Trade Unionism

The germs of trade unionism in India can be traced back to the year 1890 , when for the first

time an association for Mills worker was framed in the name of Bombay Mills hands

Association . This association was formed for the redressal of grievances of the Bombay Mills

Workers. It is difficult to treat this association as trade union in the strict sense in which this

expression is used now adays. After the First World War was over the cost of living considerably

increased. The political agitation against foreign rule was also gaining momentum throughout the

country. The increase in cost of living and country wide political upsurge found its ways in

economic discontent amongst masses, particularly in industries. The industrial unrest and

economic discontent led to a umbers of strikes by workers, guided and controlled by their Action

Committees consisting of representatives of workers themselves . On many occasions these

strikes were successful in getting the demands of the workers fulfilled.

The trade Union movement in India got impetus by the success of strikes in India and

worldwide uprising of labour consciousness. The establishment of International Labour

Organisation has also influenced the growth of the trade union movement in our country.

The progress of the trade union movement in India in pre- independence days has not been very

satisfactory, but the post independence has been a tremendous Trade Union activity in very

sphere of industry. Now there is very hardly any category of workers which has no union of its

own.

The Royal Commission on labour in India has observed :

Trade Unionism to be fully effective , demand two things :

workers and the lack of education is the most serious obstacle of all. Few trade unions can

afford to conduct benevolent work , and the majority find it hard to convince the worker that a

subscription is worthwhile except when a dispute is imminent or in progress.

Development of Trade Union Law in India:

After the independence democratic sprite is gradually developing among the Indian citizens and

the workmen in industry are not an exception to it. It was in the year 1920 that the HC of

Madras in a suit filed against the officials of Madras Textile Laour Union by Binny and Co ,

granted an injunction restraining the Union Official to induce certain workers to break their

contracts of employment by refusing to return to work . Obviously the leaders of the Trade

Union found themselves liable to prosecution and imprisonment even for bona fide, trade union

activities1.

Mr. N.M Joshi, the then General Secretary of all Indian Trade Union Congress moved a

resolution in the central legislative Assembly seeking introduction of some measures by the

government for protection of trade unions. After such demand the Trade Unions Act 1926 was

passed.

The Trade Unions Act, 1926 made provision in respect of:

i- Conditions governing the registered trade union

ii- obligations imposed upon a registered trade union

iii- rights and privileges of a registered trade union.

1
Backingham Case (1920)
The Trade Union Act was amended in 1929 so as to provide for the procedure of appeal against

the decisions of registrar.

The Royal Commission on Labor (1928) after examining the working of the Act made the

following recommendations –

i- The Act was to be re- examined within 3 years.

ii- The accounts of the trade unions should be audited free of charge by government officers.

iii- At least two third members of the executive of the trade unions should be persons actually

engaged in industry to which the unions relates.

iv- Trade Union should not be deprived of carrying on co-operative societies.

Indian Trade Union (Amendment) Act , 1947

The T.U. Act ,1926 made provisions for registration of a trade union after fulfilling the

requisite conditions but the employer was no under obligation to deal with a trade union or to

recognize it . It was highlighted in various Conferences of labour minister. Consequently the Act

was amended in 1947 and providing for compulsory recognition by the employers of

representative trade unions. The Trade Unions Act 1926 once again has been amended in 2001.

Some of the salient features of the Trade Unions (Amendment) Act, 2001 are:

1. No trade union of workmen shall be registered unless at least 10% or 100, whichever is less,

subject to a minimum of 7 workmen 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.
2. A registered trade union of workmen shall at all times continue to have not less than 10% or

100 of the workmen, whichever is less, subject to a minimum of 7 persons engaged or employed

in the establishment or industry with which it is connected, as its members.

3. A provision for filing an appeal before the Industrial Tribunal/Labour Court in case of non-

registration or for restoration of registration has been provided.

4. All office bearers of a registered trade union, except not more than one-third of the total

number of office bearers or five, whichever is less, shall be persons actually engaged or

employed in the establishment or industry with which the trade union is connected.

