LABOUR LAW

INTERNAL ASSESSMENT II

INTERNAL ASSIGNMENT – II

LABOUR LAW

LEGISLATIVE ANALYSIS

The Trade Unions Act,1926

NAME: Harshwardhan Kulsange

DIVISION: E

PRN: 20010125625

COURSE: BA LL.B. (H)

BATCH: 2020-2025

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TABLE OF CONTENTS

INTRODUCTION ……………………..……………........................................……………III

RELEVANCE……………………………………………………….……………………….III

INTERNATIONAL PERSPECTIVE ON THE TRADE UNION LEGISLATION …..……IV

LEGISLATIVE ANALYSIS …………………...………………………………...…………VI

JUDICIAL ANALYSIS……………………........…………………………………………VIII

CONCLUSION……………………………………………………………...………………VII

BIBLOGRAPHY…………………………………………………………………………….XI

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INTRODUCTION

One of the founding items of Indian law, the Trade Unions Act, of 1926, was passed to give
trade unions and their operations official legal recognition and protection. The purpose of the
Act is to protect workers' rights, govern trade union operations, and enable employers and
employees to engage in collective bargaining. The Trade Unions Act, of 1926 is an important
historical and present law that was among the first about work in India.

The main goal of the Trade Unions Act, of 1926, which went into effect on June 1st, 1927,
was to acknowledge employees' rights to create and organize unions to advance collective
action and safeguard their interests. It creates a formal structure for organizing and
negotiating of labour-related issues by outlining the legal framework for trade union
registration, operation, and dissolution. Additionally, the Act lays the foundation for
safeguarding the health and well-being of workers across a range of industries and fostering
positive employer and staff interactions.

RELEVANCE

 Legal Certification: The Act gave trade unions the desperately needed legal
recognition they required to participate in labour negotiations and represent
employees' interests in talks with employers.

 Preservation of Workers' Rights: The Act significantly contributed to the

advancement of workers' rights, equitable treatment, and the avoidance of sexual
harassment in the workplace by establishing the creation and operation of trade
unions.

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 Collective Negotiation: It made it easier for trade unions as well as companies to

engage in collective negotiating, allowing employees to bargain for more pay, better
working environments, and other advantages.

 Promotion of Organizational Harmony: By offering a formal forum for settling labour

disputes and encouraging fruitful communication between labour and management,
the Act helped to promote industrial harmony.

 Encouraging Worker Camaraderie: The Act gave workers the tools they needed to
successfully voice their concerns by encouraging them to band together, foster
solidarity, and take collective action to solve matters about their welfare.

 Establishment of a Regulatory Framework: It created a framework for regulation that

governed trade union activity, making sure that it followed the law and set standards.

 The basis for Later Labor rules: The trade union legislation of 1926 served as a model
for the creation of extensive employment regulations and norms that have developed
throughout time, providing the framework for later labour-related laws in India.

INTERNATIONAL PERSPECTIVE ON TRADE UNION LEGISLATION

International views on trade union regulations varied greatly based on the previous
employment relations, cultural backgrounds, and legal systems of various nations. Many
countries have enacted extensive laws to control collective bargaining and trade unions,
guaranteeing the defence of workers' rights and fostering positive employer-employee
relations. Here are some noteworthy viewpoints and illustrations from throughout the world
on trade union laws:

Europe:

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Significant trade union legacies may be found in nations like Germany, France, and the
Scandinavian countries. They frequently have complex legislation that provides robust rights
to collective bargaining, staff representation on corporate boards, and employee involvement
in decision-making. Trade unions can negotiate collective agreements that span whole
industries in several European nations, guaranteeing fair labour standards and level playing
fields for all workers.

American States:

The labour laws of the United States are complicated and regulate negotiations between
employers and labour organizations. The Wagner Act, commonly known as the National
Labor Relations Act (NLRA) of 1935, safeguards employees' rights to form trade unions and
establishes the legal foundation for labour negotiations. "Right-to-work" laws have been
passed by certain states, which forbid contracts involving employers and trade unions that
require union membership or the payment of dues to be employed.

