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CHANAKYA NATIONAL LAW UNIVERSITY CONTENTS I. Introduction …………………………………………………………..5-8 -trade union definition -origin and early history -objectives of trade union II. Trade union movement in India……………………………………..9-16 -phases of trade union -central trade union organizations in India III. Trade Union Act,1926……………………………………………………..17-18 IV. Importance of trade union and social justice……………………………..19-24 -reasons for joining trade unions -functions of trade union -advantages and problems of trace union V. Conclusion…………………………………………………………………25 Bibliography………………………………………………………………26 1 | Page

Trade Union Movement and Social Justice

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Page 1: Trade Union Movement and Social Justice

CHANAKYA NATIONAL LAW UNIVERSITY

CONTENTS

I. Introduction …………………………………………………………..5-8

-trade union definition

-origin and early history

-objectives of trade union

II. Trade union movement in India……………………………………..9-16

-phases of trade union

-central trade union organizations in India

III. Trade Union Act,1926……………………………………………………..17-18

IV. Importance of trade union and social justice……………………………..19-24

-reasons for joining trade unions

-functions of trade union

-advantages and problems of trace union

V. Conclusion…………………………………………………………………25

Bibliography………………………………………………………………26

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CHAPTER I : INTRODUCTION

TRADE UNION

Definition

Organization whose membership consists of workers and union leaders, and whose principal

purposes are to (1) negotiate wages and working condition terms, (2) regulate relations

between workers (its members) and the employer, (3) take collective action to enforce the

terms of collective bargaining, (4) raise new demands on behalf of its members, and (5) help

settle their grievances. Trade unions are generally classified as: (a) Company union that

represents interests of only one firm and may not have any connection with the trade union

movement. Also called house union, a company union is often a bogus one and generally

illegal. (b) General union that represents workers from several firms from the same industry.

Also called industrial union. (c) Craft union that represents skilled workers in a particular

field such as carpentry or welding.

A trade union or labour union is an organization of workers who have banded together to

achieve common goals in key areas such as wages, hours, and working conditions, forming a

cartel of labor. 

The trade union, through its leadership, bargains with the employer on behalf of union

members and negotiates labor contracts with employers. This may include the negotiation of

wages, work rules, complaint procedures, rules governing hiring, firing and promotion of

workers, benefits, workplace safety and policies. The agreements negotiated by the union

leaders are binding on the rank and file members and the employer and in some cases on

other non-member workers.

These organizations may comprise individual workers, professionals, past workers, or the

unemployed. The most common, but by no means only, purpose of these organizations is

"maintaining or improving the conditions of their employment".

Over the last three hundred years, many trade unions have developed into a number of forms,

influenced by differing political and economic regimes. 

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ORIGIN AND EARLY HISTORY

The traces of trade unions' existence could be traced from the eighteenth century; the rapid

expansion of industrial society was to draw women, children, rural workers, and immigrants1

to the work force in larger numbers and in new roles. Trade unions have sometimes been seen

as successors to the guilds of medieval Europe, though the relationship between the two is

disputed. Medieval guilds existed to protect and enhance their members' livelihoods through

controlling the instructional capital of artisanship and the progression of members from

apprentice to craftsman, journeyman, and eventually to master and grandmaster of their craft.

A labor union might include workers from only one trade or craft, or might combine several

or all the workers in one company or industry. Since the publication of the History of Trade

Unionism2 by Sidney and Beatrice Webb, the predominant historical view is that a trade

union "is a continuous association of wage earners for the purpose of maintaining or

improving the conditions of their employment." 

A modern definition by the Australian Bureau of Statistics3 states that a trade union is "an

organization consisting predominantly of employees, the principal activities of which include

the negotiation of rates of pay and conditions of employment for its members."

1 From other nations

21894

3 ABS

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OBJECTIVES OF TRADE UNION

Trade unions are formed to protect and promote the interests of their members. Their primary

function is to protect the interests of workers against discrimination and unfair labor

practices. Trade unions are formed to achieve the following objectives:

Representation

Trade unions represent individual workers when they have a problem at work. If an

employee feels he is being unfairly treated, he can ask the union representative to help

sort out the difficulty with the manager or employer. Unions also offer their members

legal representation. Normally this is to help people get financial compensation for

work-related injuries or to assist people who have to take their employer to court.

