Union Management Relations: Deepali Sadavarte Shweta Kumar Monisha Mahajan Maitreyee Chandane

Union Management
Relations
Deepali Sadavarte
Shweta Kumar
Monisha Mahajan
Maitreyee Chandane
Definition of Trade Union
Indian Trade Unions Act 1926, defined trade union as
“any combination of persons,whether temporary or
permanent,formed primarily for the purpose of
regulating the relations between workers and
employers,or between workers and workers,and for
imposing restrictive conditions on the conduct of any
trade or business,and includes the federation of two or
more trade unions.”
Characteristics of Trade
Union
 It is an association either of employees or employers or of
independent workers.
 It is a relatively permanent combination of workers.
 It is an association of workers engaged in securing

economic benefits for its members.
 The character of trade union has been constantly changing.

Principles of Trade
Unionism
 Unity is strength
 Equal pay for equal

work
 Security of service
Union Structure
The structure can be classified into four types
 Craft Union: workers of the same craft or category of the job
form into an union
 General Union: workers of any industry,any region and of

any job form into one union
 Industrial Union: workers of different categories form into a

union
 Federation &Confederation: industrial unions,either of

same industry or of the different industry may form into an
association in order to improve their strength.
Why do Workers Join A
Trade Union?
 To get economic security
 To improve their bargaining

power and balance it with that
of management
 To communicate their views

and frustrations to the
management
 To secure protection from economic
hazards beyond their control,eg-
illness,accident…
 To satisfy their social needs
 To satisfy their psychological needs
 To satisfy their needs for a sense of

belonging.
Functions of a Trade Union
Functions
militant fraternal political Ancillary
communication Welfare activities education research

Objectives
Wages and salaries
Working conditions
Discipline -
•To protect the worker’s from the management’s unilateral acts and
disciplinary policies;
•Penal Transfers
•Suspensions
•Dismals etc
Personnel policies
 Welfare
 Employee-employer relations
• Harmonious relations
• Bureaucratic attitude
• Unilateral thinking
• Negotiations
 Negotiating machine
‘GIVE AND TAKE RELATION’

 Safeguarding organizational health and
the interest of the industry.
How are the Objectives
Achieved
 Collective bargaining
 Union security UNION SECURITY
CLOSED SHOP UNION SHOP AGENCY SHOP
Grievance processing and handling

procedures
Negotiated Agreement
Arbitration
 Political pressure
through legislators
 Mutual insurance
• Common contributions
History
(EARLY PHASE)
N.M LOKHANDE -BOMBAY MILLHANDS ASSOCIATIONS
1890
AMALGAMATED SOCIETY OF RAILWAY SERVANTS OF
INDIA AND BURMA
1897
THE PRINTERS UNION ,CALCUTTA
1905
THE BOMBAY POSTAL UNION
1907
KAMGHAR HITVARDHAK SABHA
1910
 SOCIAL SERVICE LEAGUE
1910
A Modest Beginning
 World war I influenced the
growth of TU.
 International Trade
Organization -1919
 Madras Trade Union -1919
 Spinner’s Union
 Weaver’s Union
All India Trade Union
Congress
ALL INDIA TRADE
UNION CONGRESS
ALL INDIA TRADE

UNION FEDERATION (1929) ALL INDIA RED TRADE
UNION CONGRESS (1931)
INDIAN NATIONAL TRADE

UNION CONGRSS
HINDU MAZDOOR SABHA (1948)
UNITED TRADE UNION

CONGRESS (1949)
Trade Unions and their
Membership
Pocket book of Statistics 2003-2004
DETAILS 1988 1999 2000
1)No. of registered 61,199 64,040 65,286

workers’ unions
2)No submitting returns 7,291 8,061 7,224
3)Membership of union 7,229 6,394 5,417

submitting returns
4)Average member- 991 793 749
ship per union
TheTrade Unions Act,1926
and Legal Framework
 It legalize the formation of a T.U by allowing the
members the right to form and organize unions.
 Agree to abide by the provisions.
 If the existence is for more than 1 year then,an

application of the assets and the liabilities must be
submitted.
 Application contains:
• Names, occupations, Address
• Name Of The Union, Its Head Office
• Details About Office Bearers.
Status of A Registered
Union
 A corporate body.
 A common seal.
 Buy and hold movable and

immovable property.
 Enter into contracts with others.
 Sue and be sued in its name.

