Trade Unions are basically associations of workers and are formed with the aim of protecting the workers against exploitation by their employers and also improving their living conditions.
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.
Learn about:- 1. Introduction to Trade Unions 2. Meaning and Definitions of Trade Unions 3. Concept 4. Nature 5. Objectives 6. Structure 7. Types 8. Methods for Achieving the Objectives 9. Importance 10. Features 11. Important Forces 12. Theories 13. Advantages 14. Registration 15. Recognition 16. Trends 17. Challenges 18. Problems and Weaknesses 19. Suggestions.
Trade Union: Introduction, Meaning, Definitions, Concept, Nature, Objectives, Structure, Theories and Challenges
Contents:
- Introduction of Trade Union
- Meaning and Definitions of Trade Union
- Concept of Trade Union
- Nature of Trade Union
- Objectives of Trade Union
- Structure of Trade Union in India
- Types of Trade Union
- Methods for Achieving the Objectives of Trade Union
- Importance of Trade Union
- Features of Trade Union
- Important Forces that Make the Employees Join an Union
- Theories of Trade Union
- Advantages of Trade Union
- Registration of Trade Union
- Recognition of Trade Union
- Trends of Trade Union
- Challenges of Trade Union
- Problems and Weaknesses of Trade Union in India
- Suggestions for Strengthening Trade Union
Trade Union – Introduction
Trade Unions are basically associations of workers and are formed with the aim of protecting the workers against exploitation by their employers and also improving their living conditions.
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Definition – According to Sale Yoder a trade union is a continued long term association of employees formed and maintained for specific purpose of protecting the interest of members in their working relationship.
According to British Trade Union Act’ 1953 – Trade Union is an association of workers formed with the main objective of the regulation of relation between workmen and masters for imposing of restrictive conditions on the conduct of any trade or business and also provision of benefits to members.
According to Industrial Trade Union Act’ 1926 – The unions must work to protect and promote the interest of the workers and conditions of employment.
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According to National Commission on Labour – Trade Union must work –
i. To secure interest of workers for fair wages.
ii. To safeguard security of tenure and improving conditions of service.
iii. To enlarge opportunities for Training and Promotion
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iv. To provide education, cultural and recreational activities
v. To offer responsive cooperation in improving production, discipline and quality.
vi. To promote industrial and collective welfare.
vii. To promote National Integration.
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viii. To instill in members a sense of responsibility towards industry and community.
According to 1st 5 Year Plan – Trade Unions should –
(a) Present plans to workers so as to create enthusiasm among them for the plans.
(b) Exercise utmost restraint with regard to work stoppage.
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(c) Formulate wage demands, which are attuned to the requirement of economic development in keeping with the principles of social justice.
(d) Assume greater responsibility for the success of productive efforts.
Employees’ associations constitute one of the major stakeholders in industrial relations system. These associations are called by different names but the term trade union has become most common throughout the world. The concept of trade union, though originated in the context of blue-collar workers, has extended beyond and covers white-collar employees and even supervisors and officers.
In the present context, all classes of employees at lower levels in organizations have formed unions to increase their bargaining position. This tendency is more prevalent in public sector.
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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. N.M. Lokhode was instrumental behind passing this act. 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 Bengalee.
Trade Union – Meaning and Definitions according to Dale Yoder, S.D. Punekar and G. D. H. Cole
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. G.D.H. Cole- “A trade union means an association of workers in one or more professions-an association is carried on mainly for the purpose of protecting and advancing the members’ economic interest in connection with their daily work”
Indian Trade Union Act, 1926- “Trade union as any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen and employer or, between workmen and workmen or, between employer and employer Or for imposing restrictive conditions on the conduct of any trade or business and include any federation of two or more trade unions.”
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Dale Yoder- “A trade union as a continuing long term association of employees, formed and maintained for the specific purpose of advancing and protecting the interest of the members in their working relationship.”
S.D. Punekar- “A trade union is a continuous association of persons in the industry-whether employer or independent workers-formed primarily for the purpose of the pursuit of the interests of its members of the trade they represent.”
Assumptions:
i. Capitalist society,
ii. Integrated group of people within the work organization,
iii. Common values, interests and objectives.
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Nature of Conflict and Its Resolution:
i. Irrational and aberrant (straying from the path),
ii. If there is/are conflict, they are Frictional and personal,
iii. Coercion (force) or paternalism (limiting freedom through regulation).
Scholars have defined “trade union” in their own ways using different combinations of words. Of the various definitions offered, the one suggested by Sydney Webb (1859-1947) and Beatrice Webb (1858-1943) stands out most articulate and is oft-quoted all over the world. They say, “A Trade Union, as we understand the term, is a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their working lives.”
In the words of G. D. H. Cole, “A Trade Union means an association of workers in one or more professions carried on mainly for the purpose of protecting and advancing the members’ economic interest in connection with their daily work.” Most other definitions, though expressed in different words, also lay emphasis on the essential elements inherent in the definitions quoted above.
