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T.U ACT;IESO ACT;Contract labourRegulation and Abolition Act
V.Nagaraj
Professor of Law
National Law School of India universityBangalore
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Brief history
Black death in Britain 1348
Shortage of labour Increase in wages
Cost of production goes up
Regulations restricting negotiations on wages & serviceconditions
Employments were covered stage by stage
All employments were covered by 1640
Justices of peace was responsible for fixing &revisingwages as well as service conditions
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Inefficiency of the justices for peace
Evolution of Laissez-faire state
Legislations prohibiting wage negotiations andservice conditions
Unions were branded as illegal combinations-their actions were conspiracies
Illegal negotiations
Repressions by the state
Act of 1800 made all combinations ilegal
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1824 benthamite reformers recommended
removal all restrictions on combinations Industrialization also needed relaxation of
restrictions
State positively responded to this
Combination laws repeal Act,1824
Removed the anti combinations laws
However the Act did not permit violence,threatsor intimidation by the unions
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The 1825 Act penalized threats .violence Etc
The courts were developing the concept of common lawconspiracy
In walsby-V-Anley 1861, held it was unlawful for personsto combine to induce others to leave employment evenby peaceful means
Such peaceful persuasions were labeled as obstructionor molestation and punished
Practical effect workers could go on strike butthreatening to go on strike was illegal; peaceful picketingwas illegal
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The conservative judiciary developed the concept of civil
conspiracy and applied to TU Quinn- V- Leathem 1901 AC 495, held that the officers of
a trade union were liable in damages for combining toinjure their employer by threatening to go on strike
The prosecution was removed by law, common lawdeveloped the liability for damages
Taffvale railway-V-Amalgamated society of Railway
servants 1901 Ac 462, the TU funds were made liable forthe tortious acts of its servants or agents
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Trade disputes Act 1906 conferred immunity from
criminal conspiracy as well as immunity from civilconspiracy damages
Amalgamated Society of Railway Servants V- Osborne1910 AC 87- The House of Lords applied thelaw of
corporations and the doctrine of ultravires.
Raising of funds for political purposes & spending thesame for political purposes was held to be illegal
Trade union Act of 1913 reversed the same. Open shop and closed shop
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Brief Indian T U history
Compared to Britain it is very short
Indian industrialization started in the middle ofthe 19th century
Industrial workers were unskilled and migrated
from villages
The common law prevailed
In addition legislations were in favor of theemployers, like-
Workmen breach of contract Act 1859-
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Plantation Act 1863
IPC Chapter X1X regarding criminal breach ofcontract of service
Near conditions of slavery prevailed
Efforts of non governmental organizations toimprove the conditions
Mixing of labour movement and Independencemovement-political strike against lokamanyaTilaks imprisonment for 6 years
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Success of Russian revolution
ILO and the need to identify the Indian workersrepresentative
Strike in Bucking ham & Carnatic mills company
headed by B.P Wadia and the consequences
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Trade union Act 1926
This Act provides for
registration of Trade Unions immunities for the registered Trade Unions from
criminal conspiracy
civil liability for agreeing to go on strike and
breaking the contract of employment by going on strike
Buckingham and Carnatic Millsat Madras
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What is a Trade Union ?
Trade Union means
any combination, whether temporary or permanent, formed primarily for the purpose of regulating the
relations between workmen and employers
or between workmen and workmen or between employers and employees or
for imposing restrictive conditions on the conduct ofany trade or business and
includes any federation of two or more Trade Unions
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Trade disputemeans any dispute between
employers and workmen or between employersand employers or between workmen andworkmen which is connected with employment
or non ployment or the terms of employment orthe conditions of labour of any person
Workmen means all persons employed in trade
or Industry What is Industry?
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What is the meaning of the term Industry ?
Central Machine Tool Institute v. The Deputy Registrar of TradeUnions(1978) Lab.I.C. 1732,
the meaning of the term Industry used in the Trade Union Act is as wideas the meaning of the term Industry used in the Industrial Disputes Act.
These two legislations are in `pari materia
Therefore it is permissible to read the definition of Industry in theIndustrial Disputes Act into the Trade Union Act, 1926.
Hence the meaning of the word Industry in both the legislations is same
BWSSB v. Rajappacase (1978)2 SCC 213
if an organization is carrying on systematic activity,
with the cooperation of employer and employees
for the purpose of producing goods or rendering services or both, thenthat organization is a industry
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Who are workmen ?
Section 2(g), second part defines workmen
as meaning all persons employed in Trade or Industry whether or not in the employment of the employer
with whom the trade dispute has arisen
The definition of workmen is very wider. The only limitation is that they must be employed in
trade or industry
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Who can form TU ?
All persons employed in trade or industry canform trade union
In fact right form TU or associations is a FR
under the constitution All employees can form unions going by the
Constitution
Registering a TU under the TU Act requires thatpersons employed in trade or Industry can formTU & Get them registered
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Before registering a TU forming a TU is required
Employees having common ideology & commonobjectives can come together and form tradeunion.