Cancellation of
Registration
 On the application by the union.
 Where the application was obtained by fraud or
mistake.
 Where the union has ceased to exist.
 Where it has willfully and after notice from the
Registrar contravened any provisions of the Act or
allowed any rule to continue in force which is
inconsistent with any provisions of the Act.
 Where the union has rescinded any rule providing for
matter, provision for which is required by Section 6.
 Where the primary objects of the union are no longer
in agreement with the statutory objects.
Obligations
 Allow anyone above the age of 15 years to be a

member of the union.
 Collect membership fees not less than 25 paisa per
month and per member.
 Specify that 50% of office bearers must be from the
persons actually employed.
 Maintain membership register.
 State the procedure for change of its name, merger
and its dissolution.
 Spend uniform funds for the purposes specified in
the act.
Rights
 Claim immunity from civil and criminal

prosecution for bonafide trade union activities.
 Create a political fund .
 Spend general funds on salaries of staff, other

expenses.
 Can represent workers to the works committee.

Liabilities
A registered union should maintain books of
account and a list of members.
Should keep books and the list open for inspection
by members
Should have office bearers who do not suffer from
the disqualifications prescribed under the T.U Act ,
1926.
Should submit statements of receipts, expenditure,
assets , liabilities.
Should give correct information to persons
intending to become members.
Conditions for Congenial
Industrial Relations
 Existence of strong,well organised and democratic
employees’ union
 Existence of sound and organised empolyers’ union
 Spirit of collective bargaining and willingness to

resort to voluntary arbitration
 Machinery for prevention and settlement of

industrial disputes
Collective Bargaining
 Preparation for negotiations
 Identifying bargaining
issues
• Wage related issues
• Supplementary economic benefits
• Institutional issues
• Administrative issues
 Negotiation
 Settlement and contract

agreement
 Administration of the
agreement
Settlement of disputes
 Conciliation-a process by which
representatives of workers and employers
are brought together before a third party
with a view to persuading them to arrive at
an agreement by mutual discussion
between them.
 Adjudication-a mandatory settlement of

disputes by labour courts or industrial
tribunals or national tribunals under the
industrial disputes act or under any other
corresponding state statutes.
 Voluntary arbitration-a
procedure in which a neutral
third party studies the
bargaining situation,listens
to both the parties and
gathers information,and
then makes
recommendations that are
binding on the parties.
Joint Consultation
 Works committee-a group wherein 100 or more no. of
people are employed, and there should be equal no. of
employer and employee representatives.
 Joint Management Council-it comprises of the

representatives of the management, technicians and workers.
Weaknesses of Trade
Union
Trade Union Leadership:
(Outside leadership, mainly drawn from political parties)
Reasons:
•Inability of insiders to lead their movement
• Low education standards.

• Poor command over English language.
• Low level of knowledge about labour

legislation.
•Unsound financial position.

Evil Effects:
 Outside leadership undermines the purpose of trade
union and weakens their authority.
 It is responsible for the slow growth of trade union.
 Internal leadership has not been developed fully.
 Most of the leaders cannot understand the worker’s

problems as they do not live the life of workers.
Measures to Minimize the Evil Effects of
Outside Leadership:
 Management should assure that the victimization

will be at zero level even if the trade unions are led
by INSIDERS.
 Extensive training facilities, in the the areas of

leadership skills, management techniques, and
programmes should be provided to the workers.
 Special leave should be sanctioned to the office

