trade union final session

8/7/2019 trade union final session

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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 asAny combination, whether temporary or permanent,

formed primarily for the purpose of regulating the

relations between workmen and employers, orbetween workmen and workmen, or betweenemployers and employers, or for imposing restrictiveconditions on the conduct of any trade or business,and includes any federation of two or more trade

unions.


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1. This definition talks about three relationships. They are

relationship between the:y Workmen and workmeny Workmen and employersy Employers and employers.

In other words, Trade unionis an association either of employees

or employers or ofindependent 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 forindividual)benefits to members. Collective strength offers a sort ofinsurance cover to members to fight against irrational,arbitrary and illegal actions of employers.


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y 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

y To quote Sidney and Beatrice," A trade union, is a c ontinuous

association of wage earners for the purpose of maintaining and improving

the conditions of their working lives.y 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.y 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.


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Features of trade unionsy It is an organization formed by employees or workers.

yIt is formed on a continuous basis. It is a permanent body and not acasual or temporary one.

y It is formed to protect and promote all kinds of interests economic, political and social-of its members. The dominantinterest with which a union is concerned is, however, economic.

y It includes federations of trade unions also.

y It achieves its objectives through collective action and group effort


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What do unions do?y The main service a union provides for its members is

negotiation and representation. There are otherbenefits people get from being members of tradeunions.

y Negotiation

y Representation

y Information and advice

y Member services


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NegotiationNegotiation is where union representatives discuss with

management issues which affect people working in anorganisation. The union finds out the members' views andrelays these views to management. There may be adifference of opinion between management and unionmembers. 'Negotiation' is about finding a solution to thesedifferences. This process is also known as 'collective

bargaining'.In many workplaces there is a formal agreement betweenthe union and the company which states that the union hasthe right to negotiate with the employer. In theseorganisations, unions are said to be 'recognised' for

'collective bargaining' purposes.Pay, working hours, holidays and changes to workingpractices are the sorts of issues that are negotiated. Peoplewho work in organisations where unions are recognised arebetter paid and are less likely to be made redundant thanpeople who work in organisations where unions are not

recognised.


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RepresentationTrade unions also represent individual members when they

have a problem at work. If an employee feels they are beingunfairly treated, he or she can ask the union representative tohelp sort out the difficulty with the manager or employer.If the problem cannot be resolved amicably, the matter maygo to an industrial tribunal. Industrial tribunals make sure thatemployment laws are properly adhered to by employees and

employers. They are made up of people outside the workplacewho listen to the employer's and the employee's point of viewand then make a judgement about the case. People can asktheir union to represent them at industrial tribunals. Mostcases that go to industrial tribunals are about pay, unfair

dismissal, redundancy or discrimination at work.Unions also offer their members legal representation. Normallythis is to help people get financial compensation for work-related injuries or to assist people who have to take theiremployer to court


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Unions have a wealth of information which is useful topeople at work. They can advise on a range of issueslike how much holiday you are entitled to each year,

how much pay you will get if you go on maternityleave, and how you can obtain training at work.

Information and advice


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Member servicesDuring the last ten years, trade unions have increased the

range of services they offer their members. Theseinclude:Education and training - Most unions run training coursesfor their members on employment rights, health andsafety and other issues. Some unions also help memberswho have left school with little education by offering

courses on basic skills and courses leading to professionalqualifications.Legal assistance - As well as offering legal advice onemployment issues, some unions give help with personalmatters, like housing, wills and debt.

