industrial relations and labour welfare

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1 ANNA UNIVERSITY CHENNAI

INDUSTRIAL RELATIONS AND LABOUR WELFARE

UNIT I

INDUSTRIAL RELATIONSLearning Objectives

After going though this unit you should be in a position to explain the following terminologies:

Concept of Industrial Relations Importance of IR Labour Turnover Absenteeism Trade Union Codes of Conduct

1.1 INTRODUCTION

Industrial relations has become one of the most delicate and complex problems ofmodern industrial society. Industrial progress is impossible without cooperation of laboursand harmonious relationships. Therefore, it is in the interest of all to create and maintaingood relations between employees (labour) and employers (management).

1.2 CONCEPT OF INDUSTRIAL RELATIONS

The term Industrial Relations comprises of two terms: Industry and Relations.Industry refers to any productive activity in which an individual (or a group of individuals)is (are) engaged. By relations we mean the relationships that exist within the industrybetween the employer and his workmen.

The term industrial relations explain the relationship between employees andmanagement which stem directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within theorganizational settings. The field of industrial relations looks at the relationship betweenmanagement and workers, particularly groups of workers represented by a union. Industrialrelations are basically the interactions between employers, employees and the government,and the institutions and associations through which such interactions are mediated.

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The term industrial relations have a broad as well as a narrow outlook. Originally,industrial relations were broadly defined to include the relationships and interactions betweenemployers and employees. From this perspective, industrial relations covers all aspects ofthe employment relationship, including human resource management, employee relations,and union-management (or labour) relations. Now its meaning has become more specificand restricted. Accordingly, industrial relations pertains to the study and practice of collectivebargaining, trade unionism, and labour-management relations, while human resourcemanagement is a separate, largely distinct field that deals with nonunion employmentrelationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include therelationships between individual workers, the relationships between workers and theiremployer, the relationships between employers, the relationships employers and workershave with the organizations formed to promote their respective interests, and the relationsbetween those organizations, at all levels. Industrial Relations also includes the processesthrough which these relationships are expressed (such as, collective bargaining, workersparticipation in decision-making, and grievance and dispute settlement), and the managementof conflict between employers, workers and trade unions, when it arises.

The industrial situation as reflected in the statement of mandays lost on account ofstrikes and lockouts has shown improvement in recent years. Despite increase in the numberof strikes and lockouts in 1997 compared to 1996, the mandays lost due to these agitationshave actually declined. The total number of strikes and lockouts increased from 1166 in1996 to 1305 in 1997, but the mandays lost on account of these strikes and lockoutsdeclined from 20.3 million in 1996 to 17 million in 1997 (Table 1.1). Among the states,Andhra pradesh, Tamil Nadu, Gujarat and West Bengal recorded most of the agitations.Cotton textiles, engineering and jute hemp and Mesta textiles were the industrial groupswhich witnessed maximum loss of mandays on account of strikes and lockouts.

Wage and wage related issues, personnel issues, retrenchment and indiscipline havebeen identified as major reasons behind strikes and lockouts. Protests against privatizationand entries of multinationals are issues that have gained importance in recent years. Thesteady improvement in industrial relations has been possible mainly because of theGovernments proactive role through timely and effective conciliation of industrial disputesand involvement of the social partners at various bipartite-tripartite fora for the formulationof labour and industrial policies. One important issue, which needs to be addressed, is theextant labour laws especially Industrial Disputes Act (IDA) 1947, which governs lay off,retrenchment and closure. Central and State Governments have often been inhibited ingranting necessary permissions for closure, even when economic compulsions justifiedgranting of such permissions. It has often been observed that the present legal provisionsand procedures restrict labour market flexibility and thereby discourage growth ofemployment. A thorough review of the provisions of the IDA and other labour legislations

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is called for to impart greater flexibility to the labour market and thereby encourage moreemployment.

Considering the radical changes that have taken place in the domestic industrial scenarioand the labour market, the Government has decided to set up the Second NationalCommission on Labour to suggest among others, rationalization of the existing laws in theorganized sector so as to make them more relevant and appropriate in the changing contextof globalization and opening up of the Indian economy.

MEANING AND DEFINITION OF INDUSTRIAL RELATION

The relationship between Employer and employee or trade unions is called IndustrialRelation. Harmonious relationship is necessary for both employers and employees tosafeguard the interests of the both the parties of the production. In order to maintain goodrelationship with the employees, the main functions of every organization should avoid anydispute with them or settle it as early as possible so as to ensure industrial peace and higherproductivity. Personnel management is mainly concerned with the human relation in industrybecause the main theme of personnel management is to get the work done by the humanpower and it fails in its objectives if good industrial relation is maintained. In other wordsgood Industrial Relation means industrial peace which is necessary for better and higherproductions.

Other commonly referred definitions:i. Industrial Relation is that part of management which is concerned with the manpower

of the enterprise whether machine operator, skilled worker or manager.ii. Industrial Relation is a relation between employer and employees, employees and

employees and employees and trade unions. - Industrial dispute Act 1947iii. While moving from jungle of the definitions, here, Industrial Relation is viewed as

the process by which people and their organizations interact at the place of workto

Establish the terms and conditions of employment.

The Industrial Relation relations also called as labor - management, employee-employersrelations.

A few notable features pertaining to Industrial Relations are as under:1. Industrial Relation do not emerge in vacuum they are born of employment relationship

in an industrial setting. Without the existence of the two parties, i.e., labour andmanagement, this relationship cannot exist. It is the industry, which provides theenvironment for industrial relations.

2. Industrial Relation are characterized by both conflict and co-operations. This isthe basis of adverse relationship. So the focus of Industrial Relations in on thestudy of the attitudes, relationships, practices and procedure developed by thecontending parties to resolve or at least minimize conflicts.

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3. As the labor and management do not operate in isolations but are parts of largesystem, so the study of Industrial Relation also includes vital environment issueslike technology of the workplace, countrys socio-economic and politicalenvironment, nations labor policy, attitude of trade unions workers and employers.

4. Industrial Relation also involve the study of conditions conductive to the labor,managements co-operations as well as the practices and procedures required toelicit the desired co-operation from both the parties.

5. Industrial Relations also study the laws, rules regulations agreements, awards ofcourts, customs and traditions, as well as policy framework laid down by thegovernments for eliciting co-operations between labor and management. Besidesthis, it makes an in-depth analysis of the interference patterns of the executive andjudiciary in the regulations of labormanagements relations.

In fact the concepts of Industrial Relations are very broad-based, drawing heavilyfrom a variety of discipline like social sciences, humanities, behavioral sciences, lawsetc.

Industrial Relation encompasses all such factors that influence behavior of people atwork. A few such important factors are details below:1. Institution: It includes government, employers, trade unions, unions federations or

associations, government bodies, labor courts, tribunals and other organizationswhich have direct or indirect impact on the industrial relations systems.

2. Characters : It aims to study the role of workers unions and employers federationsofficials, shop stewards, industrial relations officers/ manager, mediator/conciliators/ arbitrator, judges of labor court, tribunal etc.

3. Methods : Focus on collective bargaining, workers participation in the IndustrialRelation schemes, discipline procedure, grievance re-dressal machinery, disputesettlements machinery working of closed shops, union reorganization, organizationsof protests through methods like revisions of existing rules, regulations, policies,procedures, hearing of labor courts, tribunals etc.

4. Contents : Includes matter pertaining to employment conditions like pay, hours ofworks, leave with wages, health, and safety disciplinary actions, lay-off, dismissalsretirements etc., laws relating to such activities, regulations governing labor welfare,social security, industrial relations, issues concerning with workers participation inmanagement, collective bargaining, etc.,

Objectives of Industrial Relation:A. To safeguard the interest of labor and management by securing the highest level of

mutual understanding and good-will among all those sections in the industry whichparticipate in the process of production.

B. To avoid industrial conflict or strife and develop harmonious relations, which arean essential factor in the productivity of workers and the industrial progress of acountry.

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C. To raise productivity to a higher level in an era of full employment by lessening thetendency to high turnover and frequency absenteeism.

