Introduction To Trade Unions

Trade unions are associations of workers or organization formed together by

labourers, workers or employees to achieve their demands for better
conditions at their work atmosphere. In some countries trade unions go by
the name labor unions as well. A Trade union, or labor union, is an
organization of workers who have joined together to achieve goals in areas
such as wages and working conditions. The union negotiates contracts and
conditions with employers, keeping employee satisfaction high and
protecting workers from unsafe or unfair working conditions.
These unions exist to deal with problems faced by laborers, these problems
may be of any nature such as those concerning the pay, unfair work rules,
working conditions, unfair labor practices, timings and so on. Trade Unions
help in regulating the relations between employers and labourers also liable
and responsible for maintaining discipline and among the workers, main
purpose is to see that proper relations are being maintained in between
management and workers and trade union may also take disciplinary action
against the workers who ever misbehaves, disturbed peace and harmony in
the workplace . All the communication that happens in between the
employer and the workforce generally takes place through the union .
Trade unions or labour unions are governed by the different law in different
countries, they should follow the procedure and mode of registration for
formation of the trade union according to the law of the country. Trade union
formed in accordance with the law of their country shall have the privileges
given by the law of trade union.

Definition of Trade Unions

Under the Trade Union Act of 1926, the term is defined as any combination,
whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workers and employers, or for imposing
restrictive conditions on the condition of any trade or business and includes
any federation of two or more unions. Let us examine the definition in parts.

Trade union is an association either of employees or employers or of

independent workers.
It is a relatively permanent formation of workers.
It is formed for securing certain economic (like better wages, better
working and living conditions), social benefits to members (such as
educational, recreational, medical, respect for individual) .

Objective of Trade Unions

Trade unions are formed to protect and promote the interests of their
members. Their primary function is to protect the interests of workers
against discrimination and unfair labor practices. Trade unions are formed to
achieve the following objectives:
Wages and Salaries :
The subject which drew the major attention of the trade unions is
wages and salaries. Of course, this item may be related to policy
matters. However, differences may arise in the process of their
implementation. In the case of unorganized sector the trade union
plays a crucial role in bargaining the pay scales.
Working Conditions:
Trade unions with a view to safeguard the health of workers demands
the management to provide all the basic facilities such as, lighting and
ventilation, sanitation, rest rooms, safety equipment while discharging
hazardous duties, drinking, refreshment, minimum working hours,
leave and rest, holidays with pay, job satisfaction, social security
benefits and other welfare measures.
Discipline:
Trade unions not only conduct negotiations in respect of the items with
which their working conditions may be improved but also protect the
workers from the clutches of management whenever workers become
the victims of managements unilateral acts and disciplinary policies.
This victimization may take the form of penal transfers, suspensions,
dismissals, etc. In such a situation the separated worker who is left in a
helpless condition may approach the trade union. Ultimately the
problem may be brought to the notice of management by the trade
union and it explains about the injustice met out to an individual
worker and fights the management for justice. Thus, the victimized
worker may be protected by the trade union.
Personnel Policies:
Trade unions may fight against improper implementation of personnel
policies in respect of recruitment, selection, promotions, transfers,
training, etc.

 Welfare:
As stated earlier, trade unions are meant for the welfare of workers.
Trade union works as a guide, consulting authority and cooperates in
overcoming the personnel problems of workers. It may bring to the
notice of management, through collective bargaining meetings, the
difficulties of workers in respect of sanitation, hospitals, quarters,
schools and colleges for their childrens cultural and social problems.
Employee-employer relation:
Harmonious relations between the employees and employer are a sine
quo non for industrial peace. A trade union always strives for achieving
this objective. However, the bureaucratic attitude and unilateral
thinking of management may lead to conflicts in the organization
which ultimately disrupt the relations between the workers and
management. Trade union, being the representative of all the workers,
may carry out continuous negotiations with the management with a
view to promote industrial peace.
Negotiating machinery:
Negotiations include the proposals made by one party and the counter
proposals of the other party. This process continues until the parties
reach an agreement. Thus, negotiations are based on give and take
principle. Trade union being a party for negotiations protects the
interests of workers through collective bargaining. Thus, the trade
union works as the negotiating machinery.
Safeguarding organizational health and the interest of the industry:
Organizational health can be diagnosed by methods evolved for
grievance redressal and techniques adopted to reduce the rate of
absenteeism and labour turnover and to improve the employee
relations. Trade unions by their effective working may achieve
employee satisfaction. Thus, trade unions help in reducing the rate of
absenteeism, labour turnover and developing systematic grievance
settlement procedures leading to harmonious industrial relations. Trade
unions can thus contribute to the improvements in level of production
and productivity, discipline and improve quality of work life.

