TRADE UNION

• A continuous association of wage earners for the

purpose of maintaining or improving the conditions of
their working lives.
Section 2(h) of the Trade Unions Act, 1926 has defined a
trade union as
“Any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the
relations between workmen and employers, or between
workmen and workmen, or between employers and
employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any
federation of two or more trade unions.”
1. This definition talks about three relationships. They are
relationship between the:
Workmen and workmen
Workmen and employers
Employers and employers.
In other words, Trade union is an association either of employees
or employers or of independent workers.
2. It is a relatively permanent formation of workers. It is not a
temporary or casual combination of workers.
3. It is formed for securing certain economic (like better wages,
better working and living conditions), social (such as
educational, recreational, medical, respect for individual)
benefits to members. Collective strength offers a sort of
insurance cover to members to fight against irrational, arbitrary
and illegal actions of employers.
 De Cenzo and Robbins defined Trade Union as “an organization of
workers acting collectively who seek to protect and promote their mutual
interests through collective bargaining”
 To quote Sidney and Beatrice," A trade union, is a continuous
association of wage earners for the purpose of maintaining and improving
the conditions of their working lives.”
 Dale Yoder has defined trade union as a continuing long – term association
of employees formed and maintained for the specific purpose of advancing
and protecting the interests of members in their working relationships.
He quotes: “A trade union is a continuous association of workers which is
formed with the purpose of protecting the interests of workers.”
 According to Edwin Flippo “A labour union or trade union is an
organization of workers formed to promote, protect, and improve, through
collective action, the social, economic, and political interests of its
members”.
Features of trade unions
 It is an organization formed by employees or workers.

 It is formed on a continuous basis. It is a permanent body and not

a casual or temporary one.

 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.

 It includes federations of trade unions also.

 It achieves its objectives through collective action and group effort

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.
Unions also offer their members legal representation. Normally
this is to help people get financial compensation for work-
related injuries or to assist people who have to take their
employer to court
 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
METHODS USED BY TRADE UNIONS TO
ACHIEVE THEIR OBJECTIVES
Collective
bargaining
Legal enactments/
political actions
Strikes
Bandhs
Gheraos
Boycott
Lockout
Picketing
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.
Causes of Industrial Disputes
Factors that necessitated the
origin of trade unions
1. Separation between capital and labour
The capitalist mode of industrialization involved a
separation between the ownership of capital and labour, both
of which were necessary for the production of goods and
services.
Excessive hours of work, unsanitary working and living
conditions, overcrowding, employment of young children,
inflicting of corporal punishment for the maintenance of
industrial discipline, competitive debasement of wages and
unemployment were the main features of industrialization
under early capitalism.
2. Philosophy of Laissez-Faire: The dominant philosophy of
Laissez-faire and economic liberalism prevented the state from
coming to the rescue of the suffering mass of industrial
workers.
3. Lack of bargaining power on the part of workers
An individual workman, was a tool in the hands of the
employers. Being economically dependent on the employer, he
had neither the bargaining skill, nor the trade acumen to have
his demands met.
4. Individual dispensability but collective indispensability
The individual workman was dispensable to the employer but
workmen, collectively, were indispensable to him. This
realization of collective indispensability was a watershed in the
history of the working class. In it lay the roots of collective
bargaining which later resulted in trade unionism.
Objectives of Trade Unions
Trade unions are formed to protect and promote the interests of their members.
Their primary function is to protect the interests of workers against
discrimination and unfair labor practices. Trade unions are formed to achieve
the following objectives:

a) Wages and Salaries: The subject which drew the major attention of the trade
unions is wages and salaries. Of course, this item may be related to policy
matters. However, differences may arise in the process of their implementation.
In the case of unorganized sector the trade union plays a crucial role in
bargaining the pay scales.

