The Trade Unions Act

A trade union is a formal association of workers, acting collectively, who

seek to protect and promote their mutual interests through collective
action.
Features
It is an association of employees or employers or of independent
workers
It is a relatively permanent formation of workers
It is formed to secure certain economic benefits to members
It emphasizes joint, coordinated action and collective bargaining
Objectives
Securing economic benefits to members
Improving the working conditions
Protecting members from unilateral acts and disciplinary actions
of management

Fighting against inappropriate personnel policies

Promoting the welfare of members

Improving employer-employee relations

Carrying out negotiations with management in a fair manner

Safeguarding organisational health and the interests of the

industry

Meaning of Trade Union:

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
Definition:
According to Trade Union Act 25 March 1926 section2 (h) , a trade
union means any combination formed for the purpose of regulating
relations between:
a) Employers and employers
b) Employees and employees
c) Employers and employees
Registration of Trade Unions:
1. Every trade union has to be necessarily registered. For the purpose of
registration, the following conditions must be satisfied:
a. There must be 7 or more subscribers for the registration
b. They have to subscribe their names to the rules of the trade
2. The trade union must comply with the provisions of the trade
3. The subscribers must give a notice to the registrar with the following
details:
a) Name of the trade union and its objects
b) The lawful purposes for which the general fund is to be used
c) Maintenance of the list of members
d) Provision of adequate facility for inspection
e) The designation of the post of workers
f) The condition under which the fund benefit goes to the workers

g) The mode of admission of honorary or temporary office bearers

h) The amount of subscription it should not be less than a prescribed
value per worker, per month
i) The mode of amendment of recession of the rules of trade union
j) The method of removal of office bearers
k) The manner of dissolution of the trade union
All the above particulars must be clearly mentioned in the notice to the registrar.
Rights of Registered Trade Union:
1. Every registered trade union is a body corporate by the name under which
it is registered. It has perpetual succession and a common seal with power
to acquire and hold both movable properties and to contract and shall by
the same name sue and to be used.
2. Separate fund for Political Purposes: (Section 16)
A registered trade union may constitute a separate fund from contributions
separately levied. Payment from the fund may be made for the promotion
of the civil and political interests of its members.
A registered trade union may constitute a separate fund from which
payments may be made for the promotion of the civil and political interest
of its members. Such fund can be used in furtherance of the following
objects:
a) The payment of any expense incurred by a candidate for election as a
member to any legislative body or of any local authority, or
b) The holding of any meeting or the distribution of any literature in
support of any such candidate, or

c) The maintenance of any person who is a member of any legislative

body or of any local authority, or
d) The registration of electors or the selection of a candidate for any
legislative body or for any local authority, or
e) The holding of political meetings of any kind or the distribution of
political literature or political documents of any kind
Industrial Disputes
Industrial Dispute means any dispute or difference between:1. Employers, and employers or
2. Employers and Workmen, or
3. Workmen and workmen
Definition
As per Section 2(k) of Industrial Disputes Act, 1947, an industrial dispute
in defined as any dispute or difference between employers and employers,
or between employers and workmen, or between workmen and which is
connected with the employment or non-employment or the terms of
employment or with the conditions of labor, of any person.
Objectives:
To safeguard the interest of labor and management by securing the
highest level of mutual understanding and good-will among all

those sections in the industry which participate in the process of

production.

To avoid industrial conflict or strife and develop harmonious

relations, which are an essential factor in the productivity of
workers and the industrial progress of a country.

 To raise productivity to a higher level in an era of full employment

by lessening the tendency to high turnover and frequency
absenteeism

To establish and promote the growth of an industrial democracy

based on labor partnership in the sharing of profits and of

managerial decisions, so that ban individuals personality may grow

its full stature for the benefit of the industry and of the country as
well.

To eliminate or minimize the number of strikes and lockouts by

providing reasonable wages, improved living and working
conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state

of industrial managements and political government.

Socialization of industries by making the state itself a major

employer

Vesting of a proprietary interest of the workers in the industries in

which they are employed.

Who can raise a Dispute?

Section 2A of the industrial disputes act, 1947, where any employer

discharges, dismisses, retrenches or otherwise terminates the services of an

individual workman, any dispute or difference between that workmen and

his employer

Thus, individual workmen can raise an industrial dispute concerning

matters in the nature of discharge, dismissal, retrenchment or termination

of service

Works committee:

If there are 100 or more workmen in any employment in the preceding 12

months the appropriate government may require an industry to constitute
a Works Committee.

 The committee consists of both the representative of the employers and the
employees.

