University of Petroleum & Energy Studies

College of Legal studies

B.A., LL.B. (Hones.), Energy Laws

Semester - VI

Academic YEAR: 2017 -18 SESSIONS: Feb- May

Project

For

LABOUR LAW-1

Under the Supervision of: Mr. Udit Raj Sharma

Name: ROHAN PATHAK

Sap No: 500044988

Roll No : 81
 HISTORICAL EVOLUTION OF TRADE UNIONS IN INDIA

Introduction

The project talks about the history behind the emergence of the trade unions in India. The trade union
of India was historically developed from the trade union movement of India. Trade union movement in
our country has a century-long history. . Many strikes were declared consequently and most of them
were successful. This success led to the formation of several unions. With the protest and revolts
regarding the rights and the privileges of the workmen, the emergence of trade unions came into being.
The nature of the revolutions prior to 1918 were humanitarian in nature; meaning that revolutions took
place out of sympathy and did not have a strong impact on the employers. But after the year 1918, such
revolts and protests became ideological in nature, people started to think as they have to work for
themselves and anything that is being protested is because their right to some privilege is being
hampered. And due to this reason, trade unions came into existence.

It was not until the close of First World War, that the modern trade Union movement really took
permanent roots in Indian Soil.The establishment of Bombay Mill Hands’ Association is considered as
the first phase of the trade union movement in India. In 1905, the Printers Association of Calcutta and
Dock Union Board in Bombay were formed.

There was labor unrest in India at the end of the First World War. In several industries, the workers went
on strikes to secure wage increases. The Russian Revolution and the Industrial Labor Organization have
inspired the Indian laborers to launch trade unions like the Spinners Union and Weaver’s Union which
had been established in Madras and Ahmedabad respectively.

But the important step in the history of Indian trade unionism was the foundation of All India Trade
Union Congress in 1920. There had been a steady progress of trade union movement in India. However,
the decision of the Madras High Court that the formation of trade union is illegal stood in the way of its
development.

In 1926, the Trade Unions Act was enacted to give legal recognition to the different trade unions. The
said Act also .conferred certain privileges on the registered trade unions in an industrial unit. The Trade
Unions Act has made it compulsory on trade unions to use their funds for workers interests and to
prescribe a fee of at least 25 paisa per works. Most of the members of the executive committee of a
trade union must be employed in the factory.

In 1930, the climate was not favorable to the growth of trade Union movements in India. The
prosecution of the communists involved in Meerut conspiracy case and the failure of Bombay Textile
strike of 1929 retarded the trade union movement. Moreover the serious economic depression was
added with it, during the period.
In the next phase, the Second World War gave a great impetus to the trade union movement in India.
The rising cost of living forced laborers to organize themselves into trade unions. At the same time the
Second World War split the trade union leaders on the question of participating in the war. Industrial
unrest was also increased during this period. As a result; there was a marked increase in both the
number of trade unions and of organized workers.

With independence and partition, the country was plunged into growing unemployment. A series of
strikes occurred, in the country. The All India Trade Union Congress was split up as a result of which the
Indian National Trade Union Congress (INTUC) was formed in 1947 under the control of congress party.
The Hind MazdoorSabha (HMS) was formed by the socialist Party in 1948, and United Trade Union
congress (UTUC) was formed in 1949. Recently, Centre of Indian Trade Unions (CITU) has been formed
by the Communist Party (Marxists).

There are more than fourteen thousand registered trade unions in India. The steady growth of trade
unions in India is due to the political consciousness among the laborers as well as the governmental
measures to facilitate collective bargaining through appropriate legislation.

A landmark in the history of labour movement was the enactment of the Trade Unions Act 1926.

The Act gave a legal status to the registered trade unions and conferred on them and their members a
measure of immunity from civil suits and criminal presentation. Registration of union gave them
respectability before employers and the general public.

Towards the end of 1920s, there was a split in the union movement, the split being caused by the
leader’s ideological differences. The AITUC was captured by the communists. The moderates formed a
new organisation, called All India Trade Union Federation. Ideological differences and splits had their
effect on strikes too. Majority of the strikes failed.

