Trade Union Act 1926: Key Provisions
Trade Union Act 1926: Key Provisions
Trade union act as a pressure creator for factory legislation, for extended
educational opportunities, for removal of social barriers, for securing employment
and are pressures which result in a greater measure of real democracy.
The Advent of Modern Factory System in India has introduced the concept of Trade
Union with a view to reduce the conflict of interest between workers and
employers.
Significance and Objectives of Trade Union-
❖ A trade union is an organized group of workers who strive to help the workers in the
issues relating to the fairness of pay, good working environment, hours of work and
other benefits that they should be entitled to instead of their labour.
❖ It act as a link between the management and workers.
Objectives---
❖ To watch, promote and further the interests, rights and privileges of the workers in
all matters relating to their employment.
❖ To protect the workers from exploitation by management.
❖ To help in maintenance of discipline in organisation/industry.
❖ To ensure the proper implementation of personnel and welfare policies.
❖ To replace managerial dictatorship by worker’s democracy.
❖ To establish industrial peace by improving employees and employers relations.
❖ To act as a best negotiator machinery.
❖ To socialize and nationalize means of production, distribution and exchange.
❖ To ameliorate the economic and social conditions of the working class.
❖ To secure and maintain worker’s freedom of speech, freedom of press, freedom of
association, freedom of assembly, the right to strike and the right to work and
maintenance.
❖ In nutshell, the trade union serve the aims of both workers and management in the
organisation.
Article 19(1)(c) of the Constitution guarantees to all citizens the right to form
associations and unions.
However, such right can be restricted by making suitable legislation under Art. 19
to protect public order and morality.
The Trade Unions Act of 1926 was passed in the year 1926 but it came into
effect in the year 1927. The Act contains the provisions relating to
registration, regulation, benefits, and protection for trade unions.
Definitions-
Section 2(h) 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
➔ workmen and workmen, or
➔ employers and employers, or
➔ for imposing restrictive conditions on the conduct of any trade or
business.
Provided that this Act shall not affect -
As regards registration of a trade union, the Act empowers the appropriate Government
to
They shall work under the superintendence and direction of the Registrar. The
appropriate Government shall specify and define the local limits within which any
additional and Deputy Registrar shall exercise and discharge his powers and functions.
The registration of a trade union can be made under this Section 4, it provides that any
seven or more members of a trade union may by subscribing their names to the rules
of trade union and by otherwise complying with the provision of this Act with
respect to registration, apply for registration of the trade union under this Act.
The section also provides that in case members applying for registration disassociate
themselves from the application, or cease to be members of the union, after the date of
application, but before the registration of the union and their number does not exceed
half of the total number of the persons applying, the application shall not be deemed to
be invalid.
For registration of a trade union, seven or more members of the union can submit their
application in the prescribed form to the Registrar of trade unions.
The application shall be accompanied by a copy of the ‘rules of the trade union’ and a
statement giving the following particulars:
Appeal Section 11--- Any person aggrieved by any refusal of the Registrar to
register a Trade Union or by the withdrawal or cancellation of a certificate of registration
has the right to of appeal within a period specified i.e. 60 days.
Section 12 provides that all communication and notices will be addressed to the
registered office.
● The applicants did not however claim before the Registrar that the employees were
engaged in either a trade or an industry; the claim was that their services could not
be held to be purely domestic services and therefore their union would be entitled
to the benefits of registration under the Trade Unions Act.
● The Registrar was of the view that before a union can be registered, the members
thereof must be connected with a trade or industry or business of an employer, and
that condition not being fulfilled in the present case, the employees could not be
held to be workmen within the meaning of the Act to entitle them to the registration;
the application for registration was rejected.
Question for Consideration--
This is a petition under S. 11 of the Trade Unions Act seeking to set aside the order of
the Registrar of Trade Unions, Madras refusing to register the union of employees of
the Madras Raj Bhavan as a trade union.
CONTENTIONS:
★ The respondents argued that because the activity was not a trade in nature
therefore they cannot be allowed to form Trade Union under the Trade Union Act
1926 by the registrar. Before the union is registered the members must be
connected to any trade or business of the employer. Whereas the activity of
providing domestic help does not fit well in the definition and thus they were not
granted to form union under the Act though they can simply form an association if
wanted.