Negotiation

Negotiation is where union representatives, discuss with management, the issues

which affect people working in an organization. There may be a difference of opinion

between management and union members. Trade unions negotiate with the employers

to find out a solution to these differences. Pay, working hours, holidays and changes

to working practices are the sorts of issues that are negotiated. In many workplaces

there is a formal agreement between the union and the company which states that the

union has the right to negotiate with the employer. In these organizations, unions are

said to be recognized for collective bargaining purposes.

Voice in decisions affecting workers

The economic security of employees is determined not only by the level of wages and

duration of their employment, but also by the management’s personal policies which

include selection of employees for lay offs, retrenchment, promotion and transfer.

These policies directly affect workers. The evaluation criteria for such decisions may

not be fair. So, the intervention of unions in such decision making is a way through

which workers can have their say in the decision making to safeguard their interests.

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Member services

During the last few years, trade unions have increased the range of services they offer

their members. These include:

o Education and training - Most unions run training courses for their members

on employment rights, health and safety and other issues. Some unions also

help members who have left school with little education by offering courses

on basic skills and courses leading to professional qualifications.

o Legal assistance - As well as offering legal advice on employment issues,

some unions give help with personal matters, like housing, wills and debt.

o Financial discounts - People can get discounts on mortgages, insurance and

loans from unions.

o Welfare benefits - One of the earliest functions of trade unions was to look

after members who hit hard times. Some of the older unions offer financial

help to their members when they are sick or unemployed.

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CHAPTER II : TRADE UNION MOVEMENT IN INDIA

During the freedom movement, trade unions were patronised by political parties and the

freedom movement helped trade unions to be recognised as legal labour organisations to

promote the interests of the working class, more especially in the organised sector of the

economy. Trade unions during the post-independence period preferred state-led planned

industrialisa-tion. The national government also passed a number of Acts with which they

codified the roles of trade unions as instruments of collective bargaining on behalf of the

workers. Tripartite structures of consultation were created like the Indian Labour Conference,

wage boards, Central Industrial Relations Machinery, joint management councils etc. The

entire idea was that these institutions should be used to reduce the areas of conflict by

dialogue, rather than resort to strikes. In case of failure by dialogue, the government used the

instrument of compulsory adjudications, by appointing state as well as national level

tribunals. The result was that trade unions felt that the state has given them a respectable

place to voice their concerns and thus they were able to extract with the help of the state good

amount of power to protect and promote the interests of labour. In other words, this period

was marked by a social cohesion between the state and the trade unions to improve the

miserable conditions of the working class.

Growth and Development of the Trade Union Movement (The Trend)

The growth and development of the labour - movement , and for that part of the trade unions,

in India, can be divided into following periods, each of them revealing different tendencies

that mark it from others.

1. Social Welfare period( From 1875 to 1918)-

2. Early Trade Union period ( From 1918 to 1924) -

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3. Left- Wing Trade Unionism period ( From 1924 to 1934)-

4. Trade Union Unity Period ( From 1935 to 1938)

5. Second World War ( From 1939 to 1945)

6. Post Independence period ( From 1947 to date)

7. Present scenario-

SOCIAL WELFARE PERIOD (1875 TO 1918)

The most noticeable features' of the period, 1875-1918 - were:

(1) Complete absence of radicalism in the labour movement. The methods used by the

workers were characterised by a tendency to petition, memorials and seek redress of

grievances by mild pressure.

These methods reflect the influence of leaders like Naryan Meghajee Lokhanday, Shapurjee

Bengali, S.N. Baneijee, and others who were all political moderates and law abiding persons.

They were rather social workers desirous to serve the society through amelioration. "With

these characteristics," writes Punekar, "the labour movement could hardly tackle such

problems as excessive hours of work, few holidays, irregular payment of wages,

incompetency of mill managers, inadequate fencing of machinery and the ill-ventilated and

filthy state of many work places.

