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TRADE UNION TRADE UNION Introduction Introduction A trade union is an organization of employees A trade union is an organization of employees formed on a continuous basis for the purpose of formed on a continuous basis for the purpose of securing different range of benefits. It is a securing different range of benefits. It is a continuous association of wage earners for the continuous association of wage earners for the purpose of maintaining and improving the purpose of maintaining and improving the conditions of their working life. conditions of their working life. The Trade Union Act 1926 defines a trade union as The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, a combination, whether temporary or permanent, formed primarily for the purpose of regulating formed primarily for the purpose of regulating the relations between workmen and employers or the relations between workmen and employers or between workmen and workmen, or between employers between workmen and workmen, or between employers and employers, or for imposing restrictive and employers, or for imposing restrictive condition on the conduct of any trade or condition on the conduct of any trade or business, and includes any federation of two or business, and includes any federation of two or more trade unions. This definition is very broad more trade unions. This definition is very broad as it includes associations of both the workers as it includes associations of both the workers and employers and the federations of their and employers and the federations of their associations. Here, the relationships that have associations. Here, the relationships that have been talked about are both temporary and been talked about are both temporary and permanent. This means it applies to temporary permanent. This means it applies to temporary workers (or contractual employees) as well. Then workers (or contractual employees) as well. Then this definition, primarily, talks about three this definition, primarily, talks about three
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Page 1: Trade Unions

TRADE UNIONTRADE UNIONIntroductionIntroductionA trade union is an organization of employees A trade union is an organization of employees formed on a continuous basis for the purpose of formed on a continuous basis for the purpose of securing different range of benefits. It is a securing different range of benefits. It is a continuous association of wage earners for the continuous association of wage earners for the purpose of maintaining and improving the purpose of maintaining and improving the conditions of their working life.conditions of their working life.The Trade Union Act 1926 defines a trade union as a The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, combination, whether temporary or permanent, formed primarily for the purpose of regulating the formed primarily for the purpose of regulating the relations between workmen and employers or relations between workmen and employers or between workmen and workmen, or between between workmen and workmen, or between employers and employers, or for imposing employers and employers, or for imposing restrictive condition on the conduct of any trade or restrictive condition on the conduct of any trade or business, and includes any federation of two or business, and includes any federation of two or more trade unions. This definition is very broad as it more trade unions. This definition is very broad as it includes associations of both the workers and includes associations of both the workers and employers and the federations of their associations. employers and the federations of their associations. Here, the relationships that have been talked about Here, the relationships that have been talked about are both temporary and permanent. This means it are both temporary and permanent. This means it applies to temporary workers (or contractual applies to temporary workers (or contractual employees) as well. Then this definition, primarily, employees) as well. Then this definition, primarily, talks about three relationships. talks about three relationships.

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• They are the relationships between the:• workmen and workmen,• workmen and employers, and• employers and employers. • Thus, a trade union can be seen as a group 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, and may even engage in political activity where legislation affects their members. Trade unions are voluntary associations formed of protecting the common interests of its members and also promote welfare. They protect the economic, political and social interests of their members.

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Features of Trade unions

• It is an association either of employers or employees or of independent workers. They may consist of :-

– Employers’ association (EFI), – General labor unions (AITUC)– Friendly societies (Rotary Club)– Unions of intellectual labor (All India

Teachers Association) • 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.

• It achieves its objectives through collective action and group effort.

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Objectives of Trade Unions

• Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against unfair labor practices. Trade unions are formed to achieve the following 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.

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Negotiation

Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. 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.

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Voice in decisions affecting workers.

The economic security of employees is concluded 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. These policies 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.

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• Member services

• During the last few years, trade unions have increased the range of services they offer their members. These include:– Education and training - Most unions run training

courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.

– Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.

– Financial discounts - People can get discounts on mortgages, insurance and loans from unions.

– Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed.

