Trade Unions
Trade Unions
Trade Unions
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
• 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
• 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)
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:
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.
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: