Ans 1 :

Industrial Disputes Act, 1947

THE FIFTH SCHEDULE : Unfair Labour Practices

[Section 2(ra)]

I. ON THE PART OF EMPLOYERS AND TRADE UNIONS OF EMPLOYERS

(1) To interfere with, restrain from, or coerce, workmen in the exercise of their right to
organize, form, join or assist a trade union or to engage in concerted activities for the
purposes of collective bargaining or other mutual aid or protection, that is to say.-

(a) threatening workmen with discharge or dismissal, if they join a trade union;

(b) threatening a lock-out or closure, if a trade union is organized;

(c) granting wage increase to workmen at crucial periods of trade union organization,
with a view to undermining the efforts of the trade union at organization.

(2) To dominate, interfere with or contribute support, financial or otherwise, to any trade union,
that is to say,

(a) an employer taking an active interest in organizing a trade union of his workmen;
and

(b) an employer showing partiality or granting favor to one of several trade unions
attempting to organize his workmen or to its members, where such a trade union is
not a recognized trade union.

(3) To establish employer sponsored trade unions of workmen.

(4) To encourage or discourage membership in any trade union by discriminating against any
workman, that is to say,

(a) discharging or punishing a workman, because he urged other workmen to join or

organize a trade union;

(b) discharging or dismissing a workman for taking part in any strike (not being a
strike which is deemed to be an illegal strike under this Act);

(c) changing seniority rating or workmen because of trade union activities;

(d) refusing to promote workmen of higher posts on account of their trade union
activities;

(e) giving unmerited promotions to certain workmen with a view to creating discord
amongst other workmen, or to undermine the strength of their trade union;

(f) discharging office-bearers or active members of the trade union on account of their
trade union activities.
(5) To discharge or dismiss workmen-

(a) by way of victimization;

(b) not in good faith, but in the colorable exercise of the employer’s rights;

(c) by falsely implicating a workman in a criminal case on false evidence or on

concocted evidence;

(d) for patently false reasons;

(e) on untrue or trumped up allegations of absence without leave;

(f) in utter disregard of the principles of natural justice in the conduct of domestic
enquiry or with undue haste;

(g) for misconduct of a minor technical character, without having any regard to the
nature of the particular misconduct or the past record or service of the workman,
thereby leading to a disproportionate punishment.

(6) To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a measure of breaking a strike.

(7) To transfer a workman mala fide from one place to another, under the guise of following
management policy.

(8) To insist upon individual workmen, who are on a legal strike to sign a good conduct bond,
as a precondition to allowing them to resume work.

(9) To show favoritism or partiality to one set of workers regardless of merit.

(10) To employ workmen as "badlis", casuals or temporaries and to continue them as such for
years, with the object of depriving them of the status and privileges of permanent workmen.

(11) To discharge or discriminate against any workman for filing charges or testifying against
an employer in any enquiry or proceeding relating to any industrial dispute.

(12) To recruit workman during a strike which is not an illegal strike.

(13) Failure to implement award, settlement or agreement.

(14) To indulge in acts of force or violence.

(15) To refuse to bargain collectively, in good faith with the recognized trade unions.

(16) Proposing or continuing a lock-out deemed to be illegal under this Act.

II. ON THE PART OF WORKMEN AND TRADE UNIONS OF WORKMEN

(1) To advise or actively support or instigate any strike deemed to be illegal under this Act.

(2) To coerce workmen in the exercise of their right to self-organization or to join a trade union
or refrain from, joining any trade union, that is to say-
 (a) for a trade union or its members to picketing in such a manner that non-striking
workmen are physically debarred from entering the work places;

(b) to indulge in acts of force or violence or to hold out threats of intimidation in

connection with a strike against non-striking workmen or against managerial staff.

(3) For a recognized union to refuse to bargain collectively in good faith with the employer.

(4) To indulge in coercive activities against certification of a bargaining representative.

(5) To stage, encourage or instigate such forms of coercive actions as willful, ,"go-slow",
squatting on the work premises after working hours or "gherao" of any of the members of the
managerial or other staff.

(6) To stage demonstrations at the residence of the employers or the managerial staff
members.

(7) To incite or indulge in willful damage to employer’s property connected with the industry.

(8) To indulge in acts of force or violence or to hold out threats of intimidation against any
workman with a view to prevent him from attending work.]

Ans 2

1. IntroductionStrikes and lockouts are the last resort

actions taken by employees and employers respectively to ensure
that both get what they are

demanding for. They are said to be the last resort after conciliation
measures have deemed unfruitful.

Strikes happen when employees agree to stop working as a way of

compelling the employer to hid to their demands while lockouts
happen when employers close down the workplaces to bar
employees from working with aim of getting employees to adjust to
their demands as well.

The law gives room for strikes and lockouts to take place in
industries on condition that they are peaceful; causing no harm to
the society and no vandalism to public or industrial property by the
Industrial Disputes Act, 1947. However, strikes and lockouts
cannot just take place whenever employers or employees feel like.

They are often results of dissatisfaction in economic factors for the

employees and dissatisfaction in both economic and non- economic
factors for the employers. Both acts see the parties compel the
other to come into the terms being demanded.
2. Denition of Strikes S.2 (Q)
A strike is the ceasing of work by employees of an industry with the
objective of forcing an employee to meet particular demands. It is a
mutual understanding between workers to cease work or even
employment all with the motive of drawing the attention of the
management concerning their various demands.

In order for a strike to take place, the following components should

be in place according to the Act:

1. There has to be an industry.

2. Work must stop. It must be a combined action of individuals.

1. A relationship between the parties must be strictly of

employment.

2. It should be a planned refusal of work.

1. Denition of Lockouts S.2 (1)
A lockout is the act of employers that entails closing the workplace
temporarily, suspending work or cutting short the employment of
any number of individuals initially employed. A lockout is a
strategic weapon that employers hold when in lock heads with the
employees.

A lockout has to have the following in order to be counted as a

lockout:

1. There has to be a temporal shut down of the area of

employment. It could also be a temporary suspension of
workers or holding back of work from the workers.

2. The employer has to have a demand that leads him to initiate

the lockout. The lockout touches any number of workers
employed within the industry.

On the other hand, there are some actions that do not count as lockouts. For
instance:

1. When an employer stops late-comers from working on that day.2. Preventing

employees whose services have been ceased from going to the place of work.

3. Types of strikes­Workers in the industrial world have resolved

to various types of strikes. The strikes differ in their mode of actions they come
along

with. Some strikes produce different impacts on the industry at stake though
they all aim at the same results. The various types of strikes include:

1. General Strike

2. Sit down Strike Pen/Tool down Strike

1. Go-slow Strike

2. Go-speed Strike

1. General Strike­
A General Strike is said to be a legal strike since it follows all the protocols as
stated in the Act of Industrial Disputes. Employees begin by giving a strike
notice to the management of the industry they work for. If the management
fails to settle the dispute within the given time in the strike notice, the strike
will be launched after the expiry of the notice. All trade unions linked to the
demand at hand participate in the General Strike.

Case­
KAMESHWAR PRASAD AND OTHERS VS. STATE OF BIHAR AND 
UNION OF INDIA (AIR 1962 SC 1166 SCR 369)
Bihar Government Servants’ Conduct Rules, 1956 had a rule, Rule 4-A that
prohibited workers from demonstrating or initiating any strike. The petitioners
and other employees in the State of Bihar filed a case before the High Court
concerning the rule. The High Court made a judgment in favor of the
employees and petitioners saying that strike is the workers’ right though not
fundamental.

1. Sit­down StrikeThis kind of strike involves employees reporting for

duty in their workplaces normally, take their positions in their various areas of

work but here comes the game changer; they simply sit and do nothing.

They might also choose to just hang around the industry’s premises. The
objective of this strike is to cripple production. The industry ends up incurring
huge losses due to no work being done at all.

It is also of great pain and shame to the employers since the rate of production
is going down in the presence of workers who have

reported for duty to work which they eventually end up not doing.

Case­

Sadul Textile Mills Limited Vs. Their Workmen (1958) 
II L.L.J. 638 Raj.)
The Supreme Court ruled that a sit-down strike is not justified by any means
even if it does not involve violence since it is an infringement of the
employers’ rights.

Pen/Tool down Strike
This type of strike shares some similarities with the sit down strike. For the
pen down, it mostly takes place among people with white- collar jobs or
rather people who work in offices. Tool down is for workers in production
industries like factories to be specific. This type of strike qualifies to be a
strike since the members drop down their items of work in unison and refuse
to work.

1. Go­slow Strike
The Go-slow Strike is aimed at showing the employers how offended the
employees are. The employees report for duty as usual and could even get to
work but with only one distinction; they don’t actually do anything
productive. The delay in all that they do and the outcome turns into little or
no production at all.

The unique thing about this strike is that at the end of the day, the employees
demand for their wages. This aspect makes the Go- slow Strike the most
harmful strike compared to the total dissertation of work like in the General
Strike. No production has been made but the workers have to be paid
because they are demanding for it.

The Supreme Court ruled that a go-slow strike is a major form of misconduct
when it comes to labor in the case of “Bharat Sugar Mills Ltd. vs. Jai
Singh (1961) II L.L.J. 644 SC”

1. Go­speed Strike
It is not a common type of strike but it has also proven to bear results. Unlike
the Go-slow strike, the workers of the industry give a notice to the employers
in advance stating various demands that they have. They go ahead to give a
duration of time to the management to look into those demands. By any
chance, if the management fails to meet the stated demands in the time
given, the workers resolve to a strike.

A kind of a strike that sees them work harder hence making a greater level of
production in the industry. The increase in production is meant to channel
their discontentment with the management. The unique strike sees the
workers working on overtime which in turn causes the employer to feel
humiliated.

The overproduction brings about a problem in the distribution of raw

materials, storing and keeping stock of the finished and unfinished products
and so forth – generally causing an economic collision. The employer is then
forced to meet the demands of the workers.

4. Boundaries of strikes and lockouts (Ss. 22 AND 23)
To prevent strikes and lockouts from being misused, boundaries have been
made by the Industrial Dispute Act. These boundaries are rules stating when
individuals are not allowed to go on strike or establish a lockout.

Boundaries of strikes:
Strikes are not allowed to take place when:

1. The employer has not given a notice of the strike within six weeks before
commencing the strike; or

2. Before the end 14 days after giving the notice. The duration of time
stated in the notice has not expired.

1. The conciliation process before a Conciliation Officer is still pending.

2. A duration of 7 days passes after the settling of the conciliation

 proceedings.

Boundaries of lockouts:
Lockouts are not allowed to take place when:

1. The employer has not given a prior notice about the lockout within six
weeks before the lockout; or

2. Before the end of 14 days after giving the notice. The duration of time
stated in the notice has not expired.

1. The conciliation process before a Conciliation Officer is still pending

2. A duration of 7 days passes after the settling of the conciliation

proceedings.

The notice of a lockout, however, shall not be necessary when there is a strike
already in progress.

5. Illegal strikes and lockouts­There are times strikes and

lockouts are said to be illegal. This means that they are in progress while the
law forbids. A strike or

lockout is deemed to be illegal if it contravenes the boundaries of strikes.

1.Circumstances making strikes and lockouts illegal 
in an industrial establishment (S. 23) –
An employee working in an industrial establishment shall not go in strike
contrary to the agreements made in the contracts and no employer of any such
employee shall initiate a lockout when:

23. The conciliation process before the Board of Conciliation is still pending
and after 7 days since the settlement of the conciliation. The conciliation
before a Board is what is considered in this case and not the conciliation
before an Officer u/s 23.

24. The case before a Labour Court, National Tribunal or Industrial Tribunal
is pending and after 2 months since the settlement of such a case. The
case of arbitration before an arbitrator is still pending and after 2
months since the closing of the case. A notification has to have been
issued. 10-A (3-A)
1. A settlement or award is still operational in reference to any of the issues

Circumstances making strikes 
under the settlement or award.2.

and lockouts illegal in public

utility service (S.24) –
Strikes and lockouts shall also be declared illegal when:

1. They are done contrary to the contract stating the terms of employment.

2. A notice of the lockout is not given to the employees or notice of strike is

not given to the employers; within six weeks before the commencement of
the lockout or strike. Employees strike or employers lock out the
employees before the end of 14 days after the notice has been given.

