TRADE UNION – ITS

STRUCTURE, OBJECTIVES,
NEED, FUNCTIONS AND Session 3
PROBLEMS
 INTRODUCTION...
Trade Union" means any 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 conditions
on the conduct of any trade or business
-  Formed to protect and promote the interests of
their members
- Primary function is to protect the interests
of workers against discrimination and unfair labor
practices
 FEATURES
 TU may be an association either of the employers or employees or of
independent workers
 TU are relatively permanent combinations of workers are not temporary
or casual
 TU is an association of workers who are engaged in securing economic
benefits for their members
 Character of trade unions has been constantly changing.
 Origin and growth of trade unions have been influenced by a number of
ideologies
 DEFINITION
The trade union has been defined by different authors as follows:
(1) Webb:
Trade union may be defined as “a continuous association of wage earners for
the purposes of maintaining or improving the conditions of their working
lives.”
(2) Lester:
“A trade union is an association of employees designed primarily to maintain
or improve the condition of employment of its members.”
(3) Indian Trade Union Act 1926:
“Any combination whether temporary or permanent formed primarily for the
purpose of regulating the relations between the workmen and employers”.
 ADVANTAGES 
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
CONTD...
ADVANTAGES TO WORKERS 
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
ADVANTAGES TO EMPLOYER
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)
ADVANTAGES TO SOCIETY
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.
PRINCIPLES OF TRADE
UNIONISM
Trade unions function on the basis of three fundamental principles.
1. Unity is strength
2. Equal pay for equal work or for the same job.
3. Security of service.
 THEORIES OF TRADE
UNIONS
Revolutionary theory – marx
Non - revolutionary theory – webbs theroy
Coles theory of union control of industry
Commons environment theory
Mitchells economic protection theory
Simons theory (Monopolistic and Anti democratic TUs)
Hoxies theory (satisfy – human wants and needs.)
 G R O W T H O F L A B O U R U N I O N S I N I N D I A : 6 - P H A S E S

Phase 1 - Pre-1918: The genesis of the labour movement

in India
Phase 2 - 1918-1924: The early trade union phase
Phase 3 - 1925-1934: Period of left-wing trade unionism
Phase 4 - 1935-1938: The Congress interregnum
Phase 5 - 1939-1946: Period of labour activism
Phase 6 - 1947-present: Post-independence trade
unionism
STRUCTURE OF TRADE
UNION
I. CLASSIFICATION BASED ON PURPOSE
I. Reformist union
- business unions
- friendly unions or uplift unions
II. Revolutionary union
- anarchist union
- political union
- predatory union
         (a) Holdup unions
         (b) Guerilla unions
- dependent union
Contd..

II. CLASSIFICATION ON THE BASIS OF MEMBERSHIP

STRUCTURE

On this basis 4 types of unions have been recognised:

I. Craft Union
II. Staff Union
III. Industrial Union
IV. General Union
 OBJECTIVES OF TU
(1) To improve the economic lot of workers by securing them better
wages.
(2) To secure for workers better working conditions.
(3) To secure bonus for the workers from the profits of the
enterprise/organization.
(4) To ensure stable employment for workers and resist the schemes of
management which reduce employment opportunities.
(5) To provide legal assistance to workers in connection with disputes
regarding work and payment of wages.
(6) To protect the jobs of labour against retrenchment and layoff etc.
(7) To ensure that workers get as per rules provident fund, pension and
other benefits.
Contd..

(8) To secure for the workers better safety and health welfare
schemes.
(9) To secure workers participation in management.
(10) To inculcate discipline, self-respect and dignity among
workers.
(11) To ensure opportunities for promotion and training.
(12) To secure organizational efficiency and high productivity.
(13) To generate a committed industrial work force for improving
productivity of the system.
WHAT IS THE NECESSITY FOR WORKERS TO JOIN
TU
To attain economic security – permanent employment with higher salary and
benefits.
To improve their bargaining power or resist the management's irrrational,
illogical and discriminatory actions.
To inform worker's views, ideas aims and dissatisfaction to the management.
To satisfy social needs.
To satisfy their needs for a sense of belonging.
To secure power
Minimizes discrimination
Sense of participation
Betterment of relationship
 FUNCTIONS OF TRADE UNIONS
(1) Collective bargaining with the management for securing better work
environment for the workers/ employees.
(2) Providing security to the workers and keeping check over the hiring and
firing of workers.
(3) Helping the management in redressal of grievances of workers at
appropriate level.
(4) If any dispute/matter remains unsettled referring the matter for
arbitration.
(5) To negotiate with management certain matters like hours of work, fringe
benefits, wages and medical facilities and other welfare schemes.
(6) To develop cooperation with employers.
(7) To arouse public opinion in favour of labour/workers.
 BENEFITS OF TRADE UNION
1. A worker feels very weak when he is alone. Union provides him an opportunity to achieve his objectives
with the support of his fellow colleagues.
2. Union protects the economic interest of the workers and ensures a reasonable wage rates and wage plans
for them.
3. Union helps the workers in getting certain amenities for them in addition to higher wages.
4. Union also provides in certain cases cash assistance at the time of sickness or some other emergencies.
5. Union organize negotiation between workers and management and are instruments for settlement of
disputes.
6. Trade union is also beneficial to employer as it organizes the workers under one banner and encourages
them follow to peaceful means for getting their demands accepted.
7. Trade union imparts self-confidence to the workers and they feel that they are an important part of the
organization.
8. It provides for promotion and training and also helps the workers to go to higher positions.
9. It ensures stable employment for the workers and opposes the motive of management to replace the
workers by automatic machines.
10. Workers get an opportunity to take part in the management and oppose any decision which
adversely affects them.
 PROBLEMS FOR TRADE UNION GROWTH
Uneven growth
Low membership
Weak financial position
Political leadership
The multiplicity of unions
Inter-union rivalry
The problem of recognition
Diverse nature of labour
Lack of public support
 STRENGTH OF TU
MOVEMENT IN INDIA
Funds were available
Awareness among trade union leaders – about importance on TU
Trade union act 1926
Globalization and economic integration in India
Increase of workforce
Implementation of international labour standards
Advancement of IT
 WEAKNESS OF TU
Limited membership
Small size of labour union
Small funds
attitude of the workers is not positive towards TU
Low wages
Job through the contractors
Illiteracy
 MEASURES TO STRENGTHEN TU
Micro to macro focus
Bargaining sharing
Grooming trade union leadership
Conflict to collaboration
Developmental role
Openness and transparency
Effective utilization of alternative forums.
12 MAJOR UNIONS THAT ARE RECOGNIZED AS CENTRAL
TRADE UNION ORGANIZATIONS 
Bharatiya Mazdoor Sangh (BMS) 
Indian National Trade Union Congress (INTUC) 
All India Trade Union Congress (AITUC) 
Hind Mazdoor Sabha (HMS) 
Centre of India Trade Unions (CITU) 
All India United Trade Union Centre (AIUTUC) – formerly UTUC (LS)
Trade Union Co-ordination Centre (TUCC) 
Self Employed Women’s Association (SEWA)
All India Central Council of Trade Unions (AICCTU)
Labour Progressive Federation (LPF) 
United Trade Union Congress (UTUC)
National Front of Indian Trade Unions – Dhanbad (NFITU-DHN) 
HMS, INTUC and SEWA are members of the International Trade Union Confederation (ITUC). AITUC
is a member of the World Federation of Trade Unions (WFTU).
CASE STUDY – UNITY IN DIVERSITY
CONTD...