Title: Necessity of Union for Any Business

Organization
Bangabandhu Sheikh Mujibur
Rahman
Science & Technology
University

Submitted To:
Taslim Ahammad
Lecturer of Management Studies
Faculty: Business Studies

Submitted BY:
Shaikh Ashraful Alam
ID: 20131107045
Dept. of Applied Chemistry and
Chemical Engineering.
Faculty: Engineering

Date of Submission: 1405-2016

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Abstract
This report is based on Trade Unions and its
necessity. The report begins by explaining
what unions are, aim of union, types of
union, why workers join trade unions and the
benefits of trade unions to employers,
employees and the society. The report then
explains what trade unions are and their
relevance in the modern workplace. The
various types of union with examples are
highlighted and they have been classified in
to five categories. The report also highlights
the benefits and challenges of union. It also
talks about practice of union in different
country, methodology of union and last of all
finding and analysis of union.
The report then talks about the two faces of
trade unions. There has been a widespread
debate about the working of trade unions
the monopoly face and the collective voice/
institutional response face. A few examples
have also been given.
In short, the main objective of the report is
to show necessity and importance of union
in any business organization.
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Contents

Chapters

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Contents

Introduction

Literature Review

Methodology

Finding and Analysis

Chapter 5

Conclusion &
Recommendation

Chapter 6

References

Topics

Page

1.1 Introduction

1.2 Aims

1.3 Objective of
trade union
1.4 Research
question
2.1 Definition

2.2 Theory of union

2.3 Necessity

2.4 Types of union

2.5 Practice of
Union in America
2.6 Practice of
Union in Bangladesh
2.7 Conclusion

3.1Research
Methodology
3.2 Qualitative
Research
3.3 Quantitative
Research
3.4 Methods of
achieving Trade
Union objectives
4.1 Finding

4.2 Factor Analysis

Conclusion

10

Recommendations

10

4
5

7
7

8
8
9

11

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Chapter 1 Introduction
1.1: Introduction
The study focus on necessity of union for any business organization .
Today, we live in a world where workers have assumed great importance.
The employers have started to realize the importance of workers. The
employees too have started to form Unions to protect their interests.
Bosses around the world have recognized that the best way to resolve
issues is by way of dialogue. The employees have realized that to protect
them from exploitation, unity is very important. This is one of the reasons
why trade unions have become so important today.

1.2: Aims
The trade union is primarily an economic organization organized for
economic struggle. Its essential function is to strengthen the economic
status of its members and improve their working conditions. It is primarily
concerned to promote the economic interests of the workers.

1.3: Objectives of Trade Unions

Trade unions generally pursue the following objectives:
1. Employee Compensation 2. Working Conditions 3. Rationalisation of Personnel
Policies 4. Harmonious Relations 5. Recognition and Participation 6. Gaining
Legislative Enactments 7. Miscellaneous Services:

1.4: Research Question

The research question of union is; what is trade union, how does it work, practice of
union in different country, aim of it, finding and analysis of union, methodology and
necessity of it.

Chapter-2 Literature Review

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2.1: Definition
Union is an organized association of workers in a trade, group of trades, or profession,
formed to protect and further their rights and interests.

Unions are associations that represent the collective interests of their

employee-members in bargaining and negotiating with large employers.
Trade unions generally seek to obtain higher wages, reduced working
hours and improved working conditions for employees.
According to V.V. Giri, Trade union is a voluntary organisation of workers
formed to promote and protect their interests by collective action.

2.2: Theory of Union

The five types of theories of trade union are as follows: 1. Revolutionary
Theory 2.Evolutionary Theory
3.Theory of Industrial Jurisprudence 4.
Rebellion Theory 5.The Gandhian Approach.
A cross-country examination of trade unions reveals different ideologies
influencing the evolution and development of trade unions depending on
social, economic and political conditions prevalent therein. That is
precisely the reason the objectives of trade unions and their place have
been emphasized differently by different thinkers.

2.3: Necessity
Trade unions play an important role and are helpful in effective
communication between the workers and the management. They provide
a unions seek to improve workplace safety and to obtain increased
benefits, such as health insurance, pensions, and disability insurance, for
employees. Unions also look to protect the employment security of their
members, largely by negotiating to implement seniority rules and to
eliminate "at-will" employment contracts under which non-union
employees traditionally have been subject to dismissal without cause.
Trade union is an organization or a group that workers join so that they can
have their interests and goals well represented. While some view labor
unions as a negative, they actually can have several positive effects on
the labor market in general. They can help both employers and
employees, if they are utilized correctly. Unions: The origins of unions
existence can be traced back to the 18th century, when the rapid
expansion of industrial society attracted women, children and immigrants
to the work force in large numbers. Trade unions were also endorsed by
the Catholic Church towards the end dvice and support to ensure that the
differences of opinion do not turn into major conflicts. The central function
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of a trade union is to represent people at work. But they also have a wider
role in protecting their interests. They also play an important educational
role, organizing courses for their members on a wide range of matters.
Seeking a healthy and safe working environment is also prominent feature
of union activity.
Trade unions help in accelerated pace of economic development in many
ways as follows:

By
By
By
By

helping in the recruitment and selection of workers.

inculcating discipline among the workforce
enabling settlement of industrial disputes in a rational manner.
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 disorganized, unsatisfied and frustrated. Unions help them in such
adjustment.
Trade unions are a part of society and as such, have to take into
consideration the national integration as well.
Some important social responsibilities of trade unions include:

Promoting and maintaining

National integration by reducing
The number of industrial disputes
Incorporating a sense of corporate
Social responsibility in workers.
Achieving industrial peace.

2.4: Types of Union

There are three principal groups currently developing theories of unionism.
The communist group, primarily located in the Soviet Union, is concerned
with how unions can increase productivity in communist societies. To them
unions are workers morale rale agencies, and it seems irrelevant whether
the state or the plant management (in loco employer) dominates the
organization. Most Western neoclassical economists who are concerned
with unions focus on the effects that worker-controlled nonopolies will
have on factor prices, levels of employment, labor mobility, technological
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change, and profits. Hence they view unions as logical constructs, units
intent on maximizing gains for all or only some of their members much
as a business firm (also a construct) is supposed to operate. They are not
usually interested in exploring the forces that bring unions into being and
keep them operating effectively. The third group includes most of the wellknown Western labor union theorists. They attempt to ex-plain workers
historical behavior regarding wages, hours, working conditions, and job
rights by answering all or most of four questions:
(1) Why did unions come into existence? (2) How do unions choose their
goals and tactics? (3) What explains varying individual worker attitudes
toward unions? (4) What is the impact of national cultural and legal
experience on worker organizations? In other words, these writers study
the historical records of institutions.

2.5: Practice of Union in America

Unions are important because most corporations focus on creating profits
at the expense of employees. The nature of work in America is changing.
Employers are trying to shed responsibility for providing health insurance,
good pension coverage, reasonable work hours and job safety protections.
Instead, companies are making workers' jobs and incomes less secure
through downsizing, part-timing, contracting out, and sending jobs offshore. More than ever, working people need the collective voice and
bargaining power unions provide to keep employers from making the
workplace look as it did in the early nineteenth century. Without collective
representation, the threat of sweatshop conditions, unlivable wages and
70- hour work weeks may become a part of working America's future as
well as its past. Today and in the future, labor unions will continue to play
an important role our country's work force and the quality of life for
working families. If you are not a union member, you can learn about the
benefits of fighting for the middle class in America. America's working
families need the representation, collective power, pride in work and fair
treatment they in the workplace that they deserve.

2.6: Practice of Union in in Bangladesh

Trade Unions in Bangladesh have a lot of unavoidable problems: 1. Lack of
consciousness: Trade union are not actually completely aware about
employees legal rights and duties. 2. Lack of Unity: In Bangladesh trade
unions are separated for political influence. 3. Lack of knowledge: The
workers of Bangladesh dont have enough knowledge about their rights
and duties. 4. Political influence: In Bangladesh, trade unions work a part
of political parties not as a free right saving association. 5. Division of
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trade union: Bangladesh is a country where every organization has more

trade unions in name only.

2.7: conclusion
Trade union is an organization or a group that workers join so that they can
have their interests and goals well represented. Today, we live in a world
where workers have assumed great importance. The employers have
started to realize the importance of workers. The employees too have
started to form Trade Unions to protect their interests. Bosses around the
world have recognized that the best way to resolve issues is by way of
dialogue. The employees have realized that to protect them from
exploitation, unity is very important. This is one of the reasons why trade
unions have become so important today

Chapter-3 Methodology
3.1 Research Methodology
The research aim on the find out the necessity of union any business
organization.
Its research objects is refresh participants' knowledge and skills on the
concept of research methodology and approaches in relation to
employment and social issues.
Discuss country reports with a view to identifying common challenges
confronting trade unions in the field of research. Deepen understanding
about trade union research on employment and social issues a global
perspective.

3.2 Qualitative Research

Undertake research on employment and social issues that are of relevance
to trade unions.
Generate sound, up-to-date and credible labour statistics on
unemployment, non-standard employment, child labour, force labour,
labour markets, womens participation in the labour force, safety and
health at work, social security, collective bargaining, organizing and a

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broader range of other topics associated with the measurement of decent

work.

3.2 Quantitative Research

Provide statistics which trade union leaders can use to effectively
communicate cogent arguments during policy-making and policy review
exercises.
Collect, analyse and interpret information on wages, conditions of
employment, company productivity and profits, companies balance
sheets, economic trends in the industry and country as a whole, job
grading, cost of living, pension/provident funds, etc.

