TRADE UNION

TOPICS TO BE COVERED
• Definitions
• History (In India)
• Features
• Objectives
• Functions
• Structure
• Problems
 HISTORY
• Development of modern industry,
especially in the  Western countries, can
be traced back to the 18th century.
Industrial development in India on
Western lines, however commenced
from the middle of the 19th century. The
first organised Trade Union in India
named as the Madras Labour Union was
formed in the year 1918. Since then a
large number of unions sprang up in
almost all the industrial centres of the
country. Similarly, entrepreneurs also
formed their organisations to protect
their interests.
 DEFINATION
• Trade Unions are the groups set-up with
the aim of trying to create fairness and
job security in a workplace.
• Section 2(h) of the Trade Union Act,1926
has define a trade union as:
 “Any combination, whether temporary
or permanent, former primarily for the
purpose of regulating the relation between
workman and workmen or between
employers, or for imposing restrictive
conditions on the conduct of any trade or
business, and includes any federation of
two or more trade unions.
Features of trade unions :
I. It is an organisation formed by employees or workers.
II. It is formed on a continuous basis. It is a permanent
body and not a casual or temporary one.
III. 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.
IV. It includes federations of trade unions also.
V. It achieves its objectives through collective action and
group effort.
 What are trade unions?
• Trade unions are organisations that represent people at
work. Their purpose is to protect and improve people's
pay and conditions of employment. They also campaign
for laws and policies which will benefit working people.
• Trade unions exist because an individual worker has very
little power to influence decisions that are made about
his or her job. By joining together with other workers,
there is more chance of having a voice and influence.
• All sorts of jobs and industries are covered by trade
unions. Some unions represent people who do a
particular job or work in a specific industry - for
example, the National Union of Journalists (NUJ), as its
name suggests, represents journalists, and the Union
for Finance Staff (UNIFI) is made up of people who do
different jobs in the financial sector.
• Other unions include a mixture of people in different jobs
and sectors. The biggest unions in Britain - the GMB,
UNISON and the Transport and General Workers Union
(TGWU) represent people working in a range of different
occupations and industries in the public and private
sectors. Often this is because unions have merged with
other unions so that they can increase their membership
and their influence.
 What do unions do?
• The main service a union provides for
its members is negotiation and
representation. There are other
benefits people get from being
members of trade unions.
• Negotiation
• Representation
• Information and advice
• Member services
 Negotiation
Negotiation is where union representatives discuss with
management issues which affect people working in an
organisation. The union finds out the members' views and
relays these views to management. There may be a difference
of opinion between management and union members.
'Negotiation' is about finding a solution to these
differences. This process is also known as 'collective
bargaining'.
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 organisations,
unions are said to be 'recognised' for 'collective
bargaining' purposes.
Pay, working hours, holidays and changes to working practices
are the sorts of issues that are negotiated. People who work
in organisations where unions are recognised are better paid
and are less likely to be made redundant than people who
work in organisations where unions are not recognised.
 Representation
Trade unions also represent individual members when they
have a problem at work. If an employee feels they are
being unfairly treated, he or she can ask the union
representative to help sort out the difficulty with the
manager or employer.
If the problem cannot be resolved amicably, the matter
may go to an industrial tribunal. Industrial tribunals
make sure that employment laws are properly adhered to
by employees and employers. They are made up of people
outside the workplace who listen to the employer's and
the employee's point of view and then make a judgement
about the case. People can ask their union to represent
them at industrial tribunals. Most cases that go to
industrial tribunals are about pay, unfair dismissal,
redundancy or discrimination at work.
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
 Information and advice

Unions have a wealth of information which is useful to people

at work. They can advise on a range of issues like how much
holiday you are entitled to each year, how much pay you will
get if you go on maternity leave, and how you can obtain
training at work.
 Member services
During the last ten years, trade unions have increased the
range of services they offer their members. These include:
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.
Legal assistance - As well as offering legal advice on
employment issues, some unions give help with personal
matters, like housing, wills and debt.
Financial discounts - People can get discounts on
mortgages, insurance and loans from unions.
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
 What is the role of trade
unions in industrial
disputes?
• Most 'collective bargaining' takes place quietly and
agreements are quickly reached by the union and the
employer. Occasionally disagreements do occur and the
two sides cannot agree. In these cases the union may
decide to take industrial action.
• Industrial action takes different forms. It could mean an
over time ban, a work-to-rule or a strike. There are strict
laws which unions have to follow when they take
industrial action.
• A strike is only called as a last resort. Strikes are often in
the news but are rare. Both sides have a lot to lose.
Employers lose income because of interruptions to
production or services. Employees lose their salaries and
may find that their jobs are at risk.
• Usually employers and employees will go to some lengths
to avoid the costs of strike action to both groups. ©
Photolibrary Group
• The Advisory, Conciliation and Arbitration Service (ACAS) is
often used to help find a solution to a dispute which is
acceptable to both sides.
xyz
 OBJECTIVES
• Better Wages
• Better Working conditions
• Bonus
• Resist unsuitable schemes
• Secure welfare
• Project Interest of workers
• Social welfare
• Organisational gowth and stablilty
 FUNCTIONS
Militant
Fraternal

