THE EFFECT OF TRADE UNION

1. Presented by:
CH. MAHANTH
(22CEM7R12)
MANSI MISHRA
(22CEM7R13)
PRESENTED IN
Class of :-
Prof. SAEMA
AKTHAR MAM
TOPIC-
THE EFFECT
OF TRADE
UNIONS

2. A trade union is such an organisation which is created
voluntarily on the basis of collective strength to secure
the interests of the workers.
Introduction….

4. The major objectives of trade union are the
following:
1. Better wages & working conditions and
promotion of Industrial peace
2. Protection against Exploitation and
Victimization.
3. Representation (Workers’ Interests)
4. Negotiation (Collective Bargaining)
5. Voice in decisions (Lay off, Retrenchment)
affecting workers
6. Member Service (Education, Training,
Welfare, Discounts, Loans)
Objectives of Trade Union

5.  Wage & salary bargaining
 Fight for continuous improvement in employee benefits
 Improving working conditions at the workplace
 Improving welfare, healthcare & recreation facilities, and leisure at workplace
 Increasing rest periods, holidays, paid leave and time-offs
 Decreasing working hours, workload mainly manual, and hazardous working
conditions
 Improving career and salary rise prospects & job security
 Protecting employees against arbitrary/unjust actions of Management
Specific Functions of Unions

6.  For industrial peace
 Decisions taken through the process of collective bargaining
and negotiations between employer and unions are more
influential
 Effective communication between the workers and the
management
 Economic development
 Recruitment & selection
 Discipline among workforce
 Settlement of Industrial Disputes in a rational manner
Importance of Trade Union

7.  Employment Protection and Job Creation.
 Economic Protection.
 Social Status – Identity.
 Political Role – Democratic Institution
 Societal Obligation – Transformation.
 Competitiveness / Sustainable Development.
 Formed to protect and promote the interests of their members
 Primary function is to protect the interests of workers against
discrimination and unfair labour practices
Purpose of Trade Union

8. • 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.

9. 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.
Definition.

10. The Trade Union Act was passed in 1926 under the
title of the Indian Trade Union Act and was brought
into effect from 1st June 1927 by a notification in the
Official Gazette by the Central Government. The
Act was amended in 1947, 1960 and 1962,
Subsequently the word ‘Indian’ was deleted from
the amended Act of 1964, which came into force
from 1st April 1965. A comprehensive trade unions
(Amendment) Act was passed in 1982.

11. Greater Bargaining Power .
Minimize Discrimination .
Sense of Security .
Sense of Participation .
Sense of Belongingness.
Platform for self expression .
Betterment of relationships .

12. Trade union certainly plays an important role
in industrial relations. The advantages of
trade union can be divided into the three:-
• Advantages To Workers.
• Advantages To Employer.
• Advantages To Society.

13. Promote unity.
Ensures improvement in working conditions
and provision of better welfare facilities.
Spirit of self reliance and self respect.
Change in employer’s attitude.
Uniform Wages.

14. Disputes can be avoided or may be solved
amicably (harmoniously, politely) (continuous workflow).
Industrial peace (sense of resp. and loyalty).
Framing healthy labor policies (reduces chance of
industrial disputes in future).

15. Gain sympathy of general public (in crisis)
Propose to the Government (to enact labor policies to
protect and develop labor force of the country in a better way)
Development of industrial economy by
maintaining good industrial relations It will
result in higher and better production at
lower costs.

16. It is a corporate body: The
registered trade union is a
corporate body under section
13 of the Act.
 It enjoys immunity
(exemption) from criminal
conspiracies
 Section 17 of the Trade Union
Act gives immunity to
members and office bearers
of registered trade unions
from criminal conspiracy in
connection with trade
disputes.
RIGHTS OF A TRADE UNION.

17.  Any person who has
attained the age of
18 years can
become the
member of the
union
 The union can
enforce the
performance of
contracts.
RIGHTS OF A TRADE UNION.

18. RIGHTS OF A TRADE UNION.
 The union can keep separate fund for political purposes.
 An agreement between the members of a registered trade
union not to accept employment is valid (not void being
agreement in restraint of trade).
 The union has a right to amalgamate to form a larger
union.
 Members of the union have a right to inspect books.

