TRADE UNION

• Trade Union means a combination formed for the

purpose of regulating the relations not only between
workmen and employers but also between workmen
and workmen or between employers and employers

- Trade Union Act 1926

Trade Union
Section 2(h) of the Trade Unions Act, 1926 has defined a
trade union as
“Any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the
relations between workmen and employers, or between
workmen and workmen, or between employers and
employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes any
federation of two or more trade unions.”

Then this definition talks about three relationships. They are relationship
between the:
 Workmen and workmen
 Workmen and employers
 Employers and employers.
WHAT IS TRADE UNION
A trade union is an organised group of workers. Its main
goal is to protect and advance the interests of its members

A union often negotiates agreements with employers on

pay and conditions. It may also provide legal and financial
advice, sickness benefits and education facilities to its
members

Trade unions aim to represent the interests of people at

work and negotiate with employers for better terms and
conditions for their members
Features of trade unions
 It is an organisation formed by employees or workers.

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

casual or temporary one.

 It is formed to protect and promote all kinds of interests –economic,

political and social-of its members. The dominant interest with which
a union is concerned is, however, economic.

 It includes federations of trade unions also.

 It achieves its objectives through collective action and group effort

Objectives of Trade Union
 To improve the economic lot of employees by securing for them better wages.

 To secure better working conditions for the workers.

 To secure bonus for the employees from the profit of the concern,

 To resist schemes of the management which reduce employment, e.g., rationalisation and
automation.

 To secure welfare of employees through group schemes which give benefit to every employee.

 To protect the interests of employees by taking active participation in the management.

 To secure social welfare of the employees.

 To secure organisational stability, growth, and leadership.

 Functions of Trade Unions
Broadly speaking, trade unions perform two types of functions, viz.,
 Militant Functions. One set of activities performed by trade unions leads to the
betterment of the position of their members in relation to their employment. The aim of
such activities is to ensure adequate wages, secure better conditions of work and
employment, get better treatment from employers, etc. When the unions fail to
accomplish these aims by the method of collective bargaining and negotiations, they
adopt an approach and put up a fight with the management in the form of so-slow,
strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as
militant or fighting functions.

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

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

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

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

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

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

 Political activities. Modern trade unions also take up political

activities to achieve their objectives. Such activities may be related to
the formation of a political party or those reflecting an attempt to seek
influence on public policy relating to matters connected with the
interests of working class.
PROCEDURE OF REGISTRATION OF TRADE UNION
At least 7 members should be present for an application