D. To establish and nurse the growth of an Industrial Democracy based on laborpartnership in the sharing of profits and of managerial decisions, so that banindividuals personality may grow its full stature for the benefit of the industry andof the country as well.

E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos byproviding reasonable wages, improved living and working conditions, said fringebenefits.

F. To establish government control of such plants and units as are running at a loss orin which productions has to be regulated in the public interest.

G. Improvements in the economic conditions of workers in the existing state of industrialmanagements and political government.

H. Control exercised by the state over industrial undertaking with a view to regulatingproduction and promoting harmonious industrial relations.

I. Socializations or rationalization of industries by making he state itself a majoremployer

J. Vesting of a proprietary interest of the workers in the industries in which they areemployed.

The main aspects of Industrial Relations are:-

i. Labor Relations, i.e. relations between union and managementii. Employer-employees relations, i.e. relations between management and employeesiii. Group relations, i.e. relations between various groups of workmeniv. Community or Public relations, i.e. relations between industry and society.v. Promotions and development of healthy labor-managements relations.vi. Maintenance of industrial peace and avoidance of industrial strifevii. Development of true industrial Democracy

Effects of poor Industrial Relations

Poor Industrial Relation produces highly disquieting effects on the economic life ofthe country. We may enumerate the ill-effects of poor Industrial Relations as under:1. Multiplier effects:

Modern industry and for that matter modern economy are interdependent. Hencealthough the direct loss caused due to industrial conflict in any one plant may not bevery great, the total loss caused due to its multipliers effect on the total economy isalways very great.

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2. Fall in normal tempo:Poor Industrial Relations adversely effect the normal tempo of work so that work arbelow the optimum level. Costs build up. Absenteeism and labor turnover increase.Plants discipline breaks down and both the quality and quality of production suffer.

3. Resistance of change:Dynamic industrial situation calls for change more or less continuously. Methods haveto be improved. Economics have to be introduced. New products have to be designed,produced and put in the market. Each of these tasks involves a whole chain of changesand this is resisted bitterly if these are industrial conflict.

4. Frustration and social cost:Every man comes to the work place not only to earn a living. He wants to satisfy hissocial and egoistic needs also. When he finds difficulty in satisfying these needs hefeels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration.They reduce cordiality and aggravate social tension.

Suggestions to Improve Industrial Relation

a. Both management and unions should develop constructive attitudes towards eachother

b. All basic policies and procedures relating to Industrial Relation should be clear toeverybody in the organization and to the union leader. The personnel managermust make certain that line people will understand and agree with these policies.

c. The personnel manager should remove any distrust by convincing the union of thecompanys integrity and his own sincerity and honesty. Suspicious, rumors anddoubts should all be put to rest.

d. The personnel manager should not vie with the union to gain workers loyal to boththe organization. Several research studies also confirm the idea of dual allegiance.There is strong evidence to discard the belief that one can owe allegiance to onegroup only.

e. Management should encourage right kind of union leadership. While it is not forthe management to interfere with union activities, or choose the union leadership,its action and attitude will go a long way towards developing the right kind of unionleadership. Management gets the union it deserves is not just an empty phrase.Managements

IMPORTANCE OF INDUSTRIAL RELATIONS:

The healthy industrial relations are key to the progress. Their significance may bediscussed as under 1. Uninterrupted Production

The most important benefit of industrial relations is that this ensures continuity ofproduction. This means, continuous employment for all from manager to workers.The resources are fully utilized, resulting in the maximum possible production. There

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is uninterrupted flow of income for all. Smooth running of an industry is of vitalimportance for several other industries; to other industries if the products areintermediaries or inputs; to exporters if these are export goods; to consumers andworkers, if these are goods of mass consumption.

2. Reduction in Industrial DisputesGood industrial relation reduces the industrial disputes. Disputes are reflections of thefailure of basic human urges or motivations to secure adequate satisfaction or expressionwhich are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics,gherao and grievances are some of the reflections of industrial unrest which do notspring up in an atmosphere of industrial peace. It helps promoting co-operation andincreasing production.

3. High moraleGood industrial relations improve the morale of the employees. Employees workwith great zeal with the feeling in mind that the interest of employer and employees isone and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains ofindustry are not for him along but they should be shared equally and generously withhis workers. In other words, complete unity of thought and action is the mainachievement of industrial peace. It increases the place of workers in the society andtheir ego is satisfied. It naturally affects production because mighty co-operative effortsalone can produce great results.

4. Mental RevolutionThe main object of industrial relation is a complete mental revolution of workers andemployees. The industrial peace lies ultimately in a transformed outlook on the part ofboth. It is the business of leadership in the ranks of workers, employees and Governmentto work out a new relationship in consonance with a spirit of true democracy. Bothshould think themselves as partners of the industry and the role of workers in such apartnership should be recognized. On the other hand, workers must recognizeemployers authority. It will naturally have impact on production because they recognizethe interest of each other.

5. New ProgrammesNew programmes for workers development are introduced in an atmosphere of peacesuch as training facilities, labor welfare facilities etc. It increases the efficiency ofworkers resulting in higher and better production at lower costs.

6. Reduced WastageGood industrial relations are maintained on the basis of cooperation and recognitionof each other. It will help increase production. Wastages of man, material and machinesare reduced to the minimum and thus national interest is protected.Thus, from the above discussion, it is evident that good industrial relation is the basis

of higher production with minimum cost and higher profits. It also results in increasedefficiency of workers. New and new projects may be introduced for the welfare of theworkers and to promote the morale of the people at work.

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An economy organized for planned production and distribution, aiming at the realizationof social justice and welfare of the massage can function effectively only in an atmosphereof industrial peace. If the twin objectives of rapid national development and increasedsocial justice are to be achieved, there must be harmonious relationship between managementand labor.

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMANRELATIONS:

The term Industrial Relations is different from Human Relations. Industrial relationsrefer to the relations between the employees and the employer in an industry. Humanrelations refer to a personnel-management policy to be adopted in industrial organizationsto develop a sense of belongingness in the workers improves their efficiency and treatthem as human beings and make a partner in industry.

Industrial relations cover the matters regulated by law or by collective agreementbetween employees and employers. On the other hand, problems of human relations arepersonal in character and are related to the behavior of worker where morale and socialelements predominated. Human relations approach is personnel philosophy which can beapplied by the management of an undertaking. The problem of industrial relations is usuallydealt with a three levels the level of undertaking, the industry and at the national level. Tosum up the term Industrial Relations is more wide and comprehensive and the termHuman Relations is a part of it.

Determining factors of industrial relations

Good industrial relations depend on a great variety of factors. Some of the moreobvious ones are listed below:

1. History of industrial relationsNo enterprise can escape its good and bad history of industrial relations. A goodhistory is marked by harmonious relationship between management and workers. Abad history by contrast is characterized by militant strikes and lockouts. Both typesof history have a tendency to perpetuate themselves. Once militancy is established asa mode of operations there is a tendency for militancy to continue. Or once harmoniousrelationship is established there is a tendency for harmony to continue.

2. Economic satisfaction of workersPsychologists recognize that human needs have a certain priority. Need number oneis the basic survival need. Much of men conducted are dominated by this need. Manworks because he wants to survive. This is all the more for underdeveloped countrieswhere workers are still living under subsistence conditions. Hence economic satisfactionof workers is another important prerequisite for good industrial relations.

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3. Social and Psychological satisfactionIdentifying the social and psychological urges of workers is a very important steps inthe direction of building good industrial relations. A man does not live by bread alone.He has several other needs besides his physical needs which should also be given dueattention by the employer. An organization is a joint venture involving a climate ofhuman and social relationships wherein each participant feels that he is fulfilling hisneeds and contributing to the needs of others. This supportive climate requireseconomic rewards as well as social and psychological rewards such as workersparticipation in management, job enrichment, suggestion schemes, re-dressal ofgrievances etc.

4. Off-the-Job ConditionsAn employer employs a whole person rather than certain separate characteristics. Apersons traits are all part of one system making up a whole man. His home life is notseparable from his work life and his emotional condition is not separate from hisphysical condition. Hence for good industrial relations it is not enough that the workersfactory life alone should be taken care of his off-the-job conditions should also beimproved to make the industrial relations better.

