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TRADE UNION ACT 1926TRADE UNION ACT 1926Chirag V. VyasChirag V. Vyas
M.H.R.D. Sem.3M.H.R.D. Sem.3M.J. College of Commerce,M.J. College of Commerce,
BhavnagarBhavnagar
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Trade UnionsTrade Unions
"Trade Union" means any combination, whether"Trade Union" means any combination, whethertemporary or permanent, formed primarily fortemporary or permanent, formed primarily forthe purpose of regulating the relations betweenthe purpose of regulating the relations between
workmen and employers or between workmenworkmen and employers or between workmenand workmen, or between employers andand workmen, or between employers andemployers, or for imposing restrictive conditionsemployers, or for imposing restrictive conditionson the conduct of any trade or businesson the conduct of any trade or business
Trade unions are formed to protect and promote
Trade unions are formed to protect and promotethe interests of their members. Their primarythe interests of their members. Their primary
function is to protect the interests of workersfunction is to protect the interests of workersagainst discrimination and unfair labor practices.against discrimination and unfair labor practices.
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ObjectivesObjectives
RepresentationRepresentation
NegotiationNegotiation
Voice in decisions affecting workersVoice in decisions affecting workers Member servicesMember services
(a)(a)Education and trainingEducation and training
(b)(b)Legal assistanceLegal assistance(c)(c)Financial discountsFinancial discounts
(d)(d)Welfare benefitsWelfare benefits
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Functions of Trade unionsFunctions of Trade unions
(i)(i) Militant functionsMilitant functions
(a) To achieve higher wages and better(a) To achieve higher wages and better
working conditionsworking conditions(b) To raise the status of workers as a part(b) To raise the status of workers as a part
of industryof industry
(c) To protect labors against victimization(c) To protect labors against victimizationand injusticeand injustice
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(ii) Fraternal functions(ii) Fraternal functions
To take up welfare measures for improving theTo take up welfare measures for improving themorale of workersmorale of workers
To generate self confidence among workersTo generate self confidence among workers
To encourage sincerity and discipline amongTo encourage sincerity and discipline amongworkersworkers
To provide opportunities for promotion andTo provide opportunities for promotion and
growthgrowth To protect women workers againstTo protect women workers against
discriminationdiscrimination
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Importance Of Trade UnionsImportance Of Trade Unions
Trade unions help in accelerated pace of economicTrade unions help in accelerated pace of economicdevelopment in many ways as follows:development in many ways as follows:
by helping in the recruitment and selection of workers.by helping in the recruitment and selection of workers.
by inculcating discipline among the workforceby inculcating discipline among the workforce by enabling settlement of industrial disputes in a rationalby enabling settlement of industrial disputes in a rational
mannermanner
by helping social adjustments. Workers have to adjustby helping social adjustments. Workers have to adjustthemselves to the new working conditions, the new rulesthemselves to the new working conditions, the new rules
and policies. Workers coming from different backgroundsand policies. Workers coming from different backgroundsmay become disorganized, unsatisfied and frustrated.may become disorganized, unsatisfied and frustrated.Unions help them in such adjustment.Unions help them in such adjustment.
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Trade Unionism In IndiaTrade Unionism In India
Indian trade union movement can beIndian trade union movement can bedivided into three phases.divided into three phases.
