''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''

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Facts

trade union A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...

, called the Amalgamated Society of Railway Servants, 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 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 labour rights, rights for ...

and the workers returned to work. The 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 An appellate court, commonly called a court of appeal(s), appeal court, court of second instance or second instance court, is any court of law that is empowered to Hearing (law), hear a Legal case, case upon appeal from a trial court or other ...

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

Judgment

The

House of Lords The House of Lords is the upper house of the Parliament of the United Kingdom. Like the lower house, the House of Commons of the United Kingdom, House of Commons, it meets in the Palace of Westminster in London, England. One of the oldest ext ...

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, other than breach of contract, 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 cri ...

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 Precedent is a judicial decision that serves as an authority for courts when deciding subsequent identical or similar cases. Fundamental to common law legal systems, precedent operates under the principle of ''stare decisis'' ("to stand by thin ...

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 concurred.

Significance

Balfour's

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

government later set up a

royal commission A royal commission is a major ad-hoc formal public inquiry into a defined issue in some monarchies. They have been held in the United Kingdom, Australia, Canada, New Zealand, Norway, Malaysia, Mauritius and Saudi Arabia. In republics an equi ...

, 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

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References

*G Lockwood, 'Taff Vale and the Trade Disputes Act 1906' in KD Ewing ''The Right to Strike, Institute of Employment Rights'' (2006) 11-30 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 1901 in rail transport Railway case law

Facts

Judgment

Significance

See also

Notes

References