The representatives of workmen are chosen in the prescribed manner in

consultation with the Trade union the Works committee promotes

measures for securing good relations between the employers and the
workmen

Case Law:

Ramakrishnan Vs Tamilnadu Electricity Board:

It was observed that the object of works committee is to secure industrial

harmony and to promote good relations between an employer and the
workmen

Conciliation:

The appropriate government, by notification in the official Gazette,

appoints conciliation officers. The main duty of conciliation officers is to

promote the settlement of industrial disputes. They may be appointed either

permanently or for limited period

Powers

1. A Conciliation Officer may enter the premises occupied by the

establishment for the purpose of inquiry into any existing or apprehended
industrial dispute.
2. He may call for and inspect any document which considers being relevant
to the dispute.
Praga Tools Ltd. Secuderabad Vs Praga Tools Ltd. Mazdoor Sabha:
If no settlement could be arrived at by the Conciliation Officer, he is not
debarred from making further efforts to bring about settlement between

the management and the workmen. He can induce the parties to come to
a fair and amicable settlement on the matters in dispute.
Thus, the duty of the Conciliation Officer is not judicial but administrative. He
has to investigate the dispute and do all such things as he thinks fit for inducing
the parties to arrive at a fair and amicable settlement of dispute.

Court of Inquiry: (sec 6)

The appropriate government, by notification in the official Gazette,

constitutes the court of inquiry for conducting an enquiry in a dispute. It

consists of one independent person or persons to act as presiding officer.
The members of the court are considered to be the public servants.

Voluntary Arbitration

Section 10-A of the industrial disputes act, 1947 explains about voluntary
arbitration. Section 10 empowers the appropriate government to refer an
industrial dispute to court or tribunal, at any time by order in writing, if it
opines that an industrial dispute either exists or is apprehended.

Section 10 A has been inserted and amended by the industrial disputes

(amendment) act, 1956 and 1964 respectively. It provides a way to

employer and employees to settle their disputes amicably and voluntarily

by way of arbitration. They can now make a reference of disputes
voluntarily to arbitration by an arbitration agreement.

Arbitration- determination of disputes by the decision of one more persons

called arbitrators

Arbitrator- a person, who is appointed to settle the dispute or matter

Labour Court: (sec 7)

The appropriate government constitutes one or more labour courts for

adjudication of industrial disputes relating to any matters specified in the

second schedule to this act.

Such court will look into the matters referred to in connection with
disputes like the application and interpretation of standing orders,
withdrawal of any customary

It has the duty adjudicate upon industrial disputes referred by entering into
such premises

It also enjoys the powers of a civil court

Tribunals:

a. Industrial Tribunals: (sec 7-A)

When the appropriate government feels that any industrial

dispute exists or the parties to an industrial dispute make

representation for settlement, the government may refer the

matters to industrial tribunal.

b. National Tribunals: (Sec 7-B):

When the appropriate government is of the opinion that there

exist an industrial dispute which involves national importance or

it has link with more than one state then it may refer the matter
of the national tribunal.

Lockouts: [Sec.2 (I)]

Lock- out means the temporary closing of a place of employment, or the

suspension of work, or refusal by an employer to continue to employ any
number of persons employed by him

Strike: [Sec.2 (g)]

Strike means- refusal under a common understanding of any number of

such persons to continue to work or to accept employment

Strike and lock-out:

A strike is based on the workers refusing to work in an effort to

accomplish financial and personal gains from their employers

A lock-out is basically the employers refuse the workers the opportunity

to work in effort to force financial redirection and compliance.

Either way, both sides i.e. lock-out and strike are trying to accomplish
goals based on their own needs, and wants

Strike

Lock-out

1. Section 2(q) defines strike

Section 2(i) defines lock-out

2. Strike is the weapon of workers

Lock-out is the weapon of employer

3. Strike means a cessation of work by a Lock-out means the temporary closing of a

body of persons employed in any

place of employment or the suspension of

4. The reasons for strike are generally

Besides economic factors, non-economic

industry

economic factors viz. enhancement

of wages, re-instatement of

retrenched employees, payment of

bonus, house accommodation, etc.

5. There are 2 kinds of strikes legal

and illegal. Again illegal strikes are

work or the refusal by an employer

factors are also involved in lock-out.

Disputes with workers, trade unions,

political interference, harassment against

workers, grudge against the trade union

leaders, etc are the reasons behind lock-out

There are also 2 kinds of lock-outs- legal

and illegal. But there are no different kinds

several kinds, viz. gherao, pen-down, of illegal lock-outs. There is only one illegal
go-slow, etc.

6. Generally, the workers first start

strike

lock-out

Lock-out is declared by employer in

answer to strike