Trade Union Funds Explained

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
SEMESTER: BALLB/BBALLB 7TH
NAME OF THE SUBJECT: LABOUR LAW 1
UNIT-I
TOPIC: CONCEPT OF TRADE UNION
FACULTY NAME: MR. VIVEK
TRIPATHI (Assistant
Professor)

DEFINITION
• Trade Unions are the groups set-up with the aim of trying to create fairness and job
security in a workplace. • Section 2(h) of the Trade Union Act,1926 has define a
trade union as: “Any combination, whether temporary or permanent, former
primarily for the purpose of regulating the relation between workman and workmen
or between employers, or for imposing restrictive conditions on the conduct of any
trade or business, and includes any federation of two or more trade unions.

TRADE UNIONS IN INDIA
• 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 19th century. The first organised Trade Union in
India named as the Madras Labour Union was formed in the year 1918. Since then
a large number of unions sprang up in almost all the industrial centres of the
country. Similarly, entrepreneurs also formed their organisations to protect their
interests.

Features of trade unions
• It is an organisation formed by employees or workers. II. It is formed on a
continuous basis. It is a permanent body and not a casual or temporary one. III. It is
formed to protect and promote all kinds of interests –economic, political and social-
of its members. The dominant interest with which a union is concerned is, however,
economic. It includes federations of trade unions also. It achieves its objectives
through collective action and group effort

What are trade unions?
• Trade unions are organisations that represent people at work. Their purpose is to
protect and improve people's pay and conditions of employment. They also
campaign for laws and policies which will benefit working people.

• Trade unions exist because an individual worker has very little power to influence
decisions that are made about his or her job. By joining together with other
workers, there is more chance of having a voice and influence.

• All sorts of jobs and industries are covered by trade unions. Some unions represent
people who do a particular job or work in a specific industry - for example, the
National Union of Journalists (NUJ), as its name suggests, represents journalists,
and the Union for Finance Staff (UNIFI) is made up of people who do different jobs
in the financial sector.

• Other unions include a mixture of people in different jobs and sectors. The biggest
unions in Britain - the GMB, UNISON and the Transport and General Workers
Union (TGWU) represent people working in a range of different occupations and
industries in the public and private sectors. Often this is because unions have
merged with other unions so that they can increase their membership and their
influence.

TOPIC: REGISTRATION OF TRADE
UNIONS

Registration
• The Registration of a trade union is not necessary. However, upon registration, a
trade union gets several benefits that are not available to an unregistered Trade
Union. The trade union gains recognition in the eyes of the employer, employees
and general public. Hence, a stronger footing for collective bargaining between the
employers and workers.

Registration
• In the case of Workers of B and C Co vs Labor Commissioner, AIR 1964 Mad it
was held that a Trade Union can raise or sponsor a trade dispute and represent on
behalf of its members in legal proceedings arising out of a trade dispute. Hence it is
only a registered Trade Union which can espouse an industrial dispute.

Registration
• A Registered Trade Union gets immunity from civil and criminal liability for acts
done in pursuance to a trade dispute.

Why register the union?
• Section 13 specifies that upon registration, a trade union gets a legal entity status,
due to which it has perpetual succession and a common seal. It can acquire and
hold movable as well as immovable properties, can contract through agents, can sue
and can be sued. Under section 17, 18, and 19 a registered trade union gets
immunity in certain criminal, civil, and contractual proceedings. However, such
immunity /protection is confined to acts done in contemplation of a trade dispute.

Benefits
• Under section 15 a registered trade union has a right to establish a general fund.
Under section 16, a registered trade union has a right to establish a political fund.
Subscription to this fund is not necessary for a member. Under section 24, trade
unions have the right to amalgamate. Under section 28-F, the executive of a
registered trade union has a right to negotiate with the employer the matters of
employment or non-employment or the terms of employment or the condition of
labor of all or any of the members of the trade union

Benefits
• The employer shall receive and send replies to letters and grant interviews to such
body regarding such matters. It further provides that the executive is entitled to
post notices of the trade union meant for its members at any premises where they
are employed and that the employer shall provide reasonable facilities for that.

Procedure
• Section 3 (Appointment of the Registrar) : The appropriate government appoints a
person to be the registrar or trade unions for each state.
• When the prerequisite documentation is completed, the Registrar issues a
Certificate of Registration.

Mode of registration
• An application must be sent to the Registrar of Trade Unions appointed by an
appropriate government. The application must be made by seven or more persons
who are engaged in the trade or industry in connection to which the Trade Union is
to be formed. All the applicants must subscribe their names to the rules of the
Trade Union and comply with the provisions of this act regarding registration.

