Trade unions are voluntary organizations formed by employees to protect and promote their economic and social interests through collective action like negotiations. The key objectives of trade unions are to represent employees, negotiate with employers on issues like pay and working conditions, and provide services to members. Union membership in India and globally has declined in recent decades due to factors like a rise in the service sector and non-traditional employment. However, trade unions still play an important role in balancing the interests of employers and employees.
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Trade unions
1. Trade Unions
Organization of employees formed on a continuous basis for the purpose of
securing diverse range of benefits
Continuous association of wage earners for the purpose of maintaining and
improving the conditions of their working lives
Defines a trade union as a 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 condition on the
conduct of any trade or business, and includes any federation of two or more
trade unions (The Trade Union Act 1926)
2. Trade Unions Cont..
Trade unions are voluntary associations of employees in a particular sector,
whose aim is to negotiate with employers over pay, job security, working
hours, etc, using the collective power of its members
In general, a union is there to represent the interests of its members
(economic, political and social), and may even engage in political activity
where legislation affects their members
3. Features
1. It is an association either of employers or employees or of independent workers.
Consist of :-
Employers’ association (eg; Employer’s Federation of India, Indian paper mill
association, etc)
Friendly societies
Unions of intellectual labor (eg; All India Teachers Association)
Craft – for employees with a particular skill (eg; electricians AEEU)
Industry – for employees in particular industry (eg; coalminers NUM)
General – broad union for wide range of employees usually unskilled or semi-skilled
White collar – for clerical, professional or managerial staff (eg; KSTA (teachers))
Staff associations for employees in a particular organisation
4. Features Cont..
2. It is formed on a continuous basis. It is a permanent body and not a casual or
temporary one. They persist throughout the year
3. 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
4. It achieves its objectives through collective action and group effort. Negotiations and
collective bargaining are the tools for accomplishing objectives
5. Trade unions have shown remarkable progress since their inception; moreover, the
character of trade unions has also been changing. In spite of only focusing on the
economic benefits of workers, the trade unions are also working towards raising the
status of labors as a part of industry
5. Objectives
Representation
Trade unions represent individual workers when they have a problem at work
If an employee feels he is being unfairly treated, he can ask the union
representative to help sort out the difficulty with the manager or employer
Unions also offer their members legal representation. Normally this is to help
people get financial compensation for work-related injuries or to assist people
who have to take their employer to court
6. Objectives Cont..
Negotiation
Negotiation is where union representatives, discuss with management, the issues
which affect people working in an organization
Trade unions negotiate with the employers to find out a solution to the
differences which include Pay, working hours, holidays and changes to
working practices are the sorts of issues that are negotiated
In many workplaces there is a formal agreement between the union and the
company which states that the union has the right to negotiate with the employer
In these organizations, unions are said to be recognized for collective bargaining
purposes
7. Objectives Cont..
Voice in decisions affecting workers
The economic security of employees is determined not only by the level of
wages and duration of their employment, but also by the management’s personal
policies which include selection of employees for lay offs, retrenchment,
promotion and transfer which directly affect workers
The evaluation criteria for such decisions may not be fair. So, the intervention of
unions in such decision making is a way through which workers can have their
say in the decision making to safeguard their interests
8. Objectives Cont..
Member services
• Education and training - Most unions run training courses for their members
on employment rights, health and safety and other issues. Some unions also
help members who have left school with little education by offering courses on
basic skills and courses leading to professional qualifications.
• Legal assistance - As well as offering legal advice on employment issues,
some unions give help with personal matters, like housing, wills and debt
• Financial discounts - People can get discounts on mortgages, insurance and
loans from unions
• Welfare benefits - One of the earliest functions of trade unions was to look
after members who hit hard times. Some of the older unions offer financial
help to their members when they are sick or unemployed
9. Benefits of unions
To employers
• channel of communication
• can highlight human
resource
implications of any action
• provide ideas / information
To employees
• provide power
• provide advise
• provide services, e.g. legal
advice if dismissed
• provide protection
10. Employees’ views of what a trade union should try to do:
1994
Protect existing jobs 37%
Improve working conditions 20%
Improve pay 15%
Have more say over management’s long term plans 14%
Have more say over how work is done day by day 5%
Reduce pay differences at the workplace 4%
Work for equal opportunities for women 2%
Source: British Attitudes Survey, Social and Community Planning
Research
11. Union recognition
Occurs when an employer agrees
to bargain with a union over, e.g.
wages. Employers do not have to
recognise unions but employees
cannot be prevented from joining
a union.
