The Trade Unions Act, 1926

THE TRADE UNIONS ACT,
1926
UNIT 2
HISTORY OF TRADE
UNIONISM
• 1890
• “Bombay Millhands Association”
• Result of the 1st world war
• The industrial unrest and economic discontent throughout
• Strikes
• The trade union movement in India got impetus by the success
of strikes in India and the world wide uprising of labour
consciousness
• International Labour Organisation 1919
• Pre/post independence progress
DEVELOPMENT OF TRADE
UNION LAW IN INDIA:
Democratic spirit
1920 : High court of Madras in a suit files against the officials of the
Madras Textile Labour Union By Binny & co. granted an injunction
restraining the union officials to induce certain workers to break their
contracts of employment by refusing to return to work. There was
prosecution and imprisonment
Legislative protection was necessary
Mr. N.M. Joshi, General Secretary of All India Trade Union Congress
moved a resolution in the Central Legislative Assembly
The Act was enforced from 1st June, 1927
Importance of Capital and Labour
The original act was amended in 1929: Appeal against decisions
of the Registrar.
Object of Trade Union

1. Ensure Security of Workers
2. Obtain Better Economic Return
3. Secure Power to Influence Management
4. Secure Power to Influence Government
FUNCTIONS OF TRADE
UNION
1. Secure fair wage
2. Security of tenure and conditions of service
3. Promotion and training
4. Educational, cultural and recreational trainings
5. Identity of interests of workers with their industry
6. Improve production, discipline and high standards of quality
7. Working and living conditions
8. Individual and collective welfare
9. Facilitate technological advancement.
INDIAN TRADE UNION
(AMENDMENT) ACT, 1947
• Recognition of Trade Unions
• Union applying for recognition being representative
• 3 month time period- if not fulfilled application to Labour
Court
• Executive of a recognised trade union has the right of
negotiation
• Acts amounting to unfair labour practice: effects if a trade
union is found to be indulged in such activity
• Specific acts are declared to be unfair practices under the
act
TRADE DISPUTE
Section 2(g):
- employment
-Non employment
-The terms of employment
-The conditions of labour, or any person
• There must be differences between the parties
Workmen of D.T.E v. Management of C.T.E 1958: direct or substantial
interest
 The Standard Vacuum Refining Co. v. Their Workmen 1960: labourers
employed through contractors
• Individual Dispute and Trade Dispute

• Employment and non-employment
WORKMAN:
Section 2(g): latter part
i. Workmen means all persons employed in trade or
industry.
ii. It is immaterial that the persons employed in a trade or
industry are not in the employment of the employer with
whom the Trade Dispute arises
TRADE UNION
Section 2(h):
1. Any combination whether temporary or permanent
2. The combination should have been formed for the purposes of
a. Regulating the relation between:
i. Workmen and employers or
ii. Workmen and workmen or
iii. Employers and employers
b. Imposing restrictive conditions on the conduct of any trade or
business. But this Act shall not effect
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or
of instruction in any profession, trade or handicraft.
Sec 3: Appointment of registrars
Section 4: Mode of Registration
Section 5: Application of Registration
Section 7: Power to call for further particulars and to require
alterations of name
Section 8: Registration
- Can there be more then 1 union (rival union)? Is notice
necessary to be served on the others? : Keshoram Rayon
Workers Union v. Registrar of Trade Union 1968
- If the Registrar remains unresponsive for a period more
than 3 months?
- Can a writ be filed against a trade union? Chemosyn (p)

ltd and others v. Kerala Medical Association
- 2 rival groups claiming to be office bearers of union. Can
this be held to be a trade dispute under Section 2(g)?
REGISTRATION OF TRADE UNION
Section 9: Certificate of Registration
- Primary function of a Registrar
Section 10: Cancellation of Registration
- For cancellation wilful contravention is required: Tata
Electric Companies Officers Guild v. Registrar of Trade
Union 1994
- Sec 13: Incorporation of registered Trade Unions.
RIGHTS AND LIABILITIES OF
REGISTERED TRADE UNIONS
Section 17: Criminal conspiracy in trade disputes.
Section 18: Immunity from civil suit in certain cases.
Section 21A: Disqualifications of office-bearers of Trade Unions.
Section 23: Change of name
Section 24: Amalgamation of Trade Unions.
Section 25: Notice of change of name or amalgamation.
Section 27: Dissolution
RECOGNITION OF TRADE UNION
 Sec 28A to 28I: Amendment of 1947
Section 28-C: Recognition by Agreement
Section 28-D: Condition for Recognition by order of a Labour
Court
Section 28-E: Application to and grant of recognition by
Labour Courts
 These sections have not been put into operations

PENALTIES
Section 31: Failure to submit returns
Section 32: Supplying false information regarding trade
unions

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THE TRADE UNIONS ACT,

Object of Trade Union

• Individual Dispute and Trade Dispute

- Can a writ be filed against a trade union? Chemosyn (p)

 These sections have not been put into operations

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