1. The employees commence a lockout or employers commence a strike while

conciliation proceedings are pending before the Conciliation Officer and before
the end of 7 days after the proceedings have been settled.

1. Circumstances under which strike or lockouts are not
illegal
2. When the strike or lockout in pursuit of an industrial dispute has already
begun and exist at the reference time of the conflict to a Board, an
arbitrator, a Labour Court and an Industrial or National Tribunal. The
strike or lockout shall therefore not be termed as illegal given that they
have not contravened the given statement of this Act.

3. When a lockout has been initiated as a result of an illegal strike or a strike

initiated as a result of an illegal lockout shall not be termed as illegal.

1. Consequences of illegal strikes and lockoutsIndividuals
who continue to run a strike or lockout contrary to the law are subject to
punishments and penalties in accordance to the

Act. The consequences touch on both employers and employees.

An employee who initiates or continues to run a strike which has been deemed as
illegal by the Act is subject to the extent of one- month imprisonment or a fine
that may reach up to fifty rupees or both.

An employer who initiates or continues to run a strike which has been deemed as
illegal by the Act is subject to the extent of one- month imprisonment or a fine
that may reach up to one thousand rupees or both.

According to the Case-law: Man Industrial Corpn. Ltd. vs. IT (1985) they
should be no pay for the duration the strike took if the strike is termed to be
illegal.

Cases

1. In Ramnagar Cane & Sugar Co. v. Jatin Chakravarty AIR

1960 SC 1012, it was said that in the process of an ongoing
conciliation between the public utility and its union, another
union went on a strike of the same issue, deemed, illegal.

2. In India General Navigation & Railway Co. V. Workmen, AIR

1960 Supreme Court, It was ruled by the Supreme Court the
lockout was not illegal since it was as a result of an illegal
strike which had already begun.

6. Justied and unjustied strikes­A strike is said to be

justified when the strike is legal and the reasons leading to the
strike are open and realistic. Reasons can vary

from better wages to better working conditions and so forth.

Whereas an unjustified strike is a strike that has been commenced

by the employees with the aim of intimidating the employer. It
should be noted that some circumstances may render a render a
legal strike unjustified.

7.Differences between strikes and 
lockouts­
STRIKE LOCKOUT
 A lockout is the act of employers that
entails closing the workplace
A strike is the ceasing of
1. temporarily, suspending work or cutting
work by employees of an
short the employment of any number of
industry with the objective of
individuals initially employed.
forcing an employee to meet
particular demands.

Strikes entail the full ceasing

Lockouts entail the temporal shutdown
of work by the workers until
of the place of work, suspension of the
their demands are met by the
2. work or refusal to employ.
employees.

Reasons leading to a lockout could be

3.
both economic and non-economic.
Reasons leading to a strike
are often economic.

A strike is a weapon used by A lockout is a weapon used by

4. employees. employers.

There are various types of

Illegal lockouts do not have varieties.
illegal strikes. E.g.: pen
There is only one.
5. down, go slow etc.

8. Conclusion
Employees make use of strikes in order to enact industrial action
upon employers about the demands they have. Employers make use
of lockouts as a weapon to compel their workers to meet their work
demands. Strikes and lockouts cannot take place just in any way
and thus, they have boundaries and circumstances that render
them either legal or illegal. Illegal ones have consequences.

SEE PDF

ANS 3
Article 43A of the Constitution of India deals with 'Participation of
workers in management of industries' and falls under Part IV - Directive
Principles of State Policy.

Workers’ participation in management is an essential ingredient of Industrial

democracy. The concept of workers’ participation in management is based on
Human Relations approach to Management which brought about a new set of
values to labour and management. Traditionally the concept of Workers’
Participation in Management (WPM) refers to participation of non-managerial
employees in the decision-making process of the organization. Workers’
participation is also known as ‘labour participation’ or ‘employee participation’
in management. In Germany it is known as co-determination while in
Yugoslavia it is known as self-management. The International Labour
Organization has been encouraging member nations to promote the scheme
of Workers’ Participation in Management.

Workers’ participation in management implies mental and emotional

involvement of workers in the management of Enterprise. It is considered as a
mechanism where workers have a say in the decision-
The philosophy underlying workers’ participation stresses:

1. democratic participation in decision-making;

2. maximum employer-employee collaboration;

3. minimum state intervention;

4. realisation of a greater measure of social justice;

5. greater industrial efficiency; and

6. higher level of organisational health and effectiveness.

It has been varyingly understood and practised as a system of joint

consultation in industry; as a form of labour management cooperation; as a
recognition of the principle of co-partnership, and as an instrument of
industrial democracy. Consequently, participation has assumed different
forms, varying from mere voluntary sharing of information by management
with the workers to formal participation by the latter in actual decision-making
process of management.

Definitions:
The concept of WPM is a broad and complex one. Depending on the socio-
political environment and cultural conditions, the scope and contents of
participation change.

International Institute of Labour Studies:

WPM is the participation resulting from the practices which increase the scope
for employees’ share of influence in decision-making at different tiers of
organizational hierarchy with concomitant (related) assumption of
responsibility.

ILO:
Workers’ participation, may broadly be taken to cover all terms of association
of workers and their representatives with the decision-making process,
ranging from exchange of information, consultations, decisions and
negotiations, to more institutionalized forms such as the presence of workers’
member on management or supervisory boards or even management by
workers themselves (as practiced in Yugoslavia).
The main implications of workers’ participation in management as
summarized by ILO:

 Workers have ideas which can be useful;

 Workers may work more intelligently if they are informed about the
reasons for and then intention of decisions that are taken in a
participative atmosphere

Objectives of Workers Participation in Management

The objectives of workers’ participation in management are as follows:

 To raise level of motivation of workers by closer involvement.

 To provide opportunity for expression and to provide a sense of

importance to workers.

 To develop ties of understanding leading to better effort and harmony.

 To act on a device to counter-balance powers of managers.

 To act on a panacea for solving industrial relation problems.

Gujarat High Court

Gujarat Kamdar Sahakari Mandal ... vs Ramkrishna Mills Ltd. on
7 April, 1994

The provisions of article 43A intended to herald industrial democracy and in

the words of Krishna Iyer J., it marks the "end of industrial bonded labour".
The Constitutional mandate is, therefore, clear that, the management of the
enterprises should not be left entirely in the hands of suppliers of capital, but
the workers should also be entitled to participate in it because in a socialist
pattern of society the enterprise, which is the centre of economic area, should
be controlled not only by suppliers of capital but also by labour, The workers,
therefore, have a special place in a socialist pattern of society. They are not
mere vendors of toil. They are not a marketable commodity to be
purchased by the owners of capital. They are producers of wealth as
much as capital. They supply labour without which the capital would be
impeded and they are at the least equal partners with capital in the
enterprise. It is in the light of the aforesaid Constitutional philosophy, that the
scheme which is put forward by the society of workers is required to be
approached.

Specific of Purpose of Workers' Participation

1. It helps in managing resistance to change which is inevitable. For the
growth and development of industry, changes have to be welcomed,
otherwise the organization will stagnate and be left behind. If the need for
change is jointly felt by all partners of production its acceptance can be high.
Workers' participation in change strategy can facilitate acceptable solutions
with a view to secure effective and smooth implementations of decisions.

2. Workers' participation can encourage communication at all levels. Since

both partners of production are involved in the decision-making there will be
fewer changes of distortion and/ or failure in communicating the decision.

3. Joint decision- making ensures the there will be minimum industrial conflict
an economic growth can be free form distracting strife.

4. Workers' participation at the plant level can be seen as the first step to
establishing democratic values in society at large.

Elements of Participation
The term “participation” has different meanings for different purposes in
different situations. McGregor is of the view that participation is one of the
most misunderstood idea that has emerged from the field of human relations.
Keith Davis has defined the term “participation” as the mental and emotional
involvement of a person in a group situation which encourages him to
contribute to group goals and share responsibilities in them. This definition
envisages three important elements in participation. Firstly, it means mental
and emotional involvement rather than mere physical activity; secondly,
participation must motivate a person to contribute to a specific situation to
invest his own resources, such as initiative, knowledge, creativity and
ingenuity in the objectives of the organisation; and thirdly, it encourages
people to share responsibility for a decision or activity. Sharing of
responsibility commits people to ensure the success of the decision or activity.

Forms of Participation
Different forms of participation are discussed below:

Collective Bargaining: Collective bargaining results in collective

agreements which lay down certain rules and conditions of service in an
establishment. Such agreements are normally binding on the parties.
Theoretically, collective bargaining is based on the principle of balance
of power, but, in actual practice, each party tries to outbid the other and
get maximum advantage by using, if necessary, threats and
counterthreats like; strikes, lockouts and other direct actions. Joint
consultation, on the other hand, is a particular technique which is
intended to achieve a greater degree of harmony and cooperation by
emphasising matters of common interest. Workers prefer to use the
instrument of collective bargaining rather than ask for a share in
management. Workers’ participation in the U.S.A has been ensured
almost exclusively by means of collective agreements and their
application and interpretation rather than by way of labour
representation in management.

Works Councils: These are exclusive bodies of employees, assigned

with different functions in the management of an enterprise. In West
Germany, the works councils have various decision-making functions. In
some countries, their role is limited only to receiving information about
the enterprise. In Yugoslavia, these councils have wider decision-
making powers in an enterprise like; appointment, promotion, salary
fixation and also major investment decisions.

Joint Management Councils and Committees: Mainly these bodies

are consultative and advisory, with decision-making being left to the top
management. This system of participation is prevalent in many
countries, including Britain and India. As they are consultative and
advisory, neither the managements nor the workers take them seriously.

Board Representation: The role of a worker representative in the

board of directors is essentially one of negotiating the worker’s interest
with the other members of the board. At times, this may result in tension
and friction inside the board room. The effectiveness of workers’
representative at the board depend upon his ability to participate in
 decision-making, his knowledge of the company affairs, his educational
background, his level of understanding and also on the number of
worker representatives in the Board.

Workers Ownership of Enterprise: Social self-management in

Yugoslavia is an example of complete control of management by
workers through an elected board and workers council. Even in such a
system, there exist two distinct managerial and operative functions with
different sets of persons to perform them. Though workers have the
option to influence all the decisions taken at the top level, in actual
practice, the board and the top management team assume a fairly
independent role in taking major policy decisions for the enterprises,
especially in economic matters.

Levels of Participation
Workers’ participation is possible at all levels of management; the only
difference is that of degree and nature of application. For instance, it may be
vigorous at lower level and faint at top level. Broadly speaking there is
following five levels of participation:

1. Information participation: It ensures that employees are able to receive

information and express their views pertaining to the matters of general
economic importance.

2. Consultative participation: Here works are consulted on the matters of

employee welfare such as work, safety and health. However, final decision
always rests at the option of management and employees’ views are only of
advisory nature.

3. Associative participation: It is extension of consultative participation as

management here is under moral obligation to accept and implement the
unanimous decisions of employees.

4. Administrative participation: It ensure greater share of works in

discharge of managerial functions. Here, decision already taken by the
management come to employees, preferably with alternatives for
administration and employees have to select the best from those for
implementation.

5. Decisive participation: Highest level of participation where decisions are

jointly taken on the matters relation to production, welfare etc. is called
decisive participation.
Pre-requisites for Effetive Participation
The pre-requisites for the success of any scheme of participative
management are the following:

1. Firstly, there should be a strong, democratic and representative

unionism for the success of participative management.

2. Secondly, there should be mutually-agreed and clearly-formulated

objectives for participation to succeed.

3. Thirdly, there should be a feeling of participation at all levels.

4. Fourthly, there should be effective consultation of the workers by the

management.

