Trade Unions

Meaning Trade union

Trade unions are associations of workers or organization formed
together by labour, workers or employees to achieve their demands
for better conditions at their work atmosphere.

These unions exist to deal with problems faced by laborers, these

problems maybe of any nature such as those concerning the pay,
unfair work rules, timings and so on.
why do workers join unions
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
Minimize Discrimination
He 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.
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.
why do workers join unions(Cont.)
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
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.
why do workers join unions (Cont.)
Platform for self-expression

The desire for self-expression is a fundamental human drive for most people. 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.

Betterment of relationships

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.
Classification of Trade Unions
Classification based on ideology
a. Revolutionary Unions: Believe in destruction of existing social/economic
order and creation of a new one. They want shift in power and authority and
use of force - Left Unions.

b. Reformist or Welfare Unions: Work for changes and reforms within

existing socio-political framework of society - European Model.

c. Uplift Unions: Advocate extensive reforms well beyond the area of working
condition i.e., change in taxation system, elimination of poverty etc.
Classification of Trade Unions (Cont.)
Classification based on trade
 Many unions have memberships and jurisdictions based on the trades they
represent. The most narrow in membership is the craft union, which
represents only members certified in a given craft or trade, such as pipe
fitting, carpentry, and clerical work. Although very common in the western
world, craft unions are not common in countries like India and Sri Lanka.

 At the other extreme in terms of the range of workers represented in the

general union, which has members drawn from all trades. Most unions in
India and Sri Lanka are in this category.
Classification of Trade Unions (Cont.)
Another common explanation of unions based on trades or crafts is that
between so called blue-collar workers and white-collar workers.
Unions representing workers employed on the production floor, or
outdoor trades such as in construction work, are called blue-collar unions.
Similarly, those employees in shops and offices and who are not in
management grades and perform clerical and allied functions are called white-
collar workers.
In addition, trade unions may be categorised on the basis of the industry
in which they are employed. Examples of these are workers engaged in
agriculture of forestry: hence agricultural labour unions or forest worker
unions.
Classification of Trade Unions (Cont.)
Classification based on agreement

a. Closed Shop: Where management and union agree that the union would have
sole responsibility and authority for the recruitment of workers, it is called a
Closed Shop agreement. The worker joins the union to become an employee of
the shop.

b. Union Shop: Where there is an agreement that all new recruits must join the
union within a fixed period after employment it is called a union shop.
Classification of Trade Unions (Cont.)
Classification based on agreement (Cont.)

Preferential Shop: When a Union member is given preference in filling a

vacancy, such an agreement is called Preferential Shop.

Maintenance Shop: In this type of arrangement no compulsory membership in

the union before or after recruitment exists. However, if the employee chooses to
become a member after recruitment, his membership remains compulsory right
throughout his tenure of employment with that particular employer. This is called
a maintenance of membership shop or maintenance shop.
Classification of Trade Unions (Cont.)
Classification based on agreement (Cont.)

Agency Shop: In terms of the agreement between management and the union
a non union member has to pay the union a sum equivalent to a member‟s
subscription in order to continue employment with the employer. This is
called an agency shop.

Open Shop: Membership in a union is in no way compulsory or compulsory

either before or after recruitment. In such organisations, sometimes there is
no union at all. This is least desirable form for unions.
 Theories to trade Union
There is no one theory of Trade Unionism, but many contributors to these theories are
revolutionaries like Marx and Engels, Civil servants like Sydney Webb, academics like
Common and Hoxie and labour leader like Mitchall. Important theories of trade unionism are

1. Political Revolutionary Theory of Labour Movement of Marx and Engels: This

theory is based on Adam Smiths theory of labour value. Its short run purpose is to eliminate
competition among labour, and the ultimate purpose is to overthrow capitalist businessman.

