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Trade unions

          Theoretical Foundations and Legal
                      Framework




Sooraj R, soorajdms@gmail.com
Introduction
 Trade unions are voluntary organizations of
   workers formed to promote and protect their
   interests through collective action.




Sooraj R, soorajdms@gmail.com
Theories of trade union
movement
 Karl Marx: Class Conflict and Communist
  Manifesto
 Sydney and Beatrice Webb – The Socialist
  Pattern of Society
 Robert Hoxie – Unions under the American
  Capitalist system
 Mahatma Gandhi – The Concept of Trusteeship




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Trade unions of India
 Trade union movement emerged between the
  1850s and 1870s.
 All India Trade Union Congress was the first
  national federation of trade unions.




Sooraj R, soorajdms@gmail.com
Trade unions and economic
development
 Key role of trade union is to act as a
  countervailing power to ensure that
  considerations of enterprise and efficiency are
  balanced by equity.
 It also prevent exploitation and ensure that
  economic development is not an end in itself, but
  a means to human development and progress.




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Legal framework
 ILO Convention No 87: Freedom of Association
 Indian Constitution and the Freedom of
  Association
 Trade Unions Act, 1926 – Salient Features




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Definition of trade and „Trade union‟
 According to 2(h) if Trade Unions Act, 1926
   defines a trade union as “any combination ,
   whether temporary or permanent, former primarily
   for the purpose of regulating the relations
   between workmen and employers or between
   workmen and workmen, or between employers
   and employers, or for imposing restrictive
   conditions on the conduct of any trade or
   business and includes any federation or two or
   more trade unions”
 Distinction between Registration and Recognition
 Privileges of Recognized, Representative Unions
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Trade Union Recognition
 Closed shop/Union shop
 Membership Verification
 Check-off
 Secret Ballot
 Code of Discipline




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Union Recognition Agreement
 These agreement stipulates dos and don‟ts for
  both management and union
 Specify the benefits that management would
  provide to the unions
 The facilities are accorded to unions subject to
  the latter agreeing to fulfill certain obligations




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The Problem of the Free Rider
Employees may participate in 4 types of election
     1. To elect office-bearer for unions
     2. To elect a representative union for collective
        bargaining purpose,
     3. To elect workers representatives for works
        committees, departmental councils, etc
     4. To take decisions on whether to go on strike, etc




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Non union firms
 The law in India does not make it mandatory for
   management
    To have unions
    To recognize them (except in some states), or
    To engage in collective bargaining




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Trade Union Structure




Sooraj R, soorajdms@gmail.com
Introduction
 Evolution of different models of national trade
  union movements - how they are linked to the
  evolution of capital.
 Emergence of the international trade union
  movement - during the middle of the 12th century
 special characteristics of unionism - among
  managers and women - issues relation to
  multiplicity of unions
 Brief analysis of the future trends



Sooraj R, soorajdms@gmail.com
Models of National Trade Union
Movements
 Occupational Unions
 Industrial Unions
 General Unions
 Territorial Unions
 Enterprise Unions
 State – sponsored Unions




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Challenges Facing trade Unions
 Decline in membership
 Decline in state support or state neutrality
 Deregulation, decentralization and consequent
    reduction in the job, income, and social
    security, creating anxiety among workers about the
    effectiveness and utility of unions(s)
   Repudiation of their rights by employers, consumers
    and other actors, institutions in civil society.
   Changing aspirations and needs of new generation
    workforce
   Reduced capacity to mobilize workers for conflict
     Sooraj R, soorajdms@gmail.com
   Imperative need to cooperate with managements
International trade union federations
 International Confederation of Free Trade Unions
    (ICFTU)
   World Federation of Trade Unions (WFTU)
   International Federation of Christian Unions (IFCU)
   Regional Trade Union Organizations at International
    Level
   International Trade Union Organizations in Specific
    Industries Occupations
   Global Union Federations (GUFs) – Objective of GUF
     Promotion of worldwide solidarity
     Securing and enforcing human and trade union rights
     Establishing a just economic and social order
 Trade Union Internationals (TUIs)
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Trade Union Structure at the National
Level
 Structuring of a trade union is composed of
    Several layers of geographical and sectoral levels
    Staff in various departments depending on the type
     of activities
    Rules and regulation concerning decision-making to
     carry on activities, and mechanisms for rewarded,
     review and refinement
    Committees with specific tasks.




