CENTRAL UNIVERSITY OF SOUTH BIHAR

SCHOOL OF LAW AND GOVERNANCE

TOPIC:- Trade Union and test of Trade Union

Submitted To:- Dr. Ram Chandra Oran

Submitted By:-
Prabhakar Kumar
Course:-BA.LLB.(Hons.)
Semester:-7th
Cusb1613125036
Subject:- Labour Law- I
 Acknowledgement
It is great pleasure for me to present the final draft of the project of
Jurisprudence. I am very obliged to my prof.Dr. Ram Chandra Oran of
Central University of South Bihar Gaya who has given me a task to
complete the final draft of the project work. I am very much helped by
him regarding the formation of this final draft.
I express my heartfelt indebtedness to sir who showed me the path and
helped me to understand the project topic. It was not possible for me to
make the final draft if I was not being helped by him. He acted as my
mentor and also a guide to help me to understand the the topic.
I would like to express my gratitude towards my parents for their kind
co-operation and encouragement which help me in completion of this
final draft.
I would like to express my special gratitude and thanks to the computer
lab assistant who provided me all the facilities regarding the
conditioned computer with a good Wi-Fi net.
My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities.

Thanks

i
 CONTENTS
Topics Page No.

1. Acknowledgement……………………………………………………………………… i
2. Table of cases…………………………………………………………………………... iii
3. Introduction……………………………………………………………………………..1
4. Statutory Definition of Trade Union…………………………………………………….2
5. Objective of Trade Union……………………………………………………………….3
6. Function of Trade Union………………………………………………………………...3
7. History of Trade Union Movement in India…………………………………………….4
8. Test to Determine Whether a Union is Trade Union……………………………………6
9. Illustration/ Cases………………………………………………………………………..6
10. Conclusion………………………………………………………………………………12
11. Bibliography…………………………………………………………………………….13

ii
 TABLE OF CASES.

 Rangaswami v Registrar of Trade Union AIR 1962 Mad 231……………………………7

 Performing Rights Society v. London Theater of Varities. (1924) AC 1…………………7
 Non-gazetted govt. Officer’s union v registrar of trade unions. AIR 1962 Mad 234……8
 State of Bombay v Hospital Mazdoor Sabha. AIR1960 SC 610…………………………9
 Nagpur Corpn.V.Its Employees. AIR 1960 SC 675……………………………………...9
 Registrar or Trade unions v Government Press Employees Union, Pondicherry1976 Lab
IC 280 (Mad)…..................................................................................................................9
 Tirumala Tirupati Devasthanam v. commr. of labour………………………………….10

iii
INTRODUCTION
A trade union or labor union is an organization of workers that have banded together to achieve
common goals such as better working conditions. The trade union, through its leadership,
bargains with the employer on behalf of union members (rank and file members) and negotiates
labour contracts (collective bargaining) with employers. This may include the negotiation of
wages, work rules, complaint procedures, rules governing hiring, firing and promotion of
workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders
are binding on the rank and file members and the employer and in some cases on other non-
member workers.1
 Webb’s definition of trade union “a trade union means an association of workers in one
or more occupation— an association carried on mainly, for the purpose of protecting and
advancing the members’ economic interests in connection with their daily work.” 2
 G.D.H. Gole define trade union as “A trade union is an association of employees
designed primarily to maintain or improve the conditions of employment of its
members.”3
 Lester define A trade union is a continuous association of persons in industry, whether
employers, employees or independent workers—formed primarily for the purpose of the
pursuit of the interest of its members and of the trade they represent. 4
 V.V.Giri define the trade unions are voluntary organizations of workers formed to
promote and protect their interest by collective action. Once the workers join trade union,
they must be welded together in a united front for the good of the whole group rather than
for promotion of any selfish individual motive or interest. In fact strength lies in the unity
it functions effectively on the solemn belief that “united we stand divided we fall”. 5
In the Soviet Union, trade union was defined as “association of producers, in which citizens
employed for remuneration in state, cooperative and private undertakings, institutions and
business are organized. The union acts for its members in all negotiations with the various state

1
Information Technology Act,2000.,available at:- https://www.nidirect.gov.uk › articles › introduction-trade-unions
(last visited 12th Nov.2019).
2
Information Technology Act,2000.,available at:- http://www.yourarticlelibrary.com/trade-unions/trade-union-its-
meaning-and-definition-trade-union/26118(last visited 12th Nov.2019) .
3
Ibid.
4
Ibid.
5
Ibid.

