CHAPTER-I
INTRODUCTION
1.1. Introduction:
The Trade-Unions... were born of the necessity of workers to
protect and defend themselves from encroachment, injustice and
wrong... to protect the workers in their inalienable right to higher
and better life; to protect them, not only as a equals before the law,
but also in their rights to product of their labour; to protect their
lives, their limbs, their health, their homes, their firesides, their
liberties as a man, as workers as citizens; to overcome and conquer
prejudice and antagonism; to secure them, the right to life and the
opportunity to maintain that life, the right to full-shares in the
abundance which is the result of their brain and brawn, and the
civilization of which they are the founders and the mainstay.
Samuel-Gompers
President
American Federation of Labour
Human social-life depends on human-work. The nature of work changes
from time to time and place to place. There are different categories of worker‘s
is called industrial worker, which constitute bulk of working class. Whenever,
the term ―working class‖ is used, it generally mean‘s those people who can earn
their livelihood by selling their labour. This is also assumed that there are some
who buy their labour. The working class can enhance their bargaining power by
joining hands with each other.
Their coming together is called Trade-
Unionisms.
The development of Trade-Unionism in moderns times brings out the fact
that, the Trade-Union movement, industrial working class and capitalism.
emerged on the work scene simultaneously. The working class could assert
itself against the mighty-capitalist class, helped by the State, only when it
organized itself. The true, the capitalist class never-welcome the unionization of
worker‘s. Therefore, in the beginning-unionisation of worker‘s had face the
hostility of the capitalists. They tried to crush any sort of organization of the
1
worker‘s. The interest of the capitalist class could be served best by bargaining
with an individual worker, rather than with collective organization of worker‘s,
while worker‘s experience taught them that they could not withstand the power
of the capitalist alone and therefore have to bargain collectively.
The industries which are registered under the Company Act, 1956. I assessed
what extent the industries are observing the law relating to the service condition under
Workers Employment Standing Order Act. 1946 and explained how to resolve the
dispute under the Industrial Dispute Act-1947.
The scientific study of Trade-Unionism can go a long way in helping the TradeUnionist in a country to build their organization on a sound basis. The Trade-Union
Act.-1926, which aim to protect the interest of the working class, Trade-Union in India
are governed by Trade-Union Act.-1926 which is the main legislation that provides
various rules, regulations and concluding mechanisms related to dispute among
employer and employees.
With the rapid industrialization of the country the problem‘s of the
industrial relation have been multiplied. In many industrial advanced countries
the system of the collective bargaining has been adopted to resolve problem‘s of
the wages, working conditions of worksmens, fringe benefits, Worker‘s Social
Security Acts etc. India which is passing through transition has however adopted
and adjudication system as on alternative of the collective bargaining. Further
the law relating Industrial Relation is regulated not only the Industrial Dispute
Act, 1947, Industrial Employment Standing Order Act, 1946. The Trade-Union
Act,1926 and State Labour Legislation, but also Indian constitution, criminal
law and other which aim at preserving law and order of the country.
2
The capitalists-started attacking worker‘s organization from the very
beginning. The State also helped them by providing them support with stateapparatus legislature, executive and judiciary, legislation were passed to curb the
collectivesation of the worker‘s.
At the first initial stage after the selection of the topic and the importance
was given to the concerned, in how the Trade-Unionism developed in the major
industries in the Gulbarga District of Karnataka State, In what extent the TradeUnion movement as a legitimate Instrument for the protection of the working
class, first time extend to invented; how the Trade-Union was an effective
democratic weapon in the armory of the employees, all over the world believed
in the self-realized trusted and well-settled principle “united we stand and
divided we fall” and endeavor to adopt to win over the economic struggle with
view to nullify the effect the dictum “Divide and Rule” all Trade-Union‘s are
based the aim‖ is to protect the interest of the working class.
Definition of Trade-Unionism:
1) What are the Trade-Unions? In Great Britain the legal definition of them, in
the Trade-Union Act‘s includes employers as well as workers, association
and a few unimportant employers bodies are actually registered as a TradeUnion under the law, but it is common parlance a Trade-Union means an
association of workers in one or more occupations – an association carried
on mainly for the purpose of protecting and advancing the members
economic interest in connection with their daily work.1
2) A Trade-Union is essentially bring which is designed to do for its members
by combination, themselves, these persons acting in isolation, could not do
1
GDH Cole: An Introduction of Trade-Unionisim –P1 , IIND edition –George & Allen & Union Ltd. –
1953 – London, p. 1.
3
better terms. It is meant especially to help them to get collectively get it each
of employment or service than could expand get if each individual had to
make a private bargain.
3) Trade-Union is a body which bargain collectively on behalf of the members
either with single employer or business firm or with the federation of the
employer2.
4) Trade-Unionism first require a precise definition of the term ― Trade-Union
because of the wide difference in the use of the term in different countries,
for instance, in India the term Trade-Union according to the law of the
country refer‘s besides employee‘s organization, to employers associations
also.
5) The British Ministry of Labour: has defined Trade-Union as all
organization of employees including those salaried and professional workers
as well as those of manual wage earners which are known to include among
their function that of negotiations with employers with the object of
regulating condition of employment.
G.D.H. Cole: A Trade-Union means association of the workers in one or more
occupation. An association carried on mainly for the purpose of protecting and
advancing members of the economic interest in connection with daily work. He
stressed that the ultimate objective of the Trade-Unions is to control of the
workers. Being a syndicalist, he regards that control of industry is the future
destiny of Trade-Unions3.
2
3
Ibid.
G.D.H. Cole – An Introduction to Trade-Unionism, George Allen and Unwin Ltd., 1955, p. 1.
4
Frank Tannenbaum: According to Frank Tannenbaum the emergency of the
Trade-Unionism is spontaneous and inherent in growth of capitalism, TradeUnionism owe‘s it origin to Industrial Revolution which let to disruption of the
order way of life and creation of a new society. He felt that Trade-Unionism, is
rebuilding over society. Trade-Unionism is not merely an economic
organization, it is also a social and ethical system and its ends are moral and
economic because it strives to re-establish the value‘s which a man has found
his dignity. It gives back to the worker, his society and code of conduct by
which he can live. In this sense Trade-Unionism is counter –revolutionary4.
Sidney and Beatric Webb: He is the most and off quoted ―A Trade-Union, as
we understand the term, is a continuous association of wage earner‘s for the
purpose of maintaining or improving the condition of their working lives‖5.
Clyde E Dankert–He: Formulates what he calls a comprehensive general
definitions ―A Trade-Union is a continuing organization of employees
established for the purpose of protecting or improving through collective action
the economic and social status of its members. 6―
According to G.D.H. Cole –A Trade-Union means an association of
workers in one or more professions carried on mainly for the purpose of
protecting and advancing the members economic interest in connection with
their daily work7.
In J. Cunnison‟s view – ―A Trade-Union is a monopolistic –combination
of wage earners who as individual – producers are complementary to one
another, who stand to employers in relation to dependence for the sale of their
4
Frank Tannebaum, A philosophy of Labour, After a knof, 1951, New York, p. 29.
Sidney and Bedtric Webb – The History of Trade-Unionism – AM Kellcy, New York, 1965, p.1.
6
Clyde E. Dankert – Contemporary Unionism, Prentice Hall Inc, New York, 1948, p.1.
7
G.D.H. Cole – An Introduction to Trade-Unionism, George Allen & Unwin Ltd., London, 1955, p.13.
5
5
labour and even for its production and that the general purpose of the association
in view of the dependence to strengthen their power to bargain with the
employee‘s or bargaining collectively‖ 8.
Oxford Dictionary – A Trade-Union as an association of workmen in
any trade of allied trades for the protection and furtherance of their interest in
regard to wages, hours and condition of labour and for the provision, from their
comment fund of pecuniary assistance to member‘s during strike, sickness,
unemployment, old age etc.
Robert Dictionary of Industrial Relation: A Trade-Union is association
of the worker‘s in particular trade or crafts organize to promote a common
interest and to further that interest through negotiation of wage‘s, hour of work
and other condition‘s of employment.
1.2. Statement of Problem:
The basic goal of study is economic development, eradication of the
poverty and generating employment in India in general and in Karnataka
specifically in Gulbarga District of the Hyderabad Karnataka region. One of the
basic and burning problems faced by Indian labour specifically industrial labour
in general and Gulbarga District of Karnataka State in particular due to
ineffective, insufficient, inefficient management of the industrial establishments
leading towards unwanted and illegal clouser, which consequently, created the
apprehension of insecurity and unemployment amidst plenty of labour laws
become eyeless and toothless for rescuing the working class from such
apprehension.