Mode of Registration
• There must be at least 10% or 100, whichever is less, members who are engaged or
employed in the establishment or industry to which it is connected. If more that half
of the persons who had applied for the registration cease to be members of the
union or expressly disassociate themselves from the application, the application for
Registration will be deemed to be invalid.

TOPIC: GENERAL AND POLITICAL FUNDS
OF TRADE UNION

General fund
• Section 15 and 16 of the Trade Unions Act, 1926 lay down the provisions relating
to the general fund and political fund respectively.
• General Fund:
• According to Section 15 of the trade unions act 1926, a Registered Union can create
a General Fund.

General fund
• Member of the trade union have to contribute, to the general fund.
• The General Fund can be utilized only for the purposes authorized by Section 15 of
the Trade Unions Act 1926.
• Objects-
• a) the payment of salaries, allowances, and expenses to office-bearers of the trade
unions;

General fund
• b) the payment of expenses for the administration of the trade union, including
audit of the accounts of the general funds of the trade union;
• c) the prosecution or defense of any legal proceeding to which the trade union or
any member thereof is a party, when such prosecution of defense is undertaken for
the purpose of securing or protecting any rights of the trade union as such or any
rights arising out of the relations of any member with his employer or with a person
whom the member employs;

General fund
• d) the conduct of trade disputes on behalf of the trade union or any member thereof;
• (e) the compensation of members for loss arising out of trade disputes;
• (f) allowances to members or their dependants on account of death, old age,
sickness, accidents or unemployment of such members;
• (g) the issue of, or the undertaking of liability under, policies of assurance on the
lives of members, or (under) policies insuring members against sickness, accident
or unemployment;

Political Fund
• h) the provision of education, social or religious benefits for members (including
the payment of the expenses of funeral or religious ceremonies for deceased
members) or for the dependants of members;
• Political Fund
• According to Section 16 of the Trade Unions Act, A Registered Trade Unions can
create a separate fund for the purpose of promoting Civil and political interests of
its members

Political Fund
• The contribution to political funds must be collected separately. Contribution to the
political fund cannot be compelled or be made as a condition precedent for
admission of a person as the member of the trade union. Even those member who
have not contributed anything to the political fund.

Political Fund
• A registered trade union is not entitled to utilize its general fund or political causes
of its members
• Objects –
• a) the payment of any expenses incurred, either directly or indirectly, by a candidate
or prospective candidate for election as a member of any legislative body
constituted under the Constitution or of any local authority, before, during or after
the election in connection with his candidature or election; or

Political Fund
• b) the holding of any meeting or the distribution of any literature or documents in
support of any such candidate; or
• (c) the maintenance of any person who is a member of any legislative body
constituted under the Constitution or for any local authority; or

Political Fund
•
• (d) the registration of electors or the selection of a candidate for any legislative
body constituted under the Constitution or for any local authority ; or
• (e) the holding of political meetings of any kind, or the distribution of political
literature or political documents of any kind.

TOPIC: IMMUNITIES AVAILABLE TO A REGISTERED TRADE
UNION

Immunities available to a registered trade union
• Section 17 confers immunity from liability in the case of criminal conspiracy under
section 120-B of IPC, committed by an office bearer or a member.
• However, this immunity is partial in the sense that it is available only with respect
to the legal agreements created by the members for the furtherance of valid objects
of a trade union as described in section 15 of the act.

Immunities available to a registered trade union
• Registered Trade Unions have certain rights to do in furtherance of their trade
disputes such as calling for strike, persuading members to protest, distributing
pamphlets, making speeches to garner support for the union or educate the
employees about any unjust act of the management etc.

TOPIC: COLLECTIVE BARGAINING

COLLECTIVE BARGAINING
• It is a technique that has been adopted by union and management to reconcile their
conflicting interests.
• It is called collective because the employees, as a group, select representatives to
meet and discuss differences with the employer. • The negotiations for collective
bargaining require joint sessions of the representatives of labour and management

Collective Bargaining- Definitions
• In the words of
• Harrison, “It is a process of communication between two institutions which have
both common and conflicting interests.” • Randle, “Collective bargaining has
different meanings for different individuals or groups. Trade Unions, Managements
and the public have divergent views on this process because each is differently
affected by it.” • Richardson, “Collective bargaining takes place when a number of
work people enter into a negotiation as a bargaining unit with an employer or group
of employers with the object of reaching an agreement on the conditions of the
employment of the work people.”

Collective Bargaining- Characteristics
• Two way process
• Agreement & Mutually settling it
• Continuous process
• Group Action
• Flexible
• Fluidity & ample scope for a compromise for a mutual give & take before the final
agreement is reached
• Dynamic & Static

Collective Bargaining- Characteristics
• Not a Competitive process but a Complementary process
• It is an art, an advanced form of human relations.
• It is a device and a procedure used by wage earners to safeguard their interests.