(2) The movement depended greatly on external philanthropy. "Philanthropic agitation was

the fore-runner of labour movement in India and having originated in philanthropy its motive

force was sympathy rather than justice. Born of philanthropy. It was a movement for the

workers rather than by the workers.

(3) Most of the organisations were unstable and of loose type, as they lacked definite aims

and constitution. Once the particular grievance was settled the association would disband.

(4) There was little conception of permanent trade union membership, 'the payment –dues or

organised collective bargaining. About the Bombay Mills and Association, Dutt observed,

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"The Association has no existence as an organised body, having no roll or membership. no

funds, no rule..."

(5) The movement developed mostly among the educated class of workers such as the postal

clerks and railway employees. It, however. did not make much progress in organised

industries like textiles, mining and plantations.

(6) The early leadership was provided by three types of persons. First, intellectuals such as

lawyers, reformers, editors, teachers and preachers, who readily came forward to organise

and lead the workers. Second, the careerists, who saw in the needs of workers opportunities

for furthering their own ends, jumped in masquerading as labour leaders.The third group

from which labour leaders emerged consisted of politicians and nationalists like B.P. Wadia,

V.V. Giri, M. Vardarajulu Naidu, B. Shiv Rao, Annie Besant and B.G. Tilak, N.M. Joshi.

According to Pandey. the important factors which have helped in the emergence and growth

of the industrial labour movement are:

(1) While the economic hardships of workers have been present as a latent force. The impetus

for the growth of labour movement is provided by the major political currents, particularly

movement for 'national independence.

(2) The failure of workers' initial attempts to organize led them to seek the help of.

Philanthropists and social workers to generally came from classes higher in economic and

social status.

Thus the main characteristics of these early efforts of forming labour associations were their

lack of continuous organization. These associations existed but they were not an organic

growth out of the working class. Workers supported their association when it suited them

such as during, strikes or in order to get benefits from welfare activities. Otherwise they

ignored the associations. Hence, they were usually weak.

EARLY TRADE UNION PERIOD (1918-1924)

The main points in this period are

Rise of cost of living which lead to collective action

The intensified swaraj movement

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The success of the Russian Revolution of 1917

The establishment of the I.L.O., in 1919

Immediately after the war many Indian soldiers in the British army were demobilized

and forced into the labour market. By 1920, a large class of genuine proletariat

developed. Hence, these were new' opportunities for the creation of trade unions

The non co-operative movement of Gandhiji during 1920-21

Formation of more and more unions in different parts of the country.

Eg. The Textile Labour Association was formed in 1920 at the initiation of Gandhiji

Formation of All India Trade Union Congress (AITUC) under the leadership of Lala

Lajpat Rai.

The trade unionism, after 1919, spread to centers other than Chennai; Ahmadabad and

Bombay and it is estimated that between 3-5lakh of workers were joined the various

unions.

Among the political leaders who entered into the trade union movement at this time

were

such national leaders as C:R. Das, Moti Lal Nehru, Jawaharlal Nehru, Subhash Chandra

Bose, V.V. Giri

LEFT-WING UNIONISM PERIOD (1924-1934)

The rapid growth of the trade unionism was facilitated by the growth of anti-

imperialist national movement, the brutal violence and repressive measures let loose by the

British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate

arrests and imprisonment of national leaders and Satyagrahis, the phenomenal profits earned

by the capitalists in the face of falling real wages during the post-war period. The formation

of All India Trade Union Federation (AITUF) and Red Trade Union Congress(RTUC) lead

by the communist was another noticeable change that happened during this time. Now there

are three unions namely

1. AITUC, led by the Royists and militant nationalists

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2. AITUF,led by Congress nationalists and moderates

3. RTUC, consisting of orthodox communists

Besides, there were some other independent organisations which followed their own methods

and policies notable among them being the All India Railwaymen's Federation (AIRF} and

the Textile Labour Association(TLA)of Ahmadabad.

TRADE UNION'S UNITY PERIOD (1935-1938)

The division in the Indian labour movement was proving very costly for the Indian working

class. By 1934, almost every mill in Bombay brought down wages by a substantial reduction.

