Trade union: Definition

Trade union can be defined as an

organized association of workers in a
trade, group of trades, or profession,
formed to protect and further their rights
and interests.

“A Trade Union is an organisation of workers,

acting collectively, who seek to protect and
promote their mutual interests through
collective bargaining”.
Theories of Trade Unionism

The five types of theories of trade

unionism are as follows:
 Revolutionary Theory
 Evolutionary Theory
 Theory of Industrial Jurisprudence
 Rebellion Theory
 The Gandhian Approach.
Theories of Trade Unionism…
cont’d

1. Revolutionary Theory:
 The revolutionary approach/theory of trade
union is developed by Karl Marx “This theory is
also known as “the theory of class war and
dialectical materialism”. According to Marx,
trade union was the foremost organising centre
to provide locus for streamlining the forces of
working classes The trade unions are, for
Marx, the instruments to overthrow capitalism.
Theories of Trade Unionism…
cont’d

…. Revolutionary Theory: (cont’d)

These are, thus, prime instruments of the class

struggle between proletarian workers and
capitalist businessmen. Marx advocated that
the working class must not divert itself from its
revolutionary programme because it is labour
struggle only that can abolish capitalism. To
Marx, workers’ emancipation involves abolition
of capitalism
Theories of Trade Unionism…
cont’d

2. Evolutionary Theory:
 This theory also known as “theory of
industrial democracy” was enunciated by
Sydney and Beatrice Webbs. To Webbs,
trade unionism is an extension of the
principle of democracy in the industrial
sphere. In other words, trade unionism is
not an instrument to overthrow the
capitalism, but a means of equalizing the
bargaining power of labour and capital.
Theories of Trade Unionism…
cont’d

…. Evolutionary Theory…cont’d
Trade unionism provides a means by
which workers overcome managerial
dictatorship, on the one hand, and
express their voice in the determination
of the conditions under which they have
to work, on the other.
Theories of Trade Unionism…
cont’d

3. Theory of Industrial Jurisprudence:

According to S. H. Slitcher the
propounder of the “Theory of Industrial
Jurisprudence”, workers individually fail in
bargaining with employers for pro­tecting
their interests. In his view, trade unionism
served as a means for workers to protect
them in work. Such an approach of trade
unionism, Slitcher termed as “a system of
industrial jurisprudence”.
Theories of Trade Unionism…
cont’d

4. Rebellion Theory:
 To Frank Tannenbaum, the propounder of
“Rebellion Theory”, trade unionism is a
spontaneous outcome in the growth of
mechanisation. He believes that the use of
machines leads to exploitation of workers. Thus,
machine is the cause and labour movement, i.e.,
trade unionism is the result. In other words, trade
unionism is a rebellion approach against
mechanisation, automatization of industrial society
to protect workers’ interest in the enterprise.
Theories of Trade Unionism…
cont’d

 5. The Gandhian Approach:

The Gandhian approach of trade unionism is
based on “class collaboration rather than class
conflict and struggle”. The idea to take worker’s
due share from capitalist by reform and self-
consciousness among workers led to the
emergence of trade unionism. Thus the Gandhian
approach of trade unionism is not only related to
material aspect but also moral and intellectual
aspects.
Theories of Trade Unionism…
cont’d

…The Gandhian Approach:…cont’d…

Gandhiji emphasised that the direct aim

of a trade unionism is not, in the last
degree political. Instead, its direct aim is
internal reform and also evolution of
internal strength. Also, trade unionism,
according to the Gandhian approach, is
not anti-capitalistic as is generally viewed.
Objectives of Trade union
 1. Ensure Security of Workers:
 This involves continued employment of workers, prevent
retrenchment, lay off or lock-outs. Restrict application of “hire & fire”
or dismissal or discharge and VRS.
 2. Obtain Better Economic Returns:
 This involves wages hike at periodic intervals, bonus at higher rate,
other admissible allowances, subsidized canteen and transport
facilities.
 3. Secure Power To Influence Management:
 This involves workers’ participation in management, decision
making, role of union in policy decisions affecting workers, and staff
members.
 4. Secure Power To Influence Government:
 This involves influence on government to pass labour legislation
which improves working conditions, safety, welfare, security and
retirement benefits of workers and their dependents, seek redressal
of grievances as and when needed.
Functions of Trade Union
 (i) To secure fair wages to workers.
 (ii) To safeguard security of tenure and improve conditions
of service.
 (iii) To enlarge opportunities for promotion and training.
 (iv) To improve working and living conditions.
 (v) To provide for educational, cultural and recreational
facilities.
 (vi) To co-operate in and facilitate technological advance
by broadening the understanding of workers on its
underlying issues.
 (vii) To promote identity of interests of workers with their
industry.
 (viii) To offer responsive co-operation in improving levels of
production and productivity, discipline and high standards
of quality and
 (ix) To promote individual and collective welfare.
Methods to attain objectives