5. Fifthly, both the management and the workers must have full faith in
the soundness of the philosophy underlying the concept of labour
participation.

6. Sixthly, till the participative structure is fully accepted by the parties,

legislative support is necessary to ensure that rights of each other are
recognised and protected.

7. Seventhly, education and training make a significant contribution to the

purposeful working of participative management.

8. Lastly, forums of participation, areas of participation and guidelines for

implementation of decisions should be specific and there should be
prompt follow-up action and feedback.

Ans 4

Trade Union Act, 1926

10. Cancellation of registration

A certificate of registration of a trade union may be withdrawn or cancelled by the Registrar-

(a) on the application of the trade union to be verified in such manner as may be prescribed:
(b) 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 by 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 section 6:

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 otherwise than on the application
of the trade union.

Ans 5

Difference between Lay-off and Retrenchment

The biggest difference between layoff and retrenchment is

that layoff is volatile in nature, i.e. employees are recalled,
once the period of layoff is over whileretrenchment is non-
volatile i.e. that involves full and final termination of services.

The employment contract is terminated with the employees by the

employer, due to three major reasons which are: (i) the organization is
going through the lean period, (ii) initial faulty hiring, (iii) employee
shows deviant behavior, which affects the whole environment.

The method used in involuntary separation is layoffs, VRS,

Retrenchment, discharges etc. Many think that layoff and retrenchment
are one and the same thing but that is not true.Read the article to learn
some more differences between these two.

Content: Layoff Vs Retrenchment

1. Comparison Chart

2. Definition

3. Key Differences
 4. Conclusion

Comparison Chart
BASIS FOR
LAYOFF RETRENCHMENT
COMPARISON

Meaning Lay-off refers to the Retrenchment means involuntary

provisional termination of separation of an employee due to the
the employee, at the replacement of labor by machines or the
instance of the employer. close of the department.

What is it? Action step Business strategy

Defined in Section 2 (kkk) of Section 2 (oo) of Industrial Dispute Act,

Industrial Dispute Act, 1947
1947

Nature Temporary Permanent

Operation of Stops after the declaration. Continues even after the declaration.
company

Re-appointment As soon as the lay-off Employee's connection with the

period ends. organization are severed immediately.

Definition of Layoff

To layoff is to temporarily or permanently terminate or get rid of the

staff / employee. This is usually done by a company / firm on account of
a business slowdown as a result of which there is insufficient work to be
allotted to an employee who is registered with the establishment and
who has not yet been retrenched.

It is Suspension or termination of employment (with or without notice)

by an employer or management. A company layoff involves the
cessation of employee benefits such as salary or wages. The laid-off
employees are paid laid-off compensation. All of the laid-off employees
should be taken back in their usual posts, as soon as the layoff lifted out.
It may be due to, one of the given reasons:

 Shortage of raw materials

 Economic recession

 Breakdown of machinery

 Accumulation of stocks

Definition of Retrenchment

Retrenchment is to reduce the amount of corporate expenses. When a

company/firm implements retrenchment, it cuts off or minimises all the
unnecessary expenditures, usually by cutting back on the diversity of
products or services it offers and often reducing the size of its company
by closing down some of its offices that don’t necessarily mean a
reduction in a company’s workforce.

It simply means termination of employee’s services, because of

replacement of the worker by machines or closure of the unit due to the
lack of product’s demand, produced by the unit. In retrenchment, the
termination of services of several employees takes place where they are
sent to the home and their connection with the organisation are
completely and immediately severed.

Key Differences between layoff and retrenchment

1. Layoff refers to the provisional termination of the employee, at

the instance of the employer. Retrenchment means involuntary
separation of an employee due to the replacement of labour by
machines or the close of the department.

2. The layoff is an action step, whereas retrenchment is a business

strategy to reduce company’s expenses.
 3. The layoff is defined in section 2 (kkk) of the Industrial Disputes
Act, 1947. Conversely, Retrenchment is defined in section 2 (oo)
of the Industrial Disputes Act, 1947.

4. The layoff is of a temporary nature, i.e. it is for a definite period,

in which the employees are recalled after the expiry of the term.
As opposed to retrenchment, is permanent in nature.

5. After the declaration of layoff, the company’s operations stops

because of the shortage of raw material, the breakdown of
machinery, economic recession and so on. On the other hand, the
operations of the company continue even after retrenchment is
declared.

6. As soon as the layoff period is over, the employees are re-

appointed to their previous posts. Unlike Retrenchment, in which
the employees are not taken back by the company, once they are
terminated.
Conclusion

Therefore, with the above discussion, it is quite clear that layoff and
retrenchment are two different ways of involuntarily terminating
employees. While in both the cases the employees are paid
compensation as per the method specified in the act. However, gratuity
is paid only in retrenchment but not in layoff.

ANS 6

At present, there are a number of trade unions but six major

central trade unions each having a membership of over 5 lakhs
had all India character of trade unions. They are:—

(1) The Indian National Trade Union Congress

(INTUC):
In May 1947 INTUC was formed by the Congress Party and the
top congress leaders like Mr. Nehru and Patel were associated
with it.

ADVERTISEMENTS:

The objectives of the union are to adopt peaceful means for the
settlement of labour disputes. The Government of India
declared this union in 1948 as the most representative union
in the country. It represented Indian labour organisations at
the International Labour Organisation meets right upto 1978.
But the Government of India has broken this monopoly and
nominated a member of the Hind Mazdoor Sangh to represent
the working class at the world labour meet at Geneva on June
3, 1979.

Every union affiliated to INTUC has to submit its dispute to

arbitration after exhausting other means of settlement of
disputes. It has strong roots in West Bengal, Assam, Gujarat,
Maharashtra and Bihar. It has large number of members from
textiles, tea, jute, transport and mining industries.

(2) The AH India Trade Union Congress (AITUC):

This union came into existence in 1920 mainly on the pattern
of the British Trade Unions. It serves as the labour forum of
Communist party of India at present. It is considered as the
second largest union in India. It is very strong in West Bengal,
Tamil Nadu, Kerala, Andhra Pradesh and Punjab.

(3) The Bharatiya Mazdoor Sangh (BMS):

This union was formed as an affiliate to Bhartiya Jan Sangh
Party. During the last couple of years its membership has gone
up. This gives it the third position and the H.M.S. has been
pushed down the fourth position.

(4) The Hind Mazdoor Sangh (H.M.S.):

It was formed in December 1981 in Calcutta by the socialists
who neither approved INTUC nor A1TUC. The HMS was
organised with a view to keeping its members free from any
political or other outside interference. Its members are
generally from industries like railways, cotton textiles, coal
mining, engineering and post and telegraph department. The
Praja Socialist party and Samyuktha Socialist party dominated
this union. These parties became constituents of the Janta
Party.

(5) The United Trade Union Congress (UTUC):

It was formed on 30th April 1949 by those persons who were
dissident socialists. It functions mainly in Kerala, West
Bengal, Bihar and Tamil Nadu. Its political affiliations are with
left-wing parties.

(6) The Centre of Indian Trade Unions (CITU):

It was formed in 1970. It has 2,231 affiliated unions having 1 1,
12,328 members.

Recognition of Unions:
ADVERTISEMENTS:

Code for discipline in industry (became effective from June 1,

1958) lays down criteria for recognition of unions. The criteria
given in the Code is (a) union should function for at least one
year after registration if there is more than one union. Where
there is only one union, this condition will not apply (b) it
must have at least 15% of the workers as its members (c) a
union may be recognised as a representative union for an
industry if it has a membership of at least 25% of workers (d)
if there are more than one unions in an industry, the one with
the largest membership should be recognised (e) only unions
which observed the Code of Discipline would be entitled to
recognition.

ANS 7

Industrial Dispute-Sec. 2 (k)

Industrial Dispute is “any dispute of difference between employers and
employers or between employers and workmen; or between workmen and
workmen, which is connected with the employment or non-employment or the
terms of employment or with the conditions of labour of any person.”

Industrial dispute as defined under Sec. 2(k) exists between-

Parties to the dispute who may be

 Employers and workmen

 Employers and Employers

 Workmen and workmen

a) There should be a factum of dispute not merely a difference of opinion.

b) It has to be espoused by the union in writing at the commencement of the
dispute. Subsequent espousal will render the reference invalid. Therefore date
when the dispute was espoused is very important.

c) It affects the interests of not merely an individual workman but several

workmen as a class who are working in an industrial establishment.

d) The dispute may be in relation to any workman or workmen or any other

person in whom they are interested as a body.

Chandrakant Tukaram Nikam and others vs. Municipal Corporation of

Ahmedabad and another[i]: It was held by the Supreme Court that the
Jurisdiction of the Civil Court was impliedly barred in cases of the dismissal
or removal from service, The appropriate forum for such relief was one
constituted under Industrial Disputes Act, 1947.

Jadhav J. H. vs. Forbes Gobak Ltd.[ii]: In this case, it was held that, a dispute
relating to a single workman may be an industrial dispute if either it is
espoused by the union or by a number of workmen irrespective of the reason
the union espousing the cause of workman was not the majority of the union.

When An Individual Dispute Becomes An

Industrial Dispute
Before insertion of Section 2-A of the Act an individual dispute could not per
se be an industrial dispute, but it could become one if taken up by the Trade
Union or a number of workmen. The Supreme Court and majority of Industrial
Tribunals held that, a dispute raised by a dismissed employee would not be
treated as an industrial dispute, unless it is supported by a trade union or by a
body or Section of workman.

For an individual dispute to be declared as an Industrial Dispute, the following

conditions are to be satisfied:
 1. A body of workmen (trade Union ) or a considerable number of
workmen, are found to have made common cause with the individual
workman;

2. That the dispute (individual dispute) was taken up or sponsored by the

workmen as a body (trade union) or by a considerable Section of them
before the date of reference.

Bombay Union of Journalists vs. The Hindu[iii]: A person working in ‘The

Hindu, Madras’ was terminated for claiming as full time employee. The
Bombay Union of Journalist raised the dispute. It was found that, there were
ten employees of which seven in administrative side and only three in
journalism side. Of these three, only two were the members of the union.
Therefore, the Supreme Court held that the Bombay Union of Journalists is
not competent to raise this dispute. Even if it had raised, it could not have
become an industrial dispute.

Workmen of Indian Express Newspapers Ltd. vs. Management Indian Express

Newspapers[iv]: A dispute relating to two workmen of Indian Express
Newspapers Ltd, was espoused by the Delhi Union of Journalists which was
an outside union. About 25 percent of the working journalists of the Indian
Express were members of that union. But there was no union of the
journalists of the Indian Express. It was held that the Delhi Union of
Journalists could be said to have a representative character Qua the working
journalists employed Indian Express and the dispute was thus transformed
into an industrial dispute.

Thus, an individual dispute to fall within the definition of industrial dispute, it

must be sponsored by the Trade Union of the workmen or if there is no trade
union, it must be sponsored by the majority of the workmen or it must comply
with the requirements of Section 2-A of the Industrial Disputes Act, 1947.

Section 2-A provides that “where any employer discharges, dismisses,

retrenches or otherwise terminated the services of any individual workman,
any dispute or difference between that workman and his employer connected
with, or arising out of such discharge, dismissal, retrenchment or termination
shall be deemed to be an industrial dispute, notwithstanding that no other
workman nor any union of workmen, is a party to the dispute.”

 Any workman may make an application directly to the labour court or

Industrial Tribunal for adjudication of such dispute after the expiry of 3
months when an application was made before the conciliation officer.
This has been done to prevent inordinate delay.

 The said application however should be made within 3 years of the

date of dismissal, discharge, retrenchment or termination of service.

 The court shall proceed to hear the matter as if it was referred to it U/S
10 of the ID Act.

