LABOUR LAW – I
Module – 4
Trade Unions
Adv. Usha Andewar
A trade union is an organisation of individuals united in pursuit
of improved working conditions. The International Labour
Organisation (ILO) has consistently acknowledged that trade
unions are a vital component of a nation's contemporary
industrial framework. In 1918, the inaugural organised trade
union in India, referred to as the Madras Labour Union, was
created. In India, numerous trade unions are unregistered and
encompass a diverse array of sectors. The increase in
employment provides union-represented personnel with
significant opportunities for advancement.
History of Trade Unions in India
(i) The genesis of trade unions arose from the requirement of
the era, aimed at safeguarding and advancing the interests
of industrial workers by articulating their collective
demands and grievances, particularly from the latter half
of the nineteenth century with the formation of industries.
(ii) Poor working conditions, undue long working hours were
the concerns for the workers.
(iii) Despite its formation in the latter part of the 19th century,
the Unions faced constraints in their capacity to operate as
trade unions; yet, they proved to be powerful social unions,
articulating collective demands with a focus on reforming
societal issues.
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(iv) The establishment of trade unions was closely aligned with
the advancement of industry in India.
(v) The first trade union in India was established in Bombay
following the inception of textile factories in the 1850s.
(vi) Trade unions emerged in Calcutta in 1854 with the
founding of jute mills.
(vii) Sohrabji Shapuri Bengali and C.P. Mazumdar were
prominent leaders and early pioneers of the workers union
movement.
(viii) The first factory commission established in 1879 examined
the issues faced by industrial workers.
(ix) The First trade union, the 'Bombay Mill Hands Association',
was established in 1884 under the leadership of Narayan
Meghji Lokhande, lacking both financial resources and
office bearers.
(x) In 1891, the Indian Factory Act was enacted.
(xi) Some other trade unions include the Ahmedabad Weavers
(1895), Jute Mills, Calcutta (1896), and the Bombay Mill
Workers Union (1897).
Evolution of Trade Unions in India
The evolution of India's labour movement and the history of trade
unions can be categorised into distinct developmental eras.
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(i) N.M. Lokhande, a manufacturing worker, organised a
Labour Convention in Bombay in 1884, marking one of the
most pivotal events of the 1880s.
(ii) The Second Factory Commission received a memorandum
detailing the deplorable working conditions of employees,
yet no measures were implemented.
(iii) Consequently, on April 21, 1890, 10,000 workers convened
in Bombay for a mass assembly.
(iv) Between 1882 and 1890, twenty-four strikes transpired in
Bombay and Madras.
The owners of the textile mills resolved to grant their
employees a weekly day off. Shri N. M. Lokhande
established the Bombay Mill Hands Association in 1890 as
a result of their achievements. This was the inaugural trade
union in India. This was the paramount accomplishment
in the labour movement and the history of trade unions in
India throughout the 19th century.
(v) The ILO emphasized in a 1921 resolution that workers have
to possess the capacity to form unions.
(vi) Consequently, the labour union movement commenced in
the 1920s. The regulation of trade unionism commenced in
1926 with the enactment of the Trade Unions Act,
facilitating the formation of trade unions in India.
(vii) The statute provided registered trade unions with legal
recognition and afforded them and their members specific
protections against civil actions and criminal prosecutions.
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(viii) The public's view of trade unions improved as a result of
this.
(ix) The Act demonstrated advantages for the Indian trade
union movement.
(x) Existing trade unions registered under the Act to secure
recognition.
(xi) In addition, numerous new unions emerged.
Stages of the Trade Union Movement in India
The trade union movement in India can be categorised into three
principal periods: the early phase, the post-independence phase,
and the contemporary phase.
Initial Stage (Pre-independence)
The initial stage of the labour union movement in India
commenced in the late 19th and early 20th century. These British
industrial strategies were predatory. Indian laborers endured
extended hours, little remuneration, and hazardous working
environments. The majority of trade union development during
this period was concentrated among industrial workers in textile
mills, railways, and plantations.
This phase concentrated on economic matters such as wage
enhancements, improved working hours, and superior working
conditions.
Post-Independence Era (1947–1970s)
Following the attainment of independence in 1947, the Indian
trade union movement assumed a new dimension. Jawaharlal
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Nehru governed India with socialist policies, nationalising
industries and establishing public sector enterprises. Numerous
trade unions were established during this period, significantly
contributing to the formulation of labour laws and the rights of
workers.
