The Trade Unions (Amendment) Bill, 2019

The Trade Unions (Amendment) Bill, 2019 was introduced in Lok Sabha by the Minister of Labour and Employment, on January 8, 2019. Which provides for the registration and regulation of trade unions.  Introducing the Trade Unions (Amendment) Bill 2019, Union Minister Santosh Kumar Gangwar said that so far there was no legal framework on representation of trade unions in policymaking and the proposed legislation will address the issue. The present Act provides for only registration of trade unions and there is no provision for recognition.

The Bill seeks to provide for recognition of trade unions or a federation of trade unions at the central and state level by the central and state government, respectively. Such trade unions or the federation of trade unions will be recognised as Central Trade Unions or State Trade Unions, as the case may be.

The central or state government may make rules for: 

1. the recognition of such Central or State Trade Unions, and
2. the authority to decide disputes arising out of such recognition, and the manner of deciding such disputes.

THE TRADE UNIONS (AMENDMENT) BILL, 2019

A BILL further to amend the Trade Unions Act, 1926. BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:— 

1. (1) This Act may be called the Trade Unions (Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 

Insertion of new section 10A.

2. In the Trade Unions Act, 1926 (hereinafter referred to as the principal Act), after section 10, the following section shall be inserted, namely:––

"10A. (1) Where the Central Government is of the opinion that it is necessary or expedient to recognize a Trade Union or a federation of Trade Unions as Central Trade Union at the Central level, it may recognize such Trade Union or a federation of Trade Unions as the Central Trade Union in such manner and for such purposes as may be prescribed and if any dispute arises in relation to such recognition, it shall be decided by such authority in such manner as may be prescribed by the Central Government.

(2) Where the State Government is of the opinion that it is necessary or expedient to recognize a Trade Union or a federation of Trade Unions as the State Trade Union at the State level, it may recognize such Trade Union or a federation of Trade Unions as the State Trade Union in such manner and for such purposes as may be prescribed and if any dispute arises in relation to such recognition, it shall be decided by such authority in such manner as may be prescribed by the State Government.".

Amendment of section 29.

3.  In section 29 of the principal Act, in sub-section (2), after clause (b), the following clause shall be inserted, namely:— "(ba) the manner and purposes for recognition of Trade Union or federation of Trade Unions as Central Trade Union or, as the case may be, State Trade Union and the authority to decide disputes arising out of such recognition including the manner of deciding such disputes;".

STATEMENT OF OBJECTS AND REASONS 

The Trade Unions Act, 1926 (the said Act) has been enacted to provide for registration of Trade Unions and in certain respects to define the law relating to registered Trade Unions. 2. Being a pre-independence legislation, the said Act provides only for registration of Trade Unions. There is no provision for recognition of Trade Unions in the Act. However, presently recognition of Trade Union is governed by instructions and guidelines in the Code of Discipline evolved in 1958 as voluntarily accepted by employers and employees. 3. Since there are demands from various quarters for providing statutory force to the recognition of Trade Unions so that their role will become more important in maintaining harmonious industrial relations in the country, the Government proposes to amend the said Act to make provisions for recognition of Trade Unions or federation of Trade Unions at Central and State level. It is also proposed to empower the appropriate Government to make regulations to facilitate the manner and purposes of such recognition. 4. The Bill seeks to achieve the above objectives.

NEW DELHI; 

SANTOSH KUMAR GANGWAR
The 3rd January, 2019.

MEMORANDUM REGARDING DELEGATED LEGISLATION 

Clause 3 of the Bill seeks to insert clause (ba) in sub-section (2) of section 29 of the Trade Unions Act, 1926 so as to empower the appropriate Government to make regulations to provide the manner and purposes for recognition of Trade Unions or federation of Trade Unions as Central Trade Union or, as the case may be, State Trade Union and the authority to decide disputes arising out of such recognition including the manner of deciding such disputes. 2. The matters in respect of which rules may be made by the appropriate Government are matters of procedure and administrative details and it is not practicable to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal character.

Cabinet approves amendment to Trade Unions Act, 1926

The Cabinet 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. Briefing reporters in New Delhi yesterday, Minister of State for Labour and Employment Santosh Kumar Gangwar said, the proposed bill will ensure that the nomination of workers’ representatives in tripartite bodies by the government will become more transparent.