Trade Unions.pptx

LEARNING OUTCOMES;
BY THE END OF THIS LESSON, STUDENTS CAN BE ABLE TO;
1. DEFINE THE TERM TRADE UNION.
2. STATE THE PRIMARY FUNCTION OF TRADE UNION.
3. STATE MEMBERS OF THE TRADE UNION.
4. EXPLAIN THE OBJECTIVES OF TRADE UNION.
5. DESCRIBE THE FUNCTIONS OF TRADE UNION.
6. STATE THE IMPORTANCE OF TRADE UNION.
i. General
ii. To economic development
iii. To the society (its social responsibility)
7. SPECIFY THE REASONS FOR JOINING TRADE UNIONS.
8. OUTLINE THE HISTORY OF PNG TRADE UNION
9. COMPARE PNGS IR SYSTEM TO BRITISH AND AUSTRALIAN INDUSTRIAL RELATION SYSTEMS BY STUDYING THEIR HISTORICAL DEVELOPMENT.
10. OUTLINE THE FACTORS AFFECTING UNION MEMBERSHIP IN PAPUA NEW GUINEA
11. EXPLAIN HOW TRADE UNION RECRUITMENT IS DONE IN PAPUA NEW GUINEA
12. THE TYPES OF UNION WITH REFERENCE TO PNG ENVIRONMENT
Prepared by: Ms S.L.Justus Management & Office Admin
Department KBC - 2019
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4.1 – Member of Trade Union
4.2 – Objectives of Trade Union
4.3 – Functions of Trade Union
4.4 – Importance of trade Union
4.5 – Reasons for joining Trade Union
4.6 – Trade Unions in PNG
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Trade unions are formed to protect and promote the
interests of their members.
Primary Function to protect the interests of workers against
discrimination and unfair labor practices.
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Trade Union Representative is called…………………………….
A Shop Steward
Sidney & Beatrice Webb:
A trade union as we understand the term is a continuous association of
wage earners for the purpose of maintaining or improving conditions of
their working lives.

4.1 The Members of Trade
Unions…….
1.Workmen
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All persons employed in the trade or industry whether or not in the
employment of the employer with whom the trade disputes arises.
Broadly speaking, workmen must be: Persons
Employed
In any trade or industry
To do work.
the head of the department;
chief executive officer of that authority;
An “employer” does not cease to be an “employer” merely
because instead of employing workmen himself he authorizes his
agent or servant to employ them.
include his heirs, successors and assigns
2.Employers

4.2 Objectives of Trade Unions……
Trade unions are formed to achieve the following objectives;
1.Representation
2.Negotiation
3.Voice in decisions affecting workers
4.Member services
a) Education and training
b) Legal assistance
c) Financial discounts
d) Welfare benefits
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• Trade unions represent individual workers when they have a
problem at work
• Trade unions negotiate with the employers to find out a solution
to differences between employer & employee.
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.
• intervention of unions in management’s personal policies
(promotion, layoff, retrenchment, transfer) is a way through
which workers can have their say in the decision making to
safeguard their interests.
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1. Representation
2. Negotiation
3. Voice in
decisions
affecting
workers

4. Member services
During the last few years, trade unions have increased the
range of services they offer their members. These include:
i. Education and training - Most unions run training
courses for their members on employment rights,
health and safety and other issues.
ii. Legal assistance - As well as offering legal advice on
employment issues, personal matters, like housing, wills
and debt.
iii. Financial discounts - People can get discounts on
mortgages, insurance and loans from unions.
iv. Welfare benefits - Some of the older unions offer
financial help to their members when they are sick or
unemployed.
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4.3 Functions of Trade Unions
Two broad categories of functions to achieve
objectives.
1.Militant Functions
2.Fraternal Functions
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1. Militant Functions
When the unions fail to accomplish these aims by the method of
collective bargaining and negotiations, they adopt an approach and
put up a fight with the management in the form of go-slow tactics,
strike, boycott, gherao, etc. Hence, these functions of the trade unions
are known as militant or fighting functions.
Thus, the militant functions of trade unions can be summed up as:
i. To achieve higher wages and better working conditions
ii. To raise the status of workers as a part of industry
iii. To protect labors against victimization and injustice
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2. Fraternal Functions
Trade Unions aims at rendering help to its
members in times of need.
To generate self confidence among workers
To encourage sincerity and discipline among
workers
To provide opportunities for promotion and
growth
To protect women workers against discrimination
(legal assistance)
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4.4 Importance of Trade Unions
a pre-requisite to industrial peace.
Trade unions play an important role and are
helpful in effective communication between the
workers and the management
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Trade unions help in accelerated pace of economic development
in many ways as follows:
by helping in the recruitment and selection of workers.
by inculcating discipline among the workforce
by enabling settlement of industrial disputes in a rational
manner
by helping social adjustments.
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promoting and maintaining national integration by
reducing the number of industrial disputes
incorporating a sense of corporate social responsibility in
workers
achieving industrial peace
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Some important social responsibilities of trade
unions include:

4.5 Reason for Joining Trade Unions
1. Greater Bargaining Power
2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Sense of Belongingness
6. Platform for self-expression
7. Betterment of relationships
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4.6 Trade Unions in
PNG
4.6.1 The rise and Growth of
Unions: World History
British
Australia
4.6.2 Papua New Guinea
union movements.
Introduction
Peak Councils (The Federation of
Workers Union)
Trade Union Congress
Factors affecting union
membership in Papua New Guinea
Trade Union Recruitment in PNG
The types of Union in reference to
PNG environment
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4.6.2 Papua New Guinea union movements.
PNG Historical Background
Reference: Hess & Imbun
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A country’s fundamental features of industrial relations whether in whole or
segment, (Dunlop) depends on three factors:
effect of chronological period,
Russian Revolution of 1917 and establishment of International Labour
Organisation (ILO) in 1919
pattern of social change
emergence of a labour movement
process of economic development.
Question:
So, PNG industrial relation is a by-product of which factor?
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1960
Australian colonial Administration of the Territory of Papua & New Guinea
legislated for the introduction of a system of compulsory conciliation and
arbitration.
Reason: 60 years of paternalistic over-regualtion of labour increased vocal
nationalist sentiment.
Collective actions of Port Moresby workers resulted in reappraisal of Govt
policy. Minister for Territories Paul Hasluck legislated for a modern system of
industrial regulations which includes legalisation of unions
Two legislations were:
i. Industrial relations ordinance &
(made provisions of Industrial Councils, Board of Inquiry, direct negotiation as well as
compulsory conciliation and arbitration)
ii. Industrial organisation Ordinance
(legalised unions and offered them a dubious degree of protection from civil lawsuit
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New IR system was tripartite in nature.
No unions to represent workers in negotiations thus
Department of Labour Officers (later; Bureau of Industrial Organisation) did
negotiation.
Betweet 1963 – 1975 (independence) 47 unions registered under the IOO
Three factors affecting the effectiveness of unions:
i. Small number of members
ii. Regionally based unions thus members were too scattered and most were not
public servants ( Coverage).
iii. Membership was subject to wild fluctuation.
Thus poor level of union development undermined the machinery's potential for
dispute resolution and wage fixing issues.
1972
Amendments to the IRO; Minimum Wage Board (tribunal); the centrepiece of the
wage fixing system.
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poor level of union development is revealed in PNG Peak Union
Council. Began in Mid 1960 as ;
Federation of Workers Association (FWA)
By Department of Labour official and Politicians
By early 1970s; FWA capacity for wage claim.
1973
Organisation came under influence of radical Pangu Party
nationalist.
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Trends in PNG Unionism