The total number of mandays lost was 47.7 lakhs as against 21.7 lakhs in 1933. All India

Railwaymen's Federation in its conference at Bombay, formed a Trade Union Unity

Committee in 1932. The Committee adopted the following "platform of unity": "A trade

union is an organ of class-struggle; its basic task is to organize the workers for advancing and

defending their rights and interests. Negotiation, representations and other methods of

collective bargaining must remain an integral part of the trade union activities. It also laid

down certain broad conclusions agreeable to both wings of labour – the AITUF and the

AITUC. The final decision was taken in Delhi in 1933~when National Federation of Labour

(NFL) was formed to facilitate the attempt towards unit. The AITUF and the railway unions

amalgamated themselves with the NFL under the name of the National Trade Union

Federation (NTUF). Under the circumstances unity in labour movement was essential, In

1935, the RTUC was merged into the AITUC. The Indian National Congress approached the

working class. The number of trade unions increased from 271 in 1936-37 to 562 in 1938-

39,'and the membership rose from 2.61lakhs to 3.99 lakhs. The path to unity was paved in

1938 in Nagpur when the AITUC finally decided to accept the conditions of merger as laid

down by the NTUF. 37 Thus, after 9 years of split the trade union unity was complete in 1940

when the NTUF dissolved itself and merged with the AITUC and the AITUC again became

the sole representative of the organized labour.

SECOND WORLD WAR PERIOD (1939-1945)

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The Second World War, which broke out in September 1939, created new strains in

the ,united trade union movement. These strains arose because of the different political

factions in the AITUC related in different ways to the role of India as a protagonist in the

war. A large group of trade unionists led by the members of the Radical Democratic:-Party

was of the opinion that the AITUC should, support and participate in the anti-fascist war

irrespective of the acts of omission and commission of the British' government. An equally

large number were opposed to that view on the ground that it was an imperialist war of Great

Britain with which India had no concern. Hence, again a rift took place in 1941 and 'the

Radicals left the AITUC with nearly 200 unions with a membership of 3, 00,000 and formed

a new central federation known as the Indian Federation of Labour. Hence, again a rift took

place in 1941 and 'the Radicals left the AITUC with nearly 200 unions with a membership of

3, 00,000 and formed a new central federation known as the Indian Federation of Labour. IFL

grew very rapidly and by 1944, it claimed 222 unions with a membership of 407,773

workers. During war-time certain factors helped to enhance the status of the trade unions in

the country, namely, (a) The government as well as employers launched number of labour

welfare measures with a view to increase production of war materials and other essential

goods and maintain high profits. (b) Recognition to trade union was accorded by many

employers. This fact gave a moral strength to the unions. (c) Ban was placed on the strikes

and lockouts, during war-time, under the Defence of India Rules 8J-A, and all disputes had to

be referred to adjudication and their awards were enforced. (d) A Tripartite Labour

Conference was convened in 1942, for the first time, to provide a common platform for

discussions and mutual understanding between the labour and the employers. During war-

time, the trade union –strength grew from 420 in 1937-38 to 865 in 1944-45; and the

membership from 3.90 lakhs to 8.89Iakhs. One great qualitative change that had taken place

in Indian trade unions related to their ability to participate in negotiations with employers and

the tripartite deliberations.

THE POST INDEPENDENCE PERIOD (From 1947 to 2000)

As pointed out earlier; when attempts to restructure the AITUC failed, those believing

in the aims and ideals other than those of the AITUC Separated from the organization and

established the Indian National Trade Union Congress (INTUC) in May, 1947. The INTUC

was formed by Hindustan Mazdoor Sevak Sangh, a creation of pro Gandhi wing in the

Congress, who was associated with the Textile Labour Association of Ahmadabad. The

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INTUC was founded for establishing an order of society which is free from hindrances to an

all-round development of its individual members which fosters the growth of human

personality in all its aspects and which goes to the utmost limit in progressively eliminating

social, political and economical exploitation and inequality, the profit motive and economic

activity and organization of society and the anti-social concentration of power in any form.

The post-war period has been marked by the most rapid strides so far made by the trade union

movement in India. The most important factors being:

(i) The constant inflow of outside and international influences;

(ii) The pressure of trade union rivalries often based on political or ideological differences;

(iii) Government's Industrial Relations Policy with its provision for compulsory adjudication

machinery.

