Evolution of Industrial Relations

What are Industrial Relations?

Industrial relations define relationships between employers and employees toward each other in terms of supervision, direction, planning and coordination of organizational activities, with minimal human effort and functions; all this done with an enthusiastic spirit taking into consideration the safety of all employees. Industrial relations may also be defined as relations between employees and management.

Evolution of Industrial Relations:

The evolution of industrial relations in India began a long time ago. The caste system greatly influenced the ancient industries and their development. Due to successive foreign invasions in India, the living conditions of slave and artesian couldn't be differentiated. Furthermore, under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages were not guaranteed, the living conditions of workers were harsh, and there was no proper management. The coming of the British didn't improve the working conditions. After some time, however, most Indian industries were modeled after the British system of business, and this led to growth in various sectors.

Industrial Relations under British Rule:

During British rule, India was expected to be a colonial market for British goods up until a cotton mill was established in Mumbai in 1853 and a jute mill was established in Kolkatta in 1955. The working conditions of workers, however, were still very harsh with low pay, and this gave rise to various disputes involving the management and employees. On the other hand, Tata Iron and Steel industry was also established in Jamshedpur in 1911. While there was great demand of iron and steel before and during the First World War, the working conditions of workers hadn't improved. Hence, the Factories Act of 1881 was established, and it granted workers certain rights.

Industrial Relations in First World War:

The First World War was an opportunity in disguise for local factories in India. Prices of virtually all products went up and profits soared, however, wages of lower employees were still the same. There were various strikes and disputes between management and employees. During this time, the Workmen's Compensation Act (1923), the Trade Union Act (1926), and the Trade Disputes Act (1917) were established. While the wages of employees remained the same, they were given a certain share of profits made by their hiring industry. Strikes, however, were sometimes prohibited under the Emergency Rules. The years following World War II involved the most workers' upheaval, and saw the establishment of Industrial Employment Act (1946) and Industrial Disputes Act (1947).

Post-Independence Industrial Relations:

The post-independence era saw a developing relation between industry and labor. A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and industry. While industrial relations in India have evolved a long way, some features of the early system still exist today. Modern industrial relations are dynamic, and may integrate industrial policies of American and British businesses.

Tripartite , Bipartite Bodies, and Industrial Settlement

Tripartite Bodies:

The principals and policies of the tripartite body have been a machinery of consultancy at the industrial and national levels. The tripartite body was established to make peace and improve relations between management and unions, and maintain smooth functioning of union management relations. It began as a statutory organization by the recommendation of the Whitey Commission to the ILO in 1931. The tripartite body had to be sufficiently large to ensure sufficient representation of the various interests involved; encourage representatives of employers, labor and government to meet regularly; and disallow individual members from making individual contributions to meetings.

Purpose of Tripartite Body:

a. Bring the aggravated parties together for mutual settlement of differences, and encourage a spirit of cooperation and goodwill.

b. Promote uniformity in labor laws and legislation.

c. Discuss all matters of All India importance as between employers and employees.

d. Determine a plan for settlement for all disputes.

Bipartite Bodies:

With the beginning of industrialization of India, labor relations in Indian industries have also been largely influenced by Indian democracy. Groups like Works Committee and Management Council were established to democratize Indian industrial relations. The bipartite consultation machinery was established around 1920, during the time when a few joint committees were setup by the Government of India. These joint committees were also introduced in TISCO in Jamshedpur.

Fundamentals of Industrial Settlement:

1. Both parties have to realize that the country is breaking away from the past, and this is going to put continuous pressure on the quality of man-power and demands from human resources.

2. Both parties have to realize that to run a successful and profitable business, team work is extremely important. This gives rise to timely response and supply of goods to the society.

3.Both the parties accept the charters of "Human Resources Policy" summarized below:

a. Individuals must make every effort to improve their job skills through training and participating in developmental activities.

b. Each employee must keep his/her job skills up-to-date with changing business practices and operations.

c. Machineries should be used throughout the year with trained staff readily available to operate it.

d. Indirect employees may be converted to direct employees for increasing business efficiency.

e. Absenteeism and unnecessary delays must be reduced through planning.

f. Short-term employment must be avoided. Long-term employment should be encouraged and highly trained employees must be hired.

g. The above steps must be utilized to increase company productivity; exploitation of employees must be disallowed.

h. High emphasis must be placed upon the quality of work. The Zero Defect policy must be always followed.

i. Employees must make a stand to follow the "Human Resources Policy" individually or collectively.

j. Both the parties should closely and routinely monitor change in productivity, and take necessary steps to avoid undesirable consequences.

