What is trade union?

DEFINATION
Trade Union Section 2(h) of the Trade Unions Act, 1926 has defined a trade union
as:
“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.” Then this definition talks
about three relationships. They are relationship between the: Workmen and
workmen Workmen and employers.
According to Flippo “A labour union or trade union is an organisation of workers
formed to promote, protect, and improve, through collective action, the social,
economic, and political, interests of its members.”
According to Dale Yoder“A trade union is a continuous association of workers
which is formed with purpose of protecting the interests of workers.

HISTORY OF THE TRADE UNION LAW

Trade union and their activities were not considered lawful in the beginning
anywhere in the world. This was so in India also. Until 1926, there was no law
in India for registration and protection of trade unions.
In 1920, when a suit was filed against the officials of the Madras Textile
Labour Union by Binny & Co., the highcourt of Madras, following the
common law in England, granted an injunctions restraining the union officials
from influencing the workmen to break their contracts with employers by
striking. Obviously the leaders of the trade union found themselves liable to
prosecution and imprisonment even for bonafide trade union activities.
It was then they felt that some legislative protection of
trade union was necessary. Mr. N.M. JOSHI, then General Secrectary of All
India Trade Union Congress, successfully moved a resolution in the central
legislative assembly seeking introduction of some law by the govt. for
protection of trade unions.
The employers were so much opposed to any such
legislative measures being adopted that the passing in 1926.But this act was
enforced only from 1s t June, 1927.

FEATURES

Features of trade unions It is an organisation formed by employees or workers. It

is formed on a continuous basis. It is a permanent body and not a casual or
temporary one. It is formed to protect and promote all kinds of interests –
economic, political and social-of its members. The dominant interest with which a
union is concerned is, however, economic. It includes federations of trade unions
also. It achieves its objectives through collective action and group effort

After analysing the definition, following features of trade union is drawn:--

1.It is an organisation formed by employees or workers.

2.It is formed on a continuous basis. It is a permanent body and not a temporary

one
3.It is formed to protect and promote all kinds of interests(economic, political and
social) of all its members.

4.It includes federations of trade unions also.

5.It achieve its objectives through collective action and group effort.
OBJECTIVES

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.
 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.

 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.

Objectives of Trade union due to which workers organise themselves into

unions:--

1.To improve the economic lot of employees by securing for them better wages.

2.To secure better working condition for the workers.

3.To secure bonus for the employees from the profit concern.

4.To resists schemes of the management which reduce employment.

(rationalisation and automated)

5.To secure welfare of employees through group schemes which give benefit to
every employee.

6.To protect interests of employees by taking active participation in the

management.

7.To secure social welfare of the employees.

8.To secure organisational stability, growth and leadership.

 FUNCTIONS
Broadly speaking, trade union performs two types of functions:--
1.MILITANT FUNCTION:- This activities is performed by trade union for the
betterment of the position of their members in relation to their employment.
(such as adequate wages, secure better condition of work, get better treatment
from
employers, etc.)When the union fails to accomplish these aims by collective
bargaining and negotiations, they adopt an approach and put up a fight with the
management in the form of so-slow, strike, boycott,etc.
2.FRATERNAL FUNCTION:- Another set of activities performed by trade union
aims at rendering help to its members in times of need and improving their
efficiency. Tradeunion try to foster a sprit of cooperation and promote friendly
relations and diffuse education and culture among their members. They also
arrange for legal assistance to its members, e.g., school for the children, library
and
other recreational facilities.
Objects on which general funds may be spent.-
The general funds of a registered Trade Union shall not be spent on any other
objects
than the following, namely: -

(a) The payment of salaries, allowances and expenses to 1[office-bearers] of the

Trade Union.

(b) The payment of expenses for the administration of the Trade Union,
including audit of the accounts of the general funds of the Trade Union.

(c) The prosecution or defence of any legal proceeding to which the Trade Union
or any member there of is a party, when such prosecution or defence is
undertaken for the purpose of securing orprotecting any rights of the Trade
Union as such or any rights arising out of the relations of anymember with his
employer or with a person whom the member employ
(d) The conduct of trade disputes on behalf of the Trade Union or any member
thereof.

(e) The compensation of members for loss arising out of trade disputes;

(f) Allowances to members or their dependants on account of death, old age,

sickness, accidents or unemployment of such members.

(g) The issue of or the undertaking of liability under, policies of assurance on the
lives of members, or (under) policies insuring members against sickness,
accident or unemployment.

(h) The provision of education, social or religious benefits for members

(including the payment of the expenses of funeral or religious ceremonies for
deceased members) or for the dependants of members.

(i) The upkeep of a periodical published mainly for the purpose of discussing
questions affecting employers or workmen as such.

(j) The payment, in furtherance of any of the objects on which the general funds
of the Trade Union may be spent, of contributions to any cause intended to
benefit workmen in general provided that the expenditure in respect of such
contributions in any financial year shall not at any time during that year be in
excess of one-fourth of the combined total of the gross income which has up to
that time accrued to the general funds of the

Trade Union during that year and of the balance at the credit of those funds at
the commencement of that year.
Criticism of Trade Unions:-

