Trade Union

1. Definition

Section 2(h) of the Trade Unions Act 1926 defines Trade Union as a combination, temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen and
employer, workmen and workmen, or employers and employers, or for imposing restrictive
condition on the conduct of any trade or business, and includes the federation of two or more trade
unions.

It is the object of the association or combination that determines whether it is a trade union or not.
A society or authors, publishers, and other owners of copyright meant to protect their copyright in
music and songs, was held NOT to be a Trade Union by the House of Lords.
In the case of Tamil Nadu NGO Union vs Registrar, Trade Unions, AIR 1962, Madras
HC held that Tamil Nadu NGO Union, which was an association of sub magistrates of the
judiciary, tahsildars, etc., was not a trade union because these people were engaged in sovereign
and regal functions of the State.

In the case of GTRTCS and Officer's Association, Bangalore and others vs Asst. Labor
Commissioner and anothers AIR 2002, Kar. HC held that the definition of workmen for the
purpose of Trade Unions is a lot wider than in other acts and that the emphasis is on the purpose of
the association rather than the type of workers and so it is a valid Trade Union.

The registration of a trade union is not necessary. However, upon registration, a trade union gets
several benefits including some immunities that are not available to an unregistered Trade
Union. In the case of Workers of B and C Co vs Labor Commissioner, AIR 1964 Mad it was
held that a Trade Union can raise or sponsor a trade dispute and represent on behalf of its members
in legal proceedings arising out of a trade dispute.

Section 13 specifies that upon registration, a trade union gets a legal entity status, due to which it

has perpetual succession and a common seal.

can acquire and hold movable as well as immovable properties.
can contract through agents.
can sue and can be sued.

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 2. History of Trade Union Movement in India

The Trade Union Movement in our country has passed through the similar conditions after
the advent of factory system in India. It would be desirable to know how the factory system
came in our country, with all its evils and problems.

The first Cotton Mill in India was established in 1851 in Bombay and the first Jute Mill
in 1855 in Bengal. This was the beginning of the modern factory system in India. After 1851
and 1855, the number of factories began to increase both in Bombay and Bengal. The modern
factory system brought in its wake employment of women and children, long and
excessive hours of work, undermining of morality, lack of education, poor housing and an
excessively high death rate. Prof. S. N. Dhyani has observed that the year 1875 was
landmark in the history of trade union movement. For the first time in India factory
workers united together for securing better working conditions in the factories. The
growing consciousness of a common cause for amelioration brought the working class closer
despite several hindrances. The Secretary of State for India was kept informed of all these evils
of the modern factory system and the first Factory Commission was appointed in Bombay in
the year 1875 and the first Factories Act was passed in 1881.

The 1881 Act proved highly inadequate and its provisions regarding protection to child
labour and absence of any regulation for women labour were highly disappointing.
Consequently, another 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 workers to be presented to the Factory Commission. This was the beginning of
modern Trade Union Movement in India. The Memorandum submitted and adopted at
this meeting demanded a weekly rest, half an hour's recess, compensation for disablement,
payment of wages not later than 15th of the month following the one in which they were
earned, limitation on hours of work from 6.30 A.M. till sun-set.

Period prior to First World War (1875 1917):

The trade union movement developed in India as a response to the challenges faced by the
working class as a consequence of industrial development. The history of organized trade
union movement in India which was begun eight decades ago has been in contrast to the
modern trade unionism in Great Britain which began during 18th century as a consequence
of decay of the modern medieval system of structuring wage system.

It can be said that in India the trade union movement had begun very late because of slow
progress of industrialization, the problems arising out of illiteracy and poverty of the
workers, their migratory habits and predominantly all the workers depending on
agriculture only. The process of industrialization commenced in India much later than that in
Europe and America. It was not before the 1920s that industrialization could make
considerable progress in India. The trade union movement, therefore, can be said that it is
of recent origin of industrialization. The germs of trade unionism could be traced in the
early days of industrialization at the beginning of 1850s with the establishment of Cotton
and Jute Mills in Bombay and Calcutta in 1851.

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In India, living and working conditions of the workers were deplorable and there was a
wide spread discontentment among the workers arising out of their efforts to mitigate or
remove the evils of industrialization provided the major task for trade unionism to take root.

The main elements in the development of trade unions of workers (Unions) in every country
have been more or less the same. The setting up of large scale industrial units created
conditions of wide spread of machinery, the establishment of new lines of production,
the changes in working and living environment of workers and concentration of industries in
large towns, all of which introduced a new class of workers who were dependent on wage
for their livelihood. They were at a disadvantage in an age when doctrine of laissez faire
held the field. In the absence of collective action, they had to be content with the wages which
each one of them could separately negotiate with employer from a position of
disadvantage. Protest by individual workers could have no effect in such circumstances,
because of a plentiful supply of labour.

The Period between Two World Wars 1918 1946:

During the first quarter of 20th century the emergence of trade union freedom had become one of
the most powerful and challenging problems of Indian social and economical institutions.
There emerged two fold objectivesone to provide militant force to national movement and the
other to protect the general interest of the workers during the year 1919-1920.

Many Unions started in Bombay, Madras, Punjab and Bengal were inspired. The
railway workers and seamen also worked for strengthening their existing union and led for
the establishment of new unions. Since 1919 the Indian Trade Union Congress began to take
interest in trade union movement. It is significant to mention here that the trade union movement
thus became an integral part of freedom movement though the main objective was to use
trade union as a weapon to fight against the British Government, yet it did also some
constructive activities for labour movement in the beginning. At the end of First World
War, there was a rapid progress in the field of trade unionism in India. In the post war period the
trade union movement got a fresh stimulus on account of economic and social unrest. According to
the Punekar in his book trade union movement in India compiled by V.P. Singh in Industrial
Labour in India observedthat the period immediately after the war revealed the
expectation of the people for a new social order, higher wages to keep pace with rising prices of
profits and lastly the political aspiration and agitation to gain freedom. The first factor
provided the goal, the second intense fight and third supplying, willing and active leaders.

