Industrial Relations

TRADE UNION

Trade Union :- Legal Frame

work and Structures
© Oxford University Press 2017. All rights reserved.
Trade Unionism:- Concept and Approaches:

The Trade union movement is an off shoot of industrialization . The

growth of modern industrial organisation involving use of modern
technology and employment of large number of the workers has
been followed by growth in trade unions throughout the world.

Concept:-

Dale Yoder has defined a trade union as continuing , long term

association of employees formed and maintained for the specific
purposes of advancing and protecting the interest of members in
their working relationship.
2) A trade union is a continuous association of wage earner for the purpose of
maintaining or improving the conditions of their working lives.
3) According to Flippo, “ A labor union or trade union is an organisation of workers
formed to promote , protect and improve, through collective action , the social,
economic ,and political interests of its members”.
4) According to the Trade Union Act, 1926 Sec 2(b):- Trade Union means
combination whether temporary or permanent , formed primarily for the purpose
of regulating the relations between workmen and employers or between workmen
and workmen ,or between employers and employers, or for imposing restrictive
condition on the conduct of any trade or business, and includes any federation of
two or more trade unions, provided that this act shall not affect –
i) Any agreement between partners to their own business.
ii) Any agreement between an employer and those employed by him as to such
employment.
iii) Any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft.
From the analysis of the above definitions, the following features of trade union
emerge:-
i) It is an organisation formed by employees or workers.
ii) It is formed on a continuous basis. It is a permanent body and not a casual or
temporary one.
iii) It is formed to protect and promote all kinds of interest- economic , political and
social of its members. The dominant interest with which a union is concerned is,
however, economic.
iv) It includes federation of trade unions also.
v) It achieves its objective through collective action and group action.

Thus, a trade Union is generally referred to as an organisation of

workers . It is voluntary, democratic and continuing organisation of
workers to protect their socio economic interest.
Functions of Trade Unions:-

1) The Basic Function of trade union is to build their organizations , both numerically
and financially.
2) Economic Function – Essentially implies bread and butter function.
3) Welfare function – Trade union should shoulder social responsibility.
4) Legal Function :- Trade unions should closely associate themselves with the law
making process, interpretation of laws and providing information about the various
laws for the benefits of their members.
5) Political Function :- Trade union should keep themselves abreast of the political
events.

Further trade union Functions divided into:

- Intra Mural Functions:- Includes all those activities which can be done within the
organization to promote and protect the interest of its members through collective
action. Trade union take efforts in humanizing the employment and working
condition in the organization and bargain with the employers for better wages ,
working condition , worker’s participation in the management, providing labour
welfare benefits, getting share in the profits of the organisation for the workers.
- Extra Mural Function :- are performed outside the organisation for the general welfare of their
members. They create the provisions for fair price shop , library , reading rooms, entertainment,
recreation etc. for the workers. Trade union also make available better education for workers
and their children, medical facilities for their families.

 Political Function :- Trade union play a very important role in the politics of the country today.
They send their representatives to legislative assemblies and the parliament through general
elections in order to safe guard their interest.

Objectives Of Trade Union:-

Union Concentrate their attention to achieve the following objectives:-
 Wages and salaries;- The trade union plays a vital role in bargaining the pay scales. The subject
which drew attention of trade union is wage and salaries. This item may related to policy
matters.

- Working Condition :- Trade Unions with a view to safeguard the health of the workers demand
the management to provide all the basic facilities such as lighting and ventilation , sanitation,
rest room, safety equipments 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.
 Discipline :- Trade unions not only conduct negotiations in respect of the items with
which their working conditions may be improved but also protect the workers from the
clutches of management whenever workers become the victims of management’s
unilateral acts and disciplinary policies.
 Personnel policies:- Trade union may fight against improper implementation of
personnel policies in respect of recruitment , selection, promotions, transfers, training
etc.
 Welfare :- Trade union are meant for the welfare of workers . Trade union works as a
guide , consulting authority and cooperates in overcoming personal problems of the
workers.
 Employee – Employer relations :- Harmonious relations between the employees and
employers are important for industrial peace. A trade union always strives for
achieving this objectives. However , the bureaucratic attitude and unilateral , disrupt
the relations between the workers and the management.
 Negotiating Machinery ;- Negotiations include the proposal made by one party and the
counterproposals of the other. This process continues until the parties reach an
agreement .Thus, negotiation are based on “give and take principles.
 Safeguarding Organizational health and the interest of the industries :- Organizational
health can be diagnosed by methods evolved for grievance redressal and technique
adopted to reduce the rate of absenteeism, labour turnover and developing systematic
grievance settlement procedure leading to harmonious relationship.
 Reasons for employees to join Trade union:-