Section 2A does not declare all individual disputes to be industrial disputes. It

is only when a dispute is connected with a discharged, dismissed retrenched
or terminated workman that it shall be treated as an industrial dispute. If the
dispute or difference is connected with some other matter e.g. payment of
bonus/ gratuity etc. then it would have to satisfy the test laid down in judicial
decisions. Thus only a collective dispute could constitute an industrial dispute
but collective dispute does not mean that the dispute should either be
sponsored by a recognized union or that all or majority of the workmen of an
industrial establishment should be parties to it. (State of Bihar vs. kripa
Shankar Jaiswal[v])

A dispute is an industrial dispute even where it is sponsored by a union which

is not registered but the Trade Union must not be on unconnected with the
employer or the industry concerned. (Express Newspapers (Private) Ltd. Vs.
First Labour Court, West Bengal & Others[vi])

Where an individual dispute is espoused by union the question of the

employee being a member of the union when the cause arose is immaterial.
Those taking up the cause of the aggrieved workman must be in the same
employment i.e., there must be community of interest when the act
complained against happened and not when the dispute was referred to.
Section 2 (k) compared with Section 2-A
An individual dispute even though not sponsored by other workmen or
espoused by the union would by deemed to be an industrial dispute if it
covers any of the matters mentioned in Section 2-A. So far as the subject
matter of the dispute is concerned 2-A does not bring about any change. The
provisions of Section 2(K) alone determine that question.

The only change introduced by Section 2-A is that before its introduction, a
dispute even though was an industrial dispute from the perspective of
subjects referred to in Section 2 (k) would not have become an industrial
dispute if it were only an individual dispute and it was not taken up either by
the union or by a substantial body or workmen. But after the introduction of
Section 2-A such a dispute would be an industrial dispute in respect of those
matters specified in that Section even though it is not sponsored by a union or
a considerable number of workmen. Section 2-A can be treated as an
explanation to Section 2 (k)

Ans 8

The three methods for settlement of industrial disputes are as

follows: 1. Conciliation 2. Arbitration 3. Adjudication.

Failure of the employees and the employers to sort out their

differences bilaterally leads to the emergence of industrial
disputes. The Industrial Disputes Act, 1947 provides legalistic
machinery for settlement of such disputes by involving the
interference of a third party.
The settlement machinery as provided by the Act
consists of the three methods:
ADVERTISEMENTS:

1. Conciliation

2. Arbitration

3. Adjudication

These are discussed one by one.

1. Conciliation:
In simple sense, conciliation means reconciliation of
differences between persons. Conciliation refers to the process
by which representatives of workers and employers are
brought together before a third party with a view to
persuading them to arrive at an agreement by mutual
discussion between them. The alternative name which is used
for conciliation is mediation. The third party may be one
individual or a group of people.

ADVERTISEMENTS:

In view of its objective to settle disputes as quickly as

possible, conciliation is characterised by the
following features:
(i) The conciliator or mediator tries to remove the difference
between the parties.
(ii) He/she persuades the parties to think over the matter with
a problem-solving approach, i.e., with a give and take
approach.

ADVERTISEMENTS:

(iii) He/she only persuades the disputants to reach a solution

and never imposes his/her own viewpoint.

(iv) The conciliator may change his approach from case to case
as he/she finds fit depending on other factors.

According to the Industrial Disputes Act 1947, the

conciliation machinery in India consists of the
following:
1. Conciliation Officer

ADVERTISEMENTS:

2. Board of Conciliation

3. Court of Enquiry

A brief description of each of these follows:

Conciliation Officer:
The Industrial Disputes Act, 1947, under its Section 4,
provides for the appropriate government to appoint such
number of persons as it thinks fit to be conciliation officers.
Here, the appropriate government means one in whose
jurisdiction the disputes fall.

ADVERTISEMENTS:
While the Commissioner /additional commissioner/deputy
commissioner is appointed as conciliation officer for
undertakings employing 20 or more persons, at the State level,
officers from central Labour Commission office are appointed
as conciliation officers, in the case of Central government. The
conciliation officer enjoys the powers of a civil court. He is
expected to give judgment within 14 days of the
commencement of the conciliation proceedings. The
judgement given by him is binding on the parties to the
dispute.

Board of Conciliation:
In case the conciliation officer fails to resolve the dispute
between the disputants, under Section 5 of the Industrial
Disputes Act, 1947, the appropriate government can appoint a
Board of Conciliation. Thus, the Board of Conciliation is not a
permanent institution like conciliation officer. It is an adhoc
body consisting of a chairman and two or four other members
nominated in equal numbers by the parties to the dispute.

The Board enjoys the powers of civil court. The Board admits
disputes only referred to it by the government. It follows the
same conciliation proceedings as is followed by the
conciliation officer. The Board is expected to give its judgment
within two months of the date on which the dispute was
referred to it.

In India, appointment of the Board of Conciliation is rare for

the settlement of disputes. In practice, settling disputes
through a conciliation officer is more common and flexible.
2. Arbitration:
Arbitration is a process in which the conflicting parties agree
to refer their dispute to a neutral third party known as
‘Arbitrator’. Arbitration differs from conciliation in the sense
that in arbitration the arbitrator gives his judgment on a
dispute while in conciliation, the conciliator disputing parties
to reach at a decision.

The arbitrator does not enjoy any judicial powers. The

arbitrator listens to the view points of the conflicting parties
and then gives his decision which is binding on all the parties.
The judgment on the dispute is sent to the government. The
government publishes the judgment within 30 days of its
submission and the same becomes enforceable after 30 days of
its publication. In India, there are two types of arbitration:
Voluntary and Compulsory.

Voluntary Arbitration:
In voluntary arbitration both the conflicting parties appoint a
neutral third party as arbitrator. The arbitrator acts only when
the dispute is referred to him/her. With a view to promote
voluntary arbitration, the Government of India has constituted
a tripartite National Arbitration Promotion Board in July
1987, consisting of representatives of employees (trade
employers and the Government. However, the voluntary
arbitration could not be successful because the judgments
given by it are not binding on the disputants. Yes, moral
binding is exception to it.

Compulsory Arbitration:
In compulsory arbitration, the government can force the
disputing parties to go for compulsory arbitration. In other
form, both the disputing parties can request the government
to refer their dispute for arbitration. The judgment given by
the arbitrator is binding on the parties of dispute.

3. Adjudication:
The ultimate legal remedy for the settlement of an unresolved
dispute is its reference to adjudication by the government. The
government can refer the dispute to adjudication with or
without the consent of the disputing parties. When the dispute
is referred to adjudication with the consent of the disputing
parties, it is called ‘voluntary adjudication.’ When the
government herself refers the dispute to adjudication without
consulting the concerned parties, it is known as ‘compulsory
adjudication.

The Industrial Disputes Act, 1947 provides three-tier

machinery for the adjudication of industrial disputes:
1. Labour Court

2. Industrial Tribunal

3. National Tribunal

A brief description on these follows:

Labour Court:
ADVERTISEMENTS:

Under Section 7 of the Industrial Disputes Act, 1947, the

appropriate Government by notifying in the official Gazette,
may constitute Labour Court for adjudication of the industrial
disputes The labour court consists of one independent person
who is the presiding officer or has been a judge of a High
Court, or has been a district judge or additional district judge
for not less than 3 years, or has been a presiding officer of a
labour court for not less than 5 years. The labour court deals
with the matters specified in the second schedule of the
Industrial Disputes Act, 1947.

These relate to:

1. The property or legality of an employer to pass an order
under the standing orders.

2. The application and interpretation of standing orders.

ADVERTISEMENTS:

3. Discharge or dismissal of workers including reinstatement

or grant of relief to workmen wrongfully dismissed.

4. Withdrawal of any statutory concession or privilege.

5. Illegality or otherwise of a strike or lockout.

6. All matters other than those reserved for industrial

tribunals.

Industrial Tribunal:
Under Section 7A of the Act, the appropriate Government may
constitute one or more Industrial tribunals for the
adjudication of industrial disputes. Compared to labour court,
industrial tribunals have a wider jurisdiction. An industrial
tribunal is also constituted for a limited period for a particular
dispute on an adhoc basis.

The matters that come within the jurisdiction of an

industrial tribunal include the following:
1. Wages, including the period and mode of payment.

2. Compensatory and other allowances.

3. Hours of work and rest periods.

4. Leave with wages and holidays.

5. Bonus, profit sharing, provident fund, and gratuity.

6. Classification by grades.

7. Rules of discipline.

8. Rationalisation.

9. Retrenchment of employees and closure of an establishment

or undertaking.

10. Any other matter that can be prescribed.

National Tribunal:
This is the third one man adjudicatory body appointed by the
Central Government by notification in the Official Gazette for
the adjudication of industrial disputes of national importance.
The central Government may, if it thinks fit, appoint two
persons as assessors to advise the National Tribunal. When a
national tribunal has been referred to, no labour court or
industrial tribunal shall have any jurisdiction to adjudicate
upon such matter.

The main highlights revealed from figures in Table

25.7 are gleaned as follows:
1. That referring of disputes conciliation machinery is a
common practice is well indicated by a large number of
disputes taken for conciliation.

2. One average, around one-third of the disputes referred for

conciliation failed. Of these, about 60 to 90 per cent of cases
were referred to adjudication. Only one per cent of the cases
were referred for arbitration. These underline the
ineffectiveness of conciliation machinery in settling industrial
disputes. Thus, the existing machinery for the settlement of
industrial disputes, as provided under the Industrial Disputes
Act, 1947, needs to be strengthened.

3. Adjudication has proved the most popular way of settling

industrial disputes in India. This is because adjudication is the
last recourse for disputing parties to settle their disputes.

Here it is noteworthy that the data given in the Table 25.7 is

incomplete in the sense that in no year did all the States and
Union Territories send all the information. For example in
some years as many as 12 States and Union Territories did not
furnish information to the Union Ministry of labour, as can be
verified from the latter’s annual reports for the years decrease
in the number of disputes taken for conciliation from 47,788
in 19801 in 981 is explained by the same reason, i.e. non-
furnishment of information on dispute conciliation by all
States and Union Territories.

Finally, following are a few suggestions to make the

settlement machinery more effective:
1. The trained and experienced officers who are well
acquainted with the problems of industrial workers should be
entrusted with the responsibility of dealing with conciliation
machinery Political and administrative interference should not
be allowed to cloud the functioning of conciliation machinery.

2. One way to strengthen the adjudication machinery is to

substitute it by setting up Industrial Relations Commissions
(IRCs), both at the Central and the State level, on the lines
suggested by the National Commission on Labour. The IRC
should also be empowered to oversee the working of the
conciliation machinery.

3. In order to make arbitration fair, the arbitrator chosen for

settling disputes be mutually acceptable to both the union and
the management. This can be facilitated if the government
prepares the panel of experienced arbitrators at the national
and the state levels so that arbitrators are chosen from the
panel, as and when required.

4. The government should refrain from actively intervening in

the matters of industrial disputes unless it is must for her to
intervene in the disputes.

ANS 9

The growth and development of labour movement

and that of trade unions in India can be studied under
the following stages:
(1) Period upto First World War (from 1875 to 1918):
Due to the development of large scale industries, many social
evils like employment and exploitation of woman and child
labour erupted in India who work in the deplorable
conditions, more likely worse than the conditions of labour in
England. Workers were not organised at that time and were
very often at the mercy of the employers.

The first concerted action was taken in 1875 under the

leadership of Sorabji Shaparji who along with some social
workers started the agitation to draw the attention of the
Government to the deplorable conditions of woman and child
labour in Indian industries. Strikes were not absent even in
the 19th century. In 1877, workers of The Empress Mills at
Nagpur observed a strike over wage rates.

ADVERTISEMENTS:

One of the important incidents in the eighties was the holding

of the labour conference in 1884 in Bombay under the
leadership of N.M. Lokhande who was a factory worker. A
Memorandum was submitted to the Second Factory
Commission to highlight the poor conditions of the workers,
but no improvement was noticed. As a result, a mass meeting
was organised in Bombay on April 21, 1890 which was
attended by about 10,000 workers.

