TRADE UNION

CHAPTER III (SECTION 5-27)

EVOLUTION OF TRADE UNION
The trade unions protect and secure the interest, presenting the collective demands,
grievances of the industrial worker.
Development of trade unions was in sync with the development of the industry in India
In India, the first trade union came up in Bombay, after the establishment of textile
mills in the 1850s. Trade unions came up in Calcutta, with the establishment of Jute
Mills
Though the origin of labour movements was traced to the 1860s, the first labour
agitation in the history of India occurred in Bombay, in 1875. It was organised under the
leadership of S.S Bengali
Sohrabji Shapuri Bengali and C.P. Mazumdar were the leaders and early pioneers of the
labour unions’ uprising
CONT.
The first factory Commission set up in 1875 studied the problems of industrial workers.
Consequently, the first factories act was passed in 1881
First trade union under the leadership of Narayan Meghji Lokhande -‘Bombay Millhands
Association’, founded in 1884, without any funds, office bearers
In 1890, M.N Lokhande established the Bombay Mill Hands Association. ľhis was the first
organised labour union in India.
Some other Trade unions are Ahmedabad Weavers (1895), Jute Mills, Calcutta (1896), Bombay
Mill workers (1897) Union.
The first organized Trade Union in India the Madras Labour Union was established in 1918.
Followed the organizational principles of the industrialized world
The first world war along with increased communication and better awareness of the global players
contributed to the development of the movement
Some important Unions were -Ahmedabad Textile Labour Association (1917), All India Postal and
RMS Association.
All India Trade Union Congress (AITUC) is the oldest trade union federation, founded in 1920,
under the leadership of Lala Lajpat Rai, Joseph Baptista, N.M Joshi and Diwan Chaman Lall.
PHASES OF TRADE UNIONISM
IN INDIA
The first phase covered the period from 1875 to the end of World War I (1918).
This phase was mainly characterized by a humanitarian spirit that was employed by
the friendly societies in dealing with the labour
The second phase began from the end of World War I (1918) and went on till 1947,
the year of India’s independence.
The third phase can be seen from 1947 to now, where apart from basic
rights, social welfare is also being stressed upon
COLONIAL ERA
The British started colonizing the Indian sub-continent in the 1600s and started to set up
factories and mills in India just like the Industrial Revolution in Britain
The main reason why the British found it apt to start industrialization in India was that
India had an abundance of cheap and poor labour along with natural resources and
land for setting up the industries
The cotton mill was established in 1851 in Bombay and first jute mill was established in
1855 in Bengal
Exploitative and pitiable working terms such as working hours, wages and
expelling policies made the labours join hands and unite and protest.
One of the first unrest among labourers can be dated back to the year 1877 when
due to sudden reduction in wages the labourers of Empress Mill, Nagpur organized a
strike.
Factories Commission, 1875 – Factories Commission, 1875 was the first commission set
up which properly inquired into the conditions of the factories and came to the conclusion
that some kind of legal limit was necessary and the Factories Act, 1881 was passed
Factories Commission, 1885 – The Second Commission was set up in 1885 and on the
basis of the inquiry and second Factories Act in 1891 was passed
Royal Commission on Labor, 1892 – The Commission led to imposing of limitations on
working hours in factories.
Factories Commissions and Factories legislations caused no improvement in the working
conditions of the labour class in India.
In 1885 all workers of India had also signed a memorandum with their employers to
provide them with basic minimum working conditions. However, the situation did not
improve
POST WORLD WAR I PERIOD
When World War I broke out there was the sudden diversion of all resources to cater to war
