TRADE UNION AND TRADE DISPUTE

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This article is written by Ananya Banerjee of 10^th Semester of Law College Durgapur, an intern under Legal Vidhiya.

Introduction

Prior to the widespread rise of industrialisation, there were private contracts between employees and employers. Therefore, until that point, there was no need for any mechanism managing the interaction between employees and employers to evolve. However, after the modern factory system was established, this relationship became less important as a result of widespread industrialization, which encouraged employers to lower the cost of production in order to withstand the fierce market competition and maximise their profit by using technologically advanced means of production. Due to the advent of a new class of wage-dependent workers, the preexisting employer-employee relationship in which workers were exploited by their employers was altered. The development of numerous trade unions was a result of the conflict of interests between employees and employers as well as the suffering of workers.

An organised group of employees known as a trade union works to support its members on matters involving wage equity, a positive work environment, working hours, and other benefits to which employees ought to be entitled rather than compensation for their efforts. They were only recently established institutions, but because of their direct impact on the social and economic lives of the workforce, they have grown to be a formidable force. The Trade Unions Act of 1926 is the main Act in India for regulating and supervising the activities of trade unions. The purpose of this page is to clarify and highlight important facets of the Act.

Keywords: Trade union, Trade dispute, collective bargaining, strike, industrialization, workmen, labour legislation.

History of trade unions in India

In India, trade unions have grown to be a significant forum for addressing worker issues. They have also developed into one of the most effective pressure groups, a collection of individuals working to persuade the government to enact labour-friendly legislation without having any desire to join the government. After World War 1, labour unionism began to take real form as an organised entity. Several philanthropists and social workers, including Shri Sorabji Shapurji Bengali and Shri N.M. Lokhandey, first recognised the need for an organised trade union in 1875. As a result of their tireless efforts, trade unions like the Printers’ Union of Calcutta (1905) and the Bombay Postal Union (1907) were founded.

Industrial workforce organisations in India were sparked by the establishment of textile and mill industries at the start of the 19th century in the presidential towns of Bombay, Madras, and Calcutta. The first labour union in India was established by N.M. Lokhande in 1890 as the Bombay Mill-Hands Association. A number of other labour organisations and unions in India rose to prominence in the years that followed, including the Madras Labour Union, which B.P. Wadia founded in 1918 and was the country’s first to be officially recognised as a trade union. The Ahmedabad Textile Labourer’s Association in Gujarat, which became a union under Mahatma Gandhi’s guidance and was regarded as one of the strongest unions in the nation at the time due to the distinctive method of arbitration and conciliation it had developed to settle the grievances of the workers with the employers, began to grow in the country in 1920. Since the union upheld Mahatma Gandhi’s principles of truth and nonviolence, it was able to obtain justice for the workers in a nonviolent manner without endangering societal unity. The All India Trade Union Congress (AITUC), the first trade union federation, was established in the same year. It was created in response to the International Labour Organization’s findings, which highlighted the impact of politics on trade unions and organisations and how this has a negative impact on the viability of any economy.

In order to improve relations between employers and employees, nationalist leaders like Mahatma Gandhi introduced the notion of trusteeship and understood the importance of the development of an organised trade union. According to the theory, those who are financially stable should own property and use it not only for their own benefit but also for the welfare of those workers who are less fortunate financially. Each employee should view himself as a trustee of other employees and work to protect their best interests. It was created in response to the International Labour Organization’s findings, which highlighted the impact of politics on trade unions and organisations and how this has a negative impact on the viability of any economy.

Numerous commissions also emphasised the creation of trade unions in India. For instance, the Royal Commission on Labour or Whitley Commission on Labour, which was established in the years 1929–1930, recommended that the issues brought on by modern industrialization in India are similar to those it caused elsewhere in the world and that the only remaining solution is the creation of powerful trade unions to free the labourers from their pitiful circumstances and exploitation.

Development of trade union: Industrial relations development in India is significantly influenced by labour legislation. All Indian labour law has as its guiding concept the establishment of social justice. The need for carefully crafted employment legislation in the nation was further fueled by the creation of the International employment Organisation to improve the status of labour worldwide. A number of other internal forces, like the Swaraj movement of 1921–1924 and the Royal Commission on Labour, also opened the way for numerous labour regulations and persuaded the constitution’s writers to include such labour-friendly provisions in the document. According to the Indian Constitution, labour is a concurrent list topic that is subject to both state and federal legislation. The following are the country’s several employment laws:Numerous commissions also emphasised the creation of trade unions in India. For instance, the Royal Commission on Labour or Whitley Commission on Labour, which was established in the years 1929–1930, recommended that the issues brought on by modern industrialization in India are similar to those it caused elsewhere in the world and that the only remaining solution is the creation of powerful trade unions to free the labourers from their pitiful circumstances and exploitation.

The 1961 Apprentices Act’s goal was to strengthen and hone existing abilities via both practical and theoretical instruction while also promoting emerging talent.
The Contract Labour (Regulation and Abolition) Act of 1970 sought to regulate the use of contract labour and, in some cases, to outlaw it altogether.
The Employees’ Provident Funds and Miscellaneous Provision Act of 1952 governed how employees were paid their salary and provided social security.
The 1948 Factories Act was designed to protect the health of workers performing specific designated jobs.
The Minimum Wages Act of 1948 set minimum wage rates for a number of occupations.
The Trade Union Act of 1926 established legislation governing registered trade unions and allowed for the registration of trade unions.

Definition of trade union:

Trade unions or labour unions are associations founded by employees in similar professions to advance the interests of their constituents. They serve as a bridge between management and employees and represent a group of workers.