Financial discounts - People can get discounts onmortgages, insurance and loans from unions.Welfare benefits - One of the earliest functions of tradeunions was to look after members who hit hard times.Some of the older unions offer financial help to theirmembers when they are sick or unemployed


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METHODS USED BY TRADE UNIONS TO

ACHIEVE THEIR OBJECTIVES

y Collectivebargaining

y

Legal enactments/political actions

y Strikes

y Bandhs

y Gheraos

y Boycott

y Lockout

y Picketing


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Role of trade unions in industrial

disputesy Most 'collective bargaining' takes place quietly and agreements are

quickly reached by the union and the employer. Occasionallydisagreements do occur and the two sides cannot agree. In these casesthe union may decide to take industrial action.

y 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 tofollow when they take industrial action.

y A strike is only called as a last resort. Strikes are often in the news butare rare. Both sides have a lot to lose. Employers lose income becauseof interruptions to production or services. Employees lose their salariesand may find that their jobs are at risk.

y Usually employers and employees will go to some lengths to avoid thecosts of strike action to both groups.

y The Advisory, Conciliation and Arbitration Service (ACAS) is oftenused to help find a solution to a dispute which is acceptable to bothsides.


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Causes of Industrial Disputes


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Factors that necessitated the

origin of trade unions

1. Separation between capital and labour

The capitalist mode ofindustrializationinvolved a

separation between the ownership of capital and labour, both

of which were necessary for the production ofgoods andservices.

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 ofindustrialization

under early capitalism.


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2. Philosophy of Laissez-Faire: The dominant philosophy ofLaissez-faire and economic liberalism prevented the state from

coming to the rescue of the suffering mass of industrialworkers.

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, hehad neither the bargaining skill, nor the trade acumen to havehis demands met.

4. Individual dispensability but collective indispensability

The individual workman was dispensable to the employer but

workmen, collectively, were indispensable to him. Thisrealization of collective indispensability was a watershed in thehistory of the working class. In it lay the roots of collectivebargaining which later resulted in trade unionism.


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Objectives of Trade UnionsTrade unions are formed to protect and promote the interests of theirmembers. Their primary functionis to protect the interests of workers againstdiscrimination and unfair labor practices. Trade unions are formed to achievethe 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 theirimplementation.

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


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Deery (1989) gave 4 goals of unions:

y Services to members eg. insurance, legal aid

y Improved employment conditions

y Job security

y

Political objectivesByrt (1985) identified 3 broad goals of unions:

y Economic higher wages by arbitration and collectivebargaining

y Political through ALP in Australiay Job control by

y a) controlling access

y b) controlling conduct of work


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c) Discipline:

Trade unions not only conduct negotiations in respect of the

items with which their working conditions may be improvedbut also protect the workers from the clutches of managementwhenever workers become the victims of managementsunilateral acts and disciplinary policies. This victimization maytake 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 improperimplementation ofpersonnel policies in respect of recruitment, selection,promotions, transfers, training, income security etc.

e) Welfare:As stated earlier, trade unions are meant for the welfare ofworkers. Trade union works as a guide, consulting authorityand cooperates in overcoming the personnel problems ofworkers


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f) Employee-employer relation:

g) Negotiatingmachinery:

Trade union being a party fornegotiations, 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 ofproduction and productivity, discipline and improve quality of

work life.


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Objectives of Trade Uniony To improve the economic lot of

employees by securing for them betterwages.

y To secure better working conditions forthe workers.

y To secure bonus for the employees fromthe profit of the concern,

y To resist schemes of the managementwhich reduce employment, e.g.,rationalizationand automation.

y To secure welfare of employees throughgroup schemes which give benefit to

every employee.y To protect the interests of employees by

taking active participation in themanagement.

y To secure social welfare of theemployees.

y

To secure organizational stability,growth, and leadership.


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Functions of Trade UnionsBroadly speaking, trade unions perform two types of functions, viz.,

y Militant Functions. One set of activities performed by trade unions leads tothe betterment of the position of their members in relation to theiremployment. The aim of such activities is to ensure adequate wages, securebetter conditions of work and employment, get better treatment fromemployers, etc. When the unions fail to accomplish these aims by the methodof collective bargaining and negotiations, they adopt an approach and put up afight 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 fightingfunctions.

y Fraternal Functions. Another set of activities performed by trade unions aimsat rendering help to its members in times of need, and improving theirefficiency. 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., schoolfor the education of children, library, reading-rooms, in-door and out-doorgames, and other recreational facilities. Some trade unions even undertakepublication of some magazine or journal. These activities, which may be calledfraternal functions, depend on the availability of funds, which the unions raiseby subscription from members and donations from outsiders, and also on theircompetent and enlightened leadership.


