TRADE UNION

Trade Union
• "Trade Union" as guided by Section 2(b) of Trade Unions Act
1926 means
• “any 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 conditions on the conduct of any trade or business,
and includes any federation of two or more Trade Unions”.
• According to Webbs, “A Trade union is a continuous
association of wage-earners for the purpose of maintaining or
improving the conditions of their working lives.
 Objectives of TUs
• ECONOMIC OBJECTIVES
• NON-ECONOMIC OBJECTIVES
 ECONOMIC
• To secure better wages for workers in keeping with the
prevailing standards of living and cost of living in the industry
• To increase prosperity(bonus etc.)
• Stable employment
• Better conditions( shorter working hrs, leave with wages,
pension, pf, gratuity)
• To facilitate technological advancement
• Responsive cooperation
• Enlarge opportunities for promotion and training
• Fostering a sense of self-respect and dignity
 NON-ECONOMIC OBJECTIVES
• Promotion of national integration
• To influence the socio-economic policies of
the community
• To instill in members, a sense of responsibility
towards the industry and community
 FUNCTIONS OF TRADE UNIONS
• INTRAMURAL FUNCTIONS/MILLITANT
FUNCTIONS/FIGHTING FUNCTIONS
• EXTRA-MURAL FUNCTIONS/FRATERNAL
FUNCTIONS
• POLITICAL FUNCTIONS
 Intramural functions
• Aims at improving the position of workers in
relation to their employment
• Wages
• Better working conditions
• Better treatment from management
• Profit sharing
• WPM
 Means to get these obj.
• CB
• Negotiations
• Strikes,Boycotts, Voilence
 ExtraMural
• Aims at helping the workers at the time of
their needs and also improve their efficiency
• Medical aids
• Educational facilities
• Recreational
• Legal assistance
• Help at the time of strikes/unemployment
 political
• Contesting elections
• within the organization
• Industry
• Statewide/nationwide
 Characteristics of a Trade Union
• The fundamental characteristic lays in very elemental nature the
association of employees which can be driven by specific
employment class, profession or industry.
• The membership shall be opted for, only based upon employee’s
own free will (Voluntary) and free from any compulsion.
• Trade union shall be permanent and continuous body,
independent from the ties with registration or deregistration of
any members.
• The basis of collective action of a trade union relies upon the
common interest of the workers involved such as job security or
working conditions.
• The problem solving approach of the union should be genuine
and collective for any and all grievances over certain
management decisions that one or more of its members may
report.
• To be able to reach an amicable solution, negotiation with
management is necessary with relies upon trade union
executives building rapport with management.
• The aim of the association may range in-between economic,
cultural political, social and psychological benefits within a
broader outlook.
• Professional associations include self-employed and are different
from employers association which are concerned with
influencing the terms of purchases of services in their favour
among other objectives.
 Need for Trade Union
• Bargaining leverage for united employees as well as more
convenient for employers to deal with, in shorter time span too.
• Ensuring worker’s job security and payment in tune with
qualifications, skills and output.
• To channel unmet and non-communicated demands of workers to
management, which may be acting indifferent to individual
grievances relating to wages, working conditions, exploitation,
victimization, insufficient welfare measures
• Promote Industrial peace, effective collective bargaining and for
looking after interests of the trade
• Provides opportunities to workers’ to exhibit and acquire leadership
trait
Problems faced by Trade Union Movement in
India
• 1. Lack of balanced growth
• 2. Low membership
• 3. Poor financial position
• 4. Political control
• 5. Multiplicity of unions
• 6. Inter-union rivalry
• 7. Lack of able leaders
• 8. Lack of recognition
• 9. Opposition from employers
• 10. Indifferent attitude of members
Problems faced by Trade Union Movement in
India
• Lack of Balanced Growth
• Trade Unions provide protection against adversity imposed
by Big Industrial Houses but those working in agriculture
sector, small scale and cottage Industries are still without
any backing, hence decreases union’s potential strength.
• Low Membership
• Employees fear management actions in case of strike
support in terms of pay cut and punishment leading to
hesitation in joining a trade union, although they desire the
benefits. Hence trade unions suffer from low membership,
with exception of a few.