bearers.
 Multiple Union:
• It poses a serious threat to industrial peace and harmony in
India.
 Finance:
• Sound financial position is an essential ingredient for the
effective functioning of a trade union.
• In the process of rendering services or fulfilling their goals,

trade unions have to perform a variety of functions and
organize programmes which require enormous financial
commitments.
 Union Rivalry:
• Inter union rivalry
• Intra union rivalry
Other Problems
 Illiteracy
 Uneven growth of trade

unions.
 Heterogeneous nature
of labours.
 Lack of interest.
Recommendations of the
National Commission on
Labour
The number of outsiders in a trade union should be
limited to 30% in the case of trade unions whose
membership is drawn from a particular industry…….
All ex-employees should be treated as ‘INSIDERS’.
There shouldn’t be any BAN on ‘NON-EMPLOYEES’

holding positions in the executive committee of a trade
union.
 Steps should be taken to promote leadership from
among the members of the working class and enable
them to assume a responsible role in trade union
activity.
 Penalties may be legally provided to curb a

management’s policy of victimization and similar unfair
labour practices which prevent the emergence of
internal leadership.
 The registration of trade union should be cancelled

when –
• When its membership falls below the minimum prescribed for
registration
• It fails to submit its annual returns
• It does not rectify the defects in time when defective returns

are submitted.
 The application for re-registration from trade union

should not be considered within 6 months of the
date of the cancellation of registration.
 The membership fee for the trade union should

raised to 1 rupee/month.
References
 Mamoria,C.B(2002) Personnel Management:
Management of Human resources, Himalaya
Publishing House, Mumbai.
 Rao,P.S(2009) Essentials Of Human Resource

Management and Industrial Relations, Himalaya
Publishing House, Mumbai.

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Union Management

 It is a relatively permanent combination of workers.

 It is an association of workers engaged in securing

 The character of trade union has been constantly changing.

 Equal pay for equal

 General Union: workers of any industry,any region and of

 Industrial Union: workers of different categories form into a

 Federation &Confederation: industrial unions,either of

 To improve their bargaining

 To communicate their views

 To satisfy their social needs

 To satisfy their psychological needs

 To satisfy their needs for a sense of

militant fraternal political Ancillary

communication Welfare activities education research

‘GIVE AND TAKE RELATION’

CLOSED SHOP UNION SHOP AGENCY SHOP

Grievance processing and handling

 Madras Trade Union -1919

ALL INDIA TRADE

INDIAN NATIONAL TRADE

HINDU MAZDOOR SABHA (1948)

UNITED TRADE UNION

DETAILS 1988 1999 2000

1)No. of registered 61,199 64,040 65,286

3)Membership of union 7,229 6,394 5,417

 Agree to abide by the provisions.

 If the existence is for more than 1 year then,an

 Buy and hold movable and

 Enter into contracts with others.

 Sue and be sued in its name.

 Allow anyone above the age of 15 years to be a

 Claim immunity from civil and criminal

 Create a political fund .

 Spend general funds on salaries of staff, other

 Can represent workers to the works committee.

 Existence of sound and organised empolyers’ union

 Spirit of collective bargaining and willingness to

 Machinery for prevention and settlement of

• Supplementary economic benefits

 Settlement and contract

 Adjudication-a mandatory settlement of

 Joint Management Council-it comprises of the

• Low education standards.

• Low level of knowledge about labour

•Unsound financial position.

 It is responsible for the slow growth of trade union.

 Internal leadership has not been developed fully.

 Most of the leaders cannot understand the worker’s

 Management should assure that the victimization

 Extensive training facilities, in the the areas of

 Special leave should be sanctioned to the office

• In the process of rendering services or fulfilling their goals,

 Uneven growth of trade

All ex-employees should be treated as ‘INSIDERS’.

There shouldn’t be any BAN on ‘NON-EMPLOYEES’

 Penalties may be legally provided to curb a

 The registration of trade union should be cancelled

• It does not rectify the defects in time when defective returns