b) Working Conditions: Trade unions with a view to safeguard the health of

workers demands the management to provide all the basic facilities such as,
lighting and ventilation, sanitation, rest rooms, safety equipment while
discharging hazardous duties, drinking, refreshment, minimum working hours,
leave and rest, holidays with pay, job satisfaction, social security benefits and
other welfare measures
Deery (1989) gave 4 goals of unions:
 Services to members eg. insurance, legal aid
Improved employment conditions
 Job security
Political objectives
Byrt (1985) identified 3 broad goals of unions:
Economic – higher wages by arbitration and collective
bargaining
Political – through ALP in Australia
Job control by
a) controlling access
b) controlling conduct of work
c) Discipline:
Trade unions not only conduct negotiations in respect of the
items with which their working conditions may be improved but
also protect the workers from the clutches of management
whenever workers become the victims of management’s
unilateral acts and disciplinary policies. This victimization may
take the form of penal transfers, suspensions, dismissals, etc.
Thus, the victimised worker may be protected by the trade
union.
d) Personnel Policies:
Trade unions may fight against improper implementation of
personnel policies in respect of recruitment, selection,
promotions, transfers, training, income security etc.
e) Welfare:
As stated earlier, trade unions are meant for the welfare of
workers. Trade union works as a guide, consulting authority and
cooperates in overcoming the personnel problems of workers
f) Employee-employer relation:
g) Negotiating machinery:
Trade union being a party for negotiations, protects the
interests of workers through collective bargaining and works as
the negotiating machinery.
h) Safeguarding organizational health and the interest of the
industry:
Trade unions help in reducing the rate of absenteeism, labour
turnover and developing systematic grievance settlement
procedures leading to harmonious industrial relations. Trade
unions can thus contribute to the improvements in level of
production and productivity, discipline and improve quality of
work life.
Objectives of Trade Union
 To improve the economic lot of
employees by securing for them better
wages.
 To secure better working conditions for
the workers.
 To secure bonus for the employees
from the profit of the concern,
 To resist schemes of the management
which reduce employment, e.g.,
rationalization and automation.
 To secure welfare of employees
through group schemes which give
benefit to every employee.
 To protect the interests of employees
by taking active participation in the
management.
 To secure social welfare of the
employees.
 To secure organizational stability,
growth, and leadership.
Functions of Trade Unions
Broadly speaking, trade unions perform two types of functions, viz.,
 Militant Functions. One set of activities performed by trade unions leads to the
betterment of the position of their members in relation to their employment. The
aim of such activities is to ensure adequate wages, secure better conditions of
work and employment, get better treatment from employers, etc. When the
unions fail to accomplish these aims by the method of collective bargaining and
negotiations, they adopt an approach and put up a fight with the management in
the form of so-slow, strike, boycott, gherao, etc. Hence, these functions of the
trade unions are known as militant or fighting functions.

 Fraternal Functions. Another set of activities performed by trade unions aims at

rendering help to its members in times of need, and improving their efficiency.
Trade unions try to foster a spirit of cooperation and promote friendly relations
and diffuse education and culture among their members. They also arrange for
legal assistance to its members, if necessary. Besides, these, they undertake many
welfare measures for their members, e.g., school for the education of children,
library, reading-rooms, in-door and out-door games, and other recreational
facilities. Some trade unions even undertake publication of some magazine or
journal. These activities, which may be called fraternal functions, depend on the
availability of funds, which the unions raise by subscription from members and
donations from outsiders, and also on their competent and enlightened
leadership.
 Functions of Trade Unions
Another broad classification of the functions of unions may be as follows

 Intra-mural activities. These consist of those functions of the unions

that lead to the betterment of employment conditions such as
ensuring adequate wages and salaries, etc. for which the methods
adopted may be collective bargaining, negotiations, strikes, etc.

 Extra-mural activities. These activities help the employees to

maintain and improve their efficiency or productivity, e.g.,
measures intended to foster a spirit of cooperation, promote friendly
relations, and diffuse education among members and various other types
of welfare measures.

 Political activities. Modern trade unions also take up political

activities to achieve their objectives. Such activities may be related to
the formation of a political party or those reflecting an attempt to seek
influence on public policy relating to matters connected with the
interests of working class.
Webbs’ Theory
Key proponent: Sydney and Beatrice Webb (1894)
Theory: (first history of unionism in UK)
Unions restrict access to trades and protect going wage rates
The reason unions form:
1) worker financial ‘insurance’ against hard times: accident
unemployment strikes etc.
2) collective bargaining with employers
3) political pressure group for better laws for working people
Unions justify behaviour as
1) protecting jobs rights like property rights
2) collective bargaining as part of competitive
capitalist system
3) political pressure on state for common good eg.
minimum wage
Webbs’ theory assumes trade unions are a legitimate
institution in a
developing liberal democracy, and is less relevant to
Asia
Marxist Theory of Class Conflict
Key proponent: Hyman (1975)
Theory: Based on theory of class conflict, inherent
conflict between labour and capital
Lenin believed true purpose of trade unions was to
raise political consciousness of workers leading to
revolutionary overthrow of capital system
Marxist analysis in decline since collapse of Soviet
system
Unions As Monopolistic
Organisations
Key proponent: Freeman and Medoff (1984)
Theory: Collective voice & Monopolistic Organisation
Unions are not simply ‘collective voice’ labour market
institutions – evident
in all bargaining and communication activities with
management
Unions behave as monopolistic organisations– evident
in controlling
wages, employee numbers, conditions and methods of
work
Perlman’s Theory
Key proponent: Perlman (1949)
Theory: ‘business unionism’ (from UK, German, Russian
and US unions )
Unions and collective bargaining essential parts of the
democratic society.
Business classes risk-takers. Manual workers security /
scarcity conscious.
 Role of unions was to establish job rights.
Unions accept legitimacy of capitalism, but wish to limit
its excesses.
 Intellectuals seek to influence unions to their vision of a
better society
Based on 4 countries studied, 3 factors controlled union
activity capitalism’s power to resist the demands of
organized labour extent of the influence of union
intellectuals maturity in the outlook of the trade
unions.
Problems: Perlman’s ‘business unionism’ does not
explain socialism and political activism (ALP) of
Australian unions. Also Australia’s ‘centralized or
compulsory arbitration’ system (the Conciliation and
Arbitration Act of 1904) differs from other countries.
Theories of Trade Union
Movement
Karl Marx: Classless society approach
Trade unions are natural outcomes of capitalism and
can be used to destroy capitalist class.