• Poor financial Position
• Trade Unions depend upon the contributions from
philanthropists, low subscription amount deposited by
members and in absence of sources of finance only
weaken their positions.
• Political Control
• Affiliation with political parties leads to publicity of
grievances of working class for sole focus of gaining
political gains, however, solutions can’t be derived
from the partially explained situations.
• Lack of Able Leaders
• Leaders that call strikes on small issues which are easily resolvable
through communications with management or the one that have secret
pacts with employers aren’t healthy for any trade union since their
corruption is detrimental to interests of the workers when unilateral
decisions are taken without discussion with members in general body.
• Opposition from employers
• Employers may threaten employees trying to form a union with
punitive measures such as victimizing union leaders, disciplinary actions
against active union members or resort to forming a rival union, bribing
union leaders to avoid employee strike/protest. However they fail to
recognize that expression of employee grievances through democratic
trade unions are effective in promoting labour management relations.
• Indifferent Attitude of the Members
• Delayed subscription fees after numerous
reminders by union treasurer, absence from
participation in union meetings and activities such
as demonstration, hunger strike, slogan shouting
shows the prevalent indifferent attitude of member
employees towards union operations as they expect
office- bearers to achieve their demands on their
own. 2.9 Measures to strengthen Trade Unions
FORMS OF TUs/ TYPES AND STRUCTURES OF
TUs
• A)Classification according to workers
• 1) Reformist Unions
• a)Business Unions
• b) Friendly or uplift unions
• 2)Revolutionary Unions
• a)Political Unions
• b) Anarchaist unions
• c)Predatory
• Hold up
• Guerrilla
• Dependent
• B) Classification on the basis of Membership
structure
• 1)Labour unions
• 2)Craft
• 3)Industrial
• 4) General
• C) Classification on the basis of Regionwise structure
• 1) Local Vs National
• 2) Federations
• These are apex bodies at national level. All trade
unions like craft union, industrial unions and general
union become members of federations to have
bigger identity. Central trade unions as federations
help smaller unions and support at national level to
address their cause
• a) The Indian National Trade Union Congress
• b) The All-India Trade Union Congress
• c) The Hind Mazdoor Sabha
• d) The United Trade Union Congress
• e) The Centre of India Trade Unions
• f) Bharatiya Mazdoor Sangh
• g) The National Front of India Trade Unions
• h) The United Trade Union Congress (LS)
• i) The National Federation of Independent Trade Unions
• j) The Trade Union Co-ordination Committee
• k) Indian Confederation of Labour
• l) Hind Mazdoor Kisan Panchayat
• m)National Labour Organization
 Trade Union Evolution/DEVELOPMENT OF
TUs IN INDIA
• The Trade Unions’ emergence in India, have been witnessed in periods
of gradual changes in circumstances with time and hence are usually
talked about in phases.
• PART 1 witnessed gradual inception of the trade union due to poor
working conditions and long hours of work and thus led to strikes in all
major industrial cities.
• Small associations were formed in Calcutta and Bombay.
• The newly booming Indian working class had started growing steadily in
parallel with English enterprise counterparts.
• Factories Act 1881 was introduced as a measure to regulate the
working conditions and work hours of the textile labourers,
simultaneously prohibiting child labour and provisions regarding
machinery for factory inspections.
• PART-I(BEFORE INDEPENDENCE)
• The Trade Unions movement in India started rather late,
though the industrialization of the country started around:-
• 1) In 1875:- Mr. Sorabjee shapurjee bangali started an
agitation to draw attention of the govt. towards the
misearble lot of worker,especially woman & children, and to
the need of some legisleative protection.But the progess of
the movement was not very encouraged.
• 2) 1881:- The govt. passed 1st Factory act in 1881. which
was considered to be inadequate and therefore protests
continued from labours.
• 3) 1890-There arose the first labour leader in India-Mr. Narayan
Meghajee Lokhande, who started his career as a factory worker and
devoted his whole life to the course of lobour movement. He
founded the first labour organizarion.
• “Bombay Mill’s Hands Association”
• 4)1905-1910:-Lots of unions came into existance.though they were a
asort of social unions
• The printers’ union of calcutta
• The madras & calcutta postal union,1907
• The kanger hitwardhak sabha,1910.
