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Best Trade Union For UGC NET
Best Trade Union For UGC NET
t AND FUNCTIONS
1 Objectives
I
After going tlirougli this unit, you sliould be able to understand:
e tlie growth and development oftrade unions in India, and
e tlie fi~nctionsand problelns oftrade unions.
I
Structure
4.1 Introduction
4.2 Origin and Growth of Trade Unions
4.3 Develop~nentof Trade Unions in India
4.4 Indian Unions Today
4.5 Tlie Trade Unions Act: Legal Framework for Trade Unions
4.6 Functions of Trade Unions
4.7 Strengtlieningof Trade Unions
4.8 Sumliiary
4.9 Self-Assessment Questions
4.10 Further Readings
4.1 INTRODUCTION
Trade Unions have become an integral and powerfill factor in tlie contemporary
systeni of production and distribution of goods and services. Modern industrialisation
lias paved the way for trade unions. 14iey are now exercising a strong influence on tlie
methods of production ofgoods and services, tlieir distribution, tlie allocation of
econo~nicresources, tlie volume of e~nploymentand unemployment, the character of
rights and privileges, policies of governments. the attitude and status of large masses
of population, and tlie very nature of econolnic and social organisations. Under such
conditions their role has evoked deep and wide controversies. For a developing
economy such as ours, trade unions and their policies are of special significance. As
such, in order to assess their filnctions, role and prospects, it is essential to go into the
origin and development oftrade union movement and to outline the factors that helped
them reach such a strong and forceful positio~~ from a small and humble beginning.
Meaning of Trade Union
Tlie tern1 trade illlion lias been defined variously by different authors. Some view that
these are only associations of employees or persons working in industry and wage
earners engaged in one or more professions, undertakings or business, while others
view that these also include e~nployersorganisations and friendly societies.
According to G.D.H. Cole, a trade i~nionmeans "an association of workers in one or
more professions-an association carried on lnainly for the purpose of protecting and
advancing the members' econo~nicinterests in connection with tlieir daily work."
Dale Yoder defined a trade union as "a continuing long term association of employees,
Trade l l n i o ~ ~ i s ~ n formed and maintained for the specific purpose of advancing and protecting the
interest of the members in their working relationship."
Sid ley and Beatrice Webb define a trade union as "a continuous association of wage
ear~lersfor tlie purpose of maintaini~lgand improving the conditions of their working
life." I'll~sclassical definition still holds good so far as actual practices of ~11iio11s
are
con~:c~-~~etl.
Uncler tlic Trade Union Act, 1926, this term is defilied as any combination whether
tern porar y or permanent. formed primarily for the purpose of regulating the relatio~is
betwen \vorkmen and employers, or imposing restrictive conditions on the cond:~ctof
any trade or business, and includes any federation oftwo or more trade unions. In
other words, the term iinion applies not only to co~nbinationand associations of
employees only, but also to that ofthe employers.
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4.2 -
- ORIGIN AND GROWTH OF TRADE UNIONS
~ I I S grown in response to the peculiar needs and problelns which the
Trade L I I I ~ ~ have
wage-earners llave had to face i ~ - tlie I course of industrial isation under tile capitalist
economic system. The main features ofthe process of industrialisation tliat
11ecessitatl:d the origin oftrade unions are: (i) separation between capital and labour;
(ii) phi losopliy of 1rs.se~~firir.c i.e.. least/non-interference of the state in the affairs of
labo~.~r ancl management; (iii) 1ac.kof bargaining power on the part of workers (which
forct:d the worlcers (as individuals) to either accept the jobs with wage rates, hours of
work etc. unilaterally determined by the employers, or to remain une~nployed);and
(iv) the realisation by the working class tliat while the individual worker was
dispensable to the employer, workers collectively were indispensable to him, and as
such, lie C O L I I ~ not dispense with all his workers and replace them. It is this realisation
that sowed tlie seeds ofcollective bargaining wliich latcr resulted in trade unionism.