Concepts in Industrial Relations

Industrial relations is a post-industrial revolution term that replaced the expression "master-servant" used to define the relationship between a worker and an employer. Its origins are, as the term indicates, based on the proliferation of large-scale industry from the mid-18th to the mid-19th century. Contemporary industrial relations still refers to the employment relationship and the business unit that manages the employment relations, personnel or human resources. It often includes labor unions as parties to that relationship.

Industrial Relations Versus Employee Relations

Creating a distinction between industrial relations and employee relations is a fundamental concept in this area. Industrial relations generally refers to the laws, duties and employer and labor union obligations in a union work environment. Employee relations typically refers to laws, duties and employer obligations in a nonunion work environment. Industrial relations commonly involves three parties: the employee, employer and the union. With employee relations, just the employee and employer are parties to the working relationship.

Employment Laws Versus Labor Laws

Many HR practitioners and lawyers make the distinction between employment laws and labor laws. Labor laws -- such as the National Labor Relations Act of 1935, the Taft-Hartley Act of 1947 and the Labor-Management Reporting and Disclosure Act of 1959 -- are most applicable to industrial relations matters. Employment laws distinguished from labor laws include Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 and the Americans with Disabilities Act of 1990. Both types of laws apply to union and nonunion work environments, but in a unionized work environment, labor laws are often more relevant in resolving labor-management issues. Despite the distinction, the terms "labor laws" and "employment laws" may be used interchangeably to refer to all workplace laws and regulations.

Concerted Activity

The National Labor Relations Act protects the rights of union and nonunion employees to engage in or refrain from concerted activity. Concerted activity refers to employees addressing their concerns as a group -- regardless of whether they have union representation -- rather than individually. The act protects the rights of employees who want union representation as well as the rights of employees who would rather handle workplace issues without union representation. The act prohibits employers and labor unions from engaging in misconduct or coercive tactics to influence employees to support management or organized labor.

Collective Bargaining

Collective bargaining is the process that labor unions and employers participate in to negotiate a labor union contract. These contracts also are called collective bargaining agreements. They are negotiated for a finite period, usually two to four years, and intended to be renegotiated upon expiration of the multiyear term. The employer, labor union and employees are bound by the terms and conditions of a labor union contract, which sets out employees' wages, benefits, working conditions and seniority-based matters.

Gandhian approach to industrial relations

Gandhiji can be called one of the greatest labour leaders of modern India. His
approach to labour problems was completely new and refreshingly human. He held
definite views regarding fixation and regulation of wages, organisation and functions
of trade unions, necessity and desirability of collective bargaining, use and abuse of
strikes, labour indiscipline, workers participation in management, conditions of work .
and living, and duties of workers. The Ahmedabad Textile Labour Association, a
unique and successful experiment in Gandhian trade unionism, implemented many of
his ideas.
Gandhiji had immense faith in the goodness of man and he believed that many of the
evils of the modern world have been brought about by wrong systems and not by
wrong individuals. He insisted on recognising each individual worker as a human
being. He believed in non-violent communism, going so far as to say that “if
communism comes without any violence, it would be welcome.”
Gandhiji laid down certain conditions for a successful strike. These are: (a) the cause
of the strike must be just and there should be no strike without a grievance; (b) there
should be no violence; and (c) non-strikers or “blacklegs” should never be molested.
He was not against strikes but pleaded that they should be the last weapon in the
armoury of industrial workers and hence should not be resorted to unless all peaceful
and constitutional methods of negotiations, conciliation and arbitration are exhausted.
His concept of trusteeship is a significant contribution in the sphere of industrial
relations. According to him, employers should not regard themselves as sole owners of
mills and factories of which they may be the legal owners. They should regard
themselves only as trustees, or co-owners. He also appealed to the workers to behave
as trustees, not to regard the mill and machinery as belonging to the exploiting agents
but to regard them as their own, protect them and put to the best use they can. In
short, the theory of trusteeship is based on the view that all forms of property and
human accomplishments are gifts of nature and as such, they belong not to any one
individual but to society. Thus, the trusteeship system is totally different from other
contemporary labour relations systems. It aimed at achieving economic equality and
the material advancement of the “have-nots” in a capitalist society by non-violent
means.
Gandhiji realised that relations between labour and management can either be a
powerful stimulus to economic and social progress or an important factor in economic
and social stagnation. According to him, industrial peace was an essential condition
not only for the growth and development of the industry itself, but also in a great
measure, for the improvement in the conditions of work and wages. At the same time,
he not only endorsed the workers’ right to adopt the method of collective bargaining
but also actively supported it. He advocated voluntary arbitration and mutual
settlement of disputes. He also pleaded for perfect understanding between capital and
labour, mutual respect, recognition of equality, and strong labour organisation as the
essential factors for happy and constructive industrial relations. For him, means and
ends are equally important .

Industrial Relations

Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).

Definition of Industrial Relations

Industrial relation defined as relation of Individual or group of employee and employer for engaging themselves in a way to maximize the productive activities.

Concept of Industrial Relations:

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.” The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. 

The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. 

The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

Need for Industrial Relation

Need of Industrial Relation arises to defend the interest of workers for adjusting the reasonable salary or wages. It also help the workers to seek perfect working condition for producing maximum output. Workers/employees are concerned with social security measures through this. Industrial Relation also needed for achieving the democracy by allowing worker to take part in management, which help to protect human rights of individual. 

Concept, Scope and Objectives of Industrial Relations (IR) .

What are Industrial Relations?

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labor. The full concept of industrial relations is the organization and practice of multi-pronged relationships between labor and management, unions and labor, unions and management in an industry. Dale Yoder defines it as a "whole field of relationships that exists because of the necessary collaboration of men and women in the employment process of an industry."

Role of Industrial Relations:

Industrial relations are associated with labor, management, labor unions, and the state. The scene of industrial relations has grown tremendously, and cannot be represented merely by relations between management and labor. It has become a comprehensive and total concept embracing the sum total of relationship that exists at various levels of the organizational structure. Additionally, it connotes relationships between workers themselves within the labor class, and relations among the management within the managerial class. In an open sense, industrial relations denote all types of relations within a group and outside a group - both formal and informal relations.

Objectives of Industrial Relations:

1. Protect management and labor interests by securing mutual relations between the two groups.

2. Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased.

3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits.

4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is done to ensure the sharing of profit gains, and personal developmental of all all employees.

5. Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum.

6. To bring about government control over plants where losses are running high, or where products are produced in the public interest.

7. To bridge a gap between various public factions and reshape the complex social relationships emerging out of technological advances by controlling and disciplining members, and adjusting their conflicts of interests.

THE TRADE UNIONS (AMENDMENT) ACT, 2001

THE TRADE UNIONS (AMENDMENT) ACT, 2001

ACT NO. 31 OF 2001

[3rd September, 2001.]

An Act further to amend the Trade Unions Act, 1926.

BE it enacted by Parliament in the Fifty-second Year of the Republic

of India as follows:-

1. Short title and commencement.-(1) This Act may be called the Trade

Unions (Amendment) Act, 2001.

(2) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

2. Amendment of section 4.-In section 4 of the Trade Unions Act, 1926

(16 of 1926) (hereinafter referred to as the principal Act), in

sub-section (1), the following provisos shall be inserted at the end,

namely:-

''Provided that no Trade Union of workmen shall be registered unless

at least ten per cent or one hundred of the workmen, whichever is

less, engaged or employed in the establishment or industry with which

it is connected are the members of such Trade Union on the date of

making of application for registration:

Provided further that no Trade Union of workmen shall be registered

unless it has on the date of making application not less than seven

persons as its members, who are workmen engaged or employed in the

establishment or industry with which it is connected .'’

3. Amendment of section 5.-In section 5 of the principal Act, in

sub-section (1), after clause (a), the following clause shall be

inserted, namely:-

''(aa) in the case of a Trade Union of workmen, the names, occupations

and addresses of the place of work of the members of the Trade Union

making the application;''.

4. Amendment of section 6.-In section 6 of the principal Act,-

(a) for clause (ee), the following clause shall be substituted,

namely:-

''(ee) the payment of a minimum subscription by members of the Trade

Union which shall not be less than-

(i) one rupee per annum for rural workers;

(ii) three rupees per annum for workers in other unorganised sectors;

and

(iii) twelve rupees per annum for workers in any other case;'';

(b) in clause (h), for the word ''appointed'', the word ''elected''

shall be substituted;

(c) after clause (h), the following clause shall be inserted, namely:-

''(hh) the duration of period being not more than three years, for

which the members of the executive and other office-bearers of the

Trade Union shall be elected;''.