Sydney and Beatrice Webb : Socialist pattern

TU’s are means to achieve industrial democracy in
which worker is given say in running industry. Only
political democracy will not do.
Freedom of association, opportunity etc.
Robert Hoxie : Social- Psychological approach
 Difference of environment causes different unions to develop.He identifies 4 types

 i. Business Unionsm: trade conscious , collective bargaining usage -reliance on strike,

improvement in working conditions and ages.

 Ii.Friendly or uplift Unionsm: to elevate the moral, Intellectual and social life of the
worker by cooperative societies,mutual insurance etc.

 Iii.Revolutionary Unionism : class conscious, reject private ownership and condemn

wage system, violent means such as strike , sabotage, boycotts used.

 Iv.Predatory Unionism: attempt to secure high wages and benefits by whatever

means.
Mahatma Gandhi : Trusteeship
 To increase wealth using one’s talent and deploying surplus wealth in
public causes.
 To increase employees internal strength , to work conscientiously and
to take from the employer no more than what is rightfully due to
laborers.
FUNCTION OF TRADE UNION
 To secure for workers better wages

 To safeguard security of tenure and improve conditions of service

 To increase opportunities for promotion and training

 To improve working and living condition

 To provide for educational cultural and recreational facilities

 To promote identity of interests of the workers

 To offer improved level of production and productivity discipline and

high standard of quality
 To promote individual and collective welfare
Trade Union Structures
CRAFT UNION
 Formed of workers belonging to the same craft, occupation or
specialization irrespective of the industry in which they are employed.

 E.g. Indian Pilot’s guild.

 Electricians though working in different industries may form a union of
electricians only
INDUSTRIAL UNION :
 Organized on the basis of an industry rather than a craft
 All the workers-skilled,semi-skilled and unskilled engaged in a
particular industry organize
 E.g
 Labor force of a cotton textile factory decides to form a union of
workers of different crafts
 Rashtriya Mill Mazdoor Sabha,Tata workers Union
GENERAL UNION
Membership may cover workers employed in many
industries , employments and crafts

e.g.
The Jamshedpur Labour Union, whose membership
includes workers engaged in different industries and
crafts of Jamshedpur
Classification according to
agreement
 Business enterprise classified according to degree to which membership in them
is condition for employment
1. CLOSED SHOP
Agreement with the union that a worker must be the
member of the union at the time of employment and
continuos to do so in order to retain his job else
services are terminated.
Closed to non-unionists
Employers freedom to recruit is limited
2. UNION SHOP

 Agreement with the union that a worker would become a

member of the union within a specified period of his
securing employment and would continue his
membership to retain his job.

 Employer free to recruit

OPEN SHOP
Membership in a union is in no way compulsory
either before or after employment