In simple words, a trade union may be defined as a continuous organisation of employees formed primarily for the purpose of protecting and promoting the interests of its members, and in many cases, also those of the workers in general.
Trade Union – Concept
Trade unions are voluntary associations of employees formed to promote and protect their interests through collective actions.
Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as follows:
“Trade union means any combination, whether temporary or permanent, formed primarily for the purpose of (a) regulating the relations (1) between workmen and employers, or (2) between workmen and workmen, or (3) between employers and employers; or (b) for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”
Thus, the Act has covered employer’s associations also in the category of trade unions. However, the various provisions of the Act do not specify the relationship between employers and employers. Further, the other definitions of trade unions do not include employers’ associations in the category of trade unions. For example, the British Ministry of Labour has defined trade unions as-
“All organizations of employees including those of salaried and professional workers as well as those of manual wage earners which are known to include among their functions that of negotiating with their employers with the object of regulating conditions of employment.”
Based on the above definitions, we may derive the features of trade unions as follows:
1. Trade unions are voluntary associations formed by employees to safeguard their interests through collective actions.
2. Such associations at the level of individual organizations as well as the apex bodies with which these may be affiliated fall in the category of trade unions.
3. Since trade unions are voluntary, an employee has a choice to join or not to join a union. Similarly, a trade union has choice to affiliate or not to affiliate itself with an apex body of trade unions.
Trade Union – Nature
It is clear from the definitions that trade unions are the voluntary organisations of workers which are formed to protect their interests. They are multipurpose institutions with political status. They are primary institutions of industrial democracy and raise the voice of workers against the exploitation of the capitalists.
Trade unions are voluntary organisations of workers or employees formed to promote and protect their interests through collective action. The Trade Unions Act 1926 defines a trade union as a combination whether formed as temporary or permanent,
(a) Primarily for purpose of regulating the relation between –
(i) Workmen and employers.
(ii) Between workmen and workmen.
(iii) Between employers and employers.
(b) For imposing restrictive condition on the conduct of any trade or business and includes any federation of two or more trade unions. An analysis of the above definitions reveals that a trade union must be –
(i) A combination of workers or employees.
(ii) Such a combination may be either permanent or temporary.
(iii) May include federation of two or more unions
(iv) For the purpose of regulating relations among workers between workers and employers or even among employers themselves.
Trade Union – Twin Objectives: Economic and Non-Economic Objectives
There are twin objectives of trade unions, namely –
1. Economic and
2. Non-economic,
1. Economic Objectives:
These may comprise:
a. To secure for workers fair wages
b. To secure better and more fringe benefits
c. To safeguard security of job of employees
d. To secure better working conditions
e. To improve productivity
f. To secure opportunities for growth and development of employees
g. To seek opportunities for promotion, training and so on
2. Non-Economic Objectives:
Some of the main non-economic objectives of trade unions may include:
a. To instil in its members a sense of social responsibility
b. To influence the socio-economic policies of the community through civic participation in their formulation at various levels
c. To contribute towards community development
d. To strengthen political power of the workers
e. To render social service
f. To promote national integration and so on
Thus, trade unions aim at not only protecting and promoting economic, social and political interests of their members but also contributing towards betterment of the community.
Trade Union – 4 Types of Structure: Craft Unions, General Unions, Industrial Unions and Federation and Confederation
The structure of trade unions in India varies from organization to organization.
However, the structure can be classified into four types as under:
Type # 1. Craft Unions:
If the workers of the same craft or category of the job form into a union, that union is called ‘craft union’. These unions are called as – ‘horizontal unions’. The basic logic behind the formation of such unions is that the workers belonging to the same craft do face similar problems-mostly non-managerial personnel form such unions.
Examples of such unions are Drivers’ Associations, Signaling Staff Union in Indian Railways, etc.
Type # 2. General Unions:
If the workers of any industry, any region and of any job or occupation form into one union in order to protect the overall interests of the workers, such unions are called general unions.
Type # 3. Industrial Unions:
If the workers of different categories form into a union, that union is called industrial union. These unions are also called “vertical” unions. The logic behind the formation of these unions is that workers of the same industry have the common bend and they are governed by same rules and regulations, and are administered by same management.
Moreover, the problems of all the same industry are more or less common. The importance of these unions has been increasing in recent times.
Type # 4. Federation and Confederation:
Industrial unions, either of same industry or of the different industry may form into an association in order to improve trade union unity/strength. Such unions of unions are called Federations. During the critical situations, unions/federations in different industries may resort to concerted action without losing their individuality.
In such situations, the federations form into an Association and such an association is called confederation. For example, Federation of Indian Railways, P&T, Central Government Employees may form into a confederation.
Trade Union – 3 Basic Types: Craft/Occupational Unions, Industrial Unions and General Union
There are essentially three basic types of trade unions.
These are:
1. Craft/occupational union,
2. Industrial union and
3. General union.
Type # 1. Craft/Occupational Unions:
A craft union is an organisation of wage-earners engaged in a single craft or occupation or a group of closely related crafts or occupations. Unions of carpenters, plumbers, electricians, weavers and crane drivers come under the category of craft unions. Examples of craft unions are Indian Pilots’ Guild and International Wood Carvers’ Association.
