Trade Union PPt 2

TRADE UNION

Imad Rehman

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INTRODUCTION EVOLUTION EVOLUTION OF TRADE UNION IN INDIA FEATURES OBJECTIVES FUNCTIONS REASONS FOR JOINING JOINING TRADE UNION STRUCTURE OF TRADE UNION PROBLEMS PROBLEMS AND WEAKNESSES FACED BY TRADE UNIONS

DEFINITION Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as ´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 imposing restrictive restricti ve conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.µ

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Trade union is an association either of  employees or employers or of independent workers. It is a relatively permanent formation of  workers. It is not a temporary or casual combination of workers. It is formed for securing certain economic, social benefits to members.

At present there are twelve Cent entral ral Trade Unio Union n Organizations in India: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

All India India Trade Union Union Congress (AITUC) Bha Bharati ratiya ya Maz Mazdoor door Sang Sangh h (BM (BMS) Centre of Indian Trade Unions (CITU) Hind Hi nd Maz Mazdo door or Kisa Kisan n Panc Pancha haya yatt (HMK (HMKP) P) Hind Hi nd Mazd Mazdoo oorr Sabh Sabhaa (HMS (HMS)) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions Un ions (NFITU) National Labor Organization (NLO) Trade Unions Unio ns Co-ordination Centre (TUCC) United Unit ed Trade Union Union Congress (UTUC) and United Unit ed Trade Union Union Congr ongress - Lenin Lenin Sara Sarani ni (UTUC - LS)

FEATURE FEA TURESS OF TRADE UNION y

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It is an organization formed by employees or workers. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. It is formed to protect and promote all kinds of  interests ²economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. It achieves its objectives through collective action and group effort

EVOLUTION OF TRADE UNION EVOLUTION IN INDIA Emergence of TU in India can be defined in three phases: y

The first phase falls between 1850 and 1900 during which the inception of trade unions took place. During this period of the growth of Indian Capitalist enterprises, the working and living conditions of the labor were poor and their working hours were long.

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Capitalists

were only interested in their productivity and a nd profitability profitability.. In addition to long working hours, their wages were low and an d general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile labourers, the Indian Factories Act was enacted in 1881 As a result, employment of child labour was prohibited. Mr. N M Lokhande organized people like like Rickshawalas etc., etc ., prepared a study report report on their working working conditions and submitted it to the Factory Labour Commission.

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The Indian Factory Factor y Act of 1881 was amended in 1891 due to his efforts. Guided by educated philanthropists(generous donors) and social workers like Mr. Lokhande, the growth of  trade union movement movement was slow in this phase. Many strikes took place in the two decades following 1880 188 0 in in all all industria industriall cities. cities. These strikes taught workers to understand the power of united action even though there was no union in real terms. Small associations like Bombay Mill-Hands Association Association came came up.

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The second phase of The Indian trade union u nion movement falls between 1900 and 1947. this phase was characterized by the development development of  organized trade unions and political movements of the working class. It also witnessed the emergence of militant trade unionism.

The First World War (1914-1918) (1914-1 918) and the Russian revolution of 1917 gave a new turn to the Indian trade union movement movement and organized efforts on part par t of the workers workers to form trade unions. In 1918, 1918, B P Wadia organized organiz ed trade trade union movements movements with Textile mills in Madras.

He served strike notice to them and workers appealed to Madras High Court because under ¶Common Law·, strike is a breach of law. In 1919, Mahatma Gandhi suggested to let individual struggle be a Mass movement. In 1920, 1920, the First First Nati National onal Trade union union organization organizat ion (The All India Trade Union Congress (AITUC)) was establishe est ablished. d. Many of  the leaders of this organization were were leaders of the nation national al Movement. Movement . In 1926, 1926 , Trade union law law came up with the the efforts efforts of Mr. Mr. N N  Joshi that became operative from 1927.

