There was dispute between the management of XYZ and Co. and its workers' union, which was registered under the Trade Unions Act, 1926. The said dispute related to the introduction of productivity linked bonus scheme. The
CS Professional · Labour Laws & Practice · PYQS · December 2021
There was dispute between the management of XYZ and Co. and its workers' union, which was registered under the Trade Unions Act, 1926. The said dispute related to the introduction of productivity linked bonus scheme. The union decided to go on strike and served a notice on the management. The Union chalked out a detailed programme to make the strike success. It was decided not to resort to violence. As expected, the strike which commenced on the expiry of the notice was a great success. The management wants to initiate criminal proceeding against the office bearers of the trade union and also wants to file a civil suit against the union for the loss suffered due to strike action. Advise the management according to provisions of Trade Union Act, 1926, will it make any difference in your answer, if the workers had gone on strike to protest the new Industrial policy announced by the Government?
Answer & Explanation:
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". Trade union is a voluntary organization of workers pertaining to a particular trade, industry or a company and formed to promote and protect their interests and welfare by collective action. They are the most suitable organisations for balancing and improving the relations between the employer and the employees. They are formed not only to cater to the workers' demand, but also for inculcating in them the sense of discipline and responsibility. Section 17 of the Act deals with Criminal conspiracy in trade disputes. It 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 1860, in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in section 15, unless the agreement is an agreement to commit an offence. Further Section 18 of the Act deals with immunity from civil suit in certain cases. It states that: (1) 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 in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills. (2) 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. Thus from the above and as per facts given in the case study, the management of XYZ & Co. cannot succeed in a civil suit for recovery of damages for causing loss to the property of the company or initiate criminal proceeding against the office bearers of the trade union. However, those workers who became violent and caused substantial loss to the establishment are civilly and criminally liable for their acts. If the workers had gone on strike to protest the new Industrial policy announced by the government, the office bearers would be liable for damages as the strike in that case would not be in contemplation or furtherance of a trade dispute as defined in section 2(g) of the Trade Union Act, 1926.
Topics: Trade Unions Act, 1926
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