Unit 2: Trade Unions: LH 10

Trade unions
Emergence of trade unionism
Objectives of trade unions
Trade union activities
Trade unions in service sector
Structure of trade unions in Nepal
Trade union movement in Nepal,
Trade unions related issues in Nepalese organizations
Provisions in Trade Union Act 2049 (1992).
Trade Unions: Concept
A trade union or labor union, often simply referred to as a
union, is an organisation of workers intent on "maintaining or
improving the conditions of their employment",
According to Sidney and Beatrice Webbs: “A trade union
is a continuous association of wage-earners for the
purpose of maintaining or improving the condition of
their working lives.”
A union is ‘what it does’ and unionism is ‘what it is’.
According to Nepal Trade Union Act 2049 section 2(d)
"Trade Union" means the enterprise level Trade Union
registered under this Act for the protection and
promotion of the occupational rights of the workers and
this expression shall also includes Trade Union
Association and Trade Union Federation.
Trade Unions: Concept
If an employer agrees to recognize a trade union the
employer has certain legal obligations towards the
union and its members.
The purposes behind establishing trade unions have
been dealt with workers interest and working conditions
at work place.
Examples include nurses' unions, teachers' unions,
drivers', labor unions, and lawyers' unions. They don't
work under management, but unions have the power to
accept or reject any terms and conditions on behalf of
workers.
Trade Unions: Characteristics
Association of Employees: A trade union is simply an
organisation of workers who are members of a specific class
of job, profession, trade, or business.
Association made Voluntarily: A worker voluntarily joins
a union. No one can be forced to join a union.
Permanent: Trade unions are typically considered
permanent bodies. Members may join and leave, yet the
union is still in place.
Shared Interest: Members of a trade union come together
over issues such as job security, better salary and conditions
of employment, and other issues of common interest.
Group Action: When a single employee complains about a
particular management decision, the trade union will step
in to help resolve the issue.
Importance of Trade
1. Unity is strength: Unions allow workers to come together
in a powerful, collective voice to communicate to
management their dissatisfaction and frustration.
2. Better terms and conditions: Workers who join a trade
union are more likely to have better terms and conditions
than those who do not, because trade unions negotiate for
their members through collective bargaining.
3. More holiday: Unions won the right for workers to have
paid holidays.
4. Higher wages: Trade union members in the UK earn on
average 6.5% more than non-unionised workers.
5. Security and stability: Trade union members are more
likely to stay in their jobs longer, on average five years more
than non-unionised workers.
EMERGENCE OF TRADE UNIONISM
The emergence of trade unions can be traced back to the
Industrial Revolution in the 19th century, when workers began
to organize to protest against poor working conditions and low
wages.
As industrialization spread and the power of factory owners
grew, workers realized that they needed to band together to
negotiate better terms and improve their livelihoods.
As an organized movement, trade unionism (also called 
organized labour) originated in the 19th century in Great 
Britain, continental Europe, and the United States.
Smaller associations of workers started appearing in Britain in
the 18th century, but they remained sporadic and short-lived
through most of the 19th century, in part because of the
hostility they encountered from employers and government
groups that resented this new form of political and economic
EMERGENCE OF TRADE UNIONISM
 At that time unions and unionists were regularly prosecuted under various 
restraint-of-trade and conspiracy statutes in both Britain and the United
States.
 the British movement favoured political activism, which led to the
formation of the Labour Party in 1906, while American unions pursued 
collective bargaining as a means of winning economic gains for their
workers.
 The first modern trade union, the Grand National Consolidated Trades
Union, was formed in the United Kingdom in 1834. From there, the trade
union movement spread to other countries and has continued to evolve
and grow to the present day.
 Today, trade unions exist in many countries and play a significant role in
shaping the policies and practices that affect workers' lives.
Workers rioting during the Standard Oil
strike, Bayonne, New Jersey, 1915
Objectives of Trade union
The generic goal of protecting and promoting workers’ interests
consists of such specific objectives as:
1. Improvement of economic status of workers
2. Shorter working day
3. Improvement of working and living conditions
4. Income security of workers (pension, provident fund,
compensation for work-injuries, protection against layoff,
reduction of expenditure and victimization)
5. Better health, safety, and welfare of standards
6. Respect and humane treatment from colleagues and supervisors.
7. Greater voice in industrial administration and management and
8. Improvement of political status.
9. Take collective action to enforce the terms of collective bargaining
10.Help settle their grievances.
Trade union activities
Economic Activities:
• Activities that result in the exercise of economic pressure on the
employer-e.g. collective bargaining, demonstration, strike,
boycott.

Political Activities:
• Political education of the workers.
• Establishing political parties and extending help to candidates of
other political parties who are sympathetic to cause of labor.
• Lobbing to influence the course of labor and other legislation.
• Participating in and representing the workers at advisory bodies.
• Developing aggressiveness and revolutionary urge amongst
workers.
• Protesting against government measures unfavorable to the
interest of workers.
Social Activities:
• Initiating and developing workers’ educations scheme.
• Organizing welfare activities such as mutual insurance, monetary and other
help during periods of strikes and economic distress.
• Running cooperatives.
• Providing housing facilities.
• Participating in community development and community protection
activities.
• Engaging in cultural activities.
• Cooperating with governmental agencies in social welfare programmes.

International Activities:
• Participating in the activities of the International Labour Organization (ILO).
• Associating with the international federations of trade unions such as the
World Federation of Trade Unions (WFTU), the International Confederation
of Free Trade Unions (ICFTU) and the International Trade Union
Secretariats.
• Sending monetary and other help to workers of other countries in their
time of need.
 Trade Unions in Service Sector
Although they traditionally served workers in manufacturing
industries, labor unions have attempted to respond to the rise of
service industries in economies globally.
Some service industries, such as fast food, have proven harder to
unionize than others.
The global growth of service industries began to overtake
manufacturing industries in employment during the mid-20th
century.
But Service industry employers hire fewer workers to run a
facility than do manufacturers and large factories, contributing
to difficulties for unionization in service industries.
One of these is the Service Employees International Union,
which counts 2.1 million North American workers in service
industries as members, as of 2011.
Trade Unions in Service Sector
The SEIU represents service employees in health care,
including nurses and home care workers, property services,
such as maintenance staff, and public services.
Attempts made to unionize among Starbucks employees in
2003 and among Jimmy John's employees in 2011 both
didn't pass an official National Labor Relations Board vote
necessary to recognize a union. Many attempts to unionize
the quick-service industry have been supported by the
Industrial Workers of the World.
The scenario of trade unions in the service sector varies
depending on the country and region. However, some
general trends and challenges faced by trade unions in the
service sector include:
 Conti..
 Decline in union membership: In many countries, the number of
workers who are members of trade unions has declined, particularly in the
service sector. This has weakened the bargaining power of unions and
made it more difficult for them to negotiate favorable conditions for
workers.
 Growing competition: The service sector is growing and becoming
increasingly competitive, which can make it difficult for trade unions to
negotiate favorable wages and benefits for their members.
 Prevalence of part-time and casual work: Many service sector jobs are
part-time or casual, which can make it difficult for trade unions to organize
and represent these workers.
 Political and legal challenges: In some countries, trade unions face
political and legal challenges, such as restrictions on the right to strike or
limitations on the activities of trade unions.
 Despite these challenges, trade unions in the service sector continue to play
an important role in advocating for the rights and interests of workers. By
building strong relationships with workers, employers, and the wider
community, trade unions can continue to be effective and relevant in the
 History of Trade union in Nepal
 The beginning of the Nepali trade union movement goes back slightly
before 1951.
 While the historic workers' movement started on 4 March 1947 in
Biratnagar, the workers themselves did not know what a trade union was
and what it would contribute to.
 The main concern of the workers then was to attract more and more
workers to the political movement. The then leaders – Girija Prasad
Koirala, Manamohan Adhikari and Tarani Prasad Koirala – entered the area
of Biratnagar Jute Mills with this purpose in mind – to mobilize the workers
in the political movement to follow.
 On 4 March 1947 a labor movement took place demanding for the
increment of wages.
 On the 23rd day of the movement, the labour wage was increased by 15
percent as per 'the directives of the Shree tin maharaja (Rana prime
minister)’. The regime also announced to give the full wage of the workers
for the strike period.
 History of Trade union in Nepal
 The moment were similar to the Indian trade union movement,
which had a strong influence on the participants of the movement.
The duration from 1951 to 1959 was one of expansion period of the
Nepali trade union movement..
In 1951 ANTUC and BWU became united and formed the first
trade union federation in Nepal.
The World Federation of Trade Unions (WFTU) in 1953
granted membership to ANTUC.
The General Federation of Nepalese Trade Unions (GEFONT) has
formally been registered as the first national trade union
confederation in the country after the enactment of the Trade Union
Act, which was established in 1989 as a follower of ANTUC.
The trade union movement of modern lines came to be organized
only after the enactment of Trade Union Act 1992 while ban on
trade union was lifted and they were recognized legally
 History of Trade union in Nepal
Since the end of the 1997 the total number of registered trade
union on federations reached three with the registration of
Democratic Confederation of Nepalese Trade Unions (DECONT)
separated from NTUC.
With the second viii amendment of the Trade Union Act in 1999
it has become possible to unionize the informal sector workers
too including agricultural workers and even self-employed.
The Trade Union Act 1992 clearly explained distinct three-tire
system of trade unions in Nepal. They are: Enterprise Level Trade
Union, Trade Union Federation and Confederations
During the short period of time Nepalese trade unions have been
acquired a lot of improvements in various issues. Among them
increase in membership, militancy, collective bargaining capacity
and the changing attitude of the society towards trade union is
considered as remarkable strengths. 
Trade unions related issues in Nepalese
organization
Mutual Hostility and suspicion : The psychological
distance and barrier are pretty high between management,
employee and the government.
The government at present is literally squeezed between the
employers and employees.
Government cannot find out its role between facilitator,
regulator, promoter, arbitrator or that of controller.
Strikes and lockouts as ultimate resolution of dispute;
Strikes and lockouts are thought to be one and the ultimate
weapons in the hands of trade unions and management
respectively.
The rights, interests and obligations of the employees are to
be determined by the management.
Trade unions related issues in Nepalese
organization
Politicization of labor issues and multiplicity of
unions : The trade unions are used as vote banks because of
politicization of labor.
Both government and management have used divide and
rule policy thereby weakening the position of labor union.
On the other hand the powerful unions have gone beyond
their jurisdiction to dictate the management on personnel
issues like recruitment, promotion, transfer and
departmental action.
Trade union act allows the provision for more than one union
in the industrial unit, has also helped to divide laborers.
Collective security rather than furthering the class interests
has been the major underlining theme of trade union
activities.
Trade unions related issues in Nepalese organization
Legalistic orientation of IR : The IR is too much
preoccupied with legalistic orientation.
There is ambiguity in the Labor Act 1992 and Trade
Union Act 1992.
The labor legislations are at early stage of
development in the country.
The management charges that labor legislation has
been drawn singularly with the interest of labor in
mind while trade unions accuse the law to be lack of
practice.
The process of learning by doing is the popular mode
of IR management.
 Labor Trade unions related issues in Nepalese
organization
Labor Disputes : As per ILO three distinct features of labor
dispute demand special treatment for its solution.
First; In labor disputes, the parties to the disputes have to stay
together. The disputes have a long term social consequences they
involved not just the workers and management but also the
workers’ family, children and society at large.
The problem has a humane side, thus the solution must be
humane.
Second : The parties trying to solve the dispute must have the
consent of the parties to the dispute.
Finally , the speed by which the problem is solved is as much
important as the outcome of the solution. Labor disputes
needlessly prolonged may bring totally unexpected consequences
Simply having labor law may be a necessary but not a sufficient
condition for the practice of good industrial relations.
Labor Trade unions related issues in
Nepalese organization
Unacceptable labor practices; There is still
unacceptable labor practices such as bonded labor, child
labor and labor discrimination in terms of caste, creed,
gender and nationality.
There are still no. of workers that work in unorganized
and informal sectors like agriculture workers and self
employed workers are yet to be covered by labor
legislation.
Therefore unionization is still low in the economy. Even
within the organized sector only 36% of the work force is
uinonized.
Trade Union Act 2049 (1992).
"Trade Union" means the Enterprise level Trade Union
registered under this Act for the protection and promotion of
the occupational rights of the workers and this expression
shall also includes Trade Union Association and Trade Union
Federation.
Registration of Trade Union
Registered of Enterprise Level Trade Union:
In order to register an Enterprise Level Trade Union
constituted pursuant to Sub-section (1), an application in the
prescribed form signed by at least ten members of the Trade
Union as designated by the working committee along with
the Constitution of the Trade Union, prescribed fee and
other prescribed particulars shall submit to the Registrar.
Trade Union Act 2049 (1992).
Registration of Trade Union Association:
At least fifty enterprise Level's Trade Union or five
thousand Agriculture Labourers of at least twenty
districts comprising one hundred persons from each
district or Five thousand workers of similar nature
Enterprise, may constitute a Trade Union Association by
mutual agreement.
Registration of the Trade Union Federation: In order
to registrar a Trade Union Federation pursuant to
Subsection (1) an application in the prescribed form by
the official as designated by the working committee
along with a copy of mutual agreement, statute of the
Trade Union Federation, prescribed fee and other