5. Enlightened Trade UnionsThe most important condition necessary for good industrial relations is a strong andenlightened labor movement which may help to promote the status of labor withoutharming the interests of management, Unions should talk of employee contributionand responsibility. Unions should exhort workers to produce more, persuademanagement to pay more, mobilize public opinion on vital labor issues and helpGovernment to enact progressive labor laws.

6. Negotiating skills and attitudes of management and workersBoth management and workers representation in the area of industrial relations comefrom a great variety of backgrounds in terms of training, education, experience andattitudes. These varying backgrounds play a major role in shaping the character ofindustrial relations. Generally speaking, well-trained and experienced negotiators whoare motivated by a desire for industrial peace create a bargaining atmosphere conduciveto the writing of a just and equitable collective agreement. On the other hand, ignorant,inexperienced and ill-trained persons fail because they do not recognize that collectivebargaining is a difficult human activity which deals as much in the emotions of peopleas in their economic interests. It requires careful preparation and top notch executivecompetence. It is not usually accomplished by some easy trick or gimmick. Partiesmust have trust and confidence in each other. They must possess empathy, i.e. theyshould be able to perceive a problem from the opposite angle with an open mind.They should put themselves in the shoes of the other party and then diagnose theproblem. Other factors which help to create mutual trust are respect for the law andbreadth of the vision. Both parties should show full respect for legal and voluntaryobligations and should avoid the tendency to make a mountain of a mole hill.

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7. Public policy and legislationWhen Government, regulates employee relations, it becomes a third major forcedetermining industrial relations the first two being the employer and the union. Humanbehavior is then further complicated as all three forces interact in a single employeerelation situation. Nonetheless, government in all countries intervenes in management union relationship by enforcing labor laws and by insisting that the goals of wholesociety shall take precedence over those of either of the parties. Governmentintervention helps in three different ways 1) it helps in catching and solving problemsbefore they become serious. Almost every one agrees that it is better to prevent firesthem to try stopping them after they start; 2) It provides a formalized means to theworkers and employers to give emotional release to their dissatisfaction; and 3) Itacts as a check and balance upon arbitrary and capricious management action.

8. Better educationWith rising skills and workers education expectations in respect of rewards increases.It is a common knowledge that the industrial worker in India is generally illiterate andis misled by outside trade union leaders who have their own axe to grind. Betterworkers education can be a solution to this problem. This alone can provide workerwith a proper sense of responsibility, which they owe to the organization in particular,and to the community in general.

9. Nature of industryIn those industries where the costs constitute a major proportion of the total cast,lowering down the labor costs become important when the product is not a necessityand therefore, there is a little possibility to pass additional costs on to consumer. Suchperiods, level of employment and wages rise in decline in employment and wages.This makes workers unhappy and destroys good industrial relations.

INDUSTRIAL RELATIONS PROGRAMME

Todays professional industrial relations director, or by whatever title he is designated,no longer views his job as personalizing management, or that of a social worker in afactory, or a union buster, he looks upon his department as an adjunct to managementsupervision at all levels; he keeps other executives informed about new discoveries,programme trends and needs. At the same time, he provides efficient service in the operationof several centralized services

A successful industrial relations programme reflects the personnel viewpoint, which isinfluenced by three main considerations:

a. Individual thinkingb. Policy awareness andc. Expected group reaction

Individualized thinking makes if imperative for the administrator to consider the entiresituation in which the affected individual is placed. Policy awareness underscores the idea

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of the consistency of treatment and the precedent value of any decision which a managementtakes; while expected group reaction balances what we know of human nature in groupsagainst an individuals situation in the light of the policy that has been formulated andimplemented. In all these different circumstances, reality demands that all the three aspectsof the personnel viewpoint should be considered at once in terms of the past, the presentand the future. This viewpoint is held at all the levels of management from the top to thebottom, from the top executives and staff to the line and supervisory personnel.

SCOPE OF INDUSTRIAL RELATIONS WORK:

The staff employed in the industrial relations department should know the limitationswithin which it has to function. The industrial relations director generally has several assistantswho help him to perform his functions effectively, and he usually reports directly to thepresident or chairman of the board of directors of an organization.

The functions of the industrial relations staff are

1. Administration, including overall organization, supervision and co-ordination of industrialrelations policies and programmes.

2. Liaison with outside groups and personnel departments as well as with various cadresof the management staff.

3. The drafting of regulations, rules, laws or orders and their construction and interpretation.4. Position classification, including overall direction of job analysis, salary and wage

administration, wage survey and pay schedules.5. Recruitment and employment of workers and other staff.6. Employment testing, including intelligence tests, mechanical aptitude tests and

achievement tests.7. Placement, including induction and assignment.8. Training of apprentices, production workers, foremen and executives.9. Employee counseling on all types of personnel problems-educational, vocational, health

or behavior problems.10. Medical and health services.11. Safety services, including first aid training12. Group activities, including group health insurance, housing, cafeterial programmes and

social clubs.13. Suggestion plans and their uses in labor, management and production committees.14. Employee relations, especially collective bargaining with representatives and settling

grievances.15. Public relations.16. Research in occupational trends and employee attitudes, and analysis of labor turnover.

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17. Employee records for all purposes.18. Control of operation surveys, fiscal research and analysis.19. Benefit, retirement and pension programmes.

FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIALRELATIONS PROGRAMME

The basic requirements on which a successful industrial relations programme is basedare:-

a) Top Management Support:Since industrial relations is a functional staff service, it must necessarily derive itsauthority from the line organization. This is ensured by providing that the industrialrelations director should report to a top line authority to the president, chairman orvice president of an organization.

b) Sound Personnel Policies:These constitute the business philosophy of an organization and guide it in arriving atits human relations decisions. The purpose of such policies is to decide, before anyemergency arises, what shall be done about the large number of problems which cropup every day during the working of an organization. Policies can be successful onlywhen they are followed at all the level of an enterprise, from top to bottom.

c) Adequate Practices should be developed by professionals:In the field to assist in the implementation of the policies of an organization, a systemof procedures is essential if intention is to be properly translated into action. Theprocedures and practices of an industrial relations department are the tool ofmanagement which enables a supervisor to keep ahead of his job that of the time-keeper, rate adjuster, grievance reporter and merit rater.

d) Detailed Supervisory Training:To ensure the organizational policies and practices are properly implemented andcarried into effect by the industrial relations staff, job supervisors should be trainedthoroughly, so that they may convey to the employees the significance of those policiesand practices. They should, moreover, be trained in leadership and in communications.

e) Follow-up of Results:A constant review of an industrial relations programme is essential, so that existingpractices may be properly evaluated and a check may be exercised on certainundesirable tendencies, should they manifest themselves. A follow up of turnover,absenteeism, departmental morale, employee grievances and suggestion; wageadministration, etc. should be supplemented by continuous research to ensure thatthe policies that have been pursued are best fitted to company needs and employeesatisfaction. Hints of problem areas may be found in exit interviews, in trade uniondemands and in management meetings, as well as in formal social sciences research.

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1.3 TRADE UNION AND ITS IMPORTANCE

The existence of a strong and recognized trade union is a pre-requisite to industrialpeace. Decisions taken through the process of collective bargaining and negotiationsbetween employer and unions are more influential. Trade unions play an important role andare helpful in effective communication between the workers and the management. Theyprovide the advice and support to ensure that the differences of opinion do not turn intomajor conflicts. The central function of a trade union is to represent people at work. Butthey also have a wider role in protecting their interests. They also play an importanteducational role, organizing courses for their members on a wide range of matters. Seekinga healthy and safe working environment is also prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many ways asfollows:

by helping in the recruitment and selection of workers. by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. Workers have to adjust themselves to the new

working conditions, the new rules and policies. Workers coming from differentbackgrounds may become disorganized, unsatisfied and frustrated. Unions helpthem in such adjustment.