(iv) The enactment of labour laws conferring special privileges on registered trade unions;

(v) Desire of workers to unite for safeguarding their interests especially to face harder

conditions for labour such as retrenchment, lay-off, etc and

(vi) Attempts made by some employers to set up unions under their influence.

PRESENT SCENARIO OF THE TRADE UNION MOVEMENT

The Indian trade unions have come to stay now not as just ad hoc bodies or strike

committees but as permanent features of the industrial society. The political, economic,

historical and international factors have all helped the unions to get a legal status and they

now represent the workers. They have succeeded in organizing Central Union Federations

which help the determination of principles, philosophy, ideology and purposes the unions and

give some sense of direction to the otherwise scattered and isolated large number of unions.

The unions have achieved a remarkable status where' their voices are heard by the

Government and the employers, they are consulted on matters pertaining to improvement in

conditions of work, health and safety, job security, wages , productivity all matters

concerning the interests of labour. The unions have created for them a platform to air their

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views; policies and ideologies both at the state level and national level in the Standing Labour

Committee and the, Indian Labour Conference.

At present there are twelve Central Trade Union Organizations in India:

1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS)

3. Centre of Indian Trade Unions (CITU)

4. Hind Mazdoor Kisan Panchayat (HMKP)

5. Hind Mazdoor Sabha (HMS)

6. Indian Federation of Free Trade Unions (IFFTU)

7. Indian National Trade Union Congress (INTUC)

8. National Front of Indian Trade Unions (NFITU)

9. National Labor Organization (NLO)

10. Trade Unions Co-ordination Centre (TUCC)

11. United Trade Union Congress (UTUC)

12. United Trade Union Congress - Lenin Sarani (UTUC - LS)

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CHAPTER III: TRADE UNION ACT,1926

Trade Unions Act: The trade unions act was passed before independence to provide legal

protection to employee’ collectives and regulate them. Under the act, trade unions are to be

registered with the appropriate government appointed Registrar of Trade Unions.

Maintaining smooth relations between management and labor has been one of the main

objectives of Indian Industrial relations. Laws falling under this domain are mainly regulative

in nature. They specify the dos and don’ts.

The Trade Unions Act, 1926 allows freedom for any seven employees to apply to register a

trade union, but a later amendment (2001) specified the minimum membership as 10% of

unionizable employees or 100 employees, which ever is less. The act does not make

registration compulsory. However, the registered trade union protection from certain civil and

criminal actions.

The act does not specify any criterion or method for recognition of trade union by the

employer as the representative of employees. Various state governments, like Maharasthra,

have enacted separate legislations to deal with recognition.

The Industrial Employment (Standing Orders) Act, 1946 is regulatory in nature and is

applicable to industrial establishments under the jurisdiction of central and state governments.

By formally defining conditions of employment, the act serves to reduce conflict and also be

a communication mechanism between management and labor.

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Industrial establishments have to frame standing orders and apply for certifications for those

as well. Certifications will be done by designated certifying officer after inviting objections

from workmen or trade unions and considering the objections. In the absence of certified

standing orders, the model standing orders provided in the act automatically apply, except in

Gujarat and Maharasthra.

The primary tone of the Industrial Disputes (ID) Act of 1947 is regulatory since it puts

restrictions on the direct actions that can be taken by both the parties involved in the

industrial dispute. Different conflict resolution forums have been proposed, including works

committees (Section 3), conciliation officers (Section 4) boards of conciliation (Section 5)

courts of inquiry (Section 6) and labor courts (Section 7) tribunals (Section 7A) and the

national tribunal (Section 7B). The act also allows the government to intervene in the interest

of maintaining industrial peace. Since it came to force, the act has been amended many times.

In the context of demand for labor reforms, the suitability of the different provisions of the

act has been questioned from the perspective of increasing employment productivity, and

flexibility. The debate on the ID act starts with the definition of the industry itself, which got

widened by the Supreme Court in the landmark Bangalore Water Supply and Sewage Board

v. Rajappa, (1978) case.

