TRADE UNION

TOPICS TO BE COVERED

Definitions
History (In India)
Features
Objectives
Functions
Structure
Problems

HISTORY
Development of modern industry,
especially in the Western countries,
can be traced back to the 18th
century. Industrial development in
India on Western lines, however
commenced from the middle of the
19th century. The first organised
Trade Union in India named as the
Madras Labour Union was formed in
the year 1918. Since then a large
number of unions sprang up in
almost all the industrial centres of
The entrepreneurs also formed their
organisations to protect.

DEFINATION
Trade Unions are the groups set-up
with the aim of trying to create fairness
and job security in a workplace.
Section 2(h) of the Trade Union
Act,1926 has define a trade union as:
Any combination, whether temporary
or permanent, former primarily for the
purpose of regulating the relation
between workman and workmen or
between employers, or for imposing
restrictive conditions on the conduct of
any trade or business, and includes any
federation of two or more trade unions.

Features of trade unions:

I.It is an organisation formed by
employees or workers.
II.It is formed on a continuous basis.
II.It is a permanent body and not a casual
or temporary one.
III.It is formed to protect and promote all
kinds of interests economic, political and
social-of its members. The dominant
interest with which a union is concerned is,
however, economic.
IV.It includes federations of trade unions
also.
V. It achieves its objectives through
collection action and group efforts

What are trade unions?

Trade unions are organisations that represent
people at work. Their purpose is to protect and
improve people's pay and conditions of
employment. They also campaign for laws and
policies which will benefit working people.
Trade unions exist because an individual worker
has very little power to influence decisions that
are made about his or her job. By joining
together with other workers, there is more
chance of having a voice and influence.
All sorts of jobs and industries are covered by
trade unions. Some unions represent people who
do a particular job or work in a specific industry
- for example, the National Union of Journalists
(NUJ), as its name suggests, represents
journalists, and the Union for Finance Staff
(UNIFI) is made up of people who do different
jobs in the financial sector.

What do unions do?

The main service a union provides
for its members is negotiation and
representation. There are other
benefits people get from being
members of trade unions.

Negotiation
Representation
Information and advice
Member services

Negotiation
Negotiation is where union representatives discuss with
management issues which affect people working in an
organisation. The union finds out the members' views
and relays these views to management. There may be a
difference of opinion between management and union
members. 'Negotiation' is about finding a solution to
these differences. This process is also known as
'collective bargaining'.
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 organisations, unions are said to be 'recognised'
for 'collective bargaining' purposes.
Pay, working hours, holidays and changes to working
practices are the sorts of issues that are negotiated.
People who work in organisations where unions are
recognised are better paid and are less likely to be made
redundant than people who work in organisations where
unions are not recognised.

Representation
Trade unions also represent individual members
when they have a problem at work. If an employee
feels they are being unfairly treated, he or she can
ask the union representative to help sort out the
difficulty with the manager or employer.
If the problem cannot be resolved amicably, the
matter may go to an industrial tribunal. Industrial
tribunals make sure that employment laws are
properly adhered to by employees and employers.
They are made up of people outside the workplace
who listen to the employer's and the employee's
point of view and then make a judgement about the
case. People can ask their union to represent them at
industrial tribunals. Most cases that go to industrial
tribunals are about pay, unfair dismissal,
redundancy or discrimination at work.

Information and advice

Unions have a wealth of information
which is useful to people at work.
They can advise on a range of issues
like how much holiday you are
entitled to each year, how much pay
you will get if you go on maternity
leave, and how you can obtain
training at work.

Member services
During the last ten 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

What is the role of trade

unions in industrial
disputes?
Most 'collective bargaining' takes place quietly and
agreements are quickly reached by the union and the
employer. Occasionally disagreements do occur and the
two sides cannot agree. In these cases the union may
decide to take industrial action.
Industrial action takes different forms. It could mean an
over time ban, a work-to-rule or a strike. There are
strict laws which unions have to follow when they take
industrial action.
A strike is only called as a last resort. Strikes are often
in the news but are rare. Both sides have a lot to lose.
Employers lose income because of interruptions to
production or services. Employees lose their salaries
and may find that their jobs are at risk.
Usually employers and employees will go to some
lengths to avoid the costs of strike action to both
groups.
The Advisory, Conciliation and Arbitration Service
(ACAS) is often used to help find a solution to a
dispute which is acceptable to both sides.

