Advantages of registered trade union under Trade Union Act 1926

Advantages of registered trade union under Trade Union Act 1926

Author: Brijraj Chauhan

College name: University of five year law college, Rajasthan University

Historically trade union or organized labour were outlawed all over the world since 14th century. There were guilds but they were also not very liberal. Workers in past were often exploited and rights never counted. However ‘Industrial Revolution’ and its after effects made workers realise their rights. In 18th century workers’ rights movements took place in Europe and changed the whole scenario. In India too workers moments started to get popular in 19th century. Every industrial city had its workers union. Gradually the workers union become political and led to 1000 strikes during 1920 – 24. The waves of strikes aggravated with the arrest of popular leaders in the infamous 'Cawnpore Conspiracy case' [1]in 1924 with union leaders being arrested and accused of attempting a Communist revolution like the Russian revolution. These political acts led to formulation of the Trade Union Act (1926) to create the rules for the regulation and monitoring of Trade Unions. Gradually number of unions grew and unions became more organized in India. Labour unions got influence over legislation process through their large numbers. In early decades of Independence significantly favourable social legislation was enacted to appease trade unions, labour unions who were organized and had large numbers.

Trade Unions

Today trade unions are registered under the Trade Union Act (1926). Ministry of Labour has all statistics for these trade unions. As per latest data, there are more 16,154 trade unions which had a combined membership of more than 9 million people.

According to the Australian Bureau of Statistics – “a trade union is an organization consisting predominantly of employees, the principal activities of which include the negotiation of rates of pay and conditions of employment for its member”

Today worker rights, labour laws are maintained in almost every democratic country. However implementation in countries like India is a problem.

In India, The Trade Union Act was passed in the year 1926 and became legally binding on 1st June 1927.

The Trade Unions Act was enacted to protect the interests of workers against select persecution and biased labor practice and to provide them a security cover to stand up for their interests and goals through the forming trade unions.

This act provides trade unions with power to form lawful organizations to enable collective bargaining for wages, interests, security etc. the act also gives registered trade unions certain protection and privileges. It also gives them some legal immunity in selected civil and criminal cases.

A definition on Trade unions[2] – “Trade Union can be a combination of temporary or permanent organization formed to adjust the relations between workmen and employers, between workmen and workmen or even between employers and employers”

Objectives –

1. To provide security to workers occupation. Give them job security.

2. Tom provide them legitimate wages for their work.Ensured wages hike at periodic intervals.

3. Securing influence over employers, workers, workers to get some descion making power.

4. Power to influence to influence government, as we read earlier trade unions with their large numbers have influence over government. An organized pressure group.

Advantages of being registered under Trade Union Act 1926[3]

1. A trade union acts as a body corporate.

2. It has a common seal and change in name, leader, group members does not affect it.

3. Now union can hold movable and immovable property.

4. It can enter into contract and agreements.

5. Now trade union can sue or be sued in the name of the trade union.

The rights and privileges under the act are

(a) Trade union is a body corporate

(b) It is allowed to keep separate fund for political activities

(c) It enjoys immunity from criminal conspiracies

Members of a registered trade union shall not be liable to punishment under sub-section (2) of Section 120 B of the Indian Penal Code, 1860 in terms of any agreement made between the members for the purpose of trade union.

Unless the agreement itself is an agreement to commit an offence. A trade union leader has no legal immunity against disobeying the orders of management or employers when they agree to terms and conditions. A trade union leader does not have any right by law to share managerial responsibilities.

(d) A trade union enjoys immunity from civil suits

No suit or other legal action shall be supportable in a civil court against any registered trade union or its registered member due to any act done during a trade dispute. However acts of violence and other illegal offences are not immune.

(e) Trade union members can choose to not accept employment

(f) It has a right to form a larger union or federation of unions

(g) Members of the union have a right to check books of the union

Members of trade union can inspect audits and list of members whenever they want

(h) Any person who has attained the age of more than 15 years can become the member of the union.

Any person who has attained the age of more than 15 years may be a member of a registered trade union. That person can enjoy all the rights of a member and execute all instruments of a member. However a person cannot hold office in trade union until attainment of 18 years of age.

Some cases on immunity of Trade union

In another leading case Rohtas Industries Staff Union v. State of Bihar, it was held that employers do not have the right to claim damages against the employee participation in an illegal strike and thereby causing loss of production and business.[4]

A trade union leader has no immunity against disobeying the orders of employers when they already accepted terms and conditions.A trade union leader or any worker doesnot have any right by law to share managerial responsibilities. In the case of West India Steel Company Ltd. v. Azeez 1990 kerala.[5]

Strike per se is not an actionable wrong and trade union officers and it members are immune against legal proceeding linked with the strike which confer in section 18.It was held in case P Mukundan and others v. Mohan Kandy Pavithran 1992 Kerala[6]

Conclusion

The trade union act became a good boon for the workers whose organization was outlawed for many centuries. Today their unions, movements are protected by the law. They have collective bargaining power. A labourer individually is nothing but collectively they can influence their employers, governments even the whole country. Trade Union act aims to protect workers from exploitation and allows them to form law abiding organisations. Overall it empowers their overall bargaining power.

[1] 16 Jan 2016, https://sreenivasaraos.com/tag/cawnpore-bolshevik-conspiracy-case/ [2] February 03, 2021, Trade Unions Act, 1926, https://www.helplinelaw.com/ [3] Chand Smiti, The Trade Union Act 1926: Advantages and Causes of Weakness, https://www.yourarticlelibrary.com/ [4] AIR 1963 [5] (1990) IILLJ 133 Ker [6] (1992) II L.L.J. 160 (Kerala)