The act also requires organizations to give a notice of change (Section 9A) – and advance

notice of 21 days – if there is any change at the work place affecting the workers. However

Section 9B allows the government to exempt firms from Section 9 A in terms of public

interest. Section 10 gives the government power to refer industrial disputes to boards, courts

or tribunals for the purpose of arriving at a settlement.

The act also places restrictions on employees in public utilities going on strike (sections 22,

23, and 24) without appropriate notice (6 weeks and 14 days before giving the notice) or

when any conciliation effort is operational. It also has provisions for firms employing more

than 50 workmen (Section 25 A) regarding layoffs, payment of layoff compensation (Section

25 C) retrenchment of workmen after giving sufficient notice (Section 25F) and for closure of

undertaking .

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CHAPTER III : IMPORTANCE OF TRADE UNION AND

SOCIAL JUSTICE

The existence of a strong and recognized trade union is a pre-requisite to industrial peace.

Decisions taken through the process of collective bargaining and negotiations between

employer and unions are more influential. Trade unions play an important role and are

helpful in effective communication between the workers and the management. They provide

the advice and support to ensure that the differences of opinion do not turn into major

conflicts. The central function of a trade union is to represent people at work. But they also

have a wider role in protecting their interests. They also play an important educational role,

organizing courses for their members on a wide range of matters. Seeking a healthy and safe

working environment is also prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many ways as follows:

by helping in the recruitment and selection of workers.

by inculcating discipline among the workforce

by enabling settlement of industrial disputes in a rational manner

by helping social adjustments. Workers have to adjust themselves to the new working

conditions, the new rules and policies. Workers coming from different backgrounds

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may become disorganized, unsatisfied and frustrated. Unions help them in such

adjustment.

Trade unions are a part of society and as such, have to take into consideration the national

integration as well. Some important social responsibilities of trade unions include:

promoting and maintaining national integration by reducing the number of industrial

disputes

incorporating a sense of corporate social responsibility in workers.

achieving industrial peace.

REASONS FOR JOINING TRADE UNIONS

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 favoritisms and discriminations. A

trade union can compel the management to formulate personnel policies that press for

equality of treatment to the workers. All the labor decisions of the management are under

close scrutiny of the labor union. This has the effect of minimizing favoritism and

discrimination.

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.

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.

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Sense of Belongingness

Many employees join a union because their co-workers 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.

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.

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.

FUNCTIONS OF TRADE UNION

Trade unions perform a number of functions in order to achieve the objectives. These

functions can be broadly classified into three categories:

(i)  Militant functions,

(ii) Fraternal functions

Militant Functions

One set of activities performed by trade unions leads to the betterment of the position of their

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members in relation to their employment. The aim of such activities is to ensure adequate

wages, secure better conditions of work and employment, get better treatment from

employers, etc. When the unions fail to accomplish these aims by the method of

collective bargaining and negotiations, they adopt an approach and put up a fight with the

management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these

functions of the trade unions are known as militant or fighting functions. Thus, the militant

functions of trade unions can be summed up as:

To achieve higher wages and better working conditions

To raise the status of workers as a part of industry

To protect labors against victimization and injustice

Fraternal Functions

Another set of activities performed by trade unions aims at rendering help to its members in

times of need, and improving their efficiency. Trade unions try to foster a spirit of

cooperation and promote friendly industrial relations and diffuse education and culture

among their members. They take up welfare measures for improving the morale of workers

and generate self confidence among them. They also arrange for legal assistance to its

members, if necessary. Besides, these, they undertake many welfare measures for their

members, e.g., school for the education of children, library, reading-rooms, in-door and out-

door games, and other recreational facilities. Some trade unions even undertake publication

of some magazine or journal. These activities, which may be called fraternal functions,

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

donations from outsiders, and also on their competent and enlightened leadership. Thus, the

fraternal functions of trade unions can be summed up as:

To take up welfare measures for improving the morale of workers

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To generate self confidence among workers

To encourage sincerity and discipline among workers

To provide opportunities for promotion and growth

To protect women workers against discrimination

ADVANTAGES AND PROBLEMS OF TRADE UNION

When Mrs Thatcher came to power in 1979, her stated aim was to reduce the power of

unions. She felt that unions were a major contributor to the declining competitiveness of the

UK economy. To a large extent Mrs Thatcher was successful in reducing the power of

unions. However, it is worth considering whether unions are necessarily the demonic forces

that some commentators have made them out to be.