8
J. Cunnison, Labour Organisation Pitman & Sons, London, 1930, p.13.
6
An attempt to be made by Trade-Union movement to understand and
analyse in its right prospective the protection of interest of the employees (the
working-class or labourers) and to increase the income and revenue of the
government by using the Trade-Union as a legitimate instrument of protection to
the working class by conducting the case study of the Gulbarga District, large
scale industrial establishments. In the light of the foregoing preliminary analysts
of the topic the main problem that has been taken up for research includes viz.,.
1) Whether the industries observing the provisions of labour and Industrial law
in India?
2) Whether the Trade-Union Act, 1926 implemented properly?
3) If the industries are not working effectively and efficiently what will be the
reasons?
4) What are the reasons that have developed by the management for declaring
an industry as sick industry.
5) Why the industries or factories are closed unwantedly and illegally?
6) What are the impact and implications due to closing down the industry?
7) What will be the role of the Trade-Unions for the efficient and effective
working of the industry/factory? If the industries has been closed down the
role of the Trade-Unions for revival of the industry.
7
1.3. Objectives of the Study:
The present study is having the following main objectives:
1) To assess to what extent the industries / factories are following the
provisions of the labour and Industrial law‘s in India.
2) To find out the reasons for the inefficient and ineffective implementation of
the Trade-Union law‘s.
3) To assess the legal, social and economic impact of closing of the industry on
society in general and the individual workman in particular
4) To examine the role of Trade-Unions in strengthening and protecting the
interest of the labourers (working class) vis-à-vis the effective and efficient
running of the industry / factory.
5) To suggest suitable amendments in laws along with the policy suggestions
effective working of public undertakings and entrepreneurs along with the
labour welfare measures.
1.4. Review of the Literature:
The topic chosen for the study is experiencing lack of sources in the form
of research reports /dissertation /thesis as this a new subject not covered by
many researchers earlier. However, the legal instruments governing the
industries and labour Law‘s such as the Industrial Dispute Act, 1947, The
Factories Act, 1948, Worksmen Compensation Act, 1923, Gratutiy Act, 1972,
Employees Provident Fund and Miscellaneous Act, 1952, Payment of Wages
Act, 1936, The Employees State Insurance Act, 1948, Employment Standing
Order Act, 1946, Minimum Wage Act, 1948 and the Trade-Unions Act, 1926
will be the major literature in analyzing the problems.
8
Enormous literature is available on the topic in the form of books,
articles, journals and comments by the eminent personalities, experts and
writers. Literature in the form of decisions and judgements of the courts,
tribunals and other authorities will be reviewed and utilized to support and
tackle the problem in hand.
1.5. Scope of the Study
The study is intended to identify the role of the Trade-Unions in efficient
working of the industry vis-à-vis protection of the interest of the labourers
(working-class).In this direction a combined and legal instruments meant for
labour welfare with a focus on the Trade-Union Act,1926.The scope of the study
in relation to coverage of geographical area is concern confined to Gulbarga
District of the Karnataka State in India. The case study of Gulbarga District
large-scale industries is undertaken in which all the large-scale industries will be
covered in the study with the help of appropriate tools and techniques of data
collection.
1.6. Sources of the Data:
In the present study the sources required will be collected from both
primary as well as secondary sources.
Primary Non-Doctrinal method:
1) Observation
2) Interview
3) Survey
4) Questionnaires
5) Photography
9
Secondary Doctrinal Method:
1) Various text-books, journals, news-papers, periodicals, reports documents
etc.
2) Internet
3) Photography
In order to collect material, interview and observation are adopted,
wherever it is required, observation, techniques also be adopted to know the
actual condition of labour prevailed in industrial establishment in Gulbarga. It
necessary of such observation‘s few photograph‘s are also thus wide random
basis-survey is conducted.
1.7. Hypothesis to be Tested:
The following hypotheses has been tentatively framed and required to be
tested for the present study:
1) The industries observing the provisions of labour and Industrial law in India.
2) There are many reasons for not implemented the Trade-Union Act, 1926.
3) There are many reasons that have been developed by the management for
declaring an industry as sick industry.
4) The industries or factories are closed unwantedly and illegally.
5) There are many impact and implications due to closing down the industry.
6) There is a great role to be played by the Trade-Unions for the efficient and
effective working of the industry /factory and also for revival of the industry.
1.8. Conceptual Framework
The conceptual framework of the study is formulated with the help of
conceptualization of various aspects of the problems as evolved by the legal
10
scientific and technological experts in various types of literatures available
which can be described as follows:
1) Trade: a) Trade - mean‘s not only limited to an occupation which primarily
concerns itself with sale and purchase of goods pursuit of a skill employment
with a view to earn profit, such employment not being in the nature of learned
profession, regarded as engaging in ―trade‖ within the meaning of Art. 276 of
the Constitution of India9.
A skilled occupation which involves the application of manufacturing
process to a commodity submitted to the person carrying on the occupation
must, therefore, be regarded as trade10.
2) Trade-Union: The Trade-Union is a long term labour association, it will be
maintained specific working classes purposes to protection of the working
class11.
The Trade-Union mean‘s equitable distribution of profit and benefits
accruing from industry between industrialist and worker and affording
protection to the worker‘s against harmful. Effect to their health, safety and
morality Trade-Union‘s are always concentrated of their basic social life. The
Trade-Union struggled always to reach worker‘s goals such as Trade-Union is
one of the most powerful instrument to motivate for working class12.
The Trade-Union means under the provision of the Trade-Union Act
1926 V/s 2(h) any combination, whether temporary or permanent, formed
primarily for this purpose of regulating the relation‘s between workmen and
9
Supreme Court onward‘s sphrases – Ashok Law House, New Delhi, 2004, p. 1073.
Dale Yoder, Personal Management and Industrial Relations, Eagle World Clifts, New Jersy, Perentic
House, 1964, p. 4.
11
Harish A. Mill and Royal E. Montegomy, Labour‘s Progress and Same Basic Labour Problem, Vol.
III, Organised Labour McGraw Hill, New York, 1945, p. 15.
12
S.C. Srivastav, Industrial Relation and Labour Law, Vikas Publication, New Delhi, p. 47.
10
11
workmen or between employer and employees for imposing restriction
conditions on the conduct of any trade of business and includes any federation
of two or more Trade-Union.
3) Workman: A workmen is any person employed in an industry to do any
skilled, unskilled, manual, supervisory, technical, clerical or operation work for
hire or reward, whether the term‘s of employment be express or implied. The
term‘s includes any such person who has been dismissed, dischanged or
retrenched as a consequences of a dispute, or whose dismissal, dischange or
retrenched has led to that dispute [section 2(s)]13.
4) Industry: Industry mean‘s any systematic activity carried on by the cooperation between on employer and his workmen, regardless, whether they are
employed directly or through a contractor for production and supply of goods or
services. It is immaterial whether or not any capital has been invested in the
venture 2 (s). The true test is whether activities functional and whether this exits
in it on employee-employees relationship. It does not cease to be an industry
only belongs, besides receiving wages, share the passion for the cause14.
5) Collective bargaining: The collective bargaining is a process of discussion
and negotiation between two parties, one or both of whom is a group of persons
acting in concert. The resulting bargaining is an understanding as to the terms
and condition under which a continuing service is to be performed more
specifically, collective bargaining is a procedure by which employees and a
group of employees agree upon condition of the work15.
13
The Industrial Dispute Act, 1947, Karnataka Law Journal Publication, Bangalore, 2001, p. 4.
Ibid, p. 13.
15
Encyclopaedia of Social Science, Vol. III (1951), p. 628.
14
12
a) Bourgeois: The bourgeois a meant the class of modern capitalist, owners of
the mean‘s of social production and employer‘s of wage labour16.
b) Proletariat: The means the class of modern wage labourers who have no
means of production of their own, are reduced to selling their labour power
in order to live17.
8) Factory: The definition of ―factory‖ as contained in clause (m) of section 2
of the Factory Act. 1948. Factory means any premises including the precincts
their of
a) Whereon ten or more worker are working on-any day of the proceeding
twelfth month, and in any part of which a manufacturing process is being carried
on with the aid of power, or is ordinarily so caviesen.
b) Whereon twenty of more worker‘s are working on any a day of the
proceeding 12 months, or any part of which a manufacturing process is being
carried on without the aid of power or ordinarily cover but doesnot including a
mine subject to the covers.
Operation of Mines Act., 195218:
9) Labour: One of the factor of production human effort that contributes
toward‘s production except that of the entrepreneur. It includes all form of
labour, manual, skills with the except of organization and management. As a
factor of production labour is economically similarly to other factors, land and
capital, in that it is one of entrepreneurs though differing from land and capital
in being human19.
16
K. Marx and F. Engels, Manifestor of Communist Party, People Publishing House, Pvt. Ltd., New
Delhi, p. 40.
17
Ibid.
18
Dr. V.G. Goswami, Labour and Industrial Law, Central Law Agency, Alhabad, p. 250.
19
J.L. Hanson, A dictionary of Economics and Commerce, McDonalds Evans Ltd., London, p. 284.
13
10) Wages: Mean all remuneration capable of being expressed in term of money
which would, if the term‘s of employment expressed or implied, were fulfilled,
be payable to a workmen in respect of the employment or work done in such
employment and including;
a) All such allowances (including dearness allowance) as the workman is
for the time being entitled do.
b) The value of any house-accommodation, of supply of light, water,
medical, attendance or others amenity or any service or of any
concessional supply of food grains or other articles.
c) And traveling cancellation20.
11) Industrial Dispute: The definition of the term industrial dispute is, it is no
exaggeration to say, a key concept of literally, central importance in the law
relating to Industrial Dispute. The term industrial dispute in Sec. 2 (k) was
defined in the Industrial Dispute Act. 1947 and remained amended since. This
definition is modification of the definition of trade dispute in Sec. 2(3) of
repeated Trade Dispute Act 1929, which in term was a reproduction of Sec. 8 of
the Industrial courts Act 1919, the United Kingdom which defined a tradedispute meaning. Any dispute or difference between employer‘s and workmen
or between workmen and workmen connected with employment or nonemployees or terms of the employment, or with condition of labour of any
person21.
12) Employer: The word employer Clause (g) not specifically defined, but the
clause merely indicate who is to be considered an employer for the purpose of
the an industry, carried on by or tender the authority of a department of
20
21
The Industrial dispute Act, 1947, Karnataka Law Journal Ltd., Publication, Bangalore, p. 5.
O.P. Malhotra‘s, The Law of Industrial Disputes, Lexix Nexis, Butter worths, p. 19.
14
government and by of on behalf of the local authority. The definition of the
―employer‖ has been exclusive and it is probably for the benefit of the
employees22.
13) Legitimate: For which there is affair and acceptable reason valid justiciable
confirmed23.
14) Fring-benefit: The benefit and services must be provided to employees on
the basis of a genuine interest in the protection and promotion of their well being
like, free-launch, snakes, award‘s, social-acknowledgement, vacation trips,
training.
15) Social Security: The social security of an income to take place of earning
when they are interrupted by un-employment sickness, accident, retirement
benefit, a loss of support by death an another person and to meet exceptional
expenditure, such as those concerned with birth and death. Marriage like ESI,
EPF, Gratuity, pension‘s section24.
16) Labour Welfare: As a term which is understood to include such service,
facilities and amenities as may be established in or in the vicinity of
undertaking‘s to enable the person‘s employed in them to perform their work is
healthy, congenial surroundings and to provide them with amenities25.
17) Class conflict: It means conflict between different classes, in the present
context particularly between bourgies and proletariat for protection of their
interest.
22
Ibid, p. 120.
A.S. Hornby, Oxford Advanced Learner Dictionary, Oxford University Press, p. 880.
24
William B. Werther and Keith Davis, Human Resources and personal management, McGraw Hill,
1993, p. 486.
25
Report of ILO, Asian Reginal Conforme, 1950, p. 3.
23
15
18) Anarchist: It‘s means that believed in the doctrines that every form of
government is evil and tyranny. Therefore state should be abolished and instead
free association of individuals without arms be established.
19) Works Committee: The government may cause appointment of a Works
Committee in any industrial establishment in which 100 or more workmen are
employed or had been employed in any day in the preceding 12 months (Section
3).
Such Works Committee consists of representatives of employers and
workmen employed in the establishment. Workmen‘s representatives should not
be less than the number of employer‘s representatives.
The Workmen‘s
representatives are to be chosen in the prescribed manner from among the
workmen engaged in the industry and in consultation with the registered TradeUnion, if any.
The role of the Works Committee is merely to smooth away frictions that
may arise between workmen and employer and promote harmony.
The
Committee cannot decide on any alteration of employment terms or
rationalization.26
20) Conciliation Officers: The appropriate government may appoint
Conciliation Officers in any specified industries in a specified area or for
individual establishment, either permanently or temporarily (Section 4).
The duty of a Conciliation Officer is to mediate and promote settlement
of industrial disputes, where they exist or are apprehended. He will investigate
by going into all matters by calling for any document relevant to the dispute.
For this purpose he has the same powers as are vested in a Civil Court under the
26
The Industrial Disputes Act, 1947, Karnataka Law Journal, Bangalore, 2003, p. 7.
16
Code of Civil Procedure. The Conciliation Officer is a public servant as defined
in the Indian Penal Code and is entitled to obedience and co-operation from the
employers and workmen alike.
Settlements through conciliation proceedings are binding on all parties to
the dispute.
Strikes and lockouts are prohibited during the conciliation
proceedings27.
21) Boards of Conciliation: The appropriate government may, as occasion
arises, constitute a Board of Conciliation for promoting settlement of an
industrial dispute amicably. The Chairman of the Board shall be an independent
person and the remaining members, two or four in number, are to equally
represent the parties to the dispute. Such representatives are appointed on the
recommendation of the parties concerned (Section-5)28.
22) Courts of Enquiry: The Act provides for appointment of a Court of
Enquiry by the appropriate government, as occasion arises for investigating any
matter appearing to be relevant to or connected with an industrial dispute.
A Court of Enquiry may comprise one or more independent person or
persons (Section 6)29.
23) Labour Courts: The appropriate government may constitute one or more
Labour Courts for the adjudication of industrial disputes relating to any matter
specified in the Second Schedule of the Act [Section 7].
The Second Schedule narrates the following issues:
 The propriety or legality of an order passed by an employer under the
Standing Orders;
27
Ibid, p. 8.
Ibid, p. 8.
29
Ibid, p. 8.
28
17
 The application and interpretation of Standing Orders;
 Discharge or dismissal of workmen including reinstatement of, or grant or
relief to, workmen wrongfully dismissed;
 Withdrawal of any customary concession or privilege;
 Illegality or otherwise of a strike or lockout; and
 All matters other than those specified in the Third Schedule.
Even if the dispute relates to any matter specified in the Third Schedule
and which ordinarily should be referred to an Industrial Tribunal, it may still be
referred to a Labour Court, if the dispute is not likely to affect more than 100
workmen.
The Third Schedule narrates the following issues:
*
Wage, including the period and mode of payment;
*
Compensatory and other allowances;
*
Hours of work and rest intervals;
*
Leave with wages and holidays;
*
Bonus, profit sharing, provident fund and gratuity;
*
Shift working, otherwise than in accordance with Standing Orders;
*
Classification by grades;
*
Rules of discipline;
*
Rationalisation;
*
Retrenchment of workmen and closure of an establishment; and
*
Any other prescribed matter.
There can be a voluntary reference to arbitration to any person including
Presiding Officer of a Labour Court. In such a circumstance, the Presiding
18
Officer of the Labour Court Acts as an Arbitrator pursuant to a written
agreement of the parties to the dispute30.
24) Industrial Tribunal: The appropriate government may constitute one or
more Industrial Tribunals for the adjudication of industrial disputes relating to
any matter, whether specified in the Second Schedule or the Third Schedule of
the Act [Section 7-A].
Further, when the parties to the dispute jointly or separately make an
application for reference to a Tribunal, the appropriate government is bound to
make the reference accordingly, if it is satisfied that the applicants represent the
majority of each party31.
25) National Tribunal: The Central Government may constitute one or more
National Industrial Tribunals for the adjudication of industrial disputes which, in
the opinion of the Central Government:
*
involve questions of national importance or
*
they are of such a nature that industrial establishments situated in more
than one State are likely to be interested in or affected by such disputes.
A National Tribunal shall consist of one person only to be appointed by
the Central Government [Section 7-B].
A reference may be made to a National Tribunal irrespective of whether
the matter, relates to the Second or Third Schedule. When the parties to an
industrial dispute apply, in the prescribed manner, whether jointly or separately,
for a reference to a National Tribunal, the appropriate Government, if satisfied
that the persons applying represent the majority of each party, is bound to make
the reference accordingly.
30
31
Ibid, p. 8, 9.
Ibid, p. 9.
19
When a reference has been made to a National Tribunal, Labour Court or
Tribunal shall have jurisdiction upon any matter, which is under adjudication
before it. Similarly, proceedings pending before a Labour Court or Tribunal
shall be deemed to have been quashed once a reference is made to a National
Tribunal.
A matter once referred to a National Tribunal cannot thereafter be
referred to a Labour Court or a Tribunal32.
26) What constitutes a „Strike‟? A strike means stoppage of work by a body
of employees acting in combination or a concerted refusal of any number of
employees to continue to work as assigned to them or to accept employment
(Section 2(q)].
Absentee from work on account of a strike cannot be equated with
abandonment of employment. The contract of employment subsists despite the
strike so long as the strike is legal; the master-servant relationship will continue
although in a State of belligerent suspension33.
