Industrial_relations - TU

7/31/2019 Industrial_relations - TU

1/42

T.U ACT;IESO ACT;Contract labourRegulation and Abolition Act

V.Nagaraj

Professor of Law

National Law School of India universityBangalore


2/42

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


3/42

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


4/42

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


5/42

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


6/42


7/42

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


8/42

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


9/42

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-


10/42

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


11/42

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


12/42

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


13/42

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


14/42

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?


15/42

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


16/42

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


17/42

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


18/42

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


19/42

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


20/42

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


21/42

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


22/42

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


23/42

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


24/42

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


25/42

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


26/42

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


27/42

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


28/42


29/42

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


30/42

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.


31/42

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


32/42

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


33/42


34/42

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


35/42

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


36/42


37/42

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


38/42

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.


39/42

identifying the majority union

1. Verification Method

2. Check-off Method3. Secret Ballot Method


40/42


41/42

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.


42/42

Industrial_relations - TU

Documents

Transcript of Industrial_relations - TU