Trade Unions

Gautam Bandyopadhyay
HR Consultant & Visiting Professor
 What will be discussed?

• Concept
• Definition
• Objectives
• Role & Functions
• Registration vis-a-vis Recognition
• Problems of Indian Trade Unions

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 Concept
• Trade unions came into existence for a variety of purposes.
• Individual workers found it advantageous to band together to
establish their terms & conditions of employment.
• They realized that employer would get leverage when they
deal with an individual and not as a group
• Group’s impact is always larger than an individual
• An individual may not be in a position to organize and defend
his interests which a group can
• Workers saw the advantages of organizing themselves into
groups to improve their terms and conditions of employment
• The influence of political parties in acquiring a foothold in the
labour movement provided an impetus in formation of TU

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 What is a Trade Union ?

“Trade union, also called labour union,

association of workers in a particular trade,
industry or company created for the purpose of
securing improvements in pay, benefits, working
conditions or social and political status through
collective bargaining.” – Britannica

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 Objective

• To arose a demand of common interest of all workers

• To create an awareness of rights amongst the
workers
– The right to organise
– The right to bargain
• To settle terms & conditions of employment

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 Different Theories of TU

• Webb’s theory of Industrial Democracy

• Socio-psychological theory of Robert Hoxie
• Revolution theory of Karl Marx
• Protest theory of Kerr & Associates
• Frank Tannenbaum’s Socialist Theory
• Mahatma Gandhi’s Trusteeship Theory

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 Webb’s theory of Industrial Democracy

• Extension of democracy from the political sphere to

equalize the bargaining power between labour and
capital.

• It is a continuous association of the wage earners for

the purpose of maintaining and improving the
conditions of their working lives.

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Socio-psychological theory of Robert Hoxie

• Workers who are not so divergent in their social

status or economically will tend to develop a
common understanding to form a group.

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 Revolution theory of Karl Marx

• Trade Union represents a prime instrument for

abolition of the capitalist class (Bourgeoisie) by the
proletariat (labourer).

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 Protest theory of Kerr & Associates

• It is inherent in industrialization which changes

relationship between man and his work & also
between man and his cultural setting. He often finds
lack of freedom, task is distasteful, compensation is
not adequate.

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 Frank Tannenbaum’s Socialist Theory

• Result of mechanization led to congregation of

workers. Hence, the emergence of unionism is
spontaneous, unpremeditated. Being migrated one
feels lonely, loss of community and alienation.

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 Mahatma Gandhi’s Trusteeship Theory

• He wanted to see TU and capital as supplementary to

each other based on his truth, non-violence and
trusteeship.

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 Historical Evolution of TU in India

First Phase (1850 – 1900) :

• Inception of TU in India
• Guided by educated philanthropists & social worker
• Poor working conditions & long working hours led to many strikes in
1880s in all industrial cities, particularly in textile industries
• These strikes taught workers to understand power of united action even
though they had no formal TU
• Indian Factories Act came up in 1881 to regulate textile labourers
• Birth of Indian National Congress in 1885 also acted as a motivator of
concerted labour movement in India
• Small associations came up in Bombay (Bombay Mill-hands Assn.) and
in Calcutta. Still there was no formal TU.

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 Historical Evolution of TU in India
Second Phase (1900 – 1947) :
• Development of organised trade unions & political
movements of the working class started
• The period 1900 – 1915 was the preparatory phase
• First World War (1914 – 1918), Formation of ILO (1919) & the
Russian Revolution (1917) gave a new impetus to our TU
movement
• Formally first national TU formed in 1920 (AITUC).
• Many of its leaders were leaders of national movement.
• It was estimated that in ‘20s there were about 125 trade
unions with a total membership of about 2.5 lakh workers.
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 Historical Evolution of TU in India
Third Phase (1947 onwards) :
• Govt sought co-opn of the unions for economic development
• Working class movements were highly politicised
✓ INTUC is the TU arm of the Congress Party (came from Ahmedabad
Textile Labour Assn initiated by Mahatma Gandhi)
✓ AITUC is the TU arm of the Communist Party of India
✓ HMS (Himd Mazdoor Sabha) was formed by Socialists Left
✓ BMS (Bharatiya Mazdoor Sangh) is the TU arm of RSS/Jana Sangha
✓ CITU was formed in 1970 by the CPI-Marxist
• Besides workers, white-collar employees, supervisors and managers
also organised their own TUs in banking, insurance, petroleum
industries.
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 Unionisation : Law & Environment
Two factors are relevant:
• Trade Union Law (The Trade Unions Act, 1926)
• Political parties & their labour strategy

Organization pattern of a trade union federation is

usually three tired. Units exist at the plant or shop,
state and at central level.

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 Trade Union Act, 1926
Definition of Trade Union [s. 2(h)]:
“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”.

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 Role & Functions
• According to the TU Act of 1926 : a trade union “must work to
protect and promote the interests of the workers and the
conditions of their employment”.

• The interest of the workers lies in getting reasonable wages, shorter

working hours, improved working conditions (both social and
psychological) and greater security (both of person and of job).

• Principles of Trade Union : Trade Union functions on the basis of 3

cardinal principles:
➢ Unity is Strength
➢ Equal pay for equal work or for equal job
➢ Security of service
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 Different Types of Unions
• Primary Unions at the Base : Basic units of trade union
organization which may be industrial, general or craft unions.

• Craft Unions: Organizations of workers engaged in a single

craft or occupation or a group of similar crafts or occupations.

• Industrial Unions: Unions which organize into one

homogeneous group, in a particular industry or industrial
establishment, irrespective of skill or craft differences.

• General Unions: Unions, the membership of which, is open to

workers employed in many industries, employment and crafts.

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 Trade Union Federations
• A group to which a number of trade unions are affiliated.
• A trade union federation may be set-up at the central,
industrial, state, regional or at other levels.

• Some of more active federations/trade unions are:

➢ Indian National Textiles Workers’ Federation
➢ Indian National Mine Workers’ Federation
➢ Indian National Dock Workers’ Federation
➢ All India Bank Employees’ Association
➢ National Federation of Indian Railwaymen

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 Central Federations of TUs
• Also called central trade union organizations.

• These are set up at the national level, to which a

number of industrial federations, other all-India
trade unions and also unions at other levels are
affiliated.

• Most of them are formally or informally affiliated to

one or other political party.

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 Central Trade Unions in India
Sl Central Trade Union Political Party
1 All India Trade Union Congress Communist Party of India
2 Indian National Trade Union Congress Indian National Congress
3 Hind Mazdoor Sabha Socialist Party
4 Centre of Indian Trade Unions Communist Party of India (Marxist)
5 All India Central Council of Trade Unions Communist Party (M-L) Liberation
6 All India United Trade Union Centre Socialist Unity Centre of India (Comnst)
7 Bharatiya Mazdoor Sangh Rastriya Swayamsevak Sangh
8 New Trade Union Initiative Independent from political parties
9 Self Employed Women’s Assn. of India
10 Labour Progressive Federation Dravida Munnetra Kazhagam
11 United Trade Union Congress Revolutionary Socialist Party
12 Trade Union Co-ordination Committee All India Forward Bloc

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 Thank You

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