5. Amendment of section 9.-After section 9 of the principal Act, the

following section shall be inserted, namely:-

"9A. Minimum requirement about membership of a Trade Union.-A

registered Trade Union of workmen shall at all times continue to have

not less than ten per cent. or one hundred of the workmen, whichever

is less, subject to a minimum of seven, engaged or employed in an

establishment or industry with which it is connected, as its

members.''

6. Amendment of section 10.-In section 10 of the principal Act, after

clause (b), the following clause shall be inserted, namely:-

"(c) if the Registrar is satisfied that a registered Trade Union of

workmen ceases to have the requisite number of members.''.

7. Amendment of section 11.-In section 11 of the principal Act, in

sub-section (1), after clause (a), the following clause shall be

inserted, namely:-

''(aa) where the head office is situated in an area, falling within

the jurisdiction of a Labour Court or an Industrial Tribunal, to that

Court or Tribunal, as the case may be;''.

8. Substitution of new section for section 22.-For section 22 of the

principal Act, the following section shall be substituted, namely:-

'22. Proportion of office-bearers to be connected with the

industry.-(1) Not less than one-half of the total number of the

office-bearers of every registered Trade Union in an unorganised

sector shall be persons actually engaged or employed in an industry

with which the Trade Union is connected:

Provided that the appropriate Government may, by special or general

order, declare that the provisions of this section shall not apply to

any Trade Union or class of Trade Unions specified in the order.

Explanation.-For the purposes of this section, ''unorganised sector''

means any sector which the appropriate Government may, by notification

in the Official Gazette, specify.

(2) Save as otherwise provided in sub-section (1), all office-bearers

of a registered Trade Union, except not more than one-third of the

total number of the office-bearers or five, whichever is less, shall

be persons actually engaged or employed in the establishment or

industry with which the Trade Union is connected.

Explanation.-For the purposes of this sub-section, an employee who has

retired or has been retrenched shall not be construed as outsider for

the purpose of holding an office in a Trade Union.

(3) No member of the Council of Ministers or a person holding an

office of profit (not being an engagement or employment in an

establishment or industry with which the Trade Union is connected), in

the Union or a State, shall be a member of the executive or other

office-bearer of a registered Trade Union.'.

9. Amendment of section 29.-In section 29 of the principal Act, after

sub-section (2), the following sub-sections shall be inserted,

namely:-

''(3) Every notification made by the Central Government under

sub-section (1) of section 22, and every regulation made by it under

sub-section (1), shall be laid, as soon as may be after it is made,

before each House of Parliament, while it is in session for a total

period of thirty days which may be comprised in one session or in two

or more successive sessions, and if, before the expiry of the session

immediately following the session or the successive sessions

notification or regulation, or both Houses agree that the notification

or regulation should not be made, the notification or regulation shall

thereafter have effect only in such modified form or be of no effect,

as the case may be; aforesaid, both Houses agree in making a y

modification in the o, however, that any such modification or

annulment shall be without prejudice to the validity of anything

previously done under that notification or regulation.

(4) Every notification made by the State Government under sub-section

(1) of section 22 and every regulation made by it under sub-section

(1) shall be laid, as soon as may be after it is made, before the

State Legislature.''.

THE TRADE UNION ACT 1926

Origin and Growth

The growth of the trade unionism in India can be traced back to1980 when the Bombay

mill hands association was formed for the redressal of grievance of the Bombay mill

workers. However this association could not be treated as trade union the strict sense.

After the First World War there were number of strikes by industrial and factory workers

due to economic discontent. On many occasions these strikes were successful in getting

the demands of the workers fulfilled. The established of international labor organization

has also influenced the growth of trade union moment in our country.

In the year 1920 the madras high court in a suite field by Binny & co ltd against the

textile labor union granted an injection restraining the union officials from inducing the

workers to break their contracts of employment by not returning to their work with the

result the leaders of the trade activities hence the necessity for legislative protection was

felt by trade unions.

In 1921 NM Joshi who was the generals secretary of all India trade union congress

successfully moved a resolution in the central legislative assembly seeking introduction

of some legislation by the Govt. for protection of trade unions this move strongly

opposed by the employers because of stiff opposing from the employers. That the passing

of the Indian trade union act was possible only in 1926. The act came into force only

from 1

st June 1927.