Functions and Roles of Trade Unions

Trade unions perform a number of functions in order to achieve the

objectives. These functions can be broadly classified into three categories:

Protective or Militant Functions

Intra-mural Functions
Fraternal or Extra-mural Functions
Social Functions
Political Functions

Protective or Militant Functions

The aim of such activities is to ensure adequate wages, secure better
conditions of work and employment, get better treatment from employers,
etc. When the unions fail to accomplish these aims by the method of
collective bargaining and negotiations, they adopt an approach and put up a
fight with the management in the form of go-slow tactics, strike, boycott,
gherao, etc. Hence, these functions of the trade unions are known as
protective or militant functions. Thus, the protective or militant functions of
trade unions can be summed up as:
To achieve higher wages and better working conditions
To raise the status of workers as a part of industry
To protect labors against victimization and injustice
Intra-mural Activities
Intra-mural activities include those activities of the trade unions which are
carried on within the four walls of the organization for the welfare of the
members. These activities also include the efforts of the unions which
improve the employment and working conditions within the organization.
Such activities are: collective bargaining with the employer for better wages
and working conditions and for workers participation in management,
providing labour welfare activities, getting share in the profits of the
organization.

Fraternal / Extra-mural Functions

Trade unions try to build a spirit of cooperation and promote friendly
industrial relations among their members. They take up welfare measures for

improving the morale of workers and generate self confidence among them.
These welfare activities, which may be called fraternal functions, depend on
the availability of funds, which the unions raise by subscription from
members and donations from outsiders, and other some other means. Thus,
the fraternal functions of trade unions can be summed up as:
To take up welfare measures for improving the morale of
workers
(e.g. school for the education of children, library, reading-rooms, indoor and out-door games, and other recreational facilities.)
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination
To arrange for legal assistance to its members
Social and Ancillary Functions
Besides the main economic functions consisting basically of organizing
unions and improving their terms and conditions of employment to enable
workers to meet their physical needs, some unions have now started
undertaking and organizing social welfare activities and also providing
variety of services to their members and sometimes to the community of
which they are a part, which may be grouped under following heads:
Welfare activities provided to improve the quality of work life including
organization of cooperative credit societies for providing housing,
cooperative stores, cultural programmes , banking and medical
facilities and training for women in various crafts to help them to
supplement their family income.
Education: Education of members in all aspects of their working life
including improving their civic life, awareness in the environment
around them, enhancement of their knowledge particularly in regard to
issues that concern them, their statutory and other rights and
responsibilities, workers participation in management.
Scheme and procedure for redressing their grievances. Some central
union organizations are also assisting the Government in implementing
the Workers Education Scheme.
Publication of periodicals, newsletters or magazines for establishing
communication with their members, making the latter aware of union
policy and stand on certain principal issues and personnel matters

concerning members, such as births, deaths, marriages, promotion and

achievements.
Research: Of late, this is gaining importance and is intended mainly to
provide updated information to union negotiators at the bargaining
table. Such research is to be more practical than academic, concerning
problems relating to day-today affairs of the union and its activities
and union and management relations. Some of the research activities
are : (i) collection and analysis of wage data including fringe benefits,
and other benefits and services through surveys of comparative
practices, data on working conditions and welfare activities; (ii)
preparation of background notes for court cases and also position
papers for union officials; (iii) collection and analysis of macro data
relating to the economy, industry sectors etc. All the above mentioned
activities and services are considered normal activities of unions in the
Trade Unions Act which helps the union to take the decisions which are
best for the union.