Objectives & Significance
• It is a technique that has been adopted by unions & management for compromising
their conflicting interests.
• It plays a significant role in improving the labour- management relations and in
ensuring industrial harmony.
• It helps in easing out many minor differences and there are many instances in which
even some major disputes are set to be settled without any work stoppage or outside
intervention. It provides a climate for smooth progress.

Objectives & Significance
•It ensures that managements do not take any unilateral decision.
•It develops a sense of responsibility and of self-respect among the workers and is a
guarantee towards wage protection etc.

Benefits of C.B.
• It provides a method for the regulation of the conditions of employment of those
who are directly concerned about them.
• It provides a solution to the problem of sickness in industry and ensures old age
pension benefits and other fringe benefits.
• It creates new and varied procedures for the solution of the problems as and when
arise-problem which vex industrial relations and its form can be adjusted,
conditions incorporated in the agreement by those who are engaged in a similar
industry.

Benefits of C.B.
• It provides a flexible means for the adjustment of wages and employment conditions
to economic and technological changes in the industry, as a result of which the
chances for conflicts are reduced.
• As a vehicle of industrial peace, collective bargaining has no equal. It is the most
important and significant aspect of labour-management relations and extends the
democratic principle from the political to the industrial field.

Benefits of C.B.
• It builds up a system of industrial jurisprudence by introducing civil rights in industry.
In other words,. It ensures that management is conducted by rules rather than by
arbitrary decisions

CASE LAW
• “In K CP, Limited v. Presiding Officer and Ors.”
• In the above said case Court has defined importance of Collective Bargaining.

TOPIC: Concept and
Nature of
Standing orders

Introduction & Definition
• It was considered that the society had a vital interest in the settlement of terms of
employment of Industrial Labor and also settlement of Labor problems.
• To avoid friction amongst the employers and workmen employed in an industry is
the principal aim of Indian Legislation in India.
• Therefore, the steps were taken by the Central Government to enact Industrial
Employment (Standing Orders) Act, 1946 with a view to afford protection to the
workmen with regard to conditions of employment.

Introduction & Definition
• Definition under the Act (Sec.2) “Standing Orders” mean rules relating to matters
set out in the Schedule to the Act [Sec.2(g)] to be covered and in respect of which
the employer has to draft for submission to the Certifying Officer, are matters
specified in the Schedule.
• Objective of the Act:
• 1. The purpose of having Standing Orders at the plant level and other commercial
establishments is to regulate industrial relations.
• 2. This Orders regulate the conditions of employment, grievances, misconduct etc.
of the workers employed in industrial undertakings.
• 3. Unsolved grievances can become industrial disputes.

Model Standing Order
• Classification of W orkers
• Publication of W ork Time, Holidays, Pay Days and W age Rates
• Shift W orking
• Attendance and Late Coming
• Leave and Holidays
• Casual Leave
• Payment of W ages
• Stoppage of W ork
• Termination of Employment
• Disciplinary Action for Misconduct
• Suspension
• Dismissal, Complaints

Procedure for the Approval of Standing Orders
• The main provision that deal for the approval of Standing Orders are:
1. Procedure for the submission of Draft Standing Orders [Section 3]
2. Procedure for the Conditions for Certification of Standing Orders [Section4].
3. Procedure for Certification of Standing Orders (Procedure for Adoption) [Section
5]
4. Appeals [Section 6].

Procedure for the submission of Draft Standing Orders
1. W ithin 6 months from the date on which this Act becomes applicable to
industrial establishment, the employer shall submit to the Certifying Officer 5
copies of the draft standing orders proposed by him.
2. Provision shall have to be made as such every matter set out in the Schedule
which may be applicable to the industrial establishment and were model standing
orders have been prescribed.
3. Subject to such conditions as may be prescribed, a group of employers in similar
industrial establishments may submit a join draft or standing orders under this
section.

TOPIC: Scope and
Coverage of
Industrial
Employment

Scope and Coverage of Industrial
Employment
The Industrial Employment (Standing Orders) Act, 1946 came into force on April
23, 1946. The Act applies to the whole of India. It was initially made applicable to
only those industrial units/undertakings/establishments wherein 100 or more
workers were employed on any day of the preceding 12 months. Subsequently, the
Act was amended in 1961, 1963 and 1982. The Act empowers the appropriate
Governments to extend the provisions of this Act to establishments employing less
than 100 workers after giving not less than two months’ notice, of its intention to do
so, in the official gazette. The Act applies to all the Industrial Establishments as
defined in clause (II) of Section 2 of the Payment of Wages Act, 1936; Factories as
defined in clause (II) of Section 2 of the Factories Act, 1948; the Railways as
defined in the Indian Railways Act, 1890 and Establishment of a contractor who
employs workmen for the purpose of fulfilling the contract with the owner of any
Industrial Establishment.