Unlike the 1920s, the 1930s were not favourable to the trade union movement. The presentation of the
communists involved in the Meerut conspiracy case and the failure of the Bombay textile strike of 1929
brought a lull in trade union activities.

The Economic depression of the period also added to the dull phase of the union movement.
Retrenchments and strikes were common, the latter being mostly ineffective. There were further splits
in the movement, but just before the World War II some unity was achieved.

After World War II

The unity was shattered during the World War II because of ideological differences and the mounting
cost of living. Industrial unrest increased and the Govt, banned strikes and lockouts invoking the
Defence of India Rules. Luckily workers realized the need for an organized movement to secure relief.
This realisation led to an increase in the number of unions.
The aftermath of independence was not good for unions. The hopes of workers to secure better
facilities and wages from the national government were not realized. There were large-scale unrest and
strikes and lockouts multiplied.

The disunity in the trade union ranks was aggravated by the starting of three central
labourorganisations, namely the INTUC in 1947, the Hind MazdoorSabha (HMS) in 1948, and the United
Trade Union Congress (UTUC) in 1949.

As years went by, more unions and central organisations came into being the movement became deeply
entrenched as of today, there are 50,000 registered unions and most of them are affiliated to one or the
other central trade union.

A brief Lookout In India

• Trade Union formed in 1890, Bombay Mill Hands Association by Mr.Lokhande to demand
amendment of Factories Act 1918. Then several other unions followed to fulfill specific demands
and also to lend support to national movment.

• In 1918:-Ahmedabad Textile Labour Association was borned when dispute was settled by the
intervention of Mahatma Gandhi.

• In Madras B.P.Wadia formed Madras Labour Union

• International Labour Organization (ILO) was established in 1919,This influenced formation of All
India Federation of Trade Unions.

• After world war I, in 1919, large number of strong trade unions were formed by Annie Besant in
Madras and Mahatma Gandhi in Ahmedabad. After 1924, all major All India Left-wing Trade
Unions were formed for class struggle.

Development of Trade Union in India

Trade unions are formed and develop ed on different criteria. Some of the criteria are:

(1) Craft basis

(2) Industrial Unions

(3) General grouping based on place and

(4) Federations.

1. Craft Unions

In this organization, the labour class is grouped based on particular trade or occupation. This category is
mainly amongst the white collared employees. The measures are mostly in the horizontal system and
craft-conscious rather than class conscious. This will have a lot of commonality in thinking and approach
to problems resolution. The bank employees’ union, doctors’ union, lawyers’ association, teachers’
association come under this category.

2. Industrial Unions

A particular category of industry will have their own unions. All crafts and trades coming under that
industry are part of the union. Textile mill unions, Steel Industry Unions, Mill MazdoorSangh,
GriniKamgarUnion’s are some of the examples of industrial unions in India. They form a strong force in
collective bargaining. They cover all welfare of similar industry workers in a city or industrial town.
Industrial unions are more vocal, volatile and indulge in agitation and strikes. Similarly, these industries
face more lockouts and arbitration for disputes redressal.

3. General Union

This is a conglomerate group of different industry employees forming a union. This happens normally in
industrial towns, ancillary units, and SSI units in a city or suburb. Examples are Peenya Industrial
Workers’ Union, Thane Industry employees’ unions and Jamshedpur labour union.

WHY EMPLOYEES JOIN UNION ?

Employees join union for following reasons :

• Trade unions will protect employee’s economic and vocational interest. As such , it serves as
instrument of defence and security.

• Trade unions look after employees welfare.

• Trade unions safeguard and improve service conditions .

• Trade unions will communicate their views to the management

 • Trade union will restrain managerial authoritarianship.It will oppose management discretions.

• Trade union will strengthen their bargaining power. It is seen as an instrument regulating the
relationship between employers and employees.

• Trade union highlights class distinction to reduce workers dissatisfaction.

• To exercise leadership role as office-bearers of trade union. This satisfies their ambition to get
ahead which they aspire.