AGENCY SHOP :
When an employee who is not a union member has
to pay the union a sum equal to subscription
MAINTENANCE SHOP :
Where an employee, on choosing to become a
member of a union, is obligated to continue his
membership of that union throughout his tenure of
employment with that employer
 Structure of Trade Unions
 Plant level Unions: The first level in the structure from below is the plant
level union. This comprises the unions in one organisation or factory. Please
note that only seven members are required to form a union. This has lead to
multiple unions in one factory. (We will discuss the details of this aspect in the
problems faced by unions in India).
 Local Level federations. This is the second level in the structure from below.
The local trade union federation holds together the plant level unions at the
local level in a particular craft and industry. These local level federations might
be affiliated to either some regional level or national level federation or these
may be independent.
 Regional level federations. These are the organisations of all the constituent
unions in a particular state or region.
 National federations. These are national level bodies to which plant level
unions, local unions or regional level unions may get affiliated. These are the
apex bodies at the top of the structure. They act as coordinating bodies. These
national federations may have their own regional or state level coordinating
bodies to which the plant level unions may get affiliated.
Names and details of some Unions
in India
TRADE UNIONS IN INDIA
The Indian workforce consists of 430 million workers,
growing 2% annually. The Indian labor markets consist of
three sectors:
The rural workers, who constitute about 60 per cent of the
workforce.
Organized sector, which employs 8 per cent of workforce,
and
The urban informal sector (which includes the growing
software industry and other services, not included in the
formal sector) which constitutes the rest 32 per cent of the
workforce.
 Trade Union Movement in the early
years
Bombay Mill Hands Association was followed by:

The The
Amalgamate Madras and The Kamgar
Printer’s
d society of Calcutta Postal Hitwardhak
Union of
railway Union, 1907 Sabha 1910
Calcutta,
Servants
1905
in India,
1897
Emergence and Development of TU
First cotton mill in India was established in 1851 in
Bombay and the first jute mill in 1855 in Bengal
First Factory Commission was appointed in Bombay in the
year 1875
First Factories Act was passed in 1881
 Was dissapaointing
 Second Factory Commission was appointed in 1884
 Mr. Lokhandey organised a conference of workers in Bombay
and drew up a memorandum signed by some 5,300 to
present to the Commission
 This was the first organized effort by workers in India
 However, no roll or membership, no funds and no rules.
Emergence and Development of TU
Contd.
Printers’ Union, Calcutta - 1905
Kamgar Hitwardhak Sabha - 1910
Social Service League – 1910
The amalgamated societyof railway servants of India
and Burma
Were essentially labour welfare organisations and may
hardly be regarded as modern trade unions
Marjory called as Social welfare period
Present Central Trade Union Organizations
All India Trade Union Congress (AITUC)
Bharatiya Mazdoor Sangh (BMS)
Centre of Indian Trade Unions (CITU)
Hind Mazdoor Kisan Panchayat (HMKP)
Hind Mazdoor Sabha (HMS)
Indian Federation of Free Trade Unions (IFFTU)
Indian National Trade Union Congress (INTUC)
National Front of Indian Trade Unions (NFITU)
National Labor Organization (NLO)
Trade Unions Co-ordination Centre (TUCC)
United Trade Union Congress (UTUC)
United Trade Union Congress - Lenin Sarani (UTUC - LS)
Some Figures of Trade Unions
All-India Trade Union Congress (AITUC)

Origin:
It was established in 1920 as result of a resolution passed by the organized workers of
Bombay and the delegates which met I a conference on 31st October, 1920.

Objectives:
 to establish a socialist state in India;
 to socialize and nationalize means of production, distribution and exchange;
 to improve the economic and social conditions of the working class;
 to watch, promote, and further the interests, rights, and privileges of the workers in all
matters relating to their employment;
 to secure and maintain for the workers the freedom of speech, freedom of press,
freedom of association freedom of assembly, the right to strike, and the right to work
and maintenance;
 to co-ordinate the activities of the labour unions affiliated to the AITUC;
 to abolish political or economic advantage based on caste, creed, community, race or
religion;
 to secure and maintain for the workers the right to strike
The Indian National Trade Union Congress

Origin:

The INTUC came into existence on 4th May, 1948, as a result of the resolution passed on
17th November 1947, by the Central Board of the Hindustan Mazdoor Sevak Sangh,
which was a labour leader on the Gandhian Philosophy of Sarvodaya

Objectives:

 To establish an order of society which is free from hindrances to an all-round

development of its individual members, which fosters the growth of human personality
in all its aspects, and which goes to the utmost limit in progressively eliminating social,
political or economic exploitation and inequality, the profit motive in the economic
activity and organization of society and the anti-social concentration of power in any
form;

 to place industry under national ownership and control in a suitable form;

 to secure increasing association of workers in the administration of industry and their

full participation in that control;
United Trade Union Congress (UTUC)
Origin:

Some trade union leaders of the socialist bent met together December 1948 to form a new central
organization of labour, called Hind Mazdoor Sabha

Objectives:

 The objectives of the UTUC are:

 to establish a socialist society in India;

 to establish a workers’ and peasants’ state in India;

 to nationalize and socialize the means of production, distribution and exchange;

 to safeguard and promote the interests, rights, and privileges to the workers in all matters, social, cultural,
economic and political;

 to secure and maintain workers’ freedom of speech, freedom of press, freedom of association, freedom of
assembly, right to strike, right to work or maintenance and the right to social security;

 to bring about unity in the trade union movement.