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

under the Registrar of Trade Unions

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

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

registered under the Act

 Motivation to Join Unions
 Greater Bargaining Power. The individual employee possesses very little bargaining power as
compared to that of his employer. If he is not satisfied with the wage and other conditions of
employment, he can leave the job.
 Make their Voices Heard. The desire for self-expression is a fundamental human drive for most people.
Don’t you agree with that? All of us wish to share our feelings, ideas and opinions with others. Similarly
the workers also want the management to listen to them.
 Minimise Discrimination. The decisions regarding pay, work, transfer, promotion, etc. are highly
subjective in nature. I may rate you very differently as compared to your marketing teacher! Similarly the
personal relationships existing between the supervisor and each of his subordinates may influence the
management. Thus, there are chances of favoritisms and discriminations.
 Sense of Security. The employees may join the unions because of their belief that it is an effective way
to secure adequate protection from various types of hazards and income insecurity such as accident,
injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and
compel the management to invest in welfare services for the benefit of the workers.
 Sense of Participation. The employees can participate in management of matters affecting their
interests only if they join trade unions. They can influence the decisions that are taken as a result of
collective bargaining between the union and the management.
 Sense of Belongingness. Many employees join a union because their co-workers are the members of
the union. At times, an employee joins a union under group pressure; if he does not, he often has a very
difficult time at work. On the other hand, those who are members of a union feel that they gain respect
in the eyes of their fellow workers. They can also discuss their problem with’ the trade union leaders.
 Structure of Trade Unions
 Plant level Unions: The first level in the structure from below is the plant
level union. This comprises the unions in one organisation or factory. Please
note that only seven members are required to form a union. This has lead to
multiple unions in one factory. (We will discuss the details of this aspect in the
problems faced by unions in India).
 Local Level federations. This is the second level in the structure from below.
The local trade union federation holds together the plant level unions at the
local level in a particular craft and industry. These local level federations might
be affiliated to either some regional level or national level federation or these
may be independent.
 Regional level federations. These are the organisations of all the constituent
unions in a particular state or region.
 National federations. These are national level bodies to which plant level
unions, local unions or regional level unions may get affiliated. These are the
apex bodies at the top of the structure. They act as coordinating bodies. These
national federations may have their own regional or state level coordinating
bodies to which the plant level unions may get affiliated.
Problems & weaknesses of Trade Unions
 Uneven Growth. The trade unionism in India is characterised by uneven growth,
both industry-wise and area-wise. Trade unions are popular in big industries and
the degree of unionisation varies widely from industry to industry. Besides, trade
union activities are concentrated in a few states and in bigger industrial centers
mainly due to concentration of industries in those places.
 Limited Membership. The number of trade unions in India has increased
considerably. But this has been followed by the declining membership per union.
 Multiplicity of Unions. There exist several trade unions in the same
establishment. The multiplicity of unions is the result of outside leadership and
labour laws. The law permits and gives sanctity to small unions. Any seven persons
can form a union under the Trade Unions Act, 1926. This Act confers rights on
such a union. It is allowed under the Act to raise disputes, file suits, go to
conciliation and even bargain with employers. Therefore, small sections of workers
are encouraged to form separate Unions. There is no restriction on the number of
unions to be registered in one establishment.
 Outside Leadership. Trade unions in India are led largely by people who
themselves are not workers. These outsiders are politicians, intellectuals and
professionals having no experience of work in industry. Outsiders continue to
dominate the trade unions to advance their personal interests.
Problems & weaknesses of Trade Unions
 Financial Problems. The financial position of the trade unions is
weak because their average yearly income is very low and
inadequate. The subscription rates are very low. Under conditions
of multiplicity of unions, a union interested in increasing its
membership figures keeps the subscription rate unduly low. As a
result, the funds with the unions are inadequate and they cannot
undertake welfare programmes for their members. Another reason
for the weak financial position of union is that large amounts of
subscription dues remain unpaid by the workers. Besides this,
unions do not have proper staff and organisation to collect
subscriptions.

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

workers have not joined any union. Moreover, all the members of
the trade unions do not show interest in their affairs. The
attendance at the general meetings of the unions is very low.
Under such circumstance, trade unionism cannot be expected to
make much progress.
 Suggestions for the development Unions
 One Union in One Industry: Multiplicity of unions in the same plant leads to inter-
union rivalry that ultimately cuts at the root of the trade union movement. It weakens
the power for collective bargaining and reduces the effectiveness of workers in securing
their legitimate rights. Therefore, there should be only one union in one industry.
 Paid Union Officials: Generally, the trade unions avail the services of the honorary
workers due to lack of funds. The practice should be stopped because honorary office
bearers cannot do full justice to the task entrusted to them because of lack of time at
their disposal. Suppose that you are asked to do something in the office, which requires a
lot of responsibility. You are not offered any thing in return. Of course the motivational
levels will come down unless and until you are a very passionate or a committed person.
The same applies to the officials of the unions. Therefore, paid union officials should be
employed who are persons of proven integrity and who are able to evaluate the demands
of workers so that they may negotiate with employers on equal footing.
 Development of Leadership from Within: It is of crucial importance that trade unions
are managed by the workers, and not by outsiders. Leadership should be developed from
within the rank and file of the workers.
 Recognition of Trade Unions. Till recently, the employers refused recognition to the
trade unions either on the basis that unions consisted of only a minority of employees or
two or more unions existed.
Criticism of Trade Unions
 Lack of education makes the workers narrow-minded, and prevents them from
taking long-term views. Thus, anything, which does not result in an immediate
reward, becomes unattractive to them. This attitude is responsible for many strikes
and lock-outs in industrial concerns.