Trade unions are organizations of workers formed to protect the rights and interests of workers
through collective action. In India, the first quarter of the 20th century gave the birth of the trade
union movement. A series of strikes were declared in India in the twenties. The success of most of
these strikes led to the organization of many unions.

In 1920, the All India Trade Union Congress (AITUC) was set up. In 1926, the Trade Unions Act
was passed which gave a legal status to the registered trade unions.

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Subsequently many trade unions were formed such as:

Indian National Trade Union Congress (INTUC),

Centre of Indian Trade Unions (CITU),
Hind Mazdoor Sabha (HMS),
Bharatiya Mazdoor Sangha (BMS),
United Trade Union Congress (UTUC), and
National Federation of Independent Trade Unions (NFITU).

3. Growth of Trade Unions in India

It was not until the close of First World War, that the modern trade Union movement really took
permanent roots in Indian Soil.

The establishment of Bombay Mill Hands Association is considered as the first phase of the trade
union movement in India. In 1905, the Printers Association of Calcutta and Dock Union Board in
Bombay were formed.

There was labor unrest in India at the end of the First World War. In several industries, the
workers went on strikes to secure wage increases. The Russian Revolution and the Industrial Labor
Organization have inspired the Indian laborers to launch trade unions like the Spinners Union and
Weavers Union which had been established in Madras and Ahmedabad respectively.

But the important step in the history of Indian trade unionism was the foundation of All India
Trade Union Congress in 1920. There had been a steady progress of trade union movement in
India. However, the decision of the Madras High Court that the formation of trade union is illegal
stood in the way of its development.

In 1926, the Trade Unions Act was enacted to give legal recognition to the different trade unions.
The said Act also .conferred certain privileges on the registered trade unions in an industrial unit.
The Trade Unions Act has made it compulsory on trade unions to use their funds for workers
interests and to prescribe a fee of at least 25 paisa per works. Most of the members of the executive
committee of a trade union must be employed in the factory.

In 1930, the climate was not favorable to the growth of trade Union movements in India. The
prosecution of the communists involved in Meerut conspiracy case and the failure of Bombay
Textile strike of 1929 retarded the trade union movement. Moreover the serious economic
depression was added with it, during the period.

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In the next phase, the Second World War gave a great impetus to the trade union movement in
India. The rising cost of living forced laborers to organize themselves into trade unions. At the
same time the Second World War split the trade union leaders on the question of participating in
the war. Industrial unrest was also increased during this period. As a result; there was a marked
increase in both the number of trade unions and of organized workers.

With independence and partition, the country was plunged into growing unemployment. A series
of strikes occurred, in the country. The All India Trade Union Congress was split up as a result of
which the Indian National Trade Union Congress (INTUC) was formed in 1947 under the control
of congress party. The Hind Mazdoor Sabha (HMS) was formed by the socialist Party in 1948, and
United Trade Union congress (UTUC) was formed in 1949. Recently, Centre of Indian Trade
Unions (CITU) has been formed by the Communist Party (Marxists).

There are more than fourteen thousand registered trade unions in India. The steady growth of trade
unions in India is due to the political consciousness among the laborers as well as the
governmental measures to facilitate collective bargaining through appropriate legislation.

Features

The main characteristics of the trade unionism are:

(a) Small size of membership,

(b) Lack of adequate finance,

(c) Non fulfillment of welfare schemes,

(d) Control of political parties,

(e) Outside interference in the activities of labor unions.

GROWTH OF TRADE UNIONS

Trade unions in India, as in most other countries, have been the natural outcome of the modern
factory system. The development of trade unionism in India has a chequered history and a stormy
career.

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Early Period

Efforts towards organising the workers fit their welfare were made during the early period of
industrial development by social working philanthropists and other religious leaders mostly on
humanitarian grounds. The first factories Act, 1881, was passed on the basis of the
recommendations of the Bombay Factory Commission, 1985. Due to the limitations of the Act, the
workers in the Bombay Textile Industry under the leadership of N. Lokhande demanded reduced
hours of work, weekly rest days, mid-day recess and compensation for injuries. The Bombay Mill
owners' Association conceded the demand for weekly holidays. Consequently, Lokhande
established the first Workers' Union in India in 1890 in the name of Bombay Mill-hands
Association. A labour journal called "Dinabandu" was also published.

Some of the important unions established during the period are: Amalgamated society of Railway
Servants of India and Bruma (1897) Management and Printers' Union, Calcutta (1905) and the
Bombay Postal Unions (1907), the Kamgar Hitavardhak Sabha (1910) and the Social Service
League (1910). But these unions were treated as ad hoc bodies and could not serve the purpose of
trade unions.

Modest Beginning

The beginning of the Labour movement in the modern sense started after the outbreak of World
War I in the country. Economic, political and social conditions of the day influenced the growth of
trade union movement in India. Establishment of International Labour Organisation in 1919 helped
the formation of trade unions in the country. The Madras Labour Union was formed on systematic
lines in 1919. A number of trade unions were established between 1919 and 1923. Category wise,
unions like Spinners' Union and Weavers Union came into existence in Ahmedabad under the
inspiration of Mahatma Gandhi. These unions were, later, federated into an industrial unions
known as Ahmedabad Textile Labour Association. This union has been formed on systematic lines
and has been functioning on sound lines, based on the Gandhian Philosophy of mutual trust,
collaboration and non-violence.

All India Trade Union Congress

The most important year in the history of Indian Trade Union movement is 1920 when the All
India Trade Union Congress (AITUC) was formed consequent upon the necessity of electing
delegates for the International Labour Organisation (ILO). This is the first All India trade union in
the country. The first meeting of the AITUC was held in October, 1920 at Bombay (now Mumbai)
under the presidentship of Lala Lajpat Rai.

The formation of AITUC led to the establishment of All India Railwaymen's Federation (AIRF) in
1922. Many Company Railway Unions was affiliated to it. Signs of militant tendency and
revolutionary ideas were apparent during this period.