 Mutual Insurance
 Collective Bargaining

 Legal Enactments
Methods to attain objectives

 Trade Unions adopt following methods to

accomplish these objectives.
(1) Collective Bargaining—It is the method
where trade unions and the representatives of
management sit together and resolve their
disputes or negotiate an agreement with the
management and other benefits. This method
has been used by the trade unions all over the
world.
Methods to attain objectives

2) Mutual Insurance—Under this method, trade

unions establish a fund. They maintain such
fund by collecting money from their members.
Such fund is utilised by the unions in carrying
out certain welfare plans for the benefit of their
members. They also financially assist their
members in emergency e.g., in case of
accident, illness or during strike. This method is
feasible only when their membership is large
enough and the financial position of unions is
strong.
Methods to attain objectives

(3) Legal Enactment—Trade unions do project

the interests of their members. One of the
method is demand for the honest
implementation of various provisions of
different Acts concerning them and offer
suggestions to the government for their
amendment wherever necessary. For this
purpose they take up political activities and get
some of their nominees as members of
Parliament and Legislature.
Reasons of joining Trade union

 (a) Security of employment and protection against

calamity of accident, death and secure social security
cover after retirement.
 (b) Meeting companionship and affiliation need and
improve one’s influence with management.
 (c) To get a common platform—to air one’s views,
aims ideas and feelings and obtain recognition and
status among fellow workers.
 (d) Make use of the “principle of unity” for the purpose
of securing good working conditions, high economic
compensations, better career prospects and welfare
needs.
 (e) Restrict management actions which are against the
interest of workers.
Problems of the Trade union

 1. Uneven Growth:
 Trade unions are concentrated in large
scale industry sector and in big
industrial centers. There is very little
trade union activity in small sector,
agricultural labour and domestic sector.
Trade unionism has touched only a
portion of the working class in India.
Problems of the Trade union…
Cont’d

 2. Small Size:
 Most of the unions have low
membership though the number of
unions and union membership are
increasing, average membership is
inadequate.
Problems of the Trade union…
Cont’d

 3. Weak Financial Position:

 The average yearly income of unions is very
low and inadequate. The subscription rates
are low and many members do not pay the
subscription in time. Due to their financial
weakness, most of the unions are not in a
position to undertake welfare programmes for
workers.
Problems of the Trade union…
Cont’d

 4.Political Leadership:
 Trade unions are under the leadership
and control of political parties and
outsiders. Politicians exploit unions and
workers for their personal and political
gains. Thus, the political leadership is
very harmful to the trade union
movement in India.
Problems of the Trade union…
Cont’d

 5. Multiplicity of Unions:
 There exist several unions in the same
establishment or industry. The existence of
rival unions with conflicting ideology is greatly
responsible for unhealthy growth of trade
union movement. In some cases employers
encourage split in unions to undermine their
bargaining power.
Problems of the Trade union…
Cont’d

 6. Problem of Recognition:
 Employers are under no obligation to
give recognition to any union.
Problems of the Trade union…
Cont’d

 7. Absence of Paid Office-Bearers:

 Most of the unions do not have full-time
paid office-bearers. Union activists
working on honorary basis devote only
limited time and energy to union
activities. Union officers lack adequate
knowledge and skill due to lack of proper
training, weak financial position and
political leadership are the main reasons
for this state of affairs.
Problems of the Trade union…
Cont’d

 8. Apathy of Members:
 Majority of workers do not take keen
interest in union activities. The
attendance at the general meetings of
unions is very poor.
Problems of the Trade union…
Cont’d