Political Functions
These functions include affiliating the union with a political party, helping the
political party in enrolling members, collecting donations, seeking the help of
political parties during the periods of strikes and lockouts. Trade unions play
a very important role in the politics of the country , they also try to send their
representative to the legislative assembly and parliament through general
elections so that they may safeguard their own interest . Some of the
politically affiliated central Trade Unions are:
All India Central Council of Trade Unions (Communist Party of India
(Marxist-Leninist) Liberation)
All India Trade Union Congress (Communist Party of India)
Bharatiya Mazdoor Sangh (Rashtriya Swayamsevak Sangh, indirectly
Bharatiya Janata Party)
Centre of Indian Trade Unions (Communist Party of India (Marxist))
Indian National Trade Union Congress (Indian National Congress)
Labour Progressive Federation (Dravida Munnetra Kazhagam)
Trade Union Coordination Committee (All India Forward Bloc)
United Trade Union Congress (Revolutionary Socialist Party)

Trade Unions also perform various roles regarding the various classes of the
society such as

Role
Role
Role
Role

towards
towards
towards
towards

the trade union member .

the industrial organization .
the Trade Union Organization .
Society .

Roles of Trade Union towards union member :

Improve working Conditions
Trade unions play a major role in improving the working and living
conditions and to represent workers' interests in various fore.

Acquisition of better wages.

Trade unions play a major role in improving and providing the better
wages for the employees depending on the type of work they have. This is
very important since they would give them greater opportunities to supply
their needs since they are earning better wages.

Accessibility To Benefits
Trade unions play a major role in providing the workers all their working
benefits also make the workers aware about their rights and duties , and
settle the disputes through negotiations . This may include medical
benefits and all others that is suited and really intended for them.

Securing Jobs
As part of the labor union, people are assured that their job would be secured
whatever happens. This is very important since labor union are really making
their best in order to make sure that all the people are given the chance to
land for a permanent job .

To guarantee a fair deal and social justice to workers .

To take up welfare measures for improving the morale of workers .

To enlarge opportunities for promotion and training.

Role of Trade Unions towards the industrial organization:

Simpler Negotiations
For an Employer one of the major role trade union plays is that it
simplifies the negotiations process. When you deal with a labor union,
you do not have to negotiate with multiple employees. You simply talk

to the head of the labor union and the head of the union speaks for the
entire workforce. By doing this, you can negotiate faster and more
efficiently without having to worry about meeting with many different
employees.
Higher Employee Productivity
Labor unions play a major role in improving the productivity of the
employees. When employer deals with Unions they better understand
the needs of the employees. When they meet the needs of the
employees better, they will be more satisfied in their jobs and will be
willing to work harder for their employers. This could lead to higher
productivity and better quality production.
Easier to Make Changes
When a business has a labor union to work with, they can partner
together to facilitate change easier. When the employer knows that
change is required, it can disseminate this information to the
leadership of the union and the union can then pass the information
along to the employees. When everyone is on the same page, it
improves the chances of the company getting through the change .
Helps in maintenance of discipline.
Trade union plays an important role in maintaining the Harmonic
relation between the workers and management.
Role of Trade Unions towards the Trade Union Organization:
Publication of periodicals, newsletters or magazines for establishing
communication with their members, making the latter aware of union
policy and stand on certain principal issues .
Perform Research Activities :
Some of the research activities performed are :
(i)
collection and analysis of wage data including fringe benefits,
and other benefits and services through surveys of comparative
practices, data on working conditions and welfare activities;
(ii)
Preparation of background notes for court cases and also position
papers for union officials;
(iii)
Collection and analysis of macro data relating to the economy,
industry sectors etc. All the above mentioned activities and
services are considered normal activities of unions in the Trade

Unions Act which helps the union to take the decisions which are
best for the union.
To train members to assume the leadership positions.
Manage trade union financials (funds collections and spending).

Role of Trade Unions towards the Society:

To enable unorganized sector to organize itself .
Trade unions form part of society and relate to the national
integration . Helps in encouraging and preserving national integration
through the minimization of industrial conflicts.
Incorporating a sense of corporate social responsibility (CSR) in
workers
To actively participate in the development and effective
implementation of the programs of national development such as
family planning , imparting education , developing skills and other
social activities for the betterment of society .