Reasons for employee

to Join Union
Minimize
discrimination
Greater Bargaining Power

Sense of
participation

Sense Of Security

Platform for self

employment
Sense Of belongingness

Betterment of relationship
 Greater Bargaining Power :- The individual employee possess 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. It is not practicable to continually resign from one
job after another when he is dissatisfied . This imposes a great
financial and emotional burden upon the worker. The better course for
him is to join a union that can take concerted action against the union.
 Minimization Discrimination :- The decision regarding pay, work,
transfer, promotion , etc are highly subjective in nature . The personal
relationship existing between the supervisor and his subordinate may
influence the management. Thus, there is a chance of favoritism and
discrimination. A trade union can compel the management to
formulate to formulate personnel policies that press for equality of
treatment to the workers.
 Sense Of Security :- The employees may join the unions because of
their belief that it is an effective way to secure adequate protections
from various types of hazards and income security such as accident ,
injury, illness, unemployment, etc.
 Sense of belongingness :- Many employees join because their co
workers are the members of the union. At times an employee joins a
union under group pressure , if he does not , he often has difficult time
in his work place.
 Platform for self expression :- The desire for self expression is a
fundamental human drive for most people. All of us wish to share our
feelings , ideas, and opinions with others. So, Trade union is a plat
form for ever employee to do so.
 Betterment of Relationship:- Another reason for employees joining
unions is that employees feel that unions can fulfill the important need
for adequate machinery for proper Maintaince of employer –
employee relationship.
Problems / issues/ weakness of Trade Union:-

1.Outside political leadership:- The leadership of most of the trade union in India has been outside leadership
mainly drawn from political parities. As labour movement in India is deeply involved in the policies and
politicians , most of the politicians leaders are also drawn from Trade Unions.
For example:- Lok Nayak Jayprakash Narain , former president of India, V .V Giri , former Governor of A.P. all
worked for Trade Union .
Outside political leadership has been playing a pivotal role in Indian Trade Union movement due to the inability
of insiders to lead their movement.

2) Multiple union:- Multiple unionism both at the plant and industry level pose a serious threat to industrial peace
and harmony in India. The situation of multiple unionism is said to prevail when two or more unions in the
same plant or industry try to assert rival claims over each other and function with overlapping jurisdiction. The
multiple unions exist due to the existence of craft unions formation of two or more union in the industry.

3) Union Rivalry :- The formal basis for trade union organization provided by the Indian Trade Union Act
1926.This provision in law has led to the formation of multiplicity of unions and resulted in inter - union
rivalry in different industries. But Inter – union rivalry breaks the very purpose of Trade Unions by weakening
the strength of collective bargaining .