•In tra -m u ra la ctivitie s

•E xtra -m u ra la ctivitie
•Po litica la ctivitie s.
•
Why do workers join unions
• Greater Bargaining Power
• Makes their voice heard
• Minimise discrimination
• Sense of security
• Sense of Participation
• Sense of Belongingness
 Reasons Why Employees
Join Unions
Protection
Social pressure

Compulsion

Political beliefs

Solidarity

Tradition

Pay and conditions

Communication

Health and safety

CRITICISM OF TRADE UNION BY
EMPLOYERS
• Lack of education
• May not welcome change
• Strick on Illogical basis
• Creation of Artificical scanity of
labour
• Undue demands relating to wages
Type of Union Description / Example

Craft of skills To represent skilled workers e.g. Musicians

union Union (MU)
Industrial To represent the members of one particular
unions industry e.g. Fire Brigades Union
(FBU)

General Unions which recruit workers from all types of

unions industries and with any level or range of skills
e.g. Amicus – the Manufacturing Science and
Finance Union (MSF)

White-collar Represent office workers e.g. National Union

unions of Teachers (NUT)
 A n o th e r w a y o f
cla sifica tio n :
1. R e fo rm ist U n io n s
•B u sin e ss U n io n s
•Frie n d ly U n io n s

2 . R e vo lu tio n a ry u n io n s

•Po litica lu n io n s
•A n a rch ist u n io n s
STRUCTURE OF TRADE UNIONS
• Plant level Federations
• Local level Federations
• Regional Level Federations
• National Level Federations
 Unions structure
diagram
• Union Members
• Shop Stewards (Union
Representatives)
• Branches District and Regional
Offices
• National Office
• Trade unions are democratic organisations which
are accountable to their members for their
policies and actions. Unions are normally
modelled on the following structure:
• Members - people who pay a subscription to
belong to a union
• Shop stewards - sometimes called union
representatives - who are elected by members
of the union to represent them to management
• Branches - which support union members in
different organisations locally. There is usually a
branch secretary who is elected by local
members
• District and/or regional offices - these are usually
staffed by full time union officials. These are
people who are paid to offer advice and support
to union members locally
• A national office - the union's headquarters which
offers support to union members and
negotiates or campaigns for improvements to
their working conditions. At the top of the
organisation there is usually a General
 TRADE UNIONS ACT
1926
• Trade Unions Act, 1926 provides for the
registration of the     Trade Unions with
the Registrars of Trade Unions of their
territory. Any seven or more members of
a trade union by submitting their names
to the registrar of trade unions and
otherwise complying with the provisions
of the Act with respect to registration
may apply for the registration of the
Trade Union under the Trade Unions Act.
The Act gives protection to registered
trade unions in certain cases against
civil and criminal action.
•A IB O C - All India Bank Officers Confederation
•A IS G E F - All India State Government Employees Federation
•C e n te r o f In d ia n Tra d e U n io n s - Major trade union
•H in d M a zd o o r S a b h a - Membership , objectives and trade
u n io n situ a tio n
•In d ia n N a tio n a l Tra d e U n io n C o n g re ss - History, aims ,
o b je ctiv e s a n d a ctiv itie s
•N C O A - National Confederation of Officer'sAssociation of
C e n tra l P u b lid S e cto r U n d e rta k in g s
•O rg a n ize d L a b o u r - Articleon role of organized labour and
tra d e u n io n s in e co n o m ic lib e ra liza tio n
•P W T U C - Professional Workers Trade Union Centre of India
•Tra d e U n io n In d ia - Trade union international of public and
a llie d e m p lo y e e s
 Four important central organisations of workers in India are

1. The Indian National Trade Union Congress ( INTUC ). The

Congress Party and the top congress leaders formed the INTUC like Nehru
and Patel were associated with it. Every union affiliated to INTUC has
to submit its dispute to arbitration after exhausting other means
of settlement of disputes.