needs and the employers were dependent on the labourers. It then the labourers realized
that the employers need them as much as they need their employers. This gave them a
“bargaining position”.
The first major trade union formed was the Madras Labour Union in 1918 under the
presidentship of Mr B.P. Wadia. This was followed by the formation of the All India Trade
Union Congress in 1920.
With the formation of Trade Unions, the labourers started to organize strikes and protests to
assert their demands such as lowering of working hours, minimum basic wages
Post World War I there was growing agitation against colonial rule. With the passing of the
Trade Union Act, a lot of strikes and protests by the Trade Unions were witnessed.
India also joined the International Labour Organization as a founding member.
 THE BUCKINGHAM MILL
CASE 1921
The 1921 Buckingham and Carnatic Mills strike was a strike by the workers of
Buckingham and Carnatic Mill in the city of Madras. The strike, which lasted from June to
October 1921, caused severe losses to the Madras economy.
The Madras Labour Union was one of the first organised labour unions in India, having been
founded by B.P. Wadia on 3 April 1918. Early union activity took place in the Buckingham
and Carnatic Mill during October–December 1920 when workers struck in protest against
working conditions. The government responded by ordering the police to shoot down striking
workers on 9 December 1920 to bring the strike to a forceful end.
 On 20 May 1921, the workers in the Spinning Department of the Buckingham and Carnatic
Mill refused to work until the management agreed to discuss their wage rise demands. The
protest reached serious proportions when an official strike was declared on 20 June.
Cases were filed against Mr B.P. Wadia who was the President of the Madras Labour
Union that he conspired with workers and went on strike and was restraining trade.
CONT.
Contentions raised by the Employers:-
The strike is illegal because it amounts to a restraint of trade under Section 27 of the Indian Contract
Act.
The strike constituted criminal conspiracy under section 120A of the Indian Penal Code 1860.
The strike also constituted civil conspiracy under civil law.
The Hon’ble Madras High Court granted the injunction to stay the strike on three grounds:
1. There was a valid cause of action in favour of employers.
2. There was a breach of law by the labourers
3. There were losses suffered by the employers due to the actions of the trade union
Until this time there was no legislation which gave legal force/backing to trade unions.
This growing need to have pro-labour legislation led to the passing of the Trade Union Act 1926.
The Preamble of the “An Act to provide for the registration of Trade Unions and in certain respects to
define the law relating to registered Trade Unions”
PRE- INDIAN INDEPENDENCE
Second world war contributed to the trade movement in India.
Legislations like Industrial Employment Act, 1946 and Bombay Industrial
Relations Act, 1946 contributed to strengthening the trade union movement
POST INDIAN INDEPENDENCE
Though the 1926 Act provided for voluntary registration of Trade Unions it did not provide for compulsory
recognition of the Trade Unions by the employers and because it was not compulsory for the employers to
recognize the Trade Unions, they did not recognize them.
The Act was amended in 1947 which provided for compulsory recognition by the employers of the
representative Unions
The first organized Trade Union in India the Madras Labour Union was established in 1918.
Some important Unions were -Ahmedabad Textile Labour Association (1917), All India Postal and RMS
Association.
All India Trade Union Congress founded in 1920, under the leadership of Lala Lajpat Rai, Joseph
Baptista, N.M Joshi and Diwan Chaman Lall.
Emergence of leadership like V V Giri, N M Joshi to moderate the movement , trying to bring it back to
mainstream.
AITUC broke away forming factions – National Trade Union Federation (NTUF) and All India Red Trade
Union Congress (AIRTUC), later they were merged again
POST INDIAN INDEPENDENCE
In the Post-independence the Trade unions were more influenced by regional or
