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E-Notes
CLASS & SECTION: BALLB( A,B,C,) & BBALLB (A,B,C) 7TH SEM
SUBJECT NAME : LABOUR LAW-1
SUBJECT CODE : LLB 401
FACULTY : MR. VIVEK TRIPATHI
Unit-1
In a globalised world, it is equally important to protect the interests of
workers along with that of industrialists.
At a time when the Government of India is trying to bring many labour
reforms, it is important to know the history of labour unions, popularly
known as trade unions.
A trade union can be defined as an organised association of workers in a
trade or profession, formed to further their rights and interests. In India,
Trade Unions in India are registered under the Trade Union Act (1926).
Trade unions are interested in the economic and social welfare of the
workers. Labour unions may also have political interests in the larger
society.
Growth of Trade union movement in India was an organic process. It started
towards the tail end of the nineteenth century and continues to date. It
closely follows the development of Industry in India.
In India, now there are more than 16,000 trade unions with a collective
membership of around 1 crore (10 million) labourers.
The growth of labour unions in India can be roughly classified into six
phases.
Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)
Pre-1918: The genesis of the labour movement in India
After the setting up of textile and jute mills coupled with the laying of
railways in the 1850s, worker atrocities started to come to light.
Though the origin of labour movements was traced to the 1860s, first labour
agitation in the history of India occurred in Bombay, 1875. It was organised
under the leadership of S.S Bengalee. It concentrated on the plight of
workers, especially women and children. This led to the appointment of the
first Factory commission, 1875. Consequently, the first factories act was
passed in 1881.
In 1890, M.N Lokhande established Bombay Mill Hands Association. This
was the first organised labour union in India.
Following this, different organisations were established across India.
Features of the labour movements in this era:
•Leadership was provided by social reformers and not by the workers
themselves.
•The movements in this era mainly concentrated on the welfare of workers
rather than asserting their rights.
•They were organised, but there was no pan India presence.
•A strong intellectual foundation or agenda was missing.
•Their demands revolved around issues like that of women and children
workers.
1918-1924: The early trade union phase
This period marked the birth of true trade union movement in India. It was
organised along the lines of unions in the industrialized world.
Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)
The deteriorated living conditions caused by the first world war and the
exposure with the outside world resulted in heightened class consciousness
amongst the workers. This provided fertile ground to the development of the
movement. This period is known as the early trade union period.
Important unions: Ahmedabad Textile Labour Association (1917) led by
Smt. Anasuyaben Sarabhai, All India Postal and RMS Association, Madras
Labour Union led by B.P Wadia etc.
AITUC, the oldest trade union federation in India was set up in 1920. It was
founded by Lala Lajpat Rai, Joseph Baptista, N.M Joshi and Diwan Chaman
Lall. Lajpat Rai was elected the first president of AITUC.
Factors that influenced the growth of the movement:
•Spiralling prices during War and the mass entrenchment of workers that
followed it led to low living standards. Also, the wretched working
conditions added to their woes. Hence, they sought collective bargaining
power through unionisation.
•Development of Home Rule, the emergence of Gandhian leadership and the
socio-political conditions led to the nationalist leadership taking interest in
the worker’s plight. Workers, in turn, was looking for professional
leadership and guidance.• Russian revolution and other international
developments (like setting up of International Labour Organisation in 1919)
boosted their morale.
1925-1934: Period of left-wing trade unionism
This era was marked by increasing militancy and a revolutionary approach.
It also saw multiple split-ups in the movement. Leaders like N.M Joshi and
V.V Giri was instrumental in moderating the movement and further
integrating it with the nationalist mainstream.
AITUC split up multiple times paving way for the formation of
organisations like National Trade Union Federation (NTUF) and All India
Chanderprabhu Jain College of Higher Studies
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Red Trade Union Congress (AIRTUC). However, the need for unity was felt
and they all merged with the AITUC in the next phase.
The government was also receptive to the trade union movement.
Legislations like the Trade Unions Act, 1926 and the Trade Disputes Act,
1929 gave a fillip to its growth. It bestowed many rights to the unions in
return for certain obligations. This period was marked by the dominance of
the left. Hence, it may be referred to as the period of left-wing trade
unionism.
1935-1938: The Congress interregnum
This phase was marked by greater unity between different unions. Indian
National Congress was in power in most of the provinces by 1937. This led
to more and more unions coming forward and getting involved with the
nationalist movement. In 1935, AIRTUC merged with AITUC. Different
legislations were passed by provincial governments that gave more power
and recognition to the trade unions.
