SW 7103 :

ORGANIZATIONAL BEHAVIOUR AND

EMPLOYEE DEVELOPMENT
Unit I : Human Relations in Organizations
Trade Unionism – historical development,
strengths and weaknesses, law relating to trade
unions,
Problems and status of Trade unionism in
post globalization period.
 Structure
 What is trade Union
- Human need for unionizing
- Definition
- Functions
Historical development
 Evolution in global context
 Indian context
Initial stage
Trade unionism after world war I
1970s till Globalization
Post globalization period
 HUMAN NEED FOR UNIONIZING :

 Security
 Satisfaction of self expression
 Social needs for recognition and identity
 Furtherance of interests
 DEFINING A TRADE UNION
 An organization
 Membership consists of employees
 Seeks to protect and promote their interests and
rights
 Both in work place and society
In particular..
 Seeks to regulate the employment relationship,
 Through the direct process of collective bargaining
with management
 TRADE UNION FUNCTIONS
six distinct aspects of trade union function :
1. Power – collective strength as a pressure group
2. Economic Regulation – maximize the wages and
employment
3. Job regulation – establish a joint rule-making system
4. Social Change – seek to develop a society reflecting
their views
5. Member services – range of benefits to individual
members
6. Self fulfillment – self expression of individuals
 Purpose..
Regulating the relations between..
 Workmen and Employers
 Workmen and Workmen
 Employers and Employers

 for imposing restrictive conditions on the

conduct of any trade or business..
 Historical development

Evolution at Global LeveL :

 A direct by–product of industrialization at international level
 5 M’s of Industrialization :
i. Money,
ii. Man,
iii. Material,
iv. Machines,
v. Management.
 Early 19th century at Europe,
 Marx , Lenin etc. revolutionaries spending their time in exile,
 Capital Formation Theory – Karl Marx
 Healthy discussion on uniting workers & bringing change.
 Development in Indian Context
2 parameters –
i. Time Frame
ii. Benchmark of characteristics
Two impetus for changing trends in trade unions –
i. Political current of freedom movement
ii. Political affiliation of powerful lobbies
 Initial Stage :
1875 : first recognized effort to organize the labour by
M.S.S. Bengali.
no substantial improvement in the lot of Indian
labour.
1881 : first industries act by govt. of India.
FOCUS on – i. safety, ii. Security, & iii.welfare
Mr. Lokhande – “ Bombay Mill Hands Association”.
- “Deenbandhu”– labour magazine.
1885 : formation of Indian National Congress by A.
O. Hume.
1905 : Bengal division. In Calcutta the WORKERS
of printing presses organized themselves into a
trade union.
1907 : postal workers formed a trade union in
Bombay.
1910 : A Labour Welfare Association was
established in Bombay.
Trade unionism in India after World War - I

1919- formation of ILO.

