Trade Unions

Theories and trade unionism in India

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 Types of Unions: Classification
based on trade

Craft unions
– Unions that represent skilled craft workers e.g.
journalists, weavers, teachers, engineers etc.
Industrial unions
– Unions that represent all workers—skilled, semiskilled,
unskilled—employed along industry lines
Employee associations
– Labor organizations that represent various groups of
professional and white-collar employees in labor-
management relations.
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 White collar workers association

 White collared workers are registered under

the Trade unions’ act or the Societies
Registration Act
 So known as employees’ union or employee
or staff associations
 Suffer much less from multiplicity,
politicalisation and outside leadership.

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 Employers’ organisations/ association

 Formation of ILO had provided an expliit rationale for the

formation of employers’ asssociation. According to the ILO
constitution, the government had to send employers’ and
workers’ delegates and advisors, in agreement with the
industrial organisations which are most representative.
 While the trade unions acted speedily and formed the AITUC
in 1920.efforts to set up employers’ association took some
time.
 Later on led to the formation of All india Organisation of
employers and Employers’ federstion of India. Later in 1956,
a superstructure called council of Indian Employers was
formed bringing both AIOE ana EFI under one umbrella.

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 New roles of EOs
 Lobbying/ awareness creation
 Training consultancy services
 Information dissemination/ publication/ experience
sharing
 Legal advice/ assistance
 Other services, if any as per requirement
 Eos can be registered under The Trade Union Act,
the Indian Companies Act or the Societies Act.
 http://www.ioe-emp.org/en/about-us/index.html
 http://www.efionline.in/strategic_alliances.html

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 Types of Unions: Classification based on
representation

Qualified union
– Unions having at least 5% of membership of total
employees
Primary Unions
– Having membership of at least 15% of the employees
in an undertaking
Representative Union
– Having a membership of not less than 25% of the total
employees as members in an undertaking

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 Theories of trade unions

 Revolutionary theory
– Propounded by Marx and Hegels
– According to it instruments of production must belong to
workers.
– TU are preparations for a revolution in which capitalists
must be destroyed.
– Workers must take over industry and government.
– But events in USSR could not lend support to the theory

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 Industrial Democracy theory

 Put forth by Sidney and Beatrice Webb.

 It suggests democracy in industry as in
government.
 It suggests that through Unions, the workers
protect themselves from the power and
influence of owners.
 All rules and regulations are developed in order
to protect the rights of the Labour.

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 Business theory

 Put forth by Samuel Gompers

 Emphasised that the primary objective of the unions was to
protect the economic interest of the workers.
 Gompers viewed unions as the labor's collective voice in
the industrial world. He wanted to partner with business to
promote higher wages (and higher profits).
 Gompers viewed unions as the labor component of a
business operation, neither superior nor inferior to the
management component, but just as essential.
 This theory opposes the revolutionary theory.

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 Socio-Psychological theory

 According to this theory, workers join

union to meet their socio-psychological
needs like physiological, security,
companionship etc.

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 Change theory

 As per Selig Perlman, the objectives of labour movement

changes from time to time.
 Though he did emphasize upon union being based upon
scarcity consciousness.
 Hence no simple theory can explain union and labour
relations.
 Perlman explains the state of labor movement according
to three factors:
1. The resistance power of capitalism,
2. The role and influence of the intellectual and
3. The maturity of the home grown trade union movement.

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 Evolution: Phase I – 1850-1900

 The first phase falls between 1850 and 1900 during which the inception of trade
unions took place.
 During this period of the growth of Indian Capitalist enterprises, the working and living
conditions of the labour were poor and their working hours were long. Their wages
were low and general economic conditions were poor in industries.
 Guided by educated philanthropists and social workers like Mr.N.K. Lokhande, the
growth of trade union movement was slow in this phase. Many strikes took place in
the two decades following 1880 in all industrial cities.
 These strikes taught workers to understand the power of united action even though
there was no union in real terms. Small associations like Bombay Mill-Hands
Association came up which is known as the first TU in India.

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 Phase-II 1900-1947 (Growth Phase)

 1900-1910: following TU were formed

 Printers union in Calcutta in 1905
 Postal union in Madras and Calcutta in 1907
 Kamgaar Hitwardhak Sabha in 1910
 These were basically welfare organisations with
a touch of unionism

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 Phase II—contd…

 1914-1918- 1st world war: The World War I and the

intensification of Indian Independence struggle assisted the
growth of Indian trade union movement.
 1917-Russian revolution The Russian revolution and the
communist government formation in Russia consolidated the
workers movement all over the world.
 1919- formation of ILO- this consolidated the workers’ rights
and gave international recognition and respectability to trade
unionism

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 Phase II-contd..

 1920- AITUC- was formed with the fusion of 107 unions in

1920
 In 1920, first Trade Disputes Act was passed indirectly
stifling or making unions illegal
 Subsequent industrial unrest and the international
pressures exerted through ILO led to Factories Act in 1922,
Indian Mines Act 1923, Workmen’s Compensation 1923
were enacted.
– Lastly Indian Trade Union Act was passed in 1926
 Split in trade union movement

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 Phase III- 1947--- and on

 The third phase began with the emergence of independent India (in 1947),
and the Government sought the cooperation of the unions for planned
economic development.
 The working class movement was also politicized along the lines of political
parties. For instance Indian national trade Union Congress (INTUC) is the
trade union arm of the Congress Party. The AITUC is the trade union arm of
the Communist Party of India. Besides workers, white-collar employees,
supervisors and managers are also organized by the trade unions, as for
example in the Banking, Insurance and Petroleum industries.
 A large number of Labour legislations were passed.
 Formation of the TU in the lines of politicl parties also started.

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 The post-independence period has been important for the trade union
movement in India. The most important factors being:

 The constant inflow of outside and international influences;

 The pressure of trade union rivalries, often based on political or ideological differences;

 Government’s Industrial Relations Policy with its provision for compulsory adjudication
machinery;

 The enactment of labour laws conferring special privileges on registered trade unions;

 Desire of workers to unite for safeguarding their interest especially to face harder conditions
for labour such as retrenchment, lay-off, etc.;

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 Present Scenario of the Trade Union Movement

 The Indian trade unions have come to stay now not as ad hoc bodies or
strike committees but as permanent features of the industrial society.

 The unions succeeded in organizing Central Union Federations which help

in the determination of principles, philosophy, ideology and purposes of the
unions and give some sense of direction to the otherwise scattered and
isolated large number of unions.

 The unions have achieved a remarkable status where their voices are heard
by the government and the employers; they are consulted on matters
pertaining to improvement in conditions of work health and safety, job
security, wages, productivity, all matters concerning the interests of labour.

 The trade union rivalries have become sharper in free India. The splitting up
of unions and formation of new unions having sympathies with political
parties have permitted unions operating at different levels.

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