OBJECTIVES

Better Wages
Better Working conditions
Bonus
Resist unsuitable schemes
Secure welfare
Project Interest of workers
Social welfare
Organisational gowth and stablilty

Why do workers join

unions

Greater Bargaining Power

Makes their voice heard
Minimise discrimination
Sense of security
Sense of Participation
Sense of Belongingness

Reasons Why Employees

Join Unions

Protection
Social pressure
Compulsion
Political beliefs
Solidarity
Tradition
Pay and conditions
Communication
Health and safety

CRITICISM OF TRADE
UNION BY EMPLOYERS

Lack of education
May not welcome change
Strick on Illogical basis
Creation of Artificical scanity of
labour
Undue demands relating to wages

STRUCTURE OF TRADE
UNIONS

Plant level Federations

Local level Federations
Regional Level Federations
National Level Federations

Unions structure
diagram
Union Members
Shop Stewards (Union
Representatives)
Branches District and Regional
Offices
National Office

 Trade unions are democratic organisations

which are accountable to their members for
their policies and actions. Unions are
normally modelled on the following structure
Branches - which support union members in
different organisations locally. There is
usually a branch secretary who is elected by
local members
District and/or regional offices - these are
usually staffed by full time union officials.
These are people who are paid to offer advice
and support to union members locally
A national office - the union's headquarters
which offers support to union members and
negotiates or campaigns for improvements to
their working conditions. At the top of the
organisation there is usually a General
Secretary and a National Executive
Committee, elected by the union's members.

TRADE UNIONS ACT

1926
Trade Unions Act, 1926 provides for the
registration of the Trade Unions with the
Registrars of Trade Unions of their territory.
Any seven or more members of a trade union
by submitting their names to the registrar of
trade unions and otherwise complying with
the provisions of the Act with respect to
registration may apply for the registration of
the Trade Union under the Trade Unions Act..

 AISGEF - All India State Government

Employees Federation
Center of Indian Trade Unions - Major
trade union
Hind Mazdoor Sabha - Membership,
objectives and trade union situation
Indian National Trade Union Congress History, aims, objectives and activities
NCOA - National Confederation of
Officer's Association of Central Publid
Sector Undertakings
Organized Labour - Article on role of
organized labour and trade unions in
economic liberalization
Trade Union India - Trade union
international of public and allied employees

Four important central organisations of

workers in India are
1. The Indian National Trade Union Congress
(INTUC). The Congress Party and the top congress
leaders formed the INTUC like Nehru and Patel were
associated with it. Every union affiliated to INTUC has to
submit its dispute to arbitration after exhausting other
means of settlement of disputes.
2.

The All India Trade Union Congress (AITUC).

This union serves as the labour forum of
Communist Party of India at present. It is
considered as the second largest union in India.

3. The Hind Mazdoor Sabha (HMS). It was formed

in Calcutta by the socialists who neither approved
INTUC nor AITUC. The HMS was organised
with a view to keeping its members free from any
political or other outside interference.

4. The United Trade Union Congress (UTUC). Those

persons who were dissident socialist formed it. It
functions mainly in Kerala and West Bengal.
5. Centre for Indian Trade Unions (CITU). The
Marxists separated from the AITUC in May 1970 and
formed the CITU.

In addition to the above, there are

four other central trade union
organisations. They are:
Bhartiya Mazdoor Sangh (BMS)
National Labour Organisation (NLO)
National Front of Indian Trade
Unions (NFITU)
Trade Union Congress Committee

PROBLEMS AND
WEAKNESS OF TRADE
UNIONS

Uneven growth
Limited membership
Multiplicity of unions
Outside leadership
Financial problems
Indifferent attitude of workers

SUGGESTIONS FOR
HEALTHY GROWTH OF
UNIONS
One Union Per Industry
Paid Union Officials
Development of Internal
Leadership
Recognition of Trade Unions
Improved Financial condition