Trade unions are a part of society and as such, have to take into consideration thenational integration as well. Some important social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrialdisputes

incorporating a sense of corporate social responsibility in workers achieving industrial peace

1.4 TREND IN NUMBER OF REPORTING FACTORIES EMPLOYMENT

Absenteeism & Labour Turnover, Average Labour Cost and Average Wages/Salaries ofEmployeesSl. No. Parameters Year

2000 01 2001-02 2002-03 2003-04 2004-051. No. of Reporting Factories 128339 125834 125834 125844 1363562. Average Daily Employment

a. All Employees 7988233 7751095 7935948 7870081 8453624

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b. All Workers 6135675 5958492 6161493 6086908 6599298c. Male Workers 4000370 3771435 3809037 3695860 3863691d. Female Workers 881171 889292 929745 894992 987497e. Child Workers 666 306 557 385 45f. Contract Workers 1253468 1297458 1422155 1495671 1748065

3. Absenteeism Rate (%) @ 10.08 9.44 9.61 10.01 8.964. Labour Turnover

a. Accession Rate (%) @ 15.97 15.26 15.44 16.79 18.45b. Separation Rate (%) @ 17.16 17.43 16.57 18.11 16.94

5. Labour Cost on Employeesper Manday Worked (Rs.) 256.45 271.96 285.05 305.89 307.76

6. Percentage of Labour Cost toTotal Cost of Production 7.78 4.35 7.15 6.82 5.81

7. Percentage of Components of Labour Cost to Total Labour Costa. Wages/Salaries 77.5576.2976.5976.4077.95b. Bonus 4.44 4.19 4.12 4.11 4.29c. Provident Fund 10.7512.3011.9312.1210.31d. Welfare Expenses 7.25 7.22 7.36 7.36 7.45

8. Wages/Salaries per Man-day Worked (Rs.) bya. All Employees 198.88 207.47 218.31 233.71 239.91b. All Workers 148.86 152.38 158.75 165.55 168.58c. Male Workers 180.02 187.84 197.85 207.72 212.30d. Female Workers 78.4579.1382.1787.3391.00e. Child Workers 55.6338.7861.8751.5728.86f. Contract Workers 90.1090.9596.68100.96109.71

@AmongDirectlyEmployedRegular Workers during the calendar year.

NB:1.Workersaredefinedtoincludeallpersonsemployeddirectlyorthroughanyagency, whether for wages or not, in any manufacturing process or in cleaning any part ofmachinery or premises used for manufacturing process or in any other kind of work,incidental to, or connected with the manufacturing process or the subject of manufacturingprocess. Labour engaged in repair and maintenance or production of fixed assets forfactorys own use or labour employed for generating electricity, etc. is also included.

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2. Employees include all workers and persons receiving wage/salary and holdingsupervisory or managerial positions engaged in administrative office, store keepingand welfare sections, sales department as also those engaged in purchase of rawmaterials, etc or purchase of fixed assets for the factory and watch and ward staff.

1.5 TRADE UNION CONCEPT

The classic definition of trade union was given by Sidney and Beatrice Webb statesthat it is a continuous association of wage earners for the purpose of maintaining andimproving conditions of their working lives. In their time, the brand to trade unionorganizations that existed was small and local representating a specific skill or trade. Thedefinition refers to a permanent organization of workers rather than one which is createdfor a particular purpose and died later on. The term wage earner in its purview includessalary earns. The objectives of such association is to maintain and improve the workingconditions of its members

1.5.1 A few commonly cited definitions trade union are

Dale Yoder, A trade union is a continuous association of wage-earners for the purposemaintaining of improving the conditions of their working lives.

S.D. Puneker, A trade union is a monopolistic combination of wage-earners who asindividual producers are complementary to one another but who stand to employers in arelation of dependence for the sale of their labour and production, and that the generalpurpose of association is in view of that dependence to strengthen their power to bargainwith the employers of bargaining collectively.

However, for the sake of discussion, these definitions may sound good, but a legalisticdefinition of trade union is desirable in understanding its concept as prevalent in a particularsociety. This is because in the case of industrial dispute or on all union matter, on has to goby what the letter of laws says and not by what people perceive the union to be.

The British Trade Union Act views it thus, A trade union is a combination with themain objective of regulating the relation between workmen and masters or betweenworkmen and workmen or between masters and masters for imposing of restrictiveconditions on the conduct of any trade or business and also provision of benefits to members

In the words of India Trade Union Act, 1926, A trade union is any combination,whether temporary or permanent, formed primarily for the purpose of regulating the relationsbetween workmen and employers, or between workmen and workmen, between employeesand employers, or for imposing restrictive conditions on the conduct of any trade or business,and includes any federation of two or more trade unions.

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This definition is defective because it allows even non-workers to form a trade union;also it is narrow and vague about the aims and purpose of forming such a union. Yet thedefinition with a clear and legal wording is certainly important in relation to getting a tradeunion registered with the Registrar of Trade Unions and when legal interpretation of tradeunion is required in the case of industrial disputes etc.

The characteristic which define a trade union includesi) A Statement that the organization is a trade union.ii) A Statement of its principal objectives, clearly specifying the fact that the organization

formed is for the betterment of its members, i.e workers.iii) Registration with the Registrar of Trade Unions having jurisdiction on the area

where Trade Union functionsiv) Independence from the employer, which may be evident form the certificate issued

by the Registrar of Trade Unions.v) Affiliation with the central trade union organization

All the trade unions do not necessarily shown these characteristics, yet many of thelarge trade unions do.

1.5.2 General Features of Trade Unions

Coming out of a vast array of literature on the subject, here a few general featurestrade unions are detailed out:(1) The trade union is an association either of employers or employees or of independent

workers. Accordingly, in India such unions may consist ofi. Merchants or employers associations (like the Employers Federation of India,

the All-India Manufacturers Organisations, the All India Organisation of IndustrialEmployers, the Tea Planters Association of North India, the United PlantersAssociation of South India, the Indian Jute Mills Association, the Indian SugarMills Association the Bombsy Mill Owners Association, and the Indian PaperMills Association;

ii. The general labour unionsiii. The friendly societies andiv. Combination of intellectual labour like (the All-India Teachers Association; the

All-India Bank Employees Association; the All-India Medical DoctorsAssociation; the Railway mens Federation; National Federation of Posts andTelegraphs Workers; the All-India Mine Workers Federation etc.)

On the other hand, in England, the term trade union also refers to the associationsof professional persons such as artists federations, musicians union etc.

In China, they refer to the trade union as an association of members of manual wage-earners in enterprises, institutions schools and also working class engaged in irregularemployments.

NOTES



In the erstwhile USSR, they were a mass non-party public organization which unitson a voluntary basis, the workers and other employees of all occupations. They are reallythe masses of workers and others employees around the party which are mobilized for thestruggle to build a communist society.

In USA, theses organizations are combinations of all persons in a given trade with thepurpose of demanding and securing for each and all of them a definite minimum standardof wages, hours and conditions of works.

It may , however , be noted that all similar organizations cannot truly be regarded astrade unions, because the associations of employers are concerned with influencing theterms of purchase of services in favour of their members which they need for performingparticular tasks. The associations of professional persons, too cannot be regarded as truetrade unions because their main objectives are to improve the training and education oftheir members. Further, such associations include the self-employed as well as the employees.The trade union should, therefore, be regarded as an association only of workers oremployees.

Thinkers like the Webbs, Cunnison and others do not recognize the employersassociations and professional bodies as trade unions because they differ fundamentallyfrom the workers organizations. They are of the view that if professional associations aretreated as trade unions, a similar problem may arise for associations of sellers of services,like traveling and commission agents, bankers, insurance and property brokers and hotel-owners, and to include them within the fold of the trade unions would be cumbersome andundesirable.

Sometimes, workers allow their employers to join their unions and vice versa. Suchorganization may be called trade combinations or mixed combinations as provided in thestatutory provisions in Chile, France, Hungary and Romania. In India, such organizationshave been referred to as quasi-unions.

(2) Labour unions are relatively permanent association of workers and are not temporaryor casual: They persist throughout the years and conceive of their purpose as onwhich is not merely immediate but continues. They do not expect to attain theirobjectives in a day because they anticipate and contemplate continuing stream ofadditional objectives to be adopted from time to time. The most frequently usedtechniques by trade union is collective bargaining by which is meant the subordinationof individual employer-employee relationships, in so far as the latter involvedetermination of wages and other conditions of employment-agreements affectingall workers in a group, arrived at by means of bargaining carried on not by workersthemselves but by their union representatives.

