Chanderprabhu Jain College of Higher Studies

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E-NOTES

Class : BA LL.B VII Semester

Paper Code : LLB 401

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Subject : Labour Law

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Faculty Name :

Unit-1
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In a globalised world, it is equally important to protect the interests of workers along with that of
industrialists.
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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.
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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
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Trade Union Act (1926).

Trade unions are interested in the economic and social welfare of the workers. Labour unions may
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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.
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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.

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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.

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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

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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:

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•Leadership was provided by social reformers and not by the workers themselves.
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•The movements in this era mainly concentrated on the welfare of workers rather than asserting their
rights.
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•They were organised, but there was no pan India presence.

•A strong intellectual foundation or agenda was missing.
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•Their demands revolved around issues like that of women and children workers.
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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
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of unions in the industrialized world.

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

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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.

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Factors that influenced the growth of the movement:

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•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
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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.
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1925-1934: Period of left-wing trade unionism
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This era was marked by increasing militancy and a revolutionary approach. It also saw multiple split-
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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.
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AITUC split up multiple times paving way for the formation of organisations like National
Trade Union Federation (NTUF) and All India
Red Trade Union Congress (AIRTUC). However, the need for unity was felt and they all merged with
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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

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of left-wing trade unionism.

1935-1938: The Congress interregnum

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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

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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
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order issues. They used colonial machinery to suppress it. This led to considerable resentment
from the unions.
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1939-1946: Period of labour activism
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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
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the Congress. This, coupled with other issues, led to further split in the movement. However, the
movement as a whole got stronger due to the compounding issues. This included mass entrenchment
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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
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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.

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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.

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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.

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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
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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
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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
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Agricultural labour and small scale labour are grossly underrepresented.

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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.
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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.

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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.

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Inter-union rivalry: There are conflicts of interest and party politics between the unions.

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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
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labour. 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
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 All India Trade Union Congress – Communist Party of India.
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 Indian National Trade Union Congress – Indian National Congress.

 Bhartiya Mazdoor Sangh – Bharatiya Janata Party.

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 Centre for Indian Trade Unions – CPI(M).

 Hind Mazdoor Sabha – Samajwadi Party.

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 Self Employed Women’s Association – Unaffiliated.

Trade Unions Act, 1926 deals with the provisions of the registration of trade unions. According to
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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

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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

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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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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
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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
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date of the application, but before the registration of the trade union some of the members but not
exceeding ha lf of the total number of persons who made the application has ceased to be members.
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Application for registration

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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
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statement of the following particulars 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-

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 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

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 union shall be applicable;
 The maintenance of a list of the members of the trade union;

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 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


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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
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 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
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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;
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 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

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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.

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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

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accordance with the provisions of the Act.

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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.

Cancellation of registration
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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;
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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
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provisions of the Act and if the registrar is satisfied that a registered trade union ceases to have
requisite number of members.
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Appeal
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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
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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.

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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.
According to section 12 of the Act, all communications shall be made on the registered office of the
trade union

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Incorporation of registered trade union
According to section 13 of the Act, every registered trade union shall be a body corporate having a

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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

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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
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exhaustively in the Act.
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Section 2(g) in The Trade Unions Act, 1926

(g) “trade dispute” means any dispute between employers and workmen or between workmen and
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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”
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means all persons employed in trade or industry whether or not in the employment of the
employer with whom the trade dispute arises.
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