There are also unions having their membership open to a group of different crafts. Such unions are known as multiple craft unions. Craft unions have been widely prevalent in the USA and the UK. In India, such unions are scarce. Closely related to craft unions are occupational/professional unions. A professional/occupational union is essentially a union of employees with specialised skills such as unions of teachers, physicians, engineers and chartered accountants. Craft unions may be formed at the plant, locality, company, regional, industry or even national level.
The main strength of craft unions lies in their strategic position; strong bargaining power; compactness and cohesiveness of the group and ability to protect and promote the interests of the members in an effective manner.
Weaknesses of craft unions include the following – proneness to division in the ranks of workers; vulnerability to being broken easily by the employer; difficulties in organising strong joint action and greater probability of instability as a result of technological changes and blurring of craft distinctions.
Type # 2. Industrial Unions:
An industrial union is the one which covers all categories of workers engaged in a particular industrial establishment or industry as a whole, irrespective of distinctions based on craft, skill or job. It organises all groups of workers—unskilled, semi-skilled, skilled and highly skilled within one common fold. Such unions may also be formed at the plant, region or industry level. Industrial unions are the common type in most countries of the world including India.
In India, most of the industrial unions have been formed at the plant level. These unions may or may not be affiliated to a federation at higher levels. In the USA and the UK, which have a strong tradition of the formation of craft unions, there has been a substantial growth of industrial unions during more recent years. The United Automobile Workers is a typical example of industrial union in the USA. Examples of industrial unions in India are Tata Workers’ Union, Colliery Mazdoor Sangh and Indian National Textile Workers’ Federation.
The points of strength of industrial unions are as follows – their ability to promote solidarity among heterogeneous groups of workers; convenience in negotiations with the employer; greater adaptability in the event of technological changes and greater measure of strength and effectiveness in collective bargaining and industrial action.
The weaknesses of industrial unions include the following – difficulties in satisfying all groups of members; more attention to the interests of the group providing bulk of membership; encouragement to the formation of small-sized unions on account of ease in establishing a union with only a few members, which results in multiplicity of unions and union rivalries even in a small-sized establishment and creating difficulties in recognition of representative union.
Type # 3. General Unions:
A general union is the one, the membership of which is open to all categories of workers, irrespective of considerations of craft, occupation, craft, industry or employment. With a few exceptions, general unions in India are confined mainly at the local level. The membership of these unions is usually composed of employees of small establishments and employments.
Generally speaking, the problems facing these employees are, more or less, common. As employees of a single establishment are not in a position to exert an effective pressure on the employer on their own, they join a general union of the locality in the expectation of more fruitful results. In many cases, the employers of the area owning small-sized establishments also form their associations for taking a united stand in negotiations.
In some countries such as the UK, general unions have been formed also at higher levels. A typical example of general union is the Transport and General Workers’ Union of the UK. The Textile Labour Association of Ahmedabad, which has been a federation of craft unions in the textile industry of the city, has opened its membership to employees of local bodies, shops and establishments and some other employments.
Trade Union – 4 Important Methods for Achieving the Objectives: Collective Bargaining, Political Action, Welfare Measures and Industrial Action
The trade unions have been adopting some distinct methods for achieving their objectives. Of these methods, the methods described by Sydney Webb and Beatrice Webb—mutual insurance, collective bargaining and legal enactment with somewhat liberal interpretations hold good even today. The method of mutual insurance was widely prevalent during early stages of trade unionism in England.
It involved some insurance and welfare benefits for the members and their families. The insurance cover mainly comprised provisions against such risks as sickness, disablement, old age and death. Of the friendly benefits, funeral benefit, which also covered some financial assistance to the deceased family, was more common. A few financially stable unions also provided for some measure of disablement, medical and unemployment benefits to the members. Some unions made provision of tramp benefit to members in search of jobs to enable them to meet travelling expenses.
The method of collective bargaining has been resorted to mainly by well-organised trade unions with large membership. Under collective bargaining, trade union representatives bargain collectively with employers for improving the terms and conditions of employment of their members.
In Webbs’ view, legal enactment implies exerting pressure on the government for the enactment of pro-labour laws. Early trade unions in many countries of the world laid considerable emphasis on exerting pressure on the government to enact protective labour laws covering matters such as reduction in hours of work, improvement of physical working conditions, stoppage of malpractices relating to the mode and manner of wage-payment and protection of women and children.
The trade union methods described by Webbs are relevant to a great extent even today, but there have been substantial changes in their nature and application. Under the modern perspective, it would be appropriate to keep the methods of trade unions in the broad categories of collective bargaining, political action, welfare measures and industrial action.
Method # 1. Collective Bargaining:
The collective bargaining as a trade union method has been widely resorted to in almost all industrialised countries of the world, particularly the USA, the UK and most other European countries where strong well-organised unions with large membership have been firmly entrenched. The method usually involves the following – (i) presentation of demands to the employer; (ii) negotiations over the demands; (iii) contracting of written agreement or mutual understanding over the terms agreed upon; (iv) implementation of the contract with a provision of settlement of grievances, if any and (v) freedom of the parties to resort to industrial action in the event of failure of negotiations.