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Importance of Trade Unions

The existence of a strong and recognized trade union is for industrial peace. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more significant and play an vital role and are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work and protecting their interests. Trade unions help in accelerate pace of economic development in many ways as follows:

by helping in the recruitment and selection of workers. by discipline among the workforce by settlement of industrial disputes in a balanced

manner by helping social adjustments like new working

conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated.

Trade unions are a part of society and as such, have to take into consideration, promoting and maintaining national integration by reducing the number of industrial disputes

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Reasons for Joining Trade Unions

• The important forces that make the employees join a union are as follows:

1. Greater Bargaining Power 2. Minimize unfairness 3. Sense of Security 4. Sense of Participation 5. Platform for self expression 6. Betterment of relationships

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Problems of Indian Trade Union

Small size of unionFinancial weaknessMultiplicity of union and inter-

union rivalryLeadership issuePoliticalisation of unionsProblem of recognition of trade

union

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• Evolution of IR in India Vedic Period to Mugal Rule British Rule to Pre-Independence India Post-Independence India

• British Rule to Pre-Independence India• There was no change, • working hours – 20 in a day, Low wages• First strike on 1895 at Budge Budge Jute Mill • & loss was Rs. 18,000/-

• Labour Associations- • Bombay Millhands Association (1890)• Amalgamated Society of railway servant of India

(1897)• Printers Union, Calcutta (1905)• Postal Union, Bombay (1907)• Due to wages and Economic distress workers

organised together and did the strike one at Ahmedabad (led by Mahatama Gandhi) and the other one at Madras (led by B P Wadia) in 1921.

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Trade Unionism In India (Origin and Growth)

• The trade unionism in India developed quite slowly as compared to the western nations. Indian trade union movement can be divided into three phases.

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The first phase (upto1900)

• 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.

• The wages were also low and general economic conditions were poor in industries.

• Employment of child labor was prohibited. • The growth of trade union movement was

slow in this phase and later on the Indian Factory Act of 1881. Many strikes took place in all industrial cities. These strikes taught workers to understand the power of united action even though there was no union in real terms.

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• The second phase (1900 to 1946)

• This phase was characterized by the development of organized trade unions and political movements of the working class. 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.

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• In this period a continuous growth in the number of trade unions and their members. Though the rate of these early trade unions was very high, new trade union continued to be formed all the time so as to provide growth and expansion to the Indian trade union movement. The following are the main features –

Formation of AITUC Expansion in the number of trade union and

membership Enactment of the Indian Trade union Act’ 1926 Increase in the industrial disputes Role of leftist influence on the Indian trade

union movement Initiation of the practice of paying DA and

bonus

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• 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. Four central trade union organizations were functioning in the country:

The All India Trade Union Congress, AITUC is the trade union arm of the Communist

Party of India The Indian National Trade Union Congress, INTUC is the trade union arm of the Congress

Party The Hindu Mazdoor Sangh, and The United Trade Union Congress The working class movement was also politicized

along the lines of political parties. 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.

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• Trade Unions Movement in India – after independence

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors:

The rural workers, who constitute about 60 per cent of the workforce.

Organized sector, which employs 8 per cent of workforce, and

The urban informal sector (which includes the growing software industry and other services, not included in the formal sector) which constitutes the rest 32 per cent of the workforce.

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Recommendation of NationalCommission on Labour forstrengthening Trade Union

Enlargement of functionsLeadershipUnion rivalriesImprovement of financial conditionVerification of membershipRegistration & Recognition of the

union

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•White – collar Unionism

Emergence of Managerial or Officers’ Union are witnessed as the employees of Government deptt. like railway, post, banks, insurance, teachers, engineers, resident doctors

Besides this, over the years, the income differentials between the blue-collar workers (bargainable category) and white collar workers (non-bargainable category)

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• Some of the 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)12.All India Bank Employees’ Association13.All India Insurance Employees’ Federation14.All India Railway men's Federation15.National Federation of Posts & Telegraphs Employees16.Indian Paper Mill Association

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Significant Trade Union in India:

The All India Trade Union Congress (AITUC) is the oldest Trade Union in India and till 1945 it remained the central trade union organization in India. Some others are like -

All India Bank Officers Confederation- AIBOC is the premier organization of Bank Officers in India. This Trade Union in India stands apart from the others as it is organized purely on apolitical lines.