★ The applicant argued that there is no definition of the term ‘industry’ in the Trade
Union Act and therefore they need to refer to the meaning of Industrial Dispute Act
1947, which define to include an undertaking would be comprehensive enough to
cover the case of employees like these engaged in services at Raj Bhavan who
systematically do material services. For the benefit of not merely the members of
Governor’s household but the visitors and guest as well.
JUDGEMENT: Ramchandra Iyer .
J .
★ Industrial Dispute Act has the objective of securing industrial peace and speedy
remedy for labour unrest. This objective is not applicable in the case. ‘Trade
Dispute’ under the Industrial Dispute Act means the person employed in trade or
industry, whether or not in the employment of the employer with whom the trade
dispute arises. It is obvious that the industry should be one as would amount to a
trade or business, i.e. A commercial undertaking.
★ The Madras High Court held that the employees are not allowed to form union
under the Act as they do not engage in any trade or business.
★ The services rendered to the visitors and the guests were ancillary and personal
services and are indirect to their employer. They are done with certain rules framed
by the government. The services rendered by them were purely of personal nature.
They would not amount to trade and business.
★ The order of the Registrar of Trade Unions rejecting the application of the
petitioners is, therefore, correct.
1. The civil servants are integrated with inalienable and regal functions of the
Government which are sovereign in nature. The functions that are performed by them
cannot be concluded as an ‘Industry’ as per the Industrial Dispute Act, 1947. Therefore,
these civil servants cannot be concluded as ‘Workmen’.
2. Further, sections 2(h) and 2(g) does not apply to these civil servants, therefore they
cannot form a ‘Trade Union’ or claim any dispute as ‘Trade Dispute’
3. Under Article 310 and Article 311 of the Indian Constitution, statutory safeguards are
provided against certain penalties such as removal or reduction in rank of a servant. To
this, the concept of ‘Collective Bargaining’ cannot be applied.
4. The court further held that as per Section 16 and Section 22 of the Trade Union Act
allows permits to form a separate fund for political purposes and office bearers to be
connected with the Industry. However, both of these things cannot be done by
Government Officers. This concludes that Government Servants do not come under this
Act.
The Court agreed with the view of Learned Judge Ramchandra and dismissed the
appeal made by the Non-Gazetted Officers.
In Re Inland Steam Navigation Worker’s Union
(1936)
❖ An application filed before the Registrar for registration of a Union was rejected by
him on the ground that the Union was for all practical purposes the same as
another Union which had been previously declared unlawful under S. 16, Criminal
Law Amendment Act.
❖ The Registrar in passing the order relied on a letter written by the Secretary of the
Union to the Bengal Government in which it was prayed that the ban on the other
Union be raised.
❖ The Registrar appeared to have acted on the letter without giving the Union any
opportunity of explaining the statements made therein.
❖ The Union went in appeal to the High Court under S. 11. The original proceedings
were started by a petition in which the petitioner described himself as the
Secretary of the Union and prayed that a Rule might be issued to the Registrar to
show cause why the order passed by him should not be set aside.
Observation of High Court..
★ High Court held that the functions of the Registrar were limited to seeing that the
requirements of the Act had been complied with and he was not entitled to go into
the question, whether or not the Union in question was the same which had been
declared unlawful.
★ This appeal should be allowed and the matter should be sent back to the Registrar
for him to consider the question as to whether the requirements of the Act, and the
regulations made thereunder, with regard to registration, have been complied with,
or not.
★ If, on the face of the application, the objects and the provisions for carrying them
out are within what is allowed by the Act and the requirements as to registration
have been complied with, he should register; if not, he should decline to register.
The Food Corporation of India Staff Union v. Food Corporation of
KULDIP SINGH, B.L. HANSARIA, S.B. MAJUMDAR, JJ. India & Ors 11995/
Question For Determination-- How the representative character of trade unions be
assessed.
➢ The Apex Court directed the following norms and procedure shall be following
for assessing the representative character of trade unions by the "secret
ballot system":
➢ (i) As agreed to by the parties the relative strength of all the eligible unions by way
of secret ballot be determined under the overall supervision of the Chief Labour
Commissioner (Central) (CLC).
➢ (ii) The CLC will notify the Returning Officer who shall conduct the election with the
assistance of the FCI. The Returning Officer shall be an officer of the Government of
India, Ministry of Labour.
➢ (iii) The CLC shall fix the month of election while the actual date/dates of election
shall be fixed by the Returning Officer.