27) What is a „Lockout‟? A Lockout means the temporary closing of a place of
employment or the suspension of work, or the refusal by an employer to
continue to employ any number of persons employed by him [Section 2(e)]34.
28) What is „continuous service‟? A workman shall be said to be in continuous
service for a period if he is, for that period, in uninterrupted service, including
service which may be interrupted on account of sickness or authorized leave or
an accident or a strike which is not illegal, or a lock out or a cessation of work
which is not due to any fault on the part of the workman.
32
Ibid, p. 10, 11.
O.P. Malhotra, The Law of Industrial Dispute Lexis Naxis Butter Worth, p. 4.
34
O.P. Malhotra, The Law of Industrial Dispute Lexis Naxis Butter Worth, p. 4.
33
20
Where a workman is not in continuous service for a period of one year or
six months, he shall be deemed to be in continuous service under an employer35.
29) What is a „lay-off‟? A lay-off means the inability, failure, refusal of an
employer to give employment to any of his employees owing to:
 shortage of coal, power or raw material; or
 accumulation of stocks; or
 breakdown of machinery; or
 natural calamity or any other connected reason.
Every workman who presents himself for work at the establishment at the
appointed time on any day and is not given employment by the employer within
two hours of his so presenting himself, is deemed to have been laid-off for the
day. If, however, the workman, instead of being given employment at the
commencement of any shift for any day, is asked to present himself for the
purpose during the second half of the shift for the day, and given employment,
he is deemed to have been laid off only for one half of the day. If he is not given
any such further employment even after so presenting himself, he shall not be
deemed to have been laid off for the second half of the shift for the day and shall
be entitled to full basic wages and dearness allowance for that part of the day.
Under a Maharashtra State Amendment to the Act, workers may be laidoff also because of discontinuance or reduction of power supply to the
establishment for any contravention of the Bombay Electricity Act36.
30) Duty to maintain muster-rolls of workmen: Every employer shall
maintain for the purposes of this chapter a muster-roll and provide for the
35
36
The Industrial Disputes Act, 1947, Karnataka Law Journal Bangalore, 2001, p. 19.
O.P. Malhotra, The Law of Industrial Dispute, Lexix, Nexix, better Worth, p. 387.
21
making of entries therein by the workmen presenting themselves for work
appropriately [Section 25-D]37.
31) What is Retrenchment? Retrenchment means termination by the employer
of the service of a workman for any reason whatsoever, otherwise than as a
punishment by way of disciplinary action; the term does not, however include:
 retirement of the workman either voluntarily or on attainment of age of
superannuation;
 termination of service due to non-renewal of the contract of employment on
expiry;
 termination of a contract under a stipulation to that effect already contained
in it; or
 termination of service on the ground of continued ill-health [Section 25(bb)].
Termination of service in circumstances not falling in any of the above
exceptions will amount to retrenchment. Thus, for instance, discharge of a
workman on ground of his failure to pass confirmation test would amount to
retrenchment. Termination of service on ground of reduction in volume of
business amount to retrenchment. Termination simpliest of services of a
temporary workman, in the absence of a contract to the contrary, will amount to
retrenchment38.
32) Procedure for closing down an undertaking: An employer intending
closure of his establishment shall apply to the Government with prior permission
at least ninety days before the date on which the intended closure is to become
effective. A copy of such application shall also be served simultaneously on the
37
38
O.P. Malhotra, The Law of Industrial Dispute, Lexix, Nexix, better Worth, p. 1920.
V.G. Goswami, Labour and Industrial Law, Central Law Agency, Alhabad, 2002, p. 600.
22
representative of the workman. This provision shall not however apply to an
undertaking set up for any construction work.
If the Government does not communicate its order granting or refusing;
permission within sixty days of making the application, the permission applied
for shall be deemed to have been granted on the expiry of sixty- days.
The order of the government is reviewable by an Industrial Tribunal
which shall pass an award within thirty days.
Every workman, regardless of the length of his service, is entitled to
receive compensation equivalent to fifteen days‘ average pay for every
completed year of continuous service or any part thereof in excess of six months
[Section 25-O]39.
33) Unfair Labour Practices: The Fifth Schedule of the Act enumerates
commissions, omissions of employers and their Trade-Unions and workmen and
their Trade-Unions, which are considered unfair labour practices. Any person
who commits any unfair labour practice shall be punishable with imprisonment
for a term which may extend to six months or with fine which may extend to one
thousand rupees or with both40.
34) “Average pay” means the average of the wages payable to a workman–
i)
in the case of monthly paid workman, in the three complete calendar
months,
ii)
in the case of weekly paid workman, in the four complete weeks,
iii)
in the case of daily paid workman, in the twelve full working days.
39
O.P. Malhotra, The Law of Industrial Disputes 6 th Edition, Lexix Naxis, Butter Worth, pp. 2069,
2070.
40
O.P. Malhotra, The Law of Industrial Disputes 6 th Edition, Lexix Naxis, Butter Worth, pp. 2091.
23
Preceding the date on which the average pay becomes payable if the
workman had worked for three complete calendar months or four complete
weeks or twelve full working days, as the cause may be, and where such
calculation cannot be made, the average pay shall be calculated as the average of
the wages payable to a workman during the period he actually worked41;
35) “Award” means an interim or a final determination of any industrial dispute
or any question relating there to by any Labour Court, Industrial Tribunal or
National Industrial Tribunal and includes an arbitration award made under
Section 10-A;]42.
36) “Settlement” means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the employer and
workmen arrived at otherwise than in the course of conciliation proceeding
where such agreement has been signed by the parties thereto in such manner as
may be prescribed and a copy thereof has been sent to [an officer authorized in
this behalf by] the appropriate Government and the conciliation officer]43.
37) Dismissal etc., of an individual workman to be deemed to be an
industrial dispute – Where any employer discharges, dismisses, retrenches or
otherwise terminates the services of an 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 not withstanding that no other workman nor any
union of workmen is a party to the dispute]44.
41
The Industrial Disputes Act. 1947, Karnataka Law Journal, 2001, p. 11.
O.P. Malhotra, The Law of Industrial Disputes 6 th Edition, Lexix Naxis, Butter Worth, pp. 100.
43
O.P. Malhotra, The Law of Industrial Disputes Karnataka Law Journal, pp. 17
44
Ibid, p. 19.
42
24
The various terms used in the study will be formulated by
conceptualizing the various aspects of the problem by taking the help of the
concepts already evolved by different experts, writers and legal luminaries in
their literatures made available and also to be taken from the statutes and
dictionaries concerned to satisfy the present work.
1.9. Methodology
The present study is to be conducted through both the methods doctrinal
and as well as non – doctrinal. Doctrinal method is to be used to analyse and
describe the historical and philosophical bases of the Trade-Unionism by
utilising the literature already available in various forms and sources.
The non –doctrinal or empirical method is to be used to understand and
analyze the practical aspects of the problem by serving the questionnaires to the
respondents who will be identified within the working-class of the industries in
the Gulbarga District by adopting appropriate sampling method. The nondoctrinal aspects also cover interview method. The interviews will be conducted
to the selected Human Resource Development (HRD) managers of the industries
and leaders of the Trade-Unions of the industries in Gulbarga District to
understand and analyse practical application and observance of laws relating the
working-class.
1.10. Importance of the Study:
In the present context the Trade-Union is a major concern in the whole
working class in Gulbarga number of Industries Closing Illegally, Industrial
Dispute arised their environment has been targeted now and the, yet labour laws
awareness is lacking to the full extent.
Thus, the study aimsat the better
organization of the Trade-Union Law‘s and Labour Law‘s adopted for the
25
protection of the Working Classes. The study also highlights the merit of TradeUnion movement in the establishment in Gulbarga district.
 The study is useful source to Trade-Union leader‘s working classes, lawyers,
researcher‘s policy implementer‘s and also mass labour class as it identifies
and evaluates the labour law and effective control mechanism relating to
Trade-Union Act, 1926.
 The study is significant to the law maker‘s as it provide the possible solution
the lacuna in the present labour legislation and Trade-Union in the present
existing law in protection of the working class.
 The study is usefull to the perspective reader‘s as it provide awareness and
knowledge on Trade-Union law and Labour Admnistration and its
implication and its regulation.
 To reach basic goal of the study is economic development, eradication of
poverty and generating employment in India in General in Karnataka
specifically in Gulbarga district of the Hyderabad Karnataka Region.
1.11. Research Design
In the present study it has been endeavoured to analyse how the TradeUnion has become a legitimate instrument for protection of the working class –
a case study of Gulbarga Dist. Thus the above study can be channalised under
the following chapterisation:
The Part-I is introduction of the Trade-Union and Part – II is devoted to
the statement of historical development of the Trade-Unionism in details –
Trade-Unionism in a national and international level has been indicated. The
Chapter- III explained in details the analytical perspective of the Trade-Union
Act,1926. The Chapter-IV To analyse the concept of the Trade-Unionism and its
26
role in protection of interest of the working class. The Chapter-V indicate the
Trade-Unionism and Industrial Establishment of Gulbarga Dist. Chapter-VI to
analyse the conclusion of the research work and suggestions have been made.