The meeting passed a resolution demanding:

(i) One weekly off day,

(ii) Half an hour’s rest at noon,

(iii) Reduction in working hours,

(iv) Payment of wages not later than the 15th day of the
month, and

(v) Compensation to injuries sustained by a worker on duty.

The mill owners agreed to grant a weekly holiday to textile

workers. Encouraged by this success, the Bombay Millhand
Association was formed in 1890 by Shri N. M. Lokhande. This
was the first trade union in India. Mr. Lokhande also started
the workers’ first newspaper, known as DINABANDHU; the
purpose was to place the legitimate grievances of the workers
before the authorities and also to educate the workers.

This was the memorable achievement in the trade union

movement in India prior to 20th century which made an
impact throughout the country. The period 1882 to 1890, had
witnessed 24 strikes in the two provinces of Bombay and
Madras.

ADVERTISEMENTS:

In subsequent years, a number of unions were

formed such as:
(a) The Amalgamated Society of Railway Servants of India and
Burma (for European and Anglo-Indian railway employees);

(b) The Printers’ Union of Calcutta, 1905;

(c) The Bombay Postal Union at Calcutta and Madras, 1907;

ADVERTISEMENTS:

(d) The Kamgar Hitwardhak Sabha, 1909; and

(e) The Social Service League, 1910.

However, these were sporadic organisations and could not

make the real start in the labour movement. The leaders of
such organisations were primarily social reformers and law
abiding persons and belonged to moderate school of politics.
The objectives of these associations were to promote welfare
activities.

Actually, these associations were not trade unions. They

focused attention of the public to the necessity of improving
the working conditions in the factories and laid foundations
for the establishment of trade unions, which came into
existence after the First World War.

ADVERTISEMENTS:

(2) Between the Two Great Wars (1918-1938):

After the First World War trade union movement got
intensified and the leadership of trade unions passed from the
hands of social workers into the hands of politicians. That was
the year of labour unrest all over the country.

The factors responsible for this situation were:

(i) The industrial unrest grew up as a result grave economic
difficulties created by the war. The rising cost of living
prompted the workers to take collective action for the increase
in their wages.

ADVERTISEMENTS:

(ii) The Swaraj Movement also intensified the movement,

widened the gulf between employers and employees and
brought about mass awakening among the workers
demanding racial equality with their British employers.

(iii) The success of Russian Revolution 1917 also created a

revolutionary wave of ideas, class consciousness and self-
respect among workers.

(iv) The establishment of the International Labour

Organisation in 1919 gave dignity to the workers all over the
world and inspired the Labour movement.
(v) The non-cooperation movement of Mahatma Gandhi
during 1920-21 and his support to the demands of working
class also greatly influenced the labour movement.

At about 1920, a number of trade unions were formed. The

Madras Textile Labour union was formed in 1918 by B.P.
Wadia which led the formation of another 14 unions during
1918-19. The active association of Mahatma Gandhi with the
Ahmedabad Textile Labour Association gave a new turn to the
labour movement by applying the principle of non-violence.

The Government nominated some delegates to the first

conference of the International Labour Organisation (ILO) in
Washington in 1919 without taking into account the then
existing trade unions. As a result, all the 64 trade unions with
a membership of 1,40,854 met in Bombay and established the
All India Trade Union Congress (AITUC) on 30th October,
1920 as a central organisation of trade unions.

The move was supported by a number of leaders of All India

Congress including Sri Jawaharlal Nehru, Motilal Nehru,
Guljari Lai Nanda, Sardar Vallabh Bhai Patel, C.R. Das etc.
The main aim of this association was to facilitate the selection
of delegates to ILO and also coordinating the functions of
individual trade unions.

The ILO in 1921 adopted a resolution which emphasised that

the labour should be given full freedom to form a union. Thus
trade union movement gets great momentum during 1920’s.
The number of unions had grown to 167 claiming a
membership of 2.23 lakh workers in 1924.
In 1926, the Trade Union Act was passed and a period of
regulated trade unionism started. It was a central law which
provided a legal status to the registered trade unions and
conferred on them and their members a measure of immunity
from civil suits and criminal prosecutions.

This improved the image of trade unions in the public. The Act
was proved a boon to the trade unionism in India. The existing
trade unions were registered under the Act and tried to get
them recognised. Apart from it, several new unions came into
being.

By 1929, AITUC was the only central trade union. In 1930,

there was a split in the AITUC on account of ideological
differences which prompted the creation of a new organisation
in the name of All India Trade Union Federation (A.I.T.U.F.)
under the leadership of Shri N.M. Joshi. The AITUF was
renamed as Nation Trade Union Federation (NTUF) in 1933.

With the formation of AITUF, the strength of the AITUC was

reduced to 21 unions with a membership of 94,000 only. In
1931, there was another rift in the AITUC at the Calcutta
session due to the fundamental differences between the
communist and the left wing unionists. The communists led by
B.T. Ranadive and S.V. Deshpande formed a new organisation
named. Red Trade Union Congress (RTUC).

Thus, at this time there were three central labour

organisations i.e. AITUC, AITUF and RTUC and there were
some other independent organisations like the All India
Railwaymen’s Federation (AIRF) and the Textile Labour
Association (TLA) of Ahmedabad.
After the first split of AITUC, efforts were made towards trade
union unity through the Roy group. The lead was taken by the
All India Railwaymen’s Federation (AIRF) which was a neutral
body. It formed a Trade Union Unity Committee in 1932 at its
Bombay conference. By the efforts of AIRF, certain broad
conclusions were drawn which were agreeable to both the
wings of the labour i.e., AITUF and the AITUC.

The final decision was taken in 1933, when a new body in the
name of the National Federation of Labour (NFL) was formed.
The AITUF and the railway unions amalgamated with the NFL
under the new name National Trade Union Federation
(NTUF). The AITUC and the RTUC, however, were
unconcerned with this development.

The division in the labour movement proved very costly. In

1933, more than 50.000 workers in Bombay city were thrown
out of employment and the wage rates were cut drastically
under these circumstances, the period was very critical and
needed unity efforts. In 1935, the RTUC was merged into the
AITUC which was recognised by then as the central
organisation.

In 1937, there were general elections and the Indian National

Congress pledged in its manifesto that if it was voted to power,
it would improve the lot of workers by improving their living
standard, working conditions, and by providing security
against old age, sickness and unemployment.

As a result of this alluring manifesto, the Congress came to

power in Seven States. There was a big upsurge of industrial
unrest culminating in big strikes. In 1937, there were 379
strikes involving about 6.47 lakh workers and resulting in a
loss of about 89.82 lakh man days.

In 1938, there was another unity move through the efforts of

V.V. Giri, the AITUC in its Nagpur session finally accepted the
terms for merger as laid down by the NTUF.

(3) During and After the Second World War (1939-

1947):
The Second World war which broke out in September 1939,
created new status in the united trade union movement. The
leaders of the various factions in the AITUC again divided on
the question of whether the AITUC should support the
Government on war. Again a rift took place in 1941 and the
Radicals left the AITUC and formed a new central labour
federation known as the Indian Federation of Labour (IFL).

The shifts in the national political situation, continued to

affect the Indian labour movement. The political situation
compelled the communists of India to support the
Government on war issue and leadership of AITUC which was
in the hands of Indian National Congress, fell into the hands of
communists.

During war-time, the trade unions consolidated their

position due to certain factors namely:
(i) The Government and a number of employers launched a
number of welfare measures in a bid to increase production of
war materials and other essential goods and to maintain high
profits;
(ii) Recognition was awarded by many employers to gain the
support of workers in production. It gave strength to unions;

(iii) The Defence of India Rule 81-A was promulgated

prohibiting the strikes and lockouts and providing that all
disputes would be referred to adjudication and their rewards
would be enforced;

(iv) A tripartite Labour Conference was convened in 1942, for

the first time, to provide a common platform for discussion
and mutual understanding between employers and employees.

During war time, the trade union strength grew 865 upto
1944-45 with a membership of 8.89 lakh workers.

In 1947, the Indian national Trade Union Congress (INTUC)

was formed as a labour wing of The Indian National Congress.

(4) Post Independence Period (1947 to date):

Independence and the partition of the country shattered the
hope of the workers for securing high wages and better
working conditions from the national Government. In order to
retain the amenities already earned by the workers, a series of
strikes swept the country in 1947 in which 165.63 lakh man-
days were lost and 18.41 lakh workers were involved.

In post-independence period, various political parties formed

and kept control over various trade unions. In 1948, when
socialist group broke away from the congress in 1948 and
formed a new political party i.e., Praja Socialist party.

The trade union leaders working in the INTUC and were

supporters of the newly formed political party, seceded from it
and formed a new central trade union organisation called the
Hindustan Mazdoor Panchayat (HMP). The HMP and the
Indian Federation of Labour merged together in the name of
Hind Mazdoor Sabha (HMS) in 1948.

In 1949, the radicals and leftist groups, which did not agree
with the principles of both AITUC and HMS left the AITUC
and formed another organization in the name of United Trade
Union Congress (UTUC) on 30th April 1949.

On a close observation, one can realise that the trade union

movement in India has become politically motivated. Hence
any split in a political party leads to the same type of split in
the trade union dominated by that party.

Thus, by 1949, there were four central organisations led by

different political parties i.e., the INTUC led by Congress, the
AITUC dominated by the communists, the HMS, affiliated to
the Socialist party and the UTUC, led by the Revolutionary
Socialist party. It was an indication that the political
involvement in trade union movement still continued. After
1952, a number of efforts were made for bringing about some
unity in the movement but all failed.

In 1959, a few unions led by the members of the Socialist party

seceded from the HMS and formed Hind Mazdoor Panchayat,
an organisation of Samyukta Socialist Party. In 1962, a new
organisation called Confederation of Free Trade Unions
(CFTU) was formed with the support of Swatantra Party.

There was again a rift in the AITUC in 1970 when the

Communists divided into CPI and CPM. The CPI held the
AITUC and the CPM formed a new central organisation: the
Centre of Indian Trade Union (CITU).

In 1972, the Indian National Congress split in two groups,

resulting in the division of INTUC in two groups. The ruling
Congress retained its control over the INTUC and the
organisation Congress formed a new union: National Labour
Organisation (NLO). Unions in Gujarat and Kerala are
affiliated to this union (NLO).

Another interesting development took place in May 1972,

when a limited accord was reached between the AITUC, the
INTUC and the HMS regarding the procedure to be followed
for the recognition of trade unions. As a result, a National
Council of Central Trade Unions (NCCTU) was formed with
representative of the AITUC, INTUC and HMS. The basic idea
behind it was to isolate the CITU. The CITU, soon set up a
United Council of Trade Unions (UCTU) in September; 1972
as a rival body of NCCTU.

After the declaration of Emergency again, the INTUC, the

AITUC and the HMS combined and joined with the
Employers’ representatives on what was called the National
Apex Body. This body ceased to exist as soon as the state of
Emergency was lifted.

Present Scenario of the Trade Union Movement:

The Indian Trade unions have now got a legal status and now
they are not as ad-hoc bodies or strike committees. They have
now become a permanent feature of the industrial society.
They have succeeded in organising Central Union Federations
which help in the determination of principles, philosophy,
ideology and purposes of the unions and give some sense of
direction to the otherwise scattered and isolated unions.

The unions now have gained a remarkable status in the labour

movement. Now, the Government and the employers consult
them on all matters concerning labour. Unions also participate
in formulating policies and ideologies at State and National
levels. Due to various reasons such as affiliation to a political
party etc., led to multiplicity of unions in post-independence
period.

Through the status, the unions have now gained; they have
influenced public policy, labour and industrial legislations.
They have succeeded in evolving suitable machinery of joint
consultation to negotiate various issues between labour and
management.

In the modern industrial society, the importance of trade

unions have been recognised which have diminished interest
in political matters. Subtle changes are visible in the pattern of
political unionism.