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 (a) Period of splits and mergers : The splinter group of AITUC formed that All India Trade
Union Federation (AITUF) in 1929. Another split by the communists in 1931 led to the
formation of All India Red Trade Union Congress. Thus, splits were more common during
the period. However, efforts were made by the Railway Federation to bring unity within the
AITUC. These efforts did bear fruit and All India Red Trade Union Federation also merged
with the AITUC. The unified AITUC's convention was held in 1940 in Nagpur. But the
unity did not last long. World War II brought splits in the AITUC. There was two groups in
the AITUC, one supporting the war while the other opposed it.

The supporting group established own central organisation called the Indian Federation of
Labour. A further split rook place in 1947, when the top leaders of the Indian National
Congress formed another central organisation.

(b) Indian National Trade Union Congress : The efforts of the Indian National Congress
resulted in the establishment of the Indian National Trade Unions Congress (INTUC) by
bringing a split in the AITUC. INTUC started gaining membership right form the
beginning.

(c) Other Central Unions: The Socialists separated from the AITUC and formed the Hind
Mazdoor Sabha (HMS) in 1948. The Indian Federation of Labour Merged with the HMS,
the Redicals formed another union under the name of the United Trade Union Congress in
1949. Thus, the trade union movement in the country was split into four distinct central
unions during the short span of 1946 to 1949.

During this period, some other central unions were also formed. They were Bharatiya Mazdoor
Sangh (BMS) in 1955, the Hindi Mazdoor Panchayat (HMP) in 1965 and the Centre of Indian
Trade Unions (CITU) in 1970. Thus, the splinter group of the INTUC formed the Union Trade
Union Congress - the split in the Congress Party in 1969 resulted in the split in INTUC and led to
the formation of the National Labour Organisation (NLO).

STRUCTURE OF UNIONS

The structure of unions referes to the basis on which unions are organised (i.e., whether they are
organised on craft or industrial or general union basis) and to the pattern whereby the plant unions
are linked to regional level or national level federations or unions. Let us examine these two
aspects one by one.

Trade unions can be classified into three categories: (a) craft union, (b) industrial unions, and (c)
general unions. A craft union is an organisation of wage earners engaged in a single occupation. It
may cover all workers engaged in a particular craft irrespective of the industries in which they are
employed. Thus, electricians though working in different industries, may form a union of

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electricians. There may be separate unions for fitters, turners, carpenters, etc. The International
Wood Carvers' Association and the Indian Pilots' Guild may be cited as examples of craft unions.

An industrial union is organised on the basis of an industry rather than a craft. If the work forces of
a cotton textile factory decide to from a union consisting of workers of different crafts, the union
will be called an industrial union. A General union is one whose membership covers workers
employed in different industries and crafts. General unions are not popular in India.

In India, trade unions have largely been organised by industry rather than craft. Although industrial
unions have grown continuously craft unions have also emerged here and there. The exist among
non-manual workers like administrative staff professionals, technicians, etc.

The reasons responsible for the growth of industrial unions. The predominance of industrial unions
can be attributed party to conditions not favouring the growth of craft and general unions and
partly to the environmental support to industrial unions. The specific reasons may be listed below:

(i) Bypassing of merchant craftsmen stage of capitalism. When industrialisation started in

India, the technological development had advanced far enough to reduced the
importance of craftsmen India as such bypassed the merchant craftsmen stage of
capitalism and went straight from agriculture to factory stage. Resultantly, the
craftsmen were reduced greatly in significance. The reduced importance of craftsmen
coupled with large number of unskilled workers made industrial unions more
significant for strength than the craft union.

(ii) Higher wages of skilled workers. In early days of union growth, the skilled workers enjoyed
higher rates of remuneration due to their relative scarcity. They, therefore, took no interested in
unionism. This lack of interest on their part plus the predominance of unskilled workers favoured
union growth on industrial rather than craft lines.

(iii) Industrial centers industrial unionism has also flourished in Industries in particular areas. For
instance, plantation labour in Assam, Chennai and Kerala and engineering workers in Bombay and
Culcutta are organised on this basis.

(iv) Influence of outsiders. Trade union movement in India was started by outsiders. They were
interested in labour class as a whole and not in a section of it. They therefore, gave more attention
to the formation of industrial unions rather than craft unions. Industrial unions bring more workers
within the fold of unions as compared to craft unions.

Structure of Tradition

The structure pattern of unions in India relates to their relationship between national level, regional
level, local level and plant level unions.

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 (i) 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 discussed below or these may be
independent.

(ii) Regional level federations. These are the organisation of all the constituent unions in a
particular state or region. The importance of such federations cannot be exaggerated, in
a vast country like India, conditions vary from region to region. The style of living,
languages, customs, traditions, working conditions, etc. are different. Therefore, it is
better that workers are organised at regional or state level. These regional federations
may have members of two kinds : (1) the plant level unions affiliating themselves to
these directly, and (2) the local federations. In the second case, plant level unions
become the members of regional federation indirectly through the local federations. It
may be noted that the regional federations may be independent or they may get
affiliated to some national federation.

(iii) 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. The national federations may have their own regional or state
level coordinating bodies to which the plant level unions may get affiliated.

However, four central organisations of employees in India are as below:

(A) The Indian National Trade Union Congress (INTUC)

The INTUC was formed by the Congress Party and the top Congressmen like Nehru and Patel
were associated with it. Every Union affiliated to INTUC has to submit its dispute to arbitration
after exhausting other means of settlement of disputes.

(B) The All India Trade Union Congress (AITUC)

This union serves as the labour forum of Communist Party of India at present. It is considered as
the second largest union in India.

(C) The Hind Mazdoor Sabha (HMS)

It was formed in December 1951 in Calcutta by the socialists who neither approved INTUC nor
AITUC. The HMS was organised with a view to keeping its members free from any political or
other outside interference.

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(D) The United Trade Union Congress (UTUC)

It was formed on 30th April 1949 by the dissident socialists. It functions mainly in Kerala and
West Bengal.

4. Importance Of Trade Unions:

To Employees:

Members of the union tend to have higher wages than non-unionized workers.
Trade unions also sometimes act as representatives of workers in case of legal matters
The rights of the employees are better protected. For example, they cannot be unjustly
removed from work.

To Employers:

Since the individual rights of workers are better protected and well represented, they tend to be
motivated. This results in higher levels of efficiency and improved productivity.