1.12. Chapterisation
CHAPTER-I
INTRODUCTION
Trade-Unionism is the result of the growth of modern industries
involving the employment of large number of workers in conditions which make
them helpless in bargaining individually for their terms of contract. In the
advanced as well as developing countries industrialization has always been
associated with some stage of development of organized labour activities.
Trade-Unions are major components of modern industrial relation
system. The Trade-Union exist in all part of the world but , their characteristics
and functions vary from country to country – Trade-Union is a continuous
association of wage earners for the purpose of maintaining their working
condition of their working life45. A Trade-Union of workers is an organization –
formed by workers to protect their interest, improve their working conditions
etc.
Trade-Unions came into being for a variety of purposes –Individual
workers found it more advantageous to bond together and seek to establish their
terms and conditions of employment. They realized that if they bargained as
individual‘s the employer would have a better leverage for an individual would
not matter as much as group in terms of the running of the industries46.
45
Sydney & Beatric Web –History of Trade-Union PP -77 – London 1950, Report of Committee on
Artisans and Machinery, 1824.
46
Das N.S. –The Indian Labour Movements- pp -48
27
A Trade-Union is therefore an essential basic of labour movement. A
labour movement without Trade-Union cannot exist because they are the
principal school in which the workers learn the lesson of self reliance and
solidity. The significance of the movement cannot of course be measured simply
in terms of total number of supporter or numbers as a strong minority that can be
exact considerable influence upon non members and sympthasier may be more
powerful that less vigourous majorities. Despite this total membership perhaps is
the best available measure of the significance of labour organization. In any area
or branch of industry however he said that primarily due to the desire on the part
of workers to better their economic condition and the realization that individual
bargaining of utterly useless for this purpose.
The primary role of the Trade-Union is to protect the workers and
channelise their efforts into more rational direction so that the viability is also
enhance. The effect of having multiple Trade-Unions both in Macro and Micro
level serves only to weaken the workers power base while at the same time
negatively effecting the viability of the plant.
A strong and healthy Trade-Union can make a substantial contribution to
the economic development of the country. The Trade-Union may contribute a
good deal to the success of economic development by formulating a responsible
wage policy. The Trade-Union, however can adopt money other measures
conductive to the economic progress of the developing economy.
Until the enactment of the Trade-Union, Act., 1926, workers hardly
realized the importance of being on orgnised force. As there was no organization
to represent the worker‘s and bargaining with their employers they were at the
mercy of the Employer‘s. in the absent of collective action, worker‘s had to be
28
content with the wages which each one of them could separately negotiate with
his employer, protest by Individual workers therefore had to join together and
form a Trade-Union to improve their bargaining power against the Employer.
The Trade-Unions were looked upon form the beginning as illegal
bodies. In Hornby V. Clokes47 it was held that the purpose of a Trade-Union, it
no longer a criminal –conspiracy were on restraint of trade, thereby rendering it
for civil purposes on illegal association.
The establishment of the International Labour Organization in the year
1919 (ILO) had influenced on the growth of Union‘s in our country in the year
1926 the Indian Trade-Union Act was passed. Subsequently, by amendment Act
38 of 1964, the word ―Indian‖ was deleted. The right to form the Trade-Union
for law full purposes is a fundamental right protected by the Art 19 (1) (c) of the
Indian Constitution O.P. Sharmik Meheta V/s State of U.P.48
The Trade-Union Act, 1926 was enacted with an object to provide for the
registration of the Trade-Union‘s and certain respect‘s to define the law relating
to registration of Trade-Unions. The Act is intended to promote cordial relations
between Employers and worker‘s and to provide a machinery for the peacefull
settlement of dispute between them by mean‘s of adjudication or arbitration.
In ordinary parlance Trade-Union means an association of workers. The
Trade-Union includes employer and employees. The intention to cover the
employer‘s organization also under the Trade-Union Act., 1926 was placed both
the workers Union‘s and employers association on as per the matter of right‘s
and responsibilities. The principle of giving equal representation to capital and
labour on all consultative bodies like the Indian Labour Conference, Standing
47
48
Hornby V/s Clotes (1867-LR-IB-153).
U.P. Sharmik Mehta Sangh, V. State of U.P. AIR-1960, All-45, p. 164.
29
Labour Committee and Industrial Committee, recongise this basic tenet in
employers and employees relationship. It should be noted that while worker‘s
get together for joint action through the Trade-Union, on employer is in many
cases an organization in himself and meets the union equal term. At the same
time, employer is find it covenant to organize them selves in furtherance of
common objective of evolving attitude labour approach to national politics and
also for standardisation of wages and other terms conditions of the labour and
employment in an industry within a local area49.
In a developing economy expanding supply of knowledge and skill of all
types of technical, administrative and judicial are vital importance. To keep with
the rapid development, it is necessary to train up workers to do better job and
learn new techniques so far as the spread of fundamental education and the fight
against illiteracy in developing economy like India, properly organized and
conducted workers education by Trade-Union can attract more workers and
receive cooperation and response from the employees.
In the present study it has been endeavour analyse how the Trade-Union
became a legitimate instrument for the working class with attempt to case study
of large scale industry in Gulbarga Dist. Karnataka State.
CHAPTER-II
HISTORICAL DEVELOPMENT OF TRADE-UNIONISM
Introduction:
The origin of the working class can be traced back to feudal society of the
14th & 15th century – when the shoots of the capitalists mode of production
appeared on the European continent before the 16th century. Hired labourers
49
Prof: K.R. Bulchandrani Industrial law-Himalaya Publications Bombay 1981 PTO. 2.1
30
made up only small part of the population. Hired labourers did not became
predominant until primary accumulation of capital took hold at the end of the
15th and beginning of the 16th century, first in England and later in the countries.
The primary accumulation of capital was made possible by the peasants forced
dispossession of land and the formation of free labour force for the employment
in the developing capitalist manufactories. A manufactory proletariat was
formed from among the delanded peasantry and artisans. However the
manufactory workers by and large were not yet proletarians in the exact sense of
the word, since they still owned certain instruments of production and were in a
more are less patriarchal relationship with their employer. At this stage social
development ―the labourers still form an incoherent mass scattered over the
whole country, and broken up by their mutual competition‖50.
The British Trade-Union Act, 1876 defined a Trade-Union as any
combination whether temporary or permanent formed primarily for the purpose
of regulating the relations between workmen and employers or employer and
employees for imposing some restrictive conditions on conduct of any trade
business and it includes any federation of two or more Trade-Unions.
The industrial revolution in Great Britain and latter in other countries
brought about a sudden and drastic change in the economic sphere. These
changes were so sudden and quick that it was very difficult to bring about a
complete social, economic and political adjustment.
In every country the role of the Trade-Union has to change depending on
the stage of the economic and social development. It also depends on the
struggle of the union, both organization and financial and also to a great extent
50
Karl Marx and Fredric Angel, Manifesto of the Communist Party, in Karl Marx and Fredic Angels
collected works Vol.6,Progress publisher, Moscow, 1976, p. 492.
31
on the institutional set up of the society in which they operate. For instance in
France and Netherlands, unions are required to statutorily required to be
consulted on any draft legislation dealing with Economic and Social Issues. In
Sweden union participated at the level of planning commission and responsible
for the implementation of the labour and social security legislation .The range of
the responsibility of the union covers the experience of the co determination in
German and workers control over the industrial establishment. In Yusgolosov
and Denmark union participated at all levels of economic council. In USA and
Australia the contracts of union with Government authorities are less formal.
The Trade-Union movement emerged in India, basically as a reaction to
the State interventionist or State pluralism model. The economic reforms
package (emphasis on privatization, liberalization and austerity measures)
introduced in India in mid-1991 can be viewed as providing some kind of
conducive environment for the Trade-Unions in the public sector to engage in
greater industrial disputes but what is being observed is that there is increasing
dissension or fragmentation within the Trade-Union movement itself. There has
also been a decline in Trade-Union activity over the years.
Development of modern industry, especially in the Western countries,
can be traced back to the 18th century. Industrial development in India on
Western lines, however commenced from the middle of the 19st century. The
first organised Trade-Union in India named as the Madras Labour Union was
formed in the year 1918.Its progress was mostly the spirit & sacrifice of its
president Sri. B.P. Wadia. Since then a large number of unions sprang up in
almost all the industrial centres of the country51 - Similarly, entrepreneurs also
51
Mathur & Mathur, – The Trade-Union Movement In India, Chaitanya Publishing House, Allahabad,
(1962), pp. 12-17.