Amendments to the Act

In 1947 the act was amended for providing compulsory recognition of the trade unions by

the employers any dispute regarding recognition was to be decided by the labor court set

up under the act However these provisions relating to compulsory recognition have not

been put into operation and remained a dead letter so far. By the amendment act of 1964

the word ‘Indian’ has been deleted from the act and called as trade unions act 1926.

Object and scope of the Act

‘Trade unions are essencial for safeguarding the right of labour when there is a struggle

between the labour and the management and the interest of the two are in conflict the

trade union are required to sort it out The primary object of the trade union is securing

improvements on matters like basic pay dearness allowance, bonus, gratuity, leave and

holidays to its members’

The preamble of the trade union act says it is an act to provide for the registration of

trade union and in certain respects of define the law relating to registered trade unions

The act lays down a detailed procedure for the registration and working of the trade

unions. In order that the union may fight for its legislatimate rights fearlessly, certain

immunities from original and civil actions are granted to the members of a registered

trade union and their officials thus provisions have been made to ensure a healthy union

movement in India.

Definitions

Appropriate Government – in relation to a trade union whose objects are not confined to

one state the appropriate Govt. is the Central Govt. in relations to all other union the state

Govt. is the appropriate Govt.

Executive – means the body to which the management of the affairs of a trade union is

entrusted.

Other office bearer – includes any member of the executive of the trade union. But an

auditor is not deemed to be office bearer of the trade union.

Registrar – Registrar of trade union appointed by the appropriate govt under sec3 he also

includes an additional or deputy registrar of trade union and in relation to any trade

union the registrar for that state in which the head or registered office of the trade unionb

is situated.

Trade Dispute

Trade dispute means any dispute like- between employer and workmen – between

workmen and workmen – between employer and employer

Any such dispute must be connected with the employment or non employment or the

terms of employment or the conditions of labour of any person. The definision of trade

dispute in this act is almost identical with the definition of industrial disputes.

Registration of Trade Union

Appointment of Registrars

`State govt appoints a person to the registrar of the trade union for the state it may also

appoints as many additional and deputy registrars of the trade union for the state The

state govt also defines the local limits within which they shall exercise and discharge the

powers and functions so specified if any such additional or deputy registrar is appointed

and exercises and discharges the powers and functions if a registrar in an area he stall be

deemed to be registrar for the purposes of this act.

Mode of Registration

Any seven or more members of a trade union may be subscribing theirs names apply for

registrations of trade union after the date of application but before the application if more

than half of the members who applied for registration cease to be members or

disassociate themselves from the application by giving a notice in writing to the registrar

in such a case the applications shall be deemed to have become invalid whereas only half

or less than half of the members cease to the members of the union or disassociate

themselves from the application the application for registration shall be valid.

Placation for the Registration

Application should be sent to registrar with in seven days

-the names, occupation and the address of the members making the application

-the name of the trade union and the address of its head office

- the titles, names, ages, addresses and occupations of the office bearers of the trade

union.

Rules of Trade Union

The trade union and its members provide guidelines for the administration of the trade

union

A Trade union is entitled to registration

1 If its executive is constituted in accordance with the provisions of the act and

2 its rules provide the following matters

- the name of the Trade Union

- the whole of its objects

-the purpose for which the general funds of the trade union shall be applicable

- the maintenance of a list of members and adequate facilities for the inspection there of

by the office bearers and members of the trade union.

- the person to be admitted must be an employee in the industry with which the trade

union is connected The rule shall also provide for admission of the number of honorary

or temporary office bearers to form the executive of the trade union.

-Payment of the subscription it shall be less than 25 paise per month per member

-conditions under which any members shall be entitled to any benefit assured by the rules

and under which any fine may be imposed on the members

-the manner in which the members of the executive and other bearer of the trade union

shall be appointed and removed.

- safe custody of funds annual audit of accounts, adequate facilities for the inspection of

account books by the office bearer and members of the trade union and

- the manner in which the trade union may be dissolved

Registration

The registration on being satisfied that the trade union has complied with all the

requirements of this act shall Trade Union by making necessary entries in the register. On

registration a trade union the registrar shall issue a certificate of registration in the

prescribed form.

All communications and notices of any charge in the address of the head office shall be

given with fourteen days of such changes to the registrar.