4) Small size of Union Membership :- Size of membership of trade union determines their strength and financial
soundness which in turn determines the activities undertaken by them and their ability to protect employees
interest. Size of membership and successful functioning of trade union are interrelated and interdependent .
The size of membership of trade union in India over the years has been declining and consequently the unions
face the problems of small size.
5) Poor Financial Position:- Sound Financial position is an essential ingredient for the
effective functioning of trade unions; because in the process of rendering service or
fulfilling their goals , trade union have to perform a variety of functions and organize
program which requires enormous financial commitments, hence it is imperative on
the part of the trade union to strengthen its financial solvency.
But, it is felt that the income and expenditure of trade union in India over the years is
such with few exceptions, that the financial position of the unions are generally
weak. The primary source of income of the union is membership subscription . The
other sources of income are donations , sale of periodical etc.
6) Inactive Functioning :- Due to poor financial position trade union are not able to
function actively. Poor financial position also negatively affects the morale of the
labour which further decreased the activity of the union.
7) Victimization:- pressurizing an employee unequally or in an obviously
discriminatory manner for the sole reason of his connection with union or his
particular union activity. The word victimization means that a certain person has
become a victim in other words that he has been unjustly dealt with.
Remedies/ Measures to strengthen Trade Unions:-
Trade unions can be strengthened through various remedies/ measures which are as
follows:-
1) Micro to Macro Focus :- Trade Union need to widen their role from mere wage,
incentive, and bonus bargaining agent to a body concerned with well being of the
company. They must show interest in sharing company related information,
Balance sheet, technological , market related trends information, balance sheet,
technological, market related trends, competitor position, customer trends.
2) Bargaining to Share :- Trade unions must show willingness to share responsibility ,
risk and privileges of managing the company in place of giving- taking vicious
circle.
3) Grooming Trade Union Leadership :- Trade unions must focus on imparting the
latest knowledge and skills to trade union representatives so that they can
effectively unions in changing scenario and also participate in management of the
company.
4) Conflict To collaboration :- Trade Union need to perceive relationships between
management and unions as collaborative rather than conflictive since the ultimate
interest is the same. i:e effective performance of the company.
5) Development role :- Unions must emphasize employee development- they need to concentrate on
employees developmental issues like continuous skill up gradation/ multiskilling, career management
and flexible work practices as a counter strategy for downsizing.

6) Enhancing Union Influence :- TU must forge collaborations and mergers in place of multiple unions.

7) Proactive regulation to self sustenance :- TU must change the mind set to pool resources and strengthen
to sustain and grow on their own instead of looking towards the state for help in the form of legislation
and wage board.

8) Openness and Transparency :- TU must be managed with openness and transparency so that they can
prove trustworthy and increase confidence of employees upon themselves.

9) Effective Utilization of alternative Forums :- Trade Unions must effectively avail participation forums
like quality circles, works committees suggestion schemes, Joint management forums, and plant level
committees instead of confining to conventional collective bargaining forums.

10) Accept, share, and Grow:- Accept as a flexible work practices, share as a part of the management of a
company, Grow as a partner.
REGISRATION OF TRADE UNION
 Trade Union which is registered shall be a body
corporate ( means separate legal entity of trade
Union) under the name it has been registered. Trade
Union have Perpetual Succession which means the
existence of the Union or the continuation with
regardless of any death, change in membership etc. and a
common seal.
RIGHTS & LIABILITIES OF REGISTERED
TRADE UNION

 Objects on which general funds may be spent

 Constitution of a separate fund for political purposes
 Criminal conspiracy in trade disputes
 Immunity from civil suit in certain cases
 Enforceability of agreements
 Right to inspect books of Trade Union
 Rights of minors to membership of Trade Unions
16
Definition of Recognition:
A union must be recognised before it may effectively represent any employees. Once a
union is recognised it serves as the bargaining agent for the workers in a particular
bargaining unit. An employee may not circumvent the union, because recognition entails
willingness ‘to negotiate with a view to striking a bargain and this involves a positive
mental decision.
Need for recognition:
Recognition of trade union is the backbone of collective bargaining. It has been debated
time and again. But inspite of the government stated policy to encourage trade unions,
there is no enforced central legislation on this subject. There are however voluntary code
of discipline and legislations in some states
Definition of Collective bargaining as the ‘performance of the mutual obligation of the
employer and the representative of the employees to meet at reasonable times and confer
in good faith with respect to wages, hours, and other terms and conditions of
employment’. absence of any central legislation, management in several states have
refused to recognise a trade union mainly on five grounds:
(1) most of the office bearers of the union were outsiders,
(2) and sometimes, those disapproved by management, particularly politicians and ex-
employees;
(3) the union consisted of only small number of employees;
(4) there were many rival unions in existence; and
(5) the trade union was not registered under the Trade Unions Act,
1926.
WHAT IS RECOGNITION?
 Recognition means the expressed recognition of a registered trade union by
an employer or by an employers association for the purposes of collective
bargaining. 
 Recognition is different from registration.
 Recognition is provided to that union which comprises of more than 50 per
cent of the employees in that establishment as its members.
 It is the employer and only the employer, who awards recognition to one or
more unions, or refuses such recognition.