These changes have manifested in three ways:

(i) Political leaders have secondary interest in labour union
activities. Now more emphasis has been paid to labour
leadership by giving more attention to the improvement of
union cadre, finances and training in official administration.

(ii) The national federations have shown keen interest in long

term activities, even maintaining their rival character. Now
federations arranges for the training of workers.
(iii) Now trade unions function as autonomous units rather
than simply as appendage of political parties.

Central Trade Unions:

At present, there is a number of central trade union
organisations but five major central trade unions each having
a membership of above 5 lakhs and all India character.

The central organisations are: The All India Trade Union

Congress (AITUC), The Indian National Trade Union Congress
(INTUC), the Centre of Indian Trade Union (CITU), the
Bharatiya Mazdoor Sangh (BMS) and the Hind Mazdoor
Sabha (HMS). All these organisations are being controlled by
different political parties.

Besides, there are various registered federations of unions in

various industries and occupations, not affiliated to any
central organisations. These are: The All India Bank
Employees Association, National Federation of Indian
Railwaymen, All India Port and Dock Workers Federation,
National Federation of Post and Telegraph Workers, All India
Mine Workers Federation, Indian Federation of working
socialists etc.

ANS 10

The four procedure involved in registration of trade unions are

as follows: 1. Appointment of Registrar 2. Mode of
Registration 3. Rights and Duties of Registrar 4. Legal Status
of Registered Trade Union.
1. Appointment of Registrar:
Section 3 of the Trade Union Act, 1926 empowers the
appropriate Government to appoint a person to be registrar of
Trade Unions. The appropriate Government be it State or
Central, as the case may be is also empowered to appoint
additional and Deputy Registrars as it thinks fit for the
purpose of exercising and discharging the powers and duties
of the Registrar. However, such person will work under the
superintendence and direction of the Registrar. He may
exercise such powers and functions of Registrar with local
limit as may be specified for this purpose.

2. Mode of Registration:
Any seven or more persons who want to form trade union, can
apply for its registration to the Registration of Trade Unions
under Section 4 (1) of the Trade Unions Act, 1926. These
applicants must be members of a trade union.

ADVERTISEMENTS:

In order to check the multiplicity of trade unions, one school

of thought has proposed the number of persons farming a
trade union for the purposes of registration be reasonably
increased to 10 per cent of employees of the unit, subject to
minimum of seven persons employed therein This is expected
to strengthen the trade union movement. The application for
registration must be sent to the Registrar of Trade Unions in
Form “A” as required by the Trade Union Act, 1926 under
Section 5.
Every application must be accompanied with the
following particulars:
1. The names, occupations and addresses of the members
making application.

2. The name of the trade union and the address of its head
office.

ADVERTISEMENTS:

3. The titles, names, ages, addresses and occupations of the

office bearers of the trade union.

4 If a trade union has been in existence for more than one year
prior to application of its registration, a financial statement
showing its assets and liabilities prepared in the prescribed
form has also to be submitted to the Registrar along with the
application for registration.

5. Besides, every application must be accompanied with a copy

of Rules of Trade union complying with the items as specified
under Section 6 of the Trade Unions Act, 1926.

Rules of a Trade Union:

ADVERTISEMENTS:

A trade union can be registered only when its

constitution fulfils the following rules:
1. Name of the trade union;

2. The whole of the objects for which the trade union has been
established;
3. The whole of the purposes for which the general funds of a
trade union shall be applicable.

ADVERTISEMENTS:

4. The maintenance of a list of the members of the trade union

and adequate facilities for the inspection thereof by the office-
bearers and members of trade union;

5. The payment of a subscription by members of the trade

union which shall be not less than 25 naya paise per month
per member;

6. The manner in which rules will be amended varied and/or

rescinded;

7. The manner in which the members of the executive and the

other office-bearers of the trade union shall be appointed and
removed;

ADVERTISEMENTS:

8. The manner in which the funds of the trade union shall be

kept and audited and inspection of the books of accounts by
the office bearers and members of the trade union be made;

9. The conditions under which any member shall be entitled to

have benefits under the rules and under which fine or
forfeiture shall be imposed on the members; and The manner
in which the trade union shall be dissolved.

3. Rights and Duties of Registrar:

Section 7 of the Act empowers the Registrar of Trade Union to
make, if required so, further enquiries on receipt of an
application for registration to fully satisfy himself that the
application complies with the provisions of section 5.
However, such enquiries can be made only from the
application and not from any other source.

The duties of the Registrar of Trade Unions in matters of

registration of trade union are laid down under Section 8 of
the Act. On having being satisfied with the requirements for
the registration of the union, the Registrar shall register the
trade union by entering in a register. The letter to this effect
will be issued to the Trade Union. In case of non-satisfaction
of registrar with the compliance of requirements, the refusal
for registration will be issued to the trade union.

No time limit for the grant or refusal of registration has been

prescribed in the Trade Union Act, 1926. However, there are
legal directives issued by the Court to the Registrar of Trade
Unions to perform me statutory duty imposed upon mm under
sections 7 and 8 to deal with the application of the Trade
Union according to law at an early date

The National Commission on Labour has suggested 30 days

excluding the time which the Union takes in answering queries
from the Registrar for the grant or refusal of registration by
the Registrar. The Trade Unions (Amendment) Bill, 1982 has
provided for insertion of the words “within a period of 60 days
from the date of such compliance” after the words “Register
the Trade Unions” in Section 8 of the Trade Unions Act, 1926.
Where, however, Registrar refuses to grant registration to a
trade union, he is under an obligation to state reasons for
refusing to grant registration.

The Societies of Registration Act, 1860, Co-operative Societies

Act, 1912 and the Companies Act, 1956 do not apply to trade
unions and registration thereof under any of these Acts is void
ab initio.

4. Legal Status of Registered Trade Union:

Upon the registration, a trade union assumes to a corporate
body by the name under which it is registered. A registered
trade union shall have perpetual succession and its common
seal. A registered trade union is an entity distinct from the
members of which, the trade union is composed of It enjoys
power to contract and to hold property both moveable and
immoveable and to sue and be sued by the name in which it is
registered.

ANS 11
Advantages of trade union recognition
Some employers prefer to deal directly with their workers - or their elected
representatives - without trade union involvement.

However, recognising and working closely with a trade union has a number of
advantages.

Single point of contact

Having a single body for negotiating terms and conditions for workers is
simpler than dealing with workers individually.

However, once you have agreed to this collective style of negotiating, you'll
be obliged to disclose certain information to the union for collective
bargaining purposes - seerecognising and derecognising a trade union.
Worker involvement
If you negotiate terms and conditions and consult on workplace issues with a
recognised union:
 your workers are likely to feel more involved in the way the business is
run
 you can encourage trust and commitment among the workforce
In turn, these may help your business by improving retention rates.

Experience of employment relations

Trade unions represent not only the workers in your business, but many others
in similar, related organisations. Therefore, they're likely to have a broad
perspective on many issues affecting your organisation.
Union representatives with experience of employment relations in particular
are a useful source of legal and good-practice advice on HR and employment
law issues. This experience may be especially useful during difficult times, eg
during proposed collective redundancies or business transfers - see the role
of trade unions and their representatives.
If you can show the union representatives that you are interested to hear
about your workers' concerns, they in turn may help get your message
across to their members. Even unpopular decisions may be more acceptable
to your workers if you can persuade them and their union that a change is
necessary for the continued health of the business. For more information, see
how to inform and consult your employees.
Informing and consulting with experienced union representatives -
together with input from workers - can also help you make better-informed
business decisions in general, eg in relation to shift patterns or the kind of
equipment you should invest in
Recognised unions have certain rights,

 the right to raise issues with the management,

 right to collect membership fees within the premises of the

organisation,

 ability to demand check-off facility,

 ability to put up a notice board on the premises for union

announcements,

 ability to hold discussions with employees at a suitable place within the

premises

 right to discuss members’ grievances with employer,

 ability to inspect before hand a place of employment or work of its

members, and

 nomination of its representatives on committees formed by the

management for industrial relations purposes as well as in statutory
bipartite committees.
ANS 12
Prior to 1991 economic reforms in India, the trade unions in the Indian industry exhibited
a domineering stance. There were frequent labour strikes, often triggered, supported and
sustained by political factors. Post-reforms, the pressures of liberalization, privatization
and globalization forced the central and state governments to support the capitalist class
which adopted various cost-reduction and profit-maximization measures. The adoption
of these measures led to fragmentation of labour movement and increased the
helplessness of the unions. Even the trade unions in the public sector experienced
worsening of their position. However, the absence of strong unions has been creating
problems for the capitalist as well as for the workers. Hence it has become important to
revive the status of trade unions. However, the trade union initiatives for revival should be
in consonance with the new market driven business environment and should focus on
making positive contribution in business growth rather than playing an antagonistic role.
On employee front, trade unions have to ensure education, skill enhancement, and
professionalization of employees to prepare them for meeting the challenges posed by
the LPG model.
The LPG model meant intensification competition between firms and national boundaries did not 
matter for capital or products. The market logic displaced state intervention. The bargaining power of 
capital vis­à­vis unions increased and the state faced the compulsions of market logic. Judiciary 
consistent with changed times delivered judgements that questioned the established rights of workers. 
Employers demand labour reforms. Jobs (especially regular jobs) are vanishing from the organized 
sector and the traditional base of unions is shrinking. Employers continued the managerial strategies 
(employment and IR policies) developed in the late1980s (see Shrouti and Nandkumar, 1995) and 
invented new ones, which further weaken the union base. New sectors like information technology 
(IT), business process outsourcing (BPO), big retail outlets, proliferation of special economic zones 
(SEZs) offer challenges to unions. Informal sector employs a big chunk of workforce and unions 
needed to pay attention to this sector also

ANS 13

Trade Unions: Objectives, Function, Formation,

Regulation, Rights and Liabilities!
“A trade union is a combination of persons. Whether
temporary or permanent, primarily for the purpose of
regulating the relations between workers and employers or
between workers for imposing restrictive conditions on the
conduct of any trade or business and includes the federations
of two or more trade unions as per Sec. 2 (6) Trade Unions
Act, 1926.
ADVERTISEMENTS:

“A Trade Union is an organisation of workers, acting

collectively, who seek to protect and promote their mutual
interests through collective bargaining”.

Objectives:
Following are the objectives of trade unions:
1. Ensure Security of Workers:
This involves continued employment of workers, prevent
retrenchment, lay off or lock-outs. Restrict application of “fire”
or dismissal or discharge and VRS.

ADVERTISEMENTS:

2. Obtain Better Economic Returns:

This involves wages hike at periodic intervals, bonus at higher
rate, other admissible allowances, subsidized canteen and
transport facilities.

3. Secure Power To Influence Management:

This involves workers’ participation in management, decision
making, role of union in policy decisions affecting workers,
and staff members.

ADVERTISEMENTS:

4. Secure Power To Influence Government:

This involves influence on government to pass labour
legislation which improves working conditions, safety, welfare,
security and retirement benefits of workers and their
dependents, seek redressal of grievances as and when needed.
Functions of a Trade Union:
The important basic functions of unions listed by National
Commission on labour are:

ADVERTISEMENTS:

(i) To secure fair wages to workers.

(ii) To safeguard security of tenure and improve conditions of

service.

(iii) To enlarge opportunities for promotion and training.

(iv) To improve working and living conditions.

ADVERTISEMENTS:

(v) To provide for educational, cultural and recreational

facilities.

(vi) To co-operate in and facilitate technological advance by

broadening the understanding of workers on its underlying
issues.

(vii) To promote identity of interests of workers with their

industry.

(viii) To offer responsive co-operation in improving levels of

production and productivity, discipline and high standards of
quality and

ADVERTISEMENTS:

(ix) To promote individual and collective welfare.

Trade Union as an Organisation:
Most of the workers are members of any one of the trade
unions.

There are many reasons of membership and some of

which are given below:
(a) Security of employment and protection against calamity of
accident, death and secure social security cover after
retirement.