Employment
• The Act does not, however, apply to workmen who are governed by the
Fundamental and Supplementary Rules, Civil Service Temporary Service
Regulations, Civilians in Defence Services (Classification, Control and Appeal)
Rules or the Indian Railways Establishments Code or any other rules or regulations
that may be notified in this behalf by the appropriate Government. The provisions
of the Act also apply to newspaper establishments wherein 20 or more employees
are employed by virtue of the enforcement of the Working Journalists (Conditions
of Service and Miscellaneous Provisions) Act, 1955.

Employment
• The main objectives of the Act, besides maintaining harmonious relationship
between the employers and the employees, are to regulate the conditions of
recruitment, discharge, disciplinary action, leave, holidays, etc. of the workers
employed in industrial establishments. The Act amended in 1982 also provides for
payment of subsistence allowance to the workmen who are kept under suspension
pending domestic enquiry. The rules regarding payment of subsistence allowance to
the suspended workmen were further amended by a notification in 1984 facilitating
payment during the suspension period, the subsistence allowance at the rate of 50
per cent of the wages, which he was entitled to, immediately preceding the date of
suspension, for the first 90 days and 75 per cent of such wages for the remaining
period of suspension, if the delay in completion of the disciplinary proceedings is
not directly attributable to his conduct. The employer shall normally complete the
enquiry within 10 days and the payment of subsistence allowance shall also be paid
with in such time period. subject to the workman not taking any employment
elsewhere during the period of suspension.

TOPIC: Certification
Process

Procedure for the Conditions for Certification of Standing
Orders:
The standing order to be certified by the certifying officer under certain conditions:
1. If provision is made therein for every matter set out in the schedule which is
applicable to the Industrial Establishment;
2. If the standing orders are otherwise in conformity with the provision of this Act
and it shall be the function of the Certifying Officer or appellate authority to
reasonableness of the provision of any standing orders.

Procedure for Certification of Standing Orders (Procedure for
Adoption)
1. The Certifying officer receipt of the draft Standing Orders from the employer
shall forward a copy of the draft standing orders to the recognized trade union of
the establishment seeking submission of objection to draft standing orders if any,
2. The standing orders came into operation on the expiry of 30 days from the date on
which the authenticated copies of the standing orders are forwarded to the
employer and the workmen by the certifying officer.3. The conditions of
employment, which will be binding on the employer and the workmen from the
date when they become operational.

TOPIC: Modification
and Temporary
application of
Model Standing
orders

Modification and Temporary application of Model Standing
orders
Under Section 10 of the Act the provision exists for modification of the Certified
Standing Orders. The Standing Orders can be modified even before expiry of the
prescribed time limit of 30 days provided both the management and its workmen
agree for it. The employer or the workmen desiring the change can make
application for modification to the Certifying Officer. The procedure for submission
of application for modification is the same as for initial certification under the Act.
When it is proposed to make modifications by agreement between the employer and
workmen, a certified copy of that agreement has also to be filed along with
application for modification.

TOPIC: Interpretation
and
Enforcement of
Standing Orders

Interpretation and Enforcement of
Standing Orders
The Act makes provision for appointment of Inspectors for its strict enforcement.
The following offences are punishable under Section 18 of the Act and the Central
Industrial Relations Machinery is to take suitable action wherever infringements of
the provisions come to their notice:
(i) Failures on the part of an employer to submit draft Standing Orders as per the
requirement under Section 3 of the Act.
(ii) Modification by employer of the Certified Standing Orders otherwise than in
accordance with the prescribed procedure, and
(iii) Any action of the employer, which is in contravention of the provisions of the
Certified Standing Orders.

TOPIC: Penalties
and Procedure

Penalties
and Procedure
Offences and Penalties:
If An employer fails to submit the draft Standing Orders as required by Section 3 or
who modified his standing orders otherwise with sec.10 shall be punishable with
fine which may extend to Rs.5000 and in case of continuing offence with a further
fine of Rs.200 for every day after the first during which the offence continues.• An
employer who does act in contravention of the standing orders finally certified
under this act for industrial establishment shall be punishable with fine which may
extend to Rs.100 and in case of continuous offence with further fine of Rs.25 every
day after the first during which the offence continues.• No persecution for any
offence punishable under section 13 shall be instituted except with the previous
sanction of the appropriate government. It can be tried only in the Court of a
presidency magistrate or the second class magistrate.