(i) Increased potential for strikes:-

In order to get the demands accepted, trade union leaders serve the threat of
strike to the management. When a trade, union fails to get its demand accepted
by management through collective bargaining and negotiations, it may adopt
militant methods including a strike or work stoppage.
(ii) Narrow Perspective:-
Lack of education makes the workers narrow-minded and prevents them from
long-term views. Thus, anything which does not result in an immediate reward
becomes unattractive to them. This attitude has been responsible for many
strikes and lockouts in industrial concerns.
(iii) Resistance to change:-
Trade Union do not welcome rationalisation and improved methods of
productions because they fear that they will be put out of work.
iv) Fear of increased Costs:-
Higher costs, if not accompanied by increase in employee’s productivity, are not
desirable for the organisation as it will not be able to face competition in the
market in long-run.
(v) Social Costs:-
When labour unions strikes on flimsy grounds, incalculable losses occurs to
producers, community and the nation. Strikes are harmful to the workers also as
they have to suffer loss of wages and other benefits.
(vi) Lack of Employee Commitment:-
In a unionised firm, the employees loyalty is often shifted from organisation to
the union. This can result in reduced employee commitment, lower morale
resist.
(vii) Artificial Scarcity of labour:-
It is alleged that the labour unions may create artificial scarcity of labour by
demanding that only union members should be employed. In such as situation,
an employer may prefer not to fill the vacancies because of fear of trouble by
the union. As a result, employment gets restricted.
Motivation to Join Unions :

Motivation to Join Unions Greater Bargaining Power. The individual employee

possesses very little bargaining power as compared to that of his employer. If he
is not satisfied with the wage and other conditions of employment, he can leave
the job. Make their Voices Heard. The desire for self-expression is a fundamental
human drive for most people. Don’t you agree with that? All of us wish to share
our feelings, ideas and opinions with others. Similarly the workers also want the
management to listen to them. Minimise Discrimination. The decisions regarding
pay, work, transfer, promotion, etc. are highly subjective in nature. I may rate you
very differently as compared to your marketing teacher! Similarly the personal
relationships existing between the supervisor and each of his subordinates may
influence the management.

Thus, there are chances of favoritisms and discriminations. 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. 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.
Structure of Trade Unions :

Structure of Trade Unions Plant level Unions: The first level in the structure from
below is the plant level union. This comprises the unions in one organisation or
factory. Please note that only seven members are required to form a union. This
has lead to multiple unions in one factory. (We will discuss the details of this
aspect in the problems faced by unions in India). Local Level federations. This is
the second level in the structure from below. The local trade union federation
holds together the plant level unions at the local level in a particular craft and
industry. These local level federations might be affiliated to either some regional
level or national level federation or these may be independent. Regional level
federations. These are the organisations of all the constituent unions in a
particular state or region. National federations. These are national level bodies to
which plant level unions, local unions or regional level unions may get affiliated.
These are the apex bodies at the top of the structure. They act as coordinating
bodies. These national federations may have their own regional or state level
coordinating bodies to which the plant level unions may get affiliated.

Problems & weaknesses of Trade Unions :

Problems & weaknesses of Trade Unions Uneven Growth. The trade unionism in
India is characterised by uneven growth, both industry-wise and area-wise. Trade
unions are popular in big industries and the degree of unionisation varies widely
from industry to industry. Besides, trade union activities are concentrated in a
few states and in bigger industrial centers mainly due to concentration of
industries in those places. Limited Membership.

The number of trade unions in India has increased considerably. But this has been
followed by the declining membership per union. Multiplicity of Unions. There
exist several trade unions in the same establishment. The multiplicity of unions is
the result of outside leadership and labour laws.
 The law permits and gives sanctity to small unions. Any seven persons can form a
union under the Trade Unions Act, 1926. This Act confers rights on such a union. It
is allowed under the Act to raise disputes, file suits, go to conciliation and even
bargain with employers.

Therefore, small sections of workers are encouraged to form separate Unions.

There is no restriction on the number of unions to be registered in one
establishment. Outside Leadership. Trade unions in India are led largely by people
who themselves are not workers. These outsiders are politicians, intellectuals and
professionals having no experience of work in industry.

Outsiders continue to dominate the trade unions to advance their personal

interests.

Problems & weaknesses of Trade Unions Financial Problems:-

The financial position of the trade unions is weak because their average yearly
income is very low and inadequate. The subscription rates are very low.

Under conditions of multiplicity of unions, a union interested in increasing its

membership figures keeps the subscription rate unduly low. As a result, the funds
with the unions are inadequate and they cannot undertake welfare programmes
for their members.

Another reason for the weak financial position of union is that large amounts of
subscription dues remain unpaid by the workers. Besides this, unions do not have
proper staff and organisation to collect subscriptions. Indifferent Attitude of
Workers.

In India, a large number of workers have not joined any union. Moreover, all the
members of the trade unions do not show interest in their affairs. The attendance
at the general meetings of the unions is very low. Under such circumstance, trade
unionism cannot be expected to make much progress.
Suggestions for the development Unions :

Suggestions for the development Unions One Union in One Industry: Multiplicity
of unions in the same plant leads to inter-union rivalry that ultimately cuts at the
root of the trade union movement. It weakens the power for collective bargaining
and reduces the effectiveness of workers in securing their legitimate rights.
Therefore, there should be only one union in one industry.

Paid Union Officials: Generally, the trade unions avail the services of the honorary
workers due to lack of funds. The practice should be stopped because honorary
office bearers cannot do full justice to the task entrusted to them because of lack
of time at their disposal. Suppose that you are asked to do something in the
office, which requires a lot of responsibility. You are not offered any thing in
return. Of course the motivational levels will come down unless and until you are
a very passionate or a committed person.

The same applies to the officials of the unions. Therefore, paid union officials
should be employed who are persons of proven integrity and who are able to
evaluate the demands of workers so that they may negotiate with employers on
equal footing. Development of Leadership from Within: It is of crucial importance
that trade unions are managed by the workers, and not by outsiders. Leadership
should be developed from within the rank and file of the workers.

Recognition of Trade Unions. Till recently, the employers refused recognition to

the trade unions either on the basis that unions consisted of only a minority of
employees or two or more unions existed.