Trade Unions : Introduction

An organization formed by workers to protect their interests, improve their

working conditions etc.
It leverages on the strength of numbers to negotiate better deals with owners and
also owners find it easier to deal with one group rather than individual workers.
First Phase
1850-1900 : Inception of trade unions guided by educated philanthropists and social
workers
Many strikes took place against wages and working hours which made people aware of
power of unions

Second phase
1900-1947 : Organized trade unions, with as any as 125 unions in 1920

Third phase
After independence : Government worked in sync with Trade Unions for greater economic
develoment

Types of Trade Unions

Craft and General unions
Built around a specialized skill that requires some training. Air Indias Navigators
union. General unions are open to everyone.

Closed shop/Union Shop

In one case union fulfills all labor requirements and in the other all laborers are
required to be a part of the union.

Check of
Management deducts a small part of salary from all union members and gives
lumpsum to the union to ensure uniformity and equal contribution.

Blue collar
These are the workers who work on shop floor and involved in operation of plant.

White Collar
They are involved in desk jobs and usually paid better than the blue collar
workers.

The Trade Union(Amendment) Act

2001

Minimum 10% or 100 employees, whichever less, are required to

be members of union for it to be registered
Minimum 10% or 10 employees, whichever less, should be
member of the union at all times to continue
Appeals for non-registration/registration can be filed before the
Industrial Tribunal/Labour court
All members, except a maximum of 1/3 rd of union office bearers
should be member of establishment/industry connected with the
union
Union is authorized to set up political funds
Minimum subscription rate for union members is Re 1 pa for rural
and Rs 3 pa for urban workers