An Industrial Law Presentation

8/2/2019 An Industrial Law Presentation

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An Industrial LawPresentation

By-FYBMS (II semester). Rahila Khan (31125) Jackson Lobo (31133) Subhan Khan (31126)

Poornima Kumble (31123) Bhakti (31127) Roja Merala (31132)


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Trade Union Act(1926)


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IntroductionO Trade union is a voluntary organization of workers pertaining to

a particular trade, industry or a company and formed to promote

and protect their interests and welfare by collective action.

O They are the most suitable organisations for balancing andimproving the relations between the employer and the

employees.

O They are formed not only to cater to the workers' demand, but

also for inculcating in them the sense of discipline and

responsibility.


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DefinitionO Section 2(h) of the trade unions act 1926 has defined a trade

union as :

Any combination , whether temporary or permanent, formedprimarily 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.


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Features Of Trade UnionsO It is an association either of employers or employees or of independent workers. They

may consist of :-

O Employers association (eg., Employers Federation of India, Indian paper mill

association, etc.)

O General labor unions

O Friendly societies

O Unions of intellectual labor (eg, All India Teachers Association)

O It is formed on a continuous basis. It is a permanent body and not a casual or

temporary one. They persist throughout the year.

O It is formed to protect and promote all kinds of interests economic, political and

social-of its members. The dominant interest with which a union is concerned is,

however, economic.

O It achieves its objectives through collective action and group effort. Negotiations andcollective bargaining are the tools for accomplishing objectives.

O Trade unions have shown remarkable progress since their inception; moreover, the

character of trade unions has also been changing. In spite of only focusing on the

economic benefits of workers, the trade unions are also working towards raising the

status of labors as a part of industry.


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ObjectivesO To improve the economic lot of employees by securing for

them better wages.

O To secure better working conditions for the workers.

O To secure bonus for the employees from the profit of theconcern.

O To resist schemes of the management which reduceemployment, e.g., rationalisation and automation.

O To secure welfare of employees through group schemeswhich give benefit to every employee.

O To portect the interest of employees by taking activeparticipation in the management.

O To secure social welfare of the employees.

O To secure organisational stability , growth and leadership.


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Registration of Trade union.O The Act provides for the registration of the trade unions with the 'Registrars of Trade Unions' set up

in different States, like the Office of Registrar (Trade Union) set up by the Government of

National Capital Territory of Delhi.

O 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.

O The application shall be accompanied by a copy of the 'rules of the trade union' and a statement

giving the following particulars (section 6) :-

(i) Names, occupations and addresses of the members making the application;

(ii)The name of the trade union and the address of its head office;

(iii) The titles, names, ages, addresses and occupations of the office bearers of the trade union as

per the format given in the Trade Unions Act 1926.

O The Registrar, on being satisfied that the Union has complied with all the requirements of this Act,

shall register the trade union.(section 7)

O Thereafter, it shall issue a certificate of registration in the prescribed form as a conclusive evidence

of registration of that trade Union.

O The registered trade unions (workers & employers) are required to submit annual statutory returns

to the Registrar regarding their membership, general funds, sources of income and items of

expenditure and details of their assets and liabilities, which in turn submits a consolidated return of

their state in the prescribed proforma to Labour Bureau, Ministry of Labour and Employment.


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Rights of Registered Trade unionO A trade union must have a general fund & under section15, its objects to be spend

on the payment of salaries & allowances to the union officials and for the

administrative expenses, audit, conduct of trade disputes, life insurance for

members.

O The general funds of a registered trade union shall not be spent on any other objects

than those specified in the Act.

O Also, a registered trade union may constitute a separate fund, from contributions

separately levied for or made to that fund, for the promotion of the civic and

political interest of its members.

O No member shall be compelled to contribute to such fund and a member who does

not contribute to the said fund shall not be excluded from any benefits of the trade

union, or placed in any respect either directly or indirectly under any disability or at

any disadvantage as compared with other members of the union by reason of hiscontribution to the said fund.

O The Labour Bureau on receiving the annual returns from different States/Union

Territories, consolidates the all India statistics and disseminates them through

its publication entitled the 'Trade Unions in India' and its other regular

publications.


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Immunity(a. Criminal conspiracy Sec.17)

O No office-bearer or member of a registered trade union shall be liable to punishmentunder the Indian Penal Code in respect of any agreement made between the members forthe purpose of furthering any such object of the trade union as specified in the Act, unlessthe agreement is an agreement to commit an offence.

(b. Civil suit Sec.18)O No suit or other legal proceeding shall be maintainable in any civil court against any

registered trade union or any office-bearer or member thereof in respect of any act donein contemplation or furtherance of a trade dispute to which a member of the trade unionis a party on the ground only that such an act induces some other person to break acontract of employment, or that it is in interference with the trade, business oremployment of some other person or with the right of some other person to dispose of hiscapital of his labour as he wills.

(c. Miscellaneous Sec.20)O The account books of a registered trade union and the list of members thereof shall be

open to inspection by an office-bearer or member of the trade union at such times as maybe provided for in the rules of trade union.