Trade Unions are important to workers for the following reasons:

1. Trade Unions are workers tool for collective bargaining. Industries with trade unions always
have higher wage structures. Trade Unions negotiate with employers for better terms and
conditions of employment and for healthy workplace standards.

2. Trade Unions strengthen workers demand for better labour and industrial legislation. The
ability of unions to represent workers and their families stand as an asset, for which political
parties try to woo them by offering better deals in terms of pro labour legislation. Better medical
facilities, welfare schemes, annual leave, insurance and other benefits are the results.

3. Trade unions can ensure more job security for its members than non unionized, unorganized
workers.

4. Unions provide legal support to workers when they face police action and legal tangles.

5. Factories with union activity are safer when it comes to chance for industrial accidents. Unions
pressurize employers to ensure better safety standards and use their influence with law
enforcement agencies to assure better safety measures at workplace.

6. Trade unions protect workers against physical and mental torture and exploitation of superiors at
workplace.

7. Workers individual rights and liberties are better protected by trade unions. It protects women
employees against sexual harassment.

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8. Trade Unions in advanced countries often provide educational support and training for skill up-
gradation.

9. Trade unions can negotiate with management for mutual give and take in matters of increased
productivity. When there is higher demand of production trade unions can negotiate better
remuneration, so that both workers and managements benefited.

10. Since trade unions protect their interests, workers can remain motivated and their economic,
social, political well being are taken care of.

Trade unions help in accelerated pace of economic development in many ways

as follows:
by helping in the recruitment and selection of workers
by inculcating discipline among the workforce
by enabling settlement of industrial disputes in a rational manner
by helping social adjustments. Workers have to adjust themselves to the new working
conditions, the new rules and policies. Workers coming from different backgrounds may
become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
Trade unions are a part of society and as such, have to take into consideration the national
integration as well.

Some important social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrial
disputes
incorporating a sense of corporate social responsibility in workers
achieving industrial peace

5. CHARACTERISTICS OF A TRADE UNION

Trade unions are voluntary associations formed for the pursuit of protecting the common
interests of its members and also promote welfare.They protect the economic, political and social
interests of their members.

Features of trade unions:

It is an association either of employers or employees or of independent workers. They may

consist of :Employers association (eg. Employers Federation of India,Indian paper mill
association, etc.)General labor unionsFriendly societiesUnions of intellectual labor (e.g. All India
Teachers Association)It is formed on a continuous basis. It is a permanent body and not a casual

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or temporary one. They persist throughout the year.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. Negotiations and collective bargaining are the tools for accomplishing
objectives.Trade unions have shown remarkable progress since their inception; moreover, the
character of trade unions has also been changing. In spite of only focusing on the economic
benefits of workers,the trade unions are also working towards raising the status of labors as a
part of industry.

Need for Trade Union

Trades unions are essential for the protection of workers in the world of work. The individual is
weak and easily exploited where there are no unions around; I have witnessed some of the
horrendous practices employers get up to when there is no union protection for workers.Unions
are necessary where this sort of abuse is prevalent; needless to say there was no union at this
plant which has since closed down.

Main Characteristics

1. A union normally represents members in many companies throughout the industry or

occupation.

2. A union is fundamentally an employer regulating device. It sharpens management efficiency

and performance while protecting the interests of the members.

3. A union is a part of the working class movement.

4. A union is a pressure organisation originating in the desire on the part of a group with
relatively little power to influence the action of a group with relatively more power.

5. A union is a political institution in its internal structure and procedures.

6. Objectives:
1. Ensure Security of Workers:

This involves continued employment of workers, prevent retrenchment, lay off or lock-outs.
Restrict application of fire or dismissal or discharge and VRS.

2. Obtain Better Economic Returns:

This involves wages hike at periodic intervals, bonus at higher rate, other admissible allowances,
subsidized canteen and transport facilities.

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3. Secure Power To Influence Management:

This involves workers participation in management, decision making, role of union in policy
decisions affecting workers, and staff members.

4. Secure Power To Influence Government:

This involves influence on government to pass labour legislation which improves working
conditions, safety, welfare, security and retirement benefits of workers and their dependents,
seek redressal of grievances as and when needed.

The objectives of a trade union are achieved by a pursuit of traditional

methods. These are:
(i) The organisation of a trade union on the basis of the craft or industry in which its members
are employed, such as general unions and professional employees organisations.

(ii) Collective bargaining, which is the essence of industrial relations, for it is through collective
bargaining that the terms and conditions of employment are determined and under which work is
performed satisfactorily.

(iii) Grievance processing and handling procedures, under which grievances are redressed or
dealt with by a correction of situation or by channelling up of these up the line.

(iv) Arbitration, by which unsettled or unresolved disputes can be settled by an outside agency.

(v) Political pressure exercised through legislators who are capable of bringing about changes in
labour laws; and

(vi) Mutual insurance through common contributions to meet the financial needs of workers
when there are stoppages of work.

7.Functions of a Trade Union:

Trade unions in present era of industrial development, perform two sets of functions: the
"Militant Functions and the Fraternal Functions." The trade union is a militant organisation
designed to fight for the cause of the workers. One of the main aims of the organisation of
workers into trade union is to secure better conditions of work and employment. The trade
unions try to fulfill this aim by the method of collective bargaining and negotiations and if they
do not succeed in securing their purpose in this manner, they put up a fight with the employers
for achieving their end in the form of strikes and boycotts. More recently, the trade unions have
started making efforts to secure some share in the profits and also control of the industry. Then,
the trade union is also a fraternal association, a benefit organization, providing sickness and
accident benefits to the members and supporting them during strikes and lockouts and during the

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period when they are temporarily out of work. Such financial help to the members is given by the
trade unions out of their own funds created through subscriptions by members. Such functions
are known as fraternal functions: However, in modern period, the various functions are
performed by trade unions as pointed out below:

(A) Militant or protective or intra-mutual functions : These functions include protecting the
workers' interests, i.e., hike in wages, providing more benefits, job security, etc. through
collective bargaining and direct action such as strikes, gheraos, etc.

