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1. TRADE UNIONS AND COLLECTIVE BARGINING
Submitted By
Cheruku. Narendra
Assistant- HR.
CCL Products (India) Ltd, Duggirala.
Phone: 9885955498,9618247023. Email:cnnarendra@gmail.com
Abstract:
TRADE UNION
Trade Union means a combination formed for the purpose of regulating the relations not only between
workmen and employers but also between workmen and workmen or between employers and employers
- Trade Union Act 1926
WHAT IS TRADE UNION
A trade union is an organised group of workers. Its main goal is to protect and advance the interests of its
members
A union often negotiates agreements with employers on pay and conditions. It may also provide legal and
financial advice, sickness benefits and education facilities to its members
Trade unions aim to represent the interests of people at work and negotiate with employers for better
terms and conditions for their members
HISTORY OF TRADE UNION
The first trade union was started in 1877 in Nagpur
It was this labour protest on an organized scale, through the support of some philanthropic
personalities, that organized labour unions came to be formed
The setting up of large-scale industrial units, created conditions of widespread use of machinery, new
lines of production, and brought about changes in working and living environment of workers, and
concentration of industries in large towns
The first Factory’s Act was passed in 1881 by N.M. Lokhode
In 1919 Madras Labour Union was the first Union in India to be formed and established by B. P. Vadia
Bombay Trade Union formed in 1975 under the leadership of Sorabjee Shapurjee Bengatee
PROCEDURE OF REGISTRATION OF TRADE UNION

2. At least 7 members should be present for an application
It should in a prescribed form ,fees and should be registered under the Registrar of Trade Unions
Should be accompanied by a copy of the Rules of TU
Certificate of Registration is issued as soon as TU has been duely registered under the Act
FUNCTION OF TRADE UNION
To secure for workers better wages
To safeguard security of tenure and improve conditions of service
To increase opportunities for promotion and training
To improve working and living condition
To provide for educational cultural and recreational facilities
To promote identity of interests of the workers
To offer improved level of production and productivity discipline and high standard of quality
To promote individual and collective welfare
WHAT IS TRADE UNION MOVEMENT
The trade union movement started after 1918, when the workers formed their associations to improve
their conditions. It is, thus, a part of the ‘labour movement’, which is a much wide term
A trade union is an essential basis of a labour movement for without which one cannot exist, because
trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity
Trade Unionism in India has been the natural out come of the modern factory system
The main elements in the development of trade unions of workers in every country have been more or
less the same
The development of trade unionism in India has had a checkered history and a stormy career
TRADE UNION MOVEMENT GROWTH
Social Welfare Period (1875-1918)
The development of industries led to large-scale production on the one hand and social evils like
employment and exploitation of women and child labour and the deplorable workable conditions, the
government’s attitude of complete indifference in respect of protection of labour from such evils, on the
other.
Early Trade Union Period(1918-1924)
The year 1918 was an important one for the Indian trade union movement.
The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising
cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort
to collective action.
Left-Wing Unionism Period (1924-1934)

3. In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and
imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by several
factors
Trade Union’s Unity Period (1935-1938)
In mid-thirties the state of divided labour movement was natural thought undesirable and soon after
the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the
basis of ‘a platform of unity’.
Second World War Period (1939-1945)
The Second World War, which broke out in September 1939, created new strains in the united trade
union movement.
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
The Post-Independence Period (From 1947 to-date)
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
IMPORTANCE OF TRADE UNIONS TO EMPLOYERS
Trade unions have always had two faces, sword of justice and vested interest". The
balance between these two features can change over time; however it seems clear that in
many countries, unions have lately come to be widely perceived as conservative
institutions, primarily concerned to defend the relative advantages of a minority of the
working population. However if we examine closely we shall find that trade unions have
not just benefited the employees but also the employers in a number of ways:
 Helps management in bringing about any kind of changes
 Provides for a mechanism to deal with employees at large, dealing with large
number of workers on one to one basis is not possible, this is where a trade union
comes into picture
 Securing maximum cooperation from workers.
 Meeting its social obligations
FUTURE DIRRECTON OF TRADE UNIONS