1
institutions and represents them at a conclusion of agreements and contracts and in all
discussions of questions relating to labour and social welfare. 6
Trade unions, as generally, understood, are combinations of workmen of some trade or of several
allied trades for the purpose of securing by united action, the most favourable conditions as
regards wages, hour’s of labour etc. for its members. The essence of trade union is found in the
solidarity among its rank and file as a security against the right of hire and fire of the employee.
STATUTORY DEFINITION OF TRADE UNION
The statutory definition of the term ‘trade union’ in India is borrowed from the British Trade
Union Acts of 1871, 1875 and 1913.
According to Indian Trade Unions Act 19267, 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.
Provided 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

(iii) Any agreement in consideration of the sale of the goodwill of a business for instruction in
any profession, trade or handicraft.
The analysis of the definition of the trade union clearly shows that the purpose of trade union is
to maintain balance, harmony in the relations of the persons involved in industrial activity such
as process and production. The purpose of the trade union is not only to secure harmony between
employers and workmen but also it is intended to improve peaceful relations between employers
and employees.8

6
Information Technology Act,2000.,available at:- https://www.marxists.org/archive/deutscher/1950/soviet-trade-
unions/ch02.htm (last visited 12th Nov.2019)
7
The Indian Trade Unions Act, 1926, Sec.2(h)
8
Dr. V.G. Goswami, Labour & Industrial Laws, p. 836,(Central Law Agency,Allahabad, 20 th Ed.2015).

2
OBJECTIVES OF TRADE UNIONS9.

 To improve the economic lot of employees by securing for them better wages.
 To secure better working conditions for the workers.
 To secure bonus for the employees from the profit of the concern,
 To resist schemes of the management which reduce employment, e.g., rationalization and
automation.
 To secure welfare of employees through group schemes which give benefit to every
employees.
 To protect the interests of employees by taking active participation in the management.
 To secure social welfare of the employees.
 To secure organisational stability, growth, and leadership.

FUNCTIONS OF TRADE UNIONS.

The important basic functions of unions listed by National Commission on labour are 10:-
(i) To secure fair wages to workers.

(ii) To safeguard security of tenure and improve conditions of service.

(iii) To enlarge opportunities for promotion and training.

(iv) To improve working and living conditions.

(v) To provide for educational, cultural and recreational facilities.

(vi) To co-operate in and facilitate technological advance by broadening the understanding of

workers on its underlying issues.

(vii) To promote identity of interests of workers with their industry.

9
Supra note 02
10
Information Technology Act,2000.,available at:- https://www.businessmanagementideas.com/trade-unions/trade-
unions-objectives-functions-formation-regulations-rights-and-liabilities/2489 (last visited 13 th Nov.2019)

3
(viii) To offer responsive co-operation in improving levels of production and productivity,
discipline and high standards of quality and

(ix) To promote individual and collective welfare.

History of Trade Union Movement in India:

