Page 258 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 11: Trade Union Act, 1926

Notes
!
Caution
Examples of judgements which make Examples of judgements which make
Employers happy Workers happy
Imposition of fine on trade union leaders for indulging in Regularisation of casual/contract labour. Absorption
arson, loss of company property, etc. organization contract labour as regular labour when the
Strike is not a fundamental right. system of contract labour is abolished.
Ruling that a strike has not only to be legal, but also Striking off of the contents of service conditions and
justified; Application of the norm of no work no pay in the standing orders in matters like treating unauthorised
case of strikes and for those who do union work as against absence for over a week as abandonment of employment.
company work.
Restrictions on protest demonstration, political bundhs, Requirement of a notice of change when the Voluntary
etc. Retirement Scheme is introduced because work done by
more people will now be required to be done by fewer
people.
Decision of the Karnataka High Court upholding the Ruling of the Supreme Court that the service of employees
dismissal of the president of the employees' association of a in an organisation cannot be terminated arbitrarily and
public sector establishment for having criticised its abruptly by giving notice of one or three months or pay in
chairman in the media and for having made representation lieu of notice.
to the Governor.
Decision that in the case of accidents by a bus or lorry, the Abolition of child labour in hazardous industries.
compensation payable to the victims should be recovered
from the earning of drivers.
Political bundhs and protest should not penalise our civil rights. The court questions the collective
bargaining rights of workers in LIC, when it was found that their agreement was pre-judicial to
the interest of policy holders. Telcom Unions in Orissa and Mathadi workers in Mumbai have
been asked to pay damage for causing loss to the consumer. Courts are fixing responsibility not

only on organisation, but also on individual employees/unions/associations leaders. In some
cases, courts are empowering employers to recover money from the Sacred Provident Fund
money. The courts have upheld the privatisation of public sectors (BALCO case), despite the
protest by public sector workers.

Task Is union influence on the decline? If yes, illustrate arguments with examples

from the corporate world.

Case Study Norman (I) Limited
The Company
The first wall tile manufacturing plant in India was established by Kay Pee in 1963 at

Thane in Mumbai under the name Norman tiles. The company was using the brand name
‘Norman’, a leading international tile manufacturer, Norman International Limited and
was paying royalty for the same. The Norman International Limited owned 49% equity
in this venture since its inception. With growth in sight the company set up another
manufacturing unit at Rampur in the state of Uttar Pradesh with an investment of ` 85
million in the year 1981. Initially, at Rampur unit the company was carrying out only partial
operations with semi-finished products being supplied by Thane unit. It was only in 1984,

that the company started carrying out full operations at the Rampur unit. Since, the market
for ceramic tiles started expanding, the company expanded its operations, accordingly. The
process of manufacturing wall tile was such that it needed unskilled manpower barring few
Contd...

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