4. Early emphasis
At its inception the labor market was dominated by the classical economics view which
espoused free and unregulated labor markets. This laissez-faire capitalism led to social
injustices and inequities since labor did not have the power to bargain with employers.
Additionally, the dominant position of the employer in what was formerly termed the
"master and servant" relationship prevented labour from enjoying rights. IR therefore came
to espouse a degree of labour market regulation to correct the unequal bargaining power.
The causes of labor problems - even those within the enterprise - were thought to need
addressing through a range of initiatives external to the enterprise, by
 The State through protective labor laws and dispute settlement mechanisms.
 Voluntary action on the apart of employees to protect themselves and increase their
bargaining strength through freedom of association and collective bargaining, but
backed by State interventions to guarantee these rights.
Collective IR operates in three ways. One way is through national or industry level
agreements between unions and employers' organizations. A second way is through
agreements between a single employer and a union. A third way is through legislative
enactments applicable to employers and employees generally, or to particular sectors, or
to particular categories of employees.
Current and future issues
Cross-Cultural Management
Asia is a heterogeneous region, characterized by ethnic, cultural, linguistic and religious
diversity. Due to substantial increases in investment in Asia by both Asian and Western
investors, many employers and unions are dealing with workers and employers from
backgrounds and cultures different to their own. Some of the resulting problems and
issues fall within cross-cultural management. The problems arise due to differences in IR
systems, attitudes to and of unions, work ethics, motivational systems and leadership

5. styles, negotiating techniques, inappropriate communication, consultation and participation
procedures and mechanisms, values expectations of workers and interpersonal
relationships.
These cross-cultural management issues in turn pose the following problems:
 What particular IR and human resource management considerations at the
regional, sub-regional and country level affect the development of sound relations at
the enterprise level in a cross-cultural environment?
 What would be the most effective programs for this purpose?
 How can investors in Asia familiarize themselves with the environmental and
cultural considerations in the recipient country relevant to their managing people at
work?
 How could information be collected, analyzed and disseminated?
Names and details of some Unions in India
1.The Indian National Trade Union Congress
2. All-India Trade Union Congress (AITUC)
3.United Trade Union Congress (UTUC)
5.National Front of Indian Trade Unions (NFITU)
6.Centre of Indian Trade Union (CITU)
CONCLUSION
Trade Union is an important factor of the current society, as it safeguards the basic interest and needs of
both the employees as well as employers, by giving better terms and conditions of employment, secured
jobs, better wages, favorable working environment which in turn leads to desired profitability.
COLLECTIIVE BARGAIINIING
Bargaiiniing-- Meaniing
• It is a technique that has been adopted by union and management to reconcile their conflicting
interests.

6. • It is called collective because the employees, as a group, select representatives to meet and discuss
differences with the employer.
• The negotiations for collective bargaining require joint sessions of the representatives of
labour and management.
Collllecttiive Bargaiiniing-- Deffiiniittiions
In the words of
• Harrinon, “is a process of accommodation between two institutions which have both common and
conflicting interests.”
• Randle, “Collective bargaining has different meanings for different individuals or groups. Trade
Unions, Managements and the public have divergent views on this process because each is differently
affected by it.”
• Richardson, “Collective bargaining takes place when a number of work people enter into a
negotiation as a bargaining unit with an employer or group of employers with the object of reaching
an agreement on the conditions of the employment of the work people.”
• Encyclopedia of Social Sciences, “Collective bargaining is a process of discussion and
negotiation between two parties one or both of whom is a group of persons acting in concert. The resulting
bargain is an understanding as to the terms and conditions under which a continuing service is to be
performed. More specifically, collective bargaining is a procedure by which employers and a group of
employees agree upon the conditions of work.
Collective Bargaining- Characteristics
• Two way process
• Agreement & Mutually settling it
• Continuous process
• Group Action
• Flexible
• Fluidity & ample scope for a compromise for a mutual give & take before the final agreement is
reached
• Dynamic & Static
• Not a Competitive process but a Complementary process
• It is an art, an advanced form of human relations.
• It is a device and a procedure used by wage earners to safeguard their interests.
Objjecttiives & Siigniiffiicance
•It is a technique that has been adopted by unions & management for compromising
their conflicting interests.
•It plays a significant role in improving the labour- management relations and in ensuring industrial
harmony.
•It helps in easing out many minor differences and there are many instances in which even some
major disputes are set to be settled without any work stoppage or outside intervention.
•It provides a climate for smooth progress.
•It ensures that managements do not take any unilateral decision.
•It develops a sense of responsibility and of self-respect among the workers and is a guarantee
towards wage protection etc.
GOALS TO BE ACHIIEVED
BY WORKERS
•Economic goals: Wages, Hours of work, The working conditions, Fringe benefits
•Non-Economic goals: Worker’s satisfaction with his job, protection of the Union as a growing
institute (right to union)
BY MANAGEMENT
•Control of the organization,