12. Functions Of Trade Unions
Broadly classified into two categories:
(i) Militant functions
(ii) Fraternal functions
Militant functions
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 go-slow tactics, strike, boycott, gherao, etc which
represent militant or fighting functions
13. Functions Of Trade Unions
Fraternal Functions
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 take up welfare measures for improving the morale of workers and
generate self confidence among them, arrange for legal assistance to its
members, if necessary, undertake many welfare measures for their members
Eg; School for the education of children, library, reading-rooms, in-door and
out-door games, and other recreational facilities and undertake publication of
some magazine or journal which are called as 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
14. Importance
Play an important role and are helpful in effective communication between the
workers and the management
Provide the advice and support to ensure that the differences of opinion do not
turn into major conflicts
Represent people at work
Play an important educational role, organizing courses for their members on a
wide range of matters, seeking a healthy and safe working environment is also
prominent feature of union activity
15. Reasons For Joining Trade Unions
1. Greater Bargaining Power
2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Sense of Belongingness
6. Platform for self expression
7. Betterment of relationships
16. Trade Unionism In India
The first phase (1850 to1900)
During this phase the inception of trade unions took place. During this period,
the working and living conditions of the labor were poor and their working
hours were long. Capitalists were only interested in their productivity and
profitability. In addition, the wages were also low and general economic
conditions were poor in industries
The growth of trade union movement was slow in this phase and later on the
Indian Factory Act of 1881 was amended in 1891. Many strikes took place in
the two decades following 1880 in all industrial cities. These strikes taught
workers to understand the power of united action even though there was no
union in real terms. Small associations like Bombay Mill-Hands Association
came up by this time
17. Trade Unionism In India Cont..
The second phase (1900 to 1946)
This phase was characterized by the development of organized trade unions and
political movements of the working class. Between 1918 and 1923, many
unions came into existence in the country
At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions
like spinners’ unions and weavers’ unions were formed. A strike was launched
by these unions under the leadership of Mahatma Gandhi who turned it into a
satyagrah. These unions federated into industrial union known as Textile Labor
Association in 1920
In 1920, the First National Trade union organization (The All India Trade
Union Congress (AITUC)) was established. Many of the leaders of this
organization were leaders of the national Movement. In 1926, Trade union law
came up with the efforts of Mr. N N Joshi that became operative from 1927.
During 1928, All India Trade Union Federation (AITUF) was formed.
18. Trade Unionism In India Cont..
The third phase began with the emergence of independent India (in 1947). The
partition of country affected the trade union movement particularly Bengal and
Punjab. By 1949, four central trade union organizations were functioning in the
country:
1. The All India Trade Union Congress,
2. The Indian National Trade Union Congress,
3. The Hindu Mazdoor Sangh, and
4. The United Trade Union Congress
The working class movement was also politicized along the lines of political
parties. For instance Indian national trade Union Congress (INTUC) is the trade
union arm of the Congress Party. The AITUC is the trade union arm of the
Communist Party of India. Besides workers, white-collar employees, supervisors
and managers are also organized by the trade unions, as for example in the
Banking, Insurance and Petroleum industries.
19. Trade Unionism In India Cont..
The Indian workforce consists of 430 million workers, growing 2% annually
The Indian labor markets consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce
2. Organized sector, which employs 8 per cent of workforce
3. The urban informal sector (which includes the growing software industry and
other services, not included in the formal sector) which constitutes the rest 32
per cent of the workforce
20. Trade Unionism In India Cont..
At present there are twelve Central Trade Union Organizations 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)
21. Union membership has
declined since the late 1970s.
A major reason is the growth
of employment in sectors
where unions are not
traditionally very strong, e.g.
part timers, the service sector,
and women workers
22. Why has union membership fallen?
• Decrease in manufacturing sector
• Increase in service sector
• Increase in female workers
• Increase in part time workers
• Increased legislation reducing the power of trade unions
• Improved relationship between management and workers
23. Recent changes in trade unionism
1. Single union deals
More businesses are recognised just 1 trade union. A contract is signed
between the workforce and management that only 1 trade union will
represent the workforce. This saves time in negotiations.
2. No strike agreements
More and more unions are signing these agreements. This emphasises the
improved relationship between the 2 parties.