Great Britain:

Strong labour movements and trade unions have a long history in the UK. One important
piece of law that describes the duties and rights of trade unions, including rules for bargaining
with employers and dispute resolution, is the Trade Union & Labour Relations
(Consolidation) Act of 1992. In recent times, the government of the United Kingdom has
implemented changes to enhance trade union activity visibility and controlling strikes.

Canada:

The federal system in Canada gives provinces the authority to enact labour relations laws.
The foundation for syndication and negotiating collectively at the federal level is provided by
the Canada Labour Code, which also guarantees the safeguarding of the rights of employees
and the use of a variety of procedures to settle labour issues.

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Australia:

One important piece of law that controls trade unions and the collective bargaining process is
the Fair Work Act 2009. It highlights the value of fair labour practices and collective
bargaining while outlining the rights and responsibilities of companies and employees.

LEGAL ANALYSIS

1. Nomenclature and Terms Amendments:

• The Act uses outdated language, such as "workman," which ignores the complexities of
contemporary work arrangements including gig labour and platform-based labour.

• Recommendation: Expand the definitions and wording of the Act to include a wide range of
labour agreements.

2. Act's Scope:

In labour disputes, the Act primarily addresses matters about compensation, benefits, and
working conditions. The new labour legislation covers a broader range of labour-related
concerns, including social security and occupational health and safety, which are not covered
by this statute.

• Recommendation: Expand the Act's scope to include a broad variety of labour-related

issues, aligning it with the goals of the newly enacted labour regulations.

3. Certification Requirements:

• The Act stipulates that a trade union has to have a membership of seven to be established.
This condition may deter smaller worker groups from organizing.

• Recommendation: Lower the bar for minimal membership to support smaller worker groups
in exercising their right to self-determination through the establishment of trade unions.

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4. Disqualifications for Office Bearers:

Trade union executives may face certain exclusions under the Act, albeit it's unclear exactly
what these disqualifications entail.

• Recommendation: Describe the consequences for office holders to make sure that trade
unions' ability to carry out permitted activities is not unduly hampered by their removal from
office.

5. Recognition Mechanism:

By prohibiting employers or government organizations from legally recognizing trade unions,

the Act restricts their influence in labour relations.

• Recommendation: Establish a formal recognition process for trade unions, as this will
enable them to better represent workers and negotiate with employers.

6. Collective Bargaining:

Trade union participation in collective bargaining is not mentioned in the Act.

• Proposal: Clearly define and highlight trade unions' contribution to collective bargaining to
safeguard workers' freedom to negotiate terms and conditions of employment.

7. Dispute Resolution:

• The Act does not provide a defined process for resolving disputes, which typically leads to
protracted and costly disputes.

• Recommendation: Establish a structured framework for dispute resolution to hasten the

settlement of labour issues and foster cohesion in the workplace.

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8. Sanctions and Dissolution Authority:

• The Act gives the government the authority to ban unions and charge fines for a range of
infractions. Nevertheless, not enough measures are in place to stop the misuse of these
abilities.

• Recommendation: To safeguard labour rights, fortify protocols to avert capricious fines and
union dissolution.

9. Weak Enforcement:

Despite the Act's provisions, they are frequently poorly thought out and applied, with lax
fines and enforcement processes.

• Suggestion: Boost enforcement tactics and sanctions to encourage responsibility and

adherence.

JUDICIAL ANALYSIS

Workers in Associated Cement Companies Ltd. v.4. The Indian Supreme Court stressed the
need to acknowledge and defend trade unions' right to participate in collective bargaining in
this significant decision. The Court's ruling emphasized that the ability to bargain collectively
must be a fundamental component of a just and equitable economic system. It was mentioned
that rather than making it harder to exercise this freedom, legal and regulatory frameworks
should make it simpler. The case demonstrated the value of trade unions in maintaining moral
workplaces and defending the rights of workers. The meaning of trade union rights and their
position in the labour market are significantly impacted by this ruling. In the seminal ruling
Mazdoor Sabha v. Indian Iron and Steel Co. 5, the Indian Supreme Court underscored the
importance of trade unions as legitimate representatives of the workforce.

