TRADE

UNION
“The trade union movement represents the
organized economic power of the workers.”
 TABLE OF CONTENTS
1 2 3
INTRODUCTION IMPORTANCE FUNCTIONS
Definition of Trade Union, its Historical evolution and Understand legal framework
objectives and their types Structures of Trade Unions and collective bargaining

4 5 6
THEORIES CASE STUDIES CONCLUSION
Theories and future trends Case Studies of some well known Importance of effective
Trade Unions communication and good behaviour
What is a
Trade
Union?
DEFINITION
Trade unions are organizations formed by workers from related fields that work for the
common interest of its members.
They represent a cluster of workers and provide a link between the management and
workers.

DESCRIPTION
The purpose of these unions is to look into the grievances of wagers and present a collective
voice in front of the management.
Hence, it acts as the medium of communication between the workers and management.
OBJECTIVES

COLLECTIVE BARGANING
Negotiate with employers on behalf of their members to
secure better wages, working hours, benefits, and working
conditions. This process is known as collective bargaining.

PROTECTION OF WORKERS' RIGHTS

Protect the rights of workers, including the right to fair
treatment, safe working conditions, and protection against
discrimination and unfair dismissal
 OBJECTIVES

JOB SECURITY
Job security for their members by advocating for policies that
protect workers from layoffs, outsourcing, and other forms of
job insecurity

EDUCATION AND TRAINING

Provide educational and training opportunities for their
members to enhance their skills and improve their
employability
OBJECTIVES

SOCIAL AND ECONOMIC JUSTICE

Advocate for social and economic justice by supporting
policies that promote fair wages, income equality, and social
welfare programs.

POLITICAL ADVOCACY
Engage in political advocacy to promote policies that benefit
workers, such as minimum wage laws, workplace safety
regulations, and protections for collective bargaining rights.
Types of
TRADE
UNIONS
 TYPES
- On the basis of Membership Structure -

CRAFT / SKILL UNION

These unions represent workers with specific skills or trades,
such as carpenters, electricians, or plumbers. They focus on
protecting and advancing the interests of workers in a
particular craft or trade.

INDUSTRIAL UNION
These unions represent workers across an industry regardless
of their specific skills. Industrial unions aim to organize
workers across an entire industry or sector to negotiate
collective bargaining agreements and address industry-wide
issues.
Eg: Textile industry Union, Steel industry Union
 TYPES
- On the basis of Membership Structure -

GENERAL UNION
These unions represent workers across multiple industries and
sectors. They may include workers from different trades,
professions, or skill levels.
Eg: Labour Union

STAFF UNION
These unions are a combination of Crafts and Industrial union.
They may include workers from different trades, professions,
or skill levels.
-Normally in Tertiary sector.
 TYPES
- On the basis of Level and Status -

BLUE-COLLAR UNION WHITE-COLLAR UNIONS

These unions represent workers in manual These unions represent workers in
or industrial occupations, such as professional, managerial, administrative,
manufacturing, construction, or or technical positions. They focus on
transportation. They focus on issues such issues such as job security, fair treatment,
as workplace safety, wages, and benefits and professional development.

Eg. The All India Central Council of Eg. The Bank Employees Federation of
Trade Unions (AICCTU) India (BEFI)
 IMPORTANCE OF TRADE UNION

• Representation of Workers' Interests

• Protection of Labor Rights:
• Collective Bargaining Power
• Promotion of Social Justice:
• Political Influence
• Skill Development and Training
• Social Security and Welfare Programs:
• Counterbalancing Economic Power
• Unity and Solidarity
• Participation in Policy Formulation
 Collective Bargaining Power

Trade unions negotiate with employers on behalf

of workers to secure better wages, benefits, and
working conditions. Through collective
bargaining, unions strive to achieve a balance of
power between labor and management.
 Skill Development And Training

Some trade unions in India undertake

initiatives for skill development and training
of workers, helping them enhance their
employability and adapt to changing industry
needs
 Social Security And Welfare Programs

Trade unions often play a role in advocating for

social security measures, including health
insurance, pension schemes, and other welfare
programs, to provide a safety net for workers and
their families.
 Participation In Policy Formation

Trade unions actively engage in the formulation

and implementation of labor policies, providing
valuable insights and feedback to government
bodies and contributing to the development of
laws and regulations affecting the workforce

