mTrade unions have become an integral and powerful

factor in the contemporary system of production and

distribution of goods and services.

mModern industrialization has paved the way for trade

unions.

mThey are now exercising a strong influence

Origin(Background)
Ô Though attempts have been made to trace the ancestry
of trade unions to the medieval period and even
earlier.

Ô Institutions grow to meet the needs of a particular

time and place.

Ô Trade unions have grown in response to the peculiar

needs and problems which the wage earners have had
to face in the course of industrialisation under the
capitalist economic system.
Origin(Background)
Ô Trade unionism grew as one of the most powerful
socio-economic political institutions of our time
-to fill in vacuum created by industrial revolution in
industrial society.

-It came as a countervailing force to reconcile social and

economic aberrations created by Industrial
Revolution.
Origin(Background)
Ô Individual dispensability and collective
indispensability was the basic principle for its
formation.

Ô United we stand and divided we fall is the philosophy

Ô The government policy of Laissez Ȃfaire(a doctrine

opposing govt interference in economic affairs/to let
people do as they choose) left the working class at the
mercy of mighty employers
Origin(Background)
Ô The worker lacked bargaining power as seller of most
perishable commodity (labour)He was no match for
the mighty employer.

Ô The supply of labour was more and demand was less.

Employers employed them on their terms, which were
exploitative.
Ô Combination of workers was considered as criminal
conspiracy /the terms of contract was regulated by
workmen Breach of contract Act,1860 and general law
of the land.
Origin(Background)
Ô ½iscontent was brewing.

Ô Liberal ½emocratic and revolutionary ideas(set in

motion by the American war of Independence,French
Revolution,Russian-Revolution /thinkers like
Rousseau and Marx etc)

Ô The discontent also gave birth to an institution known

as Dztrade uniondz.
ÔORMATIVE STAGES
Ô Trade Union had to pass through a very difficult and
hostile period in the initial years.
-The employers wanted to crush them with iron hands.

Ô Then came the period of agitation and occasional

acceptance.

Ô When the union gained strength they started

confronting the employer. This is the period of
struggle which continued for long.
ÔORMATIVE STAGES
Ô Employers were forced to accommodate, tolerate and
hesitatingly accept them.

Ô Then came the period of understanding in the

industry in collective bargaining.

Ô This was followed by a fraternal stage where union

became matured and employers started consulting
them.
ÔORMATIVE STAGES
Ô The desired state is the DzFusion Stagedzin which joint
efforts were required to be made for union-
management cooperation and patnership.
½EÔINITION
Ô According to Webb ,a trade union is a continuous
associatiob of wage Ȃearners for the purpose of
maintaining and improving the conditions of their working
lives.

Ô Under trade union Act of 1926 ,the term is defined as any

combination,whether temporary or permanent,formed
primarily for the purpose of regulating the relations
between workers and employers or for imposing restrictive
conditions on the condition of any trade or business and
includes any federation of two or more unions.
½EÔINITION
Ô A more recent and non-legislative definition of a union
is:

Ô DzAn organisation of workers acting collectively who

seek to protect and promote their mutual interests
through collective bargainingdz
-½e Cenzo & Robbins(1993)
Ôorms of trade unions
Ô There are three forms of trade unions:-

1.Classical-A trade unions main objective is to protect

the interest of its members.
-Trade Unions are the expressions of the needs
aspirations and wishes of the working class.

2. Neo Ȃclassical- It goes beyond classical objectives

and tries to improve other wider issues like tax Ȃ
reliefs, raising saving rates etc
Ôorms of trade unions
3. Revolutionary change in the system-Establishing the
rule of working class even through violence, use of
force, etc
Ôunctions of Trade Unions
(a) militant or protective or intra-mutual functions:
-These functions include protecting the workers interests,i,e
hike in wages,providing more benefits,job security etc
-this is achieved through collective bargaining and direct
actions such as strikes, gheraos etc

(b)Fraternal or extramural functions:

-This function includes providing financial/non financial
assistance during strikes/lockouts/medical
facilities/provision of education/recreation/housing
facilities/social and religious benefits.
Ôunctions of Trade Unions
(c)Political functions:These functions include
affiliating the union to a political party
-helping the political party in enrolling
members,collective donations,
-seeking the help of political parties during the periods
of strikes and lockouts.