Collective bargaining without the right to strike by workers in the last resort has little significance. Similarly, the employers retain the right to declare lock-out when they find that the union’s stand or action is intolerable.
Method # 2. Political Action:
The political action as a trade union method is generally in the forms of exerting pressure on the government for enacting pro-labour laws and for the adoption of welfare and social security measures for the benefit of workers; setting up a separate political party under unions’ dominance and control and developing allegiance to a political party pursuing pro-labour policy and programme.
The political action method is intended to benefit workers in general or a substantial portion of the working class rather than protecting the interests of the members only. In quite a number of cases, different trade unions combine to form a common platform to pressurise the government to refrain from or withdraw such economic, industrial or labour policies and programmes which are detrimental to the interests of workers. There are also instances where trade unions have utilised the services of eminent political personalities in getting specific industrial disputes settled in favour of union members.
Exerting pressure on the government for enacting protective and pro-labour laws has been the most widely used method adopted by early trade unions. The demand for such legislation related mainly to regulation of hours of work, protection of wages against malpractices in the mode and manner of wage-payment, safety, protection of child and women labour and improvement in certain other terms and conditions of employment.
Although with the growth of collective bargaining, the demand for protective labour laws faded away a little in the organised sector, trade unions continued to demand legislation on many other issues such as right to organise and bargain collectively, recognition of representative union, restrictions on employers in regard to unfair labour practices, improved form of social security measures, job security and prohibition of discrimination in employment based on race, religion, sex, colour and so on.
In some countries, trade unions have been making efforts and in quite a few cases have succeeded in forming separate political parties under their dominance. For example, in the UK, the Trades Union Congress had succeeded in its efforts, along with the initiatives of others, in establishing the Labour Party in 1906. The Labour Party, which came to power at intervals, initiated a number of programmes on the advice of the TUC. Even today, there is a close relationship between the two in various ways.
However, with the advent of globalisation and increasing competition in international markets, there have been major changes in their relationships. The Labour government in power has often been adopting economic and labour policies which are not to the liking of the Trades Union Congress. Similarly, trade unions in quite a number of developing countries, particularly those more recently becoming independent from colonial rule, have succeeded in forming political parties of their own.
The trade unions often also organise the votes of union-members to favour candidates or political parties pursuing pro-labour policy in political elections with a view to “reward friends and punish the enemies.” Such a practice has been a usual phenomenon in the USA and the UK.
In India, trade unions did not make efforts to establish a separate political party under their control. A number of trade unions are, however, affiliated to one political party or the other. For example, the Indian National Trade Union Congress (INTUC) is affiliated to the Indian National Congress, the Bharatiya Mazdoor Sangh (BMS) to Bharatiya Janata Party and the Centre of Indian Trade Unions (CITU) to the Communist Party (Marxist).
Method # 3. Welfare Measures:
Many trade unions with sound financial conditions, particularly the craft unions, provided certain welfare measures for the benefit of their members. The benefits more usually provided financial assistance in the event of sickness and disablement of the members and in the event of death of the members, assistance including funeral expenses to the family.
Some trade unions also provided tramp benefit to members moving in search of jobs in order to enable them to meet travelling expenses. Subsequently, many big unions with sound financial conditions started an improved form of welfare amenities and social security benefits to the members out of their own funds. With the adoption of comprehensive social security and welfare measures by the government and their enlargement at regular intervals, the role of trade unions in making provision of these benefits gradually declined.
In India, majority of the unions including the big ones are not in a position to arrange for these benefits out of their funds. Only a few unions such as the Textile Labour Association, Ahmedabad and Tata Workers’ Union, Jamshedpur have been engaged in providing some measure of welfare amenities to their members. These benefits are merely in the form of educational, recreational, cultural and limited medical facilities.
Method # 4. Industrial Action:
Trade unions generally consider the right to strike as one of their basic rights. They contend that collective bargaining without the right to strike has no significance. Trade unions, no doubt, consider strike as the most powerful weapon in their armoury, they also resort to some other forms of industrial action to pressurise the employers and the government for the fulfilment of their objectives.
The more common of these are demonstration, picketing and boycott. In many cases, these supplement strike action, but in some cases these are resorted to independently. Strikes and other forms of industrial action are organised not only in the situation of industrial disputes, but also against government’s anti-labour policies and programmes. In India, general strikes or bandhs organised by central unions, mostly in combination, against government’s liberalised economic and industrial policies and measures initiated in 1991, became a regular feature during subsequent years.
With the advent of globalisation, such strikes have also been resorted to in many Latin American and European countries. In India, gherao had also been a regular feature of trade union action in West Bengal and Kerala during 1960s and 1970s under united front governments. Gherao is the practice which involves confinement of authorities, mostly managerial personnel, in their offices by agitated workers for hours in connection with their demands and not allowing them to leave.
