Cabinet approves amendments to the Trade Union Act 1926

The Union Cabinet approved amendment to the Trade Unions Act, 1926 to make provisions regarding recognition of trade unions. The present act provides for only registration of trade unions. Currently, there is no provision for recognition of unions in the Act. The proposed Bill will ensure that the nomination of workers’ representatives in tripartite bodies by the government will become more transparent. The trade unions so recognized will be accountable in maintaining industrial harmony. The amendment provides for the insertion of Section 10A in the principal Act, which empowers center and states government to recognize trade unions and federation of the trade union at the central government level.

Key Highlights 

  • The amendment bill provides for inserting of section 10A in the Trade Union Act, 1926 to power center and state governments to recognize trade unions and federation of trade unions at central as well as state level.
  • The amendment bill once passed by the parliament, the Ministry of Labour would issue rules and regulations prescribing the manner of recognition of these trade union
  • Ensure true representation of workers in the tripartite bodies in a transparent manner. Check on the arbitrary nomination of workers’ representatives by the Government. Reduce the duplicacy of such exercise by different departments
  • The recognized trade unions may be assigned specific roles at Central or State level. This would aid in developing inclusive governance.
  • The Indian Trade Unions Act, 1926 provided for only registration of trade unions and there was a long pending demand to grant recognition to trade unions. The amendment bill fulfills this long-standing demand.