Topic: Industrial Disputes And Individual
Disputes

INDUSTRIAL DISPUTES AND INDIVIDUAL DISPUTES
• Industrial Disputes: Industrial Dispute is defined under Section 2(k) of the
Industrial Dispute Act, 1847. “Industrial dispute” means any dispute or 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 labor, of any
persons.”
To constitute Industrial Dispute following elements are to be satisfied -
• (1) A dispute Between Employers and employers or employer and workman or
workman and workman.
• (2) The Dispute should be connected with employment or non-employment or
terms of employment or conditions of labor of any person.
(3) The Dispute may be in relation to any workmen or any other person in whom
they are interested as a body

INDUSTRIAL DISPUTES AND INDIVIDUAL DISPUTES
• Individual Dispute: Whether a single workman who is aggrieved by an action of
the employer an raise Industrial Dispute. Section 2(k) of the Industrial Act, 1947
speaks of a dispute between employer and workmen. i.e. Plural form is used.
• Before insertion of the Section 2A of the Act, an Individual Dispute could not
per se be an Industrial Dispute but it becomes one if taken up by the Trade union or
a number of workmen to the dispute.
• An Individual Dispute to be declared as an Industrial Disputes, The following
Conditions are to be satisfied –
• (1) A body of workmen ( Trade Union)or a considerable number of workmen are
found to have common cause with the Individual workman;
• (2) That the Individual dispute was taken up or sponsored by the workmen as a
body ( trade union) or by Considerable Section of them before the date of
reference.

Topic: Interaction Between Industry, Workman And
Employer

Interaction between Industry, Workman and Employer
• Industrial Relations: Industrial relations is the study of how people in power make
decisions which effect the relationships between employers and Employees. •
Industrial relations is a multidisciplinary field that studies the employment
relationship. Industrial relations is increasingly being called employment relations
or employee relations because of the importance of non-industrial employment
relationships; this move is sometimes seen as further broadening of the human
resource management trend. Indeed, some authors now define human resource
management as synonymous with employee relations. Other authors see employee
relations as dealing only with non-unionized workers, whereas labor relations is
seen as dealing with unionized workers. Industrial relations studies examine various
employment situations, not just ones with a unionized workforce. However,
according to Bruce E. Kaufman "To a large degree, most scholars regard trade
unionism, collective bargaining and labor management relations, and the national
labor policy and labor law within which they are embedded, as the core subjects of
the field."

Industrial Relations
• According to J.T. Dunlop, “Industrial relations are the complex interrelations
among managers, workers and agencies of the government”
• Features of Industrial Relations: 1. Industrial relations are outcomes of
employment relationships in an industrial enterprise. These relations cannot exist
without the two parties namely employers and employees. 2. Industrial relations
system creates rules and regulations to maintain harmonious relations. 3. The
government intervenes to shape the industrial relations through laws, rules,
agreements, terms, charters etc. 4. Several parties are involved in the Industrial
relations system. The main parties are employers and their associations, employees
and their unions and the government. These three parties interact within economic
and social environment to shape the Industrial relations structure. 5. Industrial
relations are a dynamic and developing concept, not a static one. They undergo
changes with changing structure and scenario of the industry as and when change
occurs. 6. Industrial relations include both individual relations and collective
relationships.

Objectives of Industrial Relations
• 1. To maintain industrial democracy based on participation of labour in the
management and gains of industry.
• 2. To raise productivity by reducing tendency of high labour turnover and
absenteeism.
• 3. To ensure workers’ participation in management of the company by giving them
a fair say in decision-making and framing policies.
• 4. To establish a proper channel of communication.
• 5. To increase the morale and discipline of the employees.
• 6. To safeguard the interests of the labour as well as management by securing the
highest level of mutual understanding and goodwill between all sections in an
industry.

Objectives of Industrial Relations:
• 7. To avoid all forms of industrial conflicts so as to ensure industrial peace by
providing better living and working standards for the workers.
• 8. To bring about government control over such industrial units which are running
at a loss for protecting the livelihood of the employees.
• 9. To safeguard the interest of labor and management by securing the highest level
of mutual understanding and good-will among all those sections in the industry
which participate in the process of production.
• 10. To avoid industrial conflict or strife and develop harmonious relations, which
are an essential factor in the productivity of workers and the industrial progress of
a country.
• 11. To raise productivity to a higher level in an era of full employment by lessening
the tendency to high turnover and frequency absenteeism.

