Chanderprabhu Jain College of Higher Studies & School of Law

Plot No. OCF, Sector A-8, Narela, New Delhi – 110040

(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)

SEMESTER: BALLB (A,B,C)& BBALLB (A,B,C) 7TH

NAME OF THE SUBJECT: LABOUR LAW 1
UNIT-I
TOPIC: CONCEPT OF TRADE UNION

FACULTY NAME: MR. VIVEK TRIPATHI

Assistant Professor (Law)
 DEFINITION

• Trade Unions are the groups set-up with the aim of trying to create fairness and job
security in a workplace.
• Section 2(h) of the Trade Union Act,1926 has define a trade union as: “Any
combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relation between workman and workmen or between 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 UNIONS IN INDIA

• Development of modern industry, especially in the Western countries, can be traced

back to the 18th century. Industrial development in India on Western lines, however
commenced from the middle of the 19th century. The first organised Trade Union in
India named as the Madras Labour Union was formed in the year 1918. Since then
a large number of unions sprang up in almost all the industrial centres of the
country. Similarly, entrepreneurs also formed their organisations to protect their
interests.
 FEATURES OF TRADE UNIONS

• It is an organisation formed by employees or workers. II. It is formed on a

continuous basis. It is a permanent body and not a casual or temporary one. III. It is
formed to protect and promote all kinds of interests –economic, political and social-
of its members. The dominant interest with which a union is concerned is, however,
economic. It includes federations of trade unions also. It achieves its objectives
through collective action and group effort
 WHAT ARE TRADE UNIONS?

• Trade unions are organisations that represent people at work. Their purpose is to
protect and improve people's pay and conditions of employment. They also
campaign for laws and policies which will benefit working people.

• Trade unions exist because an individual worker has very little power to influence
decisions that are made about his or her job. By joining together with other
workers, there is more chance of having a voice and influence.
• All sorts of jobs and industries are covered by trade unions. Some unions represent
people who do a particular job or work in a specific industry - for example, the
National Union of Journalists (NUJ), as its name suggests, represents journalists,
and the Union for Finance Staff (UNIFI) is made up of people who do different jobs
in the financial sector.
• Other unions include a mixture of people in different jobs and sectors. The biggest
unions in Britain - the GMB, UNISON and the Transport and General Workers
Union (TGWU) represent people working in a range of different occupations and
industries in the public and private sectors. Often this is because unions have
merged with other unions so that they can increase their membership and their
influence.
 REGISTRATION

• The Registration of a trade union is not necessary. However, upon registration, a

trade union gets several benefits that are not available to an unregistered Trade
Union. The trade union gains recognition in the eyes of the employer, employees
and general public. Hence, a stronger footing for collective bargaining between the
employers and workers.
• In the case of Workers of B and C Co vs Labor Commissioner, AIR 1964 Mad it
was held that a Trade Union can raise or sponsor a trade dispute and represent on
behalf of its members in legal proceedings arising out of a trade dispute. Hence it is
only a registered Trade Union which can espouse an industrial dispute.
• A Registered Trade Union gets immunity from civil and criminal liability for acts
done in pursuance to a trade dispute.
 WHY REGISTER THE UNION?

• Section 13 specifies that upon registration, a trade union gets a legal entity status,
due to which it has perpetual succession and a common seal. It can acquire and
hold movable as well as immovable properties, can contract through agents, can sue
and can be sued. Under section 17, 18, and 19 a registered trade union gets
immunity in certain criminal, civil, and contractual proceedings. However, such
immunity /protection is confined to acts done in contemplation of a trade dispute.
 BENEFITS

• Under section 15 a registered trade union has a right to establish a general fund.
Under section 16, a registered trade union has a right to establish a political fund.
Subscription to this fund is not necessary for a member. Under section 24, trade
unions have the right to amalgamate. Under section 28-F, the executive of a
registered trade union has a right to negotiate with the employer the matters of
employment or non-employment or the terms of employment or the condition of
labor of all or any of the members of the trade union
• The employer shall receive and send replies to letters and grant interviews to such
body regarding such matters. It further provides that the executive is entitled to
post notices of the trade union meant for its members at any premises where they
are employed and that the employer shall provide reasonable facilities for that.
 PROCEDURE

• Section 3 (Appointment of the Registrar) : The appropriate government appoints a

person to be the registrar or trade unions for each state.
• When the prerequisite documentation is completed, the Registrar issues a
Certificate of Registration.
 Mode of registration

• An application must be sent to the Registrar of Trade Unions appointed by an

appropriate government. The application must be made by seven or more persons
who are engaged in the trade or industry in connection to which the Trade Union is
to be formed. All the applicants must subscribe their names to the rules of the
Trade Union and comply with the provisions of this act regarding registration.
• There must be at least 10% or 100, whichever is less, members who are engaged or
employed in the establishment or industry to which it is connected. If more that half
of the persons who had applied for the registration cease to be members of the
union or expressly disassociate themselves from the application, the application for
Registration will be deemed to be invalid.
 IMMUNITIES AVAILABLE TO A REGISTERED TRADE
UNION

• Section 17 confers immunity from liability in the case of criminal conspiracy under
section 120-B of IPC, committed by an office bearer or a member.
• However, this immunity is partial in the sense that it is available only with respect
to the legal agreements created by the members for the furtherance of valid objects
of a trade union as described in section 15 of the act.
• Registered Trade Unions have certain rights to do in furtherance of their trade
disputes such as calling for strike, persuading members to protest, distributing
pamphlets, making speeches to garner support for the union or educate the
employees about any unjust act of the management etc.
 GENERAL FUND