** The first phase (1850 to1900)The first phase (1850 to1900)
** The second phase (1900 to 1946)The second phase (1900 to 1946)** The third phaseThe third phase (in 1947).(in 1947).
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By1949, four central trade unionBy1949, four central trade unionorganizations were functioning in theorganizations were functioning in the
countrycountry:: The All India Trade Union Congress,The All India Trade Union Congress,
The Indian National Trade UnionThe Indian National Trade UnionCongress,Congress,
The Hindu Mazdoor Sangh, andThe Hindu Mazdoor Sangh, and
The United Trade Union CongressThe United Trade Union Congress
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Trade Union Act 25 March 1926Trade Union Act 25 March 1926
The trade Unions Act, 1926 provides for registration ofThe trade Unions Act, 1926 provides for registration oftrade unions with a view to render lawful organisation oftrade unions with a view to render lawful organisation oflabour to enable collective bargaining. It also confers onlabour to enable collective bargaining. It also confers ona registered trade union certain protection anda registered trade union certain protection and
privileges.privileges. The Act extends to the whole ofIndia and applies to allThe Act extends to the whole ofIndia and applies to all
kinds of unions of workers and associations ofkinds of unions of workers and associations ofemployers, which aim at regularizing labor managementemployers, which aim at regularizing labor managementrelations. A Trade Union is a combination whetherrelations. A Trade Union is a combination whether
temporary or permanent, formed for regulating thetemporary or permanent, formed for regulating therelations not only between workmen and employers butrelations not only between workmen and employers butalso between workmen and workmen or betweenalso between workmen and workmen or betweenemployers and employers.employers and employers.
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Trade unions in IndiaTrade unions in India
The Indian workforce consists of 430 millionThe Indian workforce consists of 430 millionworkers, growing 2% annually. The Indianworkers, growing 2% annually. The Indianlabor markets consistof three sectors:labor markets consistof three sectors:
The rural workers, who constitute about 60 perThe rural workers, who constitute about 60 percent of the workforce.cent of the workforce.
Organized sector, which employs 8 per cent ofOrganized sector, which employs 8 per cent ofworkforce, andworkforce, and
The urban informal sector (which includes theThe urban informal sector (which includes the
growing software industry and other services,growing software industry and other services,not included in the formal sector) whichnot included in the formal sector) whichconstitutes the rest 32 per cent of theconstitutes the rest 32 per cent of theworkforce.workforce.
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Atpresentthere are twelve CentralTrade UnionOrganizationsAtpresentthere are twelve CentralTrade UnionOrganizationsinIndia:inIndia:
All India Trade Union Congress (AITUC)All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS)Bharatiya Mazdoor Sangh (BMS) Centre ofIndian Trade Unions (CITU)Centre ofIndian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat(HMKP)Hind Mazdoor Kisan Panchayat(HMKP) Hind Mazdoor Sabha (HMS)Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU)Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC)Indian National Trade Union Congress (INTUC) National Front ofIndian Trade Unions (NFITU)National Front ofIndian Trade Unions (NFITU)
National Labor Organization (NLO)National Labor Organization (NLO) Trade Unions CoTrade Unions Co--ordination Centre (TUCC)ordination Centre (TUCC) United Trade Union Congress (UTUC) andUnited Trade Union Congress (UTUC) and United Trade Union CongressUnited Trade Union Congress -- Lenin Sarani (UTUCLenin Sarani (UTUC -- LS)LS)
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Reasons for Joining Trade UnionsReasons for Joining Trade Unions
Greater Bargaining PowerGreater Bargaining Power
Minimize DiscriminationMinimize Discrimination
Sense of SecuritySense of Security Sense of ParticipationSense of Participation
Sense of BelongingnessSense of Belongingness
Platform for self expressionPlatform for self expression Betterment of relationshipsBetterment of relationships
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Registration of Trade UnionRegistration of Trade Union
Any 7 or more members of a tradeAny 7 or more members of a tradeunionunion
There should be at least 10% or 100 ofThere should be at least 10% or 100 ofthe workmen, whichever is less,the workmen, whichever is less,engaged or employed in theengaged or employed in theestablishment or industryestablishment or industry
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Registration ProcessRegistration Process
Application in Prescribed form withApplication in Prescribed form withfollowing details:following details:
Names, Occupations and address of theNames, Occupations and address of themembers place of workmembers place of work
Address of its head officeAddress of its head office
Names, ages, addresses and occupations of itsNames, ages, addresses and occupations of itsoffice bearersoffice bearers
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BibliographyBibliography
BooksBooks
[01] A.M. Sharma,[01] A.M. Sharma, Industrial Jurisprudence and labour Industrial Jurisprudence and labour
legislationlegislation
Sixth Edition 2009Sixth Edition 2009
Himalaya Publishing HouseHimalaya Publishing House
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