Early Beginnings
(Late 19th Century)
Trade unionism in India originated in
the late 19th century under British
colonial rule with the rise of workers'
associations and unions due to
industrial growth. The Bombay Mill
Hands Association, established in 1890
by Narayan Meghaji Lokhande, was
among the earliest trade unions,
focusing on improving conditions in
textile mills.
HISTORY OF TRADE UNION
Formation of National
Organizations
(Early 20th Century)
The All India Trade Union Congress
(AITUC) was founded in 1920 in
Bombay to champion workers' rights in
India, while other organizations like the
Hind Mazdoor Sabha (HMS) and the
Indian National Trade Union Congress
(INTUC) emerged later with varying
ideologies.
Role in the Independence Movement
(1920s-1947)
Trade unions were instrumental in
India's independence movement,
mobilizing workers against colonial
exploitation and supporting nationalist
causes. The AITUC, closely linked to
the Indian National Congress, actively
participated in civil disobedience
campaigns, non-cooperation
movements, and labor strikes.
Post-Independence Era
(1947 Onward)
Trade unions in post-independence
India expanded across sectors like
manufacturing, agriculture, transport,
and services. Legal acts like the
Industrial Disputes Act and Trade
Unions Act supported their activities,
allowing them to influence labor
policies, advocate for workers' rights,
and negotiate with employers.
 Political Affiliations and Fragmentation:

Trade unions in India are often affiliated with

political parties or ideological movements, reflecting
the diverse political landscape of the country.
Various trade union federations, representing
different political ideologies and interests, coexist in
India. These include the AITUC (associated with the
Communist Party of India), the INTUC (affiliated
with the Indian National Congress), the Bharatiya
Mazdoor Sangh (aligned with the Rashtriya
Swayamsevak Sangh), and others.
LEGAL FRAMEWORK
 HISTORY
Trade unions started emerging in India during the late 19th
century with organizations like the Bombay Mill Hands
Association and the Amalgamated Society of Railway
Servants of India and Burma.

In 1920, the All India Trade Union Congress was

established to enhance cooperation among individual
unions, and significant federations like the Central Labour
Board and the Bengal Trades Union Federation followed in
1922.
HISTORY

The need for legal protections became apparent after the

Buckingham Mill case in 1940, leading to the passing of
the Indian Trade Unions Act in 1926.

Shri N. M. Joshi proposed a resolution supporting the

registration and protection of trade unions, setting the
groundwork for the formal recognition of labor rights in
India.
 STATEMENT OF OBJECTS

The general scheme of the Bill is that a Trade Union making the necessary application will, on
compliance with certain stated conditions designed to ensure that the Union is a bonafide Trade Union,
and that adequate safeguards are provided for the rights of its members, be entitled to registration.

The Union and its members will there upon receive protection in certain cases in respect of both civil
and criminal liability. No restriction is placed upon the objects which a registered Trade Union may
pursue, but the expenditure of its funds must be limited to specified Trade Union purposes. The legal
position of Trade Unions which do not register will be unaffected by the Bill.
 IMPORTANCE OF THE ACT

The Trade Union Act of 1926 is welfare legislation that has been enacted to protect workers
in the organised and unorganised sectors from inhuman treatment and provide protection of
their human rights. As such, the legislation contains provisions for registration, regulation,
benefits, and protection for trade unions.

Therefore, the workers benefit.

Trade unions are important organs for the democratic development of any country as they
represent the needs and demands of the workers through collective bargaining.
Collective
Barganing
 What’s Collective Bargaining !!
Collective bargaining is the process of negotiating the employment terms between an employer and a
group of workers.

The process takes place between company management and a labor union.
Concerns and issues that may come up during collective bargaining include working conditions,
salaries and compensation, working hours, and benefits.

The goal of collective bargaining is to come up with a collective bargaining agreement or contract.

There are several types of collective bargaining, including composite concessionary, distributive,
integrative, and productivity bargaining.
 Collective Bargaining Steps

1 3 5
2 4

Identifying the Negotiating Coming to a Accepting and Administering the

issues and tentative agreement ratifying the agreement
preparing the agreement
demands
 Types of Collective Bargaining

Conjunctive bargaining Co-operative bargaining

This type of bargaining happens when both the
employer and the union want to gain from the
other party's loss. It usually refers to negotiating
salaries and other employee benefits.
In this type of bargaining, both parties want to
reach a solution that can benefit both parties
simultaneously. Co-operative bargaining is
common in disputes over technology, equipment
or work terms.
 Types of Collective Bargaining

Productivity bargaining Composite bargaining

Productivity bargaining is when an employer Composite bargaining refers to a situation in

agrees to offer employees additional bonuses or
improve their work conditions in hopes that this
can increase employee productivity. Essentially,
the employer's main concern is the
organisation's success.
which employees decide to bargain because
they're concerned about their working conditions
or policies. Their main goal is to create a safer and
healthier workplace for themselves and others.
 Pros & Cons of Collective Bargaining

Pros Cons

• Employees has larger voice. • Lengthy process

• Improves workplace conditions and protect • Comes at nery high cost
employees. • Employees may be forced to negotiate and
• Establishes Rights and responsibilities accept unfavourable coditions
 PROBLEMS FACED BY TRADE UNION

