HISTORY OF TRADE UNION
The first trade union was started in 1877 in Nagpur
It was this labourprotest on an organized scale, through the support
of some philanthropic personalities, that organized labourunions
came to be formed
The setting up of large-scale industrial units, created conditions of
widespread use of machinery, new lines of production, and brought
about changes in working and living environment of workers, and
concentration of industries in large towns
The first Factory’s Act was passed in 1881 by N.M. Lokhode
In 1919 Madras LabourUnion was the first Union in India to be
formed and established by B. P. Vadia
Bombay Trade Union formed in 1975 under the leadership of
SorabjeeShapurjeeBengatee
TRADE UNION MOVEMENT
GROWTH
Social Welfare Period (1875-1918)
•Thedevelopmentofindustriesledtolarge-scaleproductionontheonehandandsocialevils
likeemploymentandexploitationofwomenandchildlabourandthedeplorableworkable
conditions,thegovernment’sattitudeofcompleteindifferenceinrespectofprotectionof
labourfromsuchevils,ontheother.
Early Trade Union Period(1918 -1924)
•Theyear1918wasanimportantonefortheIndiantradeunionmovement.
•Theindustrialunrestthatgrewupasaresultofgraveeconomicdifficultiescreatedbywar.
Therisingcostoflivingpromptedtheworkerstodemandreasonablewagesforwhich
purposetheyunitedtotakeresorttocollectiveaction.
Left-Wing Unionism Period (1924 -1934)
•In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution,
conviction and imprisonment of many communist leaders. The rapid growth of the trade
unionism was facilitated by several factors
TRADE UNION MOVEMENT
GROWTH
Trade Union’s Unity Period (1935 -1938)
•In mid-thirties the state of divided labour movement was natural thought undesirable
and soon after the first split, attempts at trade union unity began to be made through
the efforts of the Roy Group on the basis of ‘a platform of unity’.
Second World War Period (1939 -1945)
•TheSecondWorldWar,whichbrokeoutinSeptember1939,creatednewstrainsinthe
unitedtradeunionmovement.
•Hence,againarifttookplacein1941andtheRadicalslefttheAITUCwithnearly200unions
withamembershipof3,00,000andformedanewcentralfederationknownastheIndian
FederationofLabour
ThePost-Independence Period(From1947to-date)
•Aspointedoutearlier,whenattemptstorestructuretheAITUCfailed,thosebelievinginthe
aimsandidealsotherthanthoseoftheAITUCseparatedfromtheorganizationand
establishedtheIndianNationalTradeUnionCongress(INTUC)inMay,1947
•The most widely-quoted definition of a trade
union is that by British labour historians and
theoreticians Beatrice and Sidney Webb, from
their book A History of Trade Unions,
published in 1920. They define a trade union
as "a continuous association of wage-earners
for the purpose of maintaining and improving
the conditions of their working lives".
Purpose of Trade Unions
•Employment Protection and Job Creation.
•Economic Protection.
•Social Status & Identity.
•Democratic Institution
•Transformation.
•Sustainable Development.
Why do people join Union?
•Greater Bargaining Power
•Minimize Discrimination
•Sense of Security
•Sense of Participation
•Sense of Belongingness
•Platform for self expression
•Betterment of relationships
SPECIFIC FUNCTIONS OF UNIONS
•Wage & salary bargaining
•Fight for continuous improvement in
employee benefits
•Improving working conditions at work place
•Improving welfare, healthcare & recreation
facilities, and leisure at workplace
•Increasing rest periods, holidays, paid leave
and time-offs
SPECIFIC FUNCTIONS OF UNIONS
•Decreasing working hours, work load esp.
manual, and hazardous working conditions
•Improving career and salary rise prospects &
job security
•Protecting employees against arbitrary /
unjust actions of Management
Functions of Trade unions
•(i) Militant functions
(a) To achieve higher wages and better working
conditions
(b) To raise the status of workers as a part of
industry
(c) To protect labors against victimization and
injustice
(ii) Fraternal functions
•To take up welfare measures for improving the
morale of workers
•To generate self confidence among workers
•To encourage sincerity and discipline among workers
•To provide opportunities for promotion and growth
•To protect women workers against discrimination
Importance Of Trade Unions
•Trade unions help in accelerated pace of economic
development in many ways as follows:
•by inculcating discipline among the workforce
•by enabling settlement of industrial disputes in a rational
manner
•by helping social adjustments. Workers have to adjust
themselves to the new working conditions, the new rules and
policies. Workers coming from different backgrounds may
become disorganized, unsatisfied and frustrated. Unions help
them in such adjustment.
