THE TRADE UNION ACT, 1926

MANORANJAN DHAL
Contents
• Definitions
• Registration of Trade Unions
• Rights and Liabilities of Registered Trade Union
• Recognition of Trade Union
• Penalties and Procedure
Definitions
• Appropriate Government: Trade union whose
objective is not confined to one state- Central
Government
- Other Trade unions- state government.
• Executive: body to which the management of the
affairs of a trade union is entrusted
• Office Bearers: Includes any member of the
executive thereof except ‘auditor’
• Registrar: A registrar of trade unions appointed by
the appropriate government and includes Deputy
Registrar
 Definitions
• Trade Dispute: 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
Definitions
• Trade Union: Any combination, whether
temporary or permanent, formed primarily for
the purpose of regulating the relations between
employers and workmen or 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.
 Registration of Trade Union
3. Appointment of Registrars: Appropriate
government shall appoint a person to be the registrar
of trade unions for each state
- Also appoints additional or Deputy Registrars.
4. Mode of Registration: Any seven members can
apply for registration
- At least 10% or 100 of the workmen, whichever is less
engaged or employed in the establishment or industry
with which it is connected.
 Registration of Trade Union
5. Application shall be made to registrar accompanied
by a copy of rules and statement of following
particulars
- name, occupation and address of the members
- Name of trade union and address of head office
- Title, name and addresses and occupation of the
office-bearers
- assets and liabilities (if in existence for more than
one year)
 Registration of Trade Union
6. Rules of a trade Union:
- name of trade union
- object of establishment
- Purpose for which general fund will be spent
- Maintenance of a list of members and facilities
for inspection
- Admission of ordinary members
- Payment of minimum subscription
-Rs. 1 per annum for rural workers
- Rs. 3 per annum for workers in unorgnised
sector
-Rs. 12 per annum for in any other case (w.e.f. 9-
1-2002)
 Rules of a trade Union (Contd.)
- Conditions under which any member shall be
entitled to benefits
- Manner in which rules shall be amended
- Manner in which members/executives shall be
removed
- Duration of office bearers (not more than 3 years)
- Custody of funds, annual audit, facilities for
inspection
- Manner in which trade union may be resolved
 Registration of Trade Union
7. Power to call for further particulars and to require
alteration of name
8. Registration
9. Certificate of registration
10. Cancellation of Registration (two months notice)
11. Appeal: High court, labour court or tribunal
12. Registered Office: Change of address to be
communicated within 14 days
Acts not applicable to Trade Unions

• The Societies Registration Act 1860

• The Cooperative Societies Act 1912
• The Companies Act 1956
 LIABILITIES OF REGISTERED TRADE UNIONS
15. Objects on which general funds may be spent:
- payment of salaries, allowances and expenses to
office bearers
- administrative expenses (audit)
- prosecution or defence
- conduct of trade disputes
- compensation of members
- allowance to members
- educational/social/ religious benefits
- publication of periodicals
Political Fund
• To promote the civic and political interests of its
members
Expenses
- Candidature for election
- Holding meeting/political meeting, distribution
of political literature or political documents
Immunity from Criminal Conspiracy
• An office bearer of a registered trade union is not
liable to punishment under sub-section 120(B)
of Indian Penal Code (dealing with criminal
conspiracy) for signing any agreement with
members
• The agreement must not be designed to commit
an offence
Immunities from Civil Suit
• For any act done in furtherance of a trade
dispute to which members are a party
- It is not a breach of contract
- It is not interference in the trade or business or
employment of some other persons
- No immunity if threats, violence or other illegal
means are employed
 Rights and Liabilities of Trade Unions
• Rights of Minor
• Disqualification of office-bearers
• Proportion of office bearers
• Change of name
• Amalgamation of trade unions
• Notice of Change of name and amalgamation
• Returns
Union Recognition
• Management acknowledge and accept a trade
union as representative of some or all the
workers in an establishment or industry and
with which it is willing to conduct discussion on
al issues concerning those workers.
• May be termed as bargaining agent
• Majority union
• Unions having membership less than 50 per cent
as minority union
 Code of Discipline
• Unions claiming recognition should have been
functioning for at least one year after registration.
• Membership should cover at lest 15 per cent workers.
They must be paying union fees for at least three
months during the preceding six months
• For local area union minimum membership of 25 per
cent
• Recognition will not change for a periods of two years
• Union with largest membership should be recognised
• Unions must be following code of discipline
Methods for Determining Union Strength

