TRADE UNIONS IN INDIA, TRADE UNION

RECOGNITION AND ECONOMIC

DEVELOPMENT

Presented by:
K.karthik - 1827011
Malavika - 1827039
K.Priyanka - 1827044
Krupa George - 1827138
Ritika Raj - 1827245
 Trade Unions In India
● Trade Unions are voluntary organization of Workers as well as Employers formed to
protect and promote the interest of their members.
● It is relatively permanent formation of workers. It is not a temporary or casual
formation of workers.
● It is formed to secure certain, economic social benefits to workers.
● Trade Unions in India are registered and file annual returns under the Trade Union
Act (1926)
HISTORY OF TRADE UNIONS IN INDIA

BEFORE 1947(BEFORE INDEPENDENCE)

1947-1991 (BEFORE LIBERALISATION)

1991- PRESENT( POST LIBERALISATION)

 BEFORE 1947
● Industrial workforce in India formed on setting up of textile and clothing mills
in Bombay, Kolkata and Surat in the second half of 19th century.
● First Factories Act was passed by the British Government in 1881
★ Many strikes were there in this period
★ The first association of Indian Workers is said to be the BOMBAY MILL-
HANDS ASSOCIATION founded by N M Lokhande.
● First clearly organised trade union MADRAS LABOUR UNION by B P Wadia
in 1919.
● First trade union federation set up was the All India Trade Union Congress in
1920.
● The Trade Union act was passed in the year 1926,summarizes all modalities
pertaining to registration of trade union to
decision of trade related disputes. This act sets guidelines for both the workers
and the industrialists
 1947 to 1991 ( before liberalisation)
● The partition of country affected the trade union movement particularly in
Bengal and Punjab
● four central trade union organizations functioning
in the country at the time of partition are:
The All India Trade Union Congress,
The Indian National Trade Union Congress,
The Hindu Mazdoor Sangh, and
The United Trade Union Congress
● The trade-union movement reflected the main political divisions of the time and
was divided mainly along Socialist and Communist lines
● In this period trade unions and the number of members increased
● Two key events during this period were the 1974 railway strike in India and
the Great Bombay textile strike of 1982.
 1991 to present (post liberalisation)
● Trade unions began to focus on informal sector workers also.
● The Central Trade Union Organisations (CTU's) increased their combined
membership from 13.21 million in 1989 to 24.85 million in 2002.
● Globalization brought major changes in industrial relations policy in India. The
main characteristics of the trade unionism after globalisation became small size
of membership, lack of adequate finance, non fulfilment of welfare schemes,
control of political parties and other outside interference in the activities of
trade unions.
 ROLE OF TRADE UNIONS
● They provide information on a range of issues for their
members, for instance on pensions.
● Collective Bargaining: Unions enable workers to press their
claims through collective bargaining. This process involves
negotiations between union officials, representing a group
of workers, and representatives of employers.
Objectives of trade union:
● Negotiations.
● Representation.
● Information and service.
● Voice in decision affecting members.
● Wages and salaries.
● Better working conditions.
● Personnel policies.
Rights of trade unions:
● Right to take part in trade union activities.
● Right to make use of trade union services.
● Right to complaint to an industrial tribunal.

Responsibilities of trade unions:

● Not put pressure on people to join.
● Not make unreasonable demands.
● Report problems to representatives.
 Challenges of trade union:
● Small size of unions.
● Financial weakness.
● Multiplicity of trade unions.
● Intra-union rivalry.
● Leadership issue.
● Politicalization.
● Management attitude.
● Illiteracy and ignorance.
 Benefits of trade unions
● Gives an opportunity to the employee to achieve his/her objectives.
● Protects the economic interest of workers.
● Also beneficial to employer as it organizes the workers under one banner and
encourages them to follow peaceful means.
● It ensures stable employment for the workers and ensures that they are not
replaced by automated machines.
 Prominent trade unions in India

● The Indian National Trade Union Congress (INTUC)

● The All Indian Trade Union Congress (AITUC)
● The Bharatiya Mazdoor Sangh (BMS)
● The Hind Mazdoor Sangh (HMS)
● The United Trade Union Congress (UTUC)

Types of Trade Unions

● Craft Unions
● General Unions
● Industrial Unions
● White Collar Unions
 Trade Union Recognition
● Recognition means the expressed recognition of a registered trade union by an
employer or by an employers association for the purposes of collective bargaining.
● Recognition is different from registration.
● Recognition is provided to that union which comprises of more than 50 per cent of
the employees in that establishment as its members
● It is the employer and only the employer, who awards recognition to one or more
unions, or refuses such recognition.
 Conditions for Recognition
● Where there is more than one union, a union claiming recognition should
have been functioning for at least one year after registration.
● Membership would be counted only to those who had paid their
subscription for at least three months during the period of six months
immediately after the establishment.
● A union may claim to be recognized as a representative union for an industry
in a local area if it has a membership of at least 25% of the workers of that
industry in that area.
● When a union is recognized, there should be no change in its position for a
period of two years.
● Where there are several unions in an industry or establishment, the one with
 Rights of Recognised Trade Union
● Right to sole representation.
● Entering into collective agreement on terms of employment and conditions of service.
● Collection of membership subscription within the premises of the undertaking, the
right to check-off.
● Holding discussion with departmental representatives of its workers-members within
factory premises.
● To appear behalf of any employee or employees in any domestic or departmental
enquiry
● Nominating its representatives on works/ grievance committees and other bipartite
committees.
Trade unions in India and economic
development.
Trade unions help in accelerate pace of economic development in many ways:

● They help in recruitment and selection of workers

● They teach discipline among workplace
● They enable settlement of industrial disputes in a rational manner
● By helping social adjustment. Workers have to adjust themselves to the new
working conditions the new rule and policies. Workers coming from different
background become disorganized, unsatisfied and frustrated . unions help them
in such adjustment
● Promoting and maintaining national integration by reducing the number of
industrial disputes
● Incorporating a sense of corporate social responsibility in workers
● They help in achieving industrial peace and promotes peace in the country .
it results in harmonious industrial climate which helps in economic and
social development of country.
THANK YOU