Contd….
Social responsibilities of trade unions include:
•promoting and maintaining national
integration by reducing the number of
industrial disputes
•incorporating a sense of corporate social
responsibility in workers
•achieving industrial peace
Objectives
•Representation
•Negotiation
•Voice in decisions affecting workers
•Member services
(a)Education and training
(b)Legal assistance
(c)Financial assistance
(d)Welfare benefits
•All India Bank Officers Confederation-AIBOC is the premier organization
of Bank Officers in India.
•All India State Government Employees Federation-AISGF is a trade union
organization representing state employees and teachers of different
states in India.
•National Confederation of Officer's Association -NCOA represents the
managerial and supervisory staff of the Indian government owned public
Enterprises.
At present there are twelve Central Trade Union Organizations in India:
•All India Trade Union Congress (AITUC)
•Bharatiya Mazdoor Sangh (BMS)
•Centre of Indian Trade Unions (CITU)
•Hind Mazdoor Kisan Panchayat (HMKP)
•Hind Mazdoor Sabha (HMS)
•Indian Federation of Free Trade Unions (IFFTU)
•Indian National Trade Union Congress (INTUC)
•National Front of Indian Trade Unions (NFITU)
•National Labor Organization (NLO)
•Trade Unions Co-ordination Centre (TUCC)
•United Trade Union Congress (UTUC) and
•United Trade Union Congress -Lenin Sarani (UTUC -LS)
Trade Union Act 25 March 1926
•The trade Unions Act, 1926 provides for registration of trade
unions with a view to render lawful organisation of labour to
enable collective bargaining. It also confers on a registered
trade union certain protection and privileges.
•The Act extends to the whole of India and applies to all kinds
of unions of workers and associations of employers, which
aim at regularizing labor management relations. A Trade
Union is a combination whether temporary or permanent,
formed for regulating the relations not only between
workmen and employers but also between workmen and
workmen or between employers and employers.
•The Act provides for the registration of the trade unions
with the 'Registrars of Trade Unions' set up in different
States, like the Office of Registrar (Trade Union)set up
by the Government of National Capital Territory of Delhi.
For registration of a trade union, seven or more
members of the union can submit their application in the
prescribed form to the Registrar of trade unions. The
application shall be accompanied by a copy of the 'rules
of the trade union' and a statement giving the following
particulars:-(i) Names, occupations and addresses of
the members making the application; (ii)The name of the
trade union and the address of its head office; (iii) The
titles, names, ages, addresses and occupations of the
office bearers of the trade union as per the format given
in the Trade Unions Act 1926 .
•The Registrar, on being satisfied that the Union has
complied with all the requirements of this Act, shall
register the trade union. Thereafter, it shall issue a
certificate of registration in the prescribed form as a
conclusive evidence of registration of that trade Union
Trade Unions
•According to Trade Union act 1926"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 employers, or for imposing
restrictive conditions on the conduct of any trade or
business
•Their primary function is to protect the interests of
workers against discrimination and unfair labor
practices.
Chapter I: Preliminary
22
‘An act to provide for the registration of Trade Unions and in certain
respects to define the law relating to registered Trade Unions.’
23
Section 1: Short title, extent and commencement
It extends to the whole of India.
24
Section 2: Definitions
Appropriate Government: For the trade unions whose objects are not
confined to one state, the appropriate government will be the Central
Government, for others it’ll be the State Government.
Trade dispute: It means any dispute between employers and workmen or
between workmen and workmen, or between employers and employers
which is connected with the employment, or non-employment or the
conditions of labour, of any person.
Workmen: Means all persons employed in trade or industry whether or
not in the employment of the employer with whom the trade dispute
arises.
26
Trade Union: It means combination whether temporary or permanent
formed primarily for the purpose of
–regulating the relations
–for imposing restrictive condition on the conduct of any trade or business,
–can be between workmen and employers or between workmen and workmen,
or between employers and employers
It can include any federation of two or more Trade Unions.