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A union formal structure influenced
by the following factors
 Size
 Spread
 Role and function/activities
 Responsibility and accountability




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A trade union structure has 3
dimensions
 Formal organization
 The people
 The Human resource system




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Managerial Trade Unions
 Managerial response to Managers Unions
 Relations between Workers and Managers
   Unions




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National Trade Union Centers
 Regional Political Parties and their Trade Union
  Wings
 Industrial/Sectoral Federations
 Enterprise-level Union




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Women in Trade Unions
 Unionization Among Women Workers
 Organizing Women Workers in the Unorganized
  Sector
 Why Women Do Not Join Unions
 Women‟s Representation and Gender issued in
  Collective Bargaining




Sooraj R, soorajdms@gmail.com
Role on International Trade Union
Movement
ICFTU Charter of Rights of Working Women as
  follows
    Equal rights and opportunities at work
    Maternity protection for all working women
    Sharing of work in the family
    A place for women at all levels of trade union
     hierarchy
    Actions in all spheres to respond to women‟s needs




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Monitoring Gender Equality in Trade
Unions
Trade unions should discuss the following issues in
  their meetings at the local, regional, national and
  international levels:
    Sexual division of labor
    Percentage of women in the total workforce
    Percentage of leadership positions helf by women
     in the union
    Membership in tripartite and bipartite for a at the
     national, regional and local levels
    Training programmes conducted at the
     international, national, regional and local levels
    Paid positions in trade union secretariats at the
     international, national, regional and local levels
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Trade Union Unity and Trade Union
Mergers
 It gives an opportunity to represent their collective
  interests.
 It is based on the belief: “United we stand, divided
  we fall”




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Future Directions
 Cyber Unionism
 Towards E-Unions




Sooraj R, soorajdms@gmail.com
Management of Trade Unions of
           India




Sooraj R, soorajdms@gmail.com
Introduction
 Theoretical and legal foundations of trade unions
  as well as their structure at various levels
 Constitution and functions of trade unions and the
  internal and external challenges they face.
 Issues for leadership and organization, including
  internal democracy in there functioning of the
  union.




Sooraj R, soorajdms@gmail.com
Trade Union Constitution
 Every registered trade union in India is supposed
   to have a constitution of its own endorsed by its
   members.




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Essential elements of a union‟s
constitution
   Preamble
   Name
   Declaration of principles
   Membership
   Rights and obligation of members
   General assembly conference: election at al levels
   Duties and responsibilities of officials
   Executive committee
   Standing committee
   Meeting rules
   Finance
   Collection of dues
   Auditing
   Allowances

Sooraj R, soorajdms@gmail.com
Trade Union Functions
 Objectives
 Economic and Job Regulation
    Decrease in labor intensity through avoidance of
     wasteful practices
    Increase in workload through multiskilling
    Increase in wages of skilled workers but decrease
     in unit wage/labor costs
    Growing informalization of jobs
    Increase in dualism in the labor market
    Shift in control over jobs to management
 Non-Bargaining Roles and Social Activities


Sooraj R, soorajdms@gmail.com
Internal Challenges
 Low Membership Density
 Declining Union Membership
 Representativity
 Poor Finances




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Major Sources and Uses of
Funds
Sources
 Monthly membership subscriptions
 Donations from members at the time of wage
  revision, etc
 Interest on savings
 Contributions for political funds
Uses
 Activities/services to members
 Wages and salaries of staff
 Travel
 Printing, postage, stationery, etc
 Legal expenditure on court fee, lawyers fee, etc
 Meetings, conference, campaigns, etc.
Sooraj R, soorajdms@gmail.com
Financial Strength of Trade
Unions
Critical indicators of the factors that determine the
  financial strength of a trade union:
 Composition of revenue
 Relative size of expenses and/or revenues
 Amount of surplus or deficit over a period or time
 Number of activities carried out by a union‟s own
  funds




