Trade unionism

 The most important result of modern industrial
revolution is the evolution and growth of trade
unions. The industrial revolution gave birth to the
factory system. Latest technology and methods of
production started to be used and large scale of
production in the factories become a common trend.
As a result of these developments, a new system of
capital economy development which caused
numerous labour problems. The society was divided
into two groups: workers and employers. It resulted
in the evolution of trade union.
INTRODUCTION

 According to Sec 2(h) of the Trade Union Act 1926,
Trade Union means any combination, whether
temporary or permanent formed:
1) Primarily for the purpose of regulating the relations of
a) Between workers and employers, or
b) Between workmen and workmen, or
c) Between employers and employers, or
2) For imposing restrictive conditions on the conduct of
any trade or business. It includes any federation of two or
more trade unions
DEFINITION

 According to Sidney and Beatrice Webb's, ‘A trade union, as
we understand the term, is a continuous association of
wage-earners for the purpose of maintaining or improving
the conditions of their working lives’.
 According to Clyde E. Dankert,‘A Trade Union is a continuing
organization of employees established for the purpose of
protecting or improving, through collective action, the
economic and social status of its members’.
 According to G. D. H. Cole, ‘A Trade Union means an
association of workers in one or more professions carried
on mainly for the purpose of protecting and advancing the
members’ economic interest in connection with their daily
work’.
SOME MORE DEFINITION

 Trade union includes the relations between workmen or their
trade unions, employers or their associations/unions and
Government/state.
 The nature of trade union includes:
1. A combination of workers or employers
2. Such a combination could be permanent or temporary.
3. Could include federation of two or more unions, and
4. To regulate relations among workmen, between workmen and
employers or among employers themselves.
NATURE OF TRADE UNION

 Economic Objectives: It includes the objectives that help in
protecting the financial interest of workers. These objectives
are as follow:
1. To secure better wages for the workers.
2. To secure better working conditions for the workers.
3. To secure the opportunities of training, development and
promotions.
4. To create an atmosphere in which the employers may not
exploit the workers in any respects.
5. To protect the interest of workers through collective
bargaining.
OBJECTIVES OF TRADE UNIONS

 Non-economic objectives:
1) To promote industrial peace by establishing
harmonious relations between labour and
management.
2) Trade union develops a sense of responsibility
among the workers.
3) Facilitates the changes in industry.
4) To promote national integration.

 Primary Functions
The primary function of a union is to protect the economic
interest of workers. According to the First National Commission
on Labour (1969) the principal function of a union is to promote
and protect the interests of its members in all aspects of their
working life, including improvement in their civic environment.
Following are the primary functions of trade union:
1. To secure fair wages for workers, union ensure that they are
not exploited in any way , particularly in economic terms.
2. To offer responsive cooperation in improving levels of
production, productivity, discipline and high standards of
quality.
3. To improve working and living conditions, and to represent
workers’ interest in various activities.
FUNCTIONS OF TRADE UNIONS

4. To enlarge opportunities for promoting and training.
5. To promote integration of workers’ interests with
their industry.
6. To cooperate in and facilitate technological
advancement by broadening workers’ understanding of
underlying issues.
CONT..

 New Functions
1. Communication: Many large unions publish newsletters
and/or magazines, with the main aim of clarifying their
policy or stance on certain principal issues, as well as to
pass on information about their activities. For example, The
Indian Worker is a fortnightly bilingual publication of INTUC.
2. Welfare Activities: a number of trade unions are engaged in
various welfare activities, such as providing housing and
schooling facilities for the wards of workers establishing
cooperative societies for the promotion thrift among
workers and providing consumer items at discount price.
The Textile Labour Association Ahmedabad has ventured to
organize self-employed women in SEWA and has even
started banking activities for this purpose.
FUNCTIONS CONT..

3. Education : education makes workers aware of their
surrounding environment. Unions strive to launch educational
programmes for workers to enhance their knowledge of the work
environment and to inform them about issues regarding their
rights and responsibilities, about procedures and systems that
exist in the workplace for redressing grievance and similar issues.
4. Training of Workers: Trade unions also provide training to
workers in order to enhance their efficiency and effectiveness.
This function has gained greater relevance in the current scenario
when changes in technology are taking place very fast and
obsolescence of skills is a routine phenomenon. For example,
unions in India and Bahrain have joined hands to tackle
exploitation of workers from Kerala and to make them aware of
their rights when they land in Bahrain and other Gulf countries in
search of employment opportunities.
CONT..