The tvorliers, working under a conin~onemployer, faced conimon problelns and
common tasks. They developed common sentiments, and organised themselves into
associations which could meet the e~nployerson a basis ofequality. The inchoate
I a b o ~organisations
~r had to cross many hilrdles before tliey could develop into fi11I-
fledged stable trade i~nions.Tlicre were internal dissentions, persistent and determined
opposition from the employers, merciless persecution and suppression by tlie statc
(For esaniple, in Engla~id,France, Germany and the United States, combinations of
workmen per sc were declared illegal), and the full-throated conde~nnationoftrade
unionism by the advocates of free co~npetitionand luissez-fuire.I n spite ofthese
efforts at s~~ppression, trade i~nionscoritinued to grow, solneti~nesworking
ilndergrou~:dand sometimes openly. Tliey continued to defy the laws prohibiting the
coliibination of workmen (Combination Acts of 1799 and 1800 in Great Britain, for
example) and the judicial pronouncements (particularly, tliejudgement in the
Philatlelphia Cordwainers Case of 1806 in the United States) against the combinations
of worknie~~. Under incessant pressures from tlie workers and their organisations. the
law and the attitude of the coi~rtsgradually came to be ~llodified.The history of the
trade union lnovelnent evcrywhere is a history of blood, tears and toils. Trade unions
in all the ca;sita!istcountries have passed through three stages: (a) outright
si~pprt:ssion,(b) limited acceptance and tolerance, and (c) general acceptance and
recog~~ition. However, trade i~nionsin tlie world today are not at the same stage of
deve1cpme1-~t everywl~cre.I n some co~~ntries, especially in those under hitherto colonial
rille ar~ddictatorships, trade i~nionshad to struggle hard till recently to cross the first
stage; in many ~~nderdeveloped countries free from colonial yoke, tliey are in tlie
seconcl stagt:; and in the fi~ll-fledgedindustrially advanced capitalist democracies, they
are in the third stagc. In the co~rlrni~n
isr countries, trade unions occupy an altogether
different position and status.
Trade Union Development
4.3 DEVELOPMENT OF TRADE UNIONS IN INDIA and Functions
Post-Independence Period
The post-Independence period witnessed fi~rtherdisintegration of tlie AITUC. In 1948,
tlie socialisls wlio liad hitherto been working in the AITUC left it arid established a
separate 11alional federation cal lecl Hind Mazdoor Panchayat (HMP). The Indian
Federation l ~Labour
f (IFL), which was languishing since the end of tlie war and the
partition of tlie country in 1947. merged with tlie HMP, and a new organisation -the
Hind lvlazd3or Sablia (HMS) came into being in December 1948. Some trade union
leaders, wlio attended tlie meeting called by tlie socialist leaders in December 1948 to
form the HPVIS, did not agree M itli tlie principles and objectives ofthe HMS. They,
tlieref~re.decided to set up another organisation. Consequently, on April 30, 1949. the
U n itecl 'Tratle Union Congress (UTUC) was formed by radicals outside the Communist
and Soc~ali:;tgroups.
After ,lie ac'option oftlie constitution in 1950, the role of political parties became all
tlie more in~portant.Not only new political parties came to be formed, but also the
existing political parties witnessed splits for one reason or tlie other. Tlie political
parties tried their bcst to keep as Inally trade i~nionsand workers as possible under
tlie~ri ~flucnceand control. These developnients liad their repercussio~ispntlie trade
union niovtiment also. I n 1955, Bharatiya Jan Sangh established tlie Bharatiya
Mazdoor S:lngh (BMS), wliicli later came under the influence of the Bliaratiya Janata
Party. When the Indian National Congress was divided into the Ri~lingCongress and
the (I~gani~ation Congress, the former took over the INTUC, while the latter
establislietl in Ahmedabad a new organisation called the National L a b o ~ ~ r
Orgal; isaticln (NLO). Si~iiilarly,l lien tlie Communists divided into tlie CPl and CPM,
the 417'1IC ealiie under the contrc)I of tlie former, while the latter set up tlie Centre for
Indial; 'l'racqe Unions (CITIJ).
Tlie UTIJC broke into two -one with headquarters at Central Avenue and tlie other
at Lec in Sarani, Calcutta. Both tlie UTUC (Central Avenue) and the UTUC (Lenin
Sarani) claim to be tlie genuine UTUC. Later on, two other central federations of
trade ~ ~ n i o nnamely
s, National Front of Indian Trade Unions (NFITU), an Independent
organisation and Trade Union Coordinatio~iCentre (TUCC). There are a few other
organisations such as tlie Hind Mazdoor Kissan Pancliayat (HMKP), the Indian
Federntiori of Free Trade Unions (IFFTU), and Bharatiya Kamgar Sena (Shiv Sena,
Muml~ai).t3ut they are not as pro~ninentas tlie other central trade union organisations.