Sooraj R, soorajdms@gmail.com
External challenges
 Global competition
 Rapid changes in Technology
 Shifting attitudes of Government
 Managerial Strategies and HRM Policies
 Assertion of their Rights by the Community and
   Consumers




Sooraj R, soorajdms@gmail.com
Leadership and organizational issues
 Leadership
 Changing workforce Demographics
 Internal democracy
 Declining Union Power and Influence




Sooraj R, soorajdms@gmail.com
Strategies for strengthening Unions
and Unionism
 Organize, organize, and organize. Membership
  drive is most critical
 Expand membership base
 Unity within the trade union movement




Sooraj R, soorajdms@gmail.com
NINE PRINCIPLES OF TRADE UNION
     UNITY
1.   Unreserved acceptance of, and respect for democratic functioning of
     trade unions.
2.   Regular and democratic elections of the executive bodies and office
     bearers
3.   Proper representation of all trades in the leading organs of the
     common organization.
4.   Right of every worker and trade unionist to belong to any political
     party of his own choice.
5.   Freedom from interference in the internal affairs of the organization by
     the Government, employers, and political parties.
6.   All vital decisions affecting the workers interests including important
     collective agreements with the employers to be endorsed by the
     general body of the workers.
7.   All decisions on political issues to be conditional on 75% majority.
8.   In the normal course, strike action to be taken only as a last resort
     and after properly ascertaining with the wishes of the workers.
9.   Rival unions in the same factory, industry, or undertaking be wound
       Sooraj R, soorajdms@gmail.com
     up either by