an international platform for 3 Stakeholders –
i. state, ii. workers, & iii. Employers
1920 – All India Trade Union Congress was
established under the provisions of Government of
India Act, 1919.
to look after the general, political and economic
progress of organized workers as a whole.
• 1923 – workmen’s compensation act.
First social security act for Indian workers with
extensive focus on occupational diseases
1926 – TRADE UNION ACT.
Leadership of trade unions went over to
communists.
Trade union divided into two – peaceful &
constructive outlook vs radical approach.
• 1929- All India Trade Union Federation was
established by unions separating from INTUC.
• Mutual strife hurting the interests of workers.
• 1931 – All India Red Trade Union Congress came
into being.
• 1934- grand session of Indian trade union
congress and AIRTUC was abolished.
• 1938- merger of Trade Union Federation into
AITUC credited to Shri V.V. Giri.
1936- payment of wages act
 To ensure prompt payment
 Recommendations of fixed wage periods
 Reduction of all deduction from wages
 Applied to all factories and railways.
 data sheet :
 In 1936-37 there were 272 unions with a
membership of 2,61,047
 In 1937-38 there were 420 unions with 3,90,112
members
 In 1938-39 there were 562 unions with 3,99,159
members
1926 -35 – age of moderate trade unions
1935 onwards – age of militant trade unions.
1946 – Bombay Industrial Relations act came
out as an amenment in Bombay Industrial
Disputes Act 1938
 Recognition and conferring various rights to
trade unions.
1947- Industrial Disputes Act.
 Investigation and settlement of industrial
disputes.
1948 : Employees State Insurance Act
 gave rise to the idea of contributory nature of
insurance
 Provided immunities to trade union leaders
against certain offences.
1948 : in Calcutta on Decemeber 24 Hind
Majdoor Sabha was constituted
 In sympathy with socialists neither allied to
congress nor to communists
 30TH April 1949 : United trade union congress
 who disagreed with the agenda of Hind
majdoor sabha
March 1964 :Indian Federation of Independent
Trade Unions ( IFITU), was established at a
meeting held at Patna.
 THE FOUR CENTRAL ORGANIZATIONS TILL
1960s
SERI NAME YEAR OF OBJECTIVE
AL ESTABLISHM
NO. ENT
1 INDIAN NATIONAL May 1947 An all round and peaceful
TRADE UNION development of its individual
CONGRESS members.
2 HIND MAZDOOR 1948 A democratic socialist society.
SABHA
3 ALL INDIA TRADE 1920 Dominated by communists
UNION CONGRESS aims for complete overthrow of
power
4 UNITED TRADE December 1948 Building a central platform for
UNION CONGRESS labour, free from the
domination of political parties
 1967 to 1990
 Focus on 4 mechanisms of conflict resolution :
i. Negotiation
ii. Conciliation
iii. Arbitration
iv. Adjudication
 Focus on three dynamic forces for power building and
social change :
i. workers
ii. Students
iii. women
 1967-1990
• Highlights of the period :
 Confrontation approach : Dutta Samant & George
Fernandes
 Negotiation approach : R.J. Mehta
 Dutiful trade unions : 1975-1977
 Emergency period
 Subservient to the government
 Huge increase in production
 Fundamental rights suspended : hire & fire policies
 Major constitutional amendments
during emergency
 ESMA : essential security maintenance act
 DIR : Defense of India Rules ( for internal
security)
 MISA : maintenance of internal security act
 can put behind the bars for 6 months without
legal proceedings.

 POTA : prevention of terrorism act

 FCRA, 1976
• Foreign contribution regulation act :
 No organization can receive money/aid from
other countries without approval of the
ministry of home affairs
 Still applicable for NGOs.
 Period of instability
• By 1980s the nation observed only 4 prime
ministers but from 1980 to 1990 it had almost
20 occasions when the Prime ministers were
changed

• Political instability ----------> unstructured

trade union movements
 Structure of Trade Unionism
• Structural characteristic is dealt with at two broad
levels : local and national .
• Two illustrations : enterprise–level union and
industry-level union.
• Enterprise–level union: eg Petroleum industry with
a membership spread over different parts of India.
• Industry-level union : eg. A representative union in
silk, textile processing and hosiery industries
located in a city.
 Trade Unionism at the Local Level
Features :
1. Essentially need based formation
2. Trend of political unionism ( as not sufficiently self reliant so forced to
seek external assistance and services.)
3. Unevenness in the size- distribution and mushroomed growth of small
unions
4. mostly unable to develop an effective managing system.. Decisions
mostly on ad hoc basis since survival is key requirement )
5. Leadership crisis ( aspiring leaders prefer to move out for better chances )

6. Weak financial status

7. Excessive reliance on laws and role of leaders limited to “case – pleaders”
only.
 Trade Union Scene at the National Level

