Session 9 Trade Union Act, 1926

Trade Unions Act,
1926
Dr. Subir Bikas Mitra

SESSION-9
Definition
 The Trade Union is an association, either of employees or employers or of independent
workers. It is a relatively permanent combination of workers and is not temporary or
casual. It is an association of workers engaged in securing economic benefits for its
members.
 According to Section 2(b) of the Trade Unions Act of 1926, “a Trade Union is any
combination of persons, whether temporary or permanent, 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 the federation of two or more Trade
Unions.”
 The Trade Unions Act, 1926 provides for registration of Trade Unions with a view to
render lawful organization of labour to enable collective bargaining. It also confers on
a registered Trade Union certain protection and privileges.
 The Act extends to the whole of India and applies to all kinds of unions of workers and
associations of employers, which aims at regularizing labour management relations.
Indian Constitution and Trade Union
 The Right to Freedom of Association is enshrined in the Constitution and guaranteed under the Trade Union Act.
 According to the Article 19(1) (c) of the Indian Constitution, all citizens have the right to form associations or
unions or co-operative societies.
 As per Section 5 of The Trade Union Act, 1926, a Trade Union must get registered by depositing the application to
the Registrar, along with a copy of the rules of the Trade Union and a statement containing following particulars:
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.
 The Registrar, on being satisfied that the Trade Union has complied with all the requirements of this Act in regard
to registration, shall register the Trade Union under Section 8, by entering in a register and issuing the registration
certificate in the prescribed form which is the conclusive evidence that the Trade Union has been duly registered under
this Act.
 As per Section 25, a written notice, signed by the Secretary and seven members, is submitted to the Registrar for
change in the name or for amalgamation of the Trade Unions.
Characteristics of Trade Unions
• Association of employees: A Trade Union is essentially an association of employees belonging to a particular class of
employment, profession, trade or industry. For example, there are unions for teachers, doctors, film, artistes, weavers,
mine workers and so on.
• Voluntary Association: An employee joins the Trade Union out of his free will. A person cannot be compelled to join a
union.
• Permanent Body: A Trade Union is usually a permanent body. Members may come and go but the Trade Union
remains.
• Common Interest: The member of a Trade Union have certain matters of common interest-job security, better pay
and working conditions and so on, which bring them together.
• Collective Action: Even when an individual employee has any grievance over certain management decisions, the matter
is sorted out by the intervention of the Trade Union.
The Trade Union seeks to improve relations between the employees and employers. The officials of the Trade Union hold
talks with the members of the management concerning the problems of the employees in order to find an amicable solution.
It is thus possible for the employees to have better rapport with the management.
Need for Trade Unions
Workers join Trade Unions to achieve certain objectives that they may not be able to
achieve in their personal capacity.
 Engaging in collective agreements with the administration ensures that workers
and employees have improved working conditions.
 Providing workers with protection and monitoring employee hiring and firing.
 Assisting management in the proper level of worker grievance remedies.
 Referring a disagreement or issue to arbitration if it is not resolved.
 Discuss management issues, including working hours, extra compensation, pay,
and access to healthcare and other social programmes.
 To foster collaboration with employers.
 To stir up support for labour and workers in the general public.
Purpose of Trade Unions
 A group’s contribution is much larger than an individual’s so are the effects of its
withdrawal. An individual may not be able to organize and defend his interests as well as a
group can. Therefore workers saw the advantages of organizing themselves into groups to
improve their terms and conditions of employment. Employers also found it advantageous to
deal with a group or a representative of a group rather than go through the process of
dealing with each individual over a length of time.
Precisely, the major objectives of Trade Union are the following:
 Better wages
 Better working conditions
 Protection against exploitation
 Protection against victimization
 Provide welfare measures
 Promote industrial peace
 Take up Collective Bargaining
 Look after the interest of trade
Nature and Scope of Trade Unions
The employer’s association or professional bodies were not included in any of the
above definitions. The employee’s unions are different from that of the employers
or professional bodies. The employee’s unions are primarily concerned with the terms
and conditions of employment of their members. The employer’s associations on the
other hand are concerned among other things with influencing the terms of purchase
of services in favors of their members.
Hence, the two should not be placed in one category. The associations of
professional members also differ fundamentally from employees unions.
Professional associations include self employed as well as the employees where as
Trade Unions consist only of the people who are employed by others.
In India the term Trade Union refers besides employee’s organizations to employers
association also. Similarly in Britain, even the associations of professional people such
as Artists Federation or Musicians Unions are also recognized as Trade Unions.
Continued
 Thus Trade Unions are a major component of the modern industrial
relation system. A Trade Union of workers is an organization formed by
workers to protect their interests. i.e. improve their working conditions etc.
All Trade Unions have objectives or goals to achieve, which are contained
in their constitution and each has its own strategy to reach those goals.
 Trade Unions are now considered a sub-system which seeks to serve the
specific sub-groups interest and also considers itself a part of the
organization, in terms of the latter’s viability and contribution to the
growth of the community of which it is a part.
The main objectives of Trade Unions
 To secure for workers fairer wages in the light of cost of living and
the prevailing standards of living.
 To demand the management to provide all the basic facilities
such as lighting and ventilation, sanitation, rest rooms, safety
equipment's while discharging hazardous duties, drinking water,
refreshment, minimum working hours, leave and rest, holidays
with pay, job satisfaction ,social security benefits and other welfare
measures.
 To win recognition for workers that they are equal partners with
management in the task of production.
 To assure the workers a share in the increased profitability of
industry through payment of adequate bonus.
Continued
To ensure security of employment by resisting retrenchment.
To protect workers against exploitation and victimization

by the capitalists
To secure for workers a say in management and industrial

democracy thereby bringing about a new social order.
To protect the larger interest of the society by assisting in the

improvement of trade and industry.
To offer responsive co-operation in improving levels of

productions, productivity, discipline and quality.
To enlarge opportunities for promotion and training.

Functions of a Trade Union
The important basic functions of Unions listed by the National Commission
are:
 To secure fair wages to workers,
 To safeguard security of tenure and improve conditions of service,
 To enlarge opportunities for promotion and training,
 To improve working and living conditions,
 To provide for educational, cultural and recreational facilities,
 To co-operate in and facilitate technological advance by broadening the
understanding of workers on its underlying issues,
 To promote identity of interests of workers with their industry,
 To offer responsive co-operation in improving levels of production and
productivity, discipline and high standards of quality,
 To promote individual and collective welfare.
THANK YOU
Any Queries?

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Session 9 Trade Union Act, 1926

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Trade Unions Act,

Dr. Subir Bikas Mitra

To protect workers against exploitation and victimization

To secure for workers a say in management and industrial

To protect the larger interest of the society by assisting in the

To offer responsive co-operation in improving levels of

To enlarge opportunities for promotion and training.

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