➢ (iv) The Returning Officer shall require the FCI to furnish sufficient number of copies
of the lists of all the employees/works. The said list shall constitute the voters list.
➢ (v) The FCI shall display the voters list on the notice boards and other conspicuous
places and shall also supply copies thereof the each of the union for raising
objections, if any. The unions will file the objections to the Returning officer, within
the stipulated period and the decision of the Returning Officer shall be final.
(a) give wide publicity to the date/dates of election by informing the unions and by
affixing notices on the notice board and also at other conspicuous places for the
information of all the workers;
(b) print requisite number of ballot papers in the proforma prescribed by the CLC
incorporating therein the names of all the participating unions in an alphabetical
order after ascertaining different symbols of respective unions;
(c) the ballot papers would be prepared in the proforma prescribed by the CLC in
Hindi/English and the concerned regional language;
(d) set up requisite number of polling stations and booths near the premises where the
workers normally work; and
(e) provide ballot boxes with requisite stationery, boards, sealing wax etc.
➢ (vii) The Returning officer shall nominate Presiding Officer for each of the polling
station/booth with requisite number of polling assistants to conduct the election in an
impartial manner. The Presiding Officers and the polling assistants may be selected
by the Returning Officer from amongst the officers of the FCI.
➢ (viii) The election schedule indicating the dates for filing of nominations, scrutiny of
nominations papers, withdrawal of nominations, polling, counting of votes and the
declaration of results, shall be prepared and notified by the Returning Officer in
consultation with the FCI. The election schedule shall be notified by the Returning
Officer well in advance and at least one month's time shall be allowed to the
contesting unions for canvassing before the date of tiling the nominations.
➢ (ix) To be eligible for participating in the election, the unions must have valid
registration under the Trade Unions Act, 1926 for one year with an existing valid
registration on the first day of filing of nomination.
➢ (x) The Presiding Officer shall allow only one representative to be present at each
polling station/booth as observer.
➢ (xi) At the time of polling, the polling assistant will first score out the name of the
employee/workman who comes for voting, from the master copy of the voters' list
and advise him thereafter to procure the secret ballot paper from the Presiding
Officer.
➢ (xii) The Presiding Officer will hand over the ballot paper to the workman/employee
concerned after affixing his signatures thereon. The signatures of the
workman/employee casting the vote shall also be obtained on the counterfoil of the
ballot paper. He will ensure that the ballot paper is put inside the box in his presence
after the voter is allowed to mark on the symbol of the candidate with the inked
rubber stamp in camera.
➢ (xiii) After the dose of the polling, the Presiding Officer shall furnish detailed of total
ballot papers received, ballot papers used, unused ballot papers available etc. to the
Returning Officer.
➢ (xiv) After the close of the polling, the ballot boxes will be opened and counted by
the Returning Officer or his representative in the presence of the representative of
each of the unions. All votes which are marked more than once, spoiled, cancelled
or damaged etc. will not be taken into account as valid votes but a separate account
will be kept thereof.
➢ (xv) The contesting unions through their representatives present at the counting
place may be allowed to file applications for recounting of votes to the Returning
Officer.
➢ (xvi) The result of voting shall the compiled on the basis of valid votes polled in
favour of each union in the proforma prescribed by the CLC and signatures obtained
thereon from the representatives of all the unions concerned as a proof of counting
having been done in their presence.
➢ (xvii) After declaring the results on the basis of the votes polled in favour of each
union by the Returning Officer, he will send a report of his findings to the CLC.
➢ (xviii) The union/unions obtaining the highest number of votes in the process of
election shall be given recognition by the FCI for a period of five years from the date
of the conferment of the recognition.
➢ (xix) It would be open to the contesting unions to object to the result of the election
or any illegality or material irregularity which might have been committed during the
election. Before the Returning Officer such objection can only be raised after the
election is over. The objection shall be heard by the CLC and dispose of within 30
days of the filing of the same. The decision of the CLC shall be final subject to
challenge before a competent court, if permitted under law.
➢ It would be open to the CLC to deal with any situation not covered by the procedure
detailed above. He may do so in consultation with the returning officer and the FCI.
➢ We direct the CLC and the FCI to hold the elections in accordance with the
procedure prescribed by this order. This may be done before April 30, 1995. The
appeal and the writ petition are disposed of in the above terms. No costs.