The approach of Congress ministries was that of promoting worker interests
while protecting industrial peace. Reconciliation of labour with capital was
seen as an aim, with ministries working towards securing wage rise and
better living conditions. However, many ministries treated strikes as law and
order issues. They used colonial machinery to suppress it. This led to
considerable resentment from the unions.
1939-1946: Period of labour activism
The Second World War lowered standard of living for the workers further
and this led to the strengthening of the movement. The question of war effort
created a rift between the Communists and the Congress. This, coupled with
other issues, led to further split in the movement. However, the movement as
Chanderprabhu Jain College of Higher Studies
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a whole got stronger due to the compounding issues. This included mass
entrenchment post-war and the massive price rise that accompanied it.
Legislations like Industrial Employment Act, 1946 and Bombay Industrial
Relations Act, 1946 contributed to strengthening the trade union movement.
In general, the movements got more vocal and involved in the national
movement.
1947-present: Post-independence trade unionism
It was marked by the proliferation of unions. INTUC was formed in May
1947 under the aegis of Sardar Vallabhbhai Patel. Since then, the AITUC
has come to be dominated by the Communists. Hind Mazdoor Sabha was
formed in 1948 under the banner of Praja Socialist Party. Later on, it came
under the influence of Socialists. Bharatiya Mazdoor Sangh was founded in
1955 and is currently affiliated to the BJP.
Post-independence, trade unions became increasingly tied with party
politics. Rise of regional parties has led to a proliferation in their numbers
with each party opting to create its trade union. However, their influence has
been somewhat reduced after the liberalisation post-1991. Issues like labour
code reforms and minimum wage remains a political hot potato due to the
opposition from the trade union leadership.
Post-independence, India has also witnessed different unions coming
together to address a common issue. These include the crippling railway
strike of 1974 and the Great Bombay textile strike, 1982. However, such
strikes are seen to get less public support post-1991. There is also an
increased focus on informal labour. This is due to the particularly vulnerable
situation of unorganised labour. All major trade unions have registered an
increase in their membership from the unorganised sector.
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Problems faced by the labour movement post Independence
Uneven growth: They are concentrated in the metropolises, largely catering
to organised sector. Rural Agricultural labour and small scale labour are
grossly underrepresented.
Low membership: Trade union membership is growing, but the vast
majority of India’s labour is not part of any trade unions. This reduces their
collective bargaining power.
Weak financial position: Membership fees are set too low (25 paise) by the
Trade Union Act, 1926. They are particularly disadvantaged against
corporate lobbying groups that are flush with cash.
Political leadership: Careerist politicians and vested political agenda mean
that worker interests are sidelined. Since the leadership may not be from the
labour force, they are held captive to party politics. This lead to further
exploitation.
The multiplicity of unions: Bargaining power is diluted and it is easy for
employers to divert the attention of the labour.
Inter-union rivalry: There are conflicts of interest and party politics between
the unions.
The problem of recognition: Employers are under no obligation to give
them recognition. This means that docile unions get recognition and genuine
ones may be sidelined.
Diverse nature of labour: Most unions don’t have properly differentiated
organisational structure to cater to different classes of labour. Eg:
Differences between agricultural, formal and informal labour.
Chanderprabhu Jain College of Higher Studies
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Lack of public support: Especially post 1991, trade unionism is looked
down as an impediment to growth and development. This has led to a
general ebbing of the movement across the country.
Major Labour Unions and their Political Affiliation
All India Trade Union Congress – Communist Party of India.
Indian National Trade Union Congress – Indian National Congress.
Bhartiya Mazdoor Sangh – Bharatiya Janata Party.
Centre for Indian Trade Unions – CPI(M).
Hind Mazdoor Sabha – Samajwadi Party.
Self Employed Women’s Association – Unaffiliated.
Trade Unions Act, 1926 deals with the provisions of the registration of trade
unions. According to section 2 (h) of the Act, “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,
and includes any federation of two or more Trade Unions. Thus, the present
article shall deal with the most important aspect of trade union, and that is
the registration of trade unions.
Appointment of Registrars
According to section 3 of the Act, the appropriate government shall appoint
a person to be the Registrar of Trade Unions for each state, and the
appropriate government shall also appoint as many additional registrars as it
may deem fit to carry out the purposes of the Act.
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Mode of Registration
According to section 4 of the Act, any seven or more members of a Trade
Union in accordance with the provisions of the Act may make an application
apply for registration of the trade union. There are two conditions
subsequent to the same, firstly no trade union of workmen shall be registered
unless at least 10% or 100 of the workmen, whichever is less engaged in the
employment of the establishment are its members on the date of making of
its application and secondly no trade union shall be registered unless on the
date of making of application, minimum seven of its members who are
workmen are employed in the establishment or industry.
Also, such application shall not be deemed to be invalid merely on the
ground that at any time after the date of the application, but before the
registration of the trade union some of the members but not exceeding half
of the total number of persons who made the application has ceased to be
members.
Application for registration
According to section 5 of the Act, every application for the registration of
the 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 addresses of the members making the
application; The name of the trade union and the address of its head office,
and The titles, names, ages, addresses and occupations of the office- bearers
of the trade union. Where a trade union has been into existence for more
than a year, then a copy of the assets and liabilities shall also be submitted
along with the application for registration.
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Provisions to be contained in the rules of a Trade Union
According to section 6 of the Act, a Trade Union shall not be entitled to
registration under the Act unless the executive committee has been
established in accordance with the provisions of the Act and the rules
provide for the following-
The name of the trade union;
The whole of the objects for which the trade union has been
established;
The whole of the purposes for which the general funds of the trade
union shall be applicable;
The maintenance of a list of the members of the trade union;
The admission of ordinary members who shall be persons actually
engaged or employed in an industry with which the trade union is
connected;
The conditions under which any member shall be entitled to any
benefit assured by the rules and under which any fine or forfeiture
may be imposed on the members;
The manner in which the rules shall be amended, varied or rescinded;
The manner in which the members of the executive and the other
office bearers of the Trade Union shall be elected and removed;
The safe custody of the funds of the trade union, an annual audit, in
such manner, as may be prescribed, of the accounts thereof, and
adequate facilities for the inspection of the account books by the
office bearers and members of the trade union, and;
The manner in which the trade union may be dissolved.
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Power to call for further particulars and to require alteration of name
According to section 7 of the Act, the registrar may call for further
information for the purpose of satisfying himself that whether all the
particulars are in accordance with section 5 and 6 of the Act.
In case the trade union applying for registration bears a name identical to
that of an existing trade union and the registrar feels that the name so
resembles that of the other that there are fairs chances of the persons being
misled then the registrar shall ask the trade union applying to change the
name and shall refuse to register the same until such alteration has been
made.
Registration
According to section 8 of the Act, if the registrar thinks that the trade union
has complied with all the provisions of the Act, it shall register the Trade
Union by entering in a register all the particulars in accordance with the
provisions of the Act.
Certificate of registration
According to section 9 of the Act, the registrar shall issue a certificate of
registration to the trade union after registration under section 8 which shall
be conclusive proof that a trade union has been duly registered.
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Cancellation of registration
According to section 10 of the Act, a certificate of registration of a trade
union may be cancelled or withdrawn or an application of the trade union to
be verified in such manner as may be prescribed; where the registrar is
satisfied that the certificate has been obtained by fraud or mistake or the
trade union has ceased to exist or has willfully and other notice from the
registrar contravened any provisions of the Act and if the registrar is
satisfied that a registered trade union ceases to have requisite number of
members.
Appeal
According to section 11 of the Act, any person aggrieved by any refusal to
register a trade union or withdrawal of registration, etc by registrar may file
an appeal where the trade union head office is situated within the limits of a
presidency town to the High Court, or where the head office is situated in an
area, falling within the jurisdiction of a Labour Court or an Industrial
Tribunal, to that court or tribunal as the case may be; where the head office
is situated in any area, to such court, not inferior to the court of an additional
or assistant judge of a principal Civil Court of original jurisdiction as the
appropriate government may appoint.
On an application to the appropriate forum, the court may either dismiss the
appeal or pass an order directing the registrar to take appropriate measures.
The court shall have the same powers of a civil court under Civil
Procedure Code, 1908 and may follow the same procedures.
The highest appeal can be made to the High Court.
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Registered office
According to section 12 of the Act, all communications shall be made on the
registered office of the trade union
Incorporation of registered trade union
According to section 13 of the Act, every registered trade union shall be a
body corporate having a common seal and perpetual succession with power
to acquire and hold movable and immovable property and shall by the said
name sue and be sued.
Conclusion
The presence of trade unions establishes a healthy relationship between the
employer and workmen with a sense of responsibility towards each other.
Trade unions define and channelize the rights of the workers with pressure
on the employer to not deceit them. The registration of Trade Union ensures
that a trade union duly certified and recognized and thereby the provisions
for same are laid down exhaustively in the Act.
Section 2(g) in The Trade Unions Act, 1926
(g) “trade dispute” means 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.
