A trade union is an association of workers that aims to secure economic benefits for its members by negotiating with employers collectively. The key characteristics of a trade union are that it is an association of employees in a particular industry or profession, membership is voluntary, it is a permanent body, and it acts collectively to address common interests like wages, benefits, and working conditions. Trade unions can help workers secure better pay and working conditions, get protection from exploitation and unfair treatment, and promote peaceful relations between workers and management. However, many trade unions in India suffer from problems like uneven growth across industries, low membership, and weak financial positions.

1. Trade Union

2. • The trade union is an association, either of employees or employers
or of independent workers. It is a relatively permanent combination
of workers and is not temporary or casual. It is an association of
workers engaged in securing economic benefits for its members.

3. • According to Section 2(b) of the Trade Unions Act of 1926, “a trade
union is any combination of persons, whether temporary or
permanent, primarily for the purpose of regulating the relations
between workers and employers, or between workers and workers
and for imposing restrictive conditions on the conduct on the conduct
of any trade or business, and includes the federation of two or more
trade unions.”

4. • Characteristics of Trade Unions
• Association of employees: A trade union is essentially an association
of employees belonging to a particular class of employment,
profession, trade or industry. For example, there are unions for
teachers, doctors, film, artistes, weavers, mine workers and so on.
• Voluntary Association: An employee joins the trade union out of his
free will. A person cannot be compelled to join a union.
• Permanent Body: A trade union is usually a permanent body.
Members may come and go but the trade union remains.

5. • Common Interest: The member of a trade union have certain matters of
common interest-job security, better pay and working conditions and so
on, which bring them together.
• Collective Action: Even when an individual employee has any grievance
over certain management decisions, the matter is sorted out by the
intervention of the trade union Employees are able to initiate collective
action to solve any problem concerning any particular employee or all the
employees.
• Rapport with the Management: The trade union seeks to improve relations
between the employees and employers. The officials of the trade union
hold talks with the members of the management concerning the problems
of the employees in order to find an amicable solution.

6. Benefits of TU
• Better working conditions
• Better wage rate
• Protection against exploitation
• Protection against victimization
• Provide welfare measures
• Promote industrial peace
• Take up Collective Bargaining
• Look after the interest of trade

7. Problems of Trade Union Movement in India:
• i. Uneven Growth:
Trade unions are concentrated more or less in major metropolitan
cities in India and traceable only in large scale units especially in cotton
textile industry. The degree of unionism also varies from industry to
industry, iron and steel, tobacco, railways, cement, banking, insurance
etc. There is very little trade union activity in small scale sector,
agricultural sector and domestic sector.

8. • ii. Low Membership:
• Most of the unions have low membership. Though the number of
unions and union membership are increasing, average membership is
inadequate. Because of their small size, unions suffer from lack of
adequate funds and find it difficult to engage the services of experts
to aid and advise members in times of need. They can’t bargain with
employers effectively on their own.

9. • iii. Weak Financial Position:
Most of the trade unions in India suffer from inadequate funds. This
unsound financial position is mostly due to low membership and low
rate of membership fee.

10. Quality Circles
• A quality circle is a participatory management technique that enlists
the help of employees in solving problems related to their own jobs.
Circles are formed of employees working together in an operation
who meet at intervals to discuss problems of quality and to devise
solutions for improvements. Quality circles have an autonomous
character, are usually small, and are led by a supervisor or a senior
worker.

11. • Employees who participate in quality circles usually receive training in
formal problem-solving methods—such as brain-storming, pareto
analysis, and cause-and-effect diagrams—and are then encouraged to
apply these methods either to specific or general company problems.
After completing an analysis, they often present their findings to
management and then handle implementation of approved solutions.
Pareto analysis, by the way, is named after the Italian economist,
Vilfredo Pareto, who observed that 20 percent of Italians received 80
percent of the income—thus the principle that most results are
determined by a few causes.

12. Characteristics of Quality Circle
The quality circle thus has the following characteristics:
1. A small group of people who do similar work
• The quality circle essentially consists of people who do similar work. But it
does not imply that the circle cannot consult the specialists or others. In
fact, ideas and solutions can be sought from any corner.
2. The members in the circle should not be many
• It is argued that smaller the circle better the coordination and
homogeneity. The circle should look like a team and not a committee. It
should consists of members between three and ten depending upon the
size of the department. As suggestions for removing any snag or improving
the productivity are invited from every member of the department no one
would feel neglected or side tracked.

13. 3. Voluntarily meeting together
People are invited to join the quality circle but they are not compelled. The
members feel the need to meet together to discuss and devise ways to
improve the functioning of their areas concerned. Hence, joining a quality
circle is voluntary and not forced upon.
4. Meeting regularly every week
The duration and frequency of meetings even vary in Japan (where this
concept originated), it is favored to have meetings at least an hour every
week. But actually, the frequency and duration of each meeting should be
decided by the circle members who will take all factors into account such
as the severity of the problem, urgency of problem, number of problem
etc. The date of holding a meeting is also decided by the circle members so
that their meeting does not disturb the production schedule.

14. • 5. Under the leadership of their own supervisor
• The quality circle is purely concerned with work-related problems. Therefore, supervisors of the work area
prove to be the best persons to lead the group, as they are thorough with the functioning of the
department. The idea of electing or selecting the leader from the quality circle members is not encouraged
as it does not work out effectively.
• 6. Identification, Analysis and Solutions
• The circle identify their own problems in their own work area. The circle members are not encouraged to
highlight the fault of others.
• 7. Presenting Solutions to Management
• After collection of data, working out new ideas in consultation with all kinds of people, the members come
to a conclusion which if implemented will deliver the goods. The final idea (solution) should be presented to
the management together by the group members (not by the leader alone or any other member).
Interestingly the circle solutions (projects) are so meticulously thought out that their outright rejection (not
favored for implementation) by the management is rare.
• 8. Self Implementation
• The quality circles are made for implementation of their solutions as they deal with the problems over the
fence in the next department are completely isolated from it. Only each department has to care for their
babies.
• 9. Meeting time any time
• The meetings of the circle members may not be arranged essentially during their normal working hours. As it
may affect their working and thereby production. Also, if the work is done in shifts then the circle members
may come different shifts and a common free time for all may be difficult to spare within normal working
period. Hence, such meetings could be held any time in a working day and holiday.

15. Advantages of Quality Circles
The following are some of the advantages of Quality Circles.
1. It infuses team spirit among the workers.
2. It improves decision making ability.
3. It improves employee communication at all levels of the organization.
4. It improves problem solving ability.
5. It improves leadership skill.
6. It builds confidence / trust.
7. It incorporates a sense of belonging to their organization.
8. It creates a sense of corporate loyalty and corporate pride.