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Functions of Trade UnionsAnother broad classification of the functions of unions may be as follows

y Intra-mural activities. These consist of those functions of the unionsthat lead to the betterment of employment conditions such asensuring adequate wages and salaries, etc. for which the methods adoptedmay be collective bargaining, negotiations, strikes, etc.

y Extra-mural activities. These activities help the employees to maintainand improve their efficiency or productivity, e.g., measures intendedto foster a spirit of cooperation, promote friendly relations, and diffuseeducation among members and various other types of welfare measures.

y Political activities. Modern trade unions also take up politicalactivities to achieve their objectives. Such activities may be related to theformation of a political party or those reflecting an attempt to seekinfluence on public policy relating to matters connected with theinterests of working class.


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Webbs Theoryy Key proponent: Sydney and BeatriceWebb (1894)

y Theory: (first history of unionism in UK)

y Unions restrict access to trades and protect going wagerates

y The reason unions form:

y 1) worker financial insurance against hard times:

accidenty unemployment strikes etc.

2) collective bargaining with employers3) political pressure group for better laws for working

people


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y Unions justify behaviour as

y 1) protecting jobs rights like property rights

y 2) collective bargaining as part of competitivecapitalist system

y 3) political pressure on state for common good eg.minimum wage

y Webbs theory assumes trade unions are a legitimateinstitution in a

y developing liberal democracy, and is less relevant toAsia


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Marxist Theory of Class Conflicty Key proponent: Hyman (1975)

y Theory: Based on theory of class conflict, inherent

conflict between labour and capitaly Lenin believed true purpose of trade unions was to

raise political consciousness of workers leading torevolutionary overthrow of capital system

y Marxist analysis in decline since collapse of Sovietsystem


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Unions AsMonopolistic

Organisationsy Key proponent: Freeman and Medoff (1984)

y Theory: Collective voice & Monopolistic Organisation

y Unions are not simply collective voice labour marketinstitutions evident

y in all bargaining and communication activities withmanagement

y Unions behave as monopolistic organisations evidentin controlling

y wages, employee numbers, conditions and methods ofwork


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Perlmans Theoryy Key proponent: Perlman (1949)y Theory: business unionism (from UK, German,

Russian and US unions )

y Unions and collective bargaining essential parts of the

democratic society.y Business classes risk-takers. Manual workers security /

scarcity conscious.

y Role of unions was to establish job rights.

y Unions accept legitimacy of capitalism, but wish tolimit its excesses.

y Intellectuals seek to influence unions to their vision ofa better society


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Based on 4 countries studied, 3 factors controlled unionactivity capitalisms power to resist the demands of

organized labour extent of the influence of unionintellectuals maturity in the outlook of the tradeunions.

Problems: Perlmans business unionism does notexplain socialism and political activism (ALP) ofAustralian unions. Also Australias centralized orcompulsory arbitration system (the Conciliation andArbitration Act of 1904) differs from other countries.


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Theories of Trade Union

Movementy Karl Marx: Classless society approach

y Trade unions are natural outcomes of capitalism and

can be used to destroy capitalist class.

y Sydney and Beatrice Webb:Socialist pattern

y TUs are means to achieve industrial democracy in

which worker is given say in running industry. Onlypolitical democracy will not do.

y Freedom of association, opportunity etc.


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Robert Hoxie :Social- Psychological approachy Difference of environment causes different unions to develop.He identifies 4 types

y i. Business Unionsm: trade conscious , collective bargaining usage -reliance on strike,improvement in working conditions and ages.

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

yIii.Revolutionary Unionism : class conscious, reject private ownership and condemnwage system, violent means such as strike , sabotage, boycotts used.