Cancellation of registration

The registrar may withdraw or cancel the certificate or registration on the following

-if the certificate has been obtained by fraud/mistake

-if the Trade Union has ceased to exist

-The Trade Union has willfully contravened any provisions of the act

The trade union has allowed any rule to continue in force which is inconsistent with any

provisions of the act

-Trade Union has rescinded any rule which ought to be there

-Trade Union has on its own applied for withdrawal of cancellation

Before the withdrawal the registrar shall give atleast two months notice in written

specifying the ground on which it is proposed to take action in the absence of previous

notice any proceeding for cancellation or withdrawal of registration is illegal.

Appeal

If the registration of a trade union is refused or if a certificate of registration is withdrawn

or cancelled any person aggrieved or the trade union may appeal to the court not inferior

to the court of principal district judge in the civil court of original jurisdiction as the

appropriate govt may appoint in this behalf for that area.

Rights and Liabilities of Registered Trade Unions

- Registered Trade Union may constitute a separate fund from contributions

separately leived for or made to that fund from which payments may be made for

the promotion of the civil and political interests of its members

- It became a body corporate

- Member of a registered trade union shall not be liable to punishment under

sec120B of the Indian penal code in respect of any agreement made between the

members for the purpose of furthering any such object of the trade union

- Officials bearers of a registered trade unions civil proceedings normally a person

is liable in start for bringing about disruption of employment between the

employer and the employee any member is protected from civil litigation even

if they induced a worker to break off the contract of employment or for

interfering with the trade business as a result no suit or the other legal proceeding

is contemplation or furtherance of a trade dispute.

- Enforceability of agreements under the Indian contract an agreement in restraint

of trade is void as against public policy but under the trade union act any

agreement between the members of a registered trade union shall not be void or

voidable merly because any of the object of the agreement one in restraint of

trade.

- Right to inspect of books of trade union an office bearer or member of the trade

union at such time as provided in the rules may inspect the account books of a

registered trade union and the list of members, the object of conferring this right

on office bearers and members is that they satisfy themselves as to the

genuineness of members and of the accounts of the union.

Membership

Any person who has attained the age of 15 years may be a member of the

registered trade union and enjoy all rights of a member however he cannot

become an office bearer till he completes the age of 18 years or if he has been

convicted and sentenced to imprisonment by a court in India for an offence

involving moral turpitude unless a period of 5 years has elapsed since his release

from jail. emphasises that not less than one-half of the total number of office

bearers of every registered union shall be persons actually engaged or employed

with which the trade union is connected

Change of name

A Trade Union may change its name with the consent of not less than two-third of

the total number of its members by giving a notice in written signed by the

secretary and by the seven members of the trade union The change in name does

not affect rights or obligations of the trade union or render defective and legal

proceedings by or against the trade union.

Objects on which general funds may be sent

-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 include audit

of the accounts of the general funds of the trade union

- the prosecution of defence of any legal proceeding to which the trade union or

any member there of is party

- the conduct of the trade disputes on behalf of the trade union or any member

there of

-the compensation payable to members for loss arising out of trade diaputes

-Allowances to members of their dependents on account of death old age sickness

accident or unemployment

-the issue of or the undertaking of liability under policies of assurance on the lives

of members

The provision of educational social or religious benefits for members or for the

dependents of members

- the upkeep of a periodical published mainly for the purpose of discussing

questions affecting employees or workmen as such

- the payment of contributions to any cause intended to benefits workmen in

general provided such contributions in any financial year shall not exceed one

fourth of the total income and

- subject to any conditions contained in the notifications any other object notifed by

the appropriate govt in the official gazette.

Amalgamation of Trade Union

- Two or more trade unions may be amalgamated to form one trade union with or

without dissolution or division of funds of the trade union in support of

amalgamation one half of the members of each or every trade union entitled to

vote shall be recorded. Out of that at least 60% of the recorded votes must support

the proposal for amalgamation notice of amalgamation signed by the secretary

and by seven members of each of the union shall be sent to the registrar if the

registrar is satisfied that all necessary formalities have been complied with he

may register the trade union and the amalgamation shall have effect from the date

of such registration an amalgamation of two or more registered trade unions shall

not prejudice any right of any such trade union or any right of a creditor or any of

them.

Dissolution of Trade Union

A trade union shall be dissolved by a notice of dissolution signed by seven members

and the secretary of the union within 14days of such dissolution It shall be sent to the

registrar of trade unions who shall register the same. Dissolution will take effect only

from the date of such registration. In the absence of any rules providing for

distribution of funds of the trade union the registrar shall the funds amongst the

members of the union.

