Introduction and Historical Perspectives

The Trade Union Act, 1926 is the important law related to Trade
Unions in India. Industrial revolution during the 19th century
brought massive changes in England and other western countries.
There are radical changes in every process of manufacturing,
the method of production, shipping, etc.revolution, due to the
IRevolution, which resulted in changes in the social life. Due to
the scientific and technology developments in the Industrial
sector, there was a tremendous growth in every society, that
caused the emergence of two classes, namely the working class
(wage earning class) and the Managerial Class (entrepreneur
class). [1]These two classes had conflicting interests and were
striving hard to achieve the same. The working class claimed
higher wages and better working conditions while the
entrepreneur class demanded maximum production at minimum
wages.

The Industrial Development in Western Countries started

reflecting in this vast country, but at a slow pace. The Trade
Union movement in India has emerged due to Industrial
Revolution, as a result of growing complexities of an economic
structure of the country.[2]Due to the slow pace of industrial
development in this vast country before the first world war, there
was a very slow growth of trade union movements in India.
Instability of labour force, lack of leadership, deprivation of
freedom of expression during the British rule were also the
reasons for the slow rate of growth of trade union movements in
India.[3]

The first organised labour movement in India was in 1884 by

N.M.Lokhande, who was a factory worker in Bombay who
organised an agitation and convened a conference of workers to
make representations to the Factory Commission appointed by
the then British Government to study the conditions of the
working class in factories.

The period between 1904 to 1911 brought in tremendous growth

in trade unionism in India.[4] During this period, the Printers’
Union in Bengal, the Kamgar Hitwardhak Sabha in Bombay and
Postal Clubs in Madras, Bombay and Calcutta were formed.
Ahmadabad Textile Labour Association is an important federation
in the history of trade union movement in India as this was the
first federation of the different occupational unions in the
Ahmadabad textile units. It was formed due to the inspiration
from the father of the nation, Mahatma Gandhiji and had a close
association with him. In 1920, the leaders of Indian National
Congress, due to the necessity brought by the growth of Trade
Unionism, founded the All India Trade Union Congress. It was the
apex organisation with a hierarchical set-up across the nation at
the provincial and regional levels and finally linking the individual
unions. In the year 1920, the AITUC for the first time represented
the Indian Labour at the International Labour Organization.

Shri. N.M. Joshi is the father of modern trade unionism in India,

and he introduced the Trade Union Bill in the Assembly in
1921.[5] There was a struggle for legal recognition of trade
unions in India during that time due to adverse conditions. The
Government was reluctant to pass the bill and finally compelled
to enact the Indian Trade Unions Act, 1926, due to heavy
pressure from the political parties.

Before independence, the attitude of the colonial government was

in favour of the foreign employer and to the protect the interest
of British Business Owners. The British Colonial Government was
acting mechanically in assuring minimum employment conditions
to workers and deciding the merits of labour disputes. After
independence, the Indian Government brought a fair deal to the
working class and passed several labour welfare legislations
conferring rights and benefits to the working class. The Factories
Act, 1948, The Industrial Disputes Act, 1947, The Minimum
Wages Act, 1948, The Payment of Wages Act, 1965, The
Workmen’s Compensation Act, 1923, The Employees Provident
Funds Act, 1952, The Maternity Benefit Act, 1961., etc were
called “Welfare Legislations” as these legislations envisage
welfare of workers.
A Trade Union is a voluntary organisation of the workers in a
specific industry or occupation. Article 19(1)(c) of the
Constitution of India guarantees freedom of association as a
fundamental right and confers the workers, right to combine and
organise for collective action or bargain. However, such a right is
not available for a certain category of jobs. It is due to the
reasonable restriction which can be imposed by the Government
as per the provisions of the Constitution of India.

Government Servants cannot form trade unions under the Trade

Unions Act, 1926 (Tamilnadu N.G.O. Union vs. Registrar of Trade
Unions, LLJ 753 (Mad)).[6]

In various judgments of the Supreme Court of India and

a majority of Industrial Tribunals, held that “a dispute raised by a
dismissed employee/workman will not be treated as an industrial
dispute, unless it is supported by a trade union, registered or not,
or by a body or section of workmen”.[7] Hence, a trade union or
a section or a body of workmen must represent a dispute to be
declared as an Industrial dispute. Or else it will be considered as
an individual dispute.

Registration of a trade union is not mandatory. As the registered

trade unions enjoy various privileges and immunities, it is better
to get the trade union registered. The Indian Trade Unions Act,
1926 is the first legislation in India to register, regulate and
promote trade unions in India. It was amended in 1964, by which
the word ‘Indian’ was omitted and the act was rechristened as
“The Trade Unions Act, 1926”.

Object and Scheme of Trade Union Act, 1926

The main object of the Trade Unions Act, 1926 is to provide

machinery for the registration, regulation and protection of the
rights and privileges of the trade unions. The term ‘trade union’
used in this act is not confined alone to the workers’ union, but
also includes employers’ association as well. The act also
prescribes for what purposes the trade union may spend its
general funds and also give provisions for creating a separate
fund for political purposes. The main object of the act is to ensure
industrial harmony. The members of the registered trade unions
are protected from various civil and criminal liabilities and enjoy
immunities and privileges.

The Trade Unions Act, 1926 has 5 chapters and 33

sections.[8] Chapter I contains Sections 1 and 2. Section 1 gives
primary aspects viz. title, extent and application of the act.
Section 2 defines various terms under this act viz. Trade Union,
Workmen, Trade, Business etc. Chapter II contains Section 3 to
14 and gives provisions for the registration of trade unions.
Chapter III contains Section 15 to 28, dealing with rights and
liabilities of the registered trade unions. Chapter IV contains
Sections 29 and 30, conferring power on the appropriate
government to make regulations regarding the trade unions. By
exercising the power conferred under Section 29 of the act, the
Union Government of India enacted “The Trade Unions
Regulations, 1938”, and the state governments were also
empowered to enact regulations for trade unions of the respective
states. The Chapter V of the act contains Sections 31 to 33 gives
provisions for the penalties and procedure.