CHANCHAL CHAUDHARY

SEM III
 INTRODUCTION
 EVOLUTION OF TRADE UNION IN INDIA
 FEATURES
 OBJECTIVES
 FUNCTIONS
 REASONS FOR JOINING TRADE UNION
 STRUCTURE OF TRADE UNION
 PROBLEMS AND WEAKNESSES FACED BY

TRADE UNIONS
Section 2(h) of the Trade Unions Act, 1926 has
defined a trade union as
“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, and includes any federation of two
or more trade unions.”
 CONT.
Trade union is an association either of
employees or employers or of independent
workers.

It is a relatively permanent formation of

workers. It is not a temporary or casual
combination of workers.

It is formed for securing certain economic,

social benefits to members.
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions
(IFFTU)
7. Indian National Trade Union Congress
(INTUC)
8. National Front of Indian Trade Unions
(NFITU)
9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin
Sarani (UTUC - LS)
 It is an organization formed by employees or
workers.
 It is formed on a continuous basis. It is a
permanent body and not a casual or
temporary one.
 It is formed to protect and promote all kinds
of interests –economic, political and social-of
its members. The dominant interest with
which a union is concerned is, however,
economic.
 It achieves its objectives through collective
action and group effort
 Emergence of TU in India can be defined in
three phases:

 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 labor were poor
and their working hours were long.
 Capitalists were only interested in their
productivity and profitability. In addition to
long working hours, their wages were low and
general economic conditions were poor in
industries. In order to regulate the working
hours and other service conditions of the
Indian textile labourers, the Indian Factories
Act was enacted in 1881
 As a result, employment of child labour was

prohibited. Mr. N M Lokhande organized

people like Rickshawalas etc., prepared a
study report on their working conditions and
submitted it to the Factory Labour
Commission.
 The Indian Factory Act of 1881 was amended
in 1891 due to his efforts. Guided by
educated philanthropists(generous donors)
and social workers like Mr. 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.
 The second phase of The Indian trade union
movement falls between 1900 and 1947. this
phase was characterized by the development
of organized trade unions and political
movements of the working class. It also
witnessed the emergence of militant trade
unionism.
 The First World War (1914-1918) and the

Russian revolution of 1917 gave a new turn

to the Indian trade union movement and
organized efforts on part of the workers to
form trade unions.
 In 1918, B P Wadia organized trade union

movements with Textile mills in Madras.

 He served strike notice to them and workers
appealed to Madras High Court because
under ‘Common Law’, strike is a breach of
law.
 In 1919, Mahatma Gandhi suggested to let

individual struggle be a Mass movement. In

1920, the First National Trade union
organization (The All India Trade Union
Congress (AITUC)) was established. Many of
the leaders of this organization were leaders
of the national Movement. In 1926, Trade
union law came up with the efforts of Mr. N N
Joshi that became operative from 1927.
 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.
 Wages salaries
 Working conditions
 Discipline
 Personnel policies
 Welfare
 Employee-employer relation
 Negotiating machinery
 Safeguarding organizational health and
interest of the industry
 CONT.
 EDUCATION AND TRAINING.
 LEGAL ASSISTANCE.
 FINANCIAL DISCOUNTS.
 WELFARE BENEFITS.
 Functions of trade union can be broadly
classified into :
 MILITANT FUNCTIONS.
 FRATERNAL FUNCTIONS.
 One set of activities performed by trade unions
leads to the betterment of the position of their
members in relation to their employment. 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
militant or fighting functions. Thus, the militant
functions of trade unions can be summed up as:
 CONT
 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
 Another set of activities performed by trade
unions aims at rendering help to its members
in times of need, and improving their
efficiency. Trade unions try to foster a spirit
of cooperation and promote friendly
industrial relations and diffuse education and
culture among their members. Thus, the
fraternal functions of trade unions can be
summed up as:
 CONT.
 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
 GREATER BARGAINING POWER
 MINIMIZE DISCRIMINATION
 SENSE OF SECURITY
 SENSE OF PARTICIPATION
 SENSE OF BELONGINGNESS
 PLATFORM FOR SELF EXPRESSION
 BETTERMENT OF RELATIONSHIP
 GREATER BARGAINING POWER

The individual employee possesses very

little bargaining power as compared to that
of his employer. If he is not satisfied with
the wage and other conditions of
employment, he can leave the job. It is not
practicable to continually resign from one
job after another when he is dissatisfied.
This imposes a great financial and
emotional burden upon the worker. The
better course for him is to join a union that
can take concerted action against the
employer. The threat or actuality of a strike
by a union is a powerful tool that often
causes the employer to accept the demands
of the workers for better conditions of
employment.
 MINIMIZE DISCRIMINATION