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The third phase began with the emergence of independent India (in 1947), and the Government Government sought the cooperation of the unions for planned economic development. The working class movement was also politicized along the lines of political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of  the Congress ongress Party Par ty.. The AITU AITUC is the trade union arm of the Communist Party of India. Besides workers, workers, white-collar white-col lar employ employees, ees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

OBJECTIVES OF TRADE UNION y y y y y y y y

Wages salaries salaries Working conditions conditions Discipline Personnel policies Welfare Employee-employer Employee-employer relation Negotiating machinery Safeguarding Safeguarding organizational health and inter i nterest est of the industry

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EDUCATION AND AND TRAINING TRAINING.. LEGAL LEGAL ASSIST ASSISTAN ANCE. FINANCIAL DISCOUNTS.

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WELFARE BENEFITS.

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FUNCTIONS OF TRADE UNION y

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Functions of trade union can be broadly classified into : MILITANT FUNCTIONS. FRATERNAL FUNCTIONS.

MILITANT FUNCTIONS One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. employmen t. The aim ai m of such activities activitie s is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc. etc . When the unions fail to accomplish accomplish these aims by the method me thod of collective bargaining bargaining and negotiations, they adopt an approach and put up a fight with the management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of  the trade unions are known as militant or fighting functions. functio ns. Thus, the militant functions functio ns of trade unions can be summed up as:

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To achiev achi eve e higher higher wages wages and and better better working conditions To raise the status status of workers as a part part of  industry To protect labors labors against against victimization victimization and injustice

FRATER FRA TERNAL NAL FUNCTIONS y

Another set of activities performed by trade unions aims at rendering rendering help to its members in times of need, and improving their their effic efficienc iencyy. Trade unions unions try tr y to to foster foster a spirit of cooperation and promote friendly industrial re relations lations and diffuse education and culture among their members. Thus, the fraternal fraterna l functions function s of  trade unions can be summed up as:

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To take up welfare measures for improving the morale of workers

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To generate self confidence among workers

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To encourage sincerity and discipline among workers

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To provide opportunities for promotion and growth

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To protect women workers against agai nst discrimina d iscrimination tion

REASONS FOR JOINING TRADE UNION y

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GREATER GREATER BARGAINING BARGAINING POWER POWER MINIMIZE DISCRIMINATION SENSE OF SECURITY SENSE OF PARTICIPATION SENSE OF BELONGINGNESS PLATFORM PLATFORM FOR SELF SELF EXPRESSION EXPRESSION BETTERMENT BETTERMENT OF RELATIONSHIP RELATIONSHIP

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GREATER

BARGAINING POW POWER

The individual employee possesses very little bargaining power as compared to that of his employer. employer. If he is not satisfied satisfie d with the wage and other conditions cond itions of employment, he can leav l eave e the  job. It is not practicable to continually resign from one job after another when he is dissatisfie dissatisfied. d. This imposes a great financial and emotional burden upon the worker. worker. The better course for him hi m is i s to join a union that can take concerted action against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment. employment.

` MINIMIZE

DISCRIMINATION

The decisions regarding pay, work, transfer, promotio promotion, n, etc. etc . are highly highly subjecti subj ective ve in nature nature.. The personal relationships existing between the supervisor and each of his subordinates subordinates may may influence influence the management. Thus, there are chances of  favoritism favoritismss and discriminations. discriminations. A trade trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. workers. All the the labor lab or decision decisionss of the management management are under close scrutiny of the labor lab or union. union. This has the effect of minimizing favoritism favoritism and discrimination.

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SENSE

OF SECURITY

The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity insecurit y such as accident, accident , injury injur y, illness, unemployment, etc. etc . The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.

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SENSE

OF PARTICIPATION

The employees employees can participate in management of matters affecting their interests only if they  join trade unions. They can influence influen ce the decisions that are taken as a result of collective bargaining between between the union and the management.