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Trade unions

  • 1. Trade unions Theoretical Foundations and Legal Framework Sooraj R, soorajdms@gmail.com
  • 2. Introduction  Trade unions are voluntary organizations of workers formed to promote and protect their interests through collective action. Sooraj R, soorajdms@gmail.com
  • 3. Theories of trade union movement  Karl Marx: Class Conflict and Communist Manifesto  Sydney and Beatrice Webb – The Socialist Pattern of Society  Robert Hoxie – Unions under the American Capitalist system  Mahatma Gandhi – The Concept of Trusteeship Sooraj R, soorajdms@gmail.com
  • 4. Trade unions of India  Trade union movement emerged between the 1850s and 1870s.  All India Trade Union Congress was the first national federation of trade unions. Sooraj R, soorajdms@gmail.com
  • 5. Trade unions and economic development  Key role of trade union is to act as a countervailing power to ensure that considerations of enterprise and efficiency are balanced by equity.  It also prevent exploitation and ensure that economic development is not an end in itself, but a means to human development and progress. Sooraj R, soorajdms@gmail.com
  • 6. Legal framework  ILO Convention No 87: Freedom of Association  Indian Constitution and the Freedom of Association  Trade Unions Act, 1926 – Salient Features Sooraj R, soorajdms@gmail.com
  • 7. Definition of trade and „Trade union‟  According to 2(h) if Trade Unions Act, 1926 defines a trade union as “any combination , whether temporary or permanent, former primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business and includes any federation or two or more trade unions”  Distinction between Registration and Recognition  Privileges of Recognized, Representative Unions Sooraj R, soorajdms@gmail.com
  • 8. Trade Union Recognition  Closed shop/Union shop  Membership Verification  Check-off  Secret Ballot  Code of Discipline Sooraj R, soorajdms@gmail.com
  • 9. Union Recognition Agreement  These agreement stipulates dos and don‟ts for both management and union  Specify the benefits that management would provide to the unions  The facilities are accorded to unions subject to the latter agreeing to fulfill certain obligations Sooraj R, soorajdms@gmail.com
  • 10. The Problem of the Free Rider Employees may participate in 4 types of election 1. To elect office-bearer for unions 2. To elect a representative union for collective bargaining purpose, 3. To elect workers representatives for works committees, departmental councils, etc 4. To take decisions on whether to go on strike, etc Sooraj R, soorajdms@gmail.com
  • 11. Non union firms  The law in India does not make it mandatory for management  To have unions  To recognize them (except in some states), or  To engage in collective bargaining Sooraj R, soorajdms@gmail.com
  • 12. Trade Union Structure Sooraj R, soorajdms@gmail.com
  • 13. Introduction  Evolution of different models of national trade union movements - how they are linked to the evolution of capital.  Emergence of the international trade union movement - during the middle of the 12th century  special characteristics of unionism - among managers and women - issues relation to multiplicity of unions  Brief analysis of the future trends Sooraj R, soorajdms@gmail.com
  • 14. Models of National Trade Union Movements  Occupational Unions  Industrial Unions  General Unions  Territorial Unions  Enterprise Unions  State – sponsored Unions Sooraj R, soorajdms@gmail.com
  • 15. Challenges Facing trade Unions  Decline in membership  Decline in state support or state neutrality  Deregulation, decentralization and consequent reduction in the job, income, and social security, creating anxiety among workers about the effectiveness and utility of unions(s)  Repudiation of their rights by employers, consumers and other actors, institutions in civil society.  Changing aspirations and needs of new generation workforce  Reduced capacity to mobilize workers for conflict Sooraj R, soorajdms@gmail.com  Imperative need to cooperate with managements
  • 16. International trade union federations  International Confederation of Free Trade Unions (ICFTU)  World Federation of Trade Unions (WFTU)  International Federation of Christian Unions (IFCU)  Regional Trade Union Organizations at International Level  International Trade Union Organizations in Specific Industries Occupations  Global Union Federations (GUFs) – Objective of GUF  Promotion of worldwide solidarity  Securing and enforcing human and trade union rights  Establishing a just economic and social order  Trade Union Internationals (TUIs) Sooraj R, soorajdms@gmail.com
  • 17. Trade Union Structure at the National Level  Structuring of a trade union is composed of  Several layers of geographical and sectoral levels  Staff in various departments depending on the type of activities  Rules and regulation concerning decision-making to carry on activities, and mechanisms for rewarded, review and refinement  Committees with specific tasks. Sooraj R, soorajdms@gmail.com
  • 18. A union formal structure influenced by the following factors  Size  Spread  Role and function/activities  Responsibility and accountability Sooraj R, soorajdms@gmail.com
  • 19. A trade union structure has 3 dimensions  Formal organization  The people  The Human resource system Sooraj R, soorajdms@gmail.com
  • 20. Managerial Trade Unions  Managerial response to Managers Unions  Relations between Workers and Managers Unions Sooraj R, soorajdms@gmail.com
