Trade Union

Trade union-an association which represents the interests of a group of workers to

improve their pay and working condition.

Types :

 Craft unions. represent workers with particular skills.

Eg:- plumbers and electrician.
 General union :- include workers with a range of skills and from a range of industries.
 Industrial unions:- These seek to represent all the workers in a particular industry, for
example, those in the rail industry.
 White collar unions:- These unions represent particular professions, including pilots and
teachers.

*All India Trade Union Congress (AITUC) is the oldest and one of the largest trade union federations in the
country.

The role of the trade unions

Trade unions carry out a number of functions. They negotiate on behalf of their members on
wages, job security, working hours and working conditions.
include basic pay, overtime payments, holidays, health and safety, promotion prospects, maternity and
paternity rights, and job security.

Collective bargaining

Trade unions enable workers to press their claims through collective bargaining, this process involves
negotiations between union officials, representing a group of workers, and representatives of employers.

basis of wage claims

There are a number of arguments a trade union can put forward while asking for a wage rise

 workers deserve to be paid more because they have been working harder and have increased
productivity.
 industry whose profits have risen can afford to pay higher wages to its workers.
 A union may argue that the workers it represents, should receive a pay rise to keep their pay in line
with similar workers,this is known as comparability argument. For eg:- a union representing nurses
may press for a wage rise if doctors are awarded higher pay.
  workers need a wage rise to meet the increased cost of living. If the price level is rising by 5%, workers
will need a wage rise of at least 5% to maintain their wage’s purchasing power.
Factors affecting the strength of a trade union