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EMPLOYMENT LEGISLATION OF TRADE UNIONS

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This article is written by Neha Choudhary of 9th Semester of Gitarattan International Business School, an intern under Legal Vidhiya

ABSTRACT 

In every organization, it is essential to establish that the working environment is in the finest interest of the workers. For the growth and development in any field, it is crucial to safeguard the manpower and thus it becomes constitutionally essential to recognize Trade Unions. Trade Unions represent employees in workplaces and ensure that there is cooperation between the manpower and administration. Employees must have the freedom to express themselves in a conflict, and thus a recognized and registered Trade Union represents workers and promotes collaboration. The recognition of a Trade Union in an organization ensures that the rights of the workers are not violated; Trade Unions resolve conflicts through collective bargaining so that management cannot take undue advantage of the labor. Trade disputes are unavoidable in organizations with a variety of tiers; yet, it is equally vital to address the conflicts, which brings us to the function of Trade Unions and advocating for their rights.

KEYWORDS:  Employment, Trade Union, Empowerment, Collective Bargaining, Labor Law

INTRODUCTION 

In India, labor laws play an imperative role in safeguarding the rights of workers. Various labor laws have been enacted in India to ensure that the rights of the workers are not violated by their management. These laws ensure fair treatment and pay to their workers irrespective of gender and promote social and economic empowerment of the employees. The Government has enacted these laws to border a nexus between workers and authoritative bodies so that the workers can stand for their rights and the authorities can take action against their infringement. The labor laws significantly foster harmonious relationships between employers and employees and work on the overall growth of the organization. 

Various laws have been enacted by the Government of India to reduce the chances of exploitation of the workers by the employers. The Government ensures the payment of minimum wages to workers according to the rates directed by the Government to secure adequate living for all employees. While employment law or employment standards law is concerned with the regulation in statute laws, circumstances of the workplace, hours of working, remuneration, etc., labor law and employment standard laws are typically tied to workers or employees and their mode of employment. Labor regulations also make sure that no unauthorized deductions are made from a worker’s salary and that they are paid on time. These laws improve the financial stability of the employees.

Labor laws improve their working conditions, and opportunities for promotion and training, and ensure educational, cultural, social, and recreational facilities. Moreover, they ensure payment of compensations to the employees who suffer injuries in the line of duty; the workers are compensated for death, temporary or permanent disablement, etc. It primarily relates to concerns with labor relations, obligations of Trade Unions, a proper working environment, and the conditions of employment, strikes, and worker security.

The labor laws which have been implemented for the employees in India are: 

These labor legislation aims to create a framework for workplace relations that encourages cordial interactions between organized labor and management. These laws ensure the safety of all the workers working in a factory against accidental hazards; they also ensure a healthy, safe and hygienic working environment for both male and female employees. Labor regulations provide safe working hours for employees and make sure that businesses abide by these rules.

HISTORY OF TRADE UNIONISM 

Trade Unions can be traced back to the 19th Century when industrialization and the emergence of modern factories began in Britain. The construction of massive factories, new methods of mass production, mechanization, and swift economic growth defined the Industrial Revolution. The setting up of large-scale industries required manpower for smooth running which increased the demand for skilled and unskilled labor. While the Industrial Revolution and technical advancements persisted, joint-stock firms began to take the place of the traditional methods of conducting business. It was observed that the industries were not organized and management only focused on maximizing the profits which led to exploitation of labor who were uneducated and poor. 

The workers first believed that their need for money was higher and that their employers could simply replace them if they complained about the unfair terms and conditions. But throughout time, the labor class understood that while a single worker’s outcry against the exploitative conditions of his employees may not have any effect on the industrial structure, a collection of workers i.e. Union will have a greater influence on their employers. Workers were given the ability to collectively negotiate for themselves after being organized into unions.[1]

In India, the British started colonizing in the 1600s and started to set up factories and mills in India just like the Industrial Revolution in Britain. The British saw India as an ideal place to begin industrialization because it had an abundance of inexpensive, unskilled labor as well as the necessary natural resources and acreage to establish businesses. The conditions of the labor force were worse in India as well in terms of wages, working hours, exploitation, etc. which led to unrest amongst the laborers. Workers started joining hands against exploitation which led to the formation of unions; however, there were no laws to legalize such unions. Growing unrest, conflicts, disputes, strikes, etc. led to the formation of various legislations which protected the concept of Trade Unionism in India. 