Collective Bargaining

A collective bargaining is and agreement made by two groups of persons collective

bargaining is therefore a method by which a group agreement is reached between two

groups of persons Through an individual is free to bargain for himself and safeguard

his own interest he stands in a weaker position before his employer or master. The

individual has to accept the offer without any reserves for the has to feed his family

however the position becomes different if a bargain is made by a body or associate of

workmen in the words of Sydney web collective bargaining is a method of fixing the

terms of employment by means of bargaining between the employees and

employers.

Essential features

1 collective bargaining is carried out by a group of people

2 he group that are involved in collective bargaining are workers and employers

3 In the bargaining process workers agreements normally take one or the other forms

Namely Negotiation, mediation and arbitration which may be voluntary or

compulsory. Mainly collective bargaining has two phases ie- the negotiation phase

and the phase of conclusion of agreement.

Negotiation

Negotiation is the process of setting the difference by face to face between the

representatives of the employees and employers generally it involves three stages

viz..a) preparation for negotiation b) negotiation technique c) follow up

The implementation of these types of agreements are also not a problem because both

the parties feel confident of their ability to reach the agreement. When the process of

negotiation is complete and agreement is signed by both parties more conclusion of

an agreement is not sufficient for collective bargaining The enforcement of the

agreement is important. The trade union while making a collective bargaining must

also be botne in mind that the interest of the workers who are not the members of the

trade union are also protected and the workers are not discriminated against.

Settlement

In case of failure of the negotiation machinery to resolve the difference by mutual

discution and understanding a third party intervention to secure settlement of labout

disputes by way of meditation is often resolved to it is tripartite in nature because

usually it is reached by conciliation The reconciliation officer plays an important role

in bringing about conciliation of the parties the mediator functions not as a judge but

assists the parties in dispute to reach an agreement by persuading them to resume of

continue their bargaining efforts then the parties are to finalise the terms of the

agreement and should report back to the conciliation officer within a specified time.

Arbitration

Arbitration is an act of setting labour disputes through the medium of a third party the

parties to a dispute may either agree amongst themselves to submit for settlement by a

third person and abide by his award it is called voluntary arbitration. When a dispute

is submitted to an arbitrator under the provisions of a statute it would be compulsory

arbitration in case of voluntary arbitration the selection of arbitrator entirely resta

with the parties to the dispute.

Collective Bargaining

Collective bargaining being a system based on bipartite agreement is superior to any

agreement involving third party intervention in metters essentially concern employers

and workers.

Collective Bargaining Merits

1) Being a method of solving disputes between the parties is more democratic in

form and application this is the only method which provides settlement without

the compulsion from outside forces

2) Collective bargaining develops the spirit of self confidence and self reliance in the

mind of employees.

3) In this method there is a give and take policy which will develop good will and

understanding between labour and management it helps to create a peaceful

atmosphere in the industrial relations

4) Another advantage is speedy solution to the dispute the parties can do it at their

own time and discretion compared to the delay in compulsory adjudication the

time lag in solving the dispute through collective bargaining is comparatively less.

5 It produces more harmonious relations between employers and workers.

The Trade unions and the employers while making a collective bargaining must be

careful that the agreement arrived at should be in conformity not only with the

provisions of general law touching upon the subject of dispute but in conformity with

the provisions of the industrial law while making an agreement with the employer it

has to be borne in mind that the interest of the workers are not discriminated against

The internation labour organization also in a conference held in 1951 recognized the

principle of collective bargaining and adopted a resolution recommending collective

agreements.

Trade Unions Act

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

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



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



• Improve 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 high standard of living.



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

In India, the first organised 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, 1926. The Act deals with the registration of trade unions, their rights, their liabilities and responsibilities as well as ensures that their funds are utilised properly. It gives legal and corporate status to the 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 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 that 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 co-ordination 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 as the Chief Labour Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by the Chief Labour Commissioner (Central). It has been entrusted with the task of maintaining industrial relations, enforcement of labour laws and verification of trade union membership in central sphere. It ensures harmonious industrial relations through:-

• Monitoring of industrial relations in Central Sphere;



• Intervention, mediation and conciliation in industrial disputes in order to bring about settlement of disputes;



• Intervention in situations of threatened strikes and lockouts with a view to avert the strikes and lockouts;



• Implementation of settlements and awards.