UNIONS PROVIDE THE FOLLOWING:

a. Job security to the workers / employees.

b. Safeguard workers interest

c. Improve their working conditions

d. Helping employees in developing skill according to the job entrusted them

e. Enable the worker participation in management

f. Protect rights of the workers

g. Helping in maintaining good industrial relations

h. Negotiating with management on industrial conflicts/ disputes

FUNCTIONS OF TRADE UNION

 FUNCTIONS RELATING TO TRADE UNION MEMBERS

1) Safeguard workers interest against explotion by employers

2) Protect workers from unfair labour practices by employer.

3) Provision of health, safe and conducive working conditions.

4) To ask for rewards to be associated with work performance.

5) Get benefits from organization for health, housing, education etc.

6) To help in grievance redressal of employees.

7) To foster labour-management participation and cooperation.

8) To make workers conscious of their rights and duties.

(B) FUNCTIONS RELATING TO ORGANIZATIONS

1) To increase production and productivity.

 2) To help maintenance of discipline.

3) To promote cordial relations between the management and workers.

4) To create favourable opinion about management among workers.

5) To facilitate effective communication with the management.

(C) FUNCTIONS RELATING TO UNION

1) To improve financial position by increasing subscription etc

2) To train members in leadership.

3) To augment communication between union and members.

4) To crub inter-union rivalary.

5) To avoid unfair labour practices.

6) To review relevance of union objectives in the context of social change.

7) To maintain accounts & other administrative records of union.

(D) FUNCTIONS RELATING TO SOCIETY

1. To help national development e.g. family planning, national integration, afforestration.

2. To launch campaigns against social evils, i.e. corruption, communalism, cateism, price rise,
hoarding, smuggling, dowry, illiteracy etc.

3. To help and co operatewith the government and mobilise people participation.

WEAKNESSES OF TRADE UNION MOVEMENT IN INDIA

i. Multiplicity of trade union as only 7 persons can from a union

ii. Inter-union rivalry

iii. Intra-union factions / rivalry

iv. Absence of criteria for recognition of sole bargaining agent

v. Politicalisation of trade union and association of outsiders with enterprise unions.

vi. Philosophy and approaches which advocated

vii. Adversarial relationship (war-fare) conflict with management

viii. Class struggle: oppression and exploitation by employers.
ix. Adoption of pressure tactics, militancy, indiscipline, intimidation, black-mailing, towards
management
x. No role played as social change agents but self-centered
THE TRADE UNIONS ACT 1926

• The Trade Unions Act 1926, is one of the old enactments in the field of Labour Laws but it is a
conservative piece of legislation in as much as it as it deals only with the registration of the trade
unions and legal status of registered trade unions.The constitution of India confers on all citizens
a fundamental right to from associations or unions.

• The right to form union is thus doubly recognized in India by the constitution of India and The
Trade Unions Act 1926.

What is the objective of the Trade Unions Act?

The limited objective of this Act provide for the registration of the trade unions and to confer on
registered trade unions certain protection and privileges.

What is the meaning of “trade union”

As ordinarily understood the trade union means a combination formed for the purpose of regulating
the relations between workmen and employers. The definition of trade union given in The Trade Unions
Act 1926, however includes 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.

What is the procedure for the registration of a trade union?

(a) At least seven members of the trade union have to make an application in the prescribed form
and accompanied by the prescribed fee to the Registered for Trade unions for the registration of
the trade union the application must be accompanied by a copy of the rules of the trade union
and should give particulars about its name and addresses its members and officers.

(b) The Registrar if he is satisfied that the trade union has complied with all the requirements of the
Act will register the trade union and issue a certificate of registration to it

(c) The certificate of registration will be conclusive evidence that the trade union has been duly
registered under the Act.

When there is an exiting Trade Union registered under the name of all India Trade union congress
(AITUC) can the registrar grant registration to a new Trade Union under the name of AITUC hawkers
Union?