The decisions regarding pay, work,

transfer, promotion, etc. are highly
subjective in nature. The personal
relationships existing between the
supervisor and each of his subordinates
may influence the management. Thus, there
are chances of favoritisms and
discriminations. A trade union can compel
the management to formulate personnel
policies that press for equality of treatment
to the workers. All the labor decisions of
the management are under close scrutiny of
the labor union. This has the effect of
minimizing favoritism and discrimination.
 SENSE OF SECURITY

The employees may join the unions

because of their belief that it is an effective
way to secure adequate protection from
various types of hazards and income
insecurity such as accident, injury, illness,
unemployment, etc. The trade union secure
retirement benefits of the workers and
compel the management to invest in welfare
services for the benefit of the workers.
 SENSE OF PARTICIPATION

The employees can participate in

management of matters affecting their
interests only if they join trade unions. They
can influence the decisions that are taken as
a result of collective bargaining between the
union and the management.
 SENSE OF BELONGINGNESS

Many employees join a union because their

co-workers are the members of the union.
At times, an employee joins a union under
group pressure; if he does not, he often has
a very difficult time at work. On the other
hand, those who are members of a union
feel that they gain respect in the eyes of
their fellow workers. They can also discuss
their problem with’ the trade union leaders.
 PLATFORM FOR SELF EXPRESSION
The desire for self-expression is a
fundamental human drive for most people. All
of us wish to share our feelings, ideas and
opinions with others. Similarly the workers also
want the management to listen to them. A
trade union provides such a forum where the
feelings, ideas and opinions of the workers
could be discussed. It can also transmit the
feelings, ideas, opinions and complaints of the
workers to the management. The collective
voice of the workers is heard by the
management and give due consideration while
taking policy decisions by the management.
 BETTERMENT OF RELATIONSHIP

Another reason for employees joining

unions is that employees feel that unions
can fulfill the important need for adequate
machinery for proper maintenance of
employer-employee relations. Unions help
in betterment of industrial relations among
management and workers by solving the
problems peacefully.
 Plant level Unions: The first level in the
structure from below is the plant level union.
This comprises the unions in one
organization or factory. Only seven members
are required to form a union. This has lead to
multiple unions in one factory.
 Local Level federations. This is the second
level in the structure from below. The local
trade union federation holds together the
plant level unions at the local level in a
particular craft and industry. These local level
federations might be affiliated to either some
regional level or national level federation or
these may be independent.
 CONT.
 Regional level federations. These are the
organizations of all the constituent unions in
a particular state or region.
 National federations. These are national level
bodies to which plant level unions, local
unions or regional level unions may get
affiliated. These are the apex bodies at the
top of the structure. They act as coordinating
bodies. These national federations may have
their own regional or state level coordinating
bodies to which the plant level unions may
get affiliated.
 Uneven Growth. The trade unionism in India is
characterized by uneven growth, both industry-wise
and area-wise. Trade unions are popular in big
industries and the degree of unionization varies
widely from industry to industry. Besides, trade union
activities are concentrated in a few states and in
bigger industrial centers mainly due to concentration
of industries in those places.
 Limited Membership. The number of trade unions in
India has increased considerably. But this has been
followed by the declining membership per union.
 Multiplicity of Unions. There exist several trade
unions in the same establishment. The law permits
and gives sanctity to small unions. Any seven persons
can form a union under the Trade Unions Act, 1926.
This Act confers rights on such a union. It is allowed
under the Act to raise disputes, file suits, go to
conciliation and even bargain with employers.
Therefore, small sections of workers are encouraged
to form separate Unions. There is no restriction on
the number of unions to be registered in one
establishment.
 CONT.
Outside Leadership. Trade unions in India are led
largely by people who themselves are not workers.
These outsiders are politicians, intellectuals and
professionals having no experience of work in
industry. Outsiders continue to dominate the trade
unions to advance their personal interests.
Financial Problems. The financial position of the trade
unions is weak because their average yearly income is
very low and inadequate. The subscription rates are
very low. Under conditions of multiplicity of unions, a
union interested in increasing its membership figures
keeps the subscription rate unduly low. As a result,
the funds with the unions are inadequate and they
cannot undertake welfare programs for their
members. Another reason for the weak financial
position of union is that large amounts of
subscription dues remain unpaid by the workers.
Besides this, unions do not have proper staff and
organization to collect subscriptions.
 Indifferent Attitude of Workers. In India, a
large number of workers have not joined any
union. Moreover, all the members of the
trade unions do not show interest in their
affairs. The attendance at the general
meetings of the unions is very low. Under
such circumstance, trade unionism cannot be
expected to make much progress.
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