Importance of Industrial Relations:
• 1. Uninterrupted Production: The most important benefit of industrial benefits is
that it ensures continuity of production. This means continuous employment for all
involved right from managers to workers. There is uninterrupted flow of income for
all. Smooth running of industries is important for manufacturers, if their products
are perishable goods and to consumers if the goods are for mass consumption
(essential commodities, food grains etc.). Good industrial relations bring industrial
peace which in turn tends to increase production.
• 2. Reduction in Industrial disputes: Good Industrial relations reduce Industrial
disputes. Strikes, grievances and lockouts are some of the reflections of Industrial
unrest. Industrial peace helps in promoting co-operation and increasing production.
Thus good Industrial relations help in establishing Industrial democracy, discipline
and a conducive workplace environment.

Importance of Industrial Relations:
• 3. High morale: Good Industrial relations improve the morale of the employees and
motivate the worker workers to work more and better.
• 4. Reduced wastage: Good Industrial relations are maintained on the basis of co-
operation and recognition of each other. It helps to reduce wastage of material,
manpower and costs.
• 5. Contributes to economic growth and development.

Topic: Settlement Of Industrial Disputes

THE INDUSTRIAL DISPUTES ACT, 1947
• An Act to make provision for the investigation and settlement of industrial disputes,
and for certain other purposes.
• INDUSTRIAL DISPUTE: Any dispute or 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.

PROCEDURES FOR SETTLEMENT
• Collective Bargaining,
• Negotiation,
• Conciliation and Mediation,
• Arbitration and
• Adjudication
– Labour Court (Section 7)
– Industrial Tribunal (Section 7A)
– National Tribunals (Section 7B)

• Collective Bargaining is a technique by which dispute as to conditions of
employment, are resolved amicably, by agreement, rather than by coercion. The
dispute is settled peacefully and voluntarily, although reluctantly, between labour
and management.
• Negotiation is one of the principal means of settling labour disputes. However,
due to lack of trust between the employers and workmen or their trade unions or
inter-rivalry of the trade unions and the employers being in a commanding
position, many a time negotiations fail.

• Through conciliation and mediation a third party provides assistance with a view
to help the parties to reach an agreement. The conciliator brings the rival parties
together discuss with them their differences and assist them in finding out solution
to their problems.
• Mediator on the other hand is more actively involved while assisting the parties to
find an amicable settlement. Sometimes he submits his own proposals for
settlement of their disputes.

CONCILIATION OFFICERS : Appointed by the appropriate Government
• Duty: Settlement of industrial disputes.
• Nature : Appointed for a specified area or for specified industries in a specified area
or for one or more specified industries and either permanently or for a limited
period.
• The resort to arbitration procedure may be compulsory or arbitrary . Compulsory
arbitration is the submission of disputes to arbitration without consent or
agreement of the parties involved in the dispute and the award given by the
arbitrator being binding on the parties to the dispute.

• Labour Courts are constituted by the appropriate Govt. for the adjudication of
industrial disputes relating to any matter specified in the Second Schedule and for
performing such other functions as may be assigned to them under this Act.
• These matters are concerned with the rights of workers.

• National Tribunals are constituted by the Central Government for the adjudication
of industrial disputes which, in the opinion of the Central Government, involve
questions of national importance or 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.

• INDUSTRIAL TRIBUNALS are constituted by the appropriate Govt. for the
adjudication of industrial disputes relating to any matter specified in the Second
Schedule or the Third Schedule and for performing such other functions as may be
assigned to them under this Act.
• Both rights and interest disputes

Topic: Powers Of Appropriate Government Under
Industrial Dispute Act , 1947

Powers of appropriate government under Industrial Dispute Act ,
1947
• “Appropriate Government" means in relation to any industrial dispute
concerning any industry carried on by or under the authority of the Central
Government, or by a railway company or concerning any such controlled industry
as may be specified in this behalf by the Central Government] or in relation to an
industrial dispute concerning a banking or an insurance company, a mine, an oil-
field] , a Cantonment Board,] or a major port, the Central Government, and in
relation to any other industrial dispute, the State Government.

Powers of appropriate government under Industrial Dispute Act ,
1947
• Where the appropriate government is of opinion that any industrial dispute exists or
is apprehended, it may at any time, by order in writing:
1. Refer the dispute to the board for promoting a settlement, or
2. Refer any matter appearing to be connected with or relevant to the dispute to a
court for inquiry, or
3. Refer to the dispute or any matter appearing to be connected with or relevant to
the dispute, if it relates to any matter specified in the Second Schedule to a labour
court for adjudication, or
4. Refer the dispute or any matter appearing to be connected with, or relevant to the
dispute, if it relates to any matter specified in the Second Schedule or the Third
Schedule, to a tribunal for adjudication.

Topic: Unfair Labour Practice

UNFAIR LABOUR PRACTICES
• Section 2(ra) defines Unfair Labour Practices as “any of the practices specified
under Schedule V of the act”.
• Fifth Schedule contains the list of Unfair Labour Practices (ULP’s). Following are
the two categories are under:
• a) Unfair Labour practices on part of employer or trade union of employers.
• b) Unfair Labour practices on part of workmen or trade union of workmen.

BY EMPLOYERS AND THEIR TRADE UNION
• 1. Establish employer sponsored trade union
• 2. Favouritism and Partiality- regardless of merit –
• Case: L.H. Factories and Oil Mills, Pilibhit v. State of U.P. it was held that unjust
dismissal, unmerited promotion, partiality towards one set of workers are some
illustrations of Unfair labour practice.
• 3. Refuse to Bargain - in a good faith with the recognised trade union.
• 4. Continuation of Lock-out - illegal
• 5. Indulge in Violence and act of force

• 6. Failure to implement rewards, settlement or agreement .
• 7. Recruit workmen during strike. - strike should not be illegal.
• 8. Discharge or discriminate against workmen. - for filing charges or testifying
against an employer in any enquiry or proceeding relating to any industrial dispute.
9. Employ workmen as ‘badlis’ or temporary - depriving them the status and
privilege of permanent workers. –
• Case: Devendra Kumar C. Sonali v. State of Gujarat and Others, it was held that the
work done by temporary and permanent workmen was same but the difference in
payment of wages is alarming. It was further held that this difference is under ULP
and according to section 2(ra) read with Fifth Schedule.
• 10. Favour by Bond.

• 11. Transfer of workmen - Transfer mala fide in guise of management policy.
• 12. Handover the work to Contractor - Provide that, the strike should not be illegal.
13. Discharge or dismiss workmen :
• a. by way of victimization;
• b. not in good faith;
• c. by implication a false case;
• d. untrue allegations of absence without leave;
• e. discard of Principles of Natural Justice
• f. disproportionate punishment, for minor character and without considering past
records.

• c. changing seniority rating of workman because of trade union activities.
• d. refuse to promote workmen because of union activities.
• e. giving unmerited promotions
• f. discharging office-bearers or active members of the trade union on account of
their trade union activities.

• 1. Support Illegal Strike- nor actively participate neither support.
• 2. Refuse to Bargain- workmen can not refuse to bargain with employer in a good
faith.
• 3. Indulge in Coercive activity- with the bargaining representative of employer.
• 4. Indulge in Violence against fellow workmen
• Case: Bengal Bhatdee Coal Co. v. Singh- thirteen workers obstructed other
workmen to continue the work in order them to join the strike. The company served
charge-sheet on them. Welfare officer conduct enquiry and order dismissal. It was
held ULP.
• 5. Damage to employers property- associated with industry

• 6. Assemble at employers property- or any of the member of managerial staff.
• 7. Encourage mala fide practices- go slow or insist ‘gherao’.
• 8. Coerce other workmen- to join, or to refrain to join Trade Union.

TOPIC: Concept of Strike

Strike
• “STRIKE” has been defined in section 2(q) of the Industrial Disputes Act, 1947 in
the following words: “ ‘Strike’ means a cessation of work by a body of persons
employed in any industry, acting in combination or a refusal, or a refusal under a
common understanding, of any number of persons who are or have been so
employed to continue to work or to accept employment.”

Strike
• WHAT IS STRIKE? A strike action is when a large no. of people used to pressure
government or an Organization to change the policy. Strike is a very powerful
weapon to get its demands accepted by a trade union or in the hand it’s the way of
showing strength of a union .

Strike
The use of English word “strike” first appeared in 1768, when sailors in support of
demonstration in London. removed the topgallant sails of merchant ships at port,
thus crippling the ships. According to industrial disputes act, 1947, Strike means ,
“cessation of work by a group of workers for the purpose of bringing pressures on
their employers to accept their demands”.

Types Of Strikes
• ECONOMIC STRIKES
• SYMPATHETIC STRIKES
• GENERAL STRIKES
• SIT-DOWN STRIKES
• SLOW-DOWN STRIKES
• HUNGER STRIKES
• GHERAO
• BOYCOTT WILDCAT STRIKES

Economic strikes
• Strikes arise for a number of reasons, though principally in response to economic
conditions. Economic strike is conducted by the workers to improve wages ,
benefits or to improve work conditions and facilities provided to them.

Sympathetic Strikes
• This type of strike is conducted in support of other workers who are on strike. In
this case the workers may not have direct injustice from the employer of the former
union of workers.

General Strikes
• A general strike is a strike action in which a substantial proportion of the total
workers in a region or country participates. It may also be an extension of the
sympathetic strike to express generalized protest by the workers.