3.4: Methods of achieving Trade Union objectives

Trade Unions adopt following methods to accomplish these objectives.
(1) Collective Bargaining: It is the method where trade unions and the
representatives of management sit together and resolve their disputes or
negotiate an agreement with the management and other benefits. This
method has been used by the trade unions all over the world.
(2) Mutual Insurance: Under this method, trade unions establish a fund.
They maintain such fund by collecting money from their members. Such
fund is utilised by the unions in carrying out certain welfare plans for the
benefit of their members. They also financially assist their members in
emergency e.g., in case of accident, illness or during strike. This method is
feasible only when their membership is large enough and the financial
position
of
unions
is
strong.
(3) Legal Enactment: Trade unions do project the interests of their
members. One of the method is demand for the honest implementation of
various provisions of different Acts concerning them and offer suggestions
to the government for their amendment wherever necessary. For this
purpose they take up political activities and get some of their nominees as
members of Parliament and Legislature.

Chapter-4 Finding and Analysis

4.1 Finding
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The existence of a strong and recognized trade union is a prerequisite to

industrial peace. Decisions taken through the process of collective
bargaining and negotiations between employer and unions are more
influential. Trade unions play an important role and are helpful in effective
communication between the workers and the management. They provide
the advice and support to ensure that the differences of opinion do not
turn into major conflicts. The central function of a trade union is to
represent people at work. But they also have a wider role in protecting
their interests. They also play an important role in organizing courses for
their members on a wide range of matters. Seeking a healthy and safe
working environment is also prominent feature of the trade union.

4.2 Factor Analysis

This following point should abide by the owner because of the union policy.

Weekends without work

All breaks at work, including your lunch breaks
Paid vacation
Family & labor unions made the following things possible?
Medical Leave Act (FMLA)
Sick leave
Social Security
Minimum wage
Civil Rights Act/Title VII - prohibits employer discrimination
8-hour work day
Overtime pay
Child labor laws

Chapter-5 conclusion and

Recommendations
Conclusion
Unions train and organize workplace representatives who help union
members with the problems they face at work. Reps provide support and
advice and campaign for better conditions and pay. Unions have brought
significant changes to society. Unions have also made thousands of local
agreements on issues affecting individual. workplaces following
consultation, negotiation and bargaining.
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Recommendations
Following point should follow by a Union.

Leaders and member should obey the role within any business
organization.
Leaders of union should well educate.
Effective, efficient, honest leader should join the union.
Take care of the labour problem.
Should follow child labour law.
Effective role play to establish labour right.

References:
[1]. Luke Arthur.2016.Small Business. The Advantages of Labor Unions for
an Organization. Online document, Retrived on March 14, 2016.Web
address: < http://smallbusiness.chron.com/advantages-labor-unionsorganization-21119.html>
[2].Assignment point.2016. Importance of Trade Unions. Online document,
Retrived on March 14, 2016.Web address:
<http://www.assignmentpoint.com/business/importance-of-tradeunions.html>
[3].Encyclopedia.2003.Trade Union. Online document, Retrived on March
31, 2016. Web address: <
http://www.encyclopedia.com/topic/Trade_Unions.aspx>

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[4].Union plus.2016. Labor unions today. Online document, Retrived on

March 31, 2016. Web address: <https://www.unionplus.org/about/laborunions/today>
[5].Union plus.2016.36 reasons why you should thank a union. Online
document, Retrived on March 31, 2016. Web address:
<https://www.unionplus.org/about/labor-unions/36-reasons-thank-union>
[6].Union plus.2016. How do Unions Work? . Online document, Retrived on
March 31, 2016. Web address: < https://www.unionplus.org/about/laborunions/how-to-join>
[7].Omar Faruq Chowdhury.Slide Share.November 28, 2012.Trade unions in
Bangladesh and its impact. Online document, Retrived on March 31, 2016.
Web address: http://www.slideshare.net/ofchowdhury/trade-unions-inbangladesh-and-its-impact
[8]. Smriti Chand .your article library.2016. How do Unions Work? 5
Classification of Theories of Trade Union
. Online document, Retrived on April 22, 2016. Web address: <
http://www.yourarticlelibrary.com/trade-unions/5-classification-of-theories-oftrade-union/35463/>

[9]. naukrihub.2016. Importance Of Trade Unions . Online document,

Retrived on April 29, 2016. Web address:
http://www.naukrihub.com/industrialrelations/importance-of-tradeunions.html>
[1o]. Mohammed Mwamadzingo . 4-6 May 2011.ilo. Research methods and
survey
techniques for trade unions. Online document, Retrived on May 5, 2016.
Web address: http://www.ilo.org/wcmsp5/groups/public/@asia/@robangkok/@ilo-jakarta/documents/presentation/wcms_159620.pdf

Shaikh Ashraful Alam.

email: ashrafulalam96@gmail.com

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