LECTURE-10

TRADE UNIONS

Dr. V C Pandey
Meaning
 Trade Union" means any combination, whether
temporary or permanent, formed primarily for
the purpose of regulating the relations between
workmen and employers or between workmen
and workmen, or between employers and
employers, or for imposing restrictive conditions
on the conduct of any trade or business
Trade union
 Formed to protect and promote the interests of
their members
 Primary function is to protect the interests of
workers against discrimination and unfair labor
practices

Features
 TU may be an association either of the employers
or employees or of independent workers
 TU are relatively permanent combinations of
workers are not temporary or casual
 TU is an association of workers who are engaged
in securing economic benefits for their members
 Character of trade unions has been constantly
changing.
 Origin and growth of trade unions have been
influenced by a number of ideologies
 Trade Unions
Objectives:
 Providing income security
 Preserving physical security
 Providing emotional security
 Maintaining job security
 Providing social security
 Procuring political powers
 Representation (Workers’ Interests)
 Negotiation (Collective Bargaining)
 Voice in decisions (Lay off, Retrenchment) affecting workers
 Member Service (Education, Training, Welfare, Discounts,
Loans)
Function of TU
Functions:

  Militant functions
(a) To achieve higher wages and better working
conditions
(b) To raise the status of workers as a part of
industry
(c) To protect labors against victimization and
injustice
Fraternal functions
 To take up welfare measures for improving the
morale of workers
 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
Importance of Trade Unions
 For industrial peace
 Decisions taken through the process of collective
bargaining and negotiations between employer and
unions are more influential
 Effective communication between the workers and
the management
 Economic development
 Recruitment & selection
 Discipline among workforce
 Settlement of ID in rational manner
Reasons for Joining Trade
Unions
 Greater Bargaining Power
 Minimize Discrimination
 Sense of Security
 Sense of Participation
 Sense of Belongingness
 Platform for self expression
 Betterment of relationships
Purpose of Trade Unions
 Employment Protection and Job Creation.
 Economic Protection.
 Social Status - Identity.
 Political Role - Democratic Institution
 Societal Obligation - Transformation.
 Competitiveness / Sustainable Development.
Why do people join Union?

 Greater Bargaining Power

 Minimize Discrimination
 Sense of Security
 Sense of Participation
 Sense of Belongingness
 Platform for self expression
 Betterment of relationships
SPECIFIC FUNCTIONS OF
UNIONS
 Wage & salary bargaining
 Fight for continuous improvement in employee
benefits
 Improving working conditions at work place
 Improving welfare, healthcare & recreation
facilities, and leisure at workplace
 Increasing rest periods, holidays, paid leave and
time-offs
SPECIFIC FUNCTIONS OF
UNIONS
 Decreasing working hours, work load esp. manual,
and hazardous working conditions
 Improving career and salary rise prospects & job
security
 Protecting employees against arbitrary / unjust
actions of Management
Types and structure of TU
 Reformist union – preservation of the capitalist
economy and maintenance of competitive
production
 Revolutionary union –aims at destroying the
capitalistic system, abolish private property and
installing socialist or communist society.
 Craft union - employees belonging to the same
craft, occupation or specialization
 General unions - workers of any industry, any
region and of any job or occupation
Types and structure of TU
 Industrial union – if the workers of different
categories form into a union
 Staff unions – it consist of both craft and
industrial unions
Theories of TU
 Revolutionary theory – marx
 Non – revolutionary theory – webbs theroy
 Slitcher theory
 Coles theory of union control of industry
 Commons environment theory
 Mitchells economic protection theory
 Simons theory (Monopolistic and Anti-democratic
TUs)
 Hoxies theory (satisfy – human wants and needs.)
Policy of TU
 The fundamental principle of TU is to protect the
employment interest of union members, as
individual workers by dealing with employers
collectively.
 Union policy
 Employer policy
Influence of TU on HRM
 Bargaining power in the collective bargaining
process.
 Determining welfare measures, wages and salary,
health and safety of employees.
 Declining trend in TU – is attributed to effective
HR practices.
Major Trade Union Organizations
 AITUC (All India Trade Union Congress)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Sabha
 All India Council of Central Trade Unions
 All India United Trade Union Centre
 United Trade Union Centre
 All India federations of banks, insurance, railways,
defence, telecom, airline and airports.
 Centre of Indian Trade Unions -president M.K. Pandhe
 Trade Union Movement in the
early years
 Bombay Mill Hands Association was followed by:

The The
Amalgamat Madras and The Kamgar
Printer’s
ed society Calcutta Hitwardhak
Union of
of railway Postal Sabha 1910
Calcutta,
Servants Union, 1907
1905
in India,
1897
Indian trade union movement in
India
Indian trade union movement can be divided into
three phases.