Over the years, there have been various developments that established various labor associations and unions in different parts of India. Early Trade Unions were founded to combat worker exploitation and strive for improved working conditions. Important personalities like N.M. Lokhande founded the Bombay Mill-Hands Association, in 1890, was the first labor association in India. Later, more labor organizations were established, like the Madras Labor Union and the Ahmedabad Textile Laborer’s Association, which strengthened the labor movement throughout the nation. Furthermore, in 1920, the All-India Trade Union Congress (AITUC) was founded to promote workers’ interests and to fight for their rights. 

The Trade Unions Act of 1926, which established formal recognition of the labor movement and allowed for the registration and administration of unions, was a significant advancement. Since then, many Trade Unions have been founded in India due to the country’s sizeable labor market. Notable examples include the Bharatiya Mazdoor Sangh, the Indian National Trade Union Congress, the All-India Trade Union Congress, the Hind Mazdoor Sabha, the Centre for Indian Trade Unions, and the Self-employed Women’s Association of India (SEWA).[2]

TRADE UNION ACT, 1926

A Trade Union is an association that represents workers in issues regarding employment identifying with wages, working hours, health and sanitation, working employment, safety, etc. Trade Unions are links between employers and employees and resolve disputes with collective bargaining. Collective bargaining refers to the negotiation between the employers and employees who are represented by the Trade Union which includes working conditions, salaries and compensation, working hours, and benefits. According to the International Labor Organization, collective bargaining is a fundamental right for all employees. Article 19(1) (c) of the Constitution guaranteed the fundamental right to speech and expression and provides the right to form association.

According to section 2(h) of the Trade Unions Act, “Trade Union” means any combination, whether temporary or permanent, formed primarily to regulate the relations between workmen and employers 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: Provided that this Act shall not affect— (i) any agreement between partners as to their own business; (ii) any agreement between an employer and those employed by him as to such employment; or (iii) any agreement in consideration of the sale of the goodwill of a business or instruction in any profession, trade or handicraft.”[3]

Trade Unions Act 1926 provides a well-defined procedure for the registration of the Trade Union as it is essential for the Trade Union to be legally registered. The Act prescribes a mode of registration of a Trade Union wherein any seven or more members subscribe their name to the rules of Trade Unions.[4] The Act also directs the members of the Trade Union to file an application for registration to the registrar which shall be accompanied by the particulars explicitly mentioned in the Act.[5] The Trade Union shall be registered under the Act if the registrar is satisfied that the Trade Union has complied with the requirements under the Act[6] and shall issue the certificate of registration to the Trade Union.[7] However, the registrar is empowered to withdraw or cancel the registration of the Trade Union on the application of the Trade Union or the registrar is satisfied that the certificate has been obtained by fraud or mistake or the Trade Union has ceased to exist etc. mentioned under the Act.[8]

Once the Trade Union has been registered under the Act, all communications and notices shall be addressed to its registered office, and notice regarding change in the address shall be notified to the registrar within 14 days in writing.[9]

The Act also provides the aggrieved party the power to appeal for the refusal of the registrar to register a Trade Union or the withdrawal or cancellation of the Trade Union. [10]

The registered Trade Union under the Act shall be a corporate with perpetual succession and a common seal with power to acquire and hold both movable and immovable property and to enter into the contract, The Act also provides the Trade Union with the power to sue and can also be sued.[11]

The Act also mentions the rights and liabilities of the Trade Union under Chapter III of the Act which mentions the general[12] and separate funds[13] of the Trade Union, immunity from criminal[14] or a civil suit in certain cases[15], right to inspect books of Trade Union[16], change of name[17] or amalgamation of Trade Union[18] etc.   

