TRADE UNION

A trade union or labor union is an organization of workers that have banded together to

achieve common goals such as better working conditions. The trade union, through its
leadership, bargains with the employer on behalf of union members and negotiates labour
contracts (collective bargaining) with employers. This may include the negotiation of wages,
work rules, complaint procedures, rules governing hiring, firing and promotion of workers,
benefits, workplace safety and policies. The agreements negotiated by the union leaders
are binding on the rank and file members and the employer and in some cases on other
non-member workers.
Originating in Europe, trade unions became popular in many countries during the Industrial
Revolution, when the lack of skill necessary to perform most jobs shifted
employment bargaining power almost completely to the employers' side, causing many
workers to be mistreated and underpaid. Trade union organizations may be composed of
individual workers, professionals, past workers, or the unemployed. The most common, but
by no means only, purpose of these organizations is "maintaining or improving the
conditions of their employment".
Over the last three hundred years, many trade unions have developed into a number of
forms, influenced by differing political objectives. Activities of trade unions vary, but may
include:

 Provision of benefits to members: Early trade unions, like Friendly Societies, often

provided a range of benefits to insure members against unemployment, ill health, old age
and funeral expenses. In many developed countries, these functions have been
 assumed by the state; however, the provision of professional training, legal advice and
representation for members is still an important benefit of trade union membership.
 Collective bargaining: Where trade unions are able to operate openly and are
recognized by employers, they may negotiate with employers over wages and working
conditions.
 Industrial action: Trade unions may enforce strikes or resistance to lockouts in
furtherance of particular goals.
 Political activity: Trade unions may promote legislation favorable to the interests of
their members or workers as a whole. To this end they may pursue campaigns,
undertake lobbying, or financially support individual candidates or parties (such as
the Labour Party in Britain) for public office.

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.
Collective strength offers a sort of insurance cover to members to fight against irrational,
arbitrary and illegal actions of employers. Members can share their feelings, exchange
notes and fight the employer quite effectively whenever he goes off the track.
 Trade Union Movement In India

In India the Trade Union movement is generally divided on political lines. According to

provisional statistics from the Ministry of Labour, trade unions had a combined membership
of 24,601,589 in 2002. As of 2008, there are 11 Central Trade Union Organisations (CTUO)
recognised by the Ministry of Labour.

The labour movement and trade unions are used synonymously. But that is not so, as
labour movement is conceived as "All of the organised activity of wage-earners to better
their own conditions either immediately or in the more, or less distant future.”. According to,
Prof. Cole, Labour movement implies in some degree, a community of outlook, it is an
organisation, or rather many forms of organisations based upon the sense of a common
status and a common need for mutual help. It emerges from a common need to serve a
common interest, "It seeks to develop among workers a spirit of combination, class-
consciousness and solidarity of interest and arouses a consciousness, for self-respect,
rights and duties. It creates organization or organizations for their self-protection,
safeguarding of their common interest and betterment of their social and economic position.
A trade union is an essential basis of a labour movement for without it the labour movement
cannot exist, because trade unions are the principal schools in which the workers learn the
lesson of self-reliance and solidarity."
Often there is to be found a lot of confusion on the use of the word labour movement and
'trade union movement'. However, there is a slight distinction between the two. The labour
movement is "for the worker", whereas the trade union movement is "by the worker". This
distinction needs to 'be noted all the more because till the workers organised themselves
into trade unions, efforts were made, mainly by the social reformers, to improve the working
and living conditions of labour. These efforts should be taken as forming a part of the
'labour movement' and not that of the trade union movement. In India, the labour movement
started from 1875, when a number of measures through legislation, administration and
welfare work, were taken by the government, the social workers and the enlightened
employers. The trade union movement on the other hand, started after 1918, when the
workers formed their associations to improve their conditions. It is, thus, a part of the
'labour movement'. which is a much wider term.
Trade Union in India is the primary instrument for promoting the union of trade union
movement and championing the cause of working class in India. The Madras Labor
Union was the first organized Trade Union in India followed by a large number of trade
unions in the Indian industrial centers. The Indian government passed the Trade Unions
Act in 1926, which legalized the registered Trade Union in India. The Act also gives
protection to these trade unions against certain civil and criminal cases. 
 Why the Trade Union Movement?
The main elements in the development of trade unions of workers in every country have
been more or less the same. The setting up of large-scale industrial units, create conditions
of widespread use of machinery, new lines of production and brought about changes in
working and living environment of workers, and concentration of industries in large towns.
All of these developments introduced a new class of workers (that is, wage-earners) who
were dependent on wages for their livelihood. They were at a disadvantage in an 'age when
the doctrine of laisse faire held the field.In the absence of collective action, they were
ruthlessly exploited, and had to work hard for unbelievably long hours, from sunrise to
sunset, in dark and dingy factories and under very tiring conditions and the protest by
indiv1dualworkers could have no effect on the employers because of the plentiful supply of
labour. The workers had, therefore, to join together, at least to maintain, if not to improve,
their bargaining power against the employers. It was this labour protest on an organised
scale, through the support of some philanthropic personalities. That organised labour
unions came to be formed.
The seeds for the development of trade union in India were sown with the growth of
industrialization. As the humanitarian movement came to India in the 19 th century, worker
groups made several attempts to improve their working conditions. The British introduced
this movement in India to divide Indian employers and employees and beat local
competition.
 Formation of First Trade Union
Gradually, workers started showing resentment against minimal wages and pathetic
employment conditions. The first incident of strike occurred in 1877, in Express Mills,
Nagpur. This was followed by agitations and demonstrations in Bombay and Madras, which
did not draw much government attention. Finally, the Indian Government was directed by
the British Government to take proper measures to improve conditions of labor.