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


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y Mahatma Gandhi : Trusteeshipy To increase wealth using ones talent and deploying surplus wealth in

public causes.

y To increase employees internal strength , to work conscientiously andto take from the employer no more than what is rightfully due tolaborers.


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FUNCTION OF TRADE UNIONy To secure for workers better wages

y To safeguard security of tenure and improve conditions of service

y To increase opportunities for promotion and training

y To improve working and living condition

y To provide for educational cultural and recreational facilities

y To promote identity of interests of the workers

y To offer improved level of production and productivity discipline and

high standard of quality

y To promote individual and collective welfare


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Trade Union StructuresCRAFT UNION Formed of workers belonging to the same craft, occupation or

specialization irrespective of the industry in which they are employed.

E.g. Indian Pilots guild.

Electricians though working in different industries may form a union ofelectricians only


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INDUSTRIAL UNION :y Organized on the basis of an industry rather than a craft

y All the workers-skilled,semi-skilled and unskilled engaged in aparticular industry organize

y E.g

y Labor force of a cotton textile factory decides to form a union of workersof different crafts

y Rashtriya Mill Mazdoor Sabha,Tata workers Union


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GENERALUNION

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 andcrafts of Jamshedpur


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Classification according to

agreementy Business enterprise classified according to degree to which membership in them

is condition for employment

y 1. CLOSED SHOP

y Agreement with the union that a worker must be themember of the union at the time of employment andcontinuos to do so in order to retain his job elseservices are terminated.

y Closed to non-unionists

y Employers freedom to recruit is limited


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2. UNION SHOP

Agreement with the union that a worker would become amember of the union within a specified period of hissecuring employment and would continue hismembership to retain his job.

Employer free to recruit


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y OPEN SHOP

y Membership in a union is in no way compulsory either

before or after employment

y AGENCYSHOP:

y When an employee who is not a union member has to

pay the union a sum equal to subscription


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MAINTENANCESHOP:

y Where an employee, on choosing to become a member

of a union, is obligated to continue his membership ofthat union throughout his tenure of employment withthat employer


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Structure of Trade Unionsy 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 thatonly seven members are required to form a union. This has lead to multipleunions in one factory. (We will discuss the details of this aspect in the problemsfaced by unions in India).

y 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 mightbe affiliated to either some regional level or national level federation or thesemay be independent.

y Regional level federations. These are the organisations of all the constituentunions in a particular state or region.

y National federations. These are national level bodies to which plant level

unions, local unions or regional level unions may get affiliated. These are theapex bodies at the top of the structure. They act as coordinating bodies. Thesenational federations may have their own regional or state level coordinatingbodies to which the plant level unions may get affiliated.


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Names and details of some Unionsin India


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TRADE UNIONS IN INDIAy The Indian workforce consists of 430 million workers,

growing 2% annually. The Indian labor markets consist ofthree sectors:

y

The rural workers, who constitute about 60 per cent of theworkforce.y Organized sector, which employs 8 per cent of workforce,

andy The urban informal sector (which includes the growing

software industry and other services, not included in theformal sector) which constitutes the rest 32 per cent of theworkforce.


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Trade UnionMovement in the early

yearsy Bombay Mill Hands Association was followed by:

Amalgamate

d society of

railway

Servantsin India,

1897

The

Printers

Union of

Calcutta,

1905

The

Madras and

Calcutta Postal

Union, 1907

The Kamgar

Hitwardhak

Sabha 1910


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Emergence and Development of TUy First cotton mill in India was established in 1851 in Bombay

and the first jute mill in 1855 in Bengal

y First FactoryCommission was appointed in Bombay in the

year 1875y First Factories Act was passed in 1881

y Was dissapaointing

y Second FactoryCommission was appointed in 1884

y

Mr. Lokhandey organised a conference of workers in Bombayand drew up a memorandum signed by some 5,300 to presentto the Commission

y This was the first organized effort by workers in India

y However, no roll or membership, no funds and no rules.