ADVERTISEMENTS:

(b) Meeting companionship and affiliation need and improve

one’s influence with management.

(c) To get a common platform—to air one’s views, aims ideas

and feelings and obtain recognition and status among fellow
workers.

(d) Make use of the “principle of unity” for the purpose of

securing good working conditions, high economic
compensations, better career prospects and welfare needs.

(e) Restrict management actions which are against the interest

of workers.

Formation and Registration of Trade Union:

The following steps are involved in the registration of
trade union:
Appointment of Registrars:
(a) The appropriate government shall appoint a person to be
the registrar of trade unions for each state. The appropriate
government may appoint as many additional and deputy
registrars of trade unions as it thinks fit for the purpose of
exercising and discharging under the superintendence and
direction of the registrar.
Such powers and functions of the registrar under this Act as it
may, by order, specify and define the local limits within which
any such additional or deputy registrar shall exercise and
discharge the powers and functions so specified.

(b) (i) Mode of Registration:

Any seven or more members of a trade union may, by
subscribing their names to the rules of the trade union and by
otherwise complying with the provision of this Act with
respect to registration, apply for registration of the trade union
under this Act.

(ii) Where an application has been made under subsection (i)

for the registration of a trade union, such application shall not
be deemed to have become invalid merely by reason of the fact
that, at any time after the date of the application, but before
the registration of the trade union, some of the applicants, but
not exceeding half of the total number of persons who made
the application, have ceased to be members of the trade union
or have given notice in writing to the registrar dissociating
themselves from the application.
(c) Application for Registration:
(i) Every application for registration of a trade union shall be
made to the registrar and shall be accompanied by a copy of
the rules of the trade union and a statement of the following
particulars, namely—

1. The names, occupations and addresses of the members

making application.
2. The name of the trade union and the address of its head
office.

3. The titles, names, age, addresses and occupations of the

office bearers of the trade union.

(ii) Where a trade union has been in existence for more than
one year before the making of an application for its
registration, these shall be delivered to the registrar, together
with the application, a general statement of the assets and
liabilities of the trade union prepared in such form and
containing such particulars as may be prescribed.

(d) Provisions to Be Contained In the Rules of a Trade

Union:
A trade union shall not be entitled to registration under this
Act, unless the executive thereof is constituted in accordance
with the provisions of this Act.

(e) Power to Call For Further Particulars and To

Require Alterations of Names:
(i) The registrar may call for further information or the
purpose of satisfying himself that any application complies
with the provisions of Section 5, or that the trade union is
entitled to registration under Section 6, and may refuse to
register the trade union until such information is supplied.

(ii) If the name under which a trade union is proposed to be

registered is identical with that by which any other existing
trade union has been registered or, in the opinion of the
registrar, so nearly resembles such name as to be likely to
deceive the public or the members of either trade union, the
registrar shall require the persons applying for registration to
alter the name of the trade union stated in the application, and
shall refuse to register the union until such alteration has been
made.

(f) Registration:
The registrar, on being satisfied that the trade union has
complied with all the requirements of the Act in regard to
registration shall register the trade union by entering in a
register, to be maintained in such form as may be prescribed,
the particulars relating to the trade union contained in the
statement accompanying the application for registration.

(g) Certificate of Registration:

The registrar, on registering a trade union under section and,
shall issue a certificate of registration in the prescribed form
which shall be conclusive evidence that the trade union has
been duly registered under this Act.

(h) 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 to be verified in such manner as may be prescribed in if
the registrar is satisfied that the certificate has been obtained
by fraud or mistake or that the trade union has ceased to exist.

It has to provide 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 otherwise than on the application of the trade
union.
(i) Registered Office:
All communications and notices 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, and the
changed address shall be recorded in the register referred to in
Section-8 of the Companies Act.

(j) Incorporation of Registered Trade Union:

Every registered trade union shall be a body corporate by the
name under which it is registered and shall have perpetual
succession and a common seal with power to acquire and hold
both movable and immovable property and to contract, and
shall by the said name sue and be sued.

Rights and Liabilities of Registered Trade

Unions:
1. Objects on Which General Funds May Be Spent:
The general funds of a registered trade union shall not be
spent on any other objects than the payment of salaries,
allowances and expenses to the office bearers of the trade
unions; expenses for the administration of the trade union; the
presentation or defiance of any legal proceeding to which the
trade union of any member thereof is a party; the conduct of
trade disputes and compensation of members for loss arising
out of trade disputes; provision of education, social or
religious benefits for members; upkeep of a periodical
published.

2. Constitution of a Separate Fund for Political

Purposes:
A registered trade union may constitute a separate fund, from
contributions separately levied for or made to that fund, from
which payments may be made for the promotion of the civic
and political interests of its members, in furtherance of any of
the objects such as the payment of any expenses incurred,
either directly or indirectly; the holding of any meeting or the
distribution of any literature/documents in support of any
such candidate; the registration of electors of the selection of a
candidate for any legislative body constituted under or for any
local authority; the registration of electors or the selection of a
candidate for any legislative body constituted under/or for any
local authority; holding of political meetings of any kind.

3. Criminal Conspiracy in Trade Disputes:

No office bearer or member of a registered trade union shall
be liable to punishment under sub-section (2) of Section 120 B
of the Indian Penal Code, 1860 in respect of any agreement
made between the members for the purpose of furthering any
such object of the trade union as is specified in section its
unless the agreement is an agreement to commit an offence.

4. Immunity from Civil Suit in Certain Cases:

(i) 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 act induces some other person to break a contract of
employment, or that 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 or of his labour as he
wills.

A registered trade union shall not be liable in any suit or other

legal proceeding in any civil court in respect of any fortuitous
act done in contemplation or furtherance of a trade dispute by
an agent of the trade union if it is proved that such person
acted without the knowledge of, or contrary to express
instructions given by the executive of the trade unions.

5. Enforceability of Agreements:
Notwithstanding anything contained in any other law for the
time being in force, an agreement between the members of a
registered trade union shall not be void or voidable merely by
reason of the fact that any to the subjects of the agreement are
in restraint of the trade.

6. Right to Inspect Books of Trade Unions:

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 the trade union.

7. Right of Minors to Membership of Trade Unions:

Any person who has attained the age of 18 years may be a
member of a registered trade union subject to any rules of the
trade union to the contrary, and may subject as aforesaid,
enjoy all the rights of a member and execute all instruments
and give all acquittances necessary to be executed or given
under the rules.

8. Effects of Change of Name and of Amalgamation:

The change in the name of a registered trade union shall not
affect any rights or obligations of the trade union or render
defective any legal proceeding by or against the trade union.
An amalgamation of 2 or more registered trade unions shall
not prejudice any right of any of such trade unions or any right
of a creditor of any of them.

Shortcomings of Trade Unions:

Trade union movement in our country suffers from
the following weaknesses:
1. Uneven Growth:
Trade unions are concentrated in large scale industry sector
and in big industrial centers. There is very little trade union
activity in small sector, agricultural labour and domestic
sector. Trade unionism has touched only a portion of the
working class in India.

2. Small Size:
Most of the unions have low membership though the number
of unions and union membership are increasing, average
membership is inadequate.

3. Weak Financial Position:

The average yearly income of unions is very low and
inadequate. The subscription rates are low and many
members do not pay the subscription in time. Due to their
financial weakness, most of the unions are not in a position to
undertake welfare programmes for workers.

4. Political Leadership:
Trade unions are under the leadership and control of political
parties and outsiders. Politicians exploit unions and workers
for their personal and political gains. Thus, the political
leadership is very harmful to the trade union movement in
India.

5. Multiplicity of Unions:
There exist several unions in the same establishment or
industry. The existence of rival unions with conflicting
ideology is greatly responsible for unhealthy growth of trade
union movement. In some cases employers encourage split in
unions to undermine their bargaining power.

6. Problem of Recognition:
Employers are under no obligation to give recognition to any
union.

7. Absence of Paid Office-Bearers:

Most of the unions do not have Hill-time paid office-bearers.
Union activists working on honorary basis devote only limited
time and energy to union activities. Union officers lack
adequate knowledge and skill due to lack of proper training,
weak financial position and political leadership are the main
reasons for this state of affairs.

8. Apathy of Members:
Majority of workers do not take keen interest in union
activities. The attendance at the general meetings of unions is
very poor.

9. Opposition from Employers:

Trade unions in India have to face opposition from employers.
Many employers try to intimidate or victimise labour leaders,
start rival union and bribe union officials.
10. Inter-Union Rivalry:
Multiple unions create rivalry. Unions try to play down each
other in order to gain greater influence among workers.
Employers take advantage of infighting. Inter-union rivalry
weakens the power of collective bargaining and reduces the
effectiveness of workers in securing their legitimate rights.

Employer’s Organisations:
Under the trade union Act the term trade unions also includes
employer’s organisations. But strictly speaking, an employer’s
association means formal body of employers only.

According to Mr. Naval Tata, the objectives of an

employer’s association are:
(i) To promote collective bargaining.

(ii) To develop healthy and stable industrial relations.

(iii) To bring employer’s viewpoint to the notice of the Govt,

and

(iv) To represent employers at national and international

forums.

There are at present more than 800 registered associations of

employers in India. These are of three types:

1. Local associations to promote the interests of employers in a

particular industry or city, e.g., Indian Jute Mills Association.

2. Regional associations such as the Southern India’s Mill

Owners’ Association which serve the needs of employers in a
particular region.
3. National or apex associations which co-ordinate the efforts
of local and regional associations. These are federations to
which local and regional associations are affiliated. FICCI, CII,
are examples of these federations. These federations perform
several functions such as advice, education, communication,
representation.

Organisation Structure:
Organisational structure of National Trade Unions
consists of 4 levels as given below:
1. Conventions/sessions

2. General council (President, VP, Secretary-General, etc.)

3. Provincial bodies (at state level chairman, secretariats)

4. Local bodies (affiliated unions)

National convention/conferences are hold at periodic

intervals, say annually or bi-annually. This is the highest
policymaking body. This is presided over by the president of
the union attended by the delegates such as chairmen of state
units, representatives of specialized services, legal experts and
delegates from international bodies and special invitees. Office
bearers are also elected by this conference.

General council consists of president, vice-president, secretary

and other office bearers. It carries out policy decisions taken
by convention. Various standing committees are set up on
rendering study, analysis and recommendations on various
aspects like legislative measure, Research and publications,
international services etc.
State units are headed by chairman of state/regional areas.
State units also liaise with National Headquarters; keep a close
watch of faithful implementation of labour legislation and
practices. It assists/influence state government to pass labour
friendly legislation and executive/administration actions.

It is also responsible for membership of various unions

representing workers in industrial undertakings (units)
and/or representing trade and industrial units affiliated to the
central trade union. These state units get themselves attached
to State/Provincial/HQ/Regional unions/Units.

Headquarters (HQ) unions are responsible for welfare of its

members and membership drive. As bargaining agents they
are involved in collective bargaining with Central
Government/ and or State government and assist passing
legislative measures.

How Trade Union Objectives are Achieved?

The objectives of a trade union are achieved by a
pursuit of traditional methods. These are:
(i) The organisation of a trade union on the basis of the craft
or industry in which its members are employed, such as
general unions and professional employee’s organisations.

(ii) Collective bargaining, which is the essence of industrial

relations, for it is through collective bargaining that the terms
and conditions of employment are determined and under
which work is performed’ satisfactorily.
(iii) Grievance processing and handling procedures, under
which grievances are redressed or dealt with by a correction of
situation or by channelling up of these “up the line”.

(iv) Arbitration, by which unsettled or unresolved disputes can

be settled by an outside agency.

(v) Political pressure exercised through legislators who are

capable of bringing about changes in labour laws; and

(vi) Mutual insurance through common contributions to meet

the financial needs of workers when there are stoppages of
work.

Characteristics of Trade Union:

1. A union normally represents members in many companies
throughout the industry or occupation.

2. A union is fundamentally an employer regulating device. It

sharpens management efficiency and performance while
protecting the interests of the members.