CASE LAWS 

  1. Registrar of Trade Unions, Union Territory of Pondicherry v. the Government Press Employees Union[19]

In the aforementioned case, the employees of Pondicherry government press formed a union and applied for registration for trade union under the trade union act 1926 which was refused by the registrar stating that they do not fall under the purview of trade or business. The court held in this case that “workmen” eligible for the benefits of the Trade Unions Act of 1926 are those who are employed by an industrial concern, such as a Government press.

The Tamil Nadu Non-Gazetted Government Officer’s Union was an association which was recognized by the government, the association applied for the registration under the trade unions act 1926 which was rejected by the registrar. It was held that the association cannot be considered an association under the act as civil servants cannot be considered as workmen. As a result, the appeal was rejected by the High Court.

The Supreme Court ruled on the existence of several Trade Unions and found that recognizing a Trade Union facilitates productive negotiation, while also noting the distinctions in rights between recognized and unregistered unions.

In this case, the petitioner was a trade union was a registered trade union under trade unions act 1926; the registrar, the respondent, issued a notice to show cause as to why the petitioner’s union shall not be cancelled as they have failed to submit the annual returns as per law. According to the Bombay High Court, the registrar must willfully reject the notification to terminate the registration. If the Trade Union submits the account statement after obtaining notification from the registrar, the registrar cannot terminate the registration on the basis that it was not filed earlier.

According to the Supreme Court, unions and employees have the right to peacefully air their problems, but they are not entitled to use agitational tactics that endanger other people’s lives or medical services.

CONCLUSION 

It is crucial to make sure that the working environment is in the best interests of the employees in any firm. Protecting the workforce is fundamental for growth and development in every industry, making recognition of Trade Unions legally necessary. Trade Unions stand up for workers at work and make sure that management and labor are working together. Employees must be able to express themselves freely in a dispute, which is why a recognized and registered Trade Union supports cooperation and represents workers. The presence of a Trade Union within a company guarantees that employees’ rights are upheld; Trade Unions use collective bargaining to settle disputes so that management cannot unfairly exploit the workforce. Trade conflicts are essential, but it’s also crucial to settle them, which is where Trade Unions and other organizations step in.

REFERENCE

[1] Explained: Evolution of Trade Unionism in India available at https://blog.ipleaders.in/explained-evolution-of-trade-unionism-in-india/ (last visited on 23rd August 2023)

[2] What are the rights of trade unions in India available at https://blog.ipleaders.in/what-are-the-rights-of-trade-unions-in-india/ (last visited on 23rd August)

[3] Section 2(h) of Trade Union Act, 1926

[4] Section 4 of Trade Union Act, 1926

[5] Section 5 of Trade Union Act, 1926

[6] Section 8 of Trade Union Act, 1926

[7] Section 9 of Trade Union Act, 1926

[8] Section 10 of Trade Union Act, 1926

[9] Section 12 of Trade Union Act, 1926

[10] Section 11 of Trade Union Act, 1926

[11] Section 13 of Trade Union Act, 1926

[12] Section 15 of Trade Union Act, 1926

[13] Section 16 of Trade Union Act, 1926

[14] Section 17 of Trade Union Act, 1926

[15] Section 18 of Trade Union Act, 1926

[16] Section 20 of Trade Union Act, 1926

[17] Section 23 of Trade Union Act, 1926

[18] Section 24 of Trade Union Act, 1926

[19] Registrar of Trade Unions, Union Territory of Pondicherry v. the Government Press Employees Union, C.R.P. No. 2335 of 1972

[20] Tamil Nadu N.G.O Union v. The Registrar of Trade Unions, AIR 1962 Mad 234

[21] Balmer Lawrie Workers’ Union, Bombay and Another v. Balmer Lawrie & Co. Ltd. and Others, 1985 AIR 311

[22] Tata Electric Companies Officer’s Guild v. Registrar of Trade Unions, 1994 (68) FLR 656

[23] https://www.casemine.com/judgement/in/56090b35e4b0149711174158

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