(B) Fraternal or extra-mutual functions : These functions include providing financial and non-
financial assistance to workers during the periods of strikes and lock-outs, extension of medical
facilities during slackness and casualties, provision of education, recreation, recreational and
housing facilities, provision of social and religious benefits, etc.

(C) Political functions : These functions include affiliating the union to a political party, helping
the political party in enrolling members, collecting donations, seeking the help of political parties
during the periods of strikes and lock-outs.

(D) Social functions : These functions include carrying out social service activities, discharging
social responsibilities through various sections of the society like educating the customers etc.

The important basic functions of unions listed by National Commission on labour are:

To secure fair wages to workers.

To safeguard security of tenure and improve conditions of service.
To enlarge opportunities for promotion and training.
To improve working and living conditions.
To provide for educational, cultural and recreational facilities.
To co-operate in and facilitate technological advance by broadening the understanding of
workers on its underlying issues.
To promote identity of interests of workers with their industry.
To offer responsive co-operation in improving levels of production and productivity,
discipline and high standards of quality and
To promote individual and collective welfare.

ROLE OF TRADE UNIONS

Trade Unions perform the following role in different spheres.

(i) Sectional Bargainer - Interests of the workers at plant, industry, national level
multiplicity of unions, Crafts Unions, white Collar Union, etc.

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 (ii) Class Bargainer - Unions representing the interest of the class as a whole - In France
Agricultural Unions, Federation of unions, Civil Servants Union, etc.

(iii) Agents of State - As in U.S.S.R., ensuring targets of production at fixed price. In the
1974 Railway strike, INTUC stood behind Gove. and its agent.

(iv) Partners in Social Control - Co determinator in Germany. Also, some examples are
found in Holland, France, Italy and Sweden - Some half-hearted attempts are being made
in India also.

(v) Unions role which can be termed as enemies of economic systems, driven by political
ideologies than by business compulsions. Leftist unions want to change the fundamental
structure of economy and want to have control over it.Therefore, they encourage high
wages, high bonus etc.,without any consideration for the health of the economy.

(vi) Business Oriented Role, where unions consider the interests of the organisations
along with workers. They think that their members fate is inextricably linked with that of
organisation and they swim or sink together.

(vii) Unions as Change - Agent - lead the changes rather than be led by them, thus
performing the pioneering role.

8. Rights and Liabilities of Registered Trade Unions:

The existence of a strong and recognized trade union is a pre-requisite to industrial peace.
Decisions taken through the process of collective bargaining and negotiations between
employer and unions are more influential. Trade unions play an important role and are
helpful in effective communication between the workers and the management. They provide
the advice and support to ensure that the differences of opinion do not turn into major
conflicts. The central function of a trade union is to represent people at work. But they also
have a wider role in protecting their interests. They also play an important educational role,
organizing courses for their members on a wide range of matters. Seeking a healthy and safe
working environment is also prominent feature of union activity.

1. As per section 13, upon registration, a trade union becomes a legal entity and as a
consequence, it gets perpetual succession and a corporate seal, it can acquire and hold
movable and immovable property, contract through agents, and can sue and get sued.

2. Under section 15 a registered trade union has a right to establish a general fund.

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3. Under section 16, a registered trade union has a right to establish a political fund.
Subscription to this fund is not necessary for a member.

4. Under section 17, 18, and 19 a registered trade union gets immunity in certain criminal,
civil, and contractual proceedings.

5. Under section 24, trade unions have the right to amalgamate.

6. Under section 28-F, the executive of a registered trade union has a right to negotiate with
the employer the matters of employment or non-employment or the terms of employment or
the condition of labor of all or any of the members of the trade union and the employer shall
receive and send replies to letters and grant interviews to such body regarding such matters.
It further provides that the executive is entitled to post notices of the trade union meant for its
members at any premises where they are employed and that the employer shall provide
reasonable facilities for that.

1. Objects on Which General Funds May Be Spent:

The general funds of a registered trade union shall not be spent on any other objects than the
payment of salaries, allowances and expenses to the office bearers of the trade unions;
expenses for the administration of the trade union; the presentation or defiance of any legal
proceeding to which the trade union of any member thereof is a party; the conduct of trade
disputes and compensation of members for loss arising out of trade disputes; provision of
education, social or religious benefits for members; upkeep of a periodical published.

2. Constitution of a Separate Fund for Political Purposes:

A registered trade union may constitute a separate fund, from contributions separately levied
for or made to that fund, from which payments may be made for the promotion of the civic
and political interests of its members, in furtherance of any of the objects such as the
payment of any expenses incurred, either directly or indirectly; the holding of any meeting or
the distribution of any literature/documents in support of any such candidate; the registration
of electors of the selection of a candidate for any legislative body constituted under or for any
local authority; the registration of electors or the selection of a candidate for any legislative
body constituted under/or for any local authority; holding of political meetings of any kind.

3. Criminal Conspiracy in Trade Disputes:

No office bearer or member of a registered trade union shall be liable to punishment under
sub-section (2) of Section 120 B of the Indian Penal Code, 1860 in respect of any agreement
made between the members for the purpose of furthering any such object of the trade union
as is specified in section its unless the agreement is an agreement to commit an offence.

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4. Immunity from Civil Suit in Certain Cases

(i) No suit or other legal proceeding shall be maintainable in any civil court against any
registered trade union or any office bearer or member thereof in respect of any act done in
contemplation or furtherance of a trade dispute to which a member of the trade union is a
party on the ground only that such act induces some other person to break a contract of
employment, or that is in interference with the trade, business or employment of some other
person or with the right of some other person to dispose of his capital or of his labour as he
wills.

A registered trade union shall not be liable in any suit or other legal proceeding in any civil
court in respect of any fortuitous act done in contemplation or furtherance of a trade dispute
by an agent of the trade union if it is proved that such person acted without the knowledge of,
or contrary to express instructions given by the executive of the trade unions.

5. Enforceability of Agreements:

Notwithstanding anything contained in any other law for the time being in force, an
agreement between the members of a registered trade union shall not be void or voidable
merely by reason of the fact that any to the subjects of the agreement are in restraint of the
trade.

