority under this Act. [Section 2(a)] Appropriate Government “Appropriate Government” means in respect of industrial establishments under the control of the Central Government or a Railway administration or in a major port, mine or oilfield, the Central Government, and in all other cases the State Government: Provided that where any question arises as to whether any industrial establishment is under the control of the Central Government, that Government may, either on a reference made to it by the employer or the workman or a trade union or other representative body of the workmen or on its own motion and after giving the parties an opportunity of being  Certifying Officer “Certifying Officer” means a Labour Commissioner or a Regional Labour Commissioner, and includes any other officer appointed by the appropriate Government by notification in the Official Gazette, to perform all or any of the functions of a Certifying Officer under this Act. [Section 2(c)]  Employer “Employer” means the owner of an industrial establishment to which this Act applies and also includes the following persons: (i) A manager so named under Section 7(1)(f) of the Factories Act, 1948. (ii) The head of the department or any authority appointed by the Government in any industrial establishment under its control. (iii) Any person responsible to the owner for the supervision and control of any other industrial establishment which is not under the control of Government. [Section 2(d)]  ndustrial Establishment It means (i) an industrial establishment defined by Section 2(ii) of the Payment of Wages Act, 1936, or (ii) a factory as defined by Section 2(m) of the Factories Act, 1948, or (iii) a railway as defined by Section 2(4) of the Indian Railways Act, 1890, or (iv) the establishment of a person who, for the purpose of fulfilling a contract with the owner of any industrial establishment, employs workmen. [Section 2(e)]  Standing Orders “Standing Orders” means rules relating to matters set out in the Schedule to the Act. [Section 2(g)] Wages and Workmen The terms “Wages” and “Workmen” have the meanings respectively assigned to them in clauses (rr) and (s) of Section 2 of the Industrial Disputes Act, 1947. [Section 2(i)]  Matters to be provided in Standing Orders under this Act 1. Classification of workmen, e.g., whether permanent, temporary, apprentices, probationers or badlis. 2. Manner of intimating to workmen periods and hours of work, holidays, pay-days and wage rates. 3. Shift working. 4. Attendance and late coming. 5. Conditions of, procedure in applying for, and the authority which may grant leave and holidays. 6. Requirement to enter premises by certain gates, and liability to search. 7. Closing and reopening of sections of the industrial establishment, and temporary stoppage of work and the rights and liabilities of the employer and workmen arising therefrom.  8. Termination of employment, and the notice thereof to be given by employer and workmen. 9. Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct. 10. Means of redress for workmen against unfair treatment or wrongful exactions by the employer or his agents or servants. 10A. Additional matters to be provided in Standing Orders in coal mines. 1. Medical aid in case of accident. 2. Railway travel facilities. 3. Method of filling vacancies. 4. Transfers. 5. Liability of manager of the establishment or mine. 6. Service Certificate. 7. Exhibition and supply of Standing Orders.  10B. Additional matters to be provided in Standing Orders relating to all industrial establishments. 1. Service record-matters relating to service card, token tickets, certification of services, change of residential address of workers and record of age. 2. Confirmation. 3. Age of retirement. 4. Transfer. 5. Medical aid in case of accidents. 6. Medical examination. 7. Secrecy. 8. Exclusive services. 9. Any other matter which may be prescribed. In a significant judgement on gender justice, the Supreme Court has ordered that employers should include strict prohibitions on sexual harassment of employees and appropriate penalties against the offending employees in Standing Orders.