TRADE UNION

Introduction
A trade union is an organization of employees formed on a
continuous basis for the purpose of securing different range
of benefits. It is a continuous association of wage earners
for the purpose of maintaining and improving the conditions
of their working life.
The Trade Union Act 1926 defines a trade union as a
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. This definition is very broad as it includes
associations of both the workers and employers and the
federations of their associations. Here, the relationships
that have been talked about are both temporary and
permanent. This means it applies to temporary workers (or
contractual employees) as well. Then this definition,
primarily, talks about three relationships.
• They are the relationships between the:
• workmen and workmen,
• workmen and employers, and
• employers and employers.
• Thus, a trade union can be seen as a group of
employees in a particular sector, whose aim is to
negotiate with employers over pay, job security,
working hours, etc, using the collective power of its
members. In general, a union is there to represent
the interests of its members, and may even engage in
political activity where legislation affects their
members. Trade unions are voluntary associations
formed of protecting the common interests of its
members and also promote welfare. They protect the
economic, political and social interests of their
members.
 Features of Trade unions
• It is an association either of employers or employees
or of independent workers. They may consist of :-
– Employers’ association (EFI),
– General labor unions (AITUC)
– Friendly societies (Rotary Club)
– Unions of intellectual labor (All India Teachers
Association)
• It is formed on a continuous basis. It is a permanent
body and not a casual or temporary one.
• It is formed to protect and promote all kinds of
interests –economic, political and social-of its
members.
• It achieves its objectives through collective action
and group effort.
 Objectives of Trade Unions
• Trade unions are formed to protect and promote
the interests of their members. Their primary
function is to protect the interests of workers
against unfair labor practices. Trade unions are
formed to achieve the following objectives:

Representation –
Trade unions represent individual workers when
they have a problem at work. If an employee feels
he is being unfairly treated, he can ask the union
representative to help sort out the difficulty with
the manager or employer. Unions also offer their
members legal representation. Normally this is to
help people get financial compensation for work-
related injuries or to assist people who have to
take their employer to court.
• Negotiation

• Negotiation is where union representatives, discuss

with management, the issues which affect people
working in an organization. There may be a difference
of opinion between management and union members.
Trade unions negotiate with the employers to find out
a solution to these differences. Pay, working hours,
holidays and changes to working practices are the
sorts of issues that are negotiated. In many
workplaces there is a formal agreement between the
union and the company which states that the union has
the right to negotiate with the employer. In these
organizations, unions are said to be recognized for
collective bargaining purposes.
• Voice in decisions affecting workers.

• The economic security of employees is

concluded not only by the level of wages and
duration of their employment, but also by the
management’s personal policies which include
selection of employees for lay offs,
retrenchment, promotion and transfer. These
policies directly affect workers. The
evaluation criteria for such decisions may not
be fair. So, the intervention of unions in such
decision making is a way through which
workers can have their say in the decision
making to safeguard their interests.
• Member services

• During the last few years, trade unions have increased the
range of services they offer their members. These include:
– Education and training - Most unions run training courses
for their members on employment rights, health and
safety and other issues. Some unions also help members
who have left school with little education by offering
courses on basic skills and courses leading to professional
qualifications.
– Legal assistance - As well as offering legal advice on
employment issues, some unions give help with personal
matters, like housing, wills and debt.
– Financial discounts - People can get discounts on
mortgages, insurance and loans from unions.
– Welfare benefits - One of the earliest functions of trade
unions was to look after members who hit hard times.
Some of the older unions offer financial help to their
members when they are sick or unemployed.
 Importance of Trade Unions
The existence of a strong and recognized trade union is for
industrial peace. Decisions taken through the process of
collective bargaining and negotiations between employer and
unions are more significant and play an vital role and are
helpful in effective communication between the workers and
the management. They provide the advice and support to
ensure that the differences of opinion do not turn into major
conflicts. The central function of a trade union is to
represent people at work and protecting their interests.
Trade unions help in accelerate pace of economic development
in many ways as follows:
 by helping in the recruitment and selection of workers.
 by discipline among the workforce
 by settlement of industrial disputes in a balanced manner
 by helping social adjustments like new working conditions, the
new rules and policies. Workers coming from different
backgrounds may become disorganized, unsatisfied and
frustrated.
 Trade unions are a part of society and as such, have to take
into consideration, promoting and maintaining national
integration by reducing the number of industrial disputes
 Reasons for Joining Trade Unions
• The important forces that make the
employees join a union are as follows:
1. Greater Bargaining Power
2. Minimize unfairness
3. Sense of Security
4. Sense of Participation
5. Platform for self expression
6. Betterment of relationships
Problems of Indian Trade Union