The Bombay Mill Hands Association was formed in 1890, which highlighted the terrible
conditions and misery of workers caused by excessive work load, long working hours, low
wages and horrible working conditions.  However, the Association was far different from the
modern trade unions in India; it was similar to a welfare association. Later, in the year
1900, two more organizations emerged: the Postal Union in Bombay and Printers Union in
Calcutta, which were much closer to the modern trade unions.

The year 1920 is a landmark year in the history of trade unions. It witnessed the formation
of the first trade union in India. The All India Trade Union was formed, comprising 107 trade
unions. This was considered a powerful labor association, with a significant position in the
nationalist movement. 
 Roles/ Objectives Of Trade Union in India
Trade unions are unique organisations whose role is variously interpreted and understood
by different interest groups in the society. Traditionally trade unions role has been to protect
jobs and real earnings, secure better conditions of work and life and fight against
exploitation and arbitrariness to ensure fairness and equity in employment contexts. In the
wake of a long history of union movement and accumulated benefits under collective
agreements, a plethora of legislations and industrial jurisprudence, growing literacy and
awareness among the employees and the spread of a variety of social institutions including
consumer and public interest groups the protective role must have undergone, a qualitative
change.It can be said that the protective role of trade unions remains in form, but varies in
substance.

There is a considerable debate on the purposes and role of trade unions. The predominant
view, however, is that the concerns of trade unions extend beyond 'bread and butter'
issues. Trade unions through industrial action (such as protests and strikes) and political
action (influencing Government policy) establish minimum economic and legal conditions
and restrain abuse of labour wherever the labour is organised. Trade unions are also seen
as moral institutions, which will uplift the weak and downtrodden and render them the
place, the dignity and justice they deserve.

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.

Trade unions are formed to achieve the following objectives :-

 Representation
Trade unions represent individual workers when they have a problem at work. If an
employee feels he is being unfairly treated, he can ask the union representative to
help sort out the difficulty with the manager or employer. Unions also offer their
members legal representation. Normally this is to help people get financial
compensation for work-related injuries or to assist people who have to take their
employer to court.
 Negotiation
Negotiation is where union representatives, discuss with management, the issues
which affect people working in an organization. There may be a difference of opinion
between management and union members. Trade unions negotiate with the
employers to find out a solution to these differences. Pay, working hours, holidays and
changes to working practices are the sorts of issues that are negotiated. In many
workplaces there is a formal agreement between the union and the company which
 states that the union has the right to negotiate with the employer. In these
organizations, unions are said to be recognized for collective bargaining purposes.
 Voice in decisions affecting workers
The economic security of employees is determined not only by the level of wages and
duration of their employment, but also by the management’s personal policies which
include selection of employees for lay offs, retrenchment, promotion and transfer.
These policies directly affect workers. The evaluation criteria for such decisions may
not be fair. So, the intervention of unions in such decision making is a way through
which workers can have their say in the decision making to safeguard their interests.
 Member services 
During the last few years, trade unions have increased the range of services they offer
their members. These include:

1. Education and training - Most unions run training courses for their members on
employment rights, health and safety and other issues. Some unions also help
members who have left school with little education by offering courses on basic
skills and courses leading to professional qualifications.

2. Legal assistance - As well as offering legal advice on employment issues, some
unions give help with personal matters, like housing, wills and debt.