• Elections by secret ballot

• Check-off Method
• Verification
State Provisions for Recognition
• Bombay Industrial Relations Act, 1946 –
recognition of union in textile, sugar, transport,
silk and banking
• Maharastra Recognition of Trade Unions and
Prevention of Unfair Labour Policies Act, 1972 –
25 % membership
• M.P Industrial Relations Act, 1960 - 25 %
membership and the unions following strike
ballot (two third support)
• Andra Pradesh, West Bengal, and Orissa – secret
ballot
KERALA RECOGNITION OF TRADE
UNION ACT, 2010
• Single union securing >51% vote – sole bargaining agent
• All other union with >15% vote can be also recognised
and be a party to the settlement
• IN the event of no consensus, the sole bargaining agent
will have right to settlement
• Joint Bargaining Council – of all union having >15% vote
with a principal bargaining agent >40% vote. NO
settlement without principal bargaining agent
• Joint bargaining council shall have the right to
participate in any negotiation, discussion or settlement
concerning the workmen employed
 Recognition of Trade Union

• Entitled to negotiate with employers in respect of

matters connected with the employment or non-
employment or the terms of employment or the
conditions of labour of all or any of its members

• Entitled to display notices in any premises where its

members are employed which is facilitated by
management.
Recognition of Central Trade Unions
• Purpose is to represent in the world
organizations and international conferences
Conditions
Minimum five lakhs membership as on March
1997
Must have members from at least four states
Must have membership at least in four
industries
Central Trade Union Organisations (CTUO)
recognised by the Ministry of Labour
1. All India Central Council of Trade Unions (Communist Party of
India (Marxist-Leninist) Liberation)
2. All India Trade Union Congress (Communist Party of India)
3. All India United Trade Union Centre (Socialist Unity Centre of
India (Communist))
4. Bharatiya Mazdoor Sangh (Rashtriya Swayamsevak Sangh)
5. Indian National Trade Union Congress (Indian National
Congress)
6. Indian National Trinamool Trade Union Congress (All India
Trinamool Congress)
7. Centre of Indian Trade Unions (Communist Party of India
(Marxist))
8. Hind Mazdoor Sabha (socialists)
9. Labour Progressive Federation (Dravida Munnetra Kazhagam)
10. SEWA
11. Trade Union Coordination Committee (All India Forward Bloc)
12. United Trade Union Congress (Revolutionary Socialist Party)
Penalties
• Failure to Submit Returns
-every member of executive –Rs. 5
- In continuation – Rs. 5 for each week
- Aggregate fine shall not exceed fifty rupees
-supplying false information – Rs. 500
• Supplying false information regarding trade
union – Rs. 200
Amendments
• Several attempt in 1947, 1950, 1978,1982
• Trade Unions (Amendment) Act, 2001
Requirement of 10 per cent or 100 workmen for
registration
Tenure of office bearer is 3 years
Minimum subscription for rural, unorganised
and other workers
Designation of appellate court
 proportion of outsiders
Debarring council of ministers to hold union
office.
Drawbacks
• Unregistered trade unions can claim criminal
and civil immunities
• Registration not compulsory
• Encouragement to formation of small sized
unions
• No time limit for registration
• Persistence of outsiders
• Light punishments for violations
• Absence of provision for recognition
• No mention of unfair labour practices
Rights of the Registrar
ONGC Workmen’s Association v. State of West
Bengal and others
• Rival group claimed to be office bearers
• Can Registrar examine witness to decide the
case?
Rights of the Registrar
Mukand Iron and Steel Works v. V.G. Deshpande,
Registrar of Trade Union, Bombay
• Can registrar cancel the registrar cancel the
registration for union failing to submit returns?
Rights and Liabilities of Trade Union
Gross v. British Iron and Steel and Kindered
Trade Association
• Member injured by an accident
• Particulars were supplied to union secretary
• Secretary forwarded to the legal advisor of the
union
• Solicitor found no legal case
• After expiry of limitation period member
brought an action against the union
• Claim was union failed to exercise proper care
and diligence in pursuing his claim
Criminal Conspiracy?
West India Steel Company Ltd. v. A. Azeez
• Union leaders obstructed work in the factory for
five hours
• Protest against deputation of workman to work
in another section
• The worker is a trade union leader
Immunities
• Simson and Group of Companies Workers &
Staff Union v. Amco Batteries Ltd.
• Physical interference with free movement of
cars, vehicles and lorries carrying raw materials,
intermediaries, end products into and out of the
factory premises
• Is it justified under Article 19 of the
Constitution? (Article 19: Freedom of speech and
expression, freedom of assembly, right to form
association and union)