(3) A Trade union is an association of workers who are engaged in securing economicbenefits for its members: In other words it is essentially a cooperative labourmarketing association. Its purpose is to secure control of the supply of labour in

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one or more markets and to maintain that control as a means of fixing the price oflabour as well as the conditions under which it works. But this does not mean thatthe advancement of the economic interests of its members is the sole purpose of atrade union. As they also try to advance the social political and cultural complex coeconomic, legal, ethical and social problems, which can be understood and metonly by knowing the facts and genesis of the viewpoint of organized labour in all itsdiversity, contradictions and shifting character and by considering this viewpoint inrelation to developing social contradictions and social traditions. The trade unionsof to-day are plurist in character and by so slowly changing environment. Thetraditional concept of trade union functions which was to defend the workersrights and interests against the employers and the state has now changed and beenreplaced by a new approach to its functions, namely:(i) Protection of workers and provision for their security;(ii) Improving the wages, conditions of work and standards of living;(iii) Raising the status of the workers as a part of industry and citizen of society;

and(iv) Contributing in nations socio-economic development

(4) The character of trade unions has been constantly changing: The changes intechnology and system of production create fresh problems. Trade unions changetheir methods and their working to adjust themselves to changing circumstances.Therefore, there has been no finality about trade unions their working and theirmethods. They have gradually evolved and have now come to occupy an importantplace in modern industrial order. From criminal and illegal associations, they havenow become legalized and recognized institutions; from institutions which wereonly very small bodies, they have how become gigantic associations; form institutionsthat were primarily interested in the advancement of the cause of their ownmembership, they have now become institutions which are interested in the social,cultural and political development of the country. The trade unions, thus, havemade remarkable progress since their inception

(5) The origin and growth of trade unions have been i8nfluenced by a number ofideologies: The socio economic and even political movements have influencedtrade unions in one or the other way. The Marx and Engles Theory of Class Warinfluenced trade unionism in a number of ways. Their theory of class-conflict anddialectical materialism created a class of trade unionists who regarded labourorganization as absolutely essential for bringing about a revolutionary andfundamental change in the social order. The proletariat must overthrow the presentbourgeois class, capture state power and usher in a classless society because thecapitalistic class has long defensive, namely, to fight for the maintenance of theexisting wages, to demand (relatively) higher wages, and the betterment of theconditions of work.

The socialists, followed by the Webbs, consider trade unionism to be an extension ofthe principle of democracy in the sphere of industry. They require trade unions to be

NOTES



institutions for overcoming managerial dictatorship to strengthen individual labourers andto give them a voice in the determination of the conditions under which they have to work.The Webbs observed: If the democratic State is to attain its fullest and finest development,it is essential that the actual needs and desires of the human agents concerned should bethe main consideration in determining the conditions of employment. Here, then, we findthe special function of the trade union in the administration of industry.

India, too has accepted the creation of industry democracy as a prerequisite of theestablishment of a socialist society. Lenin characterized the trade union as an educationalorganization, a school administration, a school of economic management, a school ofcommunism. In all socialist countries, it has been accepted that the trade unions have totake an active part in preparing laws concerning labour, production, the way of life, cultureand the implementation of these laws. There is no doubt there is a class conflict, but it issought to be met through equality and collective agreements and joint consultations. Thestate recognizes the rights of the people to work, rest and leisure and maintenance in oldage, sickness and disability, education and equal pay of equal work. The workers andmanagers have the same common purpose, namely, to promote the interests of the socialiststate with which their own interest are bound up.

Prof. Ghosh observers, Although modern unions interest is the production problemof the industry or their concern with the broader social affairs like employment of pricestabilization, may be explained as derivations from their primary interest-maintaining orimproving or improving the conditions of their members working lives it cannot explain thekeenness with which many of the modern trade unions in different countries demand notonly the right to be consulted in production problems and workers welfare arrangementsby the management, but also a direct share in the management itself. Demand for industrialdemocracy has always influenced a section of the working class, but, in the fifties of the20th century the demand has gained particular intensity in the trade union circles of a largenumbers of countries, including some underdeveloped ones.

In fine, it can be said that the modern trade union retains four characteristics from itsearly origins:

(i) It is economically oriented(ii) It is an instrument of defense.(iii) It implies class distinction(iv) It is an outcome of an individualistic society.

1.5.3 Functions of Trade Unions

The functions of modern trade unions are wide and more comprehensive than thoseof their forerunners. Generally speaking, these functions have been termed as (i) militantof protection functions, and (ii) fraternal, ministrant of positive functions. The former functions

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aim at securing better conditions of work and employment for members through militantactivities such as strikes, gherao, etc. if there is failure of collective bargaining. The latterfunctions provide benefits to their members and support to them during strikes/lockouts orduring periods so temporary unemployment by giving them financial support out of thefunds raised with their contributions.

One author has categorized the functions of trade union as intra-mural and extra-mural functions. The former include the welfare schemes of the unions within factory premisesto improve workers conditions of employment; regulation of hours of work, and provisionof rest intervals, adequate wages, sanitation, safety and security; continuity of employment,etc. For performing theses functions, collective bargaining, negotiations and resort to astrike/lockout may be adopted. The latter include welfare schemes carried on with a viewto help workers when in need of such assistance (medical of financial) during casualties,provision of education, recreational and housing facilities; provision of social and religiousbenefits, including payment of expenses of funeral or religious ceremonies for the deceasedmembers of their dependants. All theses measures are designed to inculcate the spirit ofcooperation among the workers.

According to Samuel Gompers, Trade unions were born of the necessity of workersto protect and defend themselves from encroachment, injustice, and protect the workersin their inalienable right to higher and better life; to protect them, not only as equal beforethe law, but also in their rights to the product of labour, to protect their lives, their limbs,their health, the homes, their firesides, their liberties as men, as workers, as citizens, toovercome and conquer prejudice and antagonism, to secure them the fight to life, and theopportunity to maintain the result of their brain and brawn, and the civilization of whichthey are the founders and the mainstay.

Before we give a consolidate picture of the functions/objectives of a trade union, itwould be useful to glance at their functions in some countries

1.6 GROWTH AND DEVELOPMENT OF THE TRADE UNION MOVEMENT

The growth and development of the labour movement, and for that part of the tradeunions, in India, can be divided into following periods, each of them revealing differenttendencies that mark it from others.

1. Social Welfare period, from 1875 to 19182. Early Trade Union period, from 1918 to 19243. Left-wing Trade Unionism period, from 1924 to 19344. Trade Unions Unity period from 1935 to 19385. Second World War period from 1939 to 19456. Post independence period from 1947 to date

NOTES



1.6.1 Social Welfare period, from 1875 to 1918

The development of industries led to large scale production on the one hand andsocial evils like employment and exploitation of women and child labour and the deplorableworking conditions, the governments attitude of complete indifference in respect ofprotection of labour from such evils, on the other. Some of the worst features of industrialismmarket the history of early factory system in India. In certain respects, conditions of labourin India factories were worse than in the early factories in England. Unfortunately therewas no effective public opinion part villagers endeavoring to improve their position by atemporary alliance to industry were submissive and unorganized; and if conditions becometoo distasteful, the natural remedy was not a strike but abandonment by individuals of themill or of industry generally or they migrated to other industrial centers or want back totheir villages. There was no attempt at collective bargaining or at obtaining redress throughconcerted action. It was at this juncture that the Indian humanitarians, like Sorabjee ShapurjiBengali (1875) and N.M Lokhanday (in 1884) who themselves were factory workers,drew attention of the government towards the unhappy working conditions of the labourersand demeaned an early legislation to protect their interests. At the same time , the Lancashireinterests also forced the British government to British the employment of women and childlabour in India industries, not on any humanitarian ground, but on the was passed in 1881,and then amended in 1891 and 1911, respectively. Theses Acts introduced someimprovements in regard to shorter hours, and conditions of work for children and womenlabour.

The most noticeable features of the period, 1875-1918, were:(1) Complete absence of radicalism in the labour movement. The methods used by

the workers were characterized by a tendency to petition, memorials and seekredress of grievances by mild pressure.

