Trade Unions

Trade unions:
an offshoot of industrialisation

Concept: Dale Yoder

A continuing, long term association of employees
formed and maintained for the specific purpose of
advancing and protecting the interests of members
in their working relationships.
Features:
1. An organisation formed by employees.
2. A permanent body
3. Formed to protect and promote all kinds of
interests – economic, political and social – of its
members.
4. Includes federations of trade unions.
5. Achieves its objectives through collective
action and group effort.
Objectives:
1. Steady employment
2. Rationalisation of personnel policies
3. Voice in decisions affecting workers
4. Recognition and participation
5. Gaining legislative enactments
6. Miscellaneous services
Functions:
1. Militant functions
2. Fraternal functions
3. Political functions
Why do workers join unions?
1. Economic benefits
2. Platform for self expression
3. Check on arbitrary actions of management
4. Security
5. Employer-employee relations
6. Sense of participation
7. Sense of belongingness
8. Background factors
Importance of trade unions:
Help in accelerated pace of economic development
by –
1. Helping in recruitment and selection
2. Inculcating discipline among the workforce
3. Enabling settlement of industrial disputes
4. Helping social adjustments
5. Creating a committed industrial workforce
Criticism of trade unions:
1. Increased potential for strikes
2. Narrow perspective
3. Resistance to change
4. Fear of increased costs
5. Social costs
6. Lack of employee commitment
7. Artificial scarcity of labour
Methods of trade unions:
1. Mutual insurance
2. Collective bargaining
3. Legal enactment/Political action
4. Direct action
Structure of trade unions:
a) Craft unions: an organisation of wage earners
engaged in a single occupation. Covers all workers
engaged in a particular craft irrespective of the
industries in which they are employed. Ex. Union of
electricians.
b) Industrial union: is organised on the basis of an
industry rather than a craft. Ex. Union in a textile
industry consisting of all crafts.
c) General union: membership covers workers
employed in different industries and crafts..

In India, trade unions have largely been organised by

industry rather than craft.
 Growth of trade unions
Phase 1: 1850 – 1900
1850 – 70: Process of industrialisation started in India
1881: Indian Factories Act was enacted
1885: Birth of Indian National Congress
Trade union movement headed by philanthropists and social
workers.
Slow growth of trade union movement
Poor working conditions, low wages, long working hours and other
forms of exploitation resulted in mounting frustration – resulted
in strikes in Bombay, Ahmedabad, Madras and Calcutta
Workers learned the power of unity
Small workers Associations were formed and remained as ‘welfare
bodies’.
1890 – 1900: First union “Bombay Mill Hands Association”. Later in
1897 Railway Union was formed in Bombay.
Phase II – 1900 -1947: Growth phase of trade unions in India
1900 – 1910: Preparatory stage: Following trade unions were
formed:
Printers union in Calcutta in 1905
Postal union in Madras and Calcutta in 1907
Kamkar Hitwardhak Sabha in 1910
These were mainly welfare organisations
1914 – 18 – First World War: Indian independence struggle
and growth of trade union movement
1917 – Russian Revolution
1919 – Formation of ILO
1920 – AITUC
1928 – 35: Fissures in AITUC : AITUF, RTUC, NTU
1935 – 47:
Indian National Congress in power in 7 provinces
Trade unions were formed in line with political parties
Second World War: polarisation of political parties
Attempt of consolidation of AITUC by dissolving RTUC
(1935) and NTU (1940)

Phase III: 1947 onwards

Indian independence 1947
A large number of Labour legislations were passed
Formation of Trade Unions in line of political parties:
INTUC – Congress – 1947, HMS – Socialist Party 1948,
CITU – CPM – 1970, AITUC – CPI
Problems of trade unions in India
1. Uneven growth
2. Low membership (9580 in 2008 to 5097 in 2010)
3. Weak financial position
4. Absence of whole-time paid office-bearers
5. Outside leadership
6. Multiplicity of unions
7. Inter-union rivalry
8. Lack of interest
9. Limited stress on welfare
10.Lack of public support
Measures for strengthening of trade unions
1. Development of strong base
2. One union in one industry
3. Financial stability
4. Paid union officials
5. Elimination of political influence
6. Development of internal leadership
7. Expansion of union activities
8. Recognition of trade unions
Recognition under the Code of discipline:
1. Where there is more than one union, a union,
claiming recognition should have been functioning
for atleast one year after recognition.
2. The membership of a union should cover atleast
15% of the workers in the establishment concerned.
Membership should be counted only of those who
had paid their subscription for atleast 3 months
during the period of 6 months immediately
preceding recognition.
3. A union may claim to be recognised as a
representative union for an industry in a local area if
it has a membership of atleast 25% of the workers of
that industry in that area
4. When a union has been recognised, there should be
no change in the position for a period of 2 years.
5. Where there are several unions in an industry or
establishment, the one with the largest membership
should be recognised.
Rights of recognised Unions:
1. A right to “check-off”.
2. Use of the notice board on the premises of the
undertaking.
3. Appointment of its nominees on the Workers’
Committee.
4. Representing an employee in any proceeding under
the Industrial Disputes Act.
5. The right to discuss with the employer the
grievances of a member relating to his discharge,
removal, dismissal or suspensions.
6. To appear on his behalf in any domestic or
departmental inquiry.
7. To hold discussions on the premises of the
undertaking with the employees (union members)
without interfering with the due working of the
undertaking.
8. To meet and discuss with an employer or any other
person appointed by him in that behalf, the grievances
of employees employed in his undertaking.
9. To inspect, if necessary, in an undertaking any place
where an employee of the undertaking is employed.

Obligations of recognised unions:

To bargain collectively in good faith with the employer.