6. Right to Inspect Books of Trade Unions:

The account books of a registered trade union and the list of members thereof shall be open
to inspection by an office bearer or member of the trade union at such times as may be
provided for in the rules of the trade union.

7. Right of Minors to Membership of Trade Unions:

Any person who has attained the age of 18 years may be a member of a registered trade
union subject to any rules of the trade union to the contrary, and may subject as aforesaid,
enjoy all the rights of a member and execute all instruments and give all acquittances
necessary to be executed or given under the rules.

8. Effects of Change of Name and of Amalgamation:

The change in the name of a registered trade union shall not affect any rights or obligations
of the trade union or render defective any legal proceeding by or against the trade union. An
amalgamation of 2 or more registered trade unions shall not prejudice any right of any of
such trade unions or any right of a creditor of any of them.

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9. CHALLENGES/PROBLEMS OF TRADE UNIONS IN INDIA
The position of trade unions in India is not very sound but provides gloomy picture. This is
because of the fact that the Indian trade unions of today suffer from many problems. A brief
account of these problems and constraints are given below :

(A) Uneven Growth : Trade union activities are concentrated in large scale industry sector
and there too in regard to manual labour only and mainly in bigger industrial centers, for
example, textile workers in Bombay, Ahmedabad, Indore, Kanpur and Plantation labour in
Assam, West Bengal, Tamil Nadu and Kerala, Hardly any trade union activity exists in small
scale enterprises, domestic and agricultural labour. The degree of unionization varies from
industry to industry. It is 39% in transport and communication, manufacturing industries and
electricity and gas. In coal, it is 61% tobacco manufacture 70% and cotton textile 56%. Thus
unionism has touched only a portion of the working class in India.

(B) Low Membership : The number of trade unions in India has increased considerably. But
this has been followed by the declining membership per union. The average number of
members per union was about 3,500 in 1927- 28. It reduced to about 1,400 in 1946-47 and
again to as low as a figure of 675 in 1985-86 and 659 in 2000-01. During 1964-65, 70% of
the unions submitting returns belonged to the group having a membership below 300.

More than 75 percent of the trade unions submitting returns in 2000-01 have less than 500
members. The average membership of all trade unions including both submitting returns and
those not submitting returns is likely to be much below this figure. This indicates the
emergence of small sized unions in large numbers. This is due to the reason that any seven
workers may form a union under the Trade Union Act. 1926 and get it registered. Moreover,
the rivalry among the leaders of trade unions has resulted in multiplicity of unions, thereby
reducing the average size of membership per union.

(C) Outside Leadership : Another remarkable feature of trade unionism in India has been
domination by outside leadership down to the present day. Most of the trade unions in India
have professional political leadership. The leadership is not rooted in the working class. The
leadership of professional political is interested in exploiting workers for their political
purposes. The interest of the working class is not protected by the political leaders. The
political leadership is actually harmful to the cause of working class. Strikes are prolonged
by political leaders for personal prestige. Very often, negotiations with employers fail due to
such political leadership. The interest and welfare of the workers are very often ignored.
Thus, outside leadership of politicians is a major weakness or trade unions in India.

(D) Multiplicity of Unions : Another problem of trade unions in India is that of multiplicity
of unions. There exist many trade unions in the same establishment. There are at times as
many as twenty unions in the same plant. The existence of this phenomenon can be attributed
partly to the labour laws. The Trade Unions Act, 1926 permits any association of seven
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workers to be registered as a union, and confers upon it certain rights. That is, such a union is
allowed by law to raise disputes, go to conciliation file suits, and even bargain with
employers. Such a law naturally encourages small sections of workers to form separate
unions. Any seven person can get together to form a union. Many a time, it is contended that
multiplicity of unions is because of outside leaders, but more pertinent point is that they are
able to work because law permits and gives sanctity to the small unions.

(E) Inter Union Rivalry : On account of multiple unions there occurs a problem of union
rivalry. Unions try to play down each other in a bid to gain greater influence among workers.
In the process they do more harm than good to the cause of unionism as a whole. Employers
are given an opportunity to play unions against each other. They can refuse to bargain on the
contention that there is not true representative union. Besides this, the workers' own
solidarity is lost. Employers are able to take advantage of infighting between workers groups.
Solution to this problem can be found in secret ballot vote. After some stipulated time period
say two years or so, the workers should go to polls to elect their representative union for that
duration. This would do away with both multiplicity of unions and union rivalry.

(F) Absence of Paid Office Bearers : Majority of unions do not have whole time paid office
bearers. Many union activities work on honorary basis. They devote only limited time and
energy to trade union activities. The domination of political leaders is also due to the absence
of full time union workers. The union office bearers are also not trained properly. They lack
the knowledge of basic principles and practices of trade unionism.

(G) Weak Financial Position : The financial position of the trade unions is very weak
because their average yearly income is very low and inadequate. The subscription rates are
very low. Subscription rates vary from union to union. Under conditions of multiplicity of
unions, unions interested in increasing their membership figures keep the subscription rate
unduly low.

As a result, the funds with the unions are inadequate and they cannot undertake welfare
programmes for their members. In such a situation, the subscription rates must be raised. It is
argued that the financial condition of Indian workers is not too good to afford the increased
rates. This however, is only myth. Over the years the average income of the workers has been
on an increase. It is wrong to plead that they cannot afford higher subscription rates.

(H) Lack of Interest : In order to make the trade union movement succeed the members of
trade unions should take keen interest their affairs. They should understand what unionism all
about and what demands it makes on individual members. They must feel the need to give
the movement necessary support for a common cause. In India, a large number of workers
have not joined any union. About 2/3rd of the workers have to truck with 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 circumstances, trade

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unionism cannot be expected to make much progress. This problem can be removed by
educating workers of their rights and duties and developing in them a sense of responsibility.

(I) Limited Stress on Welfare: Many unions in India undertake only limited welfare
activities. They feel that their major activity is to fight with the employer for more wages and
allowances. Other activities like opening a co-operative bank or store, provision of
educational and medical facilities, provision of welfare facilities, etc. are not undertaken by
many unions. As a result, workers are not attracted towards unions.