• THE leadership of these unions was mostely provided by social
reformers and politicians cum nationalists.
• The modern TU movement developed somewhat during and after the 1st
WW because
• spiralling prices
• Sawraj movement
• Russian revolution
• Setting-up of ILO
• 5)1918-1923:-1STindustrial union(of textile workers) was formed by Mr. B.P.
Wadia in 1918 and within an year, no. of unions went up to for a
memebership of 20000.
• Thereafter many unions came into existance like
• The amdras textiel labourers union
• THE JAMSHEDPUR LABOUR association
• AITUC(1920)
• 6)1923-1947:-in 1929, AITUC got divided into two
• AITUC(divided by communists) and
• AITUF(1929) led by N.M. Joshi & modrates.
• In 1931,AITUC futher got divided into two
• AITUC(left wing unionists)
• RTUC(RED TRADE UNION CONGRESS),1931
• Two years later,AITUF got divided into
• AITUF
• NFL(national federation of labour)
• The later made efforts for unity among all left wing organizations as a
result of which AITUF and NFL joined together and formed
• NTUF(NATIONAL TRADE UNION FEDERATION)
• In 1934-35,RTUC merger in AITUC.rhus they have remained AITUC
&NTUF which merged into AITUC in 1940.thus in 1940, AITUC
bacame sole representatiove of organizaed labour.
• BUT IN 1941,AITUC got divided into two.
• AITUC AND
• IFL(INDIAN FEDERATION OF LABOUR)
• Which was in favour of support for 2nd WW.
• It was subsidized by govt.,hence no public support.
• At the end of WWII, the communists dominated the AITUC
PART-II(AFTER INDEPENDENCE)
• witnessed admission of facts regarding low wages, longer
working hours and overall bad economic conditions of the
industry in the rectified reports of The Indian Factory Labour
Commission (1908) and the Royal Commission of Labour
(1931).
• In this period organized and/or militant trade unions came
into the picture by 1st World War end and Russian Revolution
1917 attributable to political movements of working class.
• It was estimated that in 1920 there were 125 unions, with a
total membership of 2, 50,000.
• In 1920, the first national trade union organization was established, led to
leaders of the national movement.
• Independence of India marks the beginning of the third period while
government requested cooperation of trade unions in economic
development although the working class support was linked to their
political inclination as evident by presence of Indian National Trade Union
Congress which is the Trade Union arm of the Indian Congress party, the
affiliation of the socialists to another national worker federation, the Hind
Mazdoor Sabha, and The Center of Indian Trade Unions which emerged in
1970, has close links with the Community Party of India (Marxist).
• Besides workers, white collar employees, supervisors and managers are
also organized by the trade union as specific banking, insurance,
petroleum industries and Aviation Trade Unions exist.
INTUC(Indian national TU Congress) which shared the
views of Indian antional congress and favoured socialism
came into existance in 1947.
In 1948, intuc bacame more represenative of the
workers having a membership of more than 9 lakhs
workers
In 1948 itself, INTUC got divided into two
INTUC
HINDUSTAN MAJDOOR PANCHAYAT(HMP) dominated by
socialist/parja socialist party(1948)
• IFL(which was formed in 1941) got merged into HMP &
came to be known as HMS(HIND MAJDDOR SABHA)
• At this point of time, there were 3 major federations:
• AITUC
• INTUC
• HMS
• In 1949,HMS got divided into two
• HMS &
• UTUC(UNIED TRADE UNION CONGRESS)
• It was dominated by dissatified socialists
• In 1955-Jan Sangh party formed BHARTIYA MAJDOOR
SANGH followed by another federation HIND
MAJDOOR PARTY formed by SANYUKT SOCIALISTS
PARTY.
• But it got soon dissolved
• Thus in addition to the five centeral
federations(AITUC,INTUC,HMS,UTUC & BMS), there
came into existence
• CENTRAL OF INDIAN TRADE UNIONS(CTU)
• & UNITED TRADE UNION CONGRESS
 The Trade Unions Act, 1926 and Legal
Framework
• This Act is a Central legislation, but its
administration and enforcement lies with the
State Governments.
• They appoint Registrars of Trade Unions, and
Additional or Deputy Registrars too, who may
exercise the functions of the Registrar.