These methods reflect the influence of leaders like Naryan Meghajee Lokhanday,Shapurjee Bengali, S.N.Banerjee, and others who were all political moderates and lawabiding persons. They were rather social workers desirous to serve the society throughamelioration. With theses characteristics, writes Punekar, the labour movement couldhardly tackle such problems as excessive hours of work, few holiday, irregular payment ofwages, incompetency of mill managers, inadequate fencing of machinery and the ill-ventilatedand filthy sate of many work places.

(2) The movement depended greatly on external philanthropy. Philanthropic agitationwas the fore-runner of labour movement in India and having originated inphilanthropy its motive force was sympathy rather than justice. Born ofphilanthropy, it was a movement for the workers rather than by the workers.

(3) Most of the organizations were unstable and of loose type, as they lacked definiteaims and constitution. Once the particular grievance was settled the associationwould disband.

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(4) There was little conception of permanent trade union membership, the paymentof dues or organized collective bargaining. About the Bombay mill handsAssociation, Dutt observed, The Association has no existence as an organizedbody, having no roll or membership, no funds no rule

(5) The movement developed mostly among the educated class of workers such asthe postal clerks and railway employees. It, however, did not make much progressin organized industries like textiles, mining and plantations.

(6) The early leadership was provided by three types of persons. First, intellectualssuch as lawyers, reformers, editors, teachers and preachers, who readily cameforwarded to organize and lead the workers. Second, the careerists, who saw inthe needs of workers opportunities for furthering their own ends, jumped inmasquerading as labour leaders. The third group from M.Vardarajulu Naidu,B.Shiv Rao, Annie Basant and B.G.Talak, N.M.Joshi.

1.6.2 Early Trade Union period, from 1918 to 1924

The year 1918 was an important one for the Indian trade union movement. It marketthe start of a new era, an era of growth and one in which the leadership of the trade unionswas to pass from the hands of the social workers into the hands of the politicians. Themovement could take permanent roots in the Indian soil only after the close of World WarI. This situation was due to : (i) The industrial unrest that few up as a result of graveeconomic difficulties created by war. The rising cost of leaving prompted the workers todemand reasonable wages for which purpose they united to take resort to collective action.(ii) The Swaraj movement intensified the movement, widened the gulf between the employeesand te employees and brought about a mass awakening among the workers demandingracial equality with their British employers. The new consciousness produced restlessness,discontent, a spirit of defiance as well as new ideal and aspirations. (iii) the success of theRussian Revolution of 1971 created a revolutionary wave of ideas and a new self-respectand enlightenment, and added momentum to the feeling of class-consciousness amonglabourers. (iv) The establishment of the I.L.O., in 1919, gave dignity to the working classand also an opportunity to send a delegation to the annual conference of this body. It iswas from this body that labour movement in various countries derived their inspiration,help and guidance. (v) Immediately after the war many Indian soldiers (who previouslybelonged to the working class) in the British army were demobilized and forced into thelabour market. Theses ex-soldiers who had seen workers and the working conditions inEurope found that Western workers enjoyed better conditions of living because of theirgreater solidarity and of more opportunities available to them but Indian workers weredenied these opportunities. By 1920, a large class of genuine proletariat developed. Hence,theses were new opportunities for the creation of trade unions. (vi) The non-co-operativemovement of Gandhiji during 1920-21 and his support to the demand of industrial labouralso greatly influenced the working class movement.

NOTES



1.6.3 Left-wing Trade Unionism period , from 1924 to 1934

In 1924, a violent and long-draw-out strike by unions led to the arrest, prosecution,conviction and imprisonment of many communist leaders. The AITUC emerged as therepresentative of the Indian working class. By 1927 it united 57 unions with a membershipof 150,555. the rapid growth of the trade unionism was facilitated by several factors, suchas: (i) the growth anti-imperialist national movement; (ii) the brutal violence and repressivemeasures let loose by the British government, particularly the Jallianwala Bagh massacre,Rowlatt Act, indiscriminate arrest and imprisonment of national leaders and Satyagrahis;(iii) the phenomenal profits earned by the capitalist in the face of falling real ages during thepost-war period.

1.6.4 Trade Unions Unity period - 1935 to 1938

In mid-thirties of the 20th century the state of divided labour movement was naturalthought undesirable and soon after the first split, attempts at trade union unity began to bemade through the efforts of the Roy Group on the basis of a platform of unity. Theimitative taken by All-India Railwaymens Federation (s neutral body) had shown fruitfulresults. This Federation in its conference at Bombay, formed a Trade Union Unity committeein 1932. The Committee adopted the following platform of unity. A trade union is anorange of class-struggle; its basis task is to organize the workers for advancing and defendingtheir rights and interests. Negotiation, representations and other methods of collectivebargaining must remain an integral part of the trade union activates.

It also laid down certain broad conclusions agreeable to both wings of labour-theAITUF and the INTUC. The final decision was taken in Delhi in 1933, when NationalFederation of Labour (NFL) was formed to facilitate the attempt towards unity. The AITUFand the railway unions amalgamated themselves with NFL under the name of the NationalTrade Union Federation (NTUF). The AITUC and the RTUC, however, remained alooffrom theses efforts.

1.6.5 Second World War period - 1939 to 1945

The Second World War, which broke out in September 1939, created new strains inthe united trade union movement. These strains arose because of the different politicalfactions in the AITUC related in different ways to the role of India as a protagonist in thewar. A large group of trade unionists led by the members of the Radical Democratic Party(such as M.N.Roy, J.Mehra, Miss Maniben Kera and V.B.Karnik) was of the opinion thatthe AITUC should support and participate in the anti-fascist war irrespective of the acts ofomission and commission of the British government. An equally large number (supportedby S.C. Bose, and others) were opposed to that view on the ground that it was an imperialistwar of Great Britain with which Indian had no unions with a membership of 3,00,000 andformed a new central federation known as the Indian Federation of Labour. In 1942, his

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Federation was recognized by the government as an organ representing Indian labourclass. The IFL called : (i) for mobilization of Indian labour for conscious for securing for theworkers bare minimum of wages and amenities which the wartime conditions effort if wasaided by the Government of India, by providing large funds at the rate of Rs. 13,000 permonth. The IFL grew very rapidly and by 1944, it claimed 222 unions with a membershipof 407,773 workers.

1.6.6 Post independence period - 1947 to 2000

As pointed out earlier, when attempts to restructure the AITUC failed, those believingin the aims and ideals other than those of the AITUC separated from the organization andestablished the Indian National Trade Union Congress (INTUC) in May, 1947. the reasonfor forming a new union was expressed in the communication of G.L. Nada (the Secretaryof the H.M.S.S.) addressed to all the congress-minded trade unionists. It reads:Congressmen in general and particularly those working in the field of labour, have foundit very difficult to co-operate any longer with the AITUC which has repeatedly been adoptinga course completely disregarding, or even in opposition to the declared policy and adviceof the Indian National Congress.

The Hindustan Mazdoor Sevak Sangh convened a conference in New Delhi on May3 and 4, 1947. a resolution was adopted to set up another central organization. OnSeptember 25, 1947, the Working Committee of the Indian National Congressrecommended to all Congressmen to get those unions, which they organized and of whichthey were the members, affiliated to the newly formed Indian National Trade Union. OnJanuary 20, 1984, Sardar Vallabhbhai Patel, while addressing a labour rally at Bombay,exhorted the workers to do away with the destructive leadership of the leftists who hadbeen exploiting them for their own political ends and asked them to join the INTUC. TheCreation of the INTUC was a confession both of the failure to create favorable conditionsin the AITUC, and of the government and Congress party impatient with the leadership ofthe AITUC which had come completely under the domination of the communists.