national political affiliations, thereby blurring their own position with respect to the
primary concerns of the workers
Witnessed rapid increase in numbers of trade Unions formed.
Indian National Trade Union Congress was formed in 1947 under the aegis of
Sardar Vallabhbhai Patel.
Hind Mazdoor Sabha was formed in 1948
Bharatiya Mazdoor Sangh was founded in 1955
DURING NATIONAL
EMERGENCY 1975-77
Nationwide Emergency imposed during PM Indira Gandhi’s regime from 1975 to
1977 suspended all the Fundamental Rights including the right to form
associations and right to strike.
Post-Emergency the government had attempted to bring into force an industrial
relations bill which aimed at banning strikes and lockouts in essential industries
and services.
However, the bill was met with strong opposition from different participants,
specifically the trade unions. As a result, the bill was not passed
The trade unions had achieved a bargaining powers by this time and had become
more organized and were able to meet their requirements by negotiations and strikes.
POST LIBERALIZATION
In 1991 the Government decided to open the economy by introducing the “New Economic
Policy” (NEP).
Government’s labour-friendly approach changed to be more investor-friendly.
Due to globalization, there was massive cutting in the workforce and trade unions were
trying hard to save labourers jobs.
With the advent of liberalization in 1991, the industrial relations policy began to change
Now, the policy was tilted towards employers. Employers opted for workforce reduction,
introduced policies of voluntary retirement schemes and flexibility in the workplace also
increased.
The age-old policy of protectionism proved inadequate for the Indian industry to remain
competitive as the lack of flexibility posed a serious threat to manufacturers because they had
to compete in the international market.
SOME OF THE PROBLEMS
WITH TRADE UNIONS
MOVEMENTS
Uneven growth
Low membership
Weak financial position
Political leadership
The multiplicity of unions
CONSTITUTIONAL FREEDOM
TO FORM ASSOCIATIONS
AND UNIONS
RIGHT TO FREEDOM OF
ASSOCIATION
It is a fundamental Right given in the Constitution of India under Article 19(1)(c).
It Proclaims that all citizens shall have the freedom to form associations or unions for a lawful purpose
The right to form associations indicates that several individuals get together and form voluntarily an
association with a common aim, legitimate purpose, and having a community of interest
It is not an absolute Right rather it has certain Reasonable Restrictions like Sovereignty and
Integrity of India, Public Order and Morality.
Madras vs. V.G. Rao
“The right to form associations or unions has such wide and varied scope for its exercise and its curtailment
is fraught with such potential reactions in the religious, political, and economic fields. That the vesting of
authority in the executive government to impose restrictions on such right, without allowing the grounds of
such imposition, both in their factual and legal aspects, to be duly tested in a judicial inquiry, is a strong
element which, in our opinion, must be taken into account in judging the reasonableness of the restrictions
imposed on the exercise of the fundamental right under Article 19 (1) (c).”
CASE LAWS
Madras vs. V.G.Rao: The right to form associations or unions can be restricted only in the interests
of public order or morality. There can be no association or union for an illegal purpose. Nor can there
be an association to further immorality.
O.K.A. Nair v. Union of India, 1976 AIR 1179
The Supreme Court held that the civil employees of the defence establishments, answer the outline of
the members of the soldiers within the meaning of Article 33, and thus they aren’t entitled to form
trade unions. The right to form associations or unions does not carry with it the right to achieve any
objective. Thus, the trade unions have no guaranteed right to effective bargaining.
Like any other Fundamental Right under Article 19, this right to association is also not absolute and is
subjected to regulation in social interest

