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Trade Union Act, 1926

By: Milind Gandhi

INTRODUCTION

TRADE UNION ACT, 1926 is one of the earliest acts relating to labour. It makes provision about the registration of trade unions. Until the trade unions act, 1926 was enacted the workers did not the importance of being an organized force. As there was no collective action, workers were made at the mercy of the employers and had to be contended with the wages. Which each one of them was getting separately, depending upon the negations with the employer. The necessity of this act was that the employers were exploiting the workers and the workers did not have any power, as they were not united. To give the workers their right & power the government came out with act. This act extends to the whole of India. This act has been amended in September 2001. The registration of trade union is not compulsory under the trade unions act, however, only a registered trade union can have the protections granted under the act.

The laws relating to the registration of trade union is contained in the trade unions act, 1926. This act covers the following:

Conditions governing the registration of trade unions.Obligations imposed upon a registered trade union.Rights and liabilities of registered trade union.

DEFINITIONS UNDER THE ACT

TRADE UNION:

Trade union means any combination whether permanent or temporary formed primarily for the purpose of regulating the relations between –

1. Workmen or employees; or

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2. Workmen and workmen; or3. Employers and employers; or4. For imposing restrictive conditions on the conduct

of any trade or business.Trade union includes any federation of two or more

trade unions.The provision for this does not apply to:

1. Any agreement between partners as to their own business.

2. Any agreement between an employer and those employed by him as to such employment; or

3. Any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft

TRADE DISPUTE:

Trade dispute means any dispute between –1. Employers and workmen; or2. Workmen and workmen; or3. Employers and employer;

Which is connected with ----1. The employment or non-employment, or2. The terms of employment,3. The conditions of labour of any person.

The definition of “Trade Dispute” is similar to the definition of industrial dispute in the Industrial Disputes act.

WORKMEN:

The second part of the definition of the trade dispute defines workmen. According to it workmen means “All persons employed in trade or industry whether or not in the employment with whom the trade dispute arises.”

The above definition of trade union contains the following requirements:

1. There should be real or substantial dispute or differences;

2. The dispute or difference must be between-

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a. Employers and workmen or b. Between workmen and workmen orc. Between employers and employers

3. The dispute or difference must be connected with- a. Employment or non-employment orb. Terms of employment orc. With the conditions of labour of any person.

The terms and industry has not been defined in this act. Therefore, if an establishment or an activity falls within the meaning of the word industry the workmen employed in a trade or industry will have a right to form a trade union and get it registered under trade unions act, 1926. The definition of workmen also includes in it a dismissed, discharged, removed or retrenched worker.

THE TRADE UNION ACT AND THE FACTORY

APPLICABILITY OF THE TRADE UNION ACT ON THE FACTORY:

As discussed earlier Trade Union Act, 1926 is applicable to the Trade Unions in the factory or any other establishment who have registered themselves under the Trade Union Act, 1926. As per the law, if an establishment or activity falls within the meaning of the word Industry, the workmen employed in a Trade or Industry has right to form a Trade Union and get it register under the Trade Union Act,1926. Registration of the union under the Act is not compulsory. However it has certain benefits which would be discussed further. The factory visited falls under the meaning of the term industry as well as the Trade Union in the factory has registered themselves under the Trade Union Act,1926. Hence all the rules and regulations as well as the laws related to the Trade Union are to be followed by the factory workmen and employers.

REGISTRATION OF THE TRADE UNION:

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The Trade Union of the VENUS factory was registered under the Trade Union Act, 1926 on 25th of October, 1997. It is a Trade Union of the workmen. As per the rule of naming the Union, the Trade Union of the factory was named as VENUS MAJDUR SANGH. It is known as internal Trade Union and it is recognized and approached by the Factory’s Management.

As per the law, at least seven person or members of the Trade Union have to make application in the prescribed form accompanied by the prescribed fees. And no Trade Union of workmen shall be registered unless minimum 10% or 100 of the workmen, which ever is less, engaged or employed in the establishment or industry with which the Trade Union is connected are its members on the date of making of application for registration.

15 members (including the union leader) of The Trade Union of the VENUS factory (at that time) had subscribed their names to the rules of the Trade Union Act.

The application is to be accompanied by a copy of the rules of the Trade Union. As per the law the application made by the workmen of the VENUS factory accompanied by a statement of the following particulars:

1. Names, occupation and address of the place of work of all the 15 members of the Trade Union.

2. Name of the Trade union and its Head Office.3. Titles, names, ages, address and occupation of the

office bearers.The Trade Union of the VENUS factory already existed

before registration. The Trade Union of the factory was formed much before registration. It existed from around mid 1996 i.e. for more than 1 year before the date of registration. Hence as per the law, during the time of application the Trade Union had to submit a general statement of the assets and liabilities to the Registrar containing the prescribed particulars.

TRADE DISPUTE:

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As per the definition of “Trade Dispute”(mentioned above) it is clear that for a trade dispute, it is necessary that there must be some difference between the parties stated in the definition (employer and workmen) i.e. a demand from one party and refusal to accept those demands by the other party. This difference need not necessarily only between the workmen and the employer. It can be also between employers and employers or even between workmen and workmen.