The INTUC was formed by Hindustan Mazdoor Sevak Sangh, a creation of thePro-Gandhi wing in the Congress, who were associated with the Textile Labour Associationof Ahmedabad. The ATLA became the guiding and driving force behind the INTUC. Italso supplied 55,000 of the INTUCs intial membership of 575,000. the long experienceof the ATLA in trade union affairs also resulted in a large proportion of the INTUC leaderscoming from Ahmedabad. As Oranti puts it, Ideologically as well as administratively thebloodstream of the INTUC flows from Ahmedabad. Here the ATLA provides it with astrong membership nucleus, a rich treasury, and a cadre with a long experience in labourwork. The INTUC itself joined the International Confederation of Free Trade Unions(ICFTU) as an affiliate. The INTUC had at the time of its inception 200 unions affiliatedwith it with a membership of 575,000. it grew rapidly in strength and it had the claim of

NOTES



being recognized as the most representative central organization of organized labour inIndia. The AITUC, which for nearly 30 years had been considered as the Voice ofIndian Labour. Thus lost ist premier position. According to its sponsors, the INTUCrepresented an attempt to go to the working class with a new and fresh approach to thesolution of the problems.

The INTUC was founded for establishing an order of society which is free fromhindrances to al-round development of its individual members which fosters the growth ofhuman personality in all its aspects and which goes to the utmost limit in progressivelyeliminating social, political and economic exploitation and inequality, the profit motive andeconomic activity and organization of society and the anti-social concentration of power inany form.

Since the beginning the INTUC shared and supported the political outlook of theIndian National Congress its popular image was identified with that of the Congress, andhence, its policies are subject to directives of the Congress party. The constitution of theINTUC emphasizes democratic and peaceful methods, which are in harmony with thetradition, culture and aspirations of the people.

1.7 FUNCTIONS OF TRADE UNIONS

The functions of modern trade unions are wide and more comprehensive than thoseof their forerunners. Generally speaking, these functions have been termed as (i) militantor protection function, and (ii) fraternal, ministrant or positive functions. The former functionsaim at securing better conditions of work and employment for members through militantactivities such as strikes, gherao, etc. if there is a failure of collective bargaining. The latterfunctions provide benefits to their members and support to them during strikes/lockouts orduring periods of temporary unemployment by giving them financial support out of thefunds raised with their contributions.

One author has categorized the functions of trade union as intra-mural and extra-mural functions. The former include the welfare schemes of the unions within factorypremised to improve workers conditions of employment; regulation of hours of work, andprovision of rest intervals, adequate wages, sanitation, safety and security; continuity ofemployment, etc. For performing these functions, collective bargaining, negotiations andresort to a strike/lockout may be adopted. The latter include welfare schemes carried onwith a view to help workers when in need of such assistance (medical or financial) duringcasualties, provision of education, recreational and housing facilities; provision of socialand religious benefits, including payment of expenses of funeral or religious ceremonies forthe deceased members or their dependents. 9 All these measures are designed to inculcatethe spirit of cooperation among the workers.

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According to Samuel Gompers, Trade unions were born of the necessity of workersto protect and defend themselves from encroachment, injustice, and protect the workersin their inalienable right to higher and better life; to protect them, not only as equal beforethe law, but also in their rights to the product of labour, to protect their lives, their limbs,their health, their homes, their firesides, their liberties as men, as workers, as citizen, toovercome and conquer prejudice and antagonism, to secure them the right to life, and theopportunity to maintain that result of their brain and brawn, and the civilization of whichthey are the founders and the mainstay. 10

Before we give a consolidated picture of the functions/objectives of a trade union, itwould be useful to glance at their functions in some countries.1.8 FUNCTIONS OF TRADE UNIONS IN INDIA

As per the Indian Trade Union Act, 1926, the primary functions of a trade union areto protect and promote the interests of the workers and the conditions of their employment.They can also have other objectives, which are not inconsistent with this primary purposeor opposed to any law. In India, trade unions generally undertake the following functions:

(i) To achieve higher wages and better working and living conditions for the members.(ii) To acquire control over industry by workers.(iii) To minimize the helplessness of the individual workers by making them stand-up

unitedly and increasing their resistance power through collective bargaining;protecting the members against victimization and injustice by employers.

(iv) To raise the status of the workers as partners in industry and citizens of society bydemanding an increasing share for them in the management of industrial enterprises.

(v) To generate self-confidence among the workers.(vi) To encourage sincerity and discipline among workers.(vii) To take up welfare measures for improving the morale of the workers.

The National Commission on Labour has underscored certain basic functions to whichtrade unions have to pay greater attention such as:

i. To secure fair wages for workers.ii. To safeguard the security or tenure and improve conditions of service.iii. To enlarge opportunities for promotion and training.iv. To improve working and living conditions.v. To provide for educational, cultural and recreational facilities.vi. To cooperate and facilitate technological advancement by broadening the

understanding of workers in the issues involved in their jobs.vii. To promote identity of interests of the workers with their industry.viii. To offer responsive cooperation in improving levels of production and productivity,

discipline and high standards of quality.ix. To promote individual and collective welfare.

NOTES



Besides these basic functions of trade unions, the Commission enjoined the followingresponsibilities upon the unions:

(i) Promotion of national integration.(ii) Generally, influencing the socio-economic policies of the community through

the active participation in their formulation at various levels.(iii) Instilling in their members a sense of responsibility to industry and the community.

The First Five-Year-Plan while spelling our the role of trade unions emphasized thatthey should:

(a) Present plans to workers so as to create enthusiasm among them for the plans.(b) Exercise the utmost restraint in regard to work stoppage.(c) formulate wage demands which are attuned to the requirements of economic

development and are in keeping with considerations of social justice.(d) Assume greater responsibility for the success of the productive effort. 20

A responsible trade union should cooperate in all crucial areas so that the tempo ofgrowth, particularly in the industrial sector, can be speeded up. Thus, trade unions shouldmaintain:

(A) A reasonable degree of peace in industry: These conditions by promoting anuninterrupted flow of industrial output, adds to the national income and createsthe needed investment climate. A responsible union balances the short-termworkers gain with their long-run gain originating from a stable growth of theindustry where they are employed.

(B) Supporting technological change, i.e: to cooperate in the introduction of newtechnology, new processes, new managerial techniques etc. These technologicalchanges by promoting an increase in the productivity of the concern also boost itsefficiency and effectiveness.

(C) Accept a growth-oriented wage payment system: The adoption of growth-oriented wage system enables the management to utilize workers untappedpotential.

By extending co-operation in the above areas, the trade unions will be able to promoteindustrial growth, in particular and economic growth, in general. The improved productivitybrought about by the promotion of technological changes and better utilization of labourwould generate higher profits which can be ploughed back into industry.

In fine, we can say that the role and functions of trade unions varies from country tocountry depending on its socio-economic development, political system, extent of tradeunionism, extent of wage employment etc. In capitalist countries, they are defensive incharacter. There is generally some antagonism between the workers and the employers onbasic issues relating to wage participation. In democratic countries, besides being defensive,the trade unions also assist the Government in executing their plans for the well-being of

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the working class. In erstwhile communist countries, they were dependent on the state fortheir functioning.

The trade unions in countries like France and the Netherlands are statutorily requiredto be consulted on any draft legislation dealing with economic and social issues. In Sweden,unions participated at the highest level of planning. They are responsible for theimplementation of labour and social security legislation. In Germany and Yugoslavia, tradeunions take part in management under co-determination. In the USA and Australia, theunions are not very formal with the Government. In Britain, the role of the trade union as apartner in social control is played in an informal manner.

Here the main point is to emphasize the fact that trade unions change their outlook,functions and practices to suit the prevailing conditions.

That is why it has been said: The trade unions of to-day are not content with protectingand improving wages and conditions of labour; they concern themselves with all mattersby which the workers are likely to be affected, whether as producers or consumers, whetheras units of industrial manpower or as citizens. 21

In India, the role of trade unions has been perceived differently by the different nationalunions. For instance, according to the All India Trade Union Congress (AITUC), a tradeunion is an organization of the working class in its struggle against the all-pervading powerof the capitalist class. It has to struggle with employers in order to secure better livingand working conditions and to serve the interests of the working class in the given capitalistsociety, to mitigate the burden of exploitation. In its struggle, it used economic, political,moral and ideological means to attain its demands and objectives. The ultimate aim of thetrade union movement is to abolish capitalism and wage slavery and establish socialism inwhich not only the working class but all layers of society are freed from exploitation.22

The Indian National Trade Union Congress (INTUC) is of the view that union should:

(i) Serve their members and cater to the many-sided requirements of workers asresponsible citizens.