The practice was, however, outlawed, but still continues in isolated cases. Although the frequency of wider forms of industrial action, particularly general strikes and bandhs, has increased during more recent years; their effectiveness in exerting pressure on the government has materially declined especially in view of the compulsions of the government not to go back from needed measures of economic reforms, which often necessitate putting curbs on strikes and other forms of industrial action in national interests.
Trade Union – Importance
Trade unions help in accelerated pace of economic development in many ways as follows:
(i) By helping in the recruitment and selection of workers.
(ii) By inculcating discipline among the workforce
(iii) By enabling settlement of industrial disputes in a rational manner
(iv) By helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
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 providing better terms and conditions of employment, secured jobs, better wages, favorable working environment which in turn leads to desired profitability.
Trade Union – 8 Main Features of a Successful Trade Union
Trade union to be successful in their functioning and in discharging responsibilities should possess the following characteristics:
(a) The trade union must be responsible to its members in solving their problems, protecting their interest. Trade union should select an appropriate method for representing and solacing workers’ problems.
(b) The trade union must be internally democratic so as to respect the workers’ right of self-government the criteria to judge the union democracy include –
(i) Regular participation of all its members in policy making.
(ii) Direct and indirect control by all its members over vital decision of die union on special occasions.
(iii) Reliance on officials to run day-to-day administration with adequate membership.
(iv) Trade union leadership should respond to the member’s demands — both formally and informally.
(v) Trade union leadership control should be based on die desires of the members.
(c) It must be enough in terms of membership and finance in order to protect the members’ economic interest. Trade union must prove itself as an effective weapon against management militancy.
(d) It should be an enlightened one so that it may be able to guide and direct the trade union movement properly. This presupposes the existence of a correct leadership which is not prepared to sacrifice the interests of the workers and desires to have a highway for them to attain their status as participants in the new order of things.
(e) It should have clearly enunciated objectives and a coherent and well-conceived policy and it should consider itself as a business organisation which requires careful planning and sound organisational methods for its success.
(f) It should have a solid foundation so that it may be strong enough to achieve success in the realisation of its objectives.
(g) It should be run by the members for the members, i.e., its leadership should come from the rank and file of its members and it should be subject to their support or rejection.
(h) It should have honesty and integrity of purpose; i.e., it should be honest not only in financial matters; its integrity should be all inclusive and should extend to its relationship with employers to the formulation of its policies and the evaluation of its performance and to what it says to its own members. It should have a sense of responsibility, i.e., it is necessary that –
i. It should be internally strong so that it may be effective in protecting the interests of the workers.
ii. It should use its economic power in a careful and responsible way, i.e., it should aware of the existing realities in terms of the opportunities it has to bring about an improvement in the living conditions of its members.
iii. It should be democratic so that the workers’ right of self-government acquires a reality.
Trade Union – Important Forces that Make the Employees Join an Union
The important forces that make the employees join an union are as follows:
1. 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. It is not practicable to continually resign from one job after another when he is dissatisfied.
This imposes a great financial and emotional burden upon the worker. The better course for him is to join a union that can take concerted action against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment.
2. Minimize Discrimination:
The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. The personal relationships existing between the supervisor and each of his subordinates may influence the management. Thus, there are chances of favouritisms and discriminations.
A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. All the labour decisions of the management are under close scrutiny of the labour union. This has the effect of minimizing favouritism and discrimination.
3. 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.
4. 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.
5. Sense of Belongingness:
Many employees join a union because their coworkers 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.
6. Platform for Self Expression:
The desire for self-expression is a fundamental human drive for most people. All of us wish to share our feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them. A trade union provides such a forum where the feelings, ideas and opinions of the workers could be discussed.
It can also transmit the feelings, ideas, opinions and complaints of the workers to the management. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management.
7. Betterment of Relationships:
Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee, relations. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully.
Trade Union – 9 Theories: Political Revolutionary Theory of Labour Movement of Marx and Engels, Webb’s Theory of Industrial Democracy and a Few Others
Theory # 1. Political Revolutionary Theory of Labour Movement of Marx and Engels:
This theory is based on Adam Smith’s theory of labour value. Its short run purpose is to eliminate competition among labour, and the ultimate purpose is to overthrow capitalist businessman. Trade union is pure simple a class struggle, and proletarians have nothing to lose but their chains and they a world to win.
Theory # 2. Webb’s Theory of Industrial Democracy:
Webb’s book ‘Industrial democracy’ is the Bible of trade unionism. According to Webb, trade unionism is an extension of democracy from political sphere to industrial sphere. Webb agreed with Marx that trade unionism is a class struggle and modern capitalist state is a transitional phase which will lead to democratic socialism. He considered collective bargaining as the process which strengthens labour.
Theory # 3. Cole’s Theory of Union Control of Industry:
Cole’s views are given in his book “World of Labour” 1913. His views are somewhere in between Webb and Marx. He agrees that unionism is class struggle and the ultimate is the control of industry by labour and not revolution as predicted by Marx.