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SENSE

OF BELONGINGNESS

Many employees join a union because their coworkers workers are the members of the union. At times, an employee joins a union u nion under under group pressure; if he he does not, he often has a very difficult time at work. On the other othe r hand, those who are members of a union feel that they gain respect in the eyes of their fellow workers. They can also discuss their problem with· the trade union leaders.

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PLATFORM FOR SELF

EXPRESSION

The desire for self-expression is a fundamental human drive dri ve for most people. people . All of us wish to share s hare our feelings, feel ings, ideas and an d opinions opinions with others. Similarly the workers also want the management to listen to them. A trade trade union union provides such su ch a forum where whe re the feelings, feeli ngs, ideas and opinions opinion s of the workers could be discussed. discus sed. It can can also transmit the feelings, feeling s, ideas, opinions and complaints of the workers workers to the management. management .The collective collective voice of the workers workers is heard by the management and give due consideration while taking policy decisions by the management.

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BETTERMENT OF RELATIONSHIP Another reason for employees joining unions is that employees employees feel feel that unions can fulfill the important need for adequate machinery for proper maintenance maintenanc e of employer-employee employer-employee relations. Unions help in betterment of industrial of industrial rela relations tions among management and workers by solving the problems peacefully.

Struct Str ucture ure of Trad rade e Uni Unions ons y

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Plant level Unions: The first level in the structure from below is the plant level union. This comprises the unions in one organization or factory. Only seven members are required to form a union. This has lead to multiple mult iple unions in one factory. Local Level

federations. This is the second level in the structure from below. The local trade union federation holds together the plant level unions at the local level in a particula particularr craft and industry industr y. These local level federations might be affiliated to either some regional level or national level federation or these may be independent.

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Regional

level federations. These are the organizations of of all the constituent unions in a particular state or region. region.

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National

federations. These are national level bodies to which plant level unions, local unions or regional level unions may get affiliated. affiliated. These are the apex bodies bodi es at the the top of the structure. structu re. They act act as coordinating bodies. These national national federations federations may may have have their own regional or state level coordinating bodies to which the plant level unions may get affiliated.

Problems & weakne Problems weaknesses sses of Trade Unions `

Uneven Growth. The

trade unionism in India is characterized by uneven growth, both industry-wise and area-wise. Trade unions are popular popula r in big b ig industries ind ustries and the degree of unionization varies widely from industry to industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centers mainly due to concentration of industries in those places.

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Limited Membership.

The number of trade unions in India has increased considerably. But this has been followed by the declining membership per union.

of  Unions. There exist several trade unions in the same establishment. The law permits and gives sanctity to small unions. Any seven persons can form a union under the Trade Unions Act, 1926. This Act confers rights on such a union. It is allowed under the Act to raise disputes, file suits, go to conciliation and even bargain with employers. Therefore, small sections sec tions of workers are a re encouraged to form separate Unions. There is no restriction restriction on the number of unions to be registered registered in one establishment.

` Multiplicity

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Outside Leadership. Trade unions in India are led largely by people peop le who themselves th emselves are not workers. These outsiders are politicians, intellectuals and professionals having no experience of work in industry. Outsiders continue to dominate the trade unions to advance their personal interests. interests. Financial Problems. Problems. The financial position of the trade unions is weak because their average yearly yearly income is very low and inadequate. The subscription rates are very low. Under conditions of multiplicity of unions, u nions, a union interested in increasing its membership figures keeps the subscription subscri ption rate unduly low. low. As a result, the funds fu nds with the th e unions are inadequate and they cannot undertake welfare welfare programs for their members. Another reason for the weak  financial position of union is that large amounts of  subscription dues remain unpaid by the workers. Besides this, unions do not have proper staff and organization to collect subscriptions.

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Indifferent Attitude

of Workers. orkers. In India, a large number of workers have not joined any union. Moreover, all the members of the trade unions do d o not not show interest in their their affairs. af fairs. The attendance at the general meetings of the unions is very low. Under such circumstance, trade unionism cannot be expected to make much progress.

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