5. Minimum rate of subscription by members of the trade union is fixed at one rupee per annum

for rural workers, three rupees per annum for workers in other unorganised sectors and 12 rupees

per annum in all other cases.

6. The employees who have been retired or have been retrenched shall not be construed as

outsiders for the purpose of holding an office in the trade union concerned.

7. For the promotion of civic and political interest of its members, unions are authorized to set up

separate political funds.

Hence, trade union legislation ensures their orderly growth, reduce their multiplicity and promote

internal democracy in the industrial organisation and the economy. The trade unions have thus

acquired an important place in the economic, political and social set up of the country.

Objectives of Trade Union

They aim to:

ii- Safeguard security of tenure and improve their conditions of service.

iii- Improve working and living conditions of workers.

iv- Provide them educational, cultural and recreational facilities.

vi- Facilitate technological advancement by broadening the understanding of the workers.

vii- Help them in improving levels of production, productivity, discipline and high standard of

living.

Viii - Promote individual and collective welfare and thus correlate the workers’ interests with

that of their industry.

Trade Union – sec 2 (h)

It 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 employees and employers, or for imposing restrictive conditions on the conduct of any

trade or business, and includes and federation of two or more trade unions .

Provided that this Act shall not affect -

(i) Any agreement between partners as to their own business;

(ii) Any agreement between an employer and those employed by him as to such employment ;

or
(iii) Any agreement in consideration of the sale of the goodwill of a business or instruction in

any profession, trade of handicraft.

Trade dispute sec 2( g)

It 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 labour, 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

Officer-bearer sec 2(b)

It means in the case of a Trade Union includes any member of the executive thereof, but does not

include an auditor.

Registration of Trade Union

Following perspectives included in the Registration of Trade Union:

Appointment of Registrars sec ( 3)

Under Section 3 (1) the appropriate Government shall appoint a person to be the Registrar of

Trade Unions for each State.

(2) The appropriate Government may appoint as many Additional and Deputy Registrars of

Trade Unions as it thinks fit. The appropriate Government may appoint as many Additional and

Deputy Registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging

under the superintendence and direction of the Registrar such powers and functions of the
Registrar under this Act as it may by order, specify and define the local limits within which any

such Additional or Deputy Registrar shall exercise and discharge the powers and functions so

specified.

(3) Subject to the provisions of any order under sub-section (2), where an Additional or Deputy

Registrar exercises and discharges the powers and functions of a Registrar in an area within

which the registered office of a Trade Union is situated, the Additional or Deputy Registrar shall

be deemed to be the Registrar in relation to the Trade Union for the purposes of this Act.

Mode of Registration sec 4

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 under this Act:

Provided that 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:

Provided further that no Trade Union of workmen shall be registered unless it has on the date of

making application not less than seven persons as its members, who are workmen engaged or

employed in the establishment or industry with which it is connected.

Where an application has been made under sub-section (1) for the registration of a Trade Union,

such application shall not be deemed to have become invalid merely by reason of the fact that, at

any time after the date of the application, but before the registration of the Trade Union, some of
the applicants, but not exceeding half of the total number of persons who made the application,

have ceased to be members of the Trade Union or have given notice in writing to the Registrar

dissociating themselves from the applications.

Application for Registration sec 5

(1) 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 Trade Union and a statement of the following

particulars, namely :-

(a) the names, occupations and address of members making the application;

(b) the name of the Trade Union and the address of its head office; and

(c) the titles names ages, addresses and occupations of the office bearers of the Trade Union.

(2) 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 application,

a general statement of the assets and liabilities of the Trade Union prepared in such form and

containing such particulars as may be prescribed.

Provisions to be contained in the rules of a Trade union- sec 6

A Trade Union shall not be entitled to registration under this Act, unless the executive thereof is

constituted in accordance with the provisions of this Act, and the rules there of provide for the

following matters, namely :-

(a) the name of the Trade Union

(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purpose for which the general funds of a Trade Union shall be applicable, all

of which purposes shall be purposes to which such funds are lawfully applicable under this Act;

(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the

inspection thereof by the office bearers and members of the Trade Union;

(e) The admission of ordinary members who shall be persons actually engaged or employed in an

industry with which the Trade Union is connected and also the admission of the number of

honorary of temporary members as office bearers required under section 22 to form the executive

of the Trade Union;

(ee) The payment of a subscription by members of the Trade Union which shall be not less than

twenty five naye paise per month per member.