5. Social Work: Besides undertaking activities for worker
welfare, many of the trade unions are even engaged in social
work. For example, the Bharatiya Mazdoor Sangh encourages its
workers to undertake social and constructive work, along with
day to day union activities.

 Trade union movement, is a movement by the workers
through their trade unions or associations. In India, the
labour movement started in 1875 when a number of
measures to improve the lot of workers were taken by
the Government, social reformers and enlightened
employers.
GROWTH & DEVELOPMENT OF THE TRADE
UNION MOVEMENT IN INDIA

 A. Pre-1918 Phase:
 The setting up of textiles and jute mills and laying of the railways
since 1850 payed the way for that emergence of industrial activity
and, in turn, labour movement in India. Some researchers have
traced the origin of labour movement in India dated back to 1860.
However, most of the writers on the subject trace the history of
labour movement in India since 1875.
 The first labour agitation, under the guidance and leadership of Mr.
S. S. Bengalee, a social reformist and philanthropist, started in
Bombay in 1875 to protect against the appalling conditions of
workers in factories, especially those of women and children and
appealed to the authorities to introduce legislation for the
amelioration of their working conditions.
 As a result, the first Factory Commission was appointed in Bombay
in the year 1875 and the first Factories Act was passed in 1881. Mr.
N. M. Lokhande may be said to be the founder of organised labour
movement in India who founded the first trade union in the country,
namely, the Bombay Mill Hands Association (1890).
CONT..

 This was followed by a series of associations such as the
Amalgamated Society of Railway Servants in India (1897), The
Printers’ Union of Calcutta (1905), The Madras and Calcutta
Postal Union (1907), and the Kamgar Hitwardhak Sabha
(1910). All these unions aimed at promoting welfare facilities
for workers and spreading literacy among them.
The broad features of the labour movement during the pre-1918
phase may be subsumed as:
(i) The movement was led mostly by the social reformers and
philanthropists and not by the workers.
(ii) There was, in fact, no trade union in existence in the true
sense.
CONT..

 B. 1918-1924 Phase:
 The phase 1918-1924 is considered as the era of formation of
modem trade unionism in the country. The trade union movement
got momentum just after the close of the World War I. The postwar
economic and political conditions contributed to the new
awakening of class consciousness among the workers. This led to
the formation of trade unions in the truly modem sense of the
term.
 As a result, Ahmedabad Textile Labour Association (1917), led by
Shrimati Ansuyaben Sarabhai; the Madras Labour Union (1918),
led by B. P. Wadia; Indian Seamen’s Union, Calcutta Clerk’s Union;
and All India Postal and RMS Association were formed.
CONT..

 C. 1925-1934 Phase:
 With increasing hardships of workers, the signs of militant tendencies and
revolutionary approach in trade unionism got expression into violent strikes
since 1924. The communists gained influence in L trade union movement
during this period. They split the Trade Union Congress twice with their
widening differences with the left-wing unionists.
 The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri
seceded from the Congress and set up a separate organization named the
National Trade Unions Federation (NTUF).
 Another split in AITUC took place in 1931 at its Calcutta session when the
extreme left wing under the leadership of Messrs S. V. Deshpande and B T
Randive broke away and formed a separate organization, namely, the All India
Red Trade Union Congress Two Years later, the National Federation of Labour
was formed to facilitate unity among all the left-wing organizations of labour.
As a result, the AITUF and NFL merged to form the National Trade Union
Federation (NTUF).
 Another important feature of this period was the passing of two Acts, namely,
the Trade Unions Act 1926 and the Trade Disputes Act, 1929 which also gave a
fillip to the growth of trade unionism in India. The former Act provided for
voluntary registration and conferred certain rights and privileges upon
registered unions in return for obligations. The later Act provided for the
settlement of trade unions. This phase of the Indian labour movement may be
described as The Period of Left Wing Trade Unionism.
CONT..