(J) Lack of Public Support: The trade unions frequently resort to strikes and
demonstrations. They give limited attention to peaceful methods for the settlement of
demands and disputes. The general public is affected due to strikes, go slow policy and other
practices of unions. As a result, public support or sympathy is not available to the unions.
The general public opinion is not favourable to unions and their unfair activities.

10. Global Perspective of Trade Union

The Starter Kit began with a discussion of the two types of global unions. The first type,
global union federations (GUFs) used to be called International Trade Secretariats, and are
the industrial wing of the international trade union movement. The political wing is the
International Trade Union Confederation (ITUC), and its variants. So there are two levels
industrial and political. Moreover, the ITUC represents national TUCs, while GUFs represent
sectoral unions.

GUFs

GUFs are based on industries and sectors, paid for through union subs. The International
Transportworkers Federation (ITF) for example is made up of different transport unions.
They are paid for by you through a percentage of members subs a coffee per member
per year.

There are a number of GUFs, such as the BWI (the Building and Woodworkers
International, representing largely construction workers), EI (Education International),
IndustrALL (a manufacturing/industrial GUF merger), IFJ (International Federation of
Journalists), IUF (representing primarily food-workers), PSI (a public sector GUF), UNI (for
service sector workers) and so on. These meet together in their combined website Global
Unions, a useful resource which contains all the information about global union campaigns.

What do GUFs do?

Trade union development and education

Solidarity actions GUFs are active in resisting repression with solidarity actions
through email campaigns, petitions, pickets etc.

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 Research e.g. digging up information on target companies
Co-ordinating representation in transnational corporations. Unilever has factories all
over the world and comes under the IUFs remit. The IUF thus tries to bring together
all Unilevers unions to meet and plan action internationally in order to stop workers
being pitted against each other by bosses.
UN and employer association representation
Information exchange a telephone exchange on a giant level
Campaigning from long hours and stress for lorry drivers, to food safety and land
rights and everything in-between
GUFs often get involved in national disputes. National unions put out a call for
solidarity, and GUFs respond by sending representatives, starting global campaigns
etc.

The global federations also offer training, and can put unions in contact with other unions
worldwide, organising joint training for example.

However, it must be remembered that they are not huge organisations, the ITF being the
biggest with just 100 staff in London, plus staff regionally across the world. The IFJ probably
has less than a dozen staff globally, while the IUF has around 100 staff and the BWI around
50.

The International Trade Union Confederation

The ITUC can be described as the global TUC of TUCs. Most countries have more than
one TUC, and indeed some have dozens, while in UK we have only have one. The ITUC
itself is quite new, formed in 2006 as a merger between two others confederations the
ICFTU (formed in 1949 and social democratic/democratic socialist) with the WCL (formed
in 1920s and a Christian trade union federation of mostly Catholic unions based in Belgium,
Netherlands, Switzerland, Latin America and so on). Today the ITUC is based in Brussels,
and Sharan Burrow is its General Secretary.

But whats it for?

Representing the trade union movement on international governmental bodies e.g.
ILO, WB, IMF, WTO etc.
Campaigning for workers rights, e.g. through publishing its annual trade union
repression report.
Organising solidarity actions against repression, especially governmental repression.
It played a major role in the struggle against Apartheid in South Africa.
Research and union development
The Decent Work agenda

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The World Federation of Trade Unions

Established in 1945, the World Federation of Trade Unions (WFTU) is a Communist union
confederation strong during the Cold War which dates back to the Labour Union
International. A Bolshevik confederation, the WFTU could be described as a transmission
belt of party policy to unions and to workers, strongly following the party line.

The WFTU is was based in Prague, dominated by state-controlled unions plus other
communist unions. However, it essentially collapsed after the Cold War ended, though
remnents remain. Indeed, some unions are returning to the WFTU, which is today based in
Athens and led by PAME, a radical Greek union confederation. It is seen as undergoing
something of a resurgence.

Global Unions: Regional Structures

Many GUFs give their regional branches a high level of autonomy, allowing them to set their
own policy, budgets, campaigns and so on. However, this degree of autonomy varies, with
some being more centralised than others.

The International Labour Organisation

In terms of the ILO, we must first note it is not a trade union body, instead being part of the
UN like UNICEF. However, unions do have strong representation in the ILO at 25%, with
the ITUC holding many representatives. Employers associations also send representatives,
holding 25% of seats, while governments hold 50% of ILO representation. As an
organisation, the ILO can be seen as a theatre of class warfare.

A key role of the ILO is to set global labour standards, meeting annually for over two weeks
in Geneva to debates labour standards a process which takes months of preparation. In the
case of domestic workers however, it paid off they won. But it can go the other way.

Core Labour Standards

A key issue for the ILO is determining what the core rules are which should govern
everyone. However, the ILO sets rules only for governments, not companies, creating a
problem you can only complain to the ILO about governments. Moreover, ILO
Conventions (of which there are hundreds) have to be ratified by national governments, and
as the ILO has no enforcement powers, ILO decisions are essentially voluntarily enforced.

The core tenets of the ILO are:

Freedom of association
Right to collective bargaining
Elimination of forced labour

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 Effective abolition of child labour
Freedom from discrimination
Decent work is big theme in the ILO too.

11. IT Industry & Trade Unions

Indian IT industry has carved a niche for itself in the international arena with its global offshore
delivery model and competent workforce. Many of the labour laws applicable to the industry
have been simplified in the name of requirement for growth and development of the industry and
employers are now playing with these simplified laws by taking advantage of the existing loop
holes. Employees thus have an array of unsettled demands due to which have warmed up to the
idea of trade unions in recent years. However, there has been a reverberating voice of employers
and associations against the formation of trade unions in the IT industry.

The industry directly employs more than 2.3 million employees and as the industry will expand
the employees' base will continue to increase further at a high rate. With such vast employee
base the possibility of organized trade unions should be given a serious thought since right to
association is guaranteed by the Constitution of India. The right to association, right to collective
bargaining; including the right to strike also constitute the core conventions of the International
Labour Organisation (ILO) of which India is a founder member. Welfare of employees can not
be overlooked for an industry which has had an unparalleled impact in the growth and
development. In the long run the repugnance to the employee demands and international labour
standards can be serious trouble for Indian IT industry.