During this period, the labour and trade union movement
primarily concentrated on improving working conditions,
establishing minimum salaries, and securing social security for
workers. Numerous significant labour statutes, like the
Industrial Disputes Act (1947) and the Trade Union Act (1926),
were established to safeguard workers' rights. During this period,
both socialist and nationalist ideologies began to infiltrate Indian
society and impact the trajectory of the labour movement.
Contemporary Era (1980s–Present)
The current phase of the trade union movement in India spans
from the 1980s to the present. During this period, India has
embraced economic liberalization, globalization, and the
privatization of industries. The evolution of the trade union
movement in India has been influenced by these changes,
necessitating unions to adjust to the new difficulties presented
by market-oriented economies. They have been engaged in
opposing the privatization of public sector firms and the
implementation of labour market reforms that jeopardise
workers' rights.
Trade unions have progressively concentrated on matters such
as job security, contract labour, and the rights of workers in the
informal sector.
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COMPARATIVE ANALYSIS OF TRADE UNION THEN AND NOW
The Industrial Relations Code (IRC) 2020 substantially modifies
trade union legislation, encompassing registration criteria,
acknowledgement of bargaining unions, and regulations
concerning strikes and lockouts. Significant modifications
encompass an updated definition of "worker," the introduction of
bargaining unions or councils, and a 14-day notification period
for strikes or lockouts.
1. Trade Union Registration
• To register trade unions, they must comprise a
minimum of 10% of the workforce or at least 100
workers, whichever is lesser.
• This guarantees the recognition of solely active
unions.
2. Recognition of Negotiating Unions
• A novel provision for "Recognition of Negotiating
Union" has been established, permitting a
negotiating union within an industrial establishment
to engage in negotiations with the employer.
• This clause seeks to facilitate negotiations between
employers and registered trade unions.
3. Strikes and Lockouts
• The IRC forbids strikes or lockouts without a 14-day
advance notice.
• Similar stipulations were there in the Industrial
Disputes Act of 1947 for public utility services.
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4. Definition of "Worker"
The definition of "worker" has been amended to encompass
those in supervisory roles earning up to eighteen thousand
rupees monthly.
5. Other changes
• The notion of a "Re-skilling fund" has been
established.
• Registered trade unions may be acknowledged by the
Central or State Government as Central or State
trade unions if necessary.
• The regulations concerning Standing Orders pertain
to industrial facilities employing 300 or more people,
as designated by the relevant government.
• The IRC establishes a new rule indicating that
advance notification of any alteration in a worker's
conditions of service is unnecessary if the
modification is executed pursuant to directives from
the relevant government authority.
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PROVISIONS OF TRADE UNIONS UNDER IRC
Section (zl) – “Trade Union" means any combination, whether
temporary or permanent, formed primarily for the purpose of
regulating the relations between workers and employers or
between workers and workers, 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 the provisions of Chapter III of this Code shall not
affect — (i) any agreement between partners as to their own
business; or (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 of
instruction in any profession, trade or handicraft;
• Combination – The definition refers to any group or
association of people i.e. Workers and employers / workers
and workers / employers and employers.
• Temporary or Permanent – The Union can be a short-
term or long-term entity.
• Primary Purpose – The core function of the trade union is
to manage the relationships between workers and
employers.
• Relations between Workers and Employers – This
includes matters like wages, working conditions, and
benefits.
• Relations between Workers and Workers/Employers
and Employers – These relate to internal matters within
the workplace.
• Federation of Unions – The definition also includes
groupings of two or more trade unions.
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Section 5 – Registrar of Trade Unions
Provides the State Government for appointment of the Registrar
of a trade union and other persons as Additional Registrar, Joint
Registrar, Deputy Registrar by notification and shall have such
powers and perform such duties as the State Government may
notify, from time to time.
The section also states subject to the orders of the State
Government when Additional Registrar, Deputy Registrar or Joint
Registrars exercises power in an area, they would be deemed to
Registrar of Trade Unions.
Section 6 – Criteria for registration
(i) Any seven or more members of a Trade Union may, by
subscribing their names to the rules of the Trade Union
and by otherwise complying with the provisions of this Act
for registration, apply for registration of the Trade Union.
(ii) No Trade Union shall be registered unless at least 10% or
100 workers, whichever is less, engaged or employed in the
industrial establishment or industry with which it is
connected are the members of such Trade Union on the
date of making of application for registration.