Table 1 shows tlie membership figures often central trade union organisations,
numb:l- ant1 membership wise, as claimed by them and as verified by tlie Chief Labour
Commissioner for recognising them for consultation and giving them representation on
natio~~nl and inter~iationaltripartite forums as on December 3 1, 1989.
Table 1: Central Federations of Trade Unions and their Membership (1989) Trade Union Development
ant1 Functions
Name of the Central Federation
1. INTUC
2. Cl TU
3. BMS
4. AITUC
5. HMS
6. N LO
7. UTUC
8. UTUC-LS
9. N FlTU
10. TUCC
The central federations oftrade unions have also associated themselves witli world
labourorganisations, s ~ ~ casl iInternational Confederation of Free Trade Unions
(ICFTU), a non-conimunist organisation, World Federation of Trade Unions (WFTU)
(Communist), and World Federation of Labour (WFL) recognised by tlie ILO and tlie UNO.
I
iii) Can change tlie name ofthe union, amalgamate it with some other union and
dissolve it i~nderintimation to tlie Registrar of Unions, as these changes will take
effect front tlie date they are registered by the Registrar.
iv) Can claim immunity from criminal and civil prosecution for bonafide trade i~niori
activities.
v) Can appeal against tlie order of tlie Registrar withdrawing or cancelling tlie
registration of tlie union in a Civil Court.
Registration oftlie union can be cancelled or withdrawn by tlie Registrar of Trade
Unions if it lias been obtained by fraud, or by supplying wrong information, or by
mistake or if it has ceased to exist, by giving two month notice to the Union specifying
the reason for withdrawal or caricellation. This order can be appealed against in a
Civil Court.
I
ii) Negotiating and setting terms and conditions of employment and remuneration;
iii) Improving tlie status arid working arid living conditions of workers;
iv) Promoting econornic and social interests of its members.
I
Some i~nionshave also as their objectives to undertake social security measures where
the State lias not assumed this responsibility, and organise welfare activities and
organise then1 to become literate leaders and union-conscious.
I
Froni the above ob.jectives reflected in various theories of trade i~nions(summarised in
Appendix B) it is obvious that the primary function of a trade union is to promote and
protect the interest of its members. The i~riiondraws its strength from the firrids and
general support provided by its members. It has, therefore, to strive to secure better
wages and improve their terms and conditioris of eniployrnent and generally to
advance their economic and social interests so as to achieve for them a rising standard
of living.
Originally and traditionally tlie only function oftrade i~nio~is
was econo~nic,that is,
rescuing workers from exploitative employ~nentand working conditions, and use their
collective strength to ensure workers adequate and fair wages, reasonable working
hours. safe and healthy conditions at work, periodical rest and leave, some essential
amenities at work place like wliolesorne drinking water, first aid, washing and resting
facilities. 111fact, most of the early demands of the unions which caused disputes
Trade Clnionis~n healthy working conditions, and job security. It is gradually that tlie i~nionsstarted
adding 1.0 tlie list oftheir demands such facilities as housing, medical aid, recreation,
constiti tion ofwelfare fi~nds,and social security rneasures like sickness, disability,
maternity benefits, gratuity, provident fi~nd,and old age and family pension.
Social Functions
Besides tlie main economic fi~nctionsconsisting basically of organising i~nionsand
in-~prov~ n gtheir terms and conditions of employ~nentto enable workers to meet their
pl-ysical needs, some unions have now started undertaking and organising welfare
activities and also providing variety of services to tlieir members and so~iietimesto tlie
coni~ni~nity ofwhich they are a part, wliicli may be grouped i~nderfollowing heads:
i) Welfare activities provided to improve tlie quality of work life including
orsanisation of mutual fund, cooperative credit societies for providing housing,
cooperative stores, cultural programmes, banking and medical facilities and
training for women in various crafts to help them to supplement tlieir family
in(:on~e.