In India, Trade Union movement has been considered as the product of industrial development
since the First World War 1914-18. Before the time Indian workers were poor and did not have
strong union to effort legal fight against any exploiters. At that time they used to follow the
guidelines of Government of India’s Factory Act 1881 which was not perfect to protect the
interests of employees. The system of collective bargaining was totally absent. In several
industries, the workers went on strikes every now and then to secure wage increase. In that mean
time, Labour leader Narayan Meghaji Lokkande led a labour movement and formed “Bombay
Mill Hands Association” and succeeded a weekly holiday system for Bombay Mill Owners
Association. In 1918 Trade Union Movement in India became more organized and formed
varieties of unions e.g. Indian Collie or Employees Association, Indian Seamen’s’ Union,
Railway Men’s Union, Port Trust Employees Union etc. Meanwhile Gandhiji formed The
Textile Labour Association in 1920 for fulfilling the demands of spinners and weavers society.
More over the different labour unions and their representatives from all over India met in
Bombay in 1920 and established the All India Trade Union Congress (AITUC) led by Lala
Lajpat Rai. With the days passed, Trade Union Movement in India gradually strengthened and
became national figure in leading of periodic strikes, Gherao, picketing and boycotts etc in
contrary of different work fields for prevention and settlement of industrial disorders. 11
The historic background of Bombay Mill Case of 1920 over which Madras High Court witnessed
Madras Labour Union forbidding by an interim injunction against The Laborers’ strike which
was pondered about some necessary legislation for protecting the sustained Trade Union in India.
As a result Mr. N.M. Joshi, the then General Secretary of All India Trade Union Congress moved
a resolution in the Central Legislative Assembly in 1921 recommending the Government to
introduce legislation for the registration and protection of Trade Union’s existence in India. The
resolution was strongly protested by Bombay Mills Owners and it took a long bed rest on the

11
Abdul Aziz, “Trade Union Movement in India”, P. 08-10, IOSR Journal Of Humanities And Social Science
(IOSR-JHSS), Vol. 20, Jun. 2015.

4
table of the Central Legislative Assembly. While in the year of 1924, many communist leaders
were arrested and prosecuted against aggressive and lengthy strikes. From the period numbers of
Indian working classes including Peasants Party united and demanded Indian government
through the AITUC to pass an act to protect the interest of all India workers group which results
The Trade Union Act 1926 in India. More over different situations in different times formed
many Unions and Federations, which of some as listed below.
All India Trade Union Congress 1920
Red Trade Union Congress 1931,
National Federation of Labour 1933,
Red Trade Union Congress merged with AITUC in 1935,
Indian Federation of Labour 1941 etc.
The Eighteenth Session of the All-India Trade Union Congress led by Suresh Chandra Banerjee,
President of the Congress, was held at Bombay on 28 and 29 September 1940; The session
constituted a landmark in the history of the Indian Trade Union Movement is that it witnessed
the restoration of complete unity in Indian Trade Union from the merging of the National Trades
Union Federation in the All-India Trade Union Congress. A Tripartite Labour Conference was
convened in 1942 to provide common platform for discussion between employees and
employers. Indian National Trade Union Congress (INTUC) was formed in 1947 to settle the
industrial disputes in democratic and peaceful methods.12
Moreover, the Indian Federation of Labour formed in 1949, Hind Mazdoor Sabha in 1948 and
United Trade Union Congress formed in 1949 in the national level and recognized by the
government of India as to serve national and International conference.
Trade Union Movement does not delimit its operation within Bombay vicinity nor Delhi only.
With the passage of time the movement spreads all across the country and convenient groups
welcome the organism of Trade Union Movement from different parts of India. In state of
Assam, the garden men’s forum, Assam Chah Mazdoor Sangha, claims for their minimum wages
from their employers according to the rules of The Plantation Labour Act, 1951, which regulates
the wages of tea-garden workers, their duty hours and the amenities, states that the management
is supposed to provide housing, drinking water, education, health care, child care facilities,
accident cover and protective equipment. The government of Assam has fixed Rs.169 as the

12
Supra note 10

5
minimum daily wage for tea plantation workers and asked the commissioner and secretary of
labour and employment to execute the same in other fields of industry also. But all the tea garden
owners have not equally implemented the rules accordingly as the statement claims. For their
negligence a huge agitation has been sustained at present. On the other hand the apex body
National Council of Central Trade Union is formed in 1971 by unitized of AITUC, INTUC and
HMS (Hind Mazdoor Sabha).13
At present there are 14 Central Trade Unions and various registered Federations like All India
Bank Employees Association, All India Mine Workers Federation etc functioning in various
fields of industries. Thus Trade Union Movement in India has been developed and changed the
scenario over time coping up the situations and conflicts. 14
TEST TO DETERMINE WHETHER A UNION IS TRADE UNION.
It is the principal object of a combination which determines whether the combination is a
Trade Union or not. The Object must be one connected with the regulation of relations
between workmen and employer, etc. or imposition of restrictive conditions on the
conduct of trade or business of its members.
However, a union of any persons will not become a Trade Union if they have the above
mentioned objects. It is also necessary that the combination be formed either of
‘workmen’ or of ‘employers’, i.e the person are equally important, besides the object.
The members of a Trade Union must be ‘Workmen’ of the employer engaged in the
conduct of any trade of business in a commercial undertaking, otherwise the definitions
in Sec.2(g) and 2(h) could not apply to them and they could not raise a “trade dispute”
nor form a “trade union”. In order to attract the provisions of the Act both the conditions,
namely: ‘workmen’ engaged or ‘trade or business’ must be fulfilled.

ILLUSTRATION/CASES
An association of authors and proprietors of a dramatic work, the primary object of which was to
acquire and deal with the interest of its members in their works i.e. to enforce the rights of

13
Id at 12
14
Ibid

6
members but not to impose restrictive conditions on the conduct of their business was held not to
be Trade Union.15

1. Rangaswami v Registrar of Trade Union.16

In this case, the employees of a Raj Bhavan, which included among its members the household
staff, peons, chauffeurs, tailors, carpenters, mistries, gardeners, sweepers, etc. formed themselves
into 'a union called the Madras Raj Bhavan Worker’s Utiion. But the Registrar refused
registration under the Act on the ground that the employees were not workmen engaged in any
industry, tradgog business of the employer.
It was contended on behalf of the petitioners that the term “workmen” under the Trade Unions
Act would include one employed in industry. The definition of the term ‘industry’ given in the
Industrial Disputes Act should be adopted for ascertaining its meaning, as both the enactments
related to the same subject, viz. the betterment of the conditions of labour in the country. The
term ‘industry’ which is defined to include an undertaking would be comprehensive enough to
cover the case of employees like those engaged in services at the Raj Bhavan who systematically
do material service for the benefit of not merely the members of the Governor’s household but
also to visitors and guests as well.
The Court observed and held as follows:
i.) Sec. 2(g) of Trade Unions Act defines ‘workmen’ as all persons employed in trade or
industry. The term ‘trade union’, under Sec. 2(h), contemplates the existence of the employer and
the employee engaged in the conduct of a trade or business. Reading these two sections together,
‘industry’ should be one as would amount to a trade or business Le. a commercial undertaking.

ii.) The term ‘industry’ as defined under Sec. 2(j) of the Industrial Disputes Act, is of Wider
import (“any business, trade, undertaking, manufacture or calling of employers and includes any
calling, services, employment, etc.). Thus, a non-commercial undertaking will come within the
scope of that enactment. However, the object of Industrial Disputes Act is to secure industrial
peace and the object of the Trade Unions Act is to render lawful the organization of labour and to

15
Performing Rights Society v. London Theater of Varities. (1924) AC 1.
16
AIR 1962 Mad 231

7
enable collective bargaining. The benefits conferred by the T.U. Act are to be enjoyed by a
clearly defined category of unions.
Thus, it is doubtful whether the two Acts can be read as pari materia (i.e. as forming one system

and interpreting one in the light of another). The definition of ‘industry’ in the Industrial

Disputes Act should not be used in interpreting the provisions of the Trade Unions Act.

So, It was held that a large number of employees at Raj Bhawan are Government servants who

could not form themselves in a trade union. Further, they could not be said to be employed in a

trade or business carried on by the employer. The services rendered by them were purely of a

personal nature; ‘industry’ should be one as would amount to a trade or business i.e. a

commercial undertaking.

2. Non-gazetted govt. Officer’s Union v Registrar of Trade Unions. 17

In this case, the Tamil Nadu Non-Gazetted Govt. Officer’s Union (including amongst its
members sub-magistrates, Tehsildar, sub-Treasuries, and Home Department) was a service
organisation which has been recognised by the Government and its membership was open as per
its constitution to all Non-Gazetted Govt. Officers employed under the Government of Madras.
It applied for registration under the Trade Unions Act. The Registrar refused registration on the
ground that such an Association of ministerial employees of the Administrative Departments of
Govt. Offices could not Claim to be a Trade Union at all.