(d)Social functions: carrying out social service

activities/discharging social responsibilities
Objectives of Trade union
(a) Wages and salaries

(b) Working conditions

( c) ½iscipline

(d)Personal policies

(e) Welfare
Objectives of Trade union
(f) Employee-employer relations

(g)Negotiating machinery.

(h)Safeguarding organisational health and interest of

the industry
Role of Trade Unions
Ô Adopting the model of Prof Clark kerr, unions assume
the following role:

Ô (a) Sectional Bargainer-interests of the workers at

plant ,industry, national level- multiplicity of
unions,crafts unions,white collar unions,etc

Ô (b)class Bargainer-Unions representing the interest of

the class as a whole-In France Agricultural
unions,Federations of unions, Civil servants
unions,etc
Role of Trade Unions
(c)Agents of State:-As in U.S.S.R, ensuring targets of
production at fixed price. In the 1974 Railway strike
INTUC stood behind Govt,and its agents

(d)Partners in Social Control: -Co-determinator in

Germany.Also some examples are found in
holland,France,Italy and Sweden-Some half hearted
attempts are being made in India also.
Role of Trade unions
Ô (e) Unions role which can be termed as enemies of
economic systems
-they are driven by political ideologies than by business
compulsions.
-Leftist unions want to change the fundamental
structure of economy and want to have control over it.
-They therefore encourage high wages,high
bonus,etc,without consideration for health of the
economy .
Role of Trade unions
Ô (f) Business Oriented Role,where unions consider the
interests of the organisation along with workers.
Ô -The unions think that their members fate is linked
with that of organisation and they swim and sink
together.

Ô (g)Unions as a change-Agent Ȃlead the changes rather

than be led by them, thus performing the pioneering
role.
3lassification of trade unions
Ô Classification based on ideology-

Ô Revolutionary unions-Believe in destruction of existing

social/economic order and creation of a new one.
-they want shift in power and authority and use of force-left
unions.

Ô Reformist or welfare unions- work for changes and reforms

within existing socio-political framework of society-
European model.
3lassification of trade unions
Ô Uplift Unions-They advocate extensive reforms well
beyond the area of working condition,i.e, change in
taxation system, elimination of poverty,etc
3lassification based on Trade
Ô Many unions have representation and jurisdiction
based on the trades they present.
-the most narrow in membership is the craft union
-such as carpentry/pipe fitting /clerical work.
-not common in India and Sri Lanka.

m In India and Sri Lanka the range of workers

represented in the general union has members drawn
from all trades.
3lassification based on Trade
Ô Unions representing workers employed on the
production floor or outdoor trades such as in
construction work, are called blue collar unions.
-Those employees in shops and offices and who are not
in management grades and perform clerical and allied
functions are called white collar workers.

Ô Trade unions may be categorised on the basis of the

industries in which they are employed.
-examples of workers engaged in agriculture/forestry
(agriculture labour unions/forest workers unions)
3lassification based on agreement
Ô Closed Shop:Where management and union agree that
the union has the sole responsibility and authority for
recruitment of workers.
-The Taft Hartley Act of 1947 bans closed Shop
agreement in USA.
-still exists in painting and construction trades/also
called Hiring Hall.

Ô Union Shop: All new recruits have to join within a

fixed period./USA some states declared to having right
to work.
3lassification based on agreement
Ô Preferential shop: When union member is given
preference in filling a vacancy

Ô Maintenance Shop: There is no compulsory

membership in the union before or after recruitment.
-If he chooses to become member after recruitment
his membership remains compulsory through out his
tenure of employment.
3lassification based on agreement
Ô Agency Shop: In terms of the agreement between
management and union
Ô -a non union member has to pay the union a sum
equivalent to a members subscription to continue in
employment.

Ô Open Shop: Membership in a union is in no way

compulsory/obligatory
-In such organisation there is no union.Least desirable
form for unions.
Ô More usual in west than on the Indian subcontinent.
Theoretical Perspective
Ô TRA½E UNIONS - THEORETICAL FOUN½ATIONS AN½
LEGAL FRAMEWORK

Ô We have by now understood that trade unions are

voluntary organisations of workers formed to promote
their interests though collective action.

