Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Mahar

CS Professional · Labour Laws and Practice · PYQS · June 2024
Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India, which gives progressed items and framework to military and government for manufacturing units. AML is one of the top Maharatna PSUs. The company has grown significantly in turnover and is consistently giving sufficient profit. AML is focusing on solid development of 12-15% during 2022-23. Radar and Missile Systems, Communication, Network-Centric Systems and other areas will continue to drive the company's growth in the years ahead. In spite of being one of the top industries, total 1000 workers are employed and the working condition of most of the contractual workers are not good. Therefore, Aviary Metal Limited (AML) workers union decided to amalgamate to have effective collective bargaining as there were two registered trade unions and they all were demanding 7th pay Commission and better working conditions in AML. The contractual workers comprising 60 percent of the AML strength, which are continuously working for the last 5 years and still they are on contract employment. Now after 5 years of service, the licence of the contractor has expired to engage the contract labor or the contractor has not applied for the renewal of the licence but the workmen were still employed with the company and not given the status of regular employees. There were frequent strikes with respect to it. Now to have effective collective bargaining with the management, those two registered trade unions have amalgamated to become a strong trade union with the name of Hind Mazdoor Sangh. Hind Mazdoor Sangh were in negotiations with the management for implementation of 7th Pay Commission and to notify permanent positions for several months. Despite several round of discussions, no agreement has been reached. The industrial peace got disturbed which led to frequent strikes affecting the production and target delivery of products causing financial loss to the company. The union after giving notice to management decided to go on hunger strike for 10 days. The management of AML claims that this strike is illegal under the Industrial Disputes Act, 1947, as it has not followed the prescribed procedure for calling a strike. The management has decided to deduct 10 days wages of workers who resorted to hunger strike and initiated disciplinary proceedings against them as they turned violent, they damaged the property of the company as well. In the meanwhile, due to some dispute with the officers of AML, one worker named Rakesh has been suspended who was active member of the Union. In response to the above action, Hind Mazdoor Sangh filed the case before the Labour Court against the AML. Whereas Court decided the case in favour of Management along with compensation of ₹ 2 Lakh for the loss suffered by management. Based on the above facts, answer the following questions, with relevant provisions: Are contract employees eligible to form a trade union? Are workmen entitled to go for civil or criminal immunities under the Trade Union Act?

Answer & Explanation:

Eligibility to form a Trade Union: Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions. [Section 2(h) of the Trade Unions Act, 1926] Contract Employees can form a trade union as per the Trade Unions Act, 1926 as Section 4 of the Act does not make any difference between the contractual or permanent employees with respect to forming a trade union, or Section 4 does not define or do not prohibit the contractual employees to form a trade union. As they can form a trade union or become a member of the trade union. Immunities under Trade Union Act: Section 17 of the Trade Unions Act, 1926 provides that no office-bearer or member of a registered Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal Code, in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in section 15, unless the agreement is an agreement to commit an offence. As the workers can form a trade union or become a member of the trade union, but they are not entitled for criminal immunity because the moment they turned violent, and damage the property of the company, no immunity will be granted to them as defined under Section 17 of the Trade Unions Act, 1926. Section 18 of the Trade Unions Act, 1926 provides that no suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any office-bearer or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is an interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills. A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by, the executive of the Trade Union.

Topics: Trade Unions Act, 1926

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