AMIT KHAWAS

ASSISTANT PROFESSOR (SOCIOLOGY)

INDIAN INSTITUTE OF LEGAL STUDIES

BA/LLB FIVE YEAR 1ST SEMESTER

TRADE UNION

Meaning:

Trade unions are a major component of the modern industrial relations system. Trade unions

are essential features of industry in every country. Trade unions emerged as reaction to the

factory system and capitalized society. In early stage of industrialization, working class in

absence of legal protection felt exploited at the hands of employers. Workers joined hands to

protect their interests through collective action. A trade union is, thus organized expression of

the needs, aspirations and attitudes of the working class. All trade unions have objectives or

goals to achieve, which are contained in their constitution and each has its own strategy to

reach those goals.

DEFINITIONS:

According to Sidney and Beatric webb; A trade union is a continuous association of wages

earners for the purpose of maintaining and improving the conditions of their working lives.

According to Lester, Trade union means an association of workers in one or more

occupations an association carried on mainly for the purpose of protecting and advancing the

members economic interests in connection with their daily work.

the basis of collective strength to secure the interest of workers

According to S.D. Punekar

A trade union is a monopolistic combination of wage earners who as individual producers are

complementary to one another but who stand to employers in a relation of dependence for the

sale of their labour and production, and that the general purpose of association is in view of

that dependence to strength their power to bargain with the employers or bargaining

collectively.

According to British trade union act

A trade union is a combination with the main objective of regulating the relation between

workmen and masters for imposing of restrictive conditions on the conduct of any trade or

business and also provision to members.

According to Indian Trade Union Act, 1926, a trade union is any combination, whether

temporary or permanent, formed primarily for the purpose of regulating the relations between

workmen and the employers, or between workmen or workwomen, between employers or for

imposing restrictive conditions on the conduct of any trade or business, and includes any

federation of two or more trade union.

CHARACTERISTICS OF FEATURES OF TRADE UNION

1. The trade union is an association either of employers or employees or of independent

workers.

2. A trade union is a continuing or permanent rather than a temporary or casual

combination.
3. Membership of a trade union is voluntary. Generally, there is no legal or other

pressure to join a trade union and a person can join or leave the union on his free will.

4. A trade union also perform political and ancillary functions

5. Members of trade union have common interests and problems, which motivates them

to unite. A seek to regulate relations between employers and workers.

6. Trade union always acts through united action of members to protect and promote

their economic and other interests.

7. A trade union is a sub-system of the social system. Therefore, its character undergoes

change with change in economic, social, legal and political conditions in the country.

A union functions collectively to protect and promote the interests of its members

within a given socio-economic system together in a body.

OBJECTIVES OF TRADE UNIONS

The main objectives of trade unions are as follows:

1. To secure for workers fairer wages in the light of cost of living and the prevailing

standards of living.

2. To demand the management to provide all the basic facilities such as lighting and

ventilation, sanitation, rest rooms, safety equipment’s while discharging hazardous

duties, drinking water, refreshment, minimum working hours, leave and rest, holidays

with pay, job satisfaction, social security benefits and other welfare measures.

3. To win recognition for workers that they are equal partners with management in the

task of production.

4. To assure the workers a share in the increased profitability of industry through

payment of adequate bonus.

5. To ensure security of employment by resisting retrenchment.

7. To secure for workers a say in management and industry democracy therby bringing

about a new social order.

8. To protect the larger interest of the society by assisting in the improvement of trade

and industry.

9. To offer responsive co-operation in improving levels of productions, productivity,

discipline and quality.

10. To enlarge opportunities for promotion and training.

FUNCTION OF TRADE UNION

Trade unions perform several functions to achieve their objectives. The main functions of

trade are as follows:

1. Trade unions safeguard workers against all sorts of exploitation by the employer and

political parties. A union provides protection from unfair labour practices and

atrocities of management. It also tries to revise the status of workers in industry and

society.

2. Unions attempt to secure for workers fair wages, proper working conditions and

welfare facilities like health, housing, reaction and social security so as to ensure

desirable living standards for them.