(ii) Plan for sustaining the interests of their members during times of industrialpeace by organizing intellectual, social, cultural and recreational activities,consumer cooperatives, credit cooperatives and co-operative housing societies.

(iii) Educate the rank and file so that the traditional agitational role should graduallybe transformed into one of understanding. The unions should be given aneffective role in the affairs of the industry.23

The Hind Mazdoor Sabha (HMS) has pointed out that if trade unions allow themselvesto be diverted from their traditional role in the name of requirements of economicdevelopment, the weaker and exploited sections of the working class will find themselvesterrorized and deprived of safeguards to an even greater extent.24

NOTES



The principal function of the trade union is the regulation of relations between theemployers (management) and employees (workmen), and also the provision of benefit toits members. In this vein, it carries out the following objectives:

(1) To organization of all eligible members under one platform.(2) To represent the workers to management in cases of disputes or differences.(3) To enter in the collective bargaining and other agreement on behalf of workers.(4) To represent workers on various participative forums.(5) To undertake various activities for the welfare of its members.(6) To provide benefit to members in case of sickness, old age, trade disputes,

unemployment, litigation and also to provide funeral expenses.(7) Furtherance of political objectives.(8) To participate in the work of any association that furthers the activities of trade

unions and its members.(9) To arrange the necessary activities for the social and moral upliftment of workers.

(10) To arrange for printing or publishing facilities for the benefit of workers.

It is to be noted that the functions undertaken by the trade unions are not static butchanges with the changes in the economic and social set up of the country. The institutionalset-up of the society in which they operate also determine the functions of the unions. Inthe initial stages, they undertake functions which are primarily concerned with safeguardingthe members interests but with the passage of time and the pace of industrialization, changein technology and the system of production create new complex problems, the functionshave been widened to meet the changing circumstances. According to Daker, Unions aimat securing economic security and betterment, industrial and social status, and the role aspolitical institution.

1.9 TYPES AND STRUCTURE OF TRADE UNIONS

Ever since the dawn of industrialization there has emerged a wide variety of unionsacross the globe. These are classed under two heads.

1.9.1 The purpose for which unions are formed.

1.9.2 Trade Unions based on their membership structure

A brief discussion of different types of unions is given below.

1.9.1 The Union Classified According to Purpose

Under this heads, normally two types of union exist. They are;

(1) Reformist (2) Revolutionary.

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1.9.1.1. Reformist Unions

These unions are those which aim at the preservation of the capitalist society and themaintenance of the usual employer-employee relationship, elimination of competitive systemof production.

They neither seek comprehensive change nor wish to destroy the existing social,economic or political structure of the State. They desire only to modify these in accordancewith what their members consider to be current modes in society. For example, they maywish to increase labours share in the increased production or they may aim at improvingworking conditions by enforcing safety measures. They may try to generate increasedpurchasing power by providing for workers various cooperative ventures, insuranceassociations and educational programmes. They generally seek to dignify labour by forcingupon the public and its leaders a recognition of the importance of labour in modern society.All these objectives, they believe, can be attained without any extensive change in thepresent economic, social and political institutions. In the USA, the unions affiliated withA.F.L. (American Federation of Labour) and the C.I.O. (Congress for IndustrialOrganization) are predominantly of this type.

They reformist unions have been sub-divided by Hoxie according to the objectives,into Business Unionism and Uplift Unionism 71 which are discussed here.

a. Business Unionism is that form of labour cooperation in which employees enterthe successful business relationships with employers. In other words, businessunions are those that are maintained primarily to represent workers in collectivebargaining with their employers. They have generally been craft-conscious ratherthan class-conscious. They are distinctively reformist which try to bring economicadvantages to their members, including increased wages and improved workingconditions. They use peaceful means to attain these ends and depend primarilyupon collective bargaining for this purpose. Such unions favour voluntary arbitration,deprecate strikes and avoid political action, but when they serve their interests,they may use the weapon of strike and resort to political action also.

b. Friendly or Uplift Unionism is idealistic in nature and aspires to elevate the moral,intellectual and social life of workers and advocates idealistic plans for socialregeneration. It emphasizes such other considerations as education, health,insurance and benefits. It is not craft-conscious but interest conscious of theworkers. It is conservative and law-abiding and employs the method of collectivebargaining, but emphasizes the need of mutual insurance and drifts easily intopolitical action, advocacy of cooperative enterprises, profit-sharing and otheridealistic plans.

1.9.1.2 Revolutionary Unions

hese unions aim at destroying the present structure completely and replacing it withnew and different institutions according to the ideals that are regarded as preferable. The

NOTES



revolutionary labour unionism generally seeks to destroy capitalist industry, to abolish thewage system and private property, to put and end to society based primarily upon competitionand individual rights, and to substitute some other system, generally socialist and communist.It is extremely class-conscious rather than trade-conscious. In the USA, the most commonexample of this type of unionism is the Industrial workers of the World (I.W.W.).

The revolutionary unionism is also of two types, namely, anarchist and political.

(i) Anarchist Unions are those unions which try to destroy the existing economicsystem by revolutionary means.

(ii) Political Unions are those which gain power through political action, the enactmentof laws eliminating the power of capital and capitalists, redistributing wealth andgiving effective power to workers.

Dr. Hoxie also enumerates a third type of union, namely, the predatory union, and theguerrilla union. Both these he had referred to as labour racketeering.

(iii) Predatory unionism does not subscribe to any ideology. It can adopt any methodwhich will deliver the goods and it sticks at nothing. Its distinguishing characteristicis the ruthless pursuit of the matter in hand by whatever means seem mostappropriate at the time, regardless of ethical and legal codes or the affect uponthose outside its own membership. It is dominated by gangsters and is a tool forthe enrichment of its leaders. It may employ business, friendly or revolutionarymethods for the achievement of its goals.

(a) A hold-up union represents a combination of unscrupulous business agents of a labourorganization with equally unscrupulous employers to thrust exorbitant prices uponcustomers. When a craft is sufficiently organized so as virtually to control the localmarket, the bosses in an agreement with employers set excessive prices for the servicesthey render to the public. The workers generally receive only a small part of the increasein charges, for their bosses and employers retain the larger portion.

(b) A guerrilla union does not believe in cooperation with employers. It aims at exploitingwhatever and whatsoever it can. It is generally not democratic but boss-ridden. Itsleaders are unscrupulous, ruthless and irresponsible, and they frequently make use ofall sorts of violence in their programmes of exploitation. This type of unionism mostlyresorts to terrorism in its efforts to enforce its demands.

A fourth type of union has also been added by the followers of Prof. Hoxie, namely,the dependent union. The existence of this type of union is dependent wholly or party onthe other unions or the employees.

1.9.2 Union Classified on the Basis of Membership Structure

The unions have also been classified according to variations in the composition oftheir members. On this basis, four types of unions have been recognized, namely, craftunions, staff unions, industrial unions, and general unions.

DBA 1748

NOTES


1.9.2.1. Craft Union

It is an organization of workers employed in a particular craft or trade or in a single ortwo or three related trades/crafts/occupations. Such organizations link together thoseworkers who have similar skills, craft training and specialization. Historically speaking, itwere the craft unions that lent stability to the trade union movement because of their relativestability in employment and higher earnings. the craft unions are mostly found amongstnon-manual employees and professional workers. The Ahmedabad Weavers Union, theKanpur Suti Mill Mazdoor Sabha, the International Wood Carvers Association and theIndian Pilots Guild are the outstanding examples of such unions. Others are the tradeunions of employees in the commercial and banking industry, government establishments,and of the journalists, teachers, engineers, actors, barbers, doctors, mechanics, etc.

Their members are generally craft-conscious rather than class-conscious. They derivetheir strength from the strategic position of their workers. Such unions are horizontal incharacter, for they enroll workers engaged in one or a single group of processes, such asspinning, weaving, warping, watch and ward; or carpenters, joiners, frame-makers.

These unions aim at safeguarding the interests of the members against the onslaughtsof employers. They may try to exploit the workers. Such unions provide only the barestminimum of ass

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