The Madras High Court also held that Government servants cannot form a Trade Union. It held
that the very term of Sec. 8 are that the Registrar has to register the union “on being satisfied that
the Trade Union has complied with all the requirements of this Act.’.’ This shows that where the
definitions under Sec. 2(g) and 2(h) are themselves inapplicable to the so called union, the
Registrar has every power to decline the registration.

The Court observed and held as follows:

17
AIR 1962 Mad 234

8
(i) The civil servants engaged in the task of sovereign and regal aspects of the State are not
‘workmen’ within the meaning of the Act. However wide the term “trade” might be, the
Supreme Court has approved of the dictum that those activities of the Government which should
be properly described as legal or sovereign activities were outside the scope of “industry”. These
are functions which a constitutional Government can and must undertake for governance, and
which no private citizen can undertake.18 Regal functions are inescapable and inalienable. Such
are the legislative power, the administration of laws, the exercise of judicial power. 19
(ii) However, independent corporations (quasi governmental agencies) or subsidized
undertakings, which are purely industrial in character, would be industrial undertakings, e.g.
Machine Tool Factory, Insurance Corporations, etc.
(iii) Further certain welfare, educational or ameliorative departments of Government might or
might not, be regarded as liable to exclusion; the employees in those departments might or might
not be regarded as “workmen” in an “industry”.
(iv) The concept of ‘collective bargaining’, which is the rationale behind the Trade Union
movement, is wholly inappropriate to Government servants whose terms and conditions of
employment are regulated by statute, and it is obvious that statute cannot be altered by contract.
Thus, government servants do not have freedom of contract.
(v) Further, it would become a grotesque anomaly that if civil services, for instance, were
permitted to raise a “trade dispute” with regard to the dismissal of a civil servant it may be for
the activities against the State itself, and at the same breath to claim that the constitutional
safeguards under Art. 311, which are wholly irrelevant to the field of contract and to the
employer-labour nexus, should be maintained intact for the benefit of the civil services.
(vi) Another reason why government servants cannot form Trade Union is that Sec. 22 of the
T.U. Act allows permeation by outsiders and Sec. 16 allows participation in political activities,
both of which are not relevant to government servants.
3. Registrar or Trade unions v Government Press Employees Union, Pondicherry. 20
In this case, the issue was whether the workmen represented by the Government Press
Employees’ Union, Pondicherry, are persons employed in “trade” or “industry”?

18
State of Bombay v Hospital Mazdoor Sabha. AIR1960 SC 610
19
Nagpur Corpn.V.Its Employees. AIR 1960 SC 675.
20
1976 Lab IC 280 (Mad)

9
The Registrar refused registration on the ground that the functions of the aforesaid Press do not
come within the meaning of trade or business. The employees in the Government Press being
Government servants were disentitled to form a trade union and therefore, their association was
ineligible for registration,
The High Court held that the workmen employed in an industrial undertaking like the
Government Press, Pondicherry are ‘workmen’ entitled to the benefits of Trade Union Act, 1926.
It was held that it is wrong to interpret the word ‘industry’ used in the Act of 1926 in the light of
the widely extended meaning to it by the Industrial Disputes Act, 1947. According to the
Concise Oxford Dictionary, ‘industry’ means(1) diligence, (2) habitual employment in useful
works, (3) branch of ‘trade’ or ‘manufacture.’
‘Manufacture’ according to the same dictionary means “making of articles by physical labour or
machinery especially on large scales; branch of such industry as woollen, etc.” It would be clear
from this dictionary meaning of the words ‘industry’ and ‘manufacture’ that no profit motive is
necessarily involved in an industry. There can be little doubt that the Government Press has been
manufacturing with the aid of printing press, as well as physical labour, and on a large scale,
such as challans, gazettes and calendars, budget papers, etc. It would, therefore, be an industry
within the meaning of the Trade Union Act, 1926, and the respondents being the persons
employed in such an industry must be rightly regarded as ‘workmen’ within the meaning of the
Act.
It was further held that “the only reasonable construction to put upon the several provisions of
the Trade Union Act, 1926 is that all workmen employed in any trade or industry, regardless of
the fact whether the trade or industry is being conducted by a Government or a private agency
are entitled to combine themselves into a trade union and to get it registered.” This conclusion,
which can be independently arrived at, is reinforced by the Amending Act of 1947, under which
the intention of the Parliament was to bring an industry carried on by or under the authority of
the Central Govemment/Provincial Government or the Head of the Department, within the
provisions of the Act of 1926 ( Though this amendment has not come into force yet).