27
Chapter II: Registration of Trade
Unions
28
Section 3: Appointment of Registrars
The appropriate Government appoints a person to be the Registrar of
Trade Unions for each State. It may also appoint Additional and Deputy
Registrars of Trade Unions.
29
Section 4: Mode of registration
Any seven or more members of a Trade Union may apply for registration of
the Trade Union under this Act:
–by subscribing their names to the rules of the Trade Union
–and by complying with the provisions of this Act with respect to registration.
An application for the registration of a Trade Union shall not become
invalid merely for the reason that at any time after the date of the
application, but before the registration of the Trade Union some of the
applications (not exceeding half of the total number of the persons who
made the application) have ceased to be members of the Trade Union.
30
Section 5: Application for registration
Application for registration of a Trade Union shall be made to the Registrar
and shall be accompanied by:
–copy of the rules of the Trade Union
–statement of the following particulars, namely:-
•The names, occupations and addresses of the members making the application.
•The name of the Trade Union and the address of its head office.
Where a Trade Union has been in existence for more than one year before
the making of an application for its registration it needs to submit a
statement of the assets and liabilities held by it.
31
Section 6: Provisions to be contained in the rules of
Trade Union
A Trade Union shall not be entitled to registration under this Act, unless
the executive is constituted in accordance with the provisions of this Act,
and the rules provided for following matters:
–the name of the Trade Union
–the object for which the Trade Union has been established
–the purposes for which the general funds of the Trade Union shall be
applicable.
–The maintenance of a list of the members of the Trade Union and adequate
facilities for the inspection thereof by the members of the Trade Union;
–The admission of ordinary members who shall be persons actually engaged or
employed in an industry with which the Trade Union is connected, and also
the admission of the number of honorary or temporary members as to form
the executive of the Trade Union
32
•The payment of a subscription by members of the Trade
Unionwhich shall be not less than twenty five paisa per
month per member
•The conditions under which any member shall be entitled to
any benefit assured by the rules and under which any fine or
forfeiture may be imposed on members;
•The manner in which the members of the executive and the
other members of the Trade Union shall be appointed and
removed;
•The safe custody of the funds of the Trade Union, and annual
audit, in such manner as may be prescribed, of the account
books by the act and members of the Trade Union; and
•The manner in which the Trade Union may be dissolved.
33
Section 7: Power to call for further particulars and to
require alteration of name
•The Registrar can call for further information for the purpose
of checking the compliance of the application with respect to
Sec 5 and Sec 6 of the Trade Union Act.
–He may refuse to register the Trade Union until such
information is supplied.
•If the name under which a Trade Union is proposed to be
registered is identical or it nearly resembles with that of any
other existing Trade Union, the Registrar shall require the
persons applying for registration to alter the name of the
Trade Union stated in the application.
34
Section 8: Registration
The Registrar, on being satisfied that the Union has complied
with all the requirements of this Act in regard to registration,
shall register the Trade Union.
Note:
This section is mandatory. The Registrar cannot refuse to
register a Trade Union if the application for registration
complies with the technical requirement as laid down in this
Act.
35
Section 9: Certificate of Registration
The Registrar registering a Trade Union under Section
8, shall issue a certificate of registration which shall
be conclusive that the Trade Union has been duly
registered under this Act.
36
Section 10: Cancellation of Registration
A certificate of registration of a Trade Union may be withdrawn or
cancelled by the Registrar:
–On the application of the Trade Union
–If the Registrar is satisfied that the certificate has been obtained by fraud or
mistake
–or that the Trade Union has ceased to exist or
–has willfully and after notice from the Registrar contravened any provision of
this Act or allowed any rule to continue in force which is inconsistent with any
such provision, or has rescinded any rule providing for any matter, provision
for which is required by this Section
•Provided that not less than two months previous notice in writing
specifying the ground on which it is proposed to withdraw or cancel the
certificate shall be given by the Registrar to the Trade Union before the
certificate is withdrawn or cancelled
37
Section 11: Appeal
Any person aggrieved by any refusal of the Registrar to register a Trade
Union or by the withdrawal or cancellation of a certificate of registration
may appeal to the prescribed courts.