Theory # 4. Common’s Environment Theory:
He was skeptical of generalisations and believed only that which could be proved by evidence. He agreed that collective bargaining was an instrument of class struggle, but he summarised that ultimately there will be partnership between employers and employees.
Theory # 5. Mitchell’s Economic Protection Theory of Trade Unionism:
Mitchell, a labour leader, completely rejected individual bargaining. According to him unions afford economic protection to.
Theory # 6. Simons Theory of Monopolistic, Anti-Democratic Trade Unionism:
He denounced trade unionism as monopoly founded on violence. And he claimed monopoly power has no use save abuse.
Theory # 7. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers:
He rejected the idea of class consciousness as an explanation for the origin of the trade union movement but substituted it with what he called job consciousness. According to him, ‘working people in reality felt an urge towards collective control of their employment opportunities, but hardly towards similar control of industry.’
Perlman observed that three dominant factors emerged from the rich historical data- the capacity or incapacity of the capitalist system to survive as a ruling group in the face of revolutionary attacks (e.g., failure in Russia) the source of the anti-capitalist influences being primarily from among the intellectuals in any society.
The most vital factor in the labour situation was the trade union movement. Trade unionism, which is essentially pragmatic, struggles constantly not only against the employers for an enlarged opportunity measure in income, security and liberty in the shop and industry, but struggles also, whether consciously or unconsciously, actively or passively, against the intellectual who would frame its programmes and shape its policies.
But Perlman also felt that a theory of the labour movement should include a theory of the psychology of the labouring man. For instance, there was a historical continuity between the guilds and trade unions, through their common fundamental psychology; the psychology of seeking a livelihood in the face of limited economic opportunity.
It was when manual workers became aware of a scarcity of opportunity, that they banded together into unions for the purpose of protecting their jobs and distributing employment opportunities among themselves equitably, and to subordinate the interests of the individual to the whole labour organism. Unionism was ruled thus by this fundamental scarcity consciousness.
Theory # 8. Hoxies Functional Classification of Unionism:
He classified Unionism on the basis of their functions. His classification were Business Unionism for protecting the interest of various craftsmen, “Uplift unionism” for the purpose of contributing better life such as association of sales engineers etc. “Revolutionary Unionism” which is eager to replace existing social order, “Predatory Unionism” which rests on these support of others.
Theory # 9. Tannenbaum’s Theory of Man vs. Machine:
According to him Union is formed in reaction to alienation and loss of community in an individualistic and unfeeling society. In his words, the union returns to the workers his society, which he left behind him when he migrated from a rural background to the anonymity of an urban industrial location.
The union gives the worker a fellowship and a value system that he shares with others like him. Institutionally, the trade union movement is an unconscious effort to harness the drift of our time and reorganise it around the cohesive identity that men working together always achieve.
Trade Union – 3 Main Advantages to the Stakeholders: Benefits to Workers, Benefits to Employers and Benefits to the State and the Community
Trade unions are beneficial to all the stakeholders of an organisation, provided they (trade unions) have positive approach and mean business.
Some of the main advantages of trade unions to some of the stakeholders are as follows:
Advantage # 1. Benefits to Workers:
Trade unions foster a sense of unity among their members, make collective bargaining instrumental in protecting and promoting the interests of their members, check their exploitation, promote their participation in management, get their working and living lives improved, help in their self-growth and development, and promote their economic, social, intellectual, physical and moral betterment.
Advantage # 2. Benefits to Employers:
Trade unions help in avoiding industrial conflicts through collective negotiations. They also help in reducing cost of production, reducing depreciation, increasing productivity, improving quality and output, and increasing the overall profitability of the organisation by getting their members’ goals integrated with the goals of the organisation and also by fostering in them a sense of dedication towards their organisations.
Advantage # 3. Benefits to the State and the Community:
Trade unions make significant contribution in the formulation and implementation of labour policies and labour legislation by the government. By preventing and resolving industrial disputes, trade unions are instrumental in ensuring regular supply of goods and services at reasonable prices to the community. The revenue of the government also gets a boost due to increased production of goods and services.
Trade Union – Registration: Procedure of Registering an Union
The following are the procedures of registering an union:
1. Appointment of Registrar:
Section 3 of the Trade Union Act, 1926 empowers appropriate Government i.e., Central or State as the case may be, to appoint a registrar. However, additional registrar and deputies can be appointed, if necessary, for discharging and exercising the powers and duties of a registrar. Such lower level offices will work under the superintendence and direction of the Registrar.
2. Registration Process:
The process of registration is as follows:
i. Any seven or more persons who intend to form an union can apply for registration to the Registrar of Trade Unions u/s 4 (1) of Trade Union Act, 1926.
ii. Applicants ought to be members of trade union.
iii. Application must be sent to-the Registrar of Trade Union in form ‘A’. Application should be accompanied by the following particulars –
a. Names, occupation and address of the members.
b. Name of the trade union and its address.
c. The titles, names, ages, addresses and occupations of office bearers of the union.
d. Financial statement showing its assets and liabilities for the union already in existence for more than a year prior to application for registration.
e. Copy of rules of the trade union complying with the items specified u/s 6 of Trade Union Act, 1926.