Bhartiya Mazdoor Sangh (BMS)

Origin:

This union has been the outcome of decision taken by the Jana Sangh in its Convention at
Bhopal on 23rd July, 1954.

Objectives:
 to establish the Bhartiya order of classless society in which there shall be secured full
employment;
 to assist workers in organizing themselves in trade unions as medium of service to the
motherland irrespective of faiths and political affinities;
 the right to strike;

 to inculcate in the minds of the workers the spirit of service, co-operation and
dutifulness and develop in them a sense of responsibility towards the nation in general
and the industry in particular.
 The BMS is a productivity-oriented non-political trade union. Its ideological basis is the
triple formula:
 nationalize the labour;

 labourise the industry;

 industrialize the nation;

National Front of Indian Trade Unions (NFITU)
Origin

This union was founded in 1967, with the claim that “this trade union of India is not controlled by
any of the political party, employers or government.”

Objectives:

 to organize and unite trade unions with the object of building up a National Central Organisation
of trade unions, independent of political parties, employers and the government, to further the
cause of labour and that of national solidarity security and defence of India, and to make the
working people conscious of their right as well as of obligations in all spheres of life;

 to secure to members of trade unions full facilities of recognition and effective representation of
interests of workers and to ensure for the working people fair conditions of life and service and
progressively to raise their social, economic and cultural state and conditions;

 to help in every possible way member trade unions in their fight to raise real wages of the
workers;

 to endeavour to secure for members of affiliated trade unions adoption of progressive legislation
for their welfare and to ensure the effective environment of the rights and interests of members of
affiliated trade unions and for the working people in general.
Centre of Indian Trade Union (CITU)
Origin
This union was formed in 1970 when as a result of the rift in the AITUC, some members of the
Communist party seceded. About the objectives of the CITU, its constitution says:

Objectives:

 The CITU believes that the exploitation of the working class can be ended only by socializing all
means of production, distribution and exchange and establishing a socialist state, that is, it stands for
the complete emancipation of the society from all exploitation.

 The CITU fights against all encroachments on the economic and social rights of the workers and the
enlargement of their rights and liberties including the right to strike, for winning, defending and
extending the freedom of the democratic trade union movement.

 In the fight for the immediate interest of the working class the CITU demands: (a) nationalization of
all foreign monopoly concerns who barbarously exploit the working class; (b) nationalization of all
concerns owned by Indian monopolists and big industry who garner huge profits at the expenses of
the workers, who exploit the people by pegging prices at a high level and who dictate the anti-labour
and anti-people policies of the government.

 The CITU fights against the repressive policy of the government towards the democratic and trade
union movement;
WHAT IS TRADE UNION MOVEMENT
 The trade union movement started after 1918, when the workers formed their
associations to improve their conditions. It is, thus, a part of the ‘labour
movement’, which is a much wide term

 A trade union is an essential basis of a labour movement for without which

one cannot exist, because trade unions are the principal schools in which the
workers learn the lesson of self-reliance and solidarity

 Trade Unionism in India has been the natural out come of the modern
factory system

 The main elements in the development of trade unions of workers in every

country have been more or less the same

 The development of trade unionism in India has had a checkered history and
a stormy career
PROCEDURE OF REGISTRATION OF TRADE UNION
At least 7 members should be present for an application