Ô We will discuss Four theories propounded by

-Karl Marx,Sydney and Beatrice Webb,and Robert Hoxie
based on communist ,socialist,and capitalist perspective.
-Concept of trusteeship advocated by Mahatma Gandhi
Theoretical Perspective
Ô We will assess the significance and the relevance of
these theories on the phenomenal changes in the
world economy since late 1980ǯs
Theories of Trade Union
Ô What we call theories of trade union movement are in
fact some abstract principles or ideologies
Ô -These theories seek to explain the basic motivating
factors behind union organisation,Its goals and means
to accomplish them.

Ô We will discuss four broad conceptualizations

concerning trade union movement:
Ô (1) Karl Marx's notion of class conflict(2) Webbǯs
formulation which favoured the socialist pattern of
society(3) the American version of business unionism
(4) the Gandhian vision of trusteeship
Theories of Trade union Movement
Ô Karl Marx: Class Conflict and Communist
Manifesto/Political revolutionary theory of labour
movement.
Ô -The Theory is based on Adam Smithǯs theory of
labour value.
- its short Ȃrun purpose is to eliminate competition
among labour
-the ultimate purpose is to overthrow capitalist
businessman.
-Trade union is a pure and simple class struggle
Theories of Trade union Movement
Ô Karl Marx emphasized a role for intellectuals t o
inspire in workers political consciousness, outside the
economic struggle, and outside the sphere of relations
between workers and employees.

Ô In India the trade union leadership was largely from

the intellectuals and elite groups of socity associated
with freedom struggle.
Theories of Trade union Movement
Ô Sydney and Beatrice Webb ȂThe Socialist Pattern of
society.
-They saw a role for unions to usher in socialism
through political action.
-The Webbs too ,like Marx observed that market
pressures drove workers to organize into unions to
protect their economic interests.
-The webbs too were opposed to the capitalist system.
-They advocated different paths to bring its downfall.
-Marx along with Engels played a key role in drafting the
Communist Manifesto in Germany
Theories of Trade union Movement
Ô The Webbs played an instrumental role as intellectual
leaders of he Labour Part in Britain,
Ô -drafting the Socialist Manifesto for converting
capitalist Britain into a mixed economy
Ô -thus laying he foundation of the nationalisation of
major industries.
Ô Marx and his followers prescribed a rapid
revolutionary and radical ,even violent ,change to a
new order
Ô The Webbs advocated a non violent ,gradual evolution
to a socialist form of govt.
Theories of Trade union Movement
Ô Robert Hoxie- Unions under the American Capitalist
System

Ô He argued hat unions evolve differently across socio

psychological environmental contexts.
Ô -he considered American Unions less dogmatic and
more pragmatic and opportunistic.

Ô He identified five functional types of unionism:

Ô (1) Business unionism: They are trade conscious rather
than class conscious.
Theories of Trade union Movement
Ô Such unions ask for more and more.
-Focusing on improvement in Wage ,working hours,
working conditions
-pay little attention to political and social action.
-they seek o achieve their goals primarily through
collective bargaining and industrial action(strikes)

Ô Hoxie distinguishes business unionism and company

unionism.
-the latter is excessively dependent on the company for
its (the unions )survival
Theories of Trade union Movement
Ô Friendly or uplift unionism: The goal of such unions is
o elevate the moral ,intellectual, and social life of the
worker.
Ô -their means of action include collective bargaining
and political action.

Ô Revolutionary unionism: These are class conscious

rather than trade conscious
Ô -they follow Marx dictums and reject private
ownership of productive resources and condemn wage
system.
Theories of Trade union Movement
Ô Industrial and political action combined with violence
are the dominant means whereby such unions achieve
their objectives.

Ô Hoxie divides revolutionary unions into two subtypes

1.Focusing on socialist (unionism) ideals
2.Quasi anarchy 9unionism through strikes,sabotage
and violence.
Ô Predatory unionism : such unions are leadership
based.
Theories of Trade union Movement
Ô Mahatma Gandhi ȂThe concept of trusteeship.
Ô -it was not based on class conflict or on the ideology
that nationalisation of resources promotes/provide
equity.
Ô - emphasized voluntarism.
Ô -understood the limitations of capitalism and
socialism and tried to synthesize their virtues in the
concept of trusteeship.