Section 7(2) of the Trade Union Act 1926 reads as under if the name under which a trade union
proposed to be registered is identical with that by which any other existing trade union has been
registered or in the opinion of the registrar so nearly resemble such name as to be likely to deceive the
public or the members of either trade union the registrar shall require the person applying for
registration to alter the name of the trade union stated in the application and shall refuse to register the
union until such alteration has been made considering section 7 of the Act It will not be possible for the
registrar to register any other union under the name of AITUC hawkers union which is similar or
deceptively similar to the name of All India Trade Union Congress (AITUC).

Is registration of trade union compulsory?

The Trade Union Act 1926 does not make registration of trade registration of a trade union compulsory.
But it is advisable to get a trade union registered under the Act because the Act confers many rights on a
registered trade union.

Is a trade union required to have a certain minimum membership?

Section 9-A required that registered trade union shall at all time continue to have not less than ten per
cent or one hundred of the workmen whichever is less subject to a minimum seven engaged or
employed in an establishment or industry with which it is connected as its members.

Can a trade union registered under the trade union Act 1926 be registered again under the Societies
Registration Act 1860 the Co-operative Societies Act 1912 or the companies Act 1956?

A trade union which is already registered under the trade union Act 1926 cannot be registered again
under the societies registration Act 1860 the Co-operative societies Act 1912 or the companies Act 1956
and the registration of any such trade union under any of the said Act will be void.

Can the registrar of trade union register a union of members of the Armed forces?

The registration of such union initially granted by a mistake can be made invalid and therefore
cancelled.

What is the legal status of registered trade union?

1. A registered trade union is a body corporate having a perpetual succession and common seal.
2. It has power to acquire and hold both movable and immovable property and to enter into
contracts.
3. It can sue and be sued by its own name
4. Its office bearer or member cannot be prosecuted for criminal conspiracy for following its
legitimate objects
5. No legal proceeding can be filed in any civil court against it in respect of any act in furtherance
of a trade dispute even if such act
6. Induces some other person to break a contracts of employment
7. Is in interference with the trade business or employment of some other person
8. Is in interference with right of some other person to dispose of his capital or his labour as he
wills.
 9. Any agreement between its members is not void or voidable even if its object are in restraint
of trade
Can a trade union represent a workmen engaged or employed in an industry with which the trade
union is not connected?

If the constitution of a trade union does not allow it to represent a workmen engaged or employed in a
particular industry it is not entitled to represent such a workmen.

Is the immunity from civil suit in respect of acts of a trade union its office bearer and members
available under section 18 of the Act absolute?

The immunity from civil suit will not be available in respect of acts which are unlawful tortuous or
violent and which fall out umbrella of protection of section 18 of the Act.

In what circumstances the registration of a trade union can be cancelled?

The registrar or trade union can withdraw or cancel certificate of registration of a trade union if-

a) The trade union applies for its cancellation

b) The registrar is satisfied that the certificate has been obtained by fraud or mistake

c) The trade union has cased to exist

d) The trade union has willfully contravened any provision of the Act

By an amendment to an Act , the registrar of trade union is empowered to withdraw or cancel thee
registration of any trade union workmen if it ceases to have the requisite number of members.

What is the procedure the registrar has to follow before the certificate of registration of trade union is
withdrawn or cancelled?

The registrar has to give to the trade union not less than two months previous notice in specifying the
ground on which it is proposed to withdraw or cancel the certificate.

What is the scope of the power of the registrar of trade union with regard to cancellation of the
registration of trade union?

The registrar can invoke the power of cancellation of registration of a trade union only if there is
sufficient material before him to establish that the trade union concerned has committed willful
contravention of any provision of the Act in other words unless the international violation of any
provision of the Act is established the registrar cannot invoke the said power.

Does the registrar of trade unions possess the power to revoke or withdraw an order of registration of
a trade union?
There cannot be a withdrawal or revocation of the initial order of de-registration of trade union in the
absence of any statutory provision authorizing the registrar to do so.

What are the functions of the registrar of trade unions?

The registrar of trade union performs the following functions

a) Registration of trade unions

b) Withdrawal or cancellation of registration of trade unions

c) Sanction of prosecution for the offence committed under the trade unions Act 1926

Can a minor be admitted as a member of a registered trade union?