Trade Union – Recognition
Recognition of trade union is the backbone of collective bargaining. Management recognizes only recognized trade unions for negotiation and collective bargaining.
In the absence of any central legislation on this subject, management at times refuse to recognize the unions due to following reasons:
i. Most of the office bearers being outsiders.
ii. Unions having smaller number of employees.
iii. Multiple unions being in existence.
iv. Trade unions not being registered under Trade Union Act, 1926.
However, International Labour Organization (ILO) has been advising managements to recognize trade unions. Some States Governments have evolved a code of discipline and legislation in this regard.
They accord recognition provided it fulfills the following conditions:
i. Unions duly observe the code of conduct.
ii. It has complied with all provisions of the Trade Unions Act, 1926.
iii. Unions should have functioned at least for a year after its registration.
iv. All its members are employed in the same industry.
v. Meeting of the executive should be held at least once in every 6 months.
vi. A trade union once recognized should not make any change in its position for a period of two years. On satisfaction of the above conditions a trade union gets recognition from its employer.
Trade Union – Trends in Trade Union Movements
1. A major trend witnesses these days is the change in the attitude of unions towards management, industry, Government and the economy.
(i) Unions are becoming increasingly matured, responsive and realistic in their thinking and action. Gone are the days for cat-call strikes, bandhs, gheraoes and violence.
(ii) Unions are reconciled to economic reforms. They are now opposing the adverse impact of reforms and not the reforms.
(iii) Now trade unions are discussing issues like productivity, total quality management, technology, competition, exports, etc. Major unions like that of the telecom employees, for example, are on line with the corporation plans of the department. They are now talking about issues like gearing up for competition, inculcating a customer-friendly approach, etc.
(iv) Unions have accepted that there is surplus labour everywhere and it needs to be curtailed. They are now extending cooperation to schemes like voluntary retirement, golden handshake and the like. For example, 35,000 workers of National Textile Corporation have retired voluntarily.
2. Depoliticisation of Union is another trend witnesses these days. All the federations of union are affiliated to one party or the other. Being affiliated to one or the other political party, the unions are more interested to follow the instructions of their leaders than protecting the interests of the workers. Unions have now realized the uselessness of such affiliation and are now insulating themselves against political influences.
Many leading companies such as Telco, Philips, Voltas, Hindustan Unilever Limited, Pfizer, etc., have unions not affiliated to any political party. For example, the Philips employee’s union successfully prevented the entry of Tatas into the company.
When the Philips management allegedly offered the Tatas a part of their rights cum preferential issue, at an unusually low premium, the union demanded that it should be allowed to examine the agreement and successfully moved to the Bombay High Court to settle the issue.
3. Worker’s associations in our country are highly fragmented and the consequences have been the multiplicity of unions. Multiplicity is caused by ideological rifts, personal ambition of leaders, craft division among workers and the management’s own myopia. The multiplicity of unions weakens the bargaining strength of employees.
The futility of multiple unions is being realized by the government and the workers. The government proposes to amend trade Union Act of 1926 to prescribe minimum strength for the formation of the union as 100 or 10 per cent of the total staff, whichever is less. Of late, unions have presented a common front on issues like industrial sickness.
At the 31st session of the Indian Labour Conference held in 1995, unions have demanded better utilization of the fund and felt that the amount should not be used merely for financing Voluntary Retirement Schemes.
4. One of the defects of Trade Union Movement in our country has been the phenomenon of outside leadership. Individuals who are not connected with the factory would assume the leadership mantle of the union. The Trade Union Act also permits outside participation to the extent of 50 per cent of the strength of the office bearers in a union. The Government is planning to reduce this percentage now.
5. The attraction towards central trade union, which peaked during the post-nationalization years, has decreased considerably now. The workers now are more educated and they gradually have realized that independent unions are more advantageous than national union.
Trade Union – Challenges to Trade Unions in 21st Century
1. Traditional jobs/skills may become redundant.
2. Reluctance to accept MNCs, FDIs, FIIs role in rejuvenating the economy.
3. Threat due to outsourcing, vendoring, offloading, contracting.
4. Disinvestment/privatisation.
5. Fragile structure, discredited leadership, shattered finance, slender membership.
6. Industry has to ensure productivity orientation, cost effectiveness, quality consciousness and quick responses, technical adaptiveness, customer driven customised services.
7. Cutting edge will be decided by speed, accuracy, precision, variety, flexibility and perfection.
8. Need for restructuring, realigning, recalibrating and rechannelising.
Trade Union – 10 Major Problems and Weaknesses of Trade Unions in India
The problems and weaknesses of trade unions in India are as follows:
(i) Uneven Growth:
The trade unionism in India is characterized by uneven growth, both industry-wise and area-wise. Trade unions are popular in big industries and the degree of unionization varies widely from industry-to-industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centres mainly due to concentration of industries in that place. Here again, it is the manual workers who are covered by trade union activity.