ADVANTAGES OF TRADE UNION

1. Increase wages for its members.

Industries with trade unions tend to have higher wages than non-unionised industries.

2. Counterbalance Monopsonies.

In the face of Monopsony employers, Trades Unions can increase wages and increase

employment. Monopsony employers are those who have market power in setting wages and

employing workers. Traditionally, monopsonies occur when there is only 1 firm in a town, or

type of employment. However, in modern economies, many employers have a degree of

market power (monopsony).

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3. Represent Workers

Trades Unions can also protect workers from exploitation, and help to uphold health and

safety legislation. Trades unions can give representation to workers facing legal action.

4. Productivity deals.

Trades Unions can help to negotiate productivity deals. This means they help the firm to

increase output; this enables the firm to be able to afford higher wages. Trades unions can be

important for implementing new working practices which improve productivity.

5. Important for Service Sector.

Modern economies have seen a fall in trade union power. This is because of a decline in

manufacturing and rise in service sector employment. Service sector jobs tend to more likely

to be part time and temporary; unions are needed to protect workers in these kind of jobs.

PROBLEMS OF TRADE UNION

1. Create Unemployment.

If labour markets are competitive, higher wages will cause unemployment. Trades unions can

cause wages to go above equilibrium through the threat of strikes e.t.c. However when the

wage is above the equilibrium it will cause a fall in employment.

2. Ignore non Members

Trades unions only consider the needs of its members, they often ignore the plight of those

excluded from the labour markets, e.g. the unemployed.

3. Lost Productivity.

If unions go on strike and work unproductively (work to rule) it can lead to lost sales and

output. Therefore their company may go out of business and be unable to employ workers at

all.

4. Wage Inflation.

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If unions become too powerful they can bargain for higher wages, above the rate of inflation.

If this occurs it may contribute to general inflation. Powerful trades unions were a significant

cause of the UK's inflation rate of 27% in 1979.

The benefits of trades unions depends on their circumstances. If they face a monopsony

employer they can help counterbalance the employers market power. They can increase

wages without causing unemployment.

If unions become too powerful and they force wages to be too high, then they may cause

unemployment and inflation

It also depends on whether they cooperate with firm or not on increasing productivity.

CHAPTER V: CONCLUSION

Trade unions are unique organizations whose role is variously interpreted and understood by

different interest groups in the society. Traditionally trade unions role has been to protect jobs

and real earnings, secure better conditions of work and life and fight against exploitation and

arbitrariness to ensure fairness and equity in employment contexts. In the wake of a long

history of union movement and accumulated benefits under collective agreements, a plethora

of legislations and industrial jurisprudence, growing literacy and awareness among the

employees and the spread of a variety of social institutions including consumer and public

interest groups the protective role must have undergone, a qualitative change. It can be said

that the protective role of trade unions remains in form, but varies in substance.

There is a considerable debate on the purposes and role of trade unions. The

predominant view, however, is that the concerns of trade unions extend beyond 'bread and

butter' issues. Trade unions through industrial action (such as protests and strikes) and

political action (influencing Government policy) establish minimum economic and legal

conditions and restrain abuse of labor wherever the labour is organised. Trade unions are also

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seen as moral institutions, which will uplift the weak and downtrodden and render them the

place, the dignity and justice they deserve.

BIBLIOGRAPHY

1. Labour Monthly, Vol. 9, October 1927, No. 10.

2. Marxists Internet Archive (2009). You may freely copy, distribute, display and

perform this work; as well as make derivative and commercial works. Please credit

“Marxists Internet Archive” as your source

3. The Indian Trade Union Movement- By: Philip Spratt

(http://www.marxists.org/archive/spratt/1927/10/x01.htm)

4. CiteHR.com

5. Article on Trade Union Analysis

6. Trade Union Movement in India By Sohail Jawaid

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7. Trade Unions: Global Concerns and Experiences: Pramod Verma

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