Small size of union

Financial weakness
Multiplicity of union and inter-union rivalry
Leadership issue
Politicalisation of unions
Problem of recognition of trade union
• Evolution of IR in India
 Vedic Period to Mugal Rule
 British Rule to Pre-Independence India
 Post-Independence India

• British Rule to Pre-Independence India

• There was no change,
• working hours – 20 in a day, Low wages
• First strike on 1895 at Budge Budge Jute Mill
• & loss was Rs. 18,000/-

• Labour Associations-
• Bombay Millhands Association (1890)
• Amalgamated Society of railway servant of India (1897)
• Printers Union, Calcutta (1905)
• Postal Union, Bombay (1907)
• Due to wages and Economic distress workers organised together
and did the strike one at Ahmedabad (led by Mahatama Gandhi)
and the other one at Madras (led by B P Wadia) in 1921.
 Trade Unionism In India
(Origin and Growth)

• The trade unionism in India

developed quite slowly as compared
to the western nations. Indian
trade union movement can be
divided into three phases.
The first phase (upto1900)

• During this period, the working and living conditions of

the labor were poor and their working hours were
long.
• Capitalists were only interested in their productivity
and profitability.
• The wages were also low and general economic
conditions were poor in industries.
• Employment of child labor was prohibited.
• The growth of trade union movement was slow in this
phase and later on the Indian Factory Act of 1881.
Many strikes took place in all industrial cities. These
strikes taught workers to understand the power of
united action even though there was no union in real
terms.
• The second phase (1900 to 1946)

• This phase was characterized by the development

of organized trade unions and political movements
of the working class. At Ahmedabad, under the
guidance of Mahatma Gandhi, occupational unions
like spinners’ unions and weavers’ unions were
formed. A strike was launched by these unions
under the leadership of Mahatma Gandhi who
turned it into a Satyagrah. These unions
federated into industrial union known as Textile
Labor Association in 1920. In 1920, the First
National Trade union organization (The All India
Trade Union Congress (AITUC)) was established.
Many of the leaders of this organization were
leaders of the national Movement. In 1926, Trade
union law came up with the efforts of Mr. N N
Joshi that became operative from 1927.
• In this period a continuous growth in the number of
trade unions and their members. Though the rate of
these early trade unions was very high, new trade
union continued to be formed all the time so as to
provide growth and expansion to the Indian trade
union movement. The following are the main features
–
 Formation of AITUC
 Expansion in the number of trade union and
membership
 Enactment of the Indian Trade union Act’ 1926
 Increase in the industrial disputes
 Role of leftist influence on the Indian trade union
movement
 Initiation of the practice of paying DA and bonus
• The third phase began with the emergence of
independent India (in 1947).
 The partition of country affected the trade union
movement particularly Bengal and Punjab. Four central
trade union organizations were functioning in the
country:
 The All India Trade Union Congress,
 AITUC is the trade union arm of the Communist Party
of India
 The Indian National Trade Union Congress,
 INTUC is the trade union arm of the Congress Party
 The Hindu Mazdoor Sangh, and
 The United Trade Union Congress
 The working class movement was also politicized along
the lines of political parties. The AITUC is the trade
union arm of the Communist Party of India. Besides
workers, white-collar employees, supervisors and
managers are also organized by the trade unions, as
for example in the Banking, Insurance and Petroleum
industries.
• Trade Unions Movement in India –
after independence
 The Indian workforce consists of 430 million
workers, growing 2% annually. The Indian labor
markets consist of three sectors:
 The rural workers, who constitute about 60 per
cent of the workforce.
 Organized sector, which employs 8 per cent of
workforce, and
 The urban informal sector (which includes the
growing software industry and other services,
not included in the formal sector) which
constitutes the rest 32 per cent of the
workforce.
 Recommendation of National
Commission on Labour for
strengthening Trade Union

 Enlargement of functions
 Leadership
 Union rivalries
 Improvement of financial condition
 Verification of membership
 Registration & Recognition of the union
• White – collar Unionism
Emergence of Managerial or Officers’
Union are witnessed as the employees of
Government deptt. like railway, post,
banks, insurance, teachers, engineers,
resident doctors
Besides this, over the years, the income
differentials between the blue-collar
workers (bargainable category) and
white collar workers (non-bargainable
category)
• Some of the Trade Union Organizations in India:

1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS)
3. Centre Of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation Of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front Of Indian Trade Unions (NFITU)
9. National Labor Organization (NLO)
10.Trade Unions Co-ordination Centre (TUCC)
11.United Trade Union Congress (UTUC)
12.All India Bank Employees’ Association
13.All India Insurance Employees’ Federation
14.All India Railway men's Federation
15.National Federation of Posts & Telegraphs Employees
16.Indian Paper Mill Association
 Significant Trade Union in India:
 The All India Trade Union Congress (AITUC) is the oldest Trade Union in India
and till 1945 it remained the central trade union organization in India. Some
others are like -

 All India Bank Officers Confederation- AIBOC is the premier organization of

Bank Officers in India. This Trade Union in India stands apart from the others as
it is organized purely on apolitical lines.

 All India State Government Employees Federation- AISGF is a trade union

organization representing state employees and teachers of different states in
India.

 Center of Indian Trade Unions – CITU is one of the major Trade Union in India,

 Hind Mazdoor Sabha – HMS is a progressive Trade Union in India that prefers to
refrain from political control.

 National Confederation of Officer's Association -NCOA represents the

managerial and supervisory staff of the Indian government owned public
Enterprises.

 Trade Union International - TUI forms a part of the structure of World

Federation of Trade Unions, representing the public employees,
telecommunication employees, health services, financial sector employees &
municipal employees of different countries of the world.
•
• Functions of Trade Union –

 To achieve higher & fair wages and better working

condition for the members
 Protecting the members against unfair treatment
and injustice by employers
 To generate self confidence among the workers
 To encourage sincerity and discipline among
workers
 to provide for educational, cultural facilities
 To take up welfare measures for improving the
morale of the workers
 To cooperate and facilitate technological
advancement
• Functions of Trade unions

Functions can be broadly classified

into two categories:

(i)  Militant functions,

(ii) Fraternal functions
• Militant functions
• Trade unions leads to the betterment of the position of their
members. The aim of such activities is
 ensure adequate wages
 secure better conditions of work and employment
 get better treatment from employers

When the unions fail to achieve these aims by the method of

Trade unions perform a number of functions in order to
achieve the collective bargaining and negotiations, they adopt
an approach and put up a fight with the management in the
form of strike, boycott, gherao, etc. Hence, these
functions of the trade unions are known as militant or
fighting functions. Thus, the militant functions of trade
unions can be summed up as:

• To achieve higher wages and better working conditions

• To raise the status of workers as a part of industry
• To protect labors against victimization and injustice
Fraternal functions

• Another set of activities performed by trade

unions aims

 help to its members in times of need, and

improving their efficiency
 try to promote and encourage of cooperation and
promote friendly industrial relations
 multiply education and culture activities among
their members
 take up welfare measures for improving the morale
of workers and generate self confidence among
them
 undertake many welfare measures for their
members, e.g., school for the education of
children, library, reading-rooms, in-door and out-
door games, and other recreational facilities
Fraternal functions (contd.)

 undertake publication of some magazine or journal

 depend on the availability of funds, which the
unions raise by subscription from members and
donations from outsiders
 To take up welfare measures for improving the
morale of workers
 To generate self confidence among workers
 To encourage sincerity and discipline among
workers
 To provide opportunities for promotion and growth
 To protect women workers against unfairness
 arrange for legal assistance to its members, if
necessary
 Theories of Trade Union
Or
 Evolution of Trade Union : A Theoretical
Perspective

1. Dunlop's Contribution
2. Webb’s Non-Revolutionary or Industrial
Democracy Theory
3. Revolutionary or Classless Theory of Karl Marx
4. Scarcity of Consciousness of Theory of Selig
Perlman
5. Sociological Theory of Frank Trannenbaum
6. Social Psychological Theory of Robert F. Hoxie
7. Kerr and Associates’ Protest or General Theory
8. Gandhiji’s Sarvodaya Theory
• 1 - John T. Dunlop's model identifies the
key factors to be considered in conducting an
analysis of the management-labor
relationship:

 Environmental or external economic, technological,

political, legal and social forces that impact
employment relationships.