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Emergence and Development of TU

Contd.y Printers Union, Calcutta - 1905

y Kamgar Hitwardhak Sabha - 1910

y Social Service League 1910y The amalgamated societyof railway servants ofIndia

and Burma

y Were essentially labour welfare organisations and may

hardly be regarded as modern trade unionsy Marjory called as Social welfare period


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Present Central Trade Union Organizations

y All India Trade Union Congress (AITUC)y Bharatiya Mazdoor Sangh (BMS)y Centre ofIndian Trade Unions (CITU)y Hind Mazdoor Kisan Panchayat (HMKP)y Hind Mazdoor Sabha (HMS)y Indian Federation of Free Trade Unions (IFFTU)y Indian National Trade Union Congress (INTUC)y National Front ofIndian Trade Unions (NFITU)y

National Labor Organization (NLO)y Trade Unions Co-ordination Centre (TUCC)y United Trade Union Congress (UTUC)y United Trade Union Congress - Lenin Sarani (UTUC - LS)


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Some Figures of Trade Unions


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All-India Trade Union Congress (AITUC)

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

Objectives:

y toestablish a socialist state in India;

y to socialize and nationalize means of production, distribution and exchange;

y to improve the economic and social conditions of the working class;

y to watch, promote, and further the interests, rights, and privileges of the workers in allmatters relating to their employment;

y to secure and maintain for the workers the freedom of speech, freedom of press, freedomof association freedom of assembly, the right to strike, and the right to work andmaintenance;

y toco-ordinate the activitiesof the labour unions affiliated to theAITUC;

y to abolish political or economic advantage based on caste, creed, community, race orreligion;

y tosecure and maintain for the workers the right to strike


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The Indian National Trade Union Congress

Origin:

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

Objectives:

y To establish an order of society which is free from hindrances to an all-rounddevelopment of its individual members, which fosters the growth of human personalityin 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 economicactivity and organization of society and the anti-social concentration of power in any

form;

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

y to secure increasing association of workers in the administration of industry and theirfull participation in that control;


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United Trade Union Congress (UTUC)

Origin:

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

Objectives:

y

Theobjectivesof the UTUC are:

y toestablish a socialist society in India;

y to establish a workers and peasants state in India;

y to nationalizeand socialize the means of production, distributionand exchange;

y to safeguard and promote the interests, rights, and privileges to the workers in allmatters, social, cultural, economicand political;

y to secure and maintain workers freedom of speech, freedom of press, freedom ofassociation, freedom of assembly, right to strike, right to work or maintenance and theright to social security;

y to bring about unity in the tradeunion movement.


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Bhartiya Mazdoor Sangh (BMS)

Origin:

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

Objectives:y to establish the Bhartiya order of classless society in which there shall be secured full

employment;

y to assist workers in organizing themselves in trade unions as medium of service to themotherland irrespective of faiths and political affinities;

y the right tostrike;

y to inculcate in the minds of the workers the spirit of service, co-operation anddutifulness and develop in them a sense of responsibility towards the nation in general

and the industry in particular.y The BMS is a productivity-oriented non-political trade union. Its ideological basis is the

triple formula:

y nationalize the labour;

y labourise the industry;

y industrializethe nation;


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National Front ofIndian Trade Unions (NFITU)

Origin

This union was founded in 1967, with the claim that this trade union of India is notcontrolled by any of the political party, employers or government.

Objectives:

y 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 thegovernment, to further the cause of labour and that of national solidarity security anddefence of India, and to make the working people conscious of their right as well as ofobligations in all spheres of life;

y to secure to members of trade unions full facilities of recognition and effectiverepresentation of interests of workers and to ensure for the working people fairconditions of life and service and progressively to raise their social, economic andcultural stateand conditions;

y to help in every possible way member trade unions in their fight to raise real wages of theworkers;

y to endeavour to secure for members of affiliated trade unions adoption of progressivelegislation for their welfare and to ensure the effective environment of the rights and

interestsof members of affiliated trade unions and for the working people in general.