• They have been provided the powers to make
rules for giving effect to provisions of the Act.
(Section 3)
Formation and Registration of Trade Union:
• The following steps are involved in the registration of trade union:
• Appointment of Registrars:
• (a) The appropriate government shall appoint a person to be the
registrar of trade unions for each state. The appropriate
government may appoint as many additional and deputy registrars
of trade unions as it thinks fit for the purpose of exercising and
discharging under the superintendence and direction of the
registrar. Such powers and functions of the registrar under this Act
as it may, by order, specify and define the local limits within which
any such additional or deputy registrar shall exercise and discharge
the powers and functions so specified.
• (b) (i) Mode of Registration: Any seven or more members of a trade
union may, by subscribing their names to the rules of the trade union
and by otherwise complying with the provision of this Act with respect
to registration, apply for registration of the trade union under this Act.
• (ii) Where an application has been made under subsection (i) for the
registration of a trade union, such application shall not be deemed to
have become invalid merely by reason of the fact that, at any time
after the date of the application, but before the registration of the
trade union, some of the applicants, but not exceeding half of the total
number of persons who made the application, have ceased to be
members of the trade union or have given notice in writing to the
registrar dissociating themselves from the application.
• (c) Application for Registration:
• (i) Every application for registration of a trade union shall be
made to the registrar and shall be accompanied by a copy of
the rules of the trade union and a statement of the following
particulars, namely—
• 1. The names, occupations and addresses of the members
making application.
• 2. The name of the trade union and the address of its head
office.
• 3. The titles, names, age, addresses and occupations of the
office bearers of the trade union.
• (ii) Where a trade union has been in existence for more
than one year before the making of an application for its
registration, these shall be delivered to the registrar,
together with the application, a general statement of the
assets and liabilities of the trade union prepared in such
form and containing such particulars as may be prescribed
(d) Provisions to Be Contained In the Rules of a Trade Union:
A trade union shall not be entitled to registration under this
Act, unless the executive thereof is constituted in accordance
with the provisions of this Act.
• (e) Power to Call For Further Particulars and To Require Alterations of
Names: (i) The registrar may call for further information or the purpose
of satisfying himself that any application complies with the provisions of
Section 5, or that the trade union is entitled to registration under Section
6, and may refuse to register the trade union until such information is
supplied.
• (ii) If the name under which a trade union is proposed to be registered is
identical with that by which any other existing trade union has been
registered or, in the opinion of the registrar, so nearly resembles such
name as to be likely to deceive the public or the members of either trade
union, the registrar shall require the persons applying for registration to
alter the name of the trade union stated in the application, and shall
refuse to register the union until such alteration has been made.
• (f) Registration: The registrar, on being satisfied that the trade
union has complied with all the requirements of the Act in
regard to registration shall register the trade union by entering
in a register, to be maintained in such form as may be
prescribed, the particulars relating to the trade union contained
in the statement accompanying the application for registration.
• (g) Certificate of Registration: The registrar, on registering a
trade union under section and, shall issue a certificate of
registration in the prescribed form which shall be conclusive
evidence that the trade union has been duly registered under
this Act.
• (h) Cancellation of Registration:
• A certificate of registration of a trade union may be withdrawn or
cancelled by the registrar on the application of the trade union to
be verified in such manner as may be prescribed in if the registrar
is satisfied that the certificate has been obtained by fraud or
mistake or that the trade union has ceased to exist.
• It has to provide not less than two months’ previous notice in
writing specifying the ground on which it is proposed to withdraw
or cancel the certificate shall be given by the registrar to the
trade union before the certificate is withdrawn or cancelled
otherwise than on the application of the trade union.
• (i) Registered Office: All communications and notices to a
registered trade union may be addressed to its registered office.
Notice of any change in the address of the head office shall be
given within fourteen days of such change to the registrar in
writing, and the changed address shall be recorded in the
register referred to in Section-8 of the Companies Act.
• (j) Incorporation of Registered Trade Union: Every registered
trade union shall be a body corporate by the name under which
it is registered and shall have perpetual succession and a
common seal with power to acquire and hold both movable and
immovable property and to contract, and shall by the said name
sue and be sued.