TRADE UNIONS

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Definition of Trade Unions

A trade union is an association of employees designed, primarily to maintain or improve the condition of employment of its members..

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Features of Trade Unions

1) The Trade Union may be an Association Either of the Employers or Employees or of Independent Workers 2) Trades Unions are Relatively Permanent Combinations of Workers are not Temporary or Casual

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3) A Trade Union is an Association of Workers who are Engaged in Securing Economic Benefits for their Members
4) Character of Trade Unions has been Constantly Changing

5) Origin and Growth of Trade Unions have been Influenced by a Number of Ideologies

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Objectives of Trade Unions

1) Providing Income Security 2) Maintaining Job Security 3) Preserving Physical Security 4) Providing Social Security

5) Providing Emotional Security

6) Procuring Political Prowess 7) Fostering Industrial Democracy and Equity

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Reasons for Employees to Join Trade Unions

1) Greater Bargaining Power

2) Minimize Discrimination
3) Sense of Security 4) Sense of Participation 5) Sense of Belongingness 6) Platform for Self-Expression

7) Betterment of Relationships

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Structure-Classification/Types of Trade Unions Union Classified According to Purpose

1) Reformist Unions
a) Business Unions

b)Friendly or Uplift Unions

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2) Revolutionary Unions

a) Political Unions
b) Anarchist Unions

c) Predatory Unions
* Hold-up Union

* Guerrilla Union
d) Dependent Unions

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Union Classified on the Basis of Membership Structure 1) Craft Unions Advantages of Craft Unions
a) Craft unions give most stable relationship

b) They provide needed training though apprenticeship

c) They have strong bargaining power as they comprise of skilled employees

d) They secure high wages and better benefits to their members

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Disadvantages of Craft Unions a) Employer can play one union against another and can also break the unions b) Craft unions have become irrelevant in the modern days due to increasing generality of service conditions of all classes of employees c) These unions keep majority of the workers outside the unionism

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2) General Unions 3) Industrial Unions Advantages of Industrial Unions a) They provide a joint facility for collective bargaining b) They introduced the measure of uniformity in the principle governing all aspects of service and working conditions c) They coordinate sectional claims of different levels and different natures of employees within an industry
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4) Staff Unions

Organizations of Trade Unions

a) National Federations b) Federations of Unions

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Problems of Trade Unions 1) Outside Political Leadership Prevalent in unions due to the following reasons a) The relative immaturity of the Indian trade union movement b) Hold of Political parties on the trade unionism c) Sociological factors like the difference in the sociological background of both workers and employers
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d) Fear of Victimization of the rank and file leaders

e) Illiteracy of the Indian workers and language difficulties

f) Small base of the Indian trade unions and their poor financial and organizational resources g) The role of the state and increased prestige of politicians

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2) Multiple Unions 3) Union Rivalry 4) Small Size of Union Membership 5) Poor Financial Position 6) Inactive Functioning 7) Victimization

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8) Other Problems
a) Illiteracy b) Lack of Integrity c) Uneven Growth d) Heterogeneous Nature of Labor

e) Lack of Interest
f) Absence of Paid Office Bearers g) Category Wise Unions h) Problems of Trade Union Recognition

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Theories of Trade Unions 1) 2) 3) 4) 5) 6) Revolution Theory Non-Revolution Theory(Webbs Theory) Slitcher Theory Coles Theory of Union Control of Industry Commons Environment Theory Mitchells Economic Protection Theory of Trade Unionism 7) Simons Theory of Monopolistic Anti-7) Democratic Trade Unionism
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8) 9)

Perlmans Theory of the Scarcity Consciousness of Manual Workers Tannenaums Theory of Man versus Machine(1951)

10) Hoxies Theory 11) Kerr, Dunlop, Harbison and Myers Theory 12) Gandhi Theory (Sarvodaya Theory)

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Functions of Trade Unions 1) Militant Functions

a) To achieve higher wages and better working conditions. b) To raise the status of workers as a part of industry.
c) To protect labors against victimization and injustice.

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2) Fraternal Functions a) To take-up welfare measures for improving the morale of workers. b) To generate self-confidence among workers. c) To encourage sincerity and discipline among workers. d) To provide opportunities for promotion and growth. e) To protect women workers against discrimination.
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3) Social Functions a) Welfare Activities b) Education c) Publication of Periodicals, News Letters, or Magazines d) Research

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4) Political Functions a) Securing for workers fair wages

b) Safeguarding security of tenure and improvement in service conditions

c) Enlargement of opportunities for promotion and training d) Improvement of working and living conditions e) Provision for educational, cultural, and recreational facilities
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f) Promotion of individual and collective welfare g) Facilitation of technological advance by broadening the understanding of workers with their industry h) Offering responsive cooperation in improving levels of production and productivity, discipline, and high standard of quality.