It should in a prescribed form ,fees and should be registered

under the Registrar of Trade Unions

Should be accompanied by a copy of the Rules of TU

Certificate of Registration is issued as soon as TU has been duely

registered under the Act

How are trade unions financed?
Each trade union member pays a subscription. The
amount varies from union to union and is normally set at
different levels according to the amount people earn. It is
usually between £5 and £8 a month. Some unions reduce
the fees for unemployed members.
People pay their subscription fees in different ways. It may
be collected by direct debit from a bank account, deducted
directly from wages or paid in cash or by cheque to a
union representative or full time official.
In exchange, members receive the benefits of
representation, negotiation, protection and other services
from their union.
 How do trade unions recruit their members?
Different unions cover different jobs and industries. People are able to
join the most appropriate union for their job or sector.
People are recruited to unions in different ways. Most people find out
about the union by talking to colleagues at the workplace and then
make direct contact with the union. Others are contacted by the union
representative who gives them information about the union and tells
them how to join. Some employers and personnel officers tell
employees about the union when they start working for the
organisation.
Unions are stepping up their efforts to attract new members. Some
are using adverts in newspapers and magazines, television
commercials and leaflets as part of high profile recruitment
campaigns. The target for these efforts is often people who work part
time, in temporary jobs or in small organisations where in the past
union membership has not been very high.
Begun in 1998, the 'New Unionism' project aimed to boost Trade
Union membership, especially in newly-emerging industries and
amongst members of the population who have been under-
represented traditionally in the trade unions. The project set up new
union roles of Academy Organisers who were trained intensively for
12 months in order to work as specialist union organisers.
How has trade union membership
changed in recent years?
In 2003, union membership in Britain, estimated from the
Labour Force Survey, was 7.42 million. The proportion of
all employees who were union members was 29.1%. These
are the overall figures but union membership varies
enormously by industry and by the types of jobs that
people do.
Trade union membership has declined over the last two
decades. In 1979 13.3 million people were members of trade
unions and the proportion of employees who were union
members stood at 55%. A comparison of membership data
for the period 1992-2003 can be seen on the ONS Web site.
Trade unions negotiate pay and conditions for people in a wide range
of occupations.
There are several reasons for this fall in membership, including:
•a dramatic fall in the number of jobs in manufacturing industries
where union membership was traditionally high
•larger numbers of unemployed people
•a fall in traditional full time employment and an increase in part
time and temporary workers who are less likely to join unions
•an increase in the proportion of the workforce employed by small
companies where it is often difficult for unions to organise
•hostile legislation - the previous Conservative government
introduced laws which make it more difficult for unions to operate
and keep their members.
.
However, trade union membership is still quite high and many
people are employed in workplaces where unions are recognised
by management for negotiating pay and conditions of
employment.
There is also evidence that the decline in union membership is
beginning to slow up. The TUC has launched a major recruitment
drive called 'New Unionism - Organising for Growth' and many
unions are stepping up their efforts to recruit in new industries
and jobs. More and more people are turning to trade unions
because they want the protection they can provide
 TRADE UNION MOVEMENT
GROWTH
Social Welfare Period (1875-1918)
 The development of industries led to large-scale production on the one hand and social
evils like employment and exploitation of women and child labour and the deplorable
workable conditions, the government’s attitude of complete indifference in respect of
protection of labour from such evils, on the other.

Early Trade Union Period(1918-1924)

 The year 1918 was an important one for the Indian trade union movement.

 The industrial unrest that grew up as a result of grave economic difficulties created by
war. The rising cost of living prompted the workers to demand reasonable wages for
which purpose they united to take resort to collective action .

Left-Wing Unionism Period (1924-1934)

 In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution,
conviction and imprisonment of many communist leaders. The rapid growth of the trade
unionism was facilitated by several factors
TRADE UNION MOVEMENT
GROWTH
Trade Union’s Unity Period (1935-1938)

 In mid-thirties the state of divided labour movement was natural thought

undesirable and soon after the first split, attempts at trade union unity began to be
made through the efforts of the Roy Group on the basis of ‘a platform of unity ’.

Second World War Period (1939-1945)

 The Second World War, which broke out in September 1939, created new strains in the
united trade union movement.

 Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200
unions with a membership of 3, 00,000 and formed a new central federation known as
the Indian Federation of Labour

The Post-Independence Period (From 1947 to-date)

 As pointed out earlier, when attempts to restructure the AITUC failed, those believing
in the aims and ideals other than those of the AITUC separated from the organization
and established the Indian National Trade Union Congress (INTUC) in May, 1947
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. The Act gives
protection to registered trade unions in certain
cases against civil and criminal action.
MAIN PROBLEMS OF
TRADE UNIONS
Uneven growth
Small size of the union
Financial weakness
Multiplicity of unions &
inter-union rivalry
Leadership issues
Politics in unions
Problems of recognition
of trade union
Problems for Trade Union Growth
Off-Centering Labour
Segmentation of Workforce
Core / Periphery
Employment Instability
Investment Attraction
Individualisation of Labour Relations
Labour Cost Cutting
Leadership Credibility/ Inside vs. Outside leadership
Failure of Institutions
Emergence of Non-union firms/ E-union/ Cyber-union
Criticism of Trade Unions
 Lack of education makes the workers narrow-minded, and prevents them from
taking long-term views. Thus, anything, which does not result in an immediate
reward, becomes unattractive to them. This attitude is responsible for many strikes
and lock-outs in industrial concerns.