If a person has attained the age of 15 years he can be admitted as a member of a registered trade union
provided that there is no prohibition in the rules of the trade union on admitting any minor as its
members.

Does a person automatically ceases to be a member of the union on cessation of employment?

There is no provision in the Act providing for automatic cassation of membership on cessation of
employment

What are rights of a members of registered trade union?

Every office bearer or member of a registered trade union has a right to inspect the books of accounts
and also the list of members of the trade union at such times as may be provided for the rules of the
trade union.

Can any person be chosen as an office bearer of a registered trade union?

For being qualified to be chosen as an office bearer of a registered trade union a person (i) must have
attained the age of 18 years; and (ii) must not have been convicted of any offence involving moral
turpitude and sentenced to imprisonment, unless a period of 5 years has elapsed since his release.

Is there any restriction on the number of outsiders who can be the office bearers of a registered trade
union?

The act providers that the number of outsiders shall not be “ore than one-third of total number of office
bearers or five, whichever is less.”

Can the recognition of a trade union be withdrawn without giving to the union opportunity of being
heard in the matter?

A refusal to grant recognition and withdrawal of recognition once granted cannot be placed on the same
footing though the grant of recognition to a trade union may be voluntary recognition once granted to it
could not be withdrawn without giving to it opportunity of being heard in the matter.
Does the registrar of trade unions, under sections 8 and 28 possess the power to hold any quasi-
judicial enquiry?

The registrar of trade unions under sections 8 and 28 can hold only an administrative enquiry he has no
power under those sections to hold any quasi-judicial enquiry by allowing parties to examine witnesses
and allowing such witnesses to be cross-examined.

Does the registrar of trade union under section 28 possess the power to decide any dispute between
rival office bearers of a trade union?

There is no provision in the Act empowering the registrar of trade union to exercise any
superintendence or control over the internal affairs of a trade union

Is it permissible for a trade union constitute a political fund apart from its general fund?

It is permissible for a registered trade union to constitute a separate fund for the promotion of the civil
and political interest of its member contribution to the fund will be optional and no member will be
compelled to contribute to the fund consequently a member who does not contribute to the fund shall
not be deprived of any benefits of the trade union.

Can a trade union change its name?

A registered trade union can change its name with the consent of not less than two thirds of the number
of its member and after following the procedure prescribed under section 25 of the Act.

Is a civil suit for damages against striking workers maintainable?

The trade union the office bearers and the member are insulated against a suit or other legal proceeding
linked with the strike of the workers the trade union Act through Section 18, unfolds un umbrella of
protection to them.

Does the registration of a trade union confer any right on the said union to be recognised by the
employer?

The registration of a trade union does not confer any right on the said union to be automatically
recognized by the employer

Is it permissible for any two or more registered Trade Unions to amalgamate?

It is permissible for any two or more registered Trade Unions to become amalgamated together as one
Trade Union. This can be done after the votes of at least one half of the members of each or every such
Trade Union are recorded at least sixty per cent of the votes recorded are in favour of the proposal the
procedure concerned unions have also to follow the prescribed under section 25
What is the procedure for dissolution of a trade union?

The dissolution of a registered trade union shall be effected in accordance with the rules of the trade
union and notice of the dissolution shall be sent to the registrar of trade union if the rules do not
provide for the distribution of funds the registrar shall divide for the funds among the members
proportionate to the amounts contributed by them by way of subscription during their membership.

What are the offences under the Act and what is the punishment for them?

1. If any office bearer of registered trade union makes a default in giving any notice or sending any
statement as required by the Act, he would be punished with fine uptoRs. 5.
2. If any person willfully makes a false entry in the annual Return of registered trade union, he
would be punished with fine uptoRs. 500.
3. If any person, with intent to deceive, gives an incorrect copy of the rules of registered trade
union to a member or person intending to become a member of the trade union, he would be
punished with fine uptoRs. 200.

Is a Trade Union required to maintain any registers and submit any returns?