ii) Education: Education of members in all aspects of their working life including
in- proving tlieir civic lift:, awareness in the environment around them,
enhancement of their knowledge particularly in regard to issues that concern
them, tlieir statutory and other rights and responsibilities, workers' participation
scheme, and procedure for redressing tlieir grievances. Some central union
organisations are also assisting tlie Government in implementing the Workers'
Etlucation Scheme.
iii) Publication of periodicals, news letters or magazines for establishing
ccmmi~nicationwith their members, making the latter aware of union policy and
stiind on certain principal issues and personnel matters concerning members,
such as births, deaths, marriages, promotion and achievements.
iv) Research: Of late, this is gaining importance and is intended ~nainlyto provide
updated information to i~nionnegotiators at the bargaining table. Sucli research
is to be more practical tliau academic, co~icerningproblems relating to day-to-
d2.y affairs oftlie i~nionand its activities and union and nianagement relations.
Some oftlie research activities are : (i) collection and analysis of wage data
including fringe benefits, and other benefits and services tlirougli surveys of
cclmparative practices, data on working conditions and welfare activities; (ii)
preparation of background notes for court cases and also position papers for
i111io11
officials; (iii) collection and analysis of macro data relating to tlie
economy. industry sectors etc.
A I1 tlie above mentioned activities and services are considered normal activities of
unions in the Trade Unions Act which stipulates tlie objectives on which general fillids
ol'tlie i~nioncan be spent.
Politic!alFunctions
For discharging above fi~nctionsunions have to operate not only 011 social, economic
and civic fronts, but also on political front. Unio~isliave to influence Government
policy decisio~isin tlie interest of workers. Legislative support wliicli unions require
for realising some of their objectives and achievement of their long-term interests has
taken them into tlie region of politics. Unions are not only to contribute in tlie
formulation of policies but liave also to see that policies are implemented. I n several
countries therefore, political process of tlie Government and participation in it have
been attracting the interest of unions increasi~igly.Whether a union gets directly
associated with a political party, or has its ow11wing, slioi~lddepend upon Trade Union Development
and Functions
circumstances in each country. Considering that such political action / association is
legitimate. the Trade Unions Act, 1926, per~nitsthe constitution of separate political
fi~nclto facilitate political action bya union.
The type and tlie extent of unions' participation in the political process of the
Govern~nentdepends largely i~ponthe stage of economic and social development. It
ranges frotn the joint consultation at the plantlind~~stry level to work on bodies like
tlie Economic and Social Council in France, Planning Co~nmissionin Sweden, or the
Economic Council i n Denmark. 111a number ofcountries law specit'ies tlie activities in
wliicli tlic i~nionsmay engage. I n Sweden and Netherlands unions are made
responsible for tlie implementation oftlie labour and social security legislation. TIILIS,
while a i~nionli~rictionsin the interest of its niem bers. it should also accept community
responsibilities. Co~isciousnessofthis wider responsibility will vary from country to
country, depending LIPOII tlie extent of wage employment. In a country like India wliere
self-c~iiploynientis sizeable, unions have to ~naltespecial effort i l l understanding the
intcrest of the total commu~iity.Tliis aspect oftlie role of unions in a developing
economy Iias been empliasised in our successive five year plans. It is i n recognition of
this fact tliat tlie very first Planning Advisory Board constit~~ted in 1950, had two
lahour rcpresentatives on it. Since then tlie labour representatives have been
associated witli Development Councils set up for individual industries and otlier
tripartite bodies like tlie Indian Laboi~rConference and Advisory Boards at the
Central and State levels in the formulation and iniplementation of labour programmes.
Tliis has enabled trade i~nionsto perform tlieir primary function for meeting the basic
needs of their members as listed by the First National Labour C o ~ n ~ i i ~ s son
i oLabour
~i
( 1969). The fi~nctionsare:
(i) Securing for worlters fair wages; (ii) Safeguarding security of tenure and
improvement in service conditions; (iii) enlargement of opportunities for promotion
and training; (iv) improvement of working and living conditions; (v) provisio~ifor
educational, cultural and recreational facilities: (vi) promotion of individual and
collective welfare; (vii) Facilitation oftechnological advance by broadening the
i~nderstandi~ig of workers witli their industry; (viii) offering responsive cooperation in
improving levels of prodi~ctionand productivity, discipline, and high standard of
quality.
