Trade Unions ACT, 1926

 

Introduction

In the previous unit, we dealt with the Payment of Bonus Act. Besides the Bombay Industrial Relations Act, of 1946, and the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, of 1971, the Trade Unions Act, of 1926 is the only legal framework for the trade unions by conceding to workmen their right to association and organizing unions. It permits any seven persons to form their union and get it registered under the Act Registration of unions is optional and not compulsory. The National Commission on Labour (1969) recommended compulsory recognition of trade unions, but this recommendation is still under consideration by the Government. However, the (1982) amendment of the Industrial Disputes Act, of 1947, makes registration compulsory virtually by defining the term “Trade Union”, for the purposes of this Act, as a Union registered under the Trade Unions Act, of 1926. This gives Unions certain rights and immunities which unregistered Trade Unions do not enjoy. Therefore, workers tend to be members of registered trade unions. Besides specifying the procedure for registration of a union, this Act lays down the guidelines for the day-to-day working of the registered unions. The purpose of this Unit is to enable the students to comprehend basic expressions. At the end of this unit, you should be able to understand various concepts regarding The Trade Union Act.

Genesis of the Act

Trade union is a voluntary organization of workers pertaining to a particular trade, industry or company formed to promote and protect their interests and welfare by collective action. They are the most suitable organizations for balancing and improving the relations between the employer and the employees. They are formed not only to cater to the workers’ demands but also for inculcating in them a sense of discipline and responsibility.

In India, the first organized trade union was formed in 1918 and since then they have spread in almost all the industrial centres of the country. The legislation regulating these trade unions is the Indian Trade Unions Act, of 1926. The Act deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensuring that their funds are utilized properly. It gives legal and corporate status to registered trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on their legitimate activities for the benefit of the working class. The Act is applicable not only to the union of workers but also to the association of employers. It extends to the whole of India. Also, certain Acts, namely, the Societies Registration Act, 1860; the Co-operative Societies Act, 1912; and the Companies Act, 1956 shall not apply to any registered trade union, and the registration of any such trade union under any such Act shall be void.

The Act is administered by the Ministry of Labour through its Industrial Relations Division. The Division is concerned with improving the institutional framework for dispute settlement and amending labour laws relating to industrial relations. It works in close coordination with the Central Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets a stable, dignified and efficient workforce, free from exploitation and capable of generating higher levels of output. The CIRM, which is an attached office of the Ministry of Labour, is also known.

Objectives of Trade Union

They aim to:-

Secure fair wages for workers and improve their opportunities for promotion and training.

Safeguard the security of tenure and improve their conditions of service.

Improve the working and living conditions of workers.

Provide them educational, cultural and recreational facilities.

Facilitate technological advancement by broadening the understanding of the workers.

Help them in improving levels of production, productivity, discipline and a high standard of living.

Promote individual and collective welfare and thus correlate the workers’ interests with that of their industry.