SMALL SIZE POOR FINANCE POLITICISATION

MULTIPLICITY LAKE OF ENLIGHTENED APATHY OF WORKERS AND

OF UNIONS LABOUR FORCE ROLE OF MANAGEMENT
 SMALL SIZE

According to the veteran trade union leader V.V. Giri,

“the trade union movement in India is plagued by the
predominance of small sized unions”. To quote there
were 9,023 trade unions submitting returns during the
year 1992. The total membership of these unions was
57.4lakhs, with an average membership of 632 per
union. Nearly three-fourths of the unions have a
membership of less than 500. Smallness in size of the
union implies, among other things ,weakness in
bargaining power.
 POOR FINANCE

Small size of unions has its direct bearing on its

financial health. Total income and total expenditure
of 9,073 trade unions with a membership of 57.4
lakhs were Rs. 3,238 lakhs and Rs. 2,532 lakhs
respectively in 1992. The per member income and
expenditure, thus, come to Rs. 56.4 and Rs. 44.1
respectively”. These are, by all means, very low. It is
the small size of trade unions accompanied by small
subscriptions; the trade unions cannot undertake
welfare activities.
 POLITICISATION

A serious defect of the trade union movement in

India is that the leadership has been provided by
outsiders’ especially professional politicians.
Leaders being affiliated to one or the other party, the
unions were more engrossed in toeing the lines of
their political leaders than protecting workers’
interests.

Ironically, in many cases, the political leaders

possess little knowledge of the background of labour
problems, fundamentals of trade unionism, the
techniques of industry, and even little general
education. Naturally, unions cannot be expected to
function efficiently and on a sound basis under the
guidance of such leaders.
 MULTIPLICITY OF UNIONS

Trade unionism in India is also characterised by

multiplicity of unions based on craft, creed and
religion. This is well indicated by the socio-political
realities. The trade union is that it leads to union’s
rivalry in the organization. Obviously multiplicity of
unions contribute to fragmentation to workers
leading to small sized unions.
LAKE OF ENLIGHTENED LABOUR FORCE

●Lack of education, division by race religion,

language and caste ,migratory nature, lack of self
consciousness, and non-permanent class of workers
have been at tributed as the causes for the lack of
enlightened labour force in India. This has been a
major problem in the development of trade unions
in India.
 APATHY OF WORKERS AND ROLE OF
MANAGEMENT
Apathy is defined as behaviour that shows no interest
or energy and shows that someone is unwilling to
take action, especially over something important.
The workers often juggle between their jobs and
working effectively for the trade union. This is due to
the fact that the employment earns them a living
while the trade union is an opportunity for them to
voice their problems. Due to this, the workers lack
showing interest in the union work unless the matter
is of grave importance.
Organizers of Trade Union

• A union organizer is a specific type of trade union member

(often elected) or an appointed union official.
• In some unions, the organizer's role is to recruit groups of
workers under the organizing model. In other unions, the
organizer's role is largely that of servicing members and
enforcing work rules.
 Ways of Forming a union

TOP-DOWN ORGANIZING
• Top-Down organizing focuses on persuading management through salesmanship or
pressure tactics.
• The salesmanship may include offering access to resources such as to a well-trained and
skilled supply of labor or access to union cartels.
• Pressure tactics may include picketing with the intention of embarrassing management or
disrupting business, as well as assisting the government in investigating employment law
and labor law violations.
• A strict enforcement of these laws might result in fines and might serve to hurt the
violator's chances in a competitive bidding process.
Ways of Forming a union

BOTTOM-UP ORGANIZING
• Bottom-up organizing focuses on workers and involves a
certification process overseen by labor relations boards like the
NLRB.
• If a majority agrees to union representation, the company must
recognize and negotiate with the union.
• Both sides campaign for or against unionization, with management
having advantages in access and control over employees.
• Organizers arrange meetings, develop strategy, and establish an
organizing committee during the election process.
Challenges of Unionizing
• Management has a decided advantage due to their greater access
to the employees, as well as management's inherent ability to
discipline or terminate employees.
• During organizing, management has greater means to reward or
punish workers, far overshadowing methods available to the
union.For this reason, in most countries guarantee the rights of
workers to seek union membership and forbid management's use
of undue influence such as bribes or threats.
• Such charges are hard to prove and the labor movement believes
the entire process to be slanted against them in enforcement and
interpretation of labor laws. Issues related to these are settled by
appeal to the Labour Board who serves, essentially, as a referee
during the process. Intrigue during heated campaigns is not
uncommon.
Counter Organizing