All India State Government Employees Federation- AISGF is a trade union organization representing state employees and teachers of different states in India.

Center of Indian Trade Unions – CITU is one of the major Trade Union in India,

Hind Mazdoor Sabha – HMS is a progressive Trade Union in India that prefers to refrain from political control.

National Confederation of Officer's Association -NCOA represents the managerial and supervisory staff of the Indian government owned public Enterprises.

Trade Union International - TUI forms a part of the structure of World Federation of Trade Unions, representing the public employees, telecommunication employees, health services, financial sector employees & municipal employees of different countries of the world.

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• Functions of Trade Union –

To achieve higher & fair wages and better working condition for the members

Protecting the members against unfair treatment and injustice by employers

To generate self confidence among the workers

To encourage sincerity and discipline among workers

to provide for educational, cultural facilities

To take up welfare measures for improving the morale of the workers

To cooperate and facilitate technological advancement

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•Functions of Trade unions

Functions can be broadly classified into two categories:

(i)  Militant functions, (ii) Fraternal functions

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• Militant functions

• Trade unions leads to the betterment of the position of their members. The aim of such activities is

ensure adequate wages secure better conditions of work and employment get better treatment from employers

When the unions fail to achieve these aims by the method of Trade unions perform a number of functions in order to achieve the collective bargaining and negotiations, they adopt an approach and put up a fight with the management in the form of strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as militant or fighting functions. Thus, the militant functions of trade unions can be summed up as:

• To achieve higher wages and better working conditions

• To raise the status of workers as a part of industry• To protect labors against victimization and injustice

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Fraternal functions

• Another set of activities performed by trade unions aims

help to its members in times of need, and improving their efficiency

try to promote and encourage of cooperation and promote friendly industrial relations

multiply education and culture activities among their members

take up welfare measures for improving the morale of workers and generate self confidence among them

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

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Fraternal functions (contd.)

undertake publication of some magazine or journal

depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders

To take up welfare measures for improving the morale of workers

To generate self confidence among workers To encourage sincerity and discipline among

workers To provide opportunities for promotion and

growth To protect women workers against

unfairness arrange for legal assistance to its members,

if necessary

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Theories of Trade Union Or Evolution of Trade Union : A Theoretical

Perspective

1. Dunlop's Contribution 2. Webb’s Non-Revolutionary or Industrial

Democracy Theory3. Revolutionary or Classless Theory of Karl

Marx4. Scarcity of Consciousness of Theory of

Selig Perlman5. Sociological Theory of Frank Trannenbaum6. Social Psychological Theory of Robert F.

Hoxie7. Kerr and Associates’ Protest or General

Theory8. Gandhiji’s Sarvodaya Theory

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• 1 - John T. Dunlop's model identifies the key factors to be considered in conducting an analysis of the management-labor relationship:

Environmental or external economic, technological, political, legal and social forces that impact employment relationships.

Characteristics and interaction of the key factors in the employment relationship : labor, management, and government.

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2- Webb’s Non-Revolutionary Or Industrial Democracy Theory :

• According to Sydney & Beatric Webb (the dominant leaders of labour party of

Britain) Political democracy is not sufficient like

freedom of contract, freedom of association, freedom of opportunity

But also required industrial democracy that employers and employees are running the organization as equal basis.

Atleast mini wages and mini working condition have to be decided

Trade union is not an instrument for the revolution, is a means of equalizing the bargaining power of labour and capital.

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3 - Revolutionary Theory of Karl Marx Or Classless Society Approach of Karl Marx

• A fair day’s wage for a fair day’s work

According to Marx, trade union play role as a prime instrument of class struggle b/w blue-collar workers and capitalist businessmen and their purpose is to eliminate competition among labour for available employment and overcome capitalist businessmen. He advocated that the working class must not divert itself from its revolutionary program and the struggle of labour must be for the abolition of capitalism.