3. Collective bargaining with management to settle terms and conditions of employment.

4. Advice the management on personal policies and practices

5. Taking up the individual and collective grievances of the workers with management.

6. Trade union work for achieving a better say of workers in the management of matters

which directly influence the interests of workers.

demands of workers. During strike the union may provide financial land other help to

members when the employers stop wages.

8. Make arrangements for the education of workers and their family members.

9. Some unions provide recreation, sports and other welfare facilities for their members.

10. Trade union represents workers in various national and international forums such as

Indian labour conference and international labour organization (ILO)

11. Secure legislative protection for the workers from the government.

12. A trade union serves as a link between employers and workers so as to develop

mutual understanding and cooperation between the two sides.

The function performed by the trade union may be broadly classified into 3 categories

1. Militant Functions: The chief purpose of the trade unions is to secure better

conditions of work and employment. The unions also endeavor to secure some share

in productivity gains and a greater share in the management or even control of

industry. When the unions fail to accomplish these ends by the method of collective

bargaining and negotiations, they adopt agitation methods and put up fight with the

management in the form of strike, boycott, gherao etc. – a situation that often turns

into fierce antagonism.

2. Fraternal 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 causalities, provision of education, recreational and

housing facilities, provision of social and religious benefits etc.

union leaders and the members.

THEORIES OF TRADE UNION

Trade unionism is born out of industrialization which caught momentum after industrial

revolution in England during the mid-nineteenth century. The evolution of the trade union has

been interpreted in different ways by different authorities. Their views are expressed in the

form of ideologies, approaches, theories etc.

John T. Dunlop has been view that a useful theory of trade union must provide answers

to the following questions:

1. What factors lead to the organization of a union?

2. What conditions are favourable to bring a union into existence?

3. What different patterns of growth goals of the unions? How will these affect the

political, economic and social structure of the country in the long-run?

To these Arthur D. Butler added two more questions namely

1. How do unions decide which goals to seek through collective bargaining? When a

union knows it cannot win everything at a particular bargaining session, how does it

decide whether to fight harder for wage increases or for a better grievance procedure?

2. How do unions decide which techniques to use in accomplishing their goals? What

determines whether unions will select economic or political methods?

To answer these questions, the following theories of labour movement might prove useful:

1. CLASS STRUGGLE THEORY OF KARL MARX

communism. In the eyes of Marx, the organized labour movement is an

intermediate step in the class struggle, the fight of power by the working class to

overthrow the capitalist class. Kalmarx traced the origin of trade unionism to the

growth of industrial capitalism. In his views, trade unions represent a prime

instrument of class struggle between proletarian and capitalist. To Marx the trade

union is an ‘organizing centre’. Without organization, workers compete with each

other for available employment. Trade union developed out of the attempts of the

workers to do away with this competition for the purpose of obtaining at least

such contractual conditions as would raise them above the status of bare slaves.

The labor organization provides the locus of the working class towards a change

in the structure of the society, and its political emancipation.

2. Webb’s theory of industrial Democracy

According to webb trade unionism is an extension of democracy from political

sphere to industrial sphere. According to him trade union movement is not an

instrument of revolution to overthrow the capitalist order. In fact they saw the

solution of class conflict in equality of bargaining power and collective

negotiation. It was merely to eliminate industrial autocracy and replace it with

industrial democracy.

3. Mahatma Gandhi’s Sarvodaya theory

Mahatma Gandhi philosophy based upon the sarvodya principles of Truth, Non-

violence and Trusteeship, in which class harmony prevails. According to

Mahatma Gandhi, unions are not anti-capitalistic organizations. They are in the

least degree political. He considered trade unions as essentially reformist

that capital and labour are not antagonistic but are supplementary to each other.

CLASSIFICATION OF TRADE UNION

The trade union may be classified according to the purpose for which they are constituted.

Such union may be divided into two categories

1. Reformist unions

These unions are those which aim at the preservation of capitalist society and

the maintenance of the usual employer-employee relationship, eliminating of

competitive system of production. They neither seek comprehensive change

nor wish to destroy the existing economic, political and social structure of the

country. They simply try to modify this n accordance with the desire and

requirement of their members, keeping in view the current moves of the

society. For example they may wish to increase labour’s share in increased

production or they may aim at improving working conditions but enforcing

safety measures, they may try to generate increased purchasing power,

education and insurance programmes.