2. Webb's Theory of Industrial Democracy: Webb‟s book „Industrial democracy‟ is the

Bible of trade unionism. According to Webb, trade unionism is an extension of democracy
from political sphere to industrial sphere. He considered collective bargaining as the process
which strengthens labour.
 Theories to trade Union (Cont.)
3. Cole’s Theory of Union Control of Industry: Cole‟s views are given in his book “World
of Labour” 1913. His views are somewhere in between Webb and Marx. He agrees that
unionism is class struggle and the ultimate is the control of industry by labour and not
revolution as predicted by Marx.

4. Common’s Environment Theory: He was skeptical of generalizations and believed only

that which could be proved by evidence. He agreed that collective bargaining was an
instrument of class struggle, but he summarized that ultimately there will be partnership
between employers and employees.

5. Mitchell’s Economic Protection Theory of Trade Unionism: Mitchell, a labour leader,

completely rejected individual bargaining. According to him unions afford economic
protection to.
 Theories to trade Union (Cont.)
6. Perlman’s Theory of the “ScarcityConsciousness” of Manual Workers:
He rejected the idea of class consciousness as an explanation for the origin of
the trade union movement but substituted it with what he called job
consciousness According to him, „working people in reality felt an urge
towards collective control of their employment opportunities, but hardly
towards similar control of industry.‟.
7. Simons Theory of Monopolistic, anti-Democratic Trade Unionism: He
denounced trade unionism as monopoly founded on violence. And he claimed
monopoly power has no use save abuse.
8. Tannenbaum’s Theory of Man Vs. Machine: According to him Union is
formed in reaction to alienation and loss of community in an individualistic
and unfeeling society.
9. Hoxies Functional Classification of Unionism: He classified Unionism on
the basis of their functions.
 Problems of trade unions
1. Trade Union leadership:
2. Multiple unions:
3. Union Rivalry:
4. Weak financial position
5. Low membership:
6. Heterogeneous(diverse ) nature of labour
7. Lack of Interest:
8. Absence of paid office bearers:
9. Other problems:
 Illiteracy:
 Uneven growth:
Functions of trade unions
Trade unions perform a number of functions in order to achieve
the objectives. These functions can be broadly classified into three
categories:

1. Militant(revolutionary) Functions

2. Fraternal Functions

3. Social Functions

4. Political functions
 Militant Functions
When the unions fail to accomplish their 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‟s, 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:

• 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

Fraternal Functions
They take up welfare measures for improving the morale of workers and generate
self confidence among them. They also arrange for legal assistance to its members, if
necessary. Besides, these, they undertake many welfare measures for their members, e.g.,
education of children, library, reading-rooms, in-door and out-door games, and Some
trade unions even undertake publication of some magazine or journal.

• 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

 Social Functions
Besides the main economic functions consisting basically of organising unions and

improving their terms and conditions of employment to enable workers to meet their

physical needs, some unions have now started undertaking and organising welfare

activities and also providing variety of services to their members and sometimes to the

community of which they are a part, which may be grouped under following heads:

1) Welfare activities improve the quality of work life ,cooperative credit societies,

cooperative stores, cultural programmes, banking and medical facilities and training

for women
2) Education: awareness in the environment around them, enhancement of their knowledge

particularly in regard to issues that concern them, their statutory and other rights and

responsibilities, workers‟ participation in management.

3) scheme, and procedure for redressing their grievances. Some central union

organizations are also assisting the Government in implementing the Workers‟ Education

Scheme.

4) Publication of periodicals, news letters or magazines for establishing communication

with their members, making the latter aware of union policy and stand on certain principal

issues and personnel matters concerning members, such as births, deaths, marriages,

promotion and achievements

5) Research: Of late, this is gaining importance and is intended mainly to provide

updated information to union negotiators at the bargaining table. Such research

is to be more practical than academic, concerning problems relating to day-today

affairs of the union and its activities and union and management relations.

Political functions:
These functions include affiliating the union with a political party, helping the

political party in enrolling members, collecting donations, seeking the help of

political parties during the periods of strikes and lockouts.