32
formed their organisations to protect their interests. In 1926> the Trade-Unions
Act was passed by the Indian Government, it is an important landmark in the
history of Trade-Union movement in the country. The Act gave legal status to
the Registered Trade-Unions. The Registrars of Trade-Unions in different States
were empowered to register the Trade-Unions in their respective States. These
registered Trade-Unions ( (Workers & Employers) are required to submit annual
statutory returns to the Registrar regarding their membership, General Funds,
Sources of Income and Items of Expenditure and details of their assets and
liabilities, which in turn submit consolidated return of their state in the
prescribed performance to Labour Bureau. The Labour Bureau on receiving the
annual returns from different States / Union territories consolidates the all India
statistics and Disseminates them through its publication entitled the TradeUnions In India and its other regular publications.
The Trade-Unions Act, 1926 provides for the registration of the TradeUnions with the registrar of Trade-Unions of their territory, any seven or more
members of the Trade-Union by submitting their names to the registrar of TradeUnions and otherwise applying with the provisions of the Act with respect to the
registration may apply for the registration of the Trade-Union under the TradeUnion Act. The Trade-Union Act gives protection to registered Trade-Unions in
certain cases against civil and criminal action52.
The statistics presented in this review are based on the returns /reports
received from the States/Union territories in the format provided for in the Act
and the figures cover only the registered Trade-Unions. However the response
rate from the States/Union territories is not very encouraging. During 2002, only
52
V.V. Giri, Labour Problem‘s in Indian Industry, Asian Publishing House, (1959), pp. 11-13.
33
21.0 percent of the registered from 17 States /Union territories submitted the
prescribed returns to the concerned authority, who in turn have furnished the
consolidated returns to the Bureau. The Trade-Unionism in India developed
quite slowly as compared to the western nations. Indian Trade-Union movement
can be divided into three phases.
The Trade-Unionism in India developed quite slowly as compared to the
western nations. Indian Trade-Union movement can be divided into three
phases.
The First Phase (1850 to1900):
During this phase the inception of Trade-Unions took place. During this
period, the working and living conditions of the labour were poor and their
working hours were long. Capitalists were only interested in their productivity
and profitability. In addition, the wages were also low and general economic
conditions were poor in industries. In order to regulate the working hours and
other service conditions of the Indian textile laborers, the Indian Factories Act
was enacted in 1881. As a result, employment of child labor was prohibited.
The growth of Trade-Union movement was slow in this phase and later
on Indian Factory Act of 1881, it was amended in 1891. Many strikes took place
in the two decades following 1880 in all industrial cities. These strikes taught
workers to understand the power of united action even though there was no
union in real terms. Small associations like Bombay Mill-Hands Association
came up by this time. First labour association was orgainsed by Mr. Lokande as
a president53.
53
See report on working factory act in Bombay 1892, pp. 15.
34
The Second Phase (1900 to 1946)
This phase was characterized by the development of organized TradeUnions and political movements of the working class. Between 1918 and 1923,
many unions came into existence in the country. At Ahmadabad, under the
guidance of Mahatma Gandhi, occupational unions like spinners‘ unions and
weavers‘ unions were formed. A strike was launched by these unions under the
leadership of Mahatma Gandhi who turned it into a satyagrah. These unions
federated into industrial union known as Textile Labor Association in year 1920.
The First National Trade-Union organization The All India Trade-Union
Congress (AITUC)) was established in the year 1920.
Many of the leaders of this organization were leaders of the national
Movement. In 1926, Trade-Union law came up with the efforts of Mr. N.M.
Joshi that became operative from 1927. During 1928, All India Trade-Union
Federation (AITUC)54 was formed
Third Phase:
The third phase began with the emergence of independent India (in
1947). The partition of country affected the Trade-Union movement particularly
Bengal and Punjab. From 1949, four central Trade-Union organizations were
functioning in the country:
1. The All India Trade-Union Congress, (1920) (AITUC)
2. The Indian National Trade-Union Congress (1947) (INTUC
3. The Hindu Mazdoor Sangh, ( 1948 ) (HMS)
4. The United Trade-Union Congress (1949 ) (UTUC)
54
AITUC report of 1st session held at Bombay 1920, pp. 12.
35
The working class movement was also politicized along the lines of
political parties. For instance Indian national Trade-Union Congress (INTUC) is
the Trade-Union arm of the Congress Party. The AITUC is the Trade-Union arm
of the Communist Party of India. Besides workers, white-collar employees,
supervisors and managers are also organized by the Trade-Unions, as for
example in the Banking, Insurance and Petroleum industries
Trade-Unions in India
The Indian workforce consists of 430 million workers, growing 2%
annually. The Indian labor markets consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce.
2. Organized sector, which employs 8 per cent of workforce, and
3. The urban informal sector (which includes the growing software industry and
other services, not included in the formal sector) which constitutes the rest
32 per cent of the workforce.
At present there are twelve Central Trade-Union Organizations in India55:
1. All India Trade-Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade-Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade-Unions (IFFTU)
7. Indian National Trade-Union Congress (INTUC)
8. National Front of Indian Trade-Unions (NFITU)
9. National Labor Organization (NLO)
55
The working of the Trade-Union Act, 1926 during, 1947-48.
36
10. Trade-Unions Co-ordination Centre (TUCC)
11. United Trade-Union Congress (UTUC) and
12. United Trade-Union Congress – Lenin Sarani (UTUC - LS)
Trade-Union in our country are governed by the Trade-Union Act, 1926.
The main objective of the Act, to provide for the registration of the Trade-Union
and to give a registration Trade-Union a legal status, and immunity to their
office bearers and members from civil and criminal liability in respect of the
legitimate Trade-Union activities.
Thus Trade-Unionism has been a movement launched against the
consideration of economic in the hands of few individual society and for the
purpose of promoting the welfare of the working class. It has been rightly
remarked that some Trade-Union activities do undoubtedly benefit directly the
whole of the community – the Trade-Union is the preserve for factory
legislation, for extending educational opportunity , for removing social barriers
for full employment and all the benefit the community the one others and are
preserves which result in a measure real democracy. But even where the TradeUnion is only concerned with narrow function of improving the condition of
workers in relation of jobs, its contribute to effective application of democracy.
The more highly paid worker is satisfied and serve. The democracy became to
him reality and political –democracy in particular positive value56.
Trade-Union consciousness of community – responsibility varies from
country to country depending upon the action of wage employment. The main
element in the development of Trade-Unions of workers in every country have
been more or less the same. The setting up of large scale industrial units created
56
V.L. Allen, Power in Trade-Union, (1954), Longman, New York, p. 13.
37
conditions of wide spread use of machinery ,establishment of new lines of
production changed in a working and living environments, workers and
concentration of industries in large towns. All of which introduced a new class
of workers who were dependant of wages of their livelihood.
CHAPTER-III
ANALYTICAL PERSPECTIVE OF TRADE-UNION ACT. 1926:
Introduction:
The freedom of Association guaranteed under Article 19[1] of the Indian
Constitution belongs to all worksmen, so that every workmen has the freedom
to form a union of his own choice and refuse to become a member of any union
which he does not like.57
The Trade-Union Act, No.(16),I926 was enacted with view to encourage
the formation of permanent and stable Trade-Unions and to protect their
members from certain civil and criminal liabilities. The registration of TradeUnion is however not conclusive as proof of its existence.58
The definition of the Trade-Union as contained in Section 2(h) of the
Trade-Union Act, 1926, indicates that it is any combination or association of
persons based on mutual confidence, understanding and co-operation for safe
guarding common interest.59
It may be any association of workmen or employees .It need not be
permanent combination, it can be formed even for a shorter period. The
definition itself indicates statutory primary purposes of Trade-Union. Trade,
union is formed primarily for following purposes
57
D.B. Basu, Shorter-constitution of India Wadwas, Publication Nagpur, 2000, p. 164.
V.K. Kharbanda – Gazette of India, 1925, Part-IV, p. 1.
59
V.K. Kharbanda – The Commentary on Trade-Union Act, 1926, Law Publishing House Alhahabad,
1926, p. 32.
58
38
1) For regulating the relation between
(a) Workmen and employees
(b) Workmen and Workmen
(c) Employer and Employees
2) Trade-Union imposing restrictive condition on the conduct of any trade
or business and includes any federation of two or more Trade-Unions.
The analytical prospective of Trade-Union clearly shows that the purpose
of the Trade-Union is to maintain balance, harmony and proper adjustment in
the relation of the persons involved in Industrial Process and production or in
any trade the labour is involved. The purpose of Trade-Union is not to secure
harmony between workmen and employers only, but it is intended to secure
peaceful relation between workmen and workmen and between employer and
employers also. The Trade-Union regulates relationship contemplated with
regard to the condition of service of the employees, which postulates the
existence of an employer who is concerned with the business, trade or industry.
