''Taff Vale Railway Co v Amalgamated Society of Railway Servants'' [1901
UKHL 1
commonly known as the ''Taff Vale case'', is a formative case in UK labour law. It held that, at common law, Trade union, unions could be liable for loss of profits to employers that were caused by taking strike action. The Trade unions in the United Kingdom, labour movement reacted to ''Taff Vale'' with outrage; the case gave impetus to the establishment of the UK Labour Party (UK), Labour Party and was soon reversed by the Trade Disputes Act 1906. It was reversed at common law in ''

Crofter Hand Woven Harris Tweed Co Ltd v Veitch ''Crofter Hand Woven Harris Tweed Co Ltd v Veitch'' 941UKHL 2is a landmark UK labour law case on the right to take part in collective bargaining. However, the actual decision which appears to allow secondary action may have been limited by devel ...

942 Year 942 ( CMXLII) was a common year starting on Saturday (link will display the full calendar) of the Julian calendar. Events By place Europe * Summer – The Hungarians invade Al-Andalus (modern Spain) and besiege the fortress ...

Events

trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ...

, called the

Amalgamated Society of Railway Servants Amalgamation is the process of combining or uniting multiple entities into one form. Amalgamation, amalgam, and other derivatives may refer to: Mathematics and science * Amalgam (chemistry), the combination of mercury with another metal ** Pan am ...

, went on strike to protest against the company's treatment of John Ewington, who had been refused higher pay and was punished for his repeated requests by being moved to a different station. When the

Taff Vale Railway The Taff Vale Railway (TVR) was a standard gauge railway in South Wales, built by the Taff Vale Railway Company to serve the iron and coal industries around Merthyr Tydfil and to connect them with docks in Cardiff. It was opened in stag ...

Company employed replacement staff, the strikers engaged in a sabotage campaign, greasing the rails and uncoupling the carriages. The Taff Vale Railway Company thus decided to engage with the union for the purpose of

collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The ...

and the workers returned to work. The Railway Company, however, decided to sue the union for damages and won. Previously it had been thought that trade unions could not be sued, because they were unincorporated entities, under the law of trusts. Mr Justice Farwell held in favour of the company. His decision was reversed by the

Court of Appeal A court of appeals, also called a court of appeal, appellate court, appeal court, court of second instance or second instance court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In much ...

, but restored on further appeal to the House of Lords.

Judgment

The

House of Lords The House of Lords, also known as the House of Peers, is the upper house of the Parliament of the United Kingdom. Membership is by appointment, heredity or official function. Like the House of Commons, it meets in the Palace of Westminst ...

ruled that, if a union is capable of owning property, and capable of inflicting harm on others, then it is liable in

tort A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with criminal wrongs that are punishable ...

for the damage it causes. Here, the damage was said to be the economic loss caused to the company when the employees broke their contracts of employment to go on strike. So the Taff Vale Railway Co was successful in suing for damages. It was awarded £23,000 plus court costs, reaching a total of £42,000. This set the

precedent A precedent is a principle or rule established in a previous legal case that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts. Common-law legal systems place great v ...

that unions could be held liable for damages resulting from actions by its officials. The Earl of Halsbury LC began. Lord MacNaughten delivered the leading judgment. Lord Shand's judgment was read as follows: Lord Brampton concurred. Lord Lindley, an expert on

partnership law A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governme ...

concurred.

Significance

Balfour's

Conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization in ...

government later set up a Royal Commission, a decision that was unpopular among trade unionists. The decision was a turning point for the newly formed Labour Representation Committee. Affiliation from trade unions to the LRC stood at 350,000 in 1901 but rose to 450,000 in 1902 and 850,000 in 1903. Five more joined this cause in through the formation of the 'League Chat'. A mass movement was being formed that led to the creation of the modern British Labour Party (UK), Labour Party. Subsequently the Labour party was elected in a significant minority of the seats in Parliament and, in partnership with the Liberal government, passed the Trade Disputes Act 1906. This overrode the ruling in ''Taff Vale'' and provided the foundation for the law on the right to strike in the UK, that no cause of action could be brought against a trade union for economic loss, if a strike was "in contemplation or furtherance of a trade dispute". Although, English law does not provide a 'right' to strike in the strict sense, it is better seen as providing immunity from tortious liability should certain substantive and procedural requirements be met.See the remarks of Maurice Kay LJ in Metrobus Limited v Unite the Union 009IRLR 851.

Notes

{{Reflist, 2

References

*G Lockwood, 'Taff Vale and the Trade Disputes Act 1906' in

KD Ewing Keith David Ewing (born 29 March 1955) is professor of public law at King's College London and recognised as a leading scholar in public law, constitutional law, law of democracy, labour law and human rights. Ewing's work has been considered as ...

''The Right to Strike, Institute of Employment Rights'' (2006) 11-30 United Kingdom labour case law Political history of the United Kingdom British trade unions history Taff Vale Railway Lord Lindley cases House of Lords cases 1901 in case law United Kingdom trade union case law United Kingdom strike case law 1901 in British law 1901 in labor relations Railway litigation in 1901

Events

Judgment

Significance

See also

Notes

References