I n fact, most of tlie i~nionsat craft. illlit and plant levels wliicli are still described as
fighting unions, attend mostly, if not only, tlie basic needs of their members mentioned
above at (i) to (vi). It is only tlie trade i~nionorganisation which are attending to some
extent tlie functions and needs ~ne~itio~ied at (vii) and (viii). Tliis is attrib~~ted
mai~ilyto
tlie fact that ernploylnent and service conditions of workers still need considerable
improvement. So, tlie primary function of unions still remains that of improving the
eco~iomicconditions of workers either by collective bargaining, or by other peacefill
means, or by direct or militant action.
Activity B
Explain the fi~nctionsof trade ~ ~ n iof
o ~your
i orga~iisatio~i
or any organisation you are
familiar with. Co~npareand contrast tlie functions of important trade unions i n India.
i
-- i
1
STRENGTHENING OF TRADE UNIONS
4.7 -
-
Some oftlli: weaknesses of trade 1.1nio1isin India are: small ~ne~nbersliip, paucity of
f i ~ ~ l dpoliticalisation
s, arid mi~ltiplicityof ~ ~ n i o nand
s , outside leadership. These
inherent wcakrlesses intensify inter-union rivalries and reduce bargainin;: power of
union:; and their effectiveness in attaining their main objective of improviug
e~nplcymer~t and working conditions oftheir members. For strengthening unio~lsit is
necessary that tlieir wealinesses are minirnised, if not totallyeradicated, and sooner it
is dont: the better for reducing conflicts and improving union-managen~entrelations.
All these problems were considered in detail by the First National Co~nmissionon
Lahour i 1969), and it recomnie~idedtlie following measures for resolving them:
i) Tllz 7'r,adeUnions Act, 1926 should be amended to provide for:
a) C'oii1pulsoi.y registrrrtion qftlniow. (Cnmnzent:Although tlie Trade UIIions
ACI, 1926 was amended in the year 2001, the amending Act has not ~ n a d c
any special provisions for compulsory registration).
b) Rcc!zlcfiow ofpercerrfugeofnu:side~*.r
assqffice hc.are7)s.
(Comment: Although the Trade Unions (Amendment) Act, reduced tlie total
nu~nberof oi~tsidersas office-bearers to 1 /3rdor 5 , whichever is less, there is
no guarantee that such restrictior? in tlie number of outsiders will actually
chec:k the uridesirable effects oftlie outside leadership).
c) M)r/rh/ysuh,rcriptioi~fi,rurliou; 7ncn~hel*.vhip
111c;!y be incr.euL~ed@on7
25pai.c.e
to K.1. I .
iCornnient: This suggestion was made by tlie tist NCL in 1969. Interestingly.
after a lapse of 32 years, the second National Commission prescribed Re.1 as
subscription fcc per annum for rural workers, Rs.3 per annum for workers in
the i~norganisedsectors, and Rs. 12 per anncm for workers in any other case.
Even ifthese subscription fees are prescribed per month, the same would not
improve the financial position ofthe i~nions.Assuming that tlie ~ ~ n i o fail
n s to
gct political funds and donations, the unions should work out appropriate
sol~~trons as to how to i111prc)vetheir financial position. One possible soli~tio~l
is l l ~ athe
l unions can take up some consultancy work in the rural areas, for
example, assisting the Ciran~Panchayats in ~naintainingtheir accounts etc.)
d) 7-/1em1ininlu17lrz~inlherI " C Y Z I ~ ~ ~ C Lstarting
/,~O~ tr new zrwio17 shozrltll~c~
ruisccl'fi,
I O % o j c?fr~'gz~/ur
c n p / o ~ ~ rof'cr
c s plant ,vubject to u nlinirnunl c?f 7 or I00
is /O~I)L'I'.
\.i,/ri~.hevor
(Comment: The 'I'rade Unions (Amendment) Act, 2001 has incorporated a
ncw provision i n tlie Trade Unions Act, 1926 in this regard. 'llie new
r~rovisionmay reduce the problem of ~nultiplicityof unions to some extent).
e) i.!n encr11lirrgprovi.sionn~~r,v
be mczdc /open,lit check-cqf.sy,sten~fbr
collec~ionof rr~enrhershiyszrbscription 011 de'emarzd b.y u rc.copi.~cdzmion.
ii) Forniation of craft unions should be discouraged. Craft unions operating in a
~~nit/industrysl~oiildamalga~nateinto an industrial i~nion.Formation ofcentre-
cum-industry and national i~idustl-ialfederations shci~ldbe encouraged.
iii) Steps s110~1ldbe take11to promote internal leadership and give it a more
responsiblt: role. The ex-employers should not be treated as outsiders.