 D. 1935-1938 Phase:
 The Indian National Congress was in power in seven provinces in
1937. This injected unity in trade unions. As a result, the All
India Red Trade Union Congress itself with the AITUC in 1935.
After three years in 1938, the National Trade Union Congress
(NTUC) also affiliated with the AITUC. Other factors that
contributed to the revival of trade unions were increasing
awakening among the workers to their rights and change in the
managerial attitude towards trade unions.
 In 1938, one of the most developments took place was the
enactment of the Bombay Industrial Disputes Act, 1938. An
important provision of the Act, inter alia, to accord compulsory
recognition of unions by the employers gave a big fillip to the
growth of trade unionism in India.
CONT..

 E. 1939-1946 Phase:
 Like World War I, the World War II also brought chaos in industrial
front of the country. Mass retrenchment witnessed during the post-
World War II led to the problem of unemployment .This compelled
workers to join unions to secure their jobs. This resulted in big
spurt in the membership of registered trade unions from 667 in
1939-40 to 1087 in 1945-46.
 Somuchso workers in the registered trade unions witnessed a
phenomenal increase from 18,612 to 38,570 during the same
period. The AITUC again split in 1941 when Dr. Aftab Ali, President
of the Seamen s Association, Calcutta disaffiliated his union from
the Congress and formed a new organization known as the “Indian
Federation of Labour”.
 The year 1946 was also marked by two important enactments,
namely, the Industrial Employment (Standing Orders) Act, 1946
and the Bombay Industrial Relations Act, 1946. Both the Acts,
through their provisions, contributed to strengthen the trade
unionism in the country.
CONT..

 F. 1947 and Since:
 Proliferation of trade unions in the pattern of proliferation of
political parties has been a distinguishing feature in the trade
union history of India during the post-Independence period. In
May 1947, the Indian National Trade Union Congress (INTUC) was
formed by the nationalists and moderates and was controlled by
the Congress Party. Since by then, the AITUC is controlled by the
Communists.
 The Congress socialists who stayed in AITUC at the time of the
formation of INTUC subsequently formed the Hind Mazdoor Sabha
(HMS) in 1948 under the banner of the Praja Socialist Party.
Subsequently, the HMS was split up with a group of socialist and
formed a separate association, namely, “Bhartiya Mazdoor
Sabha” (BMS) which is now an affiliate of the Bhartiya Janata
Party (B JP). Years after, the communist party split into various
fractions forming the United Trade Union Congress (UTUC) and the
Center of Indian Trade Unions (CITU).
CONT..

 Later again, a group disassociated itself from the UTUC and
formed another UTUC—Lenin Sarani. Of late, with the
emergence of regional parties since 1960, most of the
regional parties have shown its inclination to a trade union
wing, thus, adding to the proliferation of trade unions in the
country. Thus, it is clear that the origin and growth of trade
union movement in India is riddled with fragmented
politicization.
CONT..

 At present, there are 8 central trade union organisations. Of
these, four major federations with their national network are:
1. All India Trade Union Congress (AITUC)
2. Indian National Trade Union Congress (INTUC)
3. Bhartiya Mazdoor Sangh (BMS)
4. Centre of Indian Trade Unions (CITU)

1. Leadership: most of the unions have affiliation with political
parties and union leaders are often used as means by these
parties to their political ends. These leaders may be internal
or even external and they usually work on honorary basis. An
external leader is one who is not a full time employee of the
organisation, and hence does not emerge from amongst the
workers. There are advantages and disadvantages with both
the types of leadership.
2. Multiplicity of Unions and Inter- Union Rivalry. : the provision
in the Trade Unions Act,1926 that 7 or more workers can
form a trade union has resulted in multiplicity of trade unions
at every level. Another reason behind union multiplicity is
affiliation with rival political parties.
PROBLEMS OF TRADE UNIONS

Every union tries to impress upon the workers that it is their true
representatives, and in an attempt to increase membership and
gain power, each tries to lure the members of other unions. In
such a scenario, instead of working in the interest of workers,
union leaders tend to indulge in a different power play. Thus there
may be inter-union rivalry which ultimately weakens the trade
union movement as a whole, reducing the bargaining power of
workers in securing their rights.
3.Declining Membership : the new pattern of unionization points
towards a shift from organisation of workers in a region or
industry to the emergence of independent unions at the
enterprise-level. These unions are mainly concerned with
enterprise-level issues, with no forum to link them with national
federations that could secure for them a voice at national policy
making levels.
CONT…

4. Low finances : trade unions need to perform a variety of
functions in the process of rendering services and fulfilling their
goals. As such, a sound financial positions is an essential
ingredient for their effective functioning. However trade union in
India are plagued with the problem of a weak financial base. There
are several factors contributing to the financial problems faced by
unions like low member subscription fees, multiplicity of unions
where each union tries to keep its membership fee low etc.
5. Contemporary Issues: changes in business environment have
direct or indirect impact on trade unions. Increased literacy level,
dual career families, greater participation of women in workforce,
shifting demographics, escalating aspirations of the working class
and many other factors are contributing to transformations in the
composition, beliefs and functioning of unions.
CONT..