3. Financial discounts - People can get discounts on mortgages, insurance and

loans from unions.

4. Welfare benefits - One of the earliest functions of trade unions was to look after
 members who hit hard times. Some of the older unions offer financial help to
their members when they are sick or unemployed.

Forms of Trade Unions

1. Classical – a trade union’s main objective is to collectively protect the interests
of its members in given socio-economic- political system. Trade unions are the
expressions of the needs, aspirations and wishes of the working class.
2. Neo Classical – it goes beyond classical objectives and tries to improve other
wider issues like tax reliefs, raising saving rates, etc.
3. Revolutionary Change in the System – establishing the rule of the working
class even through violence, use of force, etc

Principal Trade Unions in India

At present, there are nine central trade unions and a large number of registered
federations of unions in various industries and occupations.

- A. I.T.U.C (ALL INDIA TRADE UNION CONGRESS)

- N.L.O ( NATIONAL LABOUR ORGANISATION)
- I.N.T.U.C (INDIAN NATIONAL TRADE UNION CONGRESS)
- C.I.T.U(CENTRE OF INDIAN TRADE UNIONS)
- U.T.U.C (UNITED TRADE UNION COMMITTEE)
- H.M.S (HIND MAZDOOR SABHA)
- B.M.S ( BHARTIYA MAZDOOR SANGH)
The Bharatiya Mazdoor Sangh (BMS) is the largest Central
Trade Union Organisation. The learned economist and visionary,
Mananiya Dattopantji Thengdi who has dedicated his life to the
service of the society, along with some like minded nationalists,
founded it on auspicious Lokmanya Tilak Jayanti 23 July 1955.
Girish Awasthi is the current president of the organization, and
Mr.Lakshma Reddy its General Secretary.
The Indian National Trade Union Congress (INTUC)The
Congress Party and the top congress leaders formed the INTUC
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. Indian National
Trade Union Congress (INTUC) is the trade union wing of
the Indian National Congress. It was founded May 3, 1947, and is
affiliated with the International Trade Union Confederation.

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.
The All India Trade Union Congress (AITUC) is the oldest trade
union federations. It was founded on 31 October 1920 in Bombay
by Lala Lajpat Rai and a few others and, until 1945 when unions
became organised on party lines, it was the primary trade union
organisation in India.
The Hind Mazdoor Sabha (HMS) It was formed in Calcutta on
December 24, 1948 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. The Hind Mazdoor Sabha  is a national trade union center in India.

The United Trade Union Congress (UTUC) United Trade

Union Congress is a central trade union organization in India.
UTUC is politically tied to Revolutionary Socialist Party. Abani
Roy is the general secretary of UTUC. UTUC was founded at an
All India Labour Conference in Calcutta, May 1, 1949. The
founding president was professor K.T. Shah, a member of the
Constituent Assembly from Bombay, and the founding general
secretary was Mrinal Kanti Bose, a former AITUC president
from Bengal.

Centre for Indian Trade Unions (CITU) CITU is a National

level Trade Union in India politically attached to the Communist
Party of India (Marxist). The Centre of Indian Trade Unions is
today one of biggest assembly of workers and classes of India. It has strong
unchallengeable presence in the Indian states of West
Bengal, Kerala and Tripura besides a good presence in Tamil Nadu, Andhra
Pradesh and Karnataka
CTUOs in India (Central Trade Union Organisations)
At present there are twelve CTUOs in India as follows:
1. Bharatiya Mazdoor Sangh (BMS)
2. All India Trade Union Congress (AITUC)
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 Labour Organisation (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
 11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC - LS)