The Appellate Court may dismiss the appeal, or pass an order directing the
Registrar to register the Union and to issue a certificate of registration or
setting aside the order for withdrawal or cancellation of the certificate, as
the case may be, and the registrar shall comply with such order.
38
Chapter III: Rights and Privileges of
registered trade unions
39
1. Section 13: Incorporation of registered Trade
Unions
Every registered Trade Union:
–shall be a body corporate by the name under which it is
registered
–shall have perpetual succession and a common seal
–power to acquire and hold both movable and immovable
property
–it can, by the said name sue and be sued.
40
2. Section 16: Constitution of a separate fund for
political purposes
A registered Trade Union may constitute a separate fund, from which
payments may be made, for the promotion of the civic and political
interest of its members.
–No member shall be compelled to contribute to the fund.
–Member who does not contribute to the said fund shall not be excluded from
any benefits of the Trade Union
–Contribution to the said fund shall not be made a condition for admission to
the Trade Union.
41
3. Immunity from punishment foe criminal
conspiracy (Sec.17)
•4. Immunity from civil suits ( Sec.18)
•5. Enforceability of agreements (Sec.19)
•6. Right to inspect books of Trade Union
(Section 20)
•7. Rights of minors to membership of Trade
Union (Section 21)-Any person who has attained the age of fifteen
years may be a member of registered Trade Union subject to any rules of the Trade
Union to the contrary
42
Duties and liabilities of registered
trade unions
43
1. Section 12: Change of Registered office
All communications and notice to a registered
Trade Union may be addressed to its
registered office.
–Notice of any change in the address of the
head office shall be given within fourteen
days of such change to the Registrar in
writing.
44
2. Section 15: Objects on which general funds may be
spent
•The payment of salaries, allowances and expenses to office bearers of the
Trade Union.
•The payment of expenses for the administration of the Trade Union
including audit of the accounts of the general funds.
•The compensation to members for loss arising out of trade disputes;
•Allowance to members or their dependants on account of death, old age,
sickness, accidents or unemployment of such members;
•The provision of educational, social or religious benefits for members or
for the dependants of members;
•The upkeep of a periodical published mainly for the purposes of discussing
questions affecting employers or workmen;
45
3. Section 16: Constitution of a separate fund for
political purposes
A registered Trade Union may constitute a separate
fund, from which payments may be made, for the
promotion of the civic and political interest of its
members.
•The payment of any expenses incurred by a
candidate
•The holding of any meeting, distribution of any
literature or documents
•The maintenance of any person who is a member of
any legislative body
46
4. Section 22: Proportion of office-bearers to be
concerned with the industry
Not less than one half of the total number of the
office bearers of every registered Trade Union shall
be persons actually engaged or employed in an
industry with which the Trade Union is connected.
5. Returns Sec.28
Every registered Trade Union is required to send a
general statement, of all receipts and expenditure
audited in the prescribed manner, to the Registrar
annually on or before such date as may be prescribed
of during the year
47
6. Section 21A: Disqualification of office bearers of
Trade Union
A person shall be disqualified for being chosen as, and for being a member
of the executive or any other office-bearer or registered Trade Union if-
–He has not attained the age of eighteen years;
–He has been convicted by a Court in India of any offence
involving immorality and sentenced to imprisonment,
unless a period of five years has elapsed since his release.
48
Section 23: Change of name
Any registered Trade Union may, with the consent of not less
than two-thirds of the total number of its members and
subject to the provisions of Section 25 change its name.
Sec.25: Notice of change of name
Sec.26: Rights and obligations to remain unaffected.
49
Section 24: Amalgamation of Trade Union
Any two or more registered Trade Unions may become amalgamated
together as one Trade Union provided that the votes of at least one-half of
the members of each such Trade Union is recorded, and that at least sixty
percent of the votes recorded are in favour of the proposal.
50
Section 25: Notice of change of name or
amalgamations
Notice in writing of every change of name and every amalgamation shall
be sent to the Registrar, signed,
–in the case of change of name, by the Secretary an by seven members of the
Trade Union changing its name
–in the case of an amalgamation by the Secretary and by seven members of
each and every Trade Union which is amalgamating.