For the next decade;
Tony Ila dominated PNG peak union council ( leader for Lae and a PANGU advocate).
Ila rule became more conservative. Work closely with the American Federation of Labour
Congress of Industrial Organisations (international aid agency) and America-Asia Free
Labour Institute.
Ila use Americans as a source of finance. Confusion between union and business activity
became more pronounced.
Built PNGTUC office and workers club complex
Medical centre in Lae
With American influence sought to take PNGTUC along the road of business unionism
with various business proposals.
Workers wage and conditions were neglected. Mostly into business schemes.
Minister for Labour late 1970s. At the same time President of PNGTUC (dual Role)
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4.6.1 The rise and Growth of Unions: World History
End 18th century – beginning 19th century
First Union; due to development of Capitalism
Oppressed by Employers & Gov’t; considered illegal associations or conspiracies
in the restraint of trade.
During 19th century
Favorable court decisions and legislation actions eliminate legal barriers to
unionism.
Depression: most unions did not survive.
1917
Russian Revolution (Communism) Capitalism rejected in favor of socialism,
anarchism, syndicalism.
20th Century
Unionism extended; semi-skilled and unskilled workers in coalmines, on the
docks, in the transport industry, and in the factories.
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4.6.1 The rise and Growth of Unions: World History
Britain Australia
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Early 1980s
Pangu out of government: Ila hold over PNGTUC
lapsed/dropped.
Port Moresby unions allied with Bougainville Mine Workers
Union (militant and effective) moved to have Ila replaced and
Hendry Moses of the BMWU became PNGTUC president in 1983.
In order to understand the significance of these events, let
us take a brief detour off the history of peak council and look at
some individual unions which were operating successfully.
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Two organisation which have chosen a different path and bad proven more effective were the:
i. BMWU and
ii. Central District Waterside Workers Union (CDWWU)
 grew out of the ruins of the Port Moresby Workers Association; collapsed in 1960s
 The waterside Workers decided they would be much better off in their own union.
 Gavera Rea first leader (aspiring local politician)
 1972 election he when into parliament
 Introduced a young Australian Reg McAlister as a possible replacement
 Activist in clerical and shop assistant’s movement Created public sensation.
 Willingness to take militant action(matched their mood).
 Brought to them an understanding of industrial tactics. (Previously lacking)
 Embark on a campaign to reform the casual system of employment.
 Major strike in 1972 caused government to create a Board of Inquiry into its system of employment
 Assisted by AWWF
 Achieved major victory much credit to McAlister and the CDWWU officials.
 Casual system of employment was replaced by register of waterside workers; rooster to equalise work opportunity & payment for
attendance money for those not required to work on a particular day.
 Employers right to hire and fire as they wished were severely restricted
 Major increase in wage rates
 And improvement in working condition aslos achieved
 1982- amalgamation of maritime union in Port Moresby, Lae, Rabaul, Madang to form PNG Waterside Workers and Seamen’s Union
(WWSU)
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The Public Sector:
i. PNG Teachers Association (PNGTA) –
ii. Public Employees Association (PEA) –
Stand aloof from PNGTUC
1987 both affiliated
Following year both unions refused to pay affiliation fee on the grounds
that PNGTU was not doing enough for its members.
The large pubic sector was expected to become the dominant forces in the
reform of PNGTU.
1991 – argument still ongoing, both parties trying to find a formula by
which the large public sector unions could bring their resources in to
PNGTU without completely domination it.
The future success depends heavily upon the outcome.
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1962
Trade unions formally began in PNG after the enactment of the Industrial Relations Act and
Industrial Organizations Act by the Colonial Administration.
1. PEAK COUNCIL; FEDERATION OF WORKERS UNION
1975
After independence only a handful of union began to use the newly installed industrial system.
Public Sectors were:
The Public Service Association
Teachers Association was organizationally competent.
Private Sector unions were:
The Panguna Copper Mine Workers Union
Centre for District Water side Worker’s union
Early 1970s
Introduction of Minimum Wage Board
Same union were able to advocate.
Other union apply to have wages altered.
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Mid 1960
Establishment of Peak Council
Role:1.Industrial role 2. Political Role
1964
Department of Labour organized conference; Madang (5 registered workers
associations)
 Their agenda was to educate the leaders of workers association concerning a need for the
process by which a federation could be created.
 Rabaul, Port Moresby, Wewak agreed to join.
 Independent (largest and best organized unions) Unions and Police Association and Public
Service Association did not agree to join.
 Thus federation was prevented from achieving a fully peak union.
1970
FWA (Federation of Workers Union) sought registration as an industrial
organization.
……………..(Take note of the results of the above as stated in your lecture notes)…………………
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2. TRADE UNION CONGRESS (PNGTUC)
1974
FWA & Pangu endorsed Ila & Collins as presidents.
FWA affiliated with the International Confederation of Free Trade Union
(ICFTU).
Illa intention of Unions Role;
 Union to become business union based on US model
 Direction was unusual since PNG unions were part of the system of
conciliation and arbitration and still to be a large extends by political
conservatism
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1975
Collins Resigned
1983
Illa replaced by Henry Moses.
 Constitution modified & long term development plan established.
Secretary: Lawrence Titimur
 Research Officer: John Paska
 Titimur was able media user often made press release affecting workers.
 Attracted more affiliates
 Next couple of years saw TUC as Peak Union organization
 Former Fence sitters such as the Public employees Association (PEA) and
Teachers Association (TA) made moves to join TUC
 Later they affiliated and it was an historic occasion, membership –20 000
 Improve financial and industrial strength of a reviewed union movement.
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2018
John Paska elected President
General Secretary; Clement Kanau
Priority issues: Minimum wage from K3.50/hour to K5.00 per hour.
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