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Trade Union

According to Fliippo, A Labour Union or trade union is an organisation of workers formed to promote, protect and improve through collective action, the social, economic and political interests of its members. Features: 1. 2. 3. 4. 5.

It is an organisation 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 promote and protect all kinds of interests economic, political and social of its members. It includes of federations of trade unions also It achieves its objectives through collective action and group effort.

Objectives of Trade Unions: Steady Employment: Employers ability to provide employment depends upon the state of his business. Thus, through political action, through their union, workers ensure full employment. This objective stands for enough jobs with good pay. Rationalization of personal policies: Trade Unions ensures that management follows uniform rules and procedures in respect of decisions relating to selection, lay off, retirement, transfer and promotion. Because it such decisions are influenced by subjective evaluation or are biased, there will not be any security for employees. Voice in Decision Making: Trade unions ensure that decision concerning workers are taken after discussion with the workers. For eg. Decision relating to Scale and schedule of production, introduction of labour saving devices, shifting or relocation of factory place etc.

Objectives of Trade Unions: Recognition and participation: Another objectives that unions seek to achieve is winning recognition from the management that the workers are equal partners with management in the task of production. Gaining legislative enactments: to provide legal sanctions to their demands, the unions attempt to get these framed in the form of Acts so that they become permanent features of contract. For this purpose, unions support political parties to help them in forming these laws. Miscellaneous services: Modern trade unions also engaged in providing educational, medical, recreational and other facilities for the development and welfare of their members and their families, if they have sufficient fund for the same.

Functions of Trade Unions

1.

Militant Functions: The chief purpose of the trade union is to ensure better conditions of work and employment. The unions also endeavor to secure some share in productivity gains and a greater share in the management or even control of industry. When the unions fail to accomplish these ends by the method of collective bargaining and negotiation, they adopt agitational methods and put up a fight with the management in the form of strike, lockouts, gheraos etc.

Functions of Trade Unions

2.

Faternal Functions: A trade union is fraternal association or a mutual benefit organisation supporting the members out of their own funds during the period of work stoppage due to a strike or lockout. It also provides financial assistance to the members during the period when they are unfit for work because of illness or employment injury or when they are temporarily unemployed.

Functions of Trade Unions

3.

Political Functions: Trade Unions seek to improve the political status of the union, the leaders and the union members. They contest political elections and try to acquire political power. In many countries, labour parties have grown up and have been in power for eg. In UK, Labour Party has come in power.

Methods of Trade Union

1. Method of Mutual Insurance:


Consists welfare activities like medical facilities, educational loans, recreational activities, cooperative societies, credit facilities being conducted out of the funds of trade union

2. Method of Collective Bargaining


Here Trade Union Representatives bargains with management over issues such as wages, hours of work, working conditions, welfare facilities etc.

Methods of Trade Union

3. Method of Legal Enactment / Political Action


This is done by exerting pressure for getting progressive labour laws passed by the legislature and to get them enforced properly. For getting such laws passed by the legislatures, union send competent representatives of the workers to the Legislative Assembly and to Parliament.

4. Method of Direct Action: if all the above method fails,


union resort to unethical practices like strikes, gheraos, bandhs etc. which result in loss of production, wages, scarcity of resources and non-availability of goods.

Methods of Trade Union

3. Method of Legal Enactment / Political Action


This is done by exerting pressure for getting progressive labour laws passed by the legislature and to get them enforced properly. For getting such laws passed by the legislatures, union send competent representatives of the workers to the Legislative Assembly and to Parliament.

4. Method of Direct Action: if all the above method fails,


union resort to unethical practices like strikes, gheraos, bandhs etc. which result in loss of production, wages, scarcity of resources and non-availability of goods.

Structure of Trade Unions

1. Conventions / Sessions

2. General Council (President, VP, Secretary

Gen.) 3. Provincial Bodies (State Level Chairman, Secretariats) 4. Local Bodies (Affiliating Unions)

Structure of Trade Unions Conventions / Sessions

1. Conventions / Sessions: these are held at

periodic intervals and are highest policy making bodies. 2. Presides over by President and attended by delegates like Chairman of State Units, Representative of Specialised Services, Legal Experts and representatives of international bodies 3. Office bearers are also elected at such meets.

Structure of Trade Unions

2. General Council consists of President, VP,

Secretary Gen.

a) b) c) d) e)

It carries out decisions taken at the conventions Standing committees are set to study, analyse and recommend on following aspects: Legislative Measures Liaison with ILO and other international bodies and analysis of their recommendations Legal affair / industrial disputes / tribunal awards Federal Services like influencing government in enacting labour legislations Membership etc.

Structure of Trade Unions

3. Provincial Bodies (State Level Chairman,

Secretariats)

State Units are headed by Chairman of State / Regional Area. Keep close watch on faithful implementation of labour legislation and practices Assist / influence state govts. To pass labour legislation laws Looks after membership of various unions representing workers in industrial unions Reponsible for welfare of its members

Registration of Trade Unions

Registration of Trade Union is covered under Trade Union Act, 1926. The act provides for registration of Trade Union with Registrar who is appointed for the purpose as per sec. 3. Following are the provisions:1) Any trade union with seven members may apply for registration 2) Registrar issues a certificate of registration

Registration of Trade Unions

Conditions for registration are as following: a) Members must be aged above 15 yrs. and paying subscription b) Must have clear cut objectives, rules and regulations c) Must have office bearers who are elected from members and at least 50 per cent of such office bearers must be from same establishment

Registration of Trade Unions

d) Funds must be properly accounted for and

audited e) Proper rules are made on safe custody and expenses of funds. Money must be spent on objects like salaries of office bearers, expenses for prosecution / defences in regard to industrial relations and other legitimate activities

Registration of Trade Unions

3) Certificate of Registration can be cancelled in

the event of seizure, fraud, violation of rules.

4) Registered union must submit annual return

in the prescribed form indicating assets / liabilities etc. to the Registrar by a prescribed date

Why People Join Trade Union


1. 2. 3. 4. 5.

Security of Employment and protection against calamity of accident, death and secure social security cover after retirement Meeting Companionship and affiliation needs and improve ones influence on management To get a common platform to air ones views, aims, idea and feeling Make use of principle of unity Restrict management action which are against the interest of workers.

Problems of Trade Unions


1. Multiplicity of unions

2. Politicalisation
3. Democracy and leadership 4. Financial Position 5. Management Attitude 6. Statutory Support

7. Illiteracy and ignorance