• In bottom-up organizing, management and labor are pitted against

each other and management often schedules retaliatory, aggressive
tactics in an effort to break the chapter, called "union-busting." The
intention of such union-busting may be to "nip it in the bud" before
getting locked into a costly collective bargaining agreement.
• Management may feel that the organizing campaign encourages and
capitalizes upon worker disobedience and perceived disloyalty.[13]
For this reason, management may hire anti-union consultants or
lawyers known as "union-busters" or "union avoidance
consultants."
• With the goal of thwarting organizing, union-busters typically have
a two-pronged approach: firstly, management will cut deals with
individual workers to betray the union and secondly, to exploit
loopholes in labor law in an effort to derail or sandbag the election
process.
 Theories of Trade Union

Marxian Theory Pluralist Theory Human Capital Efficiency Wage Insider-Outsider Social Movement
Theory Theory Theory Theory
THEORIES OF TRADE UNION

MARXIAN THEORY
• Developed by Karl Marx, this theory views trade unions
as a response to the inherent conflicts between labor and
capital in a capitalist system. Marx argued that trade
unions emerge as a means for workers to organize
collectively and advance their interests in the face of
exploitation by employers. According to this theory, trade
unions play a role in the class struggle, aiming to improve
the conditions of workers and eventually bring about a
more equitable society.
THEORIES OF TRADE UNION

PLURALIST THEORY
• The pluralist theory sees trade unions as one of many
competing interest groups in society. It emphasizes the
role of trade unions in balancing power dynamics between
employers, workers, and the state. According to this
theory, trade unions represent the collective voice of
workers and engage in collective bargaining to negotiate
with employers. Pluralists believe that trade unions
contribute to stability and harmony in industrial relations
by providing a channel for workers’ participation and
resolving conflicts.
THEORIES OF TRADE UNION

HUMAN CAPITAL THEORY

The human capital theory posits that trade unions can enhance
the skills, productivity, and earning potential of workers.
According to this theory, trade unions invest in the training
and development of their members, leading to higher
productivity and wages. Unions may also help in reducing
information asymmetry between workers and employers,
enabling workers to negotiate better employment conditions
and career opportunities.
THEORIES OF TRADE UNION

COMPONENTS OF HUMAN CAPITAL

The human capital theory posits that by emphasizing
education and training, workers can become more productive
and efficient. As a result, components such as education are
part of human capital theory. Effective communication skills.
Management of people. Training at work. The ability to solve
problems. Personal health and well-being
THEORIES OF TRADE UNION

EFFICIENCY WAGE THEORY

1. In labor economics, efficiency wages are a level of wages
paid to workers above the minimum wage to retain a skilled
and efficient workforce. Efficiency wage theory posits that an
employer must pay its workers high enough so that workers
are incentivized to be productive and that highly skilled
workers do not quit. Efficiency wages may also be paid to
workers in industries that require a great deal of trust—such as
those working in precious metals, jewels, or finance—to help
ensure that they remain loyal. 2. Basically this theory aims to
ensure that all workers are paid minimum wage accordingly in
order to sustain their essential requirements of their life
THEORIES OF TRADE UNION

INSIDER-OUTSIDER THEORY
1.When insiders, e.g. key employees or executives who have
access to the strategic information about the company, use the
same for trading in the company's stocks or securities, it is
called insider trading and is highly discouraged by the
Securities and Exchange Board of India to promote fair
trading in the market for the benefit of the common investor.
2. Insider trading is an unfair practice, wherein the other stock
holders are at a great disadvantage due to lack of important
insider non public information. However, in certain cases if
the information has been made public, in a way that all
concerned investors have access to it, that will not be a case of
illegal insider trading
 THEORIES OF TRADE UNION

SOCIAL MOVEMENT THEORY

Social movement unionism (SMU) is a trend of theory and practice in contemporary trade unionism.
Strongly associated with the labor movements of developing countries, social movement unionism is distinct
from many other models of trade unionism because it concerns itself with more than organizing workers
around workplace issues, pay and terms and conditions. It engages in wider political struggles for human
rights, social justice and democracy. Social movement unionism grew out of political struggles in developing
countries and was theorized as a distinct industrial relations model in the late 1980s and early 1990s.

In this model, trade unions are not distinct from social movements and form part of a wider ecosystem of
political activism that includes faith groups, civic and residents' organizations and student groups. These are
usually organized into democratic umbrella organizations along popular front model.
 FUTURE IMPLICATIONS OF
TRADE UNION

1) Stopping unfair or underhand practices: Especially if the malpractice or Quixotism emanated from the
CEO or promoter, short of quitting, even independent directors or the CHRO were helpless to counter it. A
strong union had no such constraints.

2) Providing a sounding board: Experienced union leaders provided invaluable advice on the practicality and
efficacy of the policies the company was contemplating as also suggesting new ideas of their own
 FUTURE IMPLICATIONS OF
TRADE UNION
3)Two-way channels of communication: Messages conveyed through their own leaders had unequaled heft
for workers. Similarly, grassroot leaders could point out true pain points that surveys were unable to pinpoint
in a clamor-field of pinching shoes.