Trade Union Act,1926

Trade Unions Act: The trade unions act was passed before independence to provide legal
protection to employee’ collectives and regulate them. Under the act, trade unions are to be
registered with the appropriate government appointed Registrar of Trade Unions.
Maintaining smooth relations between management and labor has been one of the main
objectives of Indian Industrial relations. Laws falling under this domain are mainly regulative
in nature. They specify the dos and don’ts.
The Trade Unions Act, 1926 allows freedom for any seven employees to apply to register a
trade union, but a later amendment (2001) specified the minimum membership as 10% of
unionizable employees or 100 employees, which ever is less. The act does not make
registration compulsory. However, the registered trade union protection from certain civil
and criminal actions.
The act does not specify any criterion or method for recognition of trade union by the
employer as the representative of employees. Various state governments, like
Maharasthra, have enacted separate legislations to deal with recognition.
The Industrial Employment (Standing Orders) Act, 1946 is regulatory in nature and is
applicable to industrial establishments under the jurisdiction of central and state
governments. By formally defining conditions of employment, the act serves to reduce
conflict and also be a communication mechanism between management and labor.
Industrial establishments have to frame standing orders and apply for certifications for
those as well. Certifications will be done by designated certifying officer after inviting
objections from workmen or trade unions and considering the objections. In the absence of
certified standing orders, the model standing orders provided in the act automatically apply,
except in Gujarat and Maharasthra.
The primary tone of the Industrial Disputes (ID) Act of 1947 is regulatory since it puts
restrictions on the direct actions that can be taken by both the parties involved in the
industrial dispute. Different conflict resolution forums have been proposed, including works
committees (Section 3), conciliation officers (Section 4) boards of conciliation (Section 5)
courts of inquiry (Section 6) and labor courts (Section 7) tribunals (Section 7A) and the
national tribunal (Section 7B). The act also allows the government to intervene in the
interest of maintaining industrial peace. Since it came to force, the act has been amended
many times.
In the context of demand for labor reforms, the suitability of the different provisions of the
act has been questioned from the perspective of increasing employment productivity, and
flexibility. The debate on the ID act starts with the definition of the industry itself, which got
widened by the Supreme Court in the landmark Bangalore Water Supply and Sewage
Board v. Rajappa, (1978) case.
The act also requires organizations to give a notice of change (Section 9A) – and advance
notice of 21 days – if there is any change at the work place affecting the workers. However
Section 9B allows the government to exempt firms from Section 9 A in terms of public
interest. Section 10 gives the government power to refer industrial disputes to boards,
courts or tribunals for the purpose of arriving at a settlement.
The act also places restrictions on employees in public utilities going on strike (sections 22,
23, and 24) without appropriate notice (6 weeks and 14 days before giving the notice) or
when any conciliation effort is operational. It also has provisions for firms employing more
than 50 workmen (Section 25 A) regarding layoffs, payment of layoff compensation
(Section 25 C) retrenchment of workmen after giving sufficient notice (Section 25F) and for
closure of undertaking (section 25 FFA
 Problems Faced By Trade Unions in India

1. Uneven Growth -The trade unionism in India is characterised by uneven growth,

both industry-wise and area-wise. Trade unions are popular in big industries and the
degree of unionisation 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.

2. Limited Membership -The number of trade unions in India has increased

considerably. But this has been followed by the declining membership per union.
This is due to the reason that any seven workers any form a union under the Trade
Unions Act, 1926 and get it registered. Secondly, the rivalry among the leaders of
trade unions has resulted in multiplicity of unions, thereby reducing the average size
of membership per union.

3. Multiplicity of Unions - There exist several trade unions in the same establishment.
The multiplicity of unions is the result of outside leadership and labour laws. 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, got 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. This has serious consequences. Workers lose interest in unionism. Not
 only that, the employers also get an opportunity to play unions against each other.
They are able to take advantage of infighting among unions and may refuse to bargain
on the plea that there is no strong representative union. They can argue saying that
they don’t know that who should they bargain with.Thus, multiple unions do more
harm than good to the cause of trade unionism.

4. Outside Leadership - Trade unions in India are led largely by people who
themselves are not workers. These outsiders are politicians, intellectuals andprofessionals
having no experience of work in industry. Outsiders continue todominate the trade unions
to advance their personal interests.
The existence of outside leadership has created the following problems:
• Since outsiders have links with political parties, they give greaterimportance to the interest
of their political parties. At times, they don notmind sacrificing the interest of their followers
for the achievement ofpolitical ends.
• Their approach towards labour problems is coloured by politicalconsiderations. This
hampers the growth of healthy employer-employeerelations. When there is an industrial
dispute, the leaders try to solve itthrough political pressures and interventions. This
naturally obstructs thegrowth of understanding and accommodation between workers
andemployers.
• Outsides leaders are responsible for the creation of multiple unions, incase they are not
satisfied with other union leaders, they would leave that union with a group of dissident
workers and form another rival union in the same plant. Such an approach kills the solidity
and solidarity of trade union movement.
5. Financial Problems -The financial position of the trade unions is weak becausetheir
average yearly income is very low and inadequate. The subscription rates arevery low.
Under conditions of multiplicity of unions, a union interested inincreasing its
membership figures keeps the subscription rate unduly low. As aresult, the funds with
the unions are inadequate and they cannot undertake welfareprogrammes for their
members. Another reason for the weak financial position ofunion is that large amounts
of subscription dues remain unpaid by the workers.Besides this, unions do not have
proper staff and organisation to collect subscriptions.

6. 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.