According to the Trade Unions 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, and includes any federation of two or more trade unions". The basic provisions of the Act are:-

• 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.



• The registered trade unions (workers & employers) are required to submit annual statutory returns to the Registrar regarding their membership, general funds, sources of income and items of expenditure and details of their assets and liabilities, which in turn submits a consolidated return of their state in the prescribed proformae to Labour Bureau, Ministry of Labour and Employment. The Labour Bureau on receiving the annual returns from different States/Union Territories, consolidates the all India statistics and disseminates them through its publication entitled the 'Trade Unions in India' and its other regular publications.



• The general funds of a registered trade union shall not be spent on any other objects than those specified in the Act. Also, a registered trade union may constitute a separate fund, from contributions separately levied for or made to that fund, for the promotion of the civic and political interest of its members. No member shall be compelled to contribute to such fund and a member who does not contribute to the said fund shall not be excluded from any benefits of the trade union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the union by reason of his contribution to the said fund.



• No office-bearer or member of a registered trade union shall be liable to punishment under the Indian Penal Code in respect of any agreement made between the members for the purpose of furthering any such object of the trade union as specified in the Act, unless the agreement is an agreement to commit an offence.



• No suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any office-bearer or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the trade union is a party on the ground only that such an act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital of his labour as he wills.



• The account books of a registered trade union and the list of members thereof shall be open to inspection by an office-bearer or member of the trade union at such times as may be provided for in the rules 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- (i) he has not attained the age of eighteen years; (ii) he has been convicted by a court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release.



• Every office-bearer or other person bound by the rules of the trade union shall be punishable with the payment of fine, if:-
  
  
  • Default is made on the part of any registered trade union in giving any notice or sending any statement or other document as required by or under any provision of this Act; or
  
  
  
  • Any person willfully makes, or causes to be made, any false entry in, or any omission from, the general statement or in or from any copy of rules or of alterations of rules sent to the Registrar; or
  
  
  
  • Any person who, with intent to deceive, gives to any member of a registered trade union or to any person intending or applying to become a member of such trade union any document purporting to be a copy of the rules of the trade union or of any alterations to the same which he/ she knows, or has reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent, gives a copy of any rules of an unregistered trade union to any person on the pretence that such rules are the rules of a registered trade union.
    



• 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 of the Act, change its name. The change in the name of a registered trade union shall not effect any of its rights or obligation or render defective any legal proceeding by or against the union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued by its new name.



• Any two or more registered trade unions may become amalgamated together as one trade union with or without the dissolution or division of the funds of such trade unions or any of them, provided that the votes of at least one-half of the members of each or every such trade union entitled to vote are recorded, and that at least sixty percent of the votes recorded are in favour of the proposal. Such an amalgamation shall not prejudice any right of any such unions or any right of a creditor or any of them.



• 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 and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of the trade union, and the dissolution shall have effect from the date of such registration.

However, the Trade Unions Act 1926 has been amended from time to time and the most important being the Trade Unions (Amendment) Act, 2001. This Act has been enacted in order to bring more transparency and to provide greater support to trade unionism in India. Some of the salient features of the Trade Unions (Amendment) Act, 2001 are:-

• No trade union of workmen shall be registered unless at least 10% or 100, whichever is less, subject to a minimum of 7 workmen engaged or employed in the establishment or industry with which it is connected are the members of such trade union on the date of making of application for registration.



• A registered trade union of workmen shall at all times continue to have not less than 10% or 100 of the workmen, whichever is less, subject to a minimum of 7 persons engaged or employed in the establishment or industry with which it is connected, as its members.



• A provision for filing an appeal before the Industrial Tribunal / Labour Court in case of non-registration or for restoration of registration has been provided.



• All office bearers of a registered trade union, except not more than one-third of the total number of office bearers or five, whichever is less, shall be persons actually engaged or employed in the establishment or industry with which the trade union is connected.



• Minimum rate of subscription by members of the trade union is fixed at one rupee per annum for rural workers, three rupees per annum for workers in other unorganised sectors and 12 rupees per annum in all other cases.



• The employees who have been retired or have been retrenched shall not be construed as outsiders for the purpose of holding an office in the trade union concerned.



• For the promotion of civic and political interest of its members, unions are authorized to set up separate political funds.

Hence, trade union legislation ensures their orderly growth, reduce their multiplicity and promote internal democracy in the industrial organisation and the economy. The trade unions have thus acquired an important place in the economic, political and social set up of the country.