HOXIE has further subdivided the reformist unions into the following two

types:

1. Business unions: are the forms of labor cooperation in which employees

enter the successful business relationships with employers. Such unions

represent workers in collective bargaining with their employer.

2. Friendly unions or uplift unions: friendly unions or uplift unions are

idealistic in nature and aspires to elevate the moral, intellectual, and social
 life of workers and advocates idealistic plans for social regeneration. They

are idealistic in nature, conservative and law binding.

Revolutionary unions

These unions aim at destroying the present structure completely and replacing

it with new different order which they consider is better. They try to replace

capitalistic industry with a socialistic or communistic type of industrial set of.

The revolutionary unionism is also 4 types

1. Anarchist unions: aim at destroying the existing economic system by

revolutionary means.

2. Political unions: aim at changing power through political action. They

aim at enactment of laws eliminating the power of capitalist and giving

effective power to workers.

3. Predatory unions: These unions do not subscribe to any ideology but

believe in ruthless pursuit of the matter in hand for which they can follow

any means without bothering for ethical or legal consideration.

Trade Union Movement in India

The growth and development of the labour movement, and for that part of the trade unions, in

India, can be divided into following periods, each of them revealing different tendencies that

mark it from others.

1. Social welfare period, from 1975 to 1918

War. The development of industries led to large scale production on the hand

and social evils like exploitation of women and child labour and deplorable

working conditions, the government’s attitude of complete indifference in

respect of protection of labour from such evils. The worst features of

industrialism marked the history of early factory system in India. In certain

respects, conditions of labour in India factories were worse than in the early

factories in England. There was no attempt at collective bargaining or at

obtaining redress through concerted action. Humanitarians, Sarobjee Shapurji

Bengali (1875) and N.M Lokhanday (1884), who themselves were factory

workers, drew attention of the government towards the worst condition of the

labourers and demanded an early legislation to protect their interests. It was

during this period Indian Factories Act was passed in 1881. These acts

introduced some improvements in regard to shorter hours, and conditions of

worker for children and women labour. These entire periods has been termed

as the period of temporary organizations and a period of labour movement

rather than that of the trade union.

2. Early Trade Union Period (1918-1924)

The year 1918 was an important one for the Indian Trade Unions Movements.

It marked the start of a new era, an era of growth and one in which the

leadership of the trade unions was to pass from the hands of the social workers

into the hands of politicians, doctors and advocates. The following contributed

to the trade union movement

a) The industrial unrest grew up as a result of economic difficulties created

by war (world war-1)

awakening among the workers demanding racial equality with their British

employers.

c) The success of the Russian Revolution of 1917 created revolutionary wave

of ideas and a new self-respect and added the feeling of class-

consciousness among labourers.

d) The establishment of the International Labour Organization (ILO) 1919

aims at promoting social and economic progress and improving labour

conditions. It gave dignity to the working class.

e) The non-cooperative movement of Gandhi during 1920-21 and his support

to the demands of industrial labour

At this time many unions were formed in different industries at different

places. The madras textile was the first union in the modern sense formed in

1918 by B.P Wadia. In 1920, Spinner’s Union, as well as weaver’s union was

formed at Ahmedabad at the initiatives of Mahatma Gandhi.

The textile Labour Association was formed in 1920 at the initiative of

Mahatma Gandhi. All India Trade Union Congress was established under the

chairmanship of Lala Lajpat Rai in 1920.

3. Left- Wing Unionism Period (1924-1935); the third phase of the Indian labor

movement which may be called the period of left wing trade unionism started

in 1924 and lasted up to the year 1935. During this period there was

domination of communism in India. In 1924, violent and long drawn strikes

led to the arrest, prosecution, imprisonment of many communist leaders. In

1926, the Indian labour Union Act was passed. The AITUC was divided and
new organization i.e. Indian Trade Federation came into existence. During

1931 at Delhi National Federation of Labour was established and including the

Indian Trade union Federation, was given a new name i.e. National Trade

Union Federation.