7. •Maintaining its ability to manage with a high degree of flexibility and efficiency of operation
•Control of hiring, promotion, discharge, lay off
•Personnel techniques of management
•Lay down fair rates of wages and norms of working conditions.
•Achieve an efficient operation of the plant.
•Promote an efficient operation of the plant.
•Promote the stability and prosperity of industry.
•Bring social change through acceptable solutions
Beneffiitts off C..B..
•It provides a method for the regulation of the conditions of employment of those who are directly
concerned about them.
•It provides a solution to the problem of sickness in industry and ensures old age pension benefits
and other fringe benefits.
•It creates new and varied procedures for the solution of the problems as and when arise-problem
which vex industrial relations and its form can be adjusted, conditions incorporated in the
agreement by those who are engaged in a similar industry.
•It provides a flexible means for the adjustment of wages and employment conditions to economic
and technological changes in the industry, as a result of which the chances for conflicts are reduced.
•As a vehicle of industrial peace, collective bargaining has no equal. It is the most important and
significant aspect of labour-management relations and extends the democratic principle from the political to
the industrial field.
•It builds up a system of industrial jurisprudence by introducing civil rights in industry. In other words,.
It ensures that management is conducted by rules rather than by arbitrary decisions
Scope off Collllecttiive Bargaiiniing
•A preamble stating why the parties had met together, usually making reference to the union’s
charter of demands which formed the starting point for discussions .•A statement of principles such as rights
and responsibilities of both parties. •Recognition of union by management and acceptance of the
union’s right to organize the workers and to carry out all the normal activities of a trade union. •A section
dealing with remuneration, including basic pay scales, grades and job classification, dearness allowance and
other allowances, incentives schemes and annual bonus.•A section on working conditions such as hours of
work, overtime, recruitment, transfer, promotion, etc .•A section on service benefits and amenities
such as leave, public holidays, medical benefits, sick pay, retirement age, pension or gratuity scheme,
provident fund etc.• Clauses relating to special joint machinery may be included. These include joint
production committees, joint labour relations, job evaluation, discipline, safety and welfare committees as
well as workers’ committees. •Grievance procedure of two kinds may be incorporated in an agreement.
First the procedure for dealing with individual grievances as they arise day to day within the
establishment. This may follow to a lesser or greater degree the model drawn up by the Indian labour
conference.
Second is the method of settling any dispute over interpretation of any part of agreement. This
procedure includes voluntary arbitration.
iimporttantt ffactts perttaiiniing tto collllecttiive bargaiiniing natture
•It is carried out on a collective as distinct from an individual basis. The collective bargaining is
bargaining by groups of people.
•In the bargaining process, the main actors are employers and their association.
•The object of collective bargaining is rule – making i.e. reaching an agreement specifying the rules
pertaining to employment relationship.
•The main focus of these rules is on the terms and conditions of employment.
•Collective bargaining is a “Collective bipartite confrontation” between workers and management with
a view to arrive at an agreement , for the objective not, ‘welfare’ but ‘compromise’.

8. •It is both a device and a procedure used by wage – earners to safeguard interests; it is an institution
or instrument of an industrial organisation, discussion and negotiations between the two parties.
•It is however, a technique by which an attempt is made to reconcile the needs, objectives of
workers and employers and is, therefore, an integral part of industrial society.
•The essence of collective bargaining lies in the readiness of the two parties of dispute to reach an
agreement or mutually satisfying settlement.
• It is concerned about the emotions of the people involved in it as well as with the logic of interests
Collllecttiive Bargaiiniing Vs.. JJoiintt Consullttattiion
There is a lot of differences between the two processes:
•Collective bargaining: The object is to arrive at an agreement on wages and other conditions of
employment about which the parties start with divergent viewpoints but ultimately attempt to make
compromise. As soon as the bargain is made, the terms of the agreement are put into action.
•Joint consultation: such as joint councils refers to the sharing of information and suggestions with
regard to issues of common interest including health, safety, welfare and productive efficiency.
Although the results differ, course of activities may be in the form of recommendations, the ultimate
decisions lies with the management.
Practice of Collective Bargaining
The consultative machinery for now practices in India at almost every level i.e.
•At the level of undertaking: Works Committee & Joint committees
•At the industrial level: Wage Boards & Industrial Committees
•At the state level: Labour Advisory Board
•At the national level: Indian Labour Conference & Standing Labour Committee
It is also called bipartite and tripartite bodies .
The bipartite consultative machinery:
Two important constituents viz., the works committee and the joint management councils.
Tripartite bodies:
•The Indian labour conference
•Standing labour committee
•Committee on conventions
•Industrial committee
And other bodies of tripartite nature deal with various aspects of labour program.
•Work committee
•Joint management councils
THE PROCESS OF COLLECTIVE BARGAINING
•Prenegotiation Phase
•The selection of Negotiators
•The Strategy of Bargaining
•The Tactics of Bargaining, and
•The Contract
While Memoria C.B. has described two stages in collective bargaining i.e.
1-The negotiation stage and
2-The stage of contract administration
1-Preparation for Negotiation- Negotiation may commence at the instance of either party-of
labour or of management.
A- Some managements bids the time till trade unions put proposals for trade unions
B- Positive Bargaining: Managements submit their own proposals for consideration by
labour representatives