 Trade unions may not welcome rationalisation and improved methods of production
for the fear that some of the workers will be put out of work. Therefore, they resort
to go slow policy that retards industrial progress.

 When labour unions strike because of illogical grounds, incalculable losses occur to
producers, community and the nation. These are harmful to the workers also. They
suffer because of the loss of wages.

 They create artificial scarcity of labour by demanding that only union personnel
should be employed.

 By undue insistence on the payment of standard rates of wages, they have only
leveled down the earnings of the efficient workers.
CONCLUSION
Trade Union is an important factor of the current
society, as it safeguards the basic interest and needs
of both the employees as well as employers, by giving
better terms and conditions of employment, secured
jobs, better wages, favorable working environment
which in turn leads to desired profitability.
Problems & weaknesses of Trade Unions
 Uneven Growth. The trade unionism in India is characterised by uneven growth,
both industry-wise and area-wise. Trade unions are popular in big industries and the
degree of unionisation varies widely from industry to industry. Besides, trade union
activities are concentrated in a few states and in bigger industrial centers mainly due
to concentration of industries in those places.
 Limited Membership. The number of trade unions in India has increased
considerably. But this has been followed by the declining membership per union.
 Multiplicity of Unions. There exist several trade unions in the same establishment.
The multiplicity of unions is the result of outside leadership and labour laws. The law
permits and gives sanctity to small unions. Any seven persons can form a union under
the Trade Unions Act, 1926. This Act confers rights on such a union. It is allowed
under the Act to raise disputes, file suits, go to conciliation and even bargain with
employers. Therefore, small sections of workers are encouraged to form separate
Unions. There is no restriction on the number of unions to be registered in one
establishment.
 Outside Leadership. Trade unions in India are led largely by people who themselves
are not workers. These outsiders are politicians, intellectuals and professionals having
no experience of work in industry. Outsiders continue to dominate the trade unions to
advance their personal interests.
Problems & weaknesses of Trade Unions
 Financial Problems. The financial position of the trade unions is
weak because their average yearly income is very low and inadequate.
The subscription rates are very low. Under conditions of multiplicity
of unions, a union interested in increasing its membership figures
keeps the subscription rate unduly low. As a result, the funds with the
unions are inadequate and they cannot undertake welfare
programmes for their members. Another reason for the weak financial
position of union is that large amounts of subscription dues remain
unpaid by the workers. Besides this, unions do not have proper staff
and organisation to collect subscriptions.

 Indifferent Attitude of Workers. In India, a large number of workers

have not joined any union. Moreover, all the members of the trade
unions do not show interest in their affairs. The attendance at the
general meetings of the unions is very low. Under such circumstance,
trade unionism cannot be expected to make much progress.
 Motivation to Join Unions
 Greater Bargaining Power. The individual employee possesses very little bargaining power as
compared to that of his employer. If he is not satisfied with the wage and other conditions of
employment, he can leave the job.
 Make their Voices Heard. The desire for self-expression is a fundamental human drive for most people.
Don’t you agree with that? All of us wish to share our feelings, ideas and opinions with others. Similarly
the workers also want the management to listen to them.
 Minimise Discrimination. The decisions regarding pay, work, transfer, promotion, etc. are highly
subjective in nature. I may rate you very differently as compared to your marketing teacher! Similarly the
personal relationships existing between the supervisor and each of his subordinates may influence the
management. Thus, there are chances of favoritisms and discriminations.
 Sense of Security. The employees may join the unions because of their belief that it is an effective way
to secure adequate protection from various types of hazards and income insecurity such as accident,
injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and
compel the management to invest in welfare services for the benefit of the workers.
 Sense of Participation. The employees can participate in management of matters affecting their
interests only if they join trade unions. They can influence the decisions that are taken as a result of
collective bargaining between the union and the management.
 Sense of Belongingness. Many employees join a union because their co-workers are the members of
the union. At times, an employee joins a union under group pressure; if he does not, he often has a very
difficult time at work. On the other hand, those who are members of a union feel that they gain respect
in the eyes of their fellow workers. They can also discuss their problem with’ the trade union leaders.
Suggestions for the development Unions
 One Union in One Industry: Multiplicity of unions in the same plant leads to inter-
union rivalry that ultimately cuts at the root of the trade union movement. It weakens
the power for collective bargaining and reduces the effectiveness of workers in securing
their legitimate rights. Therefore, there should be only one union in one industry.
 Paid Union Officials: Generally, the trade unions avail the services of the honorary
workers due to lack of funds. The practice should be stopped because honorary office
bearers cannot do full justice to the task entrusted to them because of lack of time at
their disposal. Suppose that you are asked to do something in the office, which requires a
lot of responsibility. You are not offered any thing in return. Of course the motivational
levels will come down unless and until you are a very passionate or a committed person.
The same applies to the officials of the unions. Therefore, paid union officials should be
employed who are persons of proven integrity and who are able to evaluate the demands
of workers so that they may negotiate with employers on equal footing.
 Development of Leadership from Within: It is of crucial importance that trade unions
are managed by the workers, and not by outsiders. Leadership should be developed from
within the rank and file of the workers.
 Recognition of Trade Unions. Till recently, the employers refused recognition to the
trade unions either on the basis that unions consisted of only a minority of employees or
two or more unions existed.
TRADE UNION RECOGNITION
Definition of Recognition
A union must be recognised before it may effectively
represent any employees15.
Once a union is recognised it serves as the bargaining
agent for the workers in a particular bargaining unit.
An employee may not circumvent the union because
recognition entails willingness ‘to negotiate with a
view to striking a bargain and this involves a positive
mental decision’.
Need for recognition
 Recognition of trade union is the backbone of collective bargaining. It
has been debated time and again. But inspite of the government stated
policy to encourage trade union there is no enforced central legislation
on this subject. There are however voluntary code of discipline and
legislations in some states. In the absence of any central legislation,
management in several states have refused to recognize trade union
mainly on five grounds:
(1) most of the office bearers of the union were outsiders;
(2) the trade union keeps outsiders disapproved by management and
particularly politicians and ex-employees;
(3) the union consisted of only small number of employees;
(4) there were in existence many rival unions; and
(5) the trade union was not registered under the Trade Unions Act, 1926.
However none of these objections are maintainable because to accept the
same would amount interference in the functioning of the Trade
Unions. Be that as it may, the refusal by employers to recognize or
bargain with unions has been the major obstacle to the healthy growth
of trade union and collective bargaining.
Role of ILO in recognition of Trade Unions
 ILO Convention No. 87 on ‘freedom of association and protection of
the rights to organise’ in 1948 and Convention No. 98 concerning the
right to organise and bargain collectively in 1949.