4)Taking up for the underdog: For the same reason that a defendant needs a lawyer, regardless of how
impartial a judge maybe, a worker in trouble was helped by a strong union, leaving HR to take a principled,
neutral stance.

5)Funneling diverse employee needs into coherent demands: Without a union, it would have been impossible
to sift through the huge volume and disparity of what people wanted and bring it to a manageable
convergence. More importantly, granting benefits that were not demanded by employees would have made
the entire process much costlier as well as irremediably patriarchal and, therefore, likely to backfire
ultimately
 CASE STUDIES

MARUTI NOKIA
SUZUKI SIEMENS
INDIA NETWORKS
LIMITED
MARUTI SUZUKI INDIA LIMITED
Maruti Suzuki India Limited (MSIL) has been established and
incorporated since 1983. MSIL is a subsidy of the Suzuki Motor
Corporation, Japan. Maruti Suzuki has been renowned for
producing the most fuel efficient, affordable and reliable cars
and therefore has been the leader of the Indian car market for
over the past two and halve decades. Manufacturing facilities
are located at two facilities Gurgaon and Manesar. Maruti
Suzuki's commitment to innovation and quality has propelled it
to the forefront of the automotive industry, earning numerous
accolades and awards for its groundbreaking designs and
technologies. With a wide range of models catering to diverse
consumer needs, Maruti Suzuki has continually set benchmarks
in terms of customer satisfaction and market dominance
 MARUTI SUZUKI INDIA LIMITED
BREIF HISTORY

• Maruti Suzuki operates manufacturing facilities in Gurgaon and Manesar, with the Manesar plant being India's
largest passenger car company, holding over 45% of the domestic car market.
• The Manesar plant was crucial to Maruti Suzuki's success, being the first company in India to mass-produce and
sell over a million cars annually, with over 50,000 cars exported each year.
• Maruti Suzuki's Manesar plant, India's largest passenger car company, faced a setback on July 18, 2012, due to
escalating industrial disputes.
• Aggressive actions by workers led to injuries and the tragic death of a human resource manager, causing
substantial financial losses for the company.
• Rooted in discontent over issues like low wages and incentive cuts, the strike highlighted underlying issues
within Maruti Suzuki.
• Management's attempts to support a single union and preparedness to expel workers exacerbated the situation.
• The strike, fueled by growing discontent, had significant implications for Maruti Suzuki's operations.
MARUTI SUZUKI MAJOR PLANTS IN INDIA

MANESAR PLANT GURUGRAM

PLANT
 MARUTI SUZUKI INDIA LIMITED
CAUSES
IMPACT ON ECONOMY
• Differences in salary pay
• Working Conditions • Large labor - unemployed
• Unions generally limit themselves to acting as a voice of • GDP affected
permanent employees. • Loss of country resources
• Demand for a new union • Disturbance - affecting the common man

IMPACT ON COMPANY PROBLEMS

• Operations stopped for a month • Lack of communication between HR people and labor
• Loss estimated to be over Rs. 1,500 crore • Lack of co-ordination between labor union and HR department
• Fear of insecurity to the employees and their families
• Problem of lack of labor resource
• Maruti changed it’s recruitment policy
• Goodwill was affected
MARUTI SUZUKI INDIA LIMITED

PROBLEMS FROM WORKERS POINT OF VIEW

• The school supervisor and technician Rajendra Kumar faced disciplinary
action despite promotions.
• Workers complained about food contamination by pests like cockroaches
and flies at the mountain campsite near the workstation.
• Workers suffered health issues due to the absence of sugar during breaks
and costly prescriptions from the company doctor.
• A new pay system penalized workers for absences, with fines increasing
based on the duration of absence.
• Workers were compelled to sign an undertaking form, restricting their
ability to raise objections against management.
• The implementation of a punch card entry system for tracking work hours
added pressure on workers, who were also forced to meet production
quotas.
• Management's actions fostered a sense of distrust and discontent among
workers, impacting morale and productivity negatively.
 MARUTI SUZUKI INDIA
LIMITED
WORKERS DEMAND

Worker’s Demand to establish an independent union Maruti

Suzuki Employees Union (MSEU) in the company.

Currently, the company has one recognized union - Maruti

Udyog Kamgar Union which is dominated by the workers at
the Gurgaon plant
MANAGEMENT VIEW OF PROBLEM
• Unhappy workers resort to creating deliberate defects in car quality to disrupt ongoing work at the plant.
• The aim is to trigger compulsory vehicle inspection, slowing down production and compromising customer interests.
• This action is seen as revenge for a previous strike and refusal to sign good conduct forms.
• Employees accused of sabotage are causing serious quality problems in the cars produced.
• Examples include improperly clamped wires leading to falls during production, cut wiring harnesses, and critical components not fitting
properly, posing serious customer implications and harm.
• The deliberate acts of sabotage, if undetected during quality checks, could lead to severe consequences for customers and damage the
company's reputation.
• The series of serious quality problems observed in the last three days indicates a systemic issue that needs urgent resolution.
• The company needs to implement stricter quality control measures and enhance employee supervision to prevent further incidents of
sabotage and maintain customer satisfaction.

ACTION TAKEN AGAINST EMPLOYEES

Following incidents of indiscipline, the company took strict measures, suspending 10 workers, dismissing five, and discontinuing the services of 620
vehicles suspected of instigating unrest. Additionally, another force was suspended for manhandling supervisors and compromising vehicle quality on
August 14. A police force of 500 was deployed to prevent violence, leading to the termination of 11 workers and suspension of 38 on August 29 and 31.
Responding to demands, the largest workers' union seeks a good conduct bond with authorities and media attention. The Maruti Suzuki Employees Union
advocates for withdrawing charges against terminated and suspended workers, currently staging a sit-in at factory gates to emphasize labor rights.
MARUTI SUZUKI INDIA
LIMITED
ESTABLISHMENT OF THE TRADE UNION
A trade union will be established under the primary condition that
its members are nominated with the consent of both workers and
management. If leadership fails to meet expectations, a contingency
plan focused on technology-oriented operations will be
implemented to streamline manpower demands. Additionally, strict
rules will ensure salary nondiscrimination, with a focus on
maintaining public perception and fostering mutual understanding
between all stakeholders.

EMPLOYEE RIGHTS IN MANESAR LABOUR

LAW
• Minimum time rate of wages
• Minimum piece rate
• Non-discrimination at the workplace
• Local leave without wages
• Working hours regulation
• Holidays entitlement
• Overtime regulations
MARUTI SUZUKI INDIA
LIMITED
LABOUR LAWS TWEAKED BY MARUTI
• Enforcement of the Labour Laws was not followed strictly.
• Differences in Salary Pay
• Working Conditions
• Lack of proper negotiations

NECESSARY CHANGES DONE AFTER THE

EVENT
• Hiring contract workers through company HR and not through a
contractor.
• Reopened the plant with 300 workers
• Fresh recruitment of permanent workers
• Terminate the services of 500 permanent workers (Involved in
Violence)
MARUTI SUZUKI INDIA LIMITED

TRADE UNION ADVOCACY AND MEDIATION

Trade unions play a significant role in achieving harmonious

relation between employees and management . They act as
representatives of workers, advocating for their rights, fair
treatment, and better working conditions. Trade unions facilitate
communication between workers and management, helping to
resolve conflicts, negotiate wages, benefits, and working
conditions. Additionally, they can provide valuable support and
guidance to workers, ensuring their concerns are addressed and
their voices are heard in the decision-making process. Hence, trade
unions can indeed play a crucial role in fostering a respectful,
flexible, and productive work environment.
 CASE STUDIES

MARUTI NOKIA
SUZUKI SIEMENS
INDIA NETWORKS
LIMITED
NOKIA SIEMENS NETWORKS

Nokia Siemens Networks, often abbreviated as NSN, was a

multinational telecommunications equipment company
headquartered in Espoo, Finland. Established in 2007 as a joint
venture between Nokia of Finland and Siemens of Germany, the
company aimed to provide a wide range of telecommunications
infrastructure, services, and solutions to operators worldwide. NSN
operated in various segments of the telecommunications industry,
including mobile broadband, core networks, fixed networks, IP and
optical networking, services, and more. Throughout its existence,
NSN was a key player in the telecommunications sector, competing
with other major players like Ericsson and Huawei. However, in
2013, Nokia acquired Siemens' stake in the joint venture, and the
company was rebranded as Nokia Solutions and Networks (NSN),
later simply known as Nokia Networks.
 NOKIA SIEMENS NETWORKS
BRIEF HISTORY
• In August 2009, the workers at Nokia went on a strike.
• According to the report , the strike started suddenly on 13th
August 2009, after announcement of the new pay proposal
with a salary hike of only Rs. 200 per month.
• The workers argued that this was equivalent to no hike in
salary despite repeated requests,
• The worker’s union had initially demanded a hike in
salary in 2008, which was not met.
• In 2009 , citing problems caused by the recession, demands
for wages hikes were aso denied. The workers went on a
strike.
• The strike effectively continued for only two days , but the
production of 300,000 handsets was affected.
NOKIA SIEMENS NETWORKS

NEGOTIATIONS
• Very quick response from the labour department pressurising
the workers to stop the strike and give time to settle the
dispute.
• On 14th August management agree to talk to the workers
regarding the demands and also offer the salary hike of Rs
1400 per month.
• Iit is also interesting to note that the Trade Union Bank of
ruling DMK party the labour progressive Federation lpf had
formed trade union in Nokia workers progressive Union
affiliated to LPF.
• Through those negotiations away pack was finally the
signed between the management and the lpf giving the
workers a salary hike of Rs 1500 per month
 NOKIA SIEMENS NETWORKS
AGAIN STRIKE IN 2010

The strike lasted for three days, culminating after the company
assured that the suspended workers would be reinstated. In July
2010, as the management deliberated over a long-term wage
agreement, workers opposed the proposed settlement and
demanded the reinstatement of suspended colleagues. Backed by
the Centre of Indian Trade Unions (CITU), employees launched
a strike on June 7, seeking union recognition and the
reinstatement of suspended workers. The CITU claimed
approximately 120 employees participated in the strike, while
the company asserted that only 60 were absent from work,
including 700 contracted workers.
NOKIA SIEMENS NETWORKS
ROLE OF TRADE UNIONS IN LABOR DISPUTE
RESOLUTION AT NOKIA SIEMENS
• Trade unions represented employees' interests and
concerns during negotiations with management.
• They advocated for the reinstatement of suspended
workers, ensuring fair treatment.
• Trade unions organized strikes to pressure the company
into addressing employees' grievances.
• With the support of trade unions, employees demanded
union recognition, enhancing their collective bargaining
power.
• Through their involvement, trade unions helped facilitate
communication between workers and management,
fostering resolution and assurance for employees.
Q1 ). How did the strike at Maruti Suzuki's Manesar plant impact
the economy?

a) Boosted GDP due to increased labor wages

b) Enhanced country resource utilization
c) Large-scale unemployment and negative GDP impact
d) Strengthened economic stability through increased car exports
Q1 ). How did the strike at Maruti Suzuki's Manesar plant impact the
economy?

a) Boosted GDP due to increased labor wages

b) Enhanced country resource utilization
c) Large-scale unemployment and negative GDP impact
d) Strengthened economic stability through increased car exports

Answer: c) Large-scale unemployment and negative GDP impact

Q2).What exacerbated the situation during the industrial dispute at
Maruti Suzuki's Manesar plant?

a) Company's compliance with labor demands

b) Intensification of communication between HR and labor
c) Management's support for multiple unions
d) Employee satisfaction with current policies
Q2).What exacerbated the situation during the industrial dispute at Maruti
Suzuki's Manesar plant?

a) Company's compliance with labor demands

b) Intensification of communication between HR and labor
c) Management's support for multiple unions
d) Employee satisfaction with current policies

Answer: c) Management's support for multiple unions

Q3). What was the ultimate aim of the Maruti Suzuki Employees Union
(MSEU) in its negotiations with the company?

a) To secure better severance packages for terminated workers

b) To gain media attention and public sympathy for their cause
c) To establish a monopoly over labor representation within the company
d) To ensure charges against terminated and suspended workers were
withdrawn
Q3). What was the ultimate aim of the Maruti Suzuki Employees Union
(MSEU) in its negotiations with the company?

a) To secure better severance packages for terminated workers

b) To gain media attention and public sympathy for their cause
c) To establish a monopoly over labor representation within the company
d) To ensure charges against terminated and suspended workers were
withdrawn
Answer: d) To ensure charges against terminated and suspended workers
were withdrawn
Q4). In what year was Nokia Siemens Networks (NSN) established as a
joint venture?
a) 2005
b) 2007
c) 2010
d) 2013
Q4). In what year was Nokia Siemens Networks (NSN) established as a
joint venture?
a) 2005
b) 2007
c) 2010
d) 2013

Answer: b) 2007
Q5). How long did the strike in August 2009 last, and how many
handsets were affected?
a) One day; 200,000 handsets
b) Two days; 300,000 handsets
c) Three days; 100,000 handsets
d) Four days; 400,000 handsets
Q5). How long did the strike in August 2009 last, and how many
handsets were affected?
a) One day; 200,000 handsets
b) Two days; 300,000 handsets
c) Three days; 100,000 handsets
d) Four days; 400,000 handsets

Answer: b) Two days; 300,000 handsets

Importance of effective
communication within
Trade Unions
What is effective communication ?
 MORSE CODE

- .-. .- -.. . ....... ..- -. .. --- -. .----. ... ....... -- .- .. -. ....... .- ..

-- ....... .. ... ....... - --- ....... .--. .-. --- - . -.-. - ....... .- -.
-.. ....... .- -.. ...- .- -. -.-. . ....... - .... . ....... .. -. - . .-. . ... - ...
....... --- ..-. ....... .. - ... ....... -- . -- -... . .-. ... ....... .. -. .......
- .... . ....... .-- --- .-. -.- .--. .-.. .- -.-. .
 MORSE CODE ACTUAL TEXT

- .-. .- -.. . ....... ..- -. .. --- -. .----. ... ....... -- .- .. -. ....... .- ..

-- ....... .. ... ....... - --- ....... .--. .-. --- - . -.-. - ....... .- -.
-.. ....... .- -.. ...- .- -. -.-. . ....... - .... . ....... .. -. - . .-. . ... - ...
Trade union's main aim is to
....... --- ..-. ....... .. - ... ....... -- . -- -... . .-. ... ....... .. -. ....... protect and advance the interests
- .... . ....... .-- --- .-. -.- .--. .-.. .- -.-. .
of its members in the workplace
 Effective Communication

Effective communication within trade unions

refers to the exchange of information, ideas,
and feedback in a manner that is clear, honest,
respectful, and timely. It involves both
conveying messages accurately and ensuring
that they are understood by all members
involved.
 Importance of Effective Communication within
Trade Unions

Building Trust and Unity

Clear and transparent communication

fosters trust among union members by
ensuring that everyone is informed
about the union's goals, strategies, and
actions. It creates a sense of unity and
collective purpose, which is essential
for the strength and solidarity of the
union.
 Importance of Effective Communication within
Trade Unions

Building Trust and Unity Enhancing Decision-Making

Clear and transparent communication When information is shared openly and

fosters trust among union members by
ensuring that everyone is informed
about the union's goals, strategies, and
actions. It creates a sense of unity and
collective purpose, which is essential
for the strength and solidarity of the
union.
transparently, union members can make
well-informed decisions that align with
the interests of the collective. This leads
to more effective strategies and
outcomes in negotiations and advocacy
efforts.
 Importance of Effective Communication within
Trade Unions

Building Trust and Unity Enhancing Decision-Making Preventing Misunderstandings

Clear and transparent communication
fosters trust among union members by
ensuring that everyone is informed
about the union's goals, strategies, and
actions. It creates a sense of unity and
collective purpose, which is essential
for the strength and solidarity of the
union.
When information is shared openly and
transparently, union members can make
well-informed decisions that align with
the interests of the collective. This leads
to more effective strategies and
outcomes in negotiations and advocacy
efforts.
Effective communication helps prevent
misunderstandings and conflicts within
the union. By ensuring that messages
are conveyed accurately and
comprehensively, members can avoid
unnecessary disputes and focus on
achieving common objectives.
 Examples of Effective Communication
Strategies

Regular Meetings
Holding regular meetings, whether at the
local or organizational level, provides
opportunities for members to discuss issues,
share updates, and collaborate on action
plans. These meetings can be conducted in
person or virtually, depending on the
preferences and needs of the members.
 Examples of Effective Communication
Strategies

Newsletters

Publishing newsletters or bulletins can help

disseminate important information, such as
updates on negotiations, legal
developments, upcoming events, and
member achievements. Newsletters can be
distributed electronically or in print,
reaching a wide audience of union
members.
 Examples of Effective Communication
Strategies

Digital Communication
Platforms
Utilizing digital communication platforms,
such as email listservs, social media groups,
and online forums, enables union members to
connect and communicate easily, regardless of
geographical location. These platforms
facilitate real-time discussions, information
sharing, and coordination of activities.
 Common Challenges to Effective Communication

Miscommunication: Misunderstandings can arise due to unclear

or ambiguous messages, language barriers, or differences in
communication styles among union members. Miscommunication
can lead to confusion, frustration, and conflict within the union.

Conflicts of Interest: Conflicts of interest may arise when

individual members prioritize personal agendas or interests over
the collective goals of the union. These conflicts can undermine
trust and cohesion within the union and impede effective
communication and decision-making.
 Strategies for Overcoming These Challenges

Clear Communication Protocols: Establishing clear

communication protocols and guidelines can help mitigate the risk
of miscommunication. This includes specifying channels for
communication, providing training on effective communication
techniques, and encouraging open dialogue among members.

Conflict Resolution Techniques: Implementing conflict resolution

techniques, such as mediation, negotiation, and consensus-
building, can help address conflicts of interest and interpersonal
disputes constructively. Training union members and leaders in
conflict resolution skills can empower them to resolve conflicts in
a fair and collaborative manner.
 Conclusion
• Trade unions are vital for advocating workers' rights and interests.
• They serve multiple functions, including collective bargaining and
welfare provision.
• Indian trade unions adapt to challenges and innovate to meet
members' needs.
• Effective communication is crucial for their success.
• Despite challenges, trade unions remain indispensable for social
progress.
• Upholding values of solidarity and social justice, they shape the
future of work.