9. Importance of Pre-Negotiation Phase
1- Highly Vital for both management and employees.
2-Important to study the status of the labour organization (Union)
3-Previous negotiations, back ground and personality of the particular union negotiators to be
studied.
Approval from top management must be obtained on
1-The specific proposals of the company including the objectives of the negotiations
2-The appraisals of the cost of implementing the proposals
3-An approval in principle of the demands over which bargaining to be made (Demands to
be accepted and not to be accepted
PROCESS OF NEGOTIATION BARGAINING
2-Negotiation Technique and procedure-
•Undertaken by a representative of each party or committee or by line or staff personnel. The
negotiation committee may be composed of three to six members.
•A committee should be small,otherwise
•Committees become unwary;
•They are more difficult to assemble, more likely to disorderly;
•They are more inclined to concentrate on a discussion of in grievances or problems of
interest to one group rather than to the union as a whole.
A-Strategy of Bargaining- Strategy is concerned with mapping out plan and basic policies to be in the
bargaining process. Tactics are the particular action that are taken with bargaining table. Avoid mutual
agreement clauses which would prevent management action. Management should retain the right to manage
the firm subject to challenge by the union under the contract.
•Keep one’s eyes on the entire package. A work-procedure concession may eventually cost
more than a substantial pay increase.
•Keep company personal informed of the progress of bargaining sessions.
•Develop agreement s where the union leader can always maintain that they “won” union leaders
have to for selection on their record and management can more frequently afford the appearance of
having “lost”.
•Determine the point at which the company is willing for the union to go on strike. The union is fully
aware of the fact that the strike is its most potent bargaining weapon
TACTICS OF BARGAINING
Arnold Campo suggests that the following procedure should be adopted in negotiation
A-For Union & Management-
•Be friendly in negotiation. Introduce everybody.
•Be willing to listen. There would be time enough for you to worry about things and say “no”, after
you have heard all the facts
.•Give everyone an opportunity to state his position and point of view.
•Know something about the personal history of the other party’s representatives.
•Always bear in mind the fact that you to do what is right and fair.
•Both parties should strive to maintain an objective approach to a problem or grievance.
•Do not attempt to guide the discussion along a straight line which goes straight to the solution of
the problems.
•Define each issue clearly and unambiguously or detail in the contract to ensure greater flexibility.
•Avoid Sharp practices.
B-For the management-

10. •The management must, at the outset, make sure that the labour it is going negotiate
with, are really the representatives of the workers.
•Don’t use lawyers as negotiators unless they intimate knowledge of industry relations.
•Don’t limit contracts with the union to controversial subjects, but consider such matters as are of
common interest to both
3 -FOLLOW-UP ACTION - The collective bargaining should be printed and circulated among the
employees they can know the reality about it. What has been agreed upon between management and
represent of union meetings of supervisors should be called with effectively.
A-CONTACT MANAGEMENT When the process of a negotiation has been completed, it is the time to
sign the contract, the terms and conditions, which must be observed by both the parties. Once an
agreement is signed, both the management and trade unions are required to honor it in letter
and sprit, Smith has rightly observed “ An agreement is merely the frame work for everybody
relationships…. The bargaining is carried on daily.”
For Management-
•The management should be available for open discussion/ conferences with works
representatives so that it may acquire first hand knowledge of the changing attitude and problems of its
employees.
•Give credit to the trade union for anything work while achieved by it.
•The management should avoid paternalism and strive to treat the trade union
representatives and its employees as equals.
•Many restrictive practices, and what appear to be unseasonable demands on the workers or
their representatives, will disappear if the management strives give regular employment to its workers.
For Trade Unions-
•That is the responsibility of the trade unions that their members understand terms of the agreement,
it has reached with the management.
•The union representatives should make themselves available for a conference whenever
they are required to do so by the management.