 ‘Workers and employers, without distinction whatsoever, will have

the right to establish and, subject only to the rules of the organization
concerned, to join organization concerned, to join organization of
their own choosing without previous authorization. The Convention
empowers the workers organization to frame their constitution, to
elect representatives and among others to organize their activities. To
establish and join federation, Convention, requires that workers and
employers and their respective organizations, like all other, will
respect the law of the land. The law of the land shall not be such as to
impair nor shall it be so applied as to impair, the guarantees provided
for in the constitution’.
The ILO confers protection to workers against acts of anti-
union discrimination in respect of their employment. The
protection is, directed in respect to acts calculated to:
(1) make the employment of a worker subject to the
condition that he will not join a union or may relinquish
trade union membership; and
(2) cause the dismissal, of or otherwise prejudice a worker
by reason of union membership or because of his
participation in union activities outside working hours.
Rights of Trade Unions in India
 The trade union rights in our country are found scattered in various
laws, voluntary measures like the Code of Discipline and the
constitutional provisions under the Constitution of India, art. 19.
These trade union rights may be divided into the following categories:
(1) right of freedom of speech and expression which includes right of
picketing and demonstrations;
(2) right regarding the formation and the registration of the trade union;
(3) right regarding the recognition of the trade union by the employers;
(4) Right regarding collective bargaining and collective actions;
(5) Right regarding conduct and functioning of the trade union; and
(6) Miscellaneous rights.
 Right to form a Trade Union – A
Constitutional Right of citizens of India
The right to form and continue a trade union is a
fundamental right guaranteed under the Constitution
of India, art. 19(1)(c), which may only be subjected to
reasonable restrictions in the public interest as
provided by art.
Trade Unions in Japan
1930s - Military regime in destroyed independent
unions: state controlled.
1949 - Post WWII independent unions re-emerged
56% density
1970 – union membership down to 35%
1996 - 23% density, mostly men (but does not count
unregistered enterprise level ‘employee associations’)
•Union decline due to: decline in manufacturing,
increase in services, rise in standard of living,
enterprise loyalty/lifetime employment.
•
Unions largely enterprise level affiliated to larger
‘industrial federations’, in turn to national centres.
Main centre is RENGO (Japan Trade Union
Confederation) – 78 industrial federations, 8 million
workers, favours co-operative labour-management
relations, little influence with govt.
•Few industrial disputes. Significant participation at
enterprise level.
•Very democratic. Union officials remain employees
and return to employer after term