2. The All India Trade Union Congress ( AITUC ). This union

serves as the labour forum of Communist Party of India at present.
It is considered as the second largest union in India.
3. The Hind Mazdoor Sabha ( HMS ). It was formed in Calcutta by
the socialists who neither approved INTUC nor AITUC. The HMS
was organised with a view to keeping its members free from any
political or other outside interference.
4.
5.
6.
7 . The United Trade Union Congress ( UTUC ). Those persons who were
dissident socialist formed it. It functions mainly in Kerala
and West Bengal.

5 . Centre for Indian Trade Unions ( CITU ). The Marxists separated from
the AITUC in May 1970 and formed the CITU.
In addition to the above, there are four
other central trade union
organisations. They are:
 Bhartiya Mazdoor Sangh (BMS)

 National Labour Organisation (NLO)

 National Front of Indian Trade

Unions
(NFITU)

 Trade Union Congress Committee

PROBLEMS AND WEAKNESS OF
TRADE UNIONS
• Uneven growth
• Limited membership
• Multiplicity of unions
• Outside leadership
• Financial problems
• Indifferent attitude of workers
•
 How are trade unions
financed?
• Each trade union member pays a subscription.
The amount varies from union to union and is
normally set at different levels according to the
amount people earn. It is usually between £5
and £8 a month. Some unions reduce the fees
for unemployed members.
• People pay their subscription fees in different
ways. It may be collected by direct debit from a
bank account, deducted directly from wages or
paid in cash or by cheque to a union
representative or full time official.
• In exchange, members receive the benefits of
representation, negotiation, protection and
other services from their union.
 H o w d o tra d e u n io n s re cru it th e ir m e m b e rs?
Different unions cover different jobs and industries. People are able
to join the most appropriate union for their job or sector.
People are recruited to unions in different ways. Most people find out
about the union by talking to colleagues at the workplace and then make
direct contact with the union. Others are contacted by the union
representative who gives them information about the union and tells
them how to join. Some employers and personnel officers tell employees
about the union when they start working for the organisation.
Unions are stepping up their efforts to attract new members. Some are
using adverts in newspapers and magazines, television commercials and
leaflets as part of high profile recruitment campaigns. The target for
these efforts is often people who work part time, in temporary jobs or
in small organisations where in the past union membership has not been
very high.
Begun in 1998, the 'New Unionism' project aimed to boost Trade Union
membership, especially in newly-emerging industries and amongst members
of the population who have been under-represented traditionally in the
trade unions. The project set up new union roles of Academy Organisers
who were trained intensively for 12 months in order to work as
specialist union organisers. Research was carried out by Cardiff
Business School in 2003 into the project's effectiveness; the resulting
report is The Organising Academy - five years on.
 How has trade union
membership changed in
recent years?
• In 2003, union membership in Britain, estimated
from the Labour Force Survey, was 7.42 million.
The proportion of all employees who were
union members was 29.1%. These are the
overall figures but union membership varies
enormously by industry and by the types of
jobs that people do.
• Trade union membership has declined over the
last two decades. In 1979 13.3 million people
were members of trade unions and the
proportion of employees who were union
members stood at 55%. A
comparison of membership data for the period
1992-2003 can be seen on the ONS Web site.
Trade unions negotiate pay and conditions for people in a wide range
of occupations.
There are several reasons for this fall in membership, including:
•a dramatic fall in the number of jobs in manufacturing industries
where union membership was traditionally high
•larger numbers of unemployed people
•a fall in traditional full time employment and an increase in part
time and temporary workers who are less likely to join unions
•an increase in the proportion of the workforce employed by small
companies where it is often difficult for unions to organise
•hostile legislation - the previous Conservative government introduced
laws which make it more difficult for unions to operate and keep
their members.
.
However, trade union membership is still quite high and many people
are employed in workplaces where unions are recognised by
management for negotiating pay and conditions of employment.
There is also evidence that the decline in union membership is
beginning to slow up. The TUC has launched a major recruitment
drive called 'New Unionism - Organising for Growth' and many unions
are stepping up their efforts to recruit in new industries and
jobs. More and more people are turning to trade unions because they
want the protection they can provide
 SUGGESTIONS FOR HEALTHY
GROWTH OF UNIONS
• One Union Per Industry
• Paid Union Officials
• Development of Internal Leadership
• Recognition of Trade Unions
• Improved Financial condition
THANKS