4. Trade union’s unity period (1936-38)

This is the period of unity of labor movement and evolution of rapid

revolutionary procedures. Labour unions increased from 101 in 1935 to 169

and more strikes occurred during this period.

5. Second World War period ( 1939-1947)

Trade unions became very strong during this period. War time price rise led to

awakening among workers. The development of collective bargaining capacity

and arbitration policy led to the growth of unions at rapid pace and their

number of member grew. The government and employers were cooperative

with the union. Even then, trade unions had less unity. There were differences

of opinion. During this period the Industrial Relations Act, 1946 was passed

and Industrial Disputes Bill was proposed.

6. Present Scenario of Trade Union Movement

The Indian trade unions have come to stay now not as ad hoc bodies or strikes

committees but as permanent features of the industrial society. The political,

economic, historical and international factors have all helped the unions to get

legal status and they now represent the workers. The union have achieved a

remarkable status where their voices are heard by the government and the
employers. The unions have created for them a platform to air their views,

policies and ideologies both at state level and national level.

The central trade unions

The largest federation in the country represent labour at the national level and

are known as Central Trade Union. The following is a list of national level

central trade union as recognized by the ministry of labour.

1. ALL INDIA CENTRAL COUNCIL OF TRADE UNIONS (AICCTU-);

politically attached to communist party of India (Marxist-leninist)

liberation.

2. ALL INDIA TRADE UNION CONGRESS (AITUC-1920); oldest trade

union federation in India.

3. ALL INDIA UNITED TRADE UNION CENTER (AIUTUC-1958)

4. BHARATIYA MAZDOOR SANGH (BMS-1955)

5. CENTRE OF INDIAN TRADE UNION (CITU-1971)

6. HIND MAZDOOR SABHA (HMS-1948)

7. INDIAN NATIONAL TRADE UNION CONGRESS (INTUC-1947)

8. LABOUR PROGRESSIVE FEDERATION (LPF)

9. NATIONAL FRONT OF INDIAN TRADE UNIONS (NFITU-1969)

10. SELF EMPLOYED WOMENS ASSOCAITION (SEWA-1972)

11. TRADE UNION COORDINATION CENTER (TUCC)

12. UNITED TRADE UNION CONGRESS (UTUC)

Leadership has been defined by different scholars and one definition interprets that a leader is

the one who has followers. So a good leader directs, motivates, counsel and help people to

achieve their goals. In this context, the main role of the leader is to make the union effective

by improving the terms and conditions of employment of the workers and also by being

concerned with the viability of the enterprise. Indian trade union movement from its very

inception was closely associated with the freedom struggle of the country and as such was

dominated by national leaders. The leadership of most of the trade unions in India has been

outside leadership mainly drawn political parties.

Problems of trade union in India

• Finance is the most important resource to carryout different not only industries but

also of unions. Finances of many trade unions are quite poor. The average income of

the trade union has been low not because of the poverty of workers but because of

others factors. Fundamental cause of poor financial state of trade unions is the small

size of the union and subscription are not collected promptly or paid by members only

when they have problem.

• One of the biggest problems which the country trade union movement faces is the

influence of political parties. Most popular trade unions in India are affiliated to

certain political parties. These political parties are only keen on making every

grievance of the working class a political issue to attain political gains. As a result

problem only gets wide publicity and remain unsolved.

• The multiplicity of unions emerging form political affiliation and led by external

political leaders brought to fore the politics of many and the dynamics associated with
 it. Unions became competitive and the survival of the fittest led to inter-union

conflicts and mutual accusations being traded freely.

• Indian trade unionism has also demonstrated the intra-union rivalry coming to the

forefront and hampering production and industrial relations.

References

1.) https://www.hilarispublisher.com/open-access/the-21st-century-trade-union-challenges-in-
india-2168-9601.1000104.pdf

2.) https://www.ukessays.com/essays/commerce/understanding-the-objectives-of-trade-
unions-commerce-essay.php

3.) Trade Unions in Asia: An economic and sociological analysis.