(ii) Limited Membership:
The number of trade unions in India has increased considerably. But this has been followed by the declining membership per union. This is due to the reason that any seven workers can form a union under the Trade Unions Act, 1926 and get it registered. The total membership of trade unions is only a small part of the total number of wage-earners. As a result, the trade union movement has touched only a small member of the working class population.
(iii) Rivalry among the Union Leaders:
Because of rivalry among leaders workers lose interest in unionism. The employers also get an opportunity to play unions against each other. They are able to take advantage of infighting among unions and may refuse to bargain on the plea that there is no strong representative union. They can argue saying that they don’t know that with whom they should bargain with.
(iv) 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.
Since outsiders have links with political parties, they give greater importance to the interest of their political parties. At times, they don’t mind sacrificing the interest of their followers for the achievement of political ends. Their approach towards labour problems is coloured by political considerations. This hampers the growth of healthy employer-employee relations.
(v) Financial Problems:
The financial position of the trade union is weak because their average yearly income is very low and inadequate. The workers are apathetic towards trade union and do not want to contribute from their hard earned money. The subscription rates are very low. Due to 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 an appropriate system to collect subscriptions.
(vi) Lack of Expert Guidance:
Many trade unions have small number of members and therefore, not in a position to engage the services of experts to advise and guide them, and help them to face the challenge of employers. In other words, their financial position is weak; their bargaining power is weak; and they are not able to make their influence felt.
(vii) 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.
The control which political leaders have acquired over trade unions, the backwardness of the workers and their fear of victimization has discouraged them from actively participating in trade union activities.
(viii) Lack of Education:
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 lockouts in industrial concerns. When labour unions go on strike on illogical grounds, incalculable losses occur to producers, community and the nation.
(ix) Slow Growth of Trade Union:
Trade unions, which have grown very slowly, have not developed as effective voluntary organizations because of the unrealistic labour policies of the Government.
(x) Lack of Unity among Workers:
The loose and amorphous nature of trade union organizations, the majority character of labour, casteism, regionalism and linguism which have divided the workers into heterogeneous groups, and the hostile attitude of the employers are some of the reasons for the weaknesses of trade union.
In short, the political involvement of trade union leaders and union rivalries has weakened the trade union movement. So have the proliferation of trade unions, the absence of functional unity among them, their irregular and small membership, the many unsuccessful strikes which they have sponsored, and the limited number of welfare programmes which they have sponsored and supported.
Trade Union – Suggestions for Strengthening Trade Unions
The following suggestions can be given to make them developed more constructively:
(a) Internal Leadership – This is the need of the hour. These unions should be run by internal leaders only. The outsiders and more particularly politicians should not be allowed their internal labour leadership must be developed. They must be educated and trained in labour leadership techniques and labour welfare activities.
(b) Away from Political Influence – Workers and trade unions must be kept away from political influence. According to Kith the famous trade union leader of USA – “Trade unions should be kept a wary from politics and inception of trade union should be done on the basis of specific industries. Constructive co-operation of all classes can direct properly the trade union movement.” Though labour will be at liberty to participate in the politics but politicians should not use them to serve their purposes.
(c) Education and Training to Workers – The obstacles in the development of trade unions lie in the illiteracy and ignorance of the workers should be provided education so that they can understand their own interest and extend their cooperation. Education will bring new awakening in them and they will not only think of their interest but of the industry as well Training for the organisation of trade unions can also be given to them.
(d) Sufficient Finance – Worker’s financial status is not good. They cannot contribute much to the unions. Hence their financial status may be improved. In this respect national workers policy Minimum Wages Act should be obeyed.
(e) One Industry One Union – According to Short, V.V. Giri one industry should give recognition to one union only so that workers problems can have quite and satisfactory solution. Indian government is considering over this needs amendment in the Trade Union Act.
(f) Constructive Aspect – Trade union should the finances for contractive work, i.e., for the welfare of the workers. Trade union should change their attitude towards employers. They should be treated as cooperating and not opposing and should work for the benefit of the industry. This will change the attitude of employers to employees.
(g) Change in the Employer’s View – Generally employers oppose trade unions. This attitude should be changed. They should think labour are cooperative and so they should be educated as such. By this workers will cooperate with them and their expectations will be fulfilled
(h) Welfare Measures – Trade unions should extend welfare measures to the members and actively render social responsibilities.
(i) Avoid Unnecessary Interference – Trade unions should not unnecessarily interfere in the management decisions. Their interference may reduce the organisational effectiveness.
(j) Formation of a Labour Party – Trade unions should form a labour party and trade union in the country should be affiliated to it will provide adequate strength to the trade unions both in the industry and parliament.
On the basis of above suggestions if trade unions are recognised they will certainly prove successful and both will cooperate. Workers will be developed economically, socially, politically and mentally we can sum-up this discussion by a statement of Planning Commission of India.
“Trade unions should be accepted as a necessary part of the economic and industrial organisation and they should be awakened and activated to fulfil their responsibilities.”