We can distinguish three classes of objectives a Trade-Union can have.
1) It may be classified as purely economic objectives, is those which relate to
questions concerning of the wages, hours of working and living conditions.
2) Benefit purpose which includes dispensation of various benefits like
sickness and employment.
3) Group consist of social and political objectives.
The model Constitution and rules of Trade-Union cover these classes of
objectives. The Act simply emphasis the supreme importance of the first type
viz. the purely economic objectives. It does not debar the Trade-Union from
39
having other‘s. The registration of any other Trade-Union void, if any of its
objectives are unlawful.60
Legal Status:
The Central Government enacted the Trade-Union, 1926 with the
objectives of providing for the Registration of the Trade-‘Union‘s and
verification of membership of the Trade-Unions. Registrar of Trade-Union, so
they may acquire a legal status and corporate status. The Act further provide
conditions governing the Registration of the Trade-Union laying down the
obligations of the Trade-Union and fixing its rights and liabilities.
1) Binding with Industrial Dispute Act – 1947.
2) To avoid unfair labour practices in both side – Employer and Employees
also.
3) Gain more social security schemes for the Employees.61
Trade-Union Act., 1926:
The Act defines a Trade-Union as ―any combination whether temporary
or permanent, formed primarily for the purpose of regulating the relations,
between workmen and employer‘s or between workmen and workmen or for
imposing restrictive consistence on the conduct of any trade or business and
includes any federation of two or more trade union‘s.
A trade dispute has been defined as ―any dispute between employer and
workmen which is connected with the employment or non employment, or that
term of employment or condition of labour62.
60
Brooke Bond India V/s The Workmen, AIR, 1981, SC 1660.
Trade Union Act, 1926, Section 2 (d).
62
V.K. Karbandha – The commentary on Trade-Union Act. 1926, Law Publishing House, Alhabad, p.
110.
61
40
Registration of Trade-Union
Any seven members of Trade-Union by subscribing their names to the
rules of the Trade-Union and complying with the provision of the Act, may
apply for the Registration Trade-Union. Trade-Union of workmen will be
registered under the Act unless 10% or 100 of the workmen whichever is less,
engaged or employed in the industry or establishments with which it is
connected on the members of the Trade-Union of workmen is to be registered
unless it has notice in writing to the registrar of dissociating themselves from
application (Sec. 4)63.
Every Trade-Union application for registration is to accompanied by copy
of rules of the Trade-Union and statement of following particulars.
1) The names occupation and addresses of the making members of the application.
2) In the case of Trade-Union of workmen, the names, occupations and address
of the place of work of the members.
3) The name of the Trade-Union and address it‘s head office.
4) The title name‘s ages, address and occupation of the office bearer of the
Trade-Union. If the Trade-Union has been in exited for more them one year
before making of that application, a general statement of the asset and
liabilities of the Trade-Union has also to be submitted along with the
application (sec. 5)64.
Rules of the Trade-Union:
A Trade-Union is not entitled to registration unless the executive is
constituted in accordance with provision of the Act and rules provide for the
following particulars.
63
64
Trade-Union Act, 1926, Sec. 4 (b), 116-117.
Trade-Union Act, 1926, Sec. 5.
41
1) The name of the Trade-Union.
2) The whole objects of the registration.
3) The whole of the purposes for which the general funds of the Trade-Union or
to utilized (which fund the fund are to be spent).
4) The maintenance of a list of the members.
5) The admission of ordinary members who are actually or employed in the
industry with which Trade-Union is connected and admission of honorary or
temporary members of the office bearers in accordance with the provision
related to the formation of the executive of the Trade-Union.
6) The payment of a subscription by members of the Trade-Union which is not
to be less then one rupee annual rural worker‘s Rs. 3 per annum for workers
in the un organized see for and Rs. 12 per annul for working other case.
7) The condition under which any member is entitled to any benefit assured by
the rules.
8) The manner in which the member of the executive and other office bearer of
the Trade-Union will be elected or removed.
9) The duration of the period not being more than 3 years.
10) The safe custody of Trade-Union fund on annual audit, account books, office
bills, and members of the Trade-Union.
11) The manner of Trade-Union dissolved (sec. 6)65.
Employers and Workmen (Dispute) Act 1860:
The first legislative measures dealing with the settlement of Industrial
dispute in India was the employer‘s and workmen (Dispute) Act 1860. The Act
empowered magistrate to dispose of disputes concerning wages of workmen
65
V.G. Goswami, Labour Industry, Law Central Law Publishing Alhabad, p. 462.
42
employed in the railways, canals and other public works and made the breach of
contract a criminal offence. The Act was replied in 1932 though it had ceased to
be used much earlier.66
Such a Indian Trade Dispute Act 1929 Indian Trade Dispute Act
(Amendment) 1932 and Trade Dispute (extending) Act 1934, the Trade Dispute
(Amendment) Act 1938 and Rule 81 (A) of the defence of Indian rules lastly in
the year 1946.Industrial Dispute Act was enacted in 1947 their was a
considerable increase in industrial un-rest, owing to the ―stress of post war
industrial re adjustment67.
The basic legislation is intended to respect of the matter its deals with the
Industrial Dispute Act 1947, with Amendments. Therefore a reflection of public
policy in regard to the settlement of industrial dispute in the country. It is worthy
while to have a bright glimpse of the public policy of embodied in this law. This
policy consists of following basic element‘s.
1) The parties to an industrial disputes are free to settle any matters without any
hindrance, determine terms of the settlement for industrial peace.
2) The State government has set up a mechanism to assist the parties in the
peaceful settlement by providing conciliation.
3) Yet, again if the parties still persist in their decision to resort to industrial
action to bring reserve matter before adjudication authority.
4) The State expect the parties to make reasonable effort to prevent industry
dispute the employer to constitute worker‘s committee in their enterprise.
66
67
Ibid, p. 119-121.
Srinivas, Industrial elation are Labour Law, Vikas Publication, p. 140.
43
Effort of Trade-Union Amendment:
The Indian Trade-Union escaped that long process of prosecution, which
the Trade-Union in great Britain had to undergo, for about hundred years under
the Common Law and Combination Act‘s, it‘s apparent that legal protection to
Trade-Union was made available very early in the history of the Trade-Union
movement. It may not be derogatory to the Indian Trade-Union to say that,
because of the early protection, they have come to miss much of the tightening
of muscles, the toughness and solidarity which the trade in great Britons come to
acquire during their struggle for existence. The main provision of the Act, as
may stand amended have be summerised a little.
 Trade-Union (Amendment) Act 1947.
 Trade-Union‘s Bill 1950.
 Industrial Relation Bill 1978.
 Trade-Union‘s (Amendment) Bill, 1982.
 Trade-Union‘s (Amendment) Act 2001.
Chapter-IV
CONCEPT OF THE TRADE-UNIONSIM AND ITS ROLE IN
PROTECTION OF INTEREST OF THE WORKING CLASS
Introduction:
The Trade-Union‘s are organization of workers which work for the
maintenance and enhancement of their economic-status by insisting on a rise in
wages and improvement in working condition and other benefit68.
Concept of the Trade-Union
68
Punneker Shankran – Labour Welfare, Trade-Unionism and Industries Relation, Himalaya Publishing
House, Pvt. Ltd., (2009), p. 193.
44
The Trade-Union is an association of worker‘s formed for the purpose of
protecting and improving the socio economic status of its member‘s through
collective action.
The common feature of all Trade-Union‘s is that the union is in theory of
a democratic institution. The ultimate power lies in the membership as a whole.
As per 2(h) of the Indian Trade-Union Act 1926, a Trade-Union means
any combination, whether temporary or permanent, formed primarily to regulate
the relations between workmen and employers or workmen and workmen or
employer‘s and employer‘s and for imposing any restriction‘s conditions or the
conduct of any trade or business and include any federation of 2 or more TradeUnions69.
The number of eminent Trade-Unionist like look up a Trade-Union from
different view point‘s. The Trade-Union are organization of the worker‘s which
work for the maintenance and enhancement of their economic status by insisting
on rise in the payment of wages, working condition, other facilities and benefits
like Karl Marx, Sydney and B. Webb, Selige Perlman‘s, Robert. F. Hoxie, Frank
Tannenbaum, Dr. B.R. Ambedkar and Mahatma Gandhi.
Role of Trade-Union:
The Trade-Union‘s are unique organizations whose role is variously
interpreted and understood by different interest groups in the society.
Traditionally Trade-Union‘s role has been to protect jobs and real wage earning,
secure better condition‘s of work and life and fight against exploitation and
arbitriness to ensure fairness and equity in employment Centre. In the wake of a
long history of Trade-Union movement and accumulated benefits and collective
69
V.K. Karbanda, Trade-UnionAct, 1926, Law Publishing House, Alhabad, pp. 31, 32.