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Methods of Trade Unions

1) Mutual Insurance 2) Collective Bargaining 3) Legal Enactments 4) Direct Action

a) Strike
b) Other Methods of Withdrawal of Work c) Picketing and Boycott d) Partial Withdrawal of Work e) Uses of Coercive Methods

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Advantages of Trade Unions 1) Protect Workers

2) Create Spirit of Self-Reliance and Self Respect among the Workers 3) Facilitates Negotiation between worker and employer 4) Maintenance of Wages at a Uniform Level 5) Helps to Negotiate Productivity Deals

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Disadvantages of Trade Unions 1) Misguidance 2) High Cost and Low Productivity 3) Coerce of Workers 4) Unnecessary Inducement of Workers

5) Insolvency

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TRADE UNIONS ACT, 1926

Short Title, Extent & Commencement(Sec 1)

1) This act may be called the Trade Unions Act, 1926

2) It extends to the Whole of India 3) It shall come into force on such date as the Central Govt. by notification in the Official Gazette appoint

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Objectives of Trade Unions Act 1) Conditions governing the registration of trade unions 2) Obligations imposed upon a registered trade union 3) Rights and liabilities of registered trade unions

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Definitions (Sec 2) 1) Executive (Sec 2(a)): Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted

2) Officer-Bearer(Sec 2(b)): Office-bearer, in the case of a trade union, includes any member of the executive thereof, but does not include an auditor. No one can be appointed an office bearer unless he has attained the age of 18 years.
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3) Registered Office (Sec 2(d)): It means that office of a trade union, which is registered under this Act as the head office thereof
4) Registered Trade Union(Sec 2(e)): It means a trade union registered under this Act.

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Registrar(Sec 2(f)): 1) A Registrar of Trade Unions appointed by the appropriate Govt. under sec. 3, and includes any Additional or Deputy Registrar of Trade Unions, and

2) In relation to any trade union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the trade union is situated

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Definitions (Sec 2) 1) Executive (Sec 2(a)): Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted

2) Officer-Bearer(Sec 2(b)): Office-bearer, in the case of a trade union, includes any member of the executive thereof, but does not include an auditor. No one can be appointed an office bearer unless he has attained the age of 18 years.
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3) Registered Office (Sec 2(d)): It means that office of a trade union, which is registered under this Act as the head office thereof

4) Registered Trade Union(Sec 2(e)): It means a trade union registered under this Act.

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Definitions (Sec 2) 1) Executive (Sec 2(a)): Executive means the body, by whatever name called, to which the management of the affairs of a trade union is entrusted

2) Officer-Bearer(Sec 2(b)): Office-bearer, in the case of a trade union, includes any member of the executive thereof, but does not include an auditor. No one can be appointed an office bearer unless he has attained the age of 18 years.
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3) Registered Office (Sec 2(d)): It means that office of a trade union, which is registered under this Act as the head office thereof 4) Registered Trade Union(Sec 2(e)): It means a trade union registered under this Act.

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5) Registrar(Sec 2(f)):

a) A Registrar of Trade Unions appointed by the appropriate Govt. under sec. 3, and includes any Additional or Deputy Registrar of Trade Unions, and
b) In relation to any trade union, the Registrar appointed for the State in which the head or registered office, as the case may be, of the trade union is situated

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6) Trade Dispute(Sec 2(g)): It means any dispute between employers and workmen, or between workmen and workmen, or between employers and employers, which is connected with the employment or nonemployment, or the terms of employment, or the conditions of labor, of any person.

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7) Trade Union (Sec2(h)):According to sec 2(h) of the Indian Trade Unions Act, 1926, Trade Union means any combination whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions; provided that this Act shall not affect:
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a) Any agreement between partners as to their own business b) Any agreement between an employer and those employed by him as to such employment
c) Any agreement in consideration of the sale of the goodwill of a business or instruction in any profession, trade or handicraft

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Registration of Trade Unions

1) Appointment of Registrars(Sec. 3)
2) Mode of Registration (Sec. 4)

a) Application for Registration

b) Applicants Ceasing to be Members or Dissociating not to Affect Application unless their Number is More than Half

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3) Application for Registration to Registrar(Sec. 5)

4) Registration (Sec. 8)
5) Registration Certificate (Sec. 9)

6) Cancellation of Registration (Sec. 10)

a) On the Application of Trade Union b) At the Will of the Registrar

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7) Appeal (Sec. 11)

8) Registered Office (Sec. 12)

9) Incorporation of Registered Trade Unions (Sec. 13) 10) Certain Acts not to Apply to Registered Trade Unions (Sec. 14)

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Rights and Liabilities of Registered Trade Unions 1) Objectives on which General Funds may be Spent(Sec.15) 2) Constitution of a Separate Fund for Political Purpose (Sec.16) 3) Right to Inspect Books of Trade Union(Sec.20) 4) Disqualification of Office-Bearers of Trade Union(Sec.21A)

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5) Dissolution of Trade Union(Sec.27)

6)Returns (Sec.28)
7) Penalties and Procedure

a) Failure to Submit Returns(Sec.31)

b) Supplying False Information Regarding Trade Union(Sec.32) c) Cognizance of Offence(Sec.33)

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MANAGEMENT OF TRADE UNIONS IN INDIA 1) Trade Union Constitution 2) Essential Elements of a Union a) Preamble b) Name c) Declaration of principles d) Membership

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e) Rights and obligation of members f) General assembly/delegates conference; election at all levels g) Duties and responsibilities of officials h) Executive committee i) Standing committee j) Meeting rules k) Finance/funds l) Collection of dues

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m) Auditing n) Allowances 0) Benefits to members 1) Scholarships 2) Fellowships 3) Strike funds 4) Death benefits 5) Procedure for winding up, if desired

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3) Effective Trade Union a) Enroll all workers in the concerned branch/establishment and is thus representative of the target group of workers

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