(iii) Any application made for the registration of a Trade Union
shall not be deemed to have become invalid merely because
at any time after the date of the application, but before the
registration of the Trade Union, some of the applicants, but
not exceeding half of the total number of persons who made
the application, have ceased to be members of the Trade
Union or have given notice in writing to the Registrar
dissociating themselves from the application.
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(iv) Registered Trade Union shall at all time continue to have
not less than 10% or 100 workers, whichever is less subject
to minimum of 7 persons engaged or employed in an
industrial establishment or industry.
Section 8 - Application for Registration
1. Every application for registration shall be made to the
Registrar electronically or otherwise and be accompanied
by;
(a) a declaration by an affidavit in such form and
manner as may be prescribed;
(b) copy of the rules of the Trade Union together with a
copy of the resolution by the members adopting such
rules;
(c) a copy of the resolution adopted by the members
authorising the applicants to make an application for
registration; and
(d) in the case of a Trade Union, being a federation or a
central organisation of Trade Unions, a copy of the
resolution adopted by the members of each of the
member Trade Unions, meeting separately, agreeing
to constitute a federation or a central organisation of
Trade Unions.
2. Where a Trade Union has been in existence for more than
one year before the making of an application for its
registration, there shall be delivered to the Registrar,
together with the application, a general statement of the
assets and liabilities of the Trade Union prepared in such
form and containing such particulars, as may be prescribed.
3. Registrar may call for further information for satisfying
himself as to compliance and may refuse to register the
Trade Union until such information is furnished.
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4. If the name under which the Trade Union is proposed to be
registered is identical with that of an existing registered
Trade Union or in the opinion of the Registrar so nearly
resembles the name of an existing Trade Union that such
name is likely to deceive the public or the members of either
Trade Union, the Registrar shall require the persons
applying for altering the name of the Trade Union and shall
refuse to register the Trade Union until such alteration has
been made.
Section 14 – Recognition of negotiating union or negotiating
council
The Industrial Relations Code (IRC) addresses the
acknowledgement of negotiating unions or councils inside an
industrial establishment. It outlines the criteria for identifying
the exclusive bargaining union for workers, particularly in
instances where multiple trade unions are registered within the
business.
(i) Single Trade Union – In the event that a singular
registered trade union of workers is present within an
enterprise, the employer is obligated to acknowledge it as
the exclusive bargaining union, contingent upon specified
requirements.
(ii) Multiple Trade Unions and Negotiating Trade Union –
When multiple trade unions exist, the one having the
majority (51% or more) of workers on the muster roll
endorsing it will be acknowledged as the exclusive
bargaining union or Negotiating Union.
(iii) Negotiating Council – In the absence of a dominant trade
union, the employer establishes a negotiating council with
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representatives from trade unions that represent a
minimum of 20% of the workers on the muster roll.
Representation would be one representative for each
(iv) Prescribed criteria – The requirements for recognising a
trade union or creating a negotiating council shall be set
by the relevant government through established rules and
regulations.
(v) Any agreement is said to be reached by Employer and
Negotiating Council, if agreed by the majority of
representatives of the Trade Unions in such negotiating
council.
(vi) Recognition of Negotiation Union, Negotiating Council shall
be valid for 3 years from the date of recognition or
constitution and such period not exceeding 5 years in total
as may mutually agreed by employer and Trade Unions.
Section 15 – Objects of general fund, composition of separate
fund and membership fee of Trade Union
The Industrial Relations Code, 2020, pertains to the use of
general funds and the creation of distinct funds by registered
trade unions. It outlines the regulations concerning membership
fees.
(i) Objects of General Funds
The general funds of a recognised trade union may solely
be utilised for legally designated purposes.
(ii) Separate funds – A trade union may establish a separate
fund, financed by specific contributions, to advance the
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civic and political objectives of its members, in accordance
with stipulated regulations.
(iii) Membership and Contributions – No member can be
compelled to contribute to the separate fund, and
membership benefits shall not be denied for those who do
not contribute, save in relation to the governance of that
particular fund.
(v) Membership Fees – The membership fee amount shall be
prescribed by law.
Section 16 – Immunity from Civil Suit in certain cases
The Industrial Relations Code, 2020, pertains to the immunity
from civil litigation for registered trade unions and their members
under specific circumstances. It offers legal immunity for acts
done in furtherance of an industrial dispute, together with
restrictions on accountability for tortious acts committed by
agents of union.