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Centre ofIndian Trade Union (CITU)

OriginThis union was formed in 1970 when as a result of the rift in the AITUC, some members oftheCommunist party seceded. About the objectives of the CITU, its constitution says:

Objectives:

y The CITU believes that the exploitation of the working class can be ended only bysocializing all means of production, distribution and exchange and establishing a

socialist state, that is, it stands for the complete emancipation of the society from allexploitation.

y The CITU fights against all encroachments on the economic and social rights of theworkers and the enlargement of their rights and liberties including the right to strike, forwinning, defending and extending the freedom of the democratic trade unionmovement.

y 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 workingclass; (b) nationalization of all concerns owned byIndian monopolists and big industrywho garner huge profits at the expenses of the workers, who exploit the people bypegging prices at a high level and who dictate the anti-labour and anti-people policies ofthe government.

y The CITU fights against the repressive policy of the government towards the democraticand trade union movement;


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WHAT IS TRADE UNION MOVEMENTy The trade union movement started after 1918, when the workers formed their

associations to improve their conditions. It is, thus, a part of the labourmovement, which is a much wide term

y A trade union is an essential basis of a labour movement for without which onecannot exist, because trade unions are the principal schools in which theworkers learn the lesson of self-reliance and solidarity

y Trade Unionism in India has been the natural out come of the modern factorysystem

y The main elements in the development of trade unions of workers in everycountry have been more or less the same

y The development of trade unionism in India has had a checkered history and astormy career


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PROCEDUREOF REGISTRATIONOF TRADE UNION

y At least 7 members should be present for an application

y I

t should in a prescribed form ,fees and should be registered underthe Registrar of Trade Unions

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

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

registered under the Act


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How are trade unions financed?y Each trade union member pays a subscription. The amount

varies from union to union and is normally set at differentlevels according to the amount people earn. It is usually

between 5 and 8 a month. Some unions reduce the feesfor unemployed members.

y People pay their subscription fees in different ways. It maybe collected by direct debit from a bank account, deducteddirectly from wages or paid in cash or by cheque to a union

representative or full time official.y In exchange, members receive the benefits of

representation, negotiation, protection and other servicesfrom their union.


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How has trade union membership

changed in recent years?y In 2003, union membership in Britain, estimated from the

Labour Force Survey, was 7.42 million. The proportion ofall employees who were union members was 29.1%. Theseare the overall figures but union membership variesenormously by industry and by the types of jobs thatpeople do.

y Trade union membership has declined over the last twodecades. In 1979 13.3 million people were members of trade

unions and the proportion of employees who were unionmembers stood at 55%. A comparison of membership datafor the period 1992-2003 can be seen on the ONS Web site.


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Trade unions negotiate pay and conditions for people in a wide rangeof occupations.There are several reasons for this fall in membership, including:a dramatic fall in the number of jobs in manufacturing industrieswhere union membership was traditionally highlarger numbers of unemployed peoplea fall in traditional full time employment and an increase in parttime and temporary workers who are less likely to join unionsan increase in the proportion of the workforce employed by smallcompanies where it is often difficult for unions to organisehostile legislation - the previous Conservative governmentintroduced laws which make it more difficult for unions to operate

and keep their members..


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However, trade union membership is still quite high and manypeople are employed in workplaces where unions are recognisedby management for negotiating pay and conditions ofemployment.There is also evidence that the decline in union membership isbeginning to slow up. The TUC has launched a major recruitmentdrive called 'New Unionism - Organising for Growth' and manyunions are stepping up their efforts to recruit in new industriesand jobs. More and more people are turning to trade unionsbecause they want the protection they can provide


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TRADE NION MOVEMENT

GR

OWT

Trade Unions Unity Period (1935-1938)

y In mid-thirties the state of divided labour movement was natural thoughtundesirable 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.

Second World War Period (1939-1945)

y The Second World War, which broke out in September 1939, created new strains in theunited trade union movement.