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The Court determined that trade unions deserved recognition for their rightful commitment to
the social justice of workers. The significance of recognizing trade unions as legitimate
institutions that represent the demands of the working population as a whole was highlighted
by this decision. It demonstrated how important trade unions are to promoting equitable
employer-employee relations and safeguarding workers' rights and welfare.

These court rulings show that Indian courts have consistently valued trade unions in
employment relations and social justice.

The rights of trade unions to collectively negotiate and represent their members have been
regularly affirmed by the judiciary, highlighting the significance of legal and regulatory
frameworks that protect and facilitate these rights. Adopting and defending the concepts
outlined in these significant court decisions is crucial when amending the Trade Unions Act
of 1926 to conform to contemporary labour norms. The goal of the changes should be to
make trade unions more effective in upholding the rights of employees and fostering positive
working relationships.

CONCLUSION

The Trade Union Act of 1926 is a welfare law that was enacted to safeguard the human rights
of workers in both the organized and unorganized sectors from cruel treatment. As a result,
the law includes measures for trade union protection, perks, registration, and regulation. The
workers gain as a result.

Because they use collective bargaining to represent the interests and demands of their
members, trade unions are crucial institutions for the development of democracy of every
nation. An essential component of the relationship between employers and their staff is

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collective bargaining. Nevertheless, only recognized trade unions are eligible for collective
bargaining; other trade unions are not.

As a result, the workers have repeatedly demanded forced trade union recognition, which is
not granted under the Trade Union Act of 1926. Trade unions are becoming more powerful
due to the expansion of the media, and they are now major players in the industrial,
agricultural, and other related sectors as well as powerful pressure organizations.

BIBLOGRAPHY

1. Rahul Kapoor, Trade Union in India, Object of the Trade Union Act, 1926 and
Various Short Comings of the Trade Unions in India, 4 Supremo Amicus 393 (2018).

2. T. B. Murray, Trade Unions in Comparative Law, 31 Transactions YEAR 174 (1945)

3. N. Engineer, Trade Unions and Plan Formulation in India, 88 INT'l LAB. REV. 262
(1963).

4. J. L. Gayler, Concerned Activities of Trade Unions in the United States (Concluded),

13 Indus. L. REV. 230 (1959).

5. Srajan Rajpoot, Rangaswami and Anr. Registrar of Trade Unions and Anr., 1 Jus
Corpus L.J. 241 (2020).

6. K. Asmal, The Fairy Wand or the Big Stick - Trade Unions and the Criminal Law, 1
DUBLIN U. L. REV. 63 (1969).

7. Vasu Aggarwal & Pratyush Singh, Need for Exemptions for Trade Unions under
Indian Competition Law, 15 NUJS L. REV. 131 (2022).

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8. Kaushik Banerjee, Role of Indian Trade Unions in Transition of Changes: A
Contemporary Study, 6 NIRMA U. L.J. 103 (2017).

9. Ratul Das, Trade Unions and the Sceptre of Antitrust: Is There a Labour Exemption
in the Indian Constitutional Regime, 3 NAT'l L.U. DELHI Stud. L.J. 69 (2014).

10. Kunal Ambasta, Immunity of Trade Unions for Inducing Breach of Contract: A Study
of the Evolution of English Law and Its Application in India, 3 AM. U. LABOR &
EMP. L.F. [i] (2013).

11. Sujeet Prakash, Political Fund in Trade Union, 2 INDIAN J. INTEGRATED Rsch. L.
1 (2022).

12. Amit Kumar Dutta, Post Economic Reforms and Its Impact on Trade Unions in India
with Special Reference to Its Role and Future, 5 INDIAN J.L. & Just. 267 (2014).

13. David L. Podell & Benjamin S. Kirsh, The Problem of Trade Association Law, 2 St.
JOHN's L. REV. 1 (1927).

14. David L. Podell & Benjamin S. Kirsh, The Problem of Trade Association Law, 62
AM. L. REV. 94 (1928).

15. Shruti Tyagi & Tanya Babbar, Industrial Relations Code, 2020: The Dawn of the
Reformation, 3 INT'l J.L. MGMT. & HUMAN. 1358 (2020).

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