https://lexpeeps.in/right-to-form-associations-or-unions-different-perspectives/
CONT.
Balakotaih v. Union of India, 1958 AIR 232
The services of the appellant were terminated under Railway Service Rules for his being a
member of the communist party and a trade unionist. The appellant contended that the
termination from service amounted in substance to denial to him of the right to form an
association.
The appellant had no doubt a fundamental right to form an association, but he had no
fundamental right to continue in Government service. Hence, it had been held that the
order terminating his services wasn’t in contravention of Article 19 (1) (c) because the
order didn’t prevent him to continue in Communist Party as a trade unionist.
CONT.
Raja Kulkarni And Others vs The State Of Bombay on 24 November, 1954 AIR 73
It is obvious that the Act imposes no restriction either upon the freedom of speech and
expression of the textile workers or their right to form associations or unions. The statute
lays down the minimum qualification of 15% of membership to enable the Union to be
called a "representative union" so as to represent the interests of the entire body of workers
in their relations with the employers.
It was perfectly reasonable not to allow any other union such as the appellants to interpose
in a dispute on behalf of the textile workers when they did not command the minimum
percentage or when their membership fell below the prescribed percentage.
ILO AND TRADE UNION
ILO on the freedom to form Trade Union or Association
C087 - Freedom of Association and Protection of the Right to Organise Convention, 1948
(No. 87) : India has not ratified this Convention
Convention No.87 concerning Freedom of Association and Protection of the Right to Organize
provides for the right of workers and employers, without any distinction, to establish and join
organizations of their own choosing without previous authorization.
Article 2 to 5, 7,8,9,11
https://www.ilo.org/dyn/normlex/en/f?
p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:312232
C098 - Right to Organise and Collective Bargaining Convention, 1949 (No. 98): India is one
of the country which has not ratified this convention
The major aim to protect the right to organize and to promote voluntary collective bargaining.
The main reason for non-ratification of ILO Conventions No. 87 & 98 is due to certain
restrictions imposed on the Government servants
CONT.
Right of Association (Non-Metropolitan Territories) Convention, 1947 (No. 84):
India is one of the country which has not ratified this convention
Right of Association (Agriculture) Convention, 1921 (No. 11): India is one of the
country which has ratified this convention
Rural Workers' Organisations Convention, 1975 (No. 141): India is one of the
country which has ratified this convention
TRADE UNION SECTION 2(ZL)
It means any combination,
Whether temporary or permanent
Formed primarily for the purpose of regulating the relations
1. between workers and employers
2. between workers and workers, or
3. 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
SECTION 2(ZM) TRADE
DISPUTE
It means any dispute relating to Trade Union
1. Arising between two or more Trade Unions or
2. Between the members of a Trade Union inter se
CRITERIA FOR REGISTRATION
SECTION 6
Any seven or more members of a Trade Union
No Trade Union of workers shall be registered unless at least ten(10%) percent of
the workers or one hundred workers(100), whichever is less, are the members of
such Trade Union on the date of making of application for registration.
SECTION 7: Provisions to be contained in Constitution or Rules of Trade
Union
APPLICATION FOR
REGISTRATION, ALTERATION
OF NAMES AND PROCEDURE
THEREOF SECTION 8
Application may be made either electronically or otherwise, accompanied by following documents-
A declaration be made by an Affidavit;
Copy of the rules of Trade Union
Copy of the resolution by the members of such Trade Union adopting such rules
Copy of resolution – authorizing the applicant to make such application for registration;
Copy of resolution adopted by members of each Trade Unions – meeting separately for agree to constitute
such federation/central organization of such Trade Unions;
Registrar may call for further information and may refuse to the register the same until such
information has not been furnished.
In case of where the name of proposed registered Trade Union is identical with the existing
registered Trade Union - the Registrar shall require the person applying for altering the name of such
proposed Trade Union and may refuse to register the same until such alteration has not been made.
PRE-REQUISITES –
DOCUMENTS SECTION 8
• Prescribed Form for the Application.
• Are the ID proof with Name, Occupations and Addresses of work of at least 7 members mentioned in the
application attached?
• Filling of the Application form completely and correctly
• The form contains the signature details of the secretary
• The form signed by the 7 members of the Trade Union.
• The copy of the rules of the Trade Union attached.
 The registration certificate of the Trade Union attached.
 The Notices of GBM to all members attached
 The resolution copy for Cancellation of Trade Union signed by at least two third of the total number of its
members attached
 The copy of attendance register attached
 Address proof of its head office of the Trade Union mentioned in the application attached.
REGISTRATION OF TRADE
UNION AND CANCELLATION
THEREOF SECTION 9
The Registrar shall, after being satisfied that the Trade Union has been complied
with the provisions of this Code, register such Trade Union, accordingly in the
prescribed register along with the application for such registration
After the order for registration – the Registrar shall issue a certificate of
registration to the applicant Trade Union in a prescribed manner – Conclusive
proof that such Trade Union has been registered under this Code.
The Registrar shall enter the name and other particulars of such Trade Union in
the register maintained
Every Trade Union having validly registered under the Trade Unions Act, 1926,
immediately before the commencement of this Code – shall be deemed to have
been registered under this Code.
CONT.
The certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar, on
the following grounds-
1. On the application of Trade Union
2. On the information received by the Registrar, regarding contravention of the provisions of this
Code or any other rules made thereunder by such Trade Union; or
3. If the Registrar is satisfied that the members of Trade Union fall below 10% of total workers or
100 workers, whichever is less;
4. Provided that the Registrar shall serve a previous notice of not less than 60 days
Cancellation thereof
1. On an order made by Tribunal for cancellation of certificate of registration of such Trade
Union
2. The Registrar, while cancelling the certificate of registration, shall record the reason for doing same
APPEAL AGAINST NON –
REGISTRATION OR CANCELLATION OF
REGISTRATION SECTION 10
Any aggrieved person, may prefer an appeal to the Tribunal
The Tribunal may, after giving reasonable opportunity of being heard to both the
parties – dismiss the appeal or pass an order directing the Registrar to register such
Trade Union and issue a certificate of such registration accordingly or set aside the
order of cancellation of registration of such Trade Union and forward a copy of such
order to Registrar
INCORPORATION OF A
REGISTERED TRADE UNION
SECTION 12
Every registered Trade Union shall
 Be a body corporate by the name under which it has been registered

