7 January 2019

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Labour and Industrial

Cabinet approves Amendment to the Trade Unions Act, 1926 recognizing trade unions


Central Government has approved Amendment to the Trade Unions Act, 1926 to make provisions regarding Recognition of Trade Unions. The approval will facilitate recognition of Trade Unions at Central and State level, would ensure true representation of workers in the tripartite bodies. It would keep a check on arbitrary nomination of workers’ representatives by the Government and there will be reduction in litigations and industrial unrest.

The proposed Bill will ensure that, the nomination of workers’ representatives in tripartite bodies by the government will become more transparent. Trade Unions so recognized would be accountable in maintaining industrial harmony. Recognition of Trade Unions at Central/State level would reduce duplicacy of such exercise by different departments. Recognized Trade Unions may be assigned specific roles at Central or State level. As per the amendment draft, Clause A in Section 28 would be inserted recognizing trade union on centre and state level. Further, the bill also provides for insertion of clause (ba) in Section 29(2) of the Act, empowering the centre and states to make regulations for manner of recognition of trade unions and deciding disputes as arise.

As of now, the Trade Unions Act, provides for only registration of trade unions. The recognition would play a significant role in negotiating rights of employee with the employer. Trade union is a voluntary organization of workers relating to a particular trade, industry or a company and formed to promote and protect their interests and welfare by collective action. Trade Union balances and improves the relations between the employer and the employees. The Act is administered by the Ministry of Labour.

Tags : Amendment Trade union Recognition

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