51
Section 26: Effects of change in name and of
amalgamation
The change in the name of a registered Trade Union shall not effect
–any rights or obligation of the Trade Union
–or render defective any legal proceeding by or against the Trade Union,
–legal proceeding may be continued in its new name.
An amalgamation of two or more registered Trade Unions shall not
prejudice any right of any such Trade Unions or any right of a creditor or
any of them.
52
Section 27: Dissolution
When a registered Trade Union is dissolved, notice for the dissolution
signed by seven members and by the Secretary of the Trade Union shall,
within fourteen days of the dissolution, be sent to the Registrar.
Where the dissolution of a registered Trade Union has been registered and
the rules of the Trade Union do not provide for the distribution and funds,
the Registrar shall divide the funds amongst the member in such manner
as may be prescribed.
53
Central trade union recognition
•The union should have five lakh membership
•Must have members from at least four states
54
Chapter IV: Regulations
55
Section 29: Power to make regulations
The appropriate Government may make regulations for the purpose of
carrying into effect the provisions of this Act. Such regulations may
provided for all or any of the following matters:
–The manner in which Trade Union and the rules of Trade Unions shall be
registered and the fees payable on registration;
–The transfer of registration in the case of any registered Trade Union which
has changed its head office from one State to another;
–The manner in which, and the qualifications of persons by whom, accounts of
registered Trade Unions or of any class of such Unions shall be audited;
56
Section 30: Publication of regulations
•The Power to make regulations conferred by section 29 is subject to the
condition of the regulations being made after previous publications.
•Regulations so made shall be published in the Official Gazette and on such
publication shall have effect as if enacted in this Act.
57
Chapter V Sec 31-33
Penalties and Procedure
•Failure to submit returns ( Sec.31)
•Supplying false information regarding trade
union ( Sec.32)
•Cognizance of offence (Sec.33)
58
The Indian National Trade Union Congress
Origin:
TheINTUCcameintoexistenceon4thMay,1948,asaresultoftheresolutionpassedon17th
November1947,bytheCentralBoardoftheHindustanMazdoorSevakSangh,whichwasa
labourleaderontheGandhianPhilosophyofSarvodaya
Objectives:
Toestablishanorderofsocietywhichisfreefromhindrancestoanall-rounddevelopmentof
itsindividualmembers,whichfostersthegrowthofhumanpersonalityinallitsaspects,and
whichgoestotheutmostlimitinprogressivelyeliminatingsocial,politicaloreconomic
exploitationandinequality,theprofitmotiveintheeconomicactivityandorganizationof
societyandtheanti-socialconcentrationofpowerinanyform;
toplaceindustryundernationalownershipandcontrolinasuitableform;
tosecureincreasingassociationofworkersintheadministrationofindustryandtheirfull
participationinthatcontrol;
All-India Trade Union Congress (AITUC)
Origin:
Itwasestablishedin1920asresultofaresolutionpassedbytheorganizedworkersofBombay
andthedelegateswhichmetIaconferenceon31stOctober,1920.
Objectives:
toestablishasocialiststateinIndia;
tosocializeandnationalizemeansofproduction,distributionandexchange;
toimprovetheeconomicandsocialconditionsoftheworkingclass;
towatch,promote,andfurthertheinterests,rights,andprivilegesoftheworkersinall
mattersrelatingtotheiremployment;
tosecureandmaintainfortheworkersthefreedomofspeech,freedomofpress,freedomof
associationfreedomofassembly,therighttostrike,andtherighttoworkandmaintenance;
toco-ordinatetheactivitiesofthelabourunionsaffiliatedtotheAITUC;
toabolishpoliticaloreconomicadvantagebasedoncaste,creed,community,raceorreligion;
tosecureandmaintainfortheworkerstherighttostrike
68
Suggestions for Healthy growth of Unions
•One Union Per Industry
•Paid Union Officials
•Development of Internal Leadership
•Recognition of Trade Unions
•Improved Financial condition
68
CONCLUSION
•Trade Union is an important factor of the
current society, as it safeguards the basic
interest and needs of both the employees as
well as employers, by giving better terms and
conditions of employment, secured jobs,
better wages, favorable working environment
which in turn leads to desired profitability.