Have a perpetual succession

Have a common seal with a power to acquire and hold both movable and
immovable properties
Have a capacity to enter into a contract
Having the legal capacity to sue and be sued before the Court of law.
OBJECTS OF GENERAL FUND, COMPOSITION OF SEPARATE
FUND
AND MEMBERSHIP FEE OF TRADE UNION SECTION 15
The general funds of a registered Trade Union shall be spent only on the prescribed objects

A registered Trade Union may constitute a separate fund for which separate payments may be made for the promotion of the civic
and political interests of its members, in furtherance of the prescribed objects.

General fund spending

Salaries to be given to the office-bearers.
The cost incurred for the administration of the trade union
Expenses incurred in the welfare activities of the workers.
Compensation to the worker due to any loss arising out of any trade dispute.
Benefit conferred to the worker in case of unemployment, disability or death. The cost incurred in bringing or defending any
legal suit.
Publishing materials with the aim of spreading awareness amongst the workers.
Education of the workers or their dependents.
Medical Treatment of worker
Taking insurance policy for welfare of worker.
RIGHT TO INSPECT BOOKS OF
TRADE UNION SECTION 19
The office-bearer or any member of the registered Trade Union shall have the right
to inspect the books of account of such registered Trade Union as well as to check
the list of the members thereof, at any time and in the manner provided in the rules
of the Trade Union.
Rights of minor to membership of Trade Union SECTION 20
Any person, attained the age of 14 years and is employed in non – hazardous
industry may be a member of a registered Trade Union subject to the rules of
such Trade Union and shall enjoy all rights of a member and execute all instrument
and acquaintances as provided in the rules
CONT.

Bokajan Cement Corporation Employees’ Union v. Cement Corporation of India, AIR 2004 SC 245
Whether an employee as a result of cessation of employment would lose his right to continue as a member
of the trade union?

The rules of the trade union must mention admission of the member of honorary or
temporary members as office bearers.
No provision in the Constitution of the trade union providing for automatic cessation of
membership on cessation of employment
The membership of a trade union is a valuable right which can be taken away only
within clear parameters of the Act and the Constitution of the trade union
Held that an employee would not cease to be a member of the trade union on
cessation of employment.
SECTION 21
DISQUALIFICATION OF
OFFICE – BEARERS OF TRADE
UNIONS
Duties and liabilities of Office-bearer
1. A registered trade union has a duty to inform the Registrar of Trade Unions by sending a notice to that
effect as to the change of address of the registered trade union
2. The Act imposes on the registered trade union, duty to spend the funds (general fund, political fund),
specifically allotted for the purposes as stated in the provisions of the act.
3. Every registered trade union must submit every year, to the registrar of trade unions,
4. a general statement, audited in the prescribed manner of all receipts and expenditures during the
year ending 31st December
5. an audited statement of its assets and liabilities as on 31st December
6. a statement showing change of office bearers made by the trade union during that year and
7. a copy of the rules of the trade union amended up to date.
8. Any alteration must be submitted to the registrar of trade unions within 15 days of such alteration.
ADJUDICATION OF DISPUTES
OF TRADE UNIONS SECTION
22
Where a dispute arises between
One Trade Union and another; or

One or more workers who are members of the Trade Union and the Trade Union or
One or more workers who are refused for admission as members and the Trade Union; or
 Where a dispute is in respect of a Trade Union which is a federation of Trade Unions and office bearer authorized
in this behalf by the Trade Union

An application may be made to the Tribunal having jurisdiction over the area
where the registered office of the Trade Union is located
RECOGNITION TRADE UNION
SECTION 14: Recognition of negotiating union or negotiating council
Recognised unions have certain rights
the right to raise issues with the management,
right to collect membership fees within the premises of the organisation,
ability to put up a notice board on the premises for union announcement
ability to hold discussions with employees at a suitable place within the premise
right to discuss members’ grievances with employer,
ability to inspect before hand a place of employment or work of its members (u/s 19 of IR
Code), and
nomination of its representatives on committees formed by the management for industrial relations
purposes as well as in statutory bipartite committees
IMMUNITIES
SECTION 16
Ram Chandra Tripathi v. UP Public Service Tribunal & others, 1994 SCC 1044
Contemplation and furtherance of a trade dispute. Incidents to induce some other employee to break a contract.
Interference with the trade, business, or employment of some other person or interference with the right of some
other reason to dispose of his capital or of his labour.
James Robson v. Labour Commissioner, W.P. 15094 of 2020
10% of the amount was deducted from the wages payable by the members of the Union and that, the Union has no
locus to deduct any amount from the wages of its members.
It was seen that, James Robson had signed a Resolution on 28.09.2006 and, he was agreeable to the same
Held that Court cannot go into the question as to whether there was any interpolation or not with regard to
10% deduction in the wages.
As per Section 18 of the Trade Union Act, 1926, it is clear that, only with regard to certain disputes, legal
proceedings are not maintainable in the Civil Court.
In case, Petitioners are aggrieved that, there is an illegal deduction, certainly, it is not with regard to the
furtherance of a trade dispute and Civil Suit is maintainable
CRIMINAL CONSPIRACY IN
FURTHERANCE OF OBJECT OF
TRADE UNION SECTION 17
Roadways Mazdoor Sabha, UP v. State of UP, 2011(3)SCT215(Allahabad)
No officer or member of a registered Trade Union shall be liable to punishment under Section 17 read
with Section 120B(2) of the Indian Penal Code
Unless the said agreement can be considered to be an agreement to commit an offence
Whether an agreement is protected under Section 17 of the Trade Unions Act is essentially a question
of fact to be determined on evidence.
HELD
Section 17 is not a complete bar to the present proceedings.
The question is one of fact which must be decided by a trial on evidence.
Case Dismissed.
CONT.

Rama Vilas Service Ltd. and Ors. vs. Simpson and Group Companies Workers' Union and
Ors., (1979)IILLJ284Mad
Management, practically want to function normally, thereby nullifying the effect of the strike.
Management has tried to regulate staging of demonstrations by the Union
It is not possible to countenance and grant the reliefs prayed for by the Management
But temporary injunction, restraining the Union
From preventing the officers and managerial staff of the plaintiffs or any member or members of
the public entering or leaving the premises of the plaintiffs and
From holding out threats or intimidation, or
Indulging in gherao or wrongful confinement of the officers and managerial staff of the
plaintiffs and other members or members of the public in the premises of the plaintiffs
CONT.
Rookes v. Barnard, 1964 AC 1129
Court held that if there be threats of violence this section gives no protection.
Trade Unions have right to declare strikes and to do certain acts in furtherance of trade
disputes
They are not liable criminally for conspiracy in the furtherance of such acts as the Trade
Union Act permits, but there is nothing in the Act which apart from immunity from criminal
conspiracy allows immunity from any criminal offence
OTHER RELEVANT SECTIONS
SECTION 23
SECTION 24
SECTION 25: DISSOLUTION
When a registered Trade Union is dissolved
Notice of the dissolution signed by the Secretary and seven members of the Trade
Union shall, be sent to the Registrar, within 14 days of such dissolution
The Registrar shall register such notice if he is satisfied that the dissolution has been
effected in accordance with the rules of the Trade Union
The dissolution shall have effect from the date of such registration