 9. Opposition from Employers:

 Trade unions in India have to face
opposition from employers. Many
employers try to intimidate or victimise
labour leaders, start rival union and
bribe union officials.
Problems of the Trade union…
Cont’d

 10. Inter-Union Rivalry:

 Multiple unions create rivalry. Unions try
to play down each other in order to gain
greater influence among workers.
Employers take advantage of infighting.
Inter-union rivalry weakens the power of
collective bargaining and reduces the
effectiveness of workers in securing their
legitimate rights.
Problems of the Trade union…
Cont’d

 11. Illiteracy among workmen

 12. Heterogeneous nature of labour: Since
workers come to the factory with varying
backgrounds, it is difficult for them to put a joint
front in case of trouble. Employers exploit the
situation, under the circumstances, by dividing
workers on the basis of race, religion,
language, caste, etc.
Measures to strengthen Trade
Union Movement in India
 The following are some of the measures to minimise
trade union problems and to strengthen the Trade
Union Movement of India.

a) United Labour Front

Unions must put up a joint front. Splinter groups
multiple unions dissipate their energies, dilute their
power and reduce their effectiveness. 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.
Measures to strengthen Trade
Union Movement in India
 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.
Management should encourage internal workers to
lead their own movement. Management and trade
unions should provide educational and training
facilities for the development of internal leadership.

 .
Measures to strengthen Trade
Union Movement in India
 c) Membership Fees : Having check-off system of
subscription payment

d) In order to make members updated Trade unions

must organise continuous training and developmental
programmes. Future needs smart and responsive
Trade Unions, if they have to survive and thrive.
e) The Trade Union Act should be amended in order to
avoid dual membership.
f) There should be legal provision for the recognition of
the representative union.
g) Unions should not intervene in day-to-day matters.
They must focus on important issues affecting workers
Internal Vs External leadership:
Views of NCL

Reasons for emergence of outside leadership:

Outside leadership has been playing a pivotal
role in Indian Trade Union Movement due to
the inability of insiders to lead their movement.
In view of low education standards and poor
command over English language which is still
the principal language of labour legislation and
negotiations, low level of knowledge about
labour legislation, unsound financial position,
fear of victimisation by the employer and lack
of leadership qualities-outside leaders have
come to stay.
Outside leadership…cont’d

 The main reason for this trend is that the Trade

Unions Act, 1926,[India] itself provided the
scope for outside leadership.
 Section 22 of the Act requires that ordinarily
not less than half of the officers of the re-
registered union shall be actively engaged or
employed in an industry to which the union
relates.
 Thus, this provision provides the scope for
outsiders to the tune of 50% of the office
bearers.
Outside leadership…cont’d

 The Royal Commission of Labour (RCI)

1931, recommended for the reduction of
the statutory limit of outsiders from 1/2
to 1/3 but no efforts were taken in this
direction.
Evil effects of outside leadership
The evil effects of outside leadership analysed by
National Commission on Labour are as follows:
 Outside leadership undermined the purposes of
Trade Unions and weakened their authority.
Personal benefits and prejudices sometimes
weighed more than unions.
 Outside leadership has been responsible for the
slow growth of Trade Unions.
 Internal leadership has not been developed fully.
 Most of the leaders cannot understand the worker’
problems as they do not live the life of a worker.
Measures to minimise the evil
effects of outside leadership:

 In view of the limitations of outside

leadership, it is desirable to replace the
outside leaders progressively by the
internal leaders. The National
Commission on Labour, 1969, also
stated that outsiders in the Trade Unions
should be made redundant by forces
from within rather than by legal means.
Measures to minimise the evil
effects of outside leadership-
cont’d
According to NCL, Both the management and trade
unions should take steps in this direction. The steps
may be:

 Management should assure that the victimisation will

be at zero level, even if the trade unions are led by
insiders;
 Extensive training facilities in the areas of leadership
skills, management techniques and programmes
should be provided to the workers;
 Special leave should be sanctioned to the office
bearers.
NCL’s views on Union Rivalry

 According to NCL, Union rivalry has been the

result of the following factors:

 The desire of political parties to have their

basis among the industrial workers;
 Personal-cum-factional politics of the local
union leader;
 Domination of unions by outside leaders;
 Attitude and policies of the management, i.e.,
divide and rule policy; and
 The weak legal framework of trade unions.
NCL’s views on Union
Rivalry..cont’d
Measures to minimise union rivalry: In view of the evil
effects of inter-union rivalry and the problem of
formation of one union in one industry, it may be
necessary to consider the recommendations of National
Commission on Labour, 1969. The recommendations of
NCL to minimise union rivalry are:

 Elimination of party politics and outsiders through

building up of internal leaders;
 Promotion of collective bargaining through recognition
of sole bargaining agents;
 Improving the system of union recognition;
 Encouraging union security; and
 Empowering labour courts to settle inter-union disputes
if they are not settled within the organisation.
Major Trade Unions in India

Some of the major Central unions of the

country:
 The Indian National Trade Union Congress
(INTUC) by the Congress.
 All-India Trade Union Congress (AITUC) by
the CPI.
 United Trade Union Congress (UTUC) by the
CPI (M).
 Bharatiya Mazdoor Sangh (BMS) by the BJP.

 Hind Mazdoor Sabha (HMS) Affiliated to ITUC

Code of conduct by 4 major
central unions

The four central labour organisations

(the INTUC, the AITUC, the HMS, and
the UTUC) voluntarily adopted an inter
union Code of Conduct on May 21st,
1958 to observe the following basic
principles for the maintenance of
harmonious trade union relations
Code of conduct by 4 major
central unions….Cont’d

 Every employee in the industry or unit shall

have the freedom and right to join a union of
his choice. No coercion shall be exercised in
this matter.
 There should be no dual membership of
unions.
 There shall be unreserved acceptance of, and
respect for the democratic functioning of trade
unions
 There shall be regular and democratic
elections of executive bodies
Code of conduct by 4 major
central unions….Cont’d

 Ignorance and / or backwardness of workers

shall not be exploited by any organisation. No
organisation shall make excessive and
extravagant demands.
 Casteism, communalism and provincialism
shall be avoided by all unions.
 There shall be no violence, coercion,
intimidation, or personal vilification in inter-
union dealings.
 All Central unions shall combat the formation
or continuance of company unions.
Recognition of Trade unions
Recognition of a trade union is very different from
Registration of the union under the Trade Unions Act,
1926. Recognition means management conferring
right to the Union
 To represent its members as the bargaining agent
during the various discussions and deliberations
made while negotiating terms of
employment/conditions of labour;
 To enter into settlements with the management on
behalf of its union-members; and
 To air its opinion when general opinion of workmen
are sought while formulating managerial policies and
decisions.
Recognition of Trade unions…
Cont’d

There is no Central law on granting

recognition to trade unions.
Recognition of a Trade Union is a
matter of volition on the part of the
employer.
Recognition of Trade unions
under Code of Discipline

 The 15th Indian Labour Conference had

accepted a Code of Discipline and one of the
clauses therein pertains to Recognition of
Unions. Presently, the said code is
considered as the accepted norm for
Recognition of Trade Unions by most of the
employers. According to the said code, for
recognition:
Cont’d …………..Next slide
Recognition of Trade unions
under Code of Discipline..cont’d
 The Registered Unions should have at lease one
year standing.
 They should have at least 15% of the membership of
the establishment to claim recognition; and 25% of
the work force to claim recognition on industrial
basis.*
 When there are multiple unions in an establishment,
the union with largest membership will be given
recognition.
 The local unions if they have more than 50% of the
membership of the locality, can be recognized to
represent their grievances.
 The recognition granted will be valid for 2 years.
 The unions which do not follow code of discipline will
not be granted recognition.
* Explanation

* Membership will be counted for only

those who have paid their subscriptions
for at least 3 months during the
preceding six months from the date of
reckoning
Rights of a recognized Trade
Union

 The 20th Session of the Indian Labour

Conference (August 1962) has agreed
that a Trade Union which is granted
recognition under the Code of Discipline
can enjoy the following rights, namely:
Rights of a recognized Trade
Union

 1. To negotiate with employers in respect of

matters connected with employment conditions.
 2. To collect membership fees from the
members on the premises of the industry.
 3. To nominate its member-representatives on
the Grievances Committee constituted in an
establishment.
 4. To nominate its representatives on the Joint
Management Councils.
 5. To receive replies from employers in
response to their letters.
 6. To conduct interviews of employers.