Measures to strengthen trade unions
The following are some of the measures to minimize trade union problems
and to strengthen the Trade Union Movement of India.

a) United Labour Front Trade unions should form a sort of labour party and
all the trade unions in the country should be affiliated to it. It gives adequate
strength to the trade unions both industry and Parliament

b) Efficient Leadership Outside political leadership has developed due to

the absence of internal leadership. Outside leadership is the main cause for
the multiple problems of the trade unions. These problems can be eradicated
through the development of leadership talents from within.
c) Membership Fees In order to make members updated Trade unions must
organize continuous training and developmental programmes. Future needs
smart and responsive Trade Unions, if they have to survive and thrive.

d) The Trade Union Act should be amended in order to avoid dual

membership.

e) There should be legal provision for the recognition of the representative

union.

f) Unions should not intervene in day-to-day matters. They must focus on

important issues affecting workers.
Growth of unions in India
 First workers organisation was the Bombay Millhands Association
in the year 1890 by N M Lokhande himself a worker
 Factories act 1891 was passed –attempts to organize labour in India
 Periods of 1924 –1935 era of revolutionary trade union movement
in India
 Mahatma Gandhi led to the growth of non violent trend in
nationalist struggle
 Setting up of ILO In 1919 gave it an international color
 The All India Trade Union Congress (AITUC) was formed in 1920
 Contd….
In 1926 Trade Unions Act gave legal status to the registered trade
unions and conferred on them a measure of immunity from civil suits
and criminal prosecution
An important landmark in the history of Trade union movement in India
All India Trade Union Federation(AITUF) was formed by moderate
groups within the AITUC
Further splits happened to form the All India Red Trade Union
Congress
Efforts to unify were made
All India Red Trade Union Congress merged with AITUC
 Contd…..
The industrial Disputes Act was formed in 1929

Soon after independence and partition of India it adversely affected

the Indian Trade union movement in India

Socialists group formed the Hind Mazdoor Sabha in calcutta they

neither approved AITUC nor INTUC

The united Trade union congress was formed in 1949 by members

who could not agree with the principles and Objectives of the HMS
The current scenario
 Huge multiplicity of unions
 75 % of the unions now are with Members less than 500
 Membership with more than 200 members constitute only 4% of the
total unions
 Politicization of trade unions rather than clinging(sticking ) to
goal of collective bargaining and negotiation with the
management
 Outside leadership in Trade unions – professional politicians and
lawyers involving .
PROCEDURE OF REGISTRATION OF TRADE UNION

• At least 7 members should be present for an application

• It should in a prescribed form ,fees and should be registered under

the Registrar of Trade Unions

• Should be accompanied by a copy of the Rules of TU

• Certificate of Registration is issued as soon as TU has been duly

registered under the Act 1926
 Rights of trade unions
 The right to raise issues with the management,
 Right to collect membership fees within the premises of the organization,
 Ability to demand check-off facility,
 Ability to put up a notice board on the premises for union announcements,
 Ability to hold discussions with employees at a suitable place within the
premises
 Right to discuss members‟ grievances with employer,
 Ability to inspect before hand a place of employment or work of its
members,
 Nomination of its representatives on committees formed by the
management for industrial relations purposes as well as in statutory
bipartite committees.
At present there are twelve Central Trade Union
Organizations in India:
 All India Trade Union Congress (AITUC)
 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Kisan Panchayat (HMKP)
 Hind Mazdoor Sabha (HMS)
 Indian Federation of Free Trade Unions (IFFTU)
 Indian National Trade Union Congress (INTUC)
 National Front of Indian Trade Unions (NFITU)
 National Labor Organization (NLO)
 Trade Unions Co-ordination Centre (TUCC)
 United Trade Union Congress (UTUC)
 United Trade Union Congress - Lenin Sarani (UTUC – LS)
Assignment 2
• Write a note on Registration of trade unions