Such TU may be temporary or permanent Registration is necessary and important if the
facilities offered by the TU Act are required to be
enjoyed
The most important aspect is immunities
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Mode of registration
Any 7 or more members by signing the
application can apply for registration After submitting the application even if not more
than 50% of the subscribers withdraw theirsubscription still the application is valid
The amendment made in 2001 requires that inan industrial establishment from where theapplication for registration is made that union
must have a membership of 10% of the totalnumber workers or 100 members whichever isless
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Application for registration must be made to the
registrar of TU It must be accompanied by a copy of the rules of
the TU and a statement of the fallowing
particulars The names, occupations and addressees of the
members making the application
The name of the TU and address of its headoffice
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The titles of the office bearers, names, ages,
addresses and occupations of the officebearers If that TU has been in existence for ore than 1
year before the making of the application then
the application must be accompanied by ageneral statement of assets and liabilities
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Provisions to be contained in the rules of the
TU
Name of the TU
Objects for which the TU is formed The purpose for which the general funds of the TU will
be spent-see SECTION15
Maintenance of a list of members of the TU and facilitiesfor inspection of the same by the office bearers and themembers of the TU
Admission of ordinary members-who shall be members
employed in the Industry Admission of honorary members to form the executive of
the TU
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Payment of subscription subject to statutory minimum
The conditions subject to which the members are entitled to any
benefits provided in the rules When the members may forfeit their benefits
Imposition of any fines on the members
Procedure for amending the rules or rescinding the rules
Appointment or removal of the office bearers Safe custody of the trade union funds
Annual audit and adequate facilities for the inspection of accountsbooks by the office bearers and members
The manner in which the TU may be dissolved
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Disqualifications of office bearers of TU
The disqualification is both for initial appointment
well as continuation- Who has not attained the age of 18 years
Who has been convicted by a court in India of
any offence involving moral turpitude andsentenced to imprisonment-this disqualificationceases after 5 years of his release
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Powers of the registrar of TU-Sections 7,8,9&10
Sec 11 appeal All communications and notices to a registered
TU may be addressed to its registered office
Notice of change of registered office shall begiven with in 14 days of such change to theregistrar of TU
Every registered Tu shall be a body corporate bythe name under which it is registered
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Section 15 objects on which the general funds of
the T U may be spent Section 16- constitution of separate funds for
political purposes
Contribution to political funds is not a conditionprecedent to get membership of a TU
No compulsion to contribute to political funds
No discrimination between those who arecontributing to political funds and those who arenot except the control of the political funds
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Rights of Minors in TU
Sections 20&21- Any person who has attained the age of 15 years may
be a member of a Registered TU This is subject to the rules of the TU The rules may not permit membership There is no right to membership Those who have not attained the age 18 years cannot be
become office bearers Minors are entitled to inspect the accounts books of a TU
also the List of members These shall be kept open for inspection as per the rules
of the TU
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Immunity from criminal liability
Section 17
No office bearer or member of a registered TradeUnion
shall be liable to punishment under sub-section (2) ofSection 120B of the Indian Penal Code, in respect ofany agreement made between the members for thepurpose of furthering any object of the Trade Unionas is specified in Section 15 of the Trade Union Act
unless the agreement is an agreement to commit anoffence
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The very act of the workers going on strike is a breach ofcontract of employment.
Breach of contract of employment gives rise to civilaction for damages
. According to Section 43 of the Indian Penal Code anythingwhich furnishes a ground for civil action is illegal.
So going on strike which gives rise to a civil action fordamages is illegal.
Section 120A of the Indian Penal Code if two or more persons agree to do or cause to be done an illegal act, it is
criminal conspiracy for which the punishment
Hence, in the absence of immunity from criminal liability workersagreeing to go on strike would amount to criminal conspiracy
and it would also give rise to civil action for damages, because of
breach of contract.
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Jay Engineering works-V-State of WB-the
petitioner company retrenched some of itsworkmen. The retrenched workmen along withother workmen blocked the companies premises
completely obstructing the passage of personneland goods. In this case the court has explained
the immunity from crimes and criminal
conspiracy
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Rohtas industries ltd-v-Rohtas Industries
Industries Staff union AIR 1976 SC 425 Workers went on illegal strike
Whether they are entitled to immunity from
criminal conspiracy under the TU Act
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Federation of western India Cine employees-
v- Filmalaya pvt ltd (1981)2 LLj393 BOM-thecourt has explained the immunity from civilliability
Chandrana Bros V-K. Venkata Rao 1976(1)Kar.L.J 245
Rohtas Industries ltd-v- Rohtas Industries staff
Union AIR 1976 S.C 425
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immunities and picketing
Damodar Ganesh v. State, AIR 1961 Bom 459,
the marching to and fro before the premises of an establishmentinvolved in a dispute,
generally accompanied by the carrying and display of a sing,placards or banner bearing statements in connection with thedispute.
Picketing may be accompanied by a polite request askingpersons in the employment of the establishment not to assist inthe running of that establishment o
customers not to patronize that establishment
Such acts are protected under Section 18 of the Trade Union Actas long as they are lawful and peaceful
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Qualifications of office bearers
To be a member of the executive or any office
bearer of a registered Trade Union, one must have completed the age of 18 years.
He should not have been convicted by a court inIndia of any offence involving moral turpitude andsentenced to imprisonment
This disability will cease if a period of five years haselapsed since his release from prison
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Multiplicity and Recognition
There is no law requiring compulsory recognition of Trade Unions.
there is no statutory law requiring recognition of Trade Unions,
generally there will be settlements reached between the employerand employees for recognition of Trade Unions.
Schedule V of the Industrial Disputes Act relating to unfair labourpractices only says that it is unfair labour practice to refuse tobargain collectively in good faith with the recognised Trade Unions
. Similarly, it is an unfair labour practice for a recognised TradeUnion to refuse to bargain collectively in good faith with theemployer.
An unfair labour practice is an offence under the Industrial Disputes
Act, punishable with imprisonment for a period which may extend to six
months or with fine which may extend to one thousand rupees orwith both.
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identifying the majority union
1. Verification Method
2. Check-off Method3. Secret Ballot Method
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Rights of Recognised Unions [contd.]
To discuss with the employer or any person appointedby him the grievance of its members;
To nominate its representatives on the grievancecommittee;
To nominate its representatives on the Joint
Management Councils; To nominate its representatives on non-statutory
bipartite committees like Production Committee, Welfare
Committee, Canteen Committee, etc.
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