45
agreement, a pleathora of legislation‘s and industrial jurisprudence, growing
literacy and awareness among the employees and spread a variety of social
institutions including consumers and public interest groups the protective role of
the Trade-Union remains in form, but varies in substance.70
Here is a considerable debate on the purpose and the role of the TradeUnion‘s for protecting the workers legitimate right. The predominant view,
however, is that the concern of the Trade-Union‘s extended beyond the ―bread
and butter issues. The Trade-Union‘s through industrial action (such as protest
and strike) and political action (influencing government policy) establish
minimum economic and legal condition and restrain abuse of labour wherever
the labour is organized. The Trade-Union‘s are also seen as moral institutions
which will uplift the workers section of employees and down trodden and render
them the place the dignity and justice they deserve.71
With reference to major industry in Gulbarga District Karnataka state like
Jaypee cement company Shahabad Ltd., Alstom India Ltd., Shahabad Gulbarga
District etc.
The Trade-Union movement in the country is now facing the challenge of
introduction of the new technology, which is labour saving, opening of Indian
Economy to the world market and free flow of capital - investment into the
countries, - accelerates the process of modernization and rationalization and its
repercussions on the workers cannot wished away. Excess workers are to be
retrenched, unskilled workers are to be trained and discipline in work has to be
cultivated. The Trade-Union are to be cautious and watchful. The government
70
71
Thomas T (2009), Changing Role of Trade-Union on 22 April 2005 http://www.rediff.come/money
http: ///www.indidnetzone.com/24/Trade-Union-movement India. htm-dt. 27.02.201.
46
and employer see that new technology does not cause distress to the working
class.
Workers used to join Trade-Union to protect themselves against
exploitation by the management and inhuman working conditions niggardly
wage payment and long hours of work is common and workers joined union to
seek protection against the such practices not that these practices exist now, they
are still practiced in un-orgainsed sector. The discussion here applies to the
employees in organized-sector in Gulbarga district. The organized-sector is
incidentally highly unionized and consequently exploitation of all kinds of
witness by and large , exist these days.
Employees perceive Trade-Union as being an instrument in removing
dissatisfaction. The more employees believe that a Trade-Union obtain a
positive work aspect with the instrumental of the Trade-Union for the
employees. The employees then weigh the value of the benefit to be obtained,
through unionization against its cost, such as a lenghtly organization campaign
and the bad feelings among the supervisor, managers and other employers, who
may not relish unionization. The employees weigh the cost and benefit against
the likelihood of union being able to obtain the benefits. The perceived TradeUnion instrumentally when the benefit exceed the cost and union instrumentality
is high, employees will be more willing to unionise72.
The Trade-Unions main objectives but few classes of goal are permanent.
-First is the bread and butter issue, - Industries should not be closed, it can be
run continuously for the livelihood of the working class. Secondly, an economic
issue that includes wage rate of the employees life and health insurance and job
72
Randall S. Schulerct at Effective Personnel management 3 rd edition, West Publication – New york,
1959 - p561
47
security .Bread and butter issue are dominant as objective of Trade-Union. But
not fighting for wage revision, bonus payment under Bonus Act. The TradeUnions demands narrow including empowerment, participation in production,
competitive advantage and like.73
Employee are over the world believed in the self realized trusted and well
settled principle ―United we stand divided we fall‖ and endeavours to adopt to
win over the economic struggle with view to nullify the effect the policy dictum
and divide and rule. All unions are based on aim to protect the interest of the
working class.74
CHAPTER-V
TRADE-UNIONISM AND INDUSTRIAL ESTABLISHMENT OF
GULBARGA DISTRICT
Introduction:
Political parties influenced the growth of Trade-Union in the year
1942.At the end of quit India movement, after the declaration of Independence
of India in the year 1947. Though India got independence, it was under the
Nizam rule, it was fundamentally feudalistic in nature. Under the ideology of
communists parties leader organized the working class movement against the
Nizam‘s rule and landlords.75
In Gulbarga district under the leadership of the communist party of India,
National executive committee member comrade Srinivas Gudi, he took interest
to organize working class in Gulbarga district. Such labour movement grown as
a wing of the national movement. Comrade Srinivas Gudi first organizer under
73
Michael Armstrong, Op. Cit., p. 561.
N.M. Joshi, The Trade Union Movement in India (1927), Law Publishing House, p. 8.
75
K.B. Sharanappa, Ex-MP Trade Union Leader Interview on 01-03-2013.
74
48
the banner of All India Trade-Union Congress (AITUC,) along with senior
leaders comrade Gangadhar, Namoshi, S.K. Kanta, K.B. Shanappa, C.
Gurunath, Rajendra Babu, K. Lallai, Murthy, Shanappa Bairi, Mohan Wooly,
Maqdoom Moinuddin, Dr. Rao Bahahdur Gaur, Jabbar Rizvi, D.J. Mahendra,
they were the prominent leaders to develop Trade-Unionism in Gulbarga
district.76
Gulbarga district previously it was part of Hyderabad State and it is one
of the biggest district in Karnataka State. The economy of the Gulbarga district
is primarily agriculture in nature. There was no large scale industry in the
ancient days or during the medieval period in Gulbarga district. It was only in
1883 that a large scale textile factory came into existence in Gulbarga town by
name M.S.K.-Mill. In 1925 a large scale cement industry was started in
Shahabad on the banner of TaTa Cement Later on in the year 1936, it has been
converted into Associated Cement Limited (ACC).
These two factories have stood variety of vicissitudes indigenous
industries of cottage types seems to flourish in the district. Even during the
days of Rashtrkutas, their prosperity depend upon the permanent cottage
industries providing employment to the many worksmen.
Gulbarga district is endowed with many natural resources useful to
industrial development, extensive deposit of limestone -suitable for the
manufacture of cement about 1500 sq. miles area in Chittapur and Sedam
talukas of Gulbarga districts. Hence many cement industries and engineering
industries established for the commercial purpose in Sedam.
76
Balraj Juppalli, General Secretary, AITUC Shahabad, Interview.
49
Number of large and mini plants closed down. At present there are only 5
large scale industries in Gulbarga Dist. These enjoy a number of socio economic
externalities.77
Working Large Scale Industries in Gulbarga District :
1. Jaypee Cement Project Ltd. – Shahabad – Chittapur Tq. (1925)
2. M/s. Associated Cement Company, Wadi - Chittapur Taluka.(1968)
3. M/s. Rajashree Cement Ltd., Sedam Taluka.(1984)
4. M/s.Vasavadatta Cement Ltd., Sedam(1986)
5. M/s.Alstom India Project Ltd., Shahabad(1967)
1.13. Conclusion:
The last chapter presents the several findings of the study. The present
study has led to general conclusion that Trade-Union‘s became a legitimate –
instrument for the protection of working class.
The case study of the Gulbarga district, Karnataka state, there is the case
most evidently in the nationalized Industries; but it holds a good for private
industry as well. In a democratic society like India, cannot be had without
responsibility, and if, in such a society, private, enterprise is to continue at all,
both employers and workers will have to accept a measure of responsibility
under provision of the Trade-Union Act 1926 and labour laws for the employees
for the efficient conduct of the its affairs.
I conclude that the trade unions became power full enough to be in a
position to assert the claims that whatever affects their members working lives
falls within the a range of their functions as the workers chosen representatives
of the trade union. The Trade-Union can bind themselves by agreement u/s
77
Interview with Padmaji, Trade-Union President, Alstrom India Ltd., Shahabad.
50
12(3) and 18(1) Industrial Dispute Act 1947, involving responsibility, and
matter‘s about, which they must leave the federation of the Union‘s of without
Nationalized Industries to reach their own decision after consultation of the with
the workers representation for revival of the industries like Gulbarga district
Karnataka State.
In this background, the need of the days is to encourage and promote
workers organization under the provision of the Trade-Union Act 1926. With
special emphasis and protection and well being of the working classes in the
industries, since India is a welfare State governed by the Indian constitution,
which holds the pride place in the heart of the its citizen‘s and working classes
and seek to improve their economic and social status on the basis of the
constitutional guarantees spelt out in its provision under Article 37, 39(A) 21, 24
to give most effective justice for working class.
In the same time we adopted adjudication system as an alternative of
collective bargaining. Further the law relating to industrial relations as to
regulated not only Industrial Dispute Act 1947, Industrial Employment
(Standing Orders) Act, 1946. Trade-Union Act, 1926 and state labour legislation
also. However, the study has led the researcher to conclude that even through
the existing labour Law‘s and Industrial Law‘s adjudicatory systems of justice
for labour. The worker‘s suffer‘s same serious bottle necks, but it cannot be
totally dispensed with the system should be strengthen by amending various
Labour Law‘s and Industrial Dispute Acts of supplementary.
51