Two of the largest in India :

a. All India Trade Union Congress ( AITUC ),
b. Indian National Trade Union Congress
( INTUC) .
Convergence in policy of AITUC and INTUC

i. Called for a revision of existing wage structure

ii. Relentlessly pleaded for higher rate of bonus
than the statutory minimum
iii. Fought for ensuring several social security
measures like provident fund, gratuity, insurance
benefit, maternity benefit, lay – off
compensation, etc.
iv. Opposed rationalization or automation, and
v. Demanded workers participation in management.
 Era of Globalization
 Globalization presupposes the liberalization of trade
policies and privatization of the public sector
undertakings (PSUs).
Government of India adopted structural adjustment
policy.. Leading to –
a) Devaluation of currency
b) Privatization of PSUs,
c) Globalization of financial market
d) Decontrol of foreign trade
e) Delicensing of industries, etc
 Globalization in India
• 1992 : implementation of the new economic policy
of LPG..
• LIBERALIZATION : removing the restrictions
meant to limit the economy within the boundaries
of a nation state.
• PRIVATIZATION :inviting independent entrepreneurs to
share the ownership in the production and distribution of
economy.
• GLOBALIZATION : removing the barriers of boundaries.
 Post Globalization period
• Entry of TNCs :
 local disputes to be solved internationally
 Widening gap between rich and the poor

 Changing profile of work force:

 urbanite,
 educated,
 technologically updated,
 right based attitude

 Feminization of work force

 Shift from socialist to competitive economy
Change in management approaches
Factory manager ---> personnel manager --->Human resource manager
HRD APPROACH : investment in manpower for optimum growth & development.
 Focus on identification of needs why people join trade unions
 Using the skills and knowledge base for dissolving the trade unions
 Status of stakeholders to workers
 Beginning of non-economic welfare services
 Making workplace more workable
 Standardization of methods
 Enforced co operation and productivity norms
 Focus on individual achievement s, promotion and rewards
 SHIFTING THE BALANCE OF POWER IN FAVOUR OF MANAGEMENT
 Strengths of Trade Union movement in
Globalized scenario

a. Stronger support of intelligentsia in terms of recognition of

their efforts
b. Larger scope for liaisoning with one another at global level
c. Greater recognition and emphasis on implementation of human
rights policies.
d. Growing importance of HRD as a distinct unit of specialization
at large scale industries and enterprises
e. Enhancing awareness and aggravating discontent among
employees at global level,
f. Focus on extra- monetary services by HRDs.
 Challenges to Trade Union movements in
Globalized scenario
1) Weakening of leadership at two primary levels – role &
scope.
2) Diminishing unity among members .
3) Increasing focus on bargaining with management rather
than system of inequality.
4) Strong bifurcation between white-collars and blue-
collars trade unions.
5) States support to entrepreneurs.
6) Strong hold of industrialists on policy making and
implementation
 Relevance of trade unions in current scenario

Necessary and relevant as long as unfairness and

injustice remain in employment relations.
 to open the new horizons of organizing the
unorganized workers
To pay due attention to the grievances of graded
vulnerabilities of a variety of work force
To ensure the attentiveness and enhance humane
Approaches in HRD.
To keep alive the dreams of a just and egalitarian
society.
 References
1. Fisher, W.F. & Ponniah, Thomas. (2004).Another World Is Possible,
popular alternatives to Globalization at the World Social Forum. Nova
scotia : Fernwood Publishing Ltd.
2. Goldin ,I. & Reinert, K. (2006). Globalization For Development, Trade,
Finance, Aid, Migration,And Policy.New Delhi: Rawat Publications.
3. Sharma, R.K. ( 1997). Industrial Labour In India. Delhi : Atlantic
Publishers and Distributors.
4. Ramanujam,G. (1986). Indian Labour Movement. New Delhi : Sterling
Publishers Pvt. Ltd.
5. Giri, V.V. (1972). Labour Problems In Indian Industry. Bombay : Asia
Publishing House.
6. Salamon,M. ( 1998). Industrial relations, theory and practice; third
edition. London : Pearson Education.
7. Ghosh,B. (January 2008). Economic Reforms And Trade Unionism In India
– A Macro View. The Indian Journal Of Industrial Relations, Vol. 43, No.3.