10
4. Tirumala Tirupati Devasthanam v. commr. of labour.21
In this case, the employees working in Power and Water Works Wings of the appellant-
Devasthanarn had applied for registration of their association under the Trade Unions Act, 1926
which application was allowed. However, the appellant-Devasthanarn thereafter made an
application under Sec. 10 of the Act for cancellation of the registration of the said Union. The
Registrar rejectd the application.
The appellant contended that since the Water and Power Wings of the appellant were not an
industry, no union of the employees working in them could have been registered as a Trade
Union. The High Court found that they were an ‘industry’ and thus the certificate granted to the
Union was not liable to be cancelled. The High Court held that the persons employed in T.T.
Devasthanam, a public religious institution, administered under the A.P. Charitable and Hindu
Religious Institution and Endowment Act, 1966, can register themselves into a Trade Union. It
was held that though the essential character of Institution is religious, it has to maintain several
departments such as Electricity and Water Department to cater to the needs of the pilgrims; such
departments being ‘industry.’
The Supreme Court held: It would be apparent from the definition of “trade union” that any
group of employees which comes together primarily for the purpose of regulating the relations
between them and their employer or between them and other workmen may be registered as a
trade union under the Act. The registration of the association of the said workmen as a trade
union under the Act has nothing to do with whether the said wings of the appellant are an
industry or not. Thus, the workmen concerned are entitled to get their association registered
under the Act.

21
1995 Supp. (3) SCC 653

11
CONCLUSION
Trade unions play on important role in any organization it helps in managing the welfare
activities of the employees with the help of trade union the management or the employees are in
link with each other. It helps in promoting the aims, ideas, needs & dissatisfaction of the
employees to the top management without the trade union the management would never be able
to commercial with the employees & would directly affect the group of the organization. While
the support of the trade union are able to get fair wages, good working condition, avoid
gatevaness, participation in the decision making process. It helps in promoting the satisfied with
the education facility provided by the trade union for their member & family.
It helps in maintaining & managing with the trade union policy of in this company.
SUGGESTIONS
Trade union should try to improve through following suggestions :
 Should promote international trade union unity among the trade unions of public & allied
employees.
 Should support the struggle for the improvement of the social, economic professional
situation of public employment & for the fulfillment of their demands.
 Should defend the democratic & trade union right & liberates of public employees & to
workers for their extension.
 Should activate the workers common struggle against the penetration & application of
new terminologies.

Should strengthen the role & the importance of the trade union in every social order to safeguard
their duties to fully participate negotiations & to develop their work at all levels.

12
BIBLIOGRAPHY
Books:-
 S.N. Misra, Labour & Industrial Laws, (Cental Law Publication,Allahabad,28 th Ed.2016).
 S.C Srivastava, Industral relationa & Labour Law.,(vikas Publishing House Pvt.Ltd. U.P,
6th Ed.2012.)
 Dr.Ashok K. Jain, Labour Law-I, (Ascent Publication,New Delhi, 2 nd Ed.2015).
 The Indian Trade Unions Act, 1926.
Web Sites:-
 https://www.nidirect.gov.uk › articles › introduction-trade-unions.
 http://www.yourarticlelibrary.com/trade-unions/trade-union-its-meaning-and-definition-
trade-union/26118.
 https://www.marxists.org/archive/deutscher/1950/soviet-trade-unions/ch02.htm.
 https://www.businessmanagementideas.com/trade-unions/trade-unions-objectives-
functions-formation-regulations-rights-and-liabilities/2489.

13