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

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

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

 By undue insistence on the payment of standard rates of wages, they have only
leveled down the earnings of the efficient workers.
WHAT IS TRADE UNION MOVEMENT
 The trade union movement started after 1918, when the workers formed their
associations to improve their conditions. It is, thus, a part of the ‘labour
movement’, which is a much wide term

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

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

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

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

country have been more or less the same

 The development of trade unionism in India has had a checkered history and
a stormy career
TRADE UNION MOVEMENT
GROWTH
Social Welfare Period (1875-1918)
 The development of industries led to large-scale production on the one hand and social
evils like employment and exploitation of women and child labour and the deplorable
workable conditions, the government’s attitude of complete indifference in respect of
protection of labour from such evils, on the other.

Early Trade Union Period(1918-1924)

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

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

Left-Wing Unionism Period (1924-1934)

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

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

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

Second World War Period (1939-1945)

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

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

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

 As pointed out earlier, when attempts to restructure the AITUC failed, those believing
in the aims and ideals other than those of the AITUC separated from the organization
and established the Indian National Trade Union Congress (INTUC) in May, 1947
HISTORY OF TRADE UNION
The first trade union was started in 1877 in Nagpur
It was this labour protest on an organized scale, through the
support of some philanthropic personalities, that organized
labour unions came to be formed
The setting up of large-scale industrial units, created conditions
of widespread use of machinery, new lines of production, and
brought about changes in working and living environment of
workers, and concentration of industries in large towns
The first Factory’s Act was passed in 1881 by N.M. Lokhode
In 1919 Madras Labour Union was the first Union in India to be
formed and established by B. P. Vadia
Bombay Trade Union formed in 1975 under the leadership of
Sorabjee Shapurjee Bengatee
Names and details of some Unions
in India
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC
- LS)
The Indian National Trade Union Congress

Origin:

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

Objectives:

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

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

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

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

full participation in that control;
All-India Trade Union Congress (AITUC)

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

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

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

Objectives:

 The objectives of the UTUC are:

 to establish a socialist society in India;

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

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

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

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

 to bring about unity in the trade union movement.

Bhartiya Mazdoor Sangh (BMS)

Origin:

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

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

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

 labourise the industry;

 industrialize the nation;

National Front of Indian Trade Unions (NFITU)
Origin

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

Objectives:

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

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

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

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

Objectives:

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

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

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

 The CITU fights against the repressive policy of the government towards the democratic and trade
union movement;
 CRITICISMS
Political Affiliations

 As regards leadership, all the four organizations have their political affiliations,
and the leadership, therefore, lies in the hands of the politicians, and not in those
of the working class, which is yet illiterate and backward to wield any influence.

 The AITUC is pro-communist. It is led by the Right CPI. Its attitude towards the
government is not entirely hostile, but of course highly critical of the government.

 The UTUC is radical, non-communist and anti-INTUC. It is led by some

independent trade union leaders, the Forward Block and the Revolutionary
Socialist Party.

 On the international level, the INTUC is affiliated to the International

Confederation of Free Trade Unions (ICFTU) – an organization mainly supported
by the Anglo American block; while the AITUC is affiliated to the World Federation
of Trade Unions (WFTU), supported by the Communist block.
CONCLUSION
Trade Union is an important factor of the current
society, as it safeguards the basic interest and needs
of both the employees as well as employers, by giving
better terms and conditions of employment, secured
jobs, better wages, favorable working environment
which in turn leads to desired profitability.