 Characteristics and interaction of the key factors

in the employment relationship : labor,
management, and government.
2- Webb’s Non-Revolutionary
Or
Industrial Democracy Theory :

• According to Sydney & Beatric Webb

(the dominant leaders of labour party of Britain)
 Political democracy is not sufficient like freedom
of contract, freedom of association, freedom of
opportunity
 But also required industrial democracy that
employers and employees are running the
organization as equal basis.
 Atleast mini wages and mini working condition
have to be decided
 Trade union is not an instrument for the
revolution, is a means of equalizing the
bargaining power of labour and capital.
3 - Revolutionary Theory of Karl Marx
Or
Classless Society Approach of Karl Marx

• A fair day’s wage for a fair day’s work

 According to Marx, trade union play role as a prime

instrument of class struggle b/w blue-collar workers
and capitalist businessmen and their purpose is to
eliminate competition among labour for available
employment and overcome capitalist businessmen. He
advocated that the working class must not divert
itself from its revolutionary program and the
struggle of labour must be for the abolition of
capitalism.
4- Scarcity of Consciousness of Theory of
Selig Perlman

Scarcity : Lack Consciousness : Awareness

Job security is the major motive.

 The union establish job right which it then

provisions among the members through
regulations applying to overtime, job promotion
and seniority etc. He observe that the labour
movement has been a effective attack on the
institution of private property. Though strikes,
boycotts, working rules, and by securing govt.
restrictions on employers, union restrict the
absolute rights of private property.
5. Sociological Theory of Frank Trannenbaum

He observed that “workers are engaging in an

unaware revolution against the industrial
society.” It is expected that a sense of
identity should develop among men working
at a common task. The initial organiser of
the trade union movement is the shop or
the factory. The striker or the labour
leader merely announces the already
existing fact. The worker became
completely dependent on others for his
livelihood. To secure a job and to hold it, a
man has to belong to something real,
purposeful and creative, he must also
belong to his job and to his industry.
Sociological Theory of Frank Trannenbaum
(contd.)

In fact, the union do not use his power to

create a socialist or communist state. The
dispute b/w labour and management has
always been as a family conflict.
According to him, unionism is not a solution
because it is not a problem but a natural
process in an industry society. A trade
union gives back to the workers his society
and code of conduct by which he can live.
In sense, trade unionism is a counter-
revolutionary.
6.Social Psychological Theory of
Robert F. Hoxie

If we are to study unionism, we shall study

not a narrow piece of reality, but society as
a whole from one particular view. Unionism
affects not only production, but also the
establishment rights (employers’ right to run
the business as he satisfy, workers’ right to
work, where, when, for whom and for what
he entertain.), ethical standards,
distribution of profits and wages, law and
order in the matter of social welfare.
• Hoxie classified unionism into five parts

 Business Unionism or Bread and Butter Unionism

essential trade-aware rather than class-aware, immediate goals,
improvement in working conditions and wages
 Friendly or Uplift Unionism
improvement in mutual adjustment, moral, social life and profit
sharing
 Revolutionary Unionism
believe in direct action and replacing of existing order, class-
aware rather than trade-aware
 Predatory (greedy) Unionism
dominated by Gangsters, not believe on any ideology, apart from
ethical and legal code of effect upon those outside its own
memberships
 Dependent Unionism
rely upon the support of employers or other labour groups
7. Kerr and Associates’ Protest or
General Theory

• Kerr, Dunlop and Myre observed that

worker complaint in natural in
industrialization and offer an
explanation of workers’ objection which
arises from stress and strain. These
thinkers are of the view that the
traditional analysis of the labour
problem.
8. Gandhiji’s Sarvodaya Theory

• It is based upon truth, non-voilence

trusteeship, development of
organisation, not anti-capitalistic less
political.
• To raise the moral and intellectual
• Capital and labour should supplement and
help each other. They are as a family.
• Try to reduce the strikes and lockouts
for the development to all.
 Strikes in India in this year (from Jan.’09 to till date)
Date Description
5 Jan.’ 2009 Coal industry, due to wages
7 Jan.’ 2009 Public oil sector, due to wages
7 Feb.’ 2009 NTPC, to salary
20 April’ 2009 Hyundai, due to establish a trade union
29 July’ 2009 Strike finished & loss of 1800 cars
30 April’ 2009 Mumbai Airport, due to transfer
2 may’ 2009 Nestle, Rudrapur due to release of probation employees
4 may’ 2009 M&M, Nasik, due to dismiss of trade union leader
9 may’ 2009 MRF, Arakonam due to wages
12 may’ 2009 JNPT, Paradeep & Kochi port due to wages
20 may’ 2009 MTNL, due to salary
Beladila Mines due to salary & working condition
12 June’ 2009 Public Sector Banks, due to salary
25 Aug.’ 2009 Air India, due to retrenchment in salary
7 Sep.’2009 Jet Airways Pilots on medical leave, due to dismiss of pilots
13 Sep.’2009 Strike finished, loss of 25-30crore (National Aviators Gild)