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Trade Disputes Act 1906
Long title An Act to provide for the regulation of Trades Unions and Trade Disputes.
Citation 6 Edw. 7 c. 47
Territorial extent  England and Wales; Scotland; Northern Ireland
Dates
Royal assent 21 December 1906
Status: Repealed

The Trade Disputes Act 1906 was an important law passed in the United Kingdom. It was created by the Liberal government, led by Sir Henry Campbell-Bannerman. This Act made it so that trade unions could not be sued for money if a strike caused problems.

This law added a key rule to an older law from 1875. It said that if people worked together during a trade dispute, their actions would not be illegal unless they were already illegal if done alone. This rule is still part of British law today.

Why the Act Was Needed

Before this Act, some court cases made it hard for trade unions to do their job. Courts started saying that unions could be sued for damages during strikes. This was a new idea. Before, unions were seen as groups that couldn't sue or be sued in court.

Important Court Cases

Two cases helped shape the need for the Act. One was Lumley v Gye in 1857. This case was not about unions. It said that if someone convinced another person to break a contract, they could be sued. This idea could apply to unions if they encouraged workers to strike and break their work contracts.

Another case was Allen v Flood in 1897. Here, the highest court said a union could not be sued for pressuring an employer not to hire a non-union worker. The court decided that even if the union had a bad reason, the employer's choice not to hire was legal.

The Taff Vale Case

Then came the Taff Vale Railway Co v Amalgamated Society of Railway Servants case in 1901. This case surprised everyone. The court ruled that trade unions could be sued for damages caused by strikes. This meant unions could lose a lot of money.

This decision made many workers and union members very angry. They met and decided to form the Labour Party. Their main goal was to get this court decision changed by Parliament. Two more cases made things even harder for unions. One case made it difficult for unions to have "closed shops," where only union members could work. Another case said unions couldn't claim they had "honest motives" for causing a strike, even if they wanted better pay or conditions for workers.

Politics Behind the Law

The Liberal Party won a big election in 1906. Some leaders, like Prime Minister Campbell-Bannerman, wanted a law that would protect unions from being sued. But other leaders, especially those with legal backgrounds, thought this would make unions too powerful. They wanted a weaker law.

The group who wanted a weaker law won the first argument. A bill was introduced that was very complicated. Many members of Parliament, especially those from trade unions, didn't understand it. So, union MPs, led by W. Hudson, wrote their own, simpler bill.

How the Act Passed Parliament

The union-backed bill was strongly criticized by the government's top lawyer. But then, Prime Minister Campbell-Bannerman did something unexpected. He spoke in favor of the trade unionists' bill. He said he wanted to make sure that workers and employers were on an equal playing field. He believed the fight between them should be fair.

This surprised many, including other politicians. They couldn't believe the Prime Minister would support a bill that his own lawyer had criticized. But Campbell-Bannerman's support helped the union's version of the bill move forward. In the end, the committee dealing with the bill decided to support the trade unions' plan.

The main goal of the Trade Disputes Bill was to stop arguments between workers and employers from ending up in court.

What the Act Meant

The Trade Disputes Act 1906 gave trade unions amazing protection. It meant they could not be sued for many actions during a strike. This made unions very happy. They felt that a powerful government had listened to their demands.

Some legal experts at the time were worried. They said the Act gave unions special rights that no other group had. They felt it made unions "privileged" and above the normal law. However, this Act was very important for workers' rights.

The Act stayed in place for many years, until 1971. For its 100th birthday, the Trades Union Congress (a big union group) pushed for new laws to protect union freedoms even more.

The Right to Strike

The Trade Disputes Act 1906 was one of the most important laws of the 20th century for workers. It became the foundation for how workers and employers negotiated in the country. It also influenced laws in other countries.

Today, the right to strike is seen as a basic human right. Courts have said that this right, first given by Parliament in 1906, is a fundamental human right for trade unions.

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