These unions’ role is to investigate employees’ complaints and represent their collective viewpoint to management. As a result, it serves as a channel of communication between management and employees.
These trade unions’ other primary duties include relations regulation, grievance redress, advancing new demands on behalf of workers, collective bargaining, and negotiations.
The primary law that governs and oversees the operation of trade unions is the Indian Trade Union Act, 1926. Trade union activities in India are influenced by political beliefs and lines. This is the rationale for the creation and management of trade unions by political parties today.
The definition of a trade union under Section 2(h) is too wide because it encompasses both employers’ and employees’ unions.

A federation is not a trade union in line with Section 2(h) of the Trade Unions Act of 1926 if it is not a registered body under that Act, it was decided in National body of Bank Workers’ Federation of Trade Unions v. Union of India (1993). The definition includes any federation made up of two or more unions. Because the appellant is not a recognised organisation, it lacks the power to start or make any requests for and on behalf of the employees.

The Madras High Court noted that employees of an industrial undertaking, such as a government press, are considered “workmen” and are therefore eligible for the benefit of the Trade Union Act of 1926 in the case of the Registrar of Trade Unions, Union Territory of Pondicherry v. the Government Press Employees Union represented by its Secretary V. Thirunavukkarasu (1975).

Trade Dispute

The vast majority of the legal rules governing trade disputes and industrial action are found in the Industrial Relations Act of 1990. In Section 8 of the Act, “any dispute between employers and employees that is related to the employment or non-employment, or the terms or conditions of, or affecting, the employment of any person” is referred to as a “trade dispute.” An industrial action is any action that could change the terms of a contract and is taken by a group of workers acting together to force their employer “to accept or not to accept terms or conditions of or affecting employment.” A work-to-rule situation, a picket, a ban on overtime, or a strike are all examples of industrial action. Trade unions You have the fundamental right to join the union of your choice as an employee, as well as the right to leave that union.

Engaging in a strike: Although there is no legal right to engage in collective bargaining, there are protections for some employees who do so, such as by participating in a strike. Workers who engage in lawful industrial action are exempt from the following under Part 2 of the Industrial Relations Act of 1990:
Criminal or civil actions may be taken for a conspiracy to commit a specific act if a single individual acting alone would not constitute a crime. You gain from this immunity even if you are not a union member.
Prosecution for participating in nonviolent picketing. This immunity is only granted to authorised trade union members and officials.
Prosecution for employment contracts that have been broken under duress or under threat of duress. Again, this immunity is only available to members and officials of a recognised labour union.

Unjust termination

The unjust Dismissals Act of 1977’s Section 5 states that it is unjust to fire an employee for participating in a strike or other industrial action if:

The other employee or employees who participated in the activity but were not fired, or
The person was not restored or rehired after being fired, however one or more of the other employees were
The unjust Dismissals (Amendment) Act of 1993 revised this by extending the meaning of unjust dismissal to include less favourable treatment upon reinstatement or re-engagement following a strike or lockout (section 4).

When an employer removes employees from the workplace, suspends work, or cancels their job, it is known as a lockout. A lockout is regarded as a dismissal under the laws governing unjust dismissals. Again, if an employee is not reinstated or re-engaged following a lockout but one or more of the other employees are, it is seen as an unjust dismissal under Section 5 of the unjust Dismissals Act of 1977.

In accordance with Section 6 of the unjust Dismissals Act of 1977, termination due to union activity or membership is inherently unjust. In order to assert his or her rights after being fired under such conditions, an employee is not need to have worked at the company for a specific amount of time. Trade union activity is defined as activity done with the employer’s permission or after hours. This term does not apply to strikes or other forms of industrial action.

Victimisation

Victimisation that results from an employee’s membership or non-membership, activity or inactivity for a trade union, a management fulfilling their managerial tasks, or any other employees is covered by the Workplace Relations Commission’s Code of Practice on Victimisation. When there are no negotiating agreements in place and no collective bargaining has taken place, it is applicable.

Victimisation refers to the unfair treatment of a worker, including a manager. It excludes termination; see “Unfair termination” above. Utilising the online complaint form found on workplace relations, you can file a complaint with the Workplace Relations Commission in accordance with the Industrial Relations (Miscellaneous Provisions) Act 2004 if you feel you have been victimised.ie. Other concerns with employment

Pay: The Payment of Wages Act of 1991 permits deductions from your pay by your employer where those deductions are necessary as a result of your strike.
Minimum wage: Time spent on strike is not included in the calculation of your hourly rate of pay.
Redundancy: Strike time does not interrupt the continuity of service necessary to be eligible for redundancy. The last three years of your employment, however, are not counted when determining the mandatory redundancy payment.
Holiday: If you missed work the day before a holiday and the reason for your absence was a strike, you are not eligible for holiday benefits.

Conclusion

The Trade Union Act of 1926 was enacted to safeguard the rights of workers in both organised and unorganised sectors against inhumane conditions of work. As a result, the legislation includes measures for trade union registration, regulation, benefits, and protection. Consequently, the workers gain. As they reflect the needs and expectations of the workforce through collective bargaining, trade unions are crucial institutions for the democratic growth of every nation. An essential component of the employer-employee relationship is collective bargaining. But only those trade unions that are recognised are allowed to engage in collective bargaining, not all of them. As a result, workers have repeatedly called for the Trade Union Act of 1926 to include provisions for the forced recognition of unions. Trade unions are becoming more powerful as a result of the expansion of the media, acting as powerful pressure organisations not only in the industrial sectors but also in the agricultural and other related ones.

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