The formation of trade union rose out of the trade dispute in the VENUS factory. However, much information is not revealed about the nature of the dispute. But the main dispute was between two groups of workers which resulted in formation of Trade Union. The Trade Union formed played a very important role in settling the Trade Dispute. And as mentioned by them there has been no such major Trade Dispute since the formation of the Trade union.

WORKMEN:

As defined earlier workmen plays a vital role in Trade Union. It is clarified in this Act under Section 9-A that a registered trade union of workmen shall at all time continue to have not less than 10% or one hundred of the workmen, whichever is less as its members, subject to a minimum of 7, engaged or employed in an establishment or industry with which the Trade Union is connected. According to Section 21, any person who has attained age of 15 years may be a member of a registered Trade Union.

The Trade Union of the VENUS Factory, at present has all the eligible employees as the member of the Trade Union. i.e. 120 workmen (excluding 7 who are below 15) are members of the Trade Union. However, it is recognized and approached by the factory’s management. All the 120 members pay their minimum subscription fees as per the rule.

APPROPRIATE GOVERNMENT:

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(A) The term Appropriate Government is the Central Government in relation to:

1. an establishment belonging to or under control of central government,

2. in relation to an establishment connected to a railway company,

3. a major port,4. a mine, OR5. an oil field, OR6. a controlled industry, OR 7. In relation to an establishment having

departments and branches in more than one State.

(B) In relation to any other establishment other than those mentioned above, the appropriate Government means the State Government.

In relation to Trade Union whose objects are not confined to one State, it is The Central Government. While in relation to other Trade Unions Appropriate Government means The State Government.

For the VENUS MAJDUR SANGH the appropriate Government is The State Government. .i.e. The Maharashtra State Government. All the rules and regulations in relation to the Trade Union are to be accepted by the Maharashtra State Government.

FUNDS OF THE VENUS MAJDUR SANGH:

As per the information available the amount of the two funds (general and political) are not fixed. Due to some they did not reveal the total funds required and collected for the functioning of the Trade union. However, some of the fields where these funds are utilized are under:

1. Allowances to the member or their dependants on account of death, old age, sickness, accidents and unemployment of the members. As informed a major share of the funds of VENUS MAJDUR SANGH is contributed for this purpose.

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a. Death- approximately a year ago, a workman named Srinivas who was also a member of the VENUS MAJDUR SANGH met with an accident (not during the work) and was severely injured. He was admitted in a Government hospital. As the expenses were high for the individual workmen 40% of the medical expenditure were barred by the Trade Union, 40% by the Factory Management and the rest was barred by the workman.

b. Old Age- few months ago an employee named Sakharam had to retire due to old age. As informed he was serving the VENUS TRADE UNION right from the date of its existence and had played vital role in settling few minor Trade disputes. So at the time of retirement he was given some amount of cash reward which was contributed by the Trade Union.

2. Payment of expenses of the administration of the Trade Union including audit of the accounts of these funds.

3. Expenses on legal proceedings related to the Trade Union. As informed by the respective Authority, till date no such expenses are barred on this matter.

4. Provision of Educational, social or religious benefits for the members or for their dependents, payment of expenses of funeral or religious ceremonies for deceased members. As informed, the Trade Union has settled a rule sort of like to pay all the expenses on the funeral of the deceased member of the Union from the funds of the Trade Union.

PROCEEDINGS AS PER THE RULES OF THE ACT:

As per the rule the Trade Union have to name the newly registered Trade Union. So as mentioned above it was named as VENUS MAJDUR SANGH.

The objects of their Trade Union mentioned were not clearly informed to us.

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The Office Bearers and the members of the Trade Union of the factory has to maintain a list of the members and adequate facilities for its inspection.

Allowing admission of the ordinary members who are actually engaged or employed in the factory with which the Trade Union is connected.

The members of the Trade Union have to pay Rupees Three per year as the payment of a minimum subscription.

The members of the Trade Union have accepted the conditions laid down by the Act, under which any member shall be entitled to any benefit or can be imposed any kind of fine or forfeiture.

The Trade Union at the time of Registration, had also submitted the statement about the manner in which the rules shall be amended, varied or rescinded.

As per the rule, the Trade Union have also priory decided about the manner in which the union will dissolve and have submitted the relevant document at the time of registration.

CASE LAW- TRADE DISPUTE NEWSPAPERS LTD V/S STATE INDUSTRIAL TRIBUNAL, U.P. It was observed by the Supreme Court- an individual dispute cannot “perse” be a Trade Dispute unless the cause is sponsored by a Trade Union or by a substantial number of workmen. Normally this kind of information is not provided to the outsiders. But on much request the respected authority agreed to discuss on the matter. They said few months back a worker name Raghav had problems with working hours and wages paid to him. However it was clear on the part of the management side about the work conditions and wages. The management side was firm on their decision that they cant apply any changes at that point of time. Even the members of the VENUS TRADE SANGH agreed with the management except 3 of the other members including Raghav.

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Further Raghav threatened to lodge a police complaint and warned that he will take the management to the court. But before any such compliant or case were filed the other 2 members declined and did not support Raghav.

But when the Management discussed the matter with their advocate they realized that there are no chances of filing of the case and any legal proceedings under Trade Dispute as the cause was supported/sponsored by Trade Union nor by the substantial number of workmen.

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