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O Disqualification of the office bearers: A person shall be disqualified for being chosen

as, and for being a member of, the executive or any other office-bearer or registered

trade union if- (i) he has not attained the age of eighteen years;

(ii) he has been convicted by a court in India of any offence involving

moral turpitude and sentenced to imprisonment, unless a period of five

years has elapsed since his release.

O Rights of the Unions:

1. A registered trade union may, with the consent of not less than two-thirds of the total

number of its members and subject to the provisions of of the Act, change its

name.(Sec23.)2. The change in the name of a registered trade union shall not effect any of its rights or

obligation or render defective any legal proceeding by or against the union, and any

legal proceeding which might have been continued or commenced by or against it by its

former name may be continued by its new name. .(sec.26)

3. Any two or more registered trade unions may become amalgamated together as one

trade union with or without the dissolution or division of the funds of such trade unions

or any of them, provided that the votes of at least one-half of the members of each or

every such trade union entitled to vote are recorded, and that at least sixty percent of

the votes recorded are in favour of the proposal.(sec.25)

4. Such an amalgamation shall not prejudice any right of any such unions or any right

of a creditor or any of them.


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Offences & PenaltiesO

Every office-bearer or other person bound by the rules of the trade union shall bepunishable with the payment of fine, if:-

i. Default is made on the part of any registered trade union in giving any notice or

sending any statement or other document as required by or under any provision of

this Act; or

ii. Any person wilfully makes, or causes to be made, any false entry in, or any omission

from, the general statement or in or from any copy of rules or of alterations of rules

sent to the Registrar;(sec.31) or

iii. Any person who, with intent to deceive,

(a)gives to any member of a registered trade union or

(b)to any person intending or applying to become a member of such trade union any

document purporting to be a copy of

(i) the rules of the trade union or

(ii) of any alterations to the same which he/ she knows, or has reason to believe,is not a correct copy of such rules or

(iii) alterations as are for the time being in force, or

(c) any person who, with the like intent, gives a copy of any rules of an unregistered

trade union to any person on the pretence that such rules are the rules of a registered

trade union.


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Dissolution of trade union(Sec.27)

O When a registered trade union is dissolved, notice for the dissolution

signed by seven members and by the Secretary of the trade union shall,

within fourteen days of the dissolution, be sent to the Registrar and shall

be registered by him if he is satisfied that the dissolution has been effected

in accordance with the rules of the trade union, and the dissolution shall

have effect from the date of such registration.

O However, the Trade Unions Act 1926 has been amended from time to

time and the most important being the Trade Unions (Amendment) Act,

2001.

O This Act has been enacted in order to bring more transparency and toprovide greater support to trade unionism in India.


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Criticism of trade unionO Lack of education: It makes the workers narrow-minded, and prevents

them from taking long-term views. Thus, anything, which does not result

in an immediate reward, becomes unattractive to them. This attitude is

responsible for many strikes and lock-outs in industrial concerns.

O Trade unions may not welcome rationalisation and improved methods of

production for the fear that some of the workers will be put out of work.

Therefore, they resort to go slow policy that retards industrial progress.

O When labour unions strike because of illogical grounds, incalculable

losses occur to producers, community and the nation. These are harmful to

the workers also. They suffer because of the loss of wages.

O They create artificial scarcity of labour by demanding that only unionpersonnel should be employed.

O By undue insistence on the payment of standard rates of wages, they have

only levelled down the earnings of the efficient workers.


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Problems & Weaknesses of

Trade UnionsO Uneven Growth. The trade unionism in India is characterised by uneven growth,

both industry-wise and area-wise. Trade unions are popular in big industries and the

degree of unionisation varies widely from industry to industry. Besides, trade union

activities are concentrated in a few states and in bigger industrial centers mainly due

to concentration of industries in those places.

O Indifferent attitude of the workers.

O Limited Membership. The number of trade unions in India has increased

considerably. But this has been followed by the declining membership per union.

O Multiplicity of Unions. There exist several trade unions in the same establishment.

The multiplicity of unions is the result of outside leadership and labour laws.

Therefore, small sections of workers are encouraged to form separate Unions. There

is no restriction on the number of unions to be registered in one establishment.O Outside Leadership: These outsiders are politicians, intellectuals and professionals

having no experience of work in industry. Outsiders continue to dominate the trade

unions to advance their personal interests.

O Financial problems.


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Case Law

O The court will not interfere or prevent with the legitimate right of labour to

agitate and go on strike, as long as they donot indulge in any illegal acts.

(a)Rama Vilas Services V/s Simpson Company Union 1979;

(b)Kamgar Sabha V/s Hindustan Ciba 1995.

O Any concerned movement by workers to achieve their objectives is permissible

even inside the industrial establishment within working hours, as long as it is notunlawful or violent.Ahmedabad Textile Research assn. V/s Attra Employers

Union 1995.

O The court doesnot allow the union or any of its office bearers to commit

deliberate trespass. Dalmia Cement V/s Narain Das 1939.

O Trade union activities outside the bank or any establishment will not restrained

by the court.O Union cannot block the passage of men and material of the company. Simpson

Union V/s amco Batteries, 1992.


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Thank you!!

An Industrial Law Presentation

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