3. A union is a part of the working class movement.

4. A union is a pressure organisation originating in the desire

on the part of a group with relatively little power to influence
the action of a group with relatively more power.

5. A union is a political institution in its internal structure and

procedures.

Trade Union Movement in India:

Trade union movement in our country has a century-long
history. The first quarter of the present century saw the birth
of the trade union movement, but the seeds of the movement
were sown much earlier.

In the twenties, soon after the World War I, working class in

our country realised the effectiveness of labour strike as a
means of obtaining concessions, higher wages and better
working conditions. Many strikes were declared consequently
and most of them were successful. This success led to the
formation of several unions.

The AITUC was set up in 1920 with the objectives of

representing worker’s interests, to co-ordinate the activities of
all labour organisations in the country, and to spread the
message about the need for union movement. Hundreds of
unions came into being in big and small industries. Their
number, as well as membership, increased considerably.

A landmark in the history of labour movement was the

enactment of the Trade Unions Act 1926. The Act gave a legal
status to the registered trade unions and conferred on them
and their members a measure of immunity from civil suits and
criminal presentation. Registration of union gave them
respectability before employers and the general public.

Towards the end of 1920s, there was a split in the union

movement, the split being caused by the leader’s ideological
differences. The AITUC was captured by the communists. The
moderates formed a new organisation, called All India Trade
Union Federation. Ideological differences and splits had their
effect on strikes too. Majority of the strikes failed.
Unlike 1920s, the 1930s were not favourable to the trade
union movement. The presentation of the communists
involved in the Meerut conspiracy case and the failure of the
Bombay textile strike of 1929 brought a lull in trade union
activities.

Economic depression of the period also added to the dull

phase of union movement. Retrenchments and strikes were
common, the latter being mostly ineffective. There were
further splits in the movement, but just before the World War
II some unity was achieved.

The unity was shattered during the World War II because of

ideological differences and mounting cost of living. Industrial
unrest increased and the Govt, banned strikes and lockouts
invoking the Defence of India Rules. Luckily workers realized
the need for an organized movement to secure relief. This
realisation led to an increase in the number of unions.

The aftermath of independence was not good for unions. The

hopes of workers to secure better facilities and wages from the
national government were not realized. There was large scale
unrest and strikes and lock outs multiplied.

The disunity in the trade union ranks was aggravated by the

starting of three central labour organisations, namely the
INTUC in 1947, the Hind Mazdoor Sabha (HMS) in 1948, and
the United Trade Union Congress (UTUC) in 1949.

As years went by, more unions and central organisations came

into being the movement became deeply entrenched as of
today, there are 50,000 registered unions and most of them
are affiliated to one or the other central trade union.

Trade Union Formation:

Trade unions are formed on different criteria.

Some of the criteria are:

(1) Craft basis, (2) Industrial Unions, (3) General grouping
based on place and (4) Federations.

1. Craft Unions:
In this organisation the labour class is grouped based on
particular trade or occupation. This category is mainly
amongst the white collared employees. The measures are
mostly in horizontal system and craft conscious rather than
class conscious.

This will have lot of commonality in thinking and approach to

problems resolution. The bank employees’ union, doctors’
union, lawyers’ association, teachers’ association come under
this category.

2. Industrial Unions:
A particular category of industry will have their own unions.
All crafts and trades coming under that industry are part of the
union. Textile mill unions, steel industry unions, mill mazdoor
sangh, grini kamgar unions are some of the examples of
industrial unions in India.

They form a strong force in collective bargaining. They cover

all welfare of similar industry workers in a city or industrial
town. Industrial unions are more vocal, volatile and indulge in
agitation and strikes. Similarly these industries face more
lockouts and arbitration for disputes redressal.

3. General Union:
This is a conglomerate group of different industry employees
forming a union. This happens normally in industrial towns,
ancillary units, and SSI units in a city or suburb. Examples are
Peenya industrial workers’ union, Thane industry employees’
unions and Jamshedpur labour union.

4. Federations:
These are apex bodies at national level. All trade unions like
craft union, industrial unions and general union become
members of federations to have bigger identity. Central trade
unions as federations help smaller unions and support at
national level to address their cause.

Table 8.1 : Important Central Trade Unions of India

SI. Name Year Approx.
No. members
(lakhs)

1. AITUC-A11 India Trade 1920 30

Union Congress

2. INTUC-Indian National
Trade Union

Congress 1947 55

3. HMS-Hind Mazdur Sabha 1948 45

4. BMS-Bharathiya Mazdur 1955 41

 Sabha

5. HMKP-Hind Muzdur Kisan 1962 16

Parishat

6. CITU-Center oflndian 1970 24

Trade Union

7. UTUC-United Trade Union 1971 8

Congress

In addition to above there are unions like All India Bank

Employees’ Association, National Federation of Indian
Railway- men, All India Port and Dock Workers’ Federations,
National Federation of Post & Telegraph Workers, All India
Mine Workers Federation and Indian Federation of Working
Journalists.

Labour Strikes in India:

There used to be various labour strikes in various places of
India during the period of 1960 to 1980. Nowadays they have
reduced drastically. Strikes used to take place mainly for
disputes or disagreements on (a) Bonus amount, (b) incentive
schemes, (c) suspensions, layout and dismissal and (d)
relocation of factories and or employees. The major causes
however have seen related to monetary factors. There are
examples of more often strikes in textile mills of Bombay and
Ahmedabad than in any other industries.

Learning from the example of textile mill strike failure in

Bombay there are no major strikes anywhere in India since
then. The moral of the story is “organisations can pay more
only if revenue and profits rise.” Both workers and
management must follow practical and workable equations
and avoid opposing just for opposing purpose.

No Unions is ITES Sectors:

It is interesting to observe that Indian work environment
drastically changed in last two decades. It has improved both
within law limits and by violating law limits.

Examples are as under:

1. Factories Act 1948 forbids lady employees working after
sunset. However in IT companies and BPO sector lady
employees work night times without complaining. None has
opposed this so far to avoid unemployment.

2. In earlier decades employees used to claim OT (over time)

payments for working extra hours. This payment was twice or
one and half time the normal rates. These days this trend has
stopped and employees do not claim OT.

Above situation is partly due to the fact that none of the ITES
companies have trade unions. This has happened as the
company has only white collared staff, engineers and
executives. A unique situation had developed where employers
offer higher salary to deserving cases and drastically remove
non-performers they have no fear of union interference or
labour court cases.

Even in General engineering industries the unionism and

strikes have reduced substantially after globalisation. Survival
of the fittest and market competition has opened the eyes and
ears of employees and failure of Bombay textile mills’ labour
strike has been a very big warning to union leaders.
Japanese Practice:
In India mode of strike is to stop working. In Japan the mode
of protest is to wear a black badge and work extra hours each
day. This attracts the attention of management to sit and
discuss the problems of workers. Perhaps this speaks of the
socio- cultural values and enlightened approach of their
leaders.

This is comparable to Mahatma Gandhi’s non-violent protest

against the British rule. The Japanese owners/executives feel
hurt of workers’ problems and try to solve them. The human
factors are cared and loyal employees are treated well. In India
such a culture is yet to be developed. Hence workers feel that
strike is the only weapon left for them.

ANS 13
ndustrial Relations or Labour relations, is an expression used not only for
relationships between employers and Trade Unions, but also for those involving
Government with the aim of defining policies, facing labour problems.
As Industrial Relations definition we can accept the concept of the outfit of:
1) Rules for employment management;
2) Methods defining those rules;
3) Typology of actors (both employers and workers organisations and
representatives, but also State and institutional bodies);
4) Interaction processes between these entities.
Many authors have quoted various definitions of Industrial Relations. Some of
the oft quoted definitions

• “The term Industrial relations explains the relationship between employees

and management which stem directly or indirectly from union-employer
relationship”– V. Agnihotri.
• “Industrial relations are broadly concerned with bargaining between employers
and trade union on wages and other terms of employment. The day-to-day
relations within a plant also constitute one of the important elements and
impinge on the broader aspects of industrial relations” – C.B Kumar
• “Industrial relation is an art of living together for the purpose of production” –
J.Henry
• “The subject of industrial relations deal with certain regulated and
institutionalized relationship in industry” – Allan Flanders.
• “The field of industrial relations include the study of workers and their trade
unions, management, employers’ association and state institutions concerned
with the regulation of employment” – H.A Clegg

Nature of industrial Relations:

Industrial relations are concerned with the organisation and practice of multi-
pronged relationship between the workers and the union in an industrial
enterprise. Such relationships may be either in organised form or unorganised
plants.

Industrial relation do not function in a vacuum but multi-dimensional in nature

and are conditioned with three determinants (i) Institutional factors (ii)
Economic factors (iii) Technological Factors.

(i) Under institutional factors are included items such as state policy, labour laws,
voluntary codes, collective agreements, labourers’ unions and employers’
organisation, social institution like the community, caste, joint family, creed,
system of beliefs, etc, attitudes of work, systems of power status, relative
nearness to the centers of power; motivation and influence and industrial
relations.
(ii) Under economic factors are included economic organisation (socialist,
capitalist, communist, individual ownership, company ownership, government
ownership) power of labour and employers, the nature and composition of the
labour force and the sources of supply and demand in the labour market.
(iii) Under technological factors come the techniques of production,
modernization and rationalisation schemes, capital structures etc.

The development of industrial relations is not due to any one single factor but
rather been largely determined by the conditions existing at the eve of the
industrial revolution in the Western Europe, and the social economic and
political situation available in different locations. The changes which took place,
since earlier days, did not follow a uniform pattern in different countries but they
reflected such economic and social forces which ad long times shaped the
principle and practices of the industrial relations in the western countries. From
the earliest phase of industrialization from which the workers formerly working
with their own tools entered into power driven factories, owned by owners: to
minimization of breakdown due to industrial conflicts of later state and further
to industrial peace and hence to human relations approach to raise productivity
in an democracy based on labour partnerships not only for sharing the profits
but of managerial decisions themselves has been a long journey indeed.

Scope of industrial Relations:

The concept of industrial relation has a very wide meaning and connotation. It
means that the employer-employee relationship confines itself to the
relationship that emerges out of the day-to-day association of the management
and the labour. In its wider sense, industrial relations include the relationship
between employers in the course of running an industry and may project it to
spheres which may transgress to the areas of quality control, Marketing, price
fixation and disposition of profits among others.

An industry is a social world in miniature. Associations of various persons,

workmen, supervisory staff, management and employer in industry create
industrial relationships. This affects the economic, social and political life of the
whole community. Thus, industrial life creates a series of social relationship
which regulate the relations and working of not only workmen and management
but also of community and industry.

Industrial relations are inherent in an industrial life:

a) labour relations: Relations between union-management(Also called Labour-
management relations)
b) Employer-employee relations: relations between Management and employee
c) Group Relations: Relations between various groups of workmen
d) Community or public relations: Relations between industry and society.

Objectives of Industrial Relations:

Industrial Relations are a bonding between the employee and employer. It also
adds many other relations which are chain of previous relations. So the motto of
any industry should be sustaining good relationships between the employer and
employee.

Primary objective should be to bring about good and healthy relationship

between two partners in the industry. As per Kirkaldy “The state of industrial
relations in a country is intimately connected with the form of its political
government and the objectives of an industrial organisation may change from
economic to political ends”

Labour management committees have recognised certain fundamental principles

as objectives of social policy in governing industrial relation:

• Good labour management relations depend on employers and trade unions

being able to deal with their mutual problems freely, independently and
responsibly.
• The trade unions and employers and their organisation are desirous of
resolving their problems through collective bargaining though in resolving such
matters the assistance of appropriate government agencies may be necessary in
public interest, collective bargaining, therefore is the corner stone of the good
relations and hence the legislative framework of industrial relations should aid
the maximum use of their process mutual accommodation.
• The workers and employers organisation should be desirous of associating with
the government agencies in consideration of the general public, social and
economic measures affecting employers and workers relations.