  • 21. National Trade Union Centers  Regional Political Parties and their Trade Union Wings  Industrial/Sectoral Federations  Enterprise-level Union Sooraj R, soorajdms@gmail.com
  • 22. Women in Trade Unions  Unionization Among Women Workers  Organizing Women Workers in the Unorganized Sector  Why Women Do Not Join Unions  Women‟s Representation and Gender issued in Collective Bargaining Sooraj R, soorajdms@gmail.com
  • 23. Role on International Trade Union Movement ICFTU Charter of Rights of Working Women as follows  Equal rights and opportunities at work  Maternity protection for all working women  Sharing of work in the family  A place for women at all levels of trade union hierarchy  Actions in all spheres to respond to women‟s needs Sooraj R, soorajdms@gmail.com
  • 24. Monitoring Gender Equality in Trade Unions Trade unions should discuss the following issues in their meetings at the local, regional, national and international levels:  Sexual division of labor  Percentage of women in the total workforce  Percentage of leadership positions helf by women in the union  Membership in tripartite and bipartite for a at the national, regional and local levels  Training programmes conducted at the international, national, regional and local levels  Paid positions in trade union secretariats at the international, national, regional and local levels Sooraj R, soorajdms@gmail.com
  • 25. Trade Union Unity and Trade Union Mergers  It gives an opportunity to represent their collective interests.  It is based on the belief: “United we stand, divided we fall” Sooraj R, soorajdms@gmail.com
  • 26. Future Directions  Cyber Unionism  Towards E-Unions Sooraj R, soorajdms@gmail.com
  • 27. Management of Trade Unions of India Sooraj R, soorajdms@gmail.com
  • 28. Introduction  Theoretical and legal foundations of trade unions as well as their structure at various levels  Constitution and functions of trade unions and the internal and external challenges they face.  Issues for leadership and organization, including internal democracy in there functioning of the union. Sooraj R, soorajdms@gmail.com
  • 29. Trade Union Constitution  Every registered trade union in India is supposed to have a constitution of its own endorsed by its members. Sooraj R, soorajdms@gmail.com
  • 30. Essential elements of a union‟s constitution  Preamble  Name  Declaration of principles  Membership  Rights and obligation of members  General assembly conference: election at al levels  Duties and responsibilities of officials  Executive committee  Standing committee  Meeting rules  Finance  Collection of dues  Auditing  Allowances Sooraj R, soorajdms@gmail.com
  • 31. Trade Union Functions  Objectives  Economic and Job Regulation  Decrease in labor intensity through avoidance of wasteful practices  Increase in workload through multiskilling  Increase in wages of skilled workers but decrease in unit wage/labor costs  Growing informalization of jobs  Increase in dualism in the labor market  Shift in control over jobs to management  Non-Bargaining Roles and Social Activities Sooraj R, soorajdms@gmail.com
  • 32. Internal Challenges  Low Membership Density  Declining Union Membership  Representativity  Poor Finances Sooraj R, soorajdms@gmail.com
  • 33. Major Sources and Uses of Funds Sources  Monthly membership subscriptions  Donations from members at the time of wage revision, etc  Interest on savings  Contributions for political funds Uses  Activities/services to members  Wages and salaries of staff  Travel  Printing, postage, stationery, etc  Legal expenditure on court fee, lawyers fee, etc  Meetings, conference, campaigns, etc. Sooraj R, soorajdms@gmail.com
  • 34. Financial Strength of Trade Unions Critical indicators of the factors that determine the financial strength of a trade union:  Composition of revenue  Relative size of expenses and/or revenues  Amount of surplus or deficit over a period or time  Number of activities carried out by a union‟s own funds Sooraj R, soorajdms@gmail.com
  • 35. External challenges  Global competition  Rapid changes in Technology  Shifting attitudes of Government  Managerial Strategies and HRM Policies  Assertion of their Rights by the Community and Consumers Sooraj R, soorajdms@gmail.com
  • 36. Leadership and organizational issues  Leadership  Changing workforce Demographics  Internal democracy  Declining Union Power and Influence Sooraj R, soorajdms@gmail.com
  • 37. Strategies for strengthening Unions and Unionism  Organize, organize, and organize. Membership drive is most critical  Expand membership base  Unity within the trade union movement Sooraj R, soorajdms@gmail.com
  • 38. NINE PRINCIPLES OF TRADE UNION UNITY 1. Unreserved acceptance of, and respect for democratic functioning of trade unions. 2. Regular and democratic elections of the executive bodies and office bearers 3. Proper representation of all trades in the leading organs of the common organization. 4. Right of every worker and trade unionist to belong to any political party of his own choice. 5. Freedom from interference in the internal affairs of the organization by the Government, employers, and political parties. 6. All vital decisions affecting the workers interests including important collective agreements with the employers to be endorsed by the general body of the workers. 7. All decisions on political issues to be conditional on 75% majority. 8. In the normal course, strike action to be taken only as a last resort and after properly ascertaining with the wishes of the workers. 9. Rival unions in the same factory, industry, or undertaking be wound Sooraj R, soorajdms@gmail.com up either by