(f) the conditions under which any member shall be entitled to any benefit assured by the rules

and under which any fine or forfeiture may be imposed on the members;

(g) The manner in which the rules shall be amended, varied or rescinded;

(h) The manner in which the members of the executive and the other officer bearers of the Trade

Union shall be appointed and removed;

(i) The safe custody of the funds the Trade Union, and annual audit, in such manner as may be

prescribed, of the accounts thereof and adequate facilities for the inspection of the accounts

books by the officer bearers and members for the Trade Union; and

(j) The manner in which the Trade Union may be dissolved.

(1) The Registrar may call for further information for the purpose of satisfying himself that any

application complies with the provisions of section 5, or that the Trade Union is entitled to

registration under section 6, and may refuse to register the Trade Union until such information is

supplied.

(2) If the name under which a Trade Union is proposed to be registered is identical with that by

which any other existing Trade Union has been registered or, in the opinion of the Registrar, so

nearly resembles such name as to be likely to deceive the public or the members of either Trade

Union, The Registrar shall require the persons applying for registration to alter the name of the

Trade Union stated in the application, and shall refuse to register the Union until such alteration

has been made.

Registration- Sec 8

The Register, on being satisfied that the Trade Union has complied with all the requirements of

this Act, in regard to registration, shall register the Trade Union by entering in a register, to be

maintained in such form as may be prescribed, the particulars relating to the Trade Union

contained in the statement accompanying the application for registration.

Certificate of registration - sec 9

The Registrar, on registering a Trade Union under section 8, shall a certificate of registration in

the prescribed form under this Act.

A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar-

(a) on the application of the Trade Union to be verified in such manner as may be prescribed, or

(b) if the Registrar is satisfied that the certificate has been obtain by fraud or mistake, or that the

Trade Union has ceased to exist or has willfully and after notice from the Registrar contravened

any provision of this Act or allowed any rule to continue in force which is inconsistent with any

such provision, or has rescinded any rule providing for any matter provision for which is

required by section 6;

Appeal - sec 11

(1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the

withdrawal or cancellation of a certificate of registration may, within such period as may be

prescribed, appeal-

(a) Where the head office of Trade Union is suited within the limits of a Presidency town to the

High Court, or

(b) Where the head office is situated in any other area, to such Court, not inferior to the Court of

an additional or assistant Judge or a principal Civil Court of original jurisdiction, as the

appropriate Government may appoint in this behalf for that area.

(2) The appellate Court may dismiss the appeal, or pass an order directing the Register to register

the Union and to issue a certificate of registration under the provisions of section 9 or setting

aside the order for withdrawal or cancellation of the certificate, as the case may be, and the

Registrar shall comply with such order.

follow the same procedure and have the same powers as it follows and has when trying a suit

under the Code of Civil Procedure, 1908 (5 of 1908), and may direct by whom the whole or any

part of the costs of the costs of the appeal shall be paid, any such costs shall be recovered as if

they had been added in a suit under the said Code.

(4) In the dismissal of an appeal by any Court appointed under clause (b) of subsection (1), the

person aggrieved shall have a right of appeal to the High Court shall, for the purpose of such

appeal, have all the powers of an appellate Court under subsection (2) and (3), and the provisions

of those subsection shall apply accordingly.

Registered Office - sec 12

All communications and to a registered Trade Union may be addressed to its registered office.

Notice of any change in the address of the head office shall be given within fourteen days of such

change to the Registrar in writing, and the changed address shall be recorded in the register

referred to in section 8.

Incorporation of registered Trade Unions sec 13

Every registered Trade Union shall be a body corporate by the name under which it is registered,

and shall have perpetual succession and a common seal with power to acquire and hold both

movable.