Sit-down Strikes
• A sit-down strike is a form of civil disobedience in which a group of workers,
usually employed at a factory take possession of the workplace by "sitting down" at
their stations. Main reason behind this is preventing their employers from replacing
them with strikebreakers or in some cases moving production to other locations. It
is also called tools down or pens down strike.

Slow-down Strikes
• SLOW-DOWN STRIKES A slowdown is an industrial action in which employees
perform their duties but seek to reduce productivity or efficiency in their
performance of these duties. It an alternative to a strike, as it is seen as less
disruptive as well as less risky and costly for workers employers

Hunger Strikes
• It is followed either by leaders or by some workers or by both for a limited period.
The purpose is to create sympathy of the employer & to attract the attention of the
public. It is nonviolent in nature. In this method the participants try to provoke
feelings of guilt in others or the employers , usually with the objective to achieve a
specific goal, such as a policy change.

Gherao
• Gherao, meaning "encirclement," is a word originally from
Hindi . This type of strike is restricted to India only . Usually,
a group of people would surround a politician or a government
building until their demands are met, or answers given. It form
of industrial action in India in which workers imprison their
employers on the premises until their demands are met.

Boycott
• A boycott is an act of voluntarily abstaining from using, buying, or dealing with a
person, organization, or country as an expression of protest. In this case workers
decide not to use the company’s products the appealing the public to do so. It is an
voluntary withdrawal of cooperation.

Wildcat Strikes
• It is suddenly announced, without notice or at very short notice & thereafter the
issues of disputes are discussed . This type of strike action is taken by workers
without the authorization of their trade union officials. This is sometimes termed
unofficial industrial action

Section 26 Penalty For Illegal Strikes And Lock-outs
• Any workman who commences, continues or otherwise acts in furtherance, of, a
strike which is illegal under that Act, shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend to fifty
rupees, or with both.

Section 26 Penalty for illegal strikes and lock-outs
• Any employer who commences, continues, or otherwise acts in furtherance of a
lock-out which is illegal under this Act, shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend to one
thousand rupees, or with both.

TOPIC: Lay Off

Meaning of Lay-Off:
• The term ‘lay-off’ has been defined under section 2 (kkk) of the Industrial Disputes
Act, 1947, thus lay-off means the failure, refusal or inability of an employer on
account of the shortage of coal, power or raw materials or the accumulation of
stocks or the breakdown of machinery or natural calamity or for any other
unconnected reason to give employment to a workman whose name is borne on the
muster rolls of his industrial establishment and who has not been retrenched.

Essentials
• (i) There must be failure, refusal or inability on the part of the employer to give
employment to a workman.
• (ii) The failure, refusal or inability should be on account of shortage of coal, power
or raw materials or accumulation of stocks or breakdown of machinery, or natural
calamity, or any other connected reason.
• (iii) The workman’s name should be on the muster rolls of the industrial
establishment.
• (iv) The workman should not have been retrenched.

Essentials
• Lay-off is a measure to cope with the temporary inability of an employer to offer
employment to a workman to keep the establishment as going concern. It results in
immediate unemployment though temporary in nature. It does not put an end to the
employer-employee relationship, nor does it involve any alteration in the conditions
of service.
• Further, lay-off occurs only in a continuing business. When the industrial
establishment is closed permanently or it lock-out is declared by the employer, the
question of lay-off has no relevance. Lay-off is justified only when it is in
conformity with the definition given under Section 2 (kkk) of the Industrial
Disputes Act.

TOPIC: Disciplinary Action and Domestic Enquiry

Objective
• To highlight the procedure for a fair and proper domestic enquiry as per
requirements of law.
• Why we go for domestic enquiry ?
• In today’s context no employer can discharge or dismiss a delinquent workman
even for a serious misconduct without following an elaborate procedure for taking
disciplinary action.
• It is only when the workmen is found guilty of the charge in an enquiry conducted
as per the principal of natural justice, that the employer after following the
procedure can punish him as per the company’s standing orders.

Principal of natural justice
• • No man shall be the judge in his own cause
• • Both sides shall be heard.
Rules of natural justice :
the employee proceeded against had been informed clearly of the charges leveled
against him. • The witnesses are examined ordinarily in the presence of the
employee in respect of the charges • The employee is given fair opportunity to
crossexamine the witnesses • The employee has been given reasonable opportunity
to defend.

• Suppose the employer has dismissed/ discharged a workmen after following the
procedure, conducting a fair and proper enquiry. Now the question is whether his
decision can be challenged?

• The answer is yes. Decision can be challenged by the workmen under section 2-A
of the ID Act, 1947 by raising an industrial dispute and for this he need not have
support of any trade union or other workmen. However, if an employee is not a
workman he can not raise industrial dispute under the ID Act.

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