Conceptual Framework Relating to Trade Unions in IT Industry

In the past discerning IT professionals in India have been putting in efforts for trade union
formation in cities like Bangalore and Hyderabad and Kolkata. One of these early initiatives is
the Union for Information Technology & Enabled Services (UNITES) head quartered in
Bangalore. UNITES is a part of global union UNI, which is a global union for skills and services
having 1.2 million workers worldwide. The union strives to create a distinct and cogent link
between employers & employees at all levels. Following the foot steps, another unionized body
'The IT Professional's Forum' is made under the aegis of UNI with dual objectives of better
working conditions and studying impact of social change and technology. Similarly West Bengal
Information Technology Services Association is set up under the patronage of CITU to safeguard
welfare of all employees in the IT & ITES service sector, West Bengal.

In the existing landscape many of the professionals in Indian IT industry feel the need of
organized trade unions and scenario hints that there will be a progressive increase in such
activities in other IT hubs like Chennai, Delhi and Mumbai. So it's obviously relevant that there

23
should be appropriateness of union policies for the category of employees whose unions are
competing for membership on an unprecedented scale (Bowen et al.1993).

Though there is a burgeoning demand for unionisation from the employees of this sector in India,
the voice is subsided by the employers and different employer associations. These initiatives
relating to regional unions have been controversially debated in the fraternity with no unanimous
acceptance. Any of these employees' associations have not been endorsed by NASSCOM which
is an apex regulatory body for IT industry. Kiran Karnik, former president of NASSCOM,
pointed out that union formation will not succeed in IT industry as it does not make sense in
thinking about unions when workers are not exploited and have access to management to redress
their grievances. However the stark reality is not aliened with the remarks made the former
NASSCOM president. To contradict the statement made by NASSCOM that the employees of
the IT/ITES sector did not want trade unions, practicing professionals in the industry were
surveyed to seek their opinion about trade unions

The practicing professionals of IT industry are veering for unionisation to address concerns
related to their job and work environment; along with economic concerns. Different driving
responses given by employees when asked to substantiate their opinion for organized trade
unions have been grouped and summarized below:

Long Working Hours: Many of the companies are flouting the weekly working hours norm set
by International Labour Organization. Employees working in the industry are forced to work for
extra hours as managers pressurize their subordinates in the name of shrinking deadline of
projects.

Work Load: Employees are pressurized by their superiors for more output so that the company
can maximize profits.

Compensation Related Issues: Parameters for performance based pay are not clearly defined in
the companies. Some companies are even paying lesser compensation to their employees going
for overseas assignments in comparison to what they are entitled for, as per the regulations of the
host country for expatriates (e.g. CSC India Pvt. Limited, Noida for its employees working in
Denmark).

Appraisal & Promotion Issues: Inspite of the methods like 360 degree and MBO for
performance appraisal, most of the companies lack maturity in HR processes to adopt such type
of robust appraisal approach. It is seen that the entire appraisal of an employee is handled by the
immediate manager which generates discontentment in the employee with no appropriate
solution. Also it is observed that many deserving employees are overlooked during the
promotion process.

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Job Insecurity: Employees in the industry are not secured about their jobs and many a times the
companies are at liberty to fire employees on flimsy grounds without giving due notice.
Employees fret about being given pink slip but feel totally helpless in such cases.

High Stress Levels: These jobs are very stressful leading to mental exhaution and over-worked
employees are unable to strike appropriate work-life balance. However when we see other
industries, people are able to achieve work-life balance because they are not over worked and
employers have a fear from trade unions.

Denial of Annual Leaves: Another major problem in most of the IT companies is that
employees are not given annual leave although they are available on paper. Even it can be seen
that normally an employee is not given leave for more than i-2 weeks yearly in spite of pending
leaves. This means that an employee cannot take a long break to de-stress himself/ herself.

No Recognition for Extra Efforts: Extra efforts by employees in the organisation are not
accounted for and no compensation is given to the employees in lieu of that.

Lack of Transparency & Equity: Organizational culture is spoiled due to lack of transparency
and equity as equal opportunities are not provided to all the employees. Some of the employees
are even harassed at times and hapless employeees are forced to quit.

A spectre now haunts the information technology (IT) sector in Tamil Nadu, that of trade unions.
The state, in a significant departure, has said the IT sector will now be covered by the Industrial
Disputes Act, 1947, which allows workers to form labour unions. Kumar Jayant, principal
secretary for Labour and Employment of the Tamil Nadu, which is among India's top three
software exporting states, clarified this to the Puthiya Jananayaga Thozilalar Munnani (New
Democratic Labour Front), a grouping that had raised its voice against the dismissal of
employees at TCS last year.

The issue arose after TCS dismissed hundreds of employees in January 2015, leading to the
formation of the IT Employees Wing supported by the NDLF. The front, after failing to extract a
response from the state government, approached the Madras High Court seeking a direction to
the administration to clarify whether the IT sector was covered by the Industrial Disputes Act,
following which the note was issued. "IT company employees are free to form trade unions and
can redress their grievances through evoking the provisions of the Industrial Disputes Act,"
Jayant said in the note.

Most large Indian IT companies like TCS, Infosys, Wipro, HCL Technologies and Cognizant
have campuses employing thousands of software engineers in Tamil Nadu. Infosys has over
17,000 employees in Chennai, Wipro has 25,000, and TCS, India's largest software exporter, has
60,000 employees in 13 centres in the state. The clarification comes at a time when the IT
industry is undergoing a business shift towards automation. All technology services firms have

25
forecast lower hiring this year as a result of this shift. This could also affect other states if the
business climate changes.

Case of Karnataka

This is a signifcant departure from the practice in the neighbouring state of Karnataka, the
country's largest technology hub, which has rules prohibiting formation of labour unions at these
companies.

In fact, Karnataka has exempted the sector from the industrial employment (Standing Orders)
Act 1946 and has also declared that IT firms will be treated on par with "essential services" in
the face of a strike or bandh.

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