Section 16 (1) explicitly stipulates that no lawsuit or legal action
may be initiated against a registered trade union, its officials, or
its members in civil court for actions related to an industrial
dispute involving a union member.
This protection persists even if the action causes another
individual to breach an employment contract or disrupts their
trade, business, or employment rights.
Section 16 (2) stipulates that a registered trade union is not
accountable for tortious acts committed by its agent in pursuit of
an industrial dispute if it is demonstrated that the agent acted
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without the union's knowledge or in contravention of its explicit
directives.
Section 17 – Criminal conspiracy in furtherance of objects of
Trade Union
The Industrial Relations Code, 2020, deals with criminal
conspiracy in furtherance of trade union objectives, specifically
focusing on the accountability of trade union members for
agreements associated with their union's aims / goals.
No office-bearer or member of a registered trade union shall be
penalised under a particular criminal code provision for
agreements made to advance the union's aims as outlined in
Section 15, unless the agreement entails the commission of a
crime.
Protection from Criminal Conspiracy charges – This clause
safeguards trade union members from prosecution under
criminal law for agreements related to their union's lawful
activity.
Exemption for Criminal Contracts – The protection does not
extend to agreements that involves the commission of an actual
criminal offence.
Section 18 – Enforceability of agreements
Although it indicates that agreements among registered trade
union members are not inherently void due to trade constraints,
it clarifies that civil courts cannot enforce agreements related to
the conditions of selling goods, conducting business, working,
employing, or being employed.
This clause is essential for understanding the legal recognition
and enforcement of agreements, particularly those inside trade
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unions, notably concerning employment and commercial
practices.
Non-voidability of Agreements – This clause guarantees that
agreements among trade union members remain legitimate
despite containing trade restrictions.
Civil Court Restrictions – Civil courts cannot enforce
agreements related to the conditions under which trade union
members sell commodities, conduct business, work, or are
employed.
This section exclusively pertains to agreements among trade
union members and does not influence the enforcement of other
agreements or contracts.
This clause seeks to advance the freedom of association and
collective bargaining in trade unions, while preventing civil courts
from becoming encumbered with the enforcement of specific
employment or business requirements.
This section, concerning the enforceability of agreements, must
be construed with other provisions of the Code, including those
related to dispute resolution and unfair labour practices.
Section 18 establishes a legal framework for trade union
agreements, recognising their autonomy while delineating the
constraints on their enforcement in civil court proceedings.
Section 21 – Disqualification of office-bearers of Trade
Unions
The Industrial Relations Code, 2020 outlines the disqualifications
for those seeking to be office-bearers or members of a recognised
trade union.
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It specifically prohibits ;
(i) anyone under the age of 18
(ii) those with a conviction for moral turpitude (unless five
years have elapsed since their release), and
(iii) those disqualified by a tribunal.
(iv) Furthermore, it prohibits members of the Council of
Ministers or anyone in office of profit (excluding
employment within the trade union's organisation) from
assuming office-bearer roles.
This provision seeks to guarantee that trade union leadership
consists of qualified and eligible personnel, free from any
disqualifications that could hinder their capacity to successfully
advocate for workers' interests.
Section 22 – Adjudication of disputes of Trade Unions
The Industrial Relations Code, 2020, addresses the resolution of
conflicts pertaining to trade unions, particularly those occurring
within the unions itself. It outlines the procedure for resolving
these internal disputes and prohibits civil courts from hearing
similar cases.
Adjudication of Trade Union Disputes
(i) Section 22 permits the resolution of disputes within trade
unions, encompassing those involving trade union
federations.
(a) Dispute between one trade union and another
(b) One or more workers who are members of trade
union (regarding registration, administration or
management or election of office-bearers)
(c) One or more members refused admission as
members of trade unions
(d) Dispute between federation of Trade union and office
bearers
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(ii) The Tribunal, possessing jurisdiction over the region of the
trade union's registered office, adjudicates these issues.
Exclusive Jurisdiction – No civil court, except the Tribunal, may
adjudicate any suit or proceedings pertaining to the conflicts
addressed in Section 22.
The application for adjudication must be submitted to the
Tribunal in a manner specified by the appropriate government.
Section 22 outlines a particular framework for adjudicating
internal conflicts within trade unions, ensuring resolution
through a designated tribunal rather than a general civil court
system.
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