Every registered Trade Union is required to maintain the following books and registers

i. Register of membership and subscription.

ii. Register of receipts and disbursements.

iii. Minute book of meetings,

iv. Register of stock, tools and plant,

v. Machine numbers & subscription receipt book,

vi. Register of receipts and disbursement for the political fund,

vii. A file of vouchers.

Every registered Trade Union is required to submit to the registrar of Trade Unions annual returns of
receipts and expenditure as well as assets and liabilities in the prescribed form, by the 30th day of April
in each year.

CHANGING SCENARIO OF TRADE UNIONISM

After the liberalization process in the economic system which started in 1990s, there has been change in
the trade unionism too. Such changes are of the following types and are expected to proceed in the
same direction in near future.
 1. There is decreasing attraction of employees from industrial sector towards Unionism.
This is evident by the decreasing number of trade union membership. In fact, attraction
towards unionism is losing momentum throughout the world.

2. There is increasing depoliticisation of trade unions. This is happening in two ways. First,
many trade unions are not affiliated to any central trade union. Second, many central
unions are passing control to non-politicians though there is a long way to go.

3. Trade union leaders have become more mature in their approach. Many trade unions
have adopted constructive & co-operative approach in handling industrial relations,
problem rather than sticking to age-old militant approach.

4. Many unions have accepted the realities of economic reforms. Their approach has
turned to eradicate the adverse impacts of reforms rather than stalling the reforms as
such. Trade union circles now discuss more about productivity, total quality
management, quality of work life, competitionetc, rather than making plans to go for
strikes and other pressure tactics.

5. Trade unions have accepted many new employee management practices like VRS etc,
which used to be bone of contention a few years ago

There is a possibility to make the company union-free. Employees who joined unions feel dissatisfied
with the union working style . Therefore, management itself can take certain steps to modify those
factors causing dissatisfaction.

PROBLEMS OF TRADE UNION MOVEMENT IN INDIA

The position of trade unionism in India is not very sound. In fact, the trade union movement is wanting
in many respects. This is because of the fact that the Indian trade union of today suffer from many
problems. A brief account of these problems is given below:

Uneven Growth

Historically Trade union activities were concentrated in large scale industry sector and there too in
regard to manual labour only and mainly in bigger industrial centers for example textile workers in
Mumbai,Ahmedabad, Indore, Kanpur and plantation labour in Assam, West Bengal, Tamil Nadu, and
Kerala The degree of unionization varies from industry to industry.

Low Membership

The number of trade unions in India has increased considerably. But this has been followed by the
declining membership per union. Moreover, the rivalry among the leaders of trade unions has resulted
in multiplicity of unions, thereby reducing the average size of membership per union.

Outside Leadership
Another remarkable feature of trade unionism in India has been domination by outside leadership. Most
of the trade unions in India have professional political leadership. The leadership is not rooted in the
working class. The leadership of professional politicians is interested in exploiting workers for their
political objectives. The political leadership is actually harmful to the cause of the working class, strikes
are prolonged by political leaders for personal prestige. Very often negotiations with employers fail due
to such political leadership. The interest and welfare of the workers is very often ignored. Thus outside
leadership of politicians is a major weakness of trade unions in India.

Multiplicity of Union

Another problem of trade unionism in India is that of multiplicity of unions. There exist many trade
unions in the same establishment. There are at times as many as twenty unions in the same plant. The
existence of this phenomenon can be attributed partly to the domination of outside leaders and partly
to the labour laws .The Trade Union Act 1926 perrmits any association of seven workers to be registered
as a union, and confers upon it certain rights. Such a union is allowed by law to raise disputes, go to
conciliation, files suits, and even bargain with employers. Such provisions in the law naturally encourage
small section of workers to form separate unions. Any seven persons can get together to form a union.
Many a times, it is contended that multiplicity of unions is because of outside leaders. But more
pertinent point is that they are able to form new union because law permits and gives sanctity to the
small unions.

