LAWS RELATING TO INDUSTRIAL RELATIONS: THE TRADE UNION ACT , 1926

Compiled byShubham gupta (2008Je0412) Shwetanshu Shekhar(2008Je0425) Dual degree petroleum engg. (4th year)

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. It includes federation of two or more trade unions.

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All India Trade Union Congress (AITUC) Bhartiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) United Trade Union Congress -Lenin Sarani(UTUC-LS)

Social Welfare Period (1875-1918)

The development of industries led to large-scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable workable conditions, the government’s attitude of complete indifference in respect of protection of labour from such evils, on the other.
The industrial unrest grew up as a result of grave economic difficulties created by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action. In 1919 Madras Labour Union was the first Union in India to be formed and established by B. P. Vadia.

Early Trade Union Period (1918-1924)

Left Wing Unionism Period (1924-1934)

Violent and long-drawn-out strikes by unions led to the arrest, prosecution conviction and imprisonment of many communist leaders. Trade Unions act came into force in 1926. In mid-thirties divided labour movement was naturally thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of ‘a platform of unity’. Indian National Trade Union Congress (INTUC) was founded on May 3, 1947 which was later affiliated with International Trade Union Confederation (ITUC).

Trade Unions Unity Period (1935-1947)

Post Independence period (1947-to date)

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To provide for the registration of trade unions and to define laws relating to the register trade unions. Extends to the whole of India. Defines trade unions as ‘any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen and employers for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.’

Any seven or more members of a TradeUnion may apply for registration of Trade Union under this Act however, no trade union of workmen shall be registered unless at least ten percent or one hundred of the workmen, whichever is less, engaged or employed in the industry with which it is connected are the members of such a trade union on the date of the application for registration.

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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; the name of the Trade Union and the address of its head office; 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 such form and containing such particulars as may be prescribed. Where an application has been made 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.

Every registered Trade Union shall maintain the following books & registers to facilitate the audit of its accounts (Section 17, 18 & 20): Register of membership & subscription .  Register of receipts & disbursement of the general fund account .  Minutes book to record the proceeding of all meetings.  Register of stocks, tools & plant to show the furniture, fitting and valuable documents relating to the immovable property of the Union.  Machine numbered subscription receipt book .  Register of receipts and disbursement for the political fund (if exists).  A file of vouchers.

The annual audit of the accounts of any registered Trade Union or Political fund shall be conducted by an auditor authorized to audit the accounts of companies under section 144(1) of the Indian companies Act, 1913.Any document in the possession of the Registrar received from a registered Trade Union may be inspected by any member of the union on payment of a fee of annas eight for each document inspected. The Registrar may supply a copy of any document to a registered Trade Union or a member thereof on payment of annas six for every hundred words or fractional part thereof. The register of Trade Union shall be open to inspection by any person on payment of a fee of annas eight. A registered Trade Union may constitute a separate fund from contribution separately levied for or made to that fund from which payments may be made for the promotion of the civic and political interests of its members.

Trade Unions may constitute separate fund for political purpose as well as general fund. General fund shall be spent on the payment of salaries, allowances of office bearers, for administration of Trade Union. including audit of account, for defense of any legal proceeding or conduct of Trade disputes, for compensation of members for loss arising out of Trade-disputes, allowances to members independents on account of death, old age, sickness accidents or unemployment, on policies of assurance on the lives of members, for provisions of educational, social or religious benefits for members ,Periodical published mainly for discussing questions affecting employers or workers etc. Political fund shall be spent on the prospective conciliate for election as a member of any legislative body, holding of any political meeting distribution of any literature, maintenance of any person who is member of legislative body, registration of electors, etc.

There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending on the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of December. The statement shall be prepared in such form and shall comprise such particulars as may be prescribed. Together with the general statement there shall be sent to the Registrar a statement showing changes of officebearers made by the Trade Union during the year to which the general statement refers together also with a copy of the rules of the Trade Union corrected upto the date of the despatch thereof to the Registrar.

If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any provision of this Act, every office-bearer or, if there is no such officebearer or person, every member of the executive of the Trade Union, shall be punishable with fine which may extend to five rupees and, in the case of a continuing default, with an additional fine which may extend to five rupees for each week after the first during which the default continues. Any person who wilfully makes, or causes to be made, any false entry in, or any omission from, the general statement required shall be punishable with fine.

Trade Union is an important factor of the current society, as it safeguards the basic interest and needs of both the employees as well as employers, by giving better terms and conditions of employment, secured jobs, better wages, favorable working environment which in turn leads to desired profitability.