This document discusses trade unions, their objectives, functions, and importance in industrial relations. It defines a trade union and explains that their primary purposes are to regulate relations between workers and employers, negotiate wages and conditions, and provide member services. The key functions of trade unions are militant functions like achieving higher pay and better work conditions, and fraternal functions like welfare measures and promoting growth. Finally, it provides examples of collective bargaining processes between trade unions and hotel management to resolve issues around reducing employee holidays and layoffs.

1. Trade Unions
Concept & Role in Industrial Relations
Onkar R Satam
Kantilal Kamble
Anit Nair

2. Trade Unions: What?
The Trade Union Act 1926 defines a trade
union as a combination, whether
temporary or permanent, formed
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
condition on the conduct of any trade or
business, and includes any federation of

3. Objectives of Trade
Unions
 Representation
 Negotiation
 Voice in decisions affecting workers
 Member Services
 Education and training
 Legal assistance
 Financial discounts
 Welfare benefits

4. Functions of Trade
Unions
1) Militant Functions
 To achieve higher wages and better working conditions
 To raise the status of workers as a part of industry
 To protect laborers against victimization and injustice
2) Fraternal Functions
 To take up welfare measures for improving the morale of
workers
 To generate self confidence among worker
 To encourage sincerity and discipline among worker
 To provide opportunities for promotion and growth
 To protect women workers against discrimination

5. Importance of Trade
Unions
Trade unions proved being of great importance :
-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. (Workers have to
adjust themselves to the new working
conditions, the new rules and policies. Workers
coming from different backgrounds may become

6. Social Responsibilities of
Trade Unions
 Promoting and maintaining national
integration by reducing the number of
industrial disputes
 Incorporating a sense of corporate
social responsibility in workers
 Achieving industrial peace

7. Reasons 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

8. Current Stagnation of Trade
Unions in India
Table Showing Growth Of Trade Unions and Membership is following below

9. The Code of Discipline 1958
The Management and Union(s) agree -
 That no unilateral action will be taken with any
company matter and that disputes will be settled at
appropriate level;
 That the existing machinery for settlement of
disputes would be utilized with the utmost
expedition;
 That there would be no strike or lockout without
notice;
 That affirming their faith in democratic principles,

10.  That neither party will have recourse to (a) coercion,
(b) intimidation, (c) victimization or (d) go-slow;
 That they will avoid, (a) litigation, (b) sit down and
stay in strikes and (c) lock outs;
 That they will promote constructive co-operation
between their representatives at all levels and as
between workers themselves and abide by the spirit
of agreements mutually entered into;
 That they will establish upon a mutually agreed
basis, a grievance procedure which will ensure a
speedy and full investigation leading to settlement;
 That they will abide by various stages in the
grievance procedure and to take no arbitrary action
which would bypass this procedure; and
 That they will educate the management personnel

11. The Management agree-
 Not to increase work loads unless agreed upon or
settled otherwise;
 Not to support or encourage any unfair labour
practice such as (a) interference with the right of
employees to enroll or continue as union
members, (b) discrimination restraint or coercion
against any employee because of recognised activity
or trade unions and (c) vcictimisation of any
employee and abuse of authority in any form;
 To take prompt action for (a) settlement of
grievances and (b) implementation of
settlements, awards, decisions and orders;

12.  To distinguish between actions justifying immediate
discharge and those where discharge must be
preceded by warning, reprimand, suspension or
some other form of disciplinary action and to
arrange that all such disciplinary action should be
subject to an appeal through normal grievance
procedure;
 To take appropriate disciplinary action against its
officers and members in cases where enquiries
reveal that they were responsible for precipitated
action by workers leading to indiscipline; and
 To recognise the union in accordance with the

13. The Union(s) agree:
 Not to engage in any form of physical duress;
 Not to permit demonstrations which are not peaceful
and not to permit rowdyism in demonstrations;
 That their member will not engage or cause other
employees to engage in any union activity during
working hours, unless as provided by law,
agreement of practice;
 To discourage unfair labour practices such as (a)
negligence of duty (b) careless operation, (c)
damage to the property, (d) interference with or
disturbance to normal work and (e) insubordination;

14.  To take prompt action to implement awards,
agreements, settlements and decisions;
 To display in conspicuous places in the union
offices, the provisions of this code in the local
language (s); and
 To express disapproval and to take appropriate
action against office-bearers and members for
indulging in action against the spirit of this code.

15. REGISTRATION OF THE
TRADE UNIONS
 Minimum of 7 members required to register a
Trade Union
 Application is sent to the Registrar for
registration the particular state.
 Application contains names and other details of
the employees who wish to be members of the
trade union
 Application should also contain suggestions for
the Name of the Trade Union (3)
 On registration the union becomes a body
corporate and enjoys privileges such as Raising

16. RECOGNITION OF TRADE
UNION
Recognition is of two types
 DEFACTO -: Those trade unions who do not
bother about recognition and commands
attendance and knows that whether the
employer recognize or not it can dictate terms
are known as defacto recognition.
 DE JURE -: A trade union is said to be dejure
when it is duly and officially recognized by the
management. As employer may on his on
volition grant recognition or he may act with
the unions as if it is recognized.

17. CRITERIA FOR RECOGNITION OF
UNIONS
1. Where there is more than one union, a union
claiming recognition should have been functioning
for at least one year after registration. Where there is
only one union, this condition would not apply.
2. The membership of the union should cover at least
15% of the workers in the establishment concerned.
Membership would be counted only to those who
had paid their subscription for at least three months
during the period of six months immediately
proceeding the reckoning.
3. A union may claim to be recognised as a
representative union for an industry in a local area if
it has a membership of atleast 25% of the workers of
that industry in that area.

18. 5. Where there are several unions in an industry or
establishment, the one with the largest membership should
be recognised
6. A representative union for an industry in an area should
have the right to represent the workers in all the
establishments in the industry, but if a union of workers in a
particular establishment has a membership of 50% or
more of the workers of that establishment, it should have
the right to deal with matters of purely local interest such
as, for instance, the handling of grievances pertaining to its
own members. All workers who are not members of that
union might either operate through representative union for
the industry or seek redress directly.
7. In the case of trade union federations, which are not
affiliated to any of the four central organisations of labour,

19. Collective Bargaining: Role of
trade Unions
The collective bargaining process comprises
of five core steps:
 Prepare
 Discuss
 Propose
 Bargain
 Settlement

20. 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.

21. 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.

22. Case Study of Hotel
Leela
 The 9/11 Twin towers blasts in America, had its
adverse effects on the hotel industry as well.
 Hotel Leela decided to eliminate 280 of its
employees because of low salary availability. This
280 employees included 200 workers and 80
supervisors.
 The employees approached Maharashtra Samarth
Kamgar Sanghatna and a meeting was held
between the management and the secretary of
MSKS.

23. Collective Bargaining
Process
 The reason behind this decision was asked and the
reason given by the management was that they
were unable to pay heavy remunerations to this
large amount of employees.
 After some calculations it was found that if 10% of
the remuneration of the workers was cut then it
would be able to provide remuneration to the 200
workers.
 The management agreed and 200 workers were

24. Collective Bargaining Process
 Further it was found that if 2.5% reduction from the
existing salary could be done along with the
reduction of 10%, then even the remaining 80 could
be employed.
 MSKS wanted the reduction to be done right from
the upper level managers to the lower level
employees which the management accepted.
 This reduction continued only for 3 months and
after that everything was back to normal.

25. Thank You