INTRODUCTION
A recognized trade union is that union which has received the
recognition under the necessary provisions of the Trade Union
Act,1926. Section 28(c) of the Trade Union Act, 1926,states that
by making agreement with the occupier or having his consent, a
trade union gets the status of a recognized trade union.
 Need for Recognition of Trade Union:
In practice, management allows the recognized Trade Union only
for negotiations and collective bargaining. As such, recognition of
trade union serves as backbone of collective bargaining. It has
been debated time and again whether a trade union should be
recognized or not. This is because there is so far no enforced
central legislation on this subject, i.e., recognition of trade union.
RIGHTS OF THE RECOGNIZED TRADE
UNIONS

 In the absence of any central legislation, management at
times has refused to refuse recognize trade union mainly on
five grounds that:
1. Most of the office bearers of the union were outsiders.
2. The trade union keeps outsiders disapproved by management
and particularly politicians and ex-employees.
3. The union consists of only small number of employees.
4. There are in existence multiplicity of unions leading to rival
unions.
5. The trade union is not registered under the Trade Union Act,
1926.
CONTI..

 The 20th Session of the Indian Labour Conference (August 1962)
has agreed that a Trade Union which is granted recognition under
the Code of Discipline can enjoy the following rights, namely:
1. To negotiate with employers in respect of matters connected
with employment conditions.
2.To collect membership fees from the members on the premises
of the industry.
3.To nominate its member-representatives on the Grievances
Committee constituted in an establishment.
4. To nominate its representatives on the Joint Management
Councils.
5. To receive replies from employers in response to their letters.
6. To conduct interviews of employers.
RIGHTS OF RECOGNIZED TRADE UNION

1. The union duly observes the code of Discipline.
2. It is a registered trade union and has complied with all
provisions of the Trade Unions Act, 1926.
3. In case of more than one union in existence, the union claiming
its recognition has been functioning for at least one year after
registration. This condition would not apply if there is only one
union.
4. All its ordinary members are workers employed in the same
industry.
5. A union may claim recognition only when it has a membership
of at least 25 % of the workers of that industry.
6. Its rules provide that a meeting of its executives shall be held at
least once in every six months.
UNDER THE PROVISIONS OF THE ANNEXURE 1, TRADE UNION IS
RECOGNIZED ONLY AFTER IT FULFILLS THE FOLLOWING CONDITIONS,
NAMELY:

 To be successful, a trade union should be an enlightened one
and it should be able to guide and direct the trade union
movement effectively.
 It should have a sound foundation so that it is strong enough to
achieve success in the realization of the outlined objectives.
 The objectives of a trade union should be properly communicated
to all the members of the union and employees outside the union
so that outside employees within the organisation may be
attracted towards it. Preferably, the trade union should be led by
rank and file workers.
 A trade union should have integrity and honestly in dealing with
financial matters. There should not be any room for
misappropriation of funds.
ESSENTIALS FOR SUCCESS OF A TRADE
UNION

 A trade union should use its economic power in a careful and
responsible way. It should be aware of the existing realities in
terms of the opportunities it has to bring about an
improvement in the leaving standards of labour. A trade union
should be a democratic agent between workers and
management.
 The trade unions should assist in progressively raising the
standard of living of workers and promote their personality
development through educational programmes.
 Most importantly, trade unions should maintain industrial
harmony and peace, and battle fruitfully with the employers
and if necessary with the State at the bargaining table so that
the employers do not victimize the workers. Trade unions
should be pluralist in character and pragmatic in their
approach and should concentrate on the welfare of the
members and society.
CONT..

Trade unionism

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Trade unionism

Similar to Trade unionism (20)

Recently uploaded

Recently uploaded (20)

Trade unionism