19. PROBLEMS OF TRADE UNION
1. Small size of the unions
• The small size of the unions is due to various factors, namely, i. The
fact that any seven workers may form a union under the Trade
Unions Act of 1926, and get it registered, a large number of small
unions have grown.
• The structure of the trade union organization in the country is in
most cases the factory or the unit of employment. So whenever
employees in a particular factory or mine are organized, a new union
is formed.
• Unionization in India started with the big employers and gradually
spread to smaller employers. This process is still continuing and
pulled down the average membership. Though the number of unions
and union membership are increasing, average membership is
declining.
• Rivalry among the leaders and the central organizations has resulted
in multiplicity of unions, thereby reducing the average membership.

20. Because of the small size of the unions, they suffer from lack of adequate
funds and they find it difficult to engage the services of experts to aid and to
advise members in times of need. Further, they cannot face the challenge of
employers for long because of their weak bargaining power.
The trade unions suffer from financial weakness for the average yearly
income of the unions has been rather low and inadequate. Under conditions
of multiplicity of unions, a union interested in increasing its membership
figures, usually keeps the subscription rate unduly low and does not collect
even that subscription regularly.
Insufficiency of funds is the main reason for the deplorable conditions of
many a small union. The poor financial position adversely affects their entire
working.
2. Inadequate funds

21. Multiple rival unionisms are an important feature and one of
the great weaknesses of the Indian trade union movement.
Multiple unions are mainly the result of political outsiders
wanting to establish unions of their own, with a view to
increasing their political influence, albeit in urban areas.
The existence of different conflicting or rival organizations,
with divergent political views, is greatly responsible for
inadequate and unhealthy growth of the movement.
A multiplicity of unions lead to inter-union rivalries, which
ultimately cuts at the very root of unionism, weakens the
power of collective 43 bargaining and reduces the
effectiveness of workers in securing their legitimate rights.
3. Multiplicity of the Unions & Intra-Union Rivalry
Another vexing problem is that of intra-union rivalry. Trade
union rivalry is acute and pervades the entire industrial
scene in India. In practically every important industry or
industrial centre, there exists a parallel and competing union
4. Intra-Union rivalry

22. .
Another disquieting feature of the trade unions is the ‘outside’
leadership, i.e., leadership of trade unions by persons who are
professional politicians and lawyers and who have no history
of work in the industry. This is ‘leadership by intellectuals’
rather than ‘by workers’.
It applies at the local as well as at the national level. There are
several reasons for this phenomenon namely, for avoiding
victimization of worker-office-bearers of the trade unions, and
at times for lack of financial resources to appoint whole time
office-bearers.
5. Leadership Issue
One of the biggest problems the country’s trade union
movement faces is the influence of the political parties, i.e.
the most distressing feature is its political character.
6. Politicalisation of the Unions

23. CASE STUDY OF HOTEL
OBEROI.
The employees of the hotel used to get 65 days holiday per year,
but the management wanted to reduce it by 15 days due to
some managerial issues.
The workers readily and strongly opposed this proposal and
approached Maharashtra Samarth Kamgar Sanghatna to solve this issue.
MSKS understood the workers dilemma and went to the
management to reach an understanding via collective bargaining.

24. COLLECTIVE BARGAINING
PROCESS.
1. MSKS agreed to convince the workers but in return asked the management to pay
20 days extra salary in the month of December.
2. The management and workers debated over the issue.
The management found that they had the workers working for 15 extra days and
the workers found that they were being paid for 20 days just for 15 days of extra
work.
3. Both the parties reached an agreement.
Thus, MSKS was successful in creating a win-win situation via collective bargaining.

25. Present Central Trade Union
Organizations.
INTUC (Indian National Trade Union
Congress)
AITUC (All India Trade Union Congress)
CITU (Centre of Indian Trade Unions)
NLO (National Labour Organization)
TUCC (Trade Union Congress Committee)
Bharatiya Mazdoor Sangh (BMS)
Hind Mazdoor Sabha (HMS)