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

the Indian Federationof Labour

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

y As pointed out earlier, when attempts to restructure the AITUC failed, those believing inthe aims and ideals other than those of the AITUC separated from the organization andestablished the Indian National Trade Union Congress (INTUC) in May, 1947


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TRADE UNIONS ACT

1926y Trade Unions Act , 1926 provides for the

registration of the Trade Unions with theRegistrars of Trade Unions of their territory. Anyseven or more members of a trade union bysubmitting their names to the registrar of tradeunions and otherwise complying with theprovisions of the Act with respect to registration

may apply for the registration of the Trade Unionunder the Trade Unions Act. The Act givesprotection to registered trade unions in certaincases aga inst c iv i l and cr imina l ac t ion .


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MAIN PROBLEMS OF

TRADE UNIONSy Uneven growth

y Small size of the union

y

Financial weaknessy Multiplicity of unions &

inter-union rivalry

y Leadership issues

y Politics in unionsy Problems of recognition

of trade union


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Problems for Trade Union Growth

y Off-Centering Labour

y Segmentation ofWorkforce

y Core / Periphery

y

Employment Instabilityy Investment Attraction

y Individualisation of Labour Relations

y Labour Cost Cutting

y Leadership Credibility/ Inside vs. Outside leadershipy Failure ofInstitutions

y Emergence of Non-union firms/ E-union/ Cyber-union


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Criticism of Trade Unions

y 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.

y Trade unions may not welcome rationalisation and improved methods of productionfor the fear that some of the workers will be put out of work. Therefore, they resort togo slow policy that retards industrial progress.

y When labour unions strike because of illogical grounds, incalculable losses occur toproducers, community and the nation. These are harmful to the workers also. Theysuffer because of the loss of wages.

y They create artificial scarcity of labour by demanding that only union personnelshould be employed.

y By undue insistence on the payment of standard rates of wages, they have only leveleddown the earnings of the efficient workers.


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CONCLUSIONy Trade Union is an important factor of the current

society, as it safeguards the basic interest and needs ofboth the employees as well as employers, by givingbetter terms and conditions of employment, securedjobs, better wages, favorable working environmentwhich in turn leads to desired profitability.


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Problems & weaknesses of Trade Unionsy Financial Problems. The financial position of the trade unions is

weak because their average yearly income is very low andinadequate. The subscription rates are very low. Under conditions ofmultiplicity of unions, a union interested in increasing its

membership figures keeps the subscription rate unduly low. As aresult, the funds with the unions are inadequate and they cannotundertake welfare programmes for their members. Another reasonfor the weak financial position of union is that large amounts ofsubscription dues remain unpaid by the workers. Besides this,unions do not have proper staff and organisation to collectsubscriptions.

y IndifferentAttitude of Workers. In India, a large number ofworkers have not joined any union. Moreover, all the members ofthe trade unions do not show interest in their affairs. Theattendance at the general meetings of the unions is very low. Undersuch circumstance, trade unionism cannot be expected to make

much progress.


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Motivation to Join Unionsy Greater BargainingPower. 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.

y Make their Voices Heard. The desire for self-expression is a fundamental human drive for most people.Dont you agree with that? All of us wish to share our feelings, ideas and opinions with others. Similarlythe workers also want the management to listen to them.

y Minimise Discrimination. The decisions regarding pay, work, transfer, promotion, etc. are highlysubjective in nature. I may rate you very differently as compared to your marketing teacher! Similarly thepersonal relationships existing between the supervisor and each of his subordinates may influence the

management. Thus, there are chances of favoritisms and discriminations.

y Sense ofSecurity. The employees may join the unions because of their belief that it is an effective way tosecure 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 themanagement to invest in welfare services for the benefit of the workers.

y Sense ofParticipation. The employees can participate in management of matters affecting theirinterests 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.y 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 verydifficult time at work. On the other hand, those who are members of a union feel that they gain respect inthe eyes of their fellow workers. They can also discuss their problem with the trade union leaders.