Intra-Union Rivalry

The existence of multiple unions leads to problem of union rivalry. Unions try to play down each other in
a bid to gain greater influence among workers. In the process, they do more harm than good to the
cause of unionism as a whole. Employers are given an opportunity to play union against each other.
They can refuse to bargain on the contention that there is no true representative union. Besides this,
the workers own solidarity is lost. Employers are able to take advantage of infighting between workers
groups. Solution to this problem can be found in secret ballot vote. After some stipulated time period,
the workers should go to polls to elect their representative union for that duration. This would reduce
both multiplicity of union and inter-union rivalry.

Absence of Paid Office-Bearers

Majority of unions do not have whole time paid office-bearers. Many union activists work on honorary
basis. They devote only limited time and energy to trade union activities. The domination of political
leaders is also due to the absence of full time union workers. The union office bearers are also not
trained properly. They lack the knowledge of basic principles and practices of trade unionism.

Weak Financial Position

The financial position of the trade union is generally weak because their average yearly income is low
and inadequate . The subscription vary from union to union and are quite low in most of the unions.
Under conditions of multiplicity of unions interested in increasing their membership.keep the
subscription rate unduly low. As a result, the funds with the unions are inadequate and they cannot
undertake welfare programmes for their members. In such a situation, the subscription rates may be
raised. It is argued that the financial condition of Indian workers is not too good to afford the increased
rates. This, however, is only a myth. Over the years the average income of the workers has been on an
increase.It is wrong to plead that they cannot afford higher subscription rates for union membership.

Subscription dues unpaid

Another important reason for the weak financial position of union is that large amounts of subscription
dues remain unpaid. The names of constant defaulters continue to appear on the membership registers
of most of union. They are neither expelled nor cease to be members. Rules for expulsion of defauting
members are seldom invoked. Besides this,unions do not have proper staff and organization to collect
subscription. A solution to the problem of collection subscription on regular basis can be found in the
check off system. Under this system, the subscription is deducted at the time of making wages payment
by the employer. The amount is later on handed over union of which the worker is a member.

Lack of Interest

In order to make the trade union movement succeed, the members of trade unions should take keen
interest in the union affairs. They should understand what unionism is all about and what demands it
makes on individual members. They must feel the need to give the movement necessary support for a
common cause. The attendance at the general meeting of the unions is very low. Under such
circumstances, trade unionism cannot be expected to make much progress. This gives rise to another
problem that unions ceases to function democratically. They are run by a few interested persons who at
time have their own axe to grind. This problem can be removed by educating workers of their rights and
duties and developing in them a sense of responsibility.

MEASURES FOR STRENGTHENING OF TRADE UNIONS

1. Development of strong base

A strong trade unions movement is necessary both to safeguard the interests of the members and to the
help in achieving the targets of production. To develop a strong movement, it is necessary that trade
unions with different affiliations come together on the basis of a common programme covering
objectives, methods, and procedures.

2. One union in one industry

Multiplicity of unions in the same plant leads to inter- unions rivalry which ultimately cuts at root of the
trade union movement. It weakens the power for collective bargaining, and reduces the effectiveness
of workers in securing their legitimates rights. Therefore, there should be only one unions is one
industry.
3. Elimination of Political influence

The linking of unions with political parties is highly dangerous for the healthy growth of trade unionism
in India . It diverts the attention of unions from the problem of working class. The unions must realize
the utter uselessness of party politics in trade unionism.

4.Development of internal Leadership

It is desirable to switch over to working class leadership from out side leadership. Leadership should be
developed from within the rank and file of the workers. This will help movement to gain strength in
regard to trade union leadership. The National Commission on Labour (NCL) recommended that:

(1) there should be no ban on non-employees holding the positions in the executive of the union

(2) steps should be taken to promote internal leadership and given it more responsible role

(3) permissible limit of outsiders in the executive of the union should be reduce to 25 per cent of
executive members

(4) ex-employees should not be treated as outsiders.

5. Paid Union Officials

Generally, the trade unions avail the services of the honorary workers due to paucity of funds this
practice. In large union set up, it is better to have services of outsiders with relevant experience.

6. Financial Stability

Most of the trade unions in India are financially weak. This creates various difficulties before the unions
and restricts their activities. The financial problems of the unions can be solved by raising the
membership, and collecting more contributions from all members .