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4- Scarcity of Consciousness of Theory of Selig Perlman

Scarcity : Lack Consciousness : Awareness

Job security is the major motive.

The union establish job right which it then provisions among the members through regulations applying to overtime, job promotion and seniority etc. He observe that the labour movement has been a effective attack on the institution of private property. Though strikes, boycotts, working rules, and by securing govt. restrictions on employers, union restrict the absolute rights of private property.

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5. Sociological Theory of Frank Trannenbaum

He observed that “workers are engaging in an unaware revolution against the industrial society.” It is expected that a sense of identity should develop among men working at a common task. The initial organiser of the trade union movement is the shop or the factory. The striker or the labour leader merely announces the already existing fact. The worker became completely dependent on others for his livelihood. To secure a job and to hold it, a man has to belong to something real, purposeful and creative, he must also belong to his job and to his industry.

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Sociological Theory of Frank Trannenbaum (contd.)

In fact, the union do not use his power to create a socialist or communist state. The dispute b/w labour and management has always been as a family conflict.

According to him, unionism is not a solution because it is not a problem but a natural process in an industry society. A trade union gives back to the workers his society and code of conduct by which he can live. In sense, trade unionism is a counter-revolutionary.

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6.Social Psychological Theory of Robert F. Hoxie

If we are to study unionism, we shall study not a narrow piece of reality, but society as a whole from one particular view. Unionism affects not only production, but also the establishment rights (employers’ right to run the business as he satisfy, workers’ right to work, where, when, for whom and for what he entertain.), ethical standards, distribution of profits and wages, law and order in the matter of social welfare.

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• Hoxie classified unionism into five parts

Business Unionism or Bread and Butter Unionism essential trade-aware rather than class-aware, immediate

goals, improvement in working conditions and wages Friendly or Uplift Unionism improvement in mutual adjustment, moral, social life and

profit sharing Revolutionary Unionism believe in direct action and replacing of existing order,

class-aware rather than trade-aware Predatory (greedy) Unionism dominated by Gangsters, not believe on any ideology,

apart from ethical and legal code of effect upon those outside its own memberships

Dependent Unionism rely upon the support of employers or other labour

groups

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7. Kerr and Associates’ Protest or

General Theory

• Kerr, Dunlop and Myre observed that worker complaint in natural in industrialization and offer an explanation of workers’ objection which arises from stress and strain. These thinkers are of the view that the traditional analysis of the labour problem.

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8. Gandhiji’s Sarvodaya Theory

• It is based upon truth, non-voilence trusteeship, development of organisation, not anti-capitalistic less political.

• To raise the moral and intellectual • Capital and labour should

supplement and help each other. They are as a family.

• Try to reduce the strikes and lockouts for the development to all.

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Strikes in India in this year (from Jan.’09 to till date)Date Description

5 Jan.’ 2009 Coal industry, due to wages

7 Jan.’ 2009 Public oil sector, due to wages

7 Feb.’ 2009 NTPC, to salary

20 April’ 200929 July’ 2009

Hyundai, due to establish a trade unionStrike finished & loss of 1800 cars

30 April’ 2009 Mumbai Airport, due to transfer

2 may’ 2009 Nestle, Rudrapur due to release of probation employees

4 may’ 2009 M&M, Nasik, due to dismiss of trade union leader

9 may’ 2009 MRF, Arakonam due to wages

12 may’ 2009 JNPT, Paradeep & Kochi port due to wages

20 may’ 2009 MTNL, due to salaryBeladila Mines due to salary & working condition

12 June’ 2009 Public Sector Banks, due to salary

25 Aug.’ 2009 Air India, due to retrenchment in salary

7 Sep.’200913 Sep.’2009

Jet Airways Pilots on medical leave, due to dismiss of pilotsStrike finished, loss of 25-30crore (National Aviators Gild)