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Suggestions for the development Unionsy 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. Itweakens the power for collective bargaining and reduces the effectiveness ofworkers in securing their legitimate rights. Therefore, there should be only oneunion in one industry.

y Paid Union Officials:Generally, the trade unions avail the services of the honoraryworkers due to lack of funds. The practice should be stopped because honoraryoffice bearers cannot do full justice to the task entrusted to them because of lack oftime 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. Ofcourse the motivational levels will come down unless and until you are a verypassionate 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 maynegotiate with employers on equal footing.

y Development ofLeadership from Within:It is of crucial importance that tradeunions are managed by the workers, and not by outsiders. Leadership should bedeveloped from within the rank and file of the workers.

y 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 ofemployees or two or more unions existed.


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TRADE UNION RECOGNITIONy Definition ofRecognition

y A union must be recognised before it may effectively

represent any employees15.y Once a union is recognised it serves as the bargaining

agent for the workers in a particular bargaining unit.

y An employee may not circumvent the union because

recognition entails willingness to negotiate with aview to striking a bargain and this involves a positivemental decision.


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N f r r c g itiy Recognition of trade union is the backbone of collective bargaining. It

has been debated time and again. But inspite of the government statedpolicy to encourage trade union there is no enforced central legislationon this subject. There are however voluntary code of discipline andlegislations in some states. In the absence of any central legislation,management in several states have refused to recognize trade unionmainly on five grounds:

(1) most of the office bearers of the union were outsiders;

(2) the trade union keeps outsiders disapproved by management andparticularly 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 thesame would amount interference in the functioning of the TradeUnions. Be that as it may, the refusal by employers to recognize orbargain with unions has been the major obstacle to the healthy growth

of trade union and collective bargaining.


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Role ofILO in recognition of Trade Unions

y

ILO Convention No. 87 on freedom of association and protection ofthe rights to organise in 1948 and Convention No. 98 concerning theright to organise and bargain collectively in 1949.

y Workers and employers, without distinction whatsoever, will have the

right to establish and, subject only to the rules of the organizationconcerned, to join organization concerned, to join organization of theirown choosing without previous authorization. The Conventionempowers the workers organization to frame their constitution, to electrepresentatives and among others to organize their activities. Toestablish and join federation, Convention, requires that workers and

employers and their respective organizations, like all other, will respectthe law of the land. The law of the land shall not be such as to impairnor shall it be so applied as to impair, the guarantees provided for inthe constitution.


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y The ILO confers protection to workers against acts of anti-union discrimination in respect of their employment. Theprotection is, directed in respect to acts calculated to:

y (1) make the employment of a worker subject to thecondition that he will not join a union or may relinquishtrade union membership; and

y (2) cause the dismissal, of or otherwise prejudice a worker

by reason of union membership or because of hisparticipation in union activities outside working hours.


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Rights of Trade Unions in Indiay The trade union rights in our country are found scattered in various

laws, voluntary measures like the Code ofDiscipline and theconstitutional provisions under the Constitution ofIndia, art. 19. Thesetrade union rights may be divided into the following categories:

(1) right of freedom of speech and expression which includes right ofpicketing 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.


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Right to form a Trade Union A

Constitutional Right of citizens ofIndiay The right to form and continue a trade union is a

fundamental right guaranteed under the ConstitutionofIndia, art. 19(1)(c), which may only be subjected to

y reasonable restrictions in the public interest asprovided by art.


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Trade Unions in Japany 1930s - Military regime in destroyed independent

unions: state controlled.1949 - PostWWII independent unions re-emerged56% density

1970 union membership down to 35%1996 - 23% density, mostly men (but does not countunregistered enterprise level employee associations)

y Union decline due to: decline in manufacturing,

increase in services, rise in standard of living,enterprise loyalty/lifetime employment.

y


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y Unions largely enterprise level affiliated to largerindustrial federations, in turn to national centres.Main centre is RENGO (Japan Trade UnionConfederation) 78 industrial federations, 8 millionworkers, favours co-operative labour-managementrelations, little influence with govt.

y Few industrial disputes. Significant participation at

enterprise level.

y Very democratic. Union officials remain employeesand return to employer after term

trade union final session

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