* The first phase (1850 to1900)

* The second phase (1900 to 1946)
* The third phase (in 1947).
Emergence and Development of TU
 First cotton mill in India was established in 1851 in
Bombay and the first jute mill in 1855 in Bengal
 First Factory Commission was appointed in Bombay in the
year 1875
 First Factories Act was passed in 1881
 Was dissapaointing
 Second Factory Commission was appointed in 1884
 Mr. Lokhandey organised a conference of workers in
Bombay and drew up a memorandum signed by some 5,300
to present to the Commission
 This was the first organized effort by workers in India
 However, no roll or membership, no funds and no rules.
Emergence and Development of TU
Contd.
 Printers’ Union, Calcutta - 1905
 Kamgar Hitwardhak Sabha - 1910
 Social Service League – 1910
 The amalgamated societyof railway servants of
India and Burma
 Were essentially labour welfare organisations and
may hardly be regarded as modern trade unions
 Marjory called as Social welfare period
TRADE UNION ACT 1926
 • Trade Union Act is a regulation that offers the
scheme of registration of the Trade Union.
 Note: This Act also defines the rules and
regulations in reference to Trade Unions
REGISTRATION OF TRADE UNION IN INDIA

 Normally, Registration of Trade Union is not a

mandatory, but it is suggestable because a
registered Trade Union enjoys certain rights and
privileges according to the Act.
 LEGAL STATUS OF REGISTERED TRADE
UNION

 • It is a body corporate with perpetual succession

and a common seal.
 • It can acquire, hold, sell or transfer any movable
or immovable property and can be a party to
contracts.
 • It can sue and be sue in its own name.
 • No civil suit or other legal proceedings can be
initiated against a registered trade union in respect
of any act done in furtherance of a trade dispute
under certain conditions.
DISSOLUTIONS OF TRADE UNION

 For the dissolution of a registered trade union, a

written notice of dissolution signed by any seven
members and the secretary of the union need to be
sent to the registrar within 14 days of the
dissolution.
 • After receiving the written notice, the registrar
satisfies then he shall register the notice and the
union shall stand dissolved from the date.
 REQUIREMENTS OF REGISTRATION OF
TRADE UNION
 To get registered a trade union, minimum 7 workers of the
establishment required.
 • The application for registration should be in the
prescribed form, a copy of the rules of the union signed by
at least 7 members and a statement carrying the following
information
  The names, addresses and occupation of the members
making the application.
  The name of the Trade Union and the address of its
head office.
  The titles, names, ages, addresses and occupations of its
office bearers
Present Central Trade Union Organizations
 All India Trade Union Congress (AITUC)
 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Kisan Panchayat (HMKP)
 Hind Mazdoor Sabha (HMS)
 Indian Federation of Free Trade Unions (IFFTU)
 Indian National Trade Union Congress (INTUC)
 National Front of Indian Trade Unions (NFITU)
 National Labor Organization (NLO)
 Trade Unions Co-ordination Centre (TUCC)
 United Trade Union Congress (UTUC)
 United Trade Union Congress - Lenin Sarani (UTUC - LS)
Some Figures of Trade Unions
Problems for Trade Union Growth
 Off-Centering Labour
 Segmentation of Workforce
 Core / Periphery
 Employment Instability
 Investment Attraction
 Individualisation of Labour Relations
 Labour Cost Cutting
 Leadership Credibility/ Inside vs. Outside leadership
 Failure of Institutions
 Emergence of Non-union firms/ E-union/ Cyber-union
Measures to strengthen TU
 Micro to macro focus
 Bargaining sharing
 Grooming trade union leadership
 Conflict to collaboration
 Developmental role
 Openness and transparency
 Effective utilization of alternative forums.
Strength of TU movement in
India
 Funds were available
 Awareness among trade union leaders – about
importance on TU
 Trade union act 1926
 Globalization and economic integration in India
 Increase of workforce
 Implementation of international labour standards
 Advancement of IT
WEAKNESES OF TU’s IN INDIA
 • Small Size of Trade Unions
 • Limited Membership
 • Outside Leadership
 • Low Income
 • Illiteracy
 • Migratory
 • Multiple Unions
 • Political Influence
 • Lack of Unity
 • Instability of Trade Unions
Weakness of TU
 Limited membership
 Small size of labour union
 Small funds
 attitude of the workers is not positive towards
TU
 Low wages
 Job through the contractors
 Illiteracy
Infrastructure that guide and
direct IR
 Extent of industrial concentration
 Degree of product differentiation and
specialization
 Complexity of technical and organization structure