(The 'Trade Unions (Amendment) Act, 2001 has i~icorporatedtlie suggestion of
the fisst NClL with regard to the outsiders.)
iv) LJnity in the tradc union movement has to grow fro111within.
v) Collective bargaining should be the main method of settlement ofdisputes.
f
vi) An independent authority for illlion recognition will hasten the process of inter- Trade Union Development
union rivalry. (Tlie Second National Corn~nissionon Labour (2002) made a and Functions
sin1i lar suggestion.)
vii) Apart froni paying attention to the basic responsibilities towards their members,
unions should also take social responsibilities such as (a) pro~notionof national
integration; (b) influencing tlie socio-economic policies of the cornniunity
4.8 SUMMARY
In this unit we have considered the growth oftrade unions in India since tlie middle of
the 19'"century. Trade union movement in Indian has been following tlie same course
as in the developed countries. But it lias not been so turbulent as in Great Britain and
USA, ancl some other coiuntries. Quantitative growth of trade unions has been
tremendous (see Appendix D). Perhaps in no other country the number of unions at
craft, pla~it/u~iit,
industrial and national levels is so large as in tliis country. But tliis
does not retlect the real strength oftlie trade unions, which is niuch less. Qualitatively
the growtli lias not been so healthy as in some countries. It still suffers from so many
weaknesses, such as: sniall membership, paucity of funds, multiplicity,
politicalisation, external leadership, and inter-union rivalries.
Functions oftrade unions have also been examined explaining how they have been
operating not only in the economic front, but also 011 social, civic and political fronts.
While many unions are still struggling to improve wages and employment and
working conditions of tlieir members, but there are a few unions which are financially
somewhat sound, and they are undertaking welfare, educational and cultural activities.
Most of the central labour organisations are operating on political front, and some of
them are participating in tlie formulation and implementation of the Governments'
labour policies and enactment of labour legislation.
Trade Union: Sidney and Beatrice Webb define a trade unio11as "a co~ltinuous
association of wage earners for the purpose of maintaining and improving the
conditions of their worlting life". This classical definition still holds good so far
as actual practices of unions are concerned.
Under the Trade Unions Act, 1926 this term is defined as any combination whether
temporal-y or permanent. formed primarily for the purpose
. . ofregulating the relations
between workmen and employers, or for imposing restrictive conditions on the
condi~ctof any trade or business, arid incli~desany federation of two or more trade
unions. In other words, the term union applies not only to co~nbinationand
associations of employees only. but also to that of the employers.
Trade Union Movement: This term apples to all the various types of long
term associations of worlters that appear in industrialised and partially
industrialised econonlies.
Trade Unionism: This term refers to thc organised needs, wished, aspirations
and attitudes of the working class. Traditionally it has ascribed to workers'
organisations, a particular philosophy and function of col lective representation
to project and pronlotc interest of workers within a given socio-economic
system.
We, thc representatives of four central organisations, namely, INTUC, AITUC, HMS
and UTUC agree to observe the following basic principles for maintaining har~nonious
inter-union relations.
1) Every employee ill an industry or unit shall have the freedom and right to join a
union of his choice. No coercion shall be exercised in this matter;
2) There shall be no dual membership of unions (In the case of representative
unions, this principle needs further exa~nination).
3) There shall be unreserved acceptance of, and respect for democratic functioning
oftrade unions.
4) There shall be regular and de~nocraticelections ofexecutive bodies and office
bearers of trade i~nions.
5) Ignorance and or backwardness of workers shall not be exploited by any
organisation. No organisation shall make excessive or extravagant demands.
6) Casteis~n.com~nunalismand provincialis~nshall be eschewed by all unions.
7) '171iere shall be no violence, coercion, intirnidation, or personal vilification in
inter-union dealings.
8) AI I Central Labour Organisations shall combat the for~natio~i
or continuance of
company unions.