• Section 15 and 16 of the Trade Unions Act, 1926 lay down the provisions relating
to the general fund and political fund respectively.
• General Fund:
• According to Section 15 of the trade unions act 1926, a Registered Union can create
a General Fund.
• Member of the trade union have to contribute, to the general fund.
• The General Fund can be utilized only for the purposes authorized by Section 15 of
the Trade Unions Act 1926.
• Objects-
• a) the payment of salaries, allowances, and expenses to office-bearers of the trade
unions;
 General fund

• b) the payment of expenses for the administration of the trade union, including
audit of the accounts of the general funds of the trade union;
• c) the prosecution or defense of any legal proceeding to which the trade union or
any member thereof is a party, when such prosecution of defense is undertaken for
the purpose of securing or protecting any rights of the trade union as such or any
rights arising out of the relations of any member with his employer or with a person
whom the member employs;
• d) the conduct of trade disputes on behalf of the trade union or any member thereof;
• (e) the compensation of members for loss arising out of trade disputes;
• (f) allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment of such members;
• (g) the issue of, or the undertaking of liability under, policies of assurance on the
lives of members, or (under) policies insuring members against sickness, accident
or unemployment;
 POLITICAL FUND

• h) the provision of education, social or religious benefits for members (including

the payment of the expenses of funeral or religious ceremonies for deceased
members) or for the dependants of members;
• Political Fund
• According to Section 16 of the Trade Unions Act, A Registered Trade Unions can
create a separate fund for the purpose of promoting Civil and political interests of
its members.
• The contribution to political funds must be collected separately. Contribution to the
political fund cannot be compelled or be made as a condition precedent for
admission of a person as the member of the trade union. Even those member who
have not contributed anything to the political fund.
• A registered trade union is not entitled to utilize its general fund or political causes
of its members
• Objects –
• a) the payment of any expenses incurred, either directly or indirectly, by a candidate
or prospective candidate for election as a member of any legislative body
constituted under the Constitution or of any local authority, before, during or after
the election in connection with his candidature or election; or
• b) the holding of any meeting or the distribution of any literature or documents in
support of any such candidate; or
• (c) the maintenance of any person who is a member of any legislative body
constituted under the Constitution or for any local authority; or
• (d) the registration of electors or the selection of a candidate for any legislative
body constituted under the Constitution or for any local authority ; or
• (e) the holding of political meetings of any kind, or the distribution of political
literature or political documents of any kind.
 COLLECTIVE BARGAINING

• It is a technique that has been adopted by union and management to reconcile their
conflicting interests.
• It is called collective because the employees, as a group, select representatives to
meet and discuss differences with the employer. • The negotiations for collective
bargaining require joint sessions of the representatives of labour and management
• In the words of
• Harrison, “It is a process of communication between two institutions which have
both common and conflicting interests.” • Randle, “Collective bargaining has
different meanings for different individuals or groups. Trade Unions, Managements
and the public have divergent views on this process because each is differently
affected by it.” • Richardson, “Collective bargaining takes place when a number of
work people enter into a negotiation as a bargaining unit with an employer or group
of employers with the object of reaching an agreement on the conditions of the
employment of the work people.”
 COLLECTIVE BARGAINING- CHARACTERISTICS

• Two way process

• Agreement & Mutually settling it
• Continuous process
• Group Action
• Flexible
• Fluidity & ample scope for a compromise for a mutual give & take before the final
agreement is reached
• Dynamic & Static
• Not a Competitive process but a Complementary process
• It is an art, an advanced form of human relations.
• It is a device and a procedure used by wage earners to safeguard their interests.
 OBJECTIVES & SIGNIFICANCE

• It is a technique that has been adopted by unions & management for compromising
their conflicting interests.
• It plays a significant role in improving the labour- management relations and in
ensuring industrial harmony.
• It helps in easing out many minor differences and there are many instances in which
even some major disputes are set to be settled without any work stoppage or outside
intervention. It provides a climate for smooth progress.
•It ensures that managements do not take any unilateral decision.
•It develops a sense of responsibility and of self-respect among the workers and is a
guarantee towards wage protection etc.
 BENEFITS OF C.B.

• It provides a method for the regulation of the conditions of employment of those

who are directly concerned about them.
• It provides a solution to the problem of sickness in industry and ensures old age
pension benefits and other fringe benefits.
• It creates new and varied procedures for the solution of the problems as and when
arise-problem which vex industrial relations and its form can be adjusted,
conditions incorporated in the agreement by those who are engaged in a similar
industry.
• It provides a flexible means for the adjustment of wages and employment conditions
to economic and technological changes in the industry, as a result of which the
chances for conflicts are reduced.
• As a vehicle of industrial peace, collective bargaining has no equal. It is the most
important and significant aspect of labour-management relations and extends the
democratic principle from the political to the industrial field.
• It builds up a system of industrial jurisprudence by introducing civil rights in industry.
In other words,. It ensures that management is conducted by rules rather than by
arbitrary decisions
 CASE LAW

• “In K CP, Limited v. Presiding Officer and Ors.”

• In the above said case Court has defined importance of Collective Bargaining.
THANK YOU