Evolution of Trade Unions

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Trade Unions

Dr.Yogananthan Srinivasan


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WHAT IS TRADE UNIONA trade union is an organised group of workers. Itsmain goal is to protect and advance the interests ofits members

A union often negotiates agreements withemployers on pay and conditions. It may alsoprovide legal and nancial advice, sickness bene tsand education facilities to its members

rade unions aim to represent the interests ofpeople at work and negotiate with employers forbetter terms and conditions for their members


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Section !"h# of the rade $nions Act, %&!' hasde ned a trade union as

(Any combination, whether temporary orpermanent, formed primarily for the purpose of

regulating the relations between workmen andemployers, or between workmen and workmen,or between employers and employers, or forimposing restrictive conditions on the conductof any trade or business, and includes any

federation of two or more trade unions.) hen this de nition talks about three relationships. hey are

relationship between the*+orkmen and workmen+orkmen and employers

mployers and employers.

Trade Union


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HISTORY OF TRADE UNION

he rst trade union was started in %- in /agpurIt was this labour protest on an organi0ed scale, through thesupport of some philanthropic personalities, that organi0edlabour unions came to be formed

he setting up of large1scale industrial units, created conditionsof widespread use of machinery, new lines of production, andbrought about changes in working and living environment ofworkers, and concentration of industries in large towns

he rst 2actory3s Act was passed in %--% by /.4. 5okhode

In %&%& 4adras 5abour $nion was the rst $nion in India to beformed and established by 6. 7. 8adia6ombay rade $nion formed in %& 9 under the leadership ofSorab:ee Shapur:ee 6engatee


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PROCEDURE OF REGISTRATION OFTRADE UNION

At least members should be present for an application

It should in a prescribed form ,fees and should be

registered under the ;egistrar of rade $nions

Should be accompanied by a copy of the ;ules of $


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WHAT IS TRADE UNION

MOVEMENT he trade union movement started after %&%-, when the workersformed their associations to improve their conditions. It is, thus, apart of the =labour movement3, which is a much wide term

A trade union is an essential basis of a labour movement forwithout which one cannot e>ist, because trade unions are theprincipal schools in which the workers learn the lesson of self1reliance and solidarity

rade $nionism in India has been the natural out come of themodern factory system

he main elements in the development of trade unions of workersin every country have been more or less the same

he development of trade unionism in India has had a checkered

history and a stormy career


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Social Welfare Period !"#$%!&!"'

he development of industries led to large1scale production on the onehand and social evils like employment and e>ploitation of women and childlabour and the deplorable workable conditions, the government3s attitudeof complete indi?erence in respect of protection of labour from such evils,on the other.

Early Trade Union Period(1918-1924)

he year %&%- was an important one for the Indian trade union movement.

he industrial unrest that grew up as a result of grave economic di@cultiescreated by war. he rising cost of living prompted the workers to demandreasonable wages for which purpose they united to take resort to collectiveaction (

Left-Wing Unionism Period (1924-1934)

In %&! , a violent and long1drawn1out strike by unions led to the arrest,prosecution, conviction and imprisonment of many communist leaders. he

rapid growth of the trade unionism was facilitated by several factors

TRADE UNION MOVEMENTGROWTH


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Trade Union’s Unity Period (193 -1938)

In mid1thirties the state of divided labour movement was natural thoughtundesirable and soon after the rst split, attempts at trade union unitybegan to be made through the e?orts of the ;oy Broup on the basis of =aplatform of unity 3.

!e"ond World War Period (1939-194 )

he Second +orld +ar, which broke out in September %&C&, created newstrains in the united trade union movement.

ence, again a rift took place in %& % and the ;adicals left the AI $< withnearly !EE unions with a membership of C, EE,EEE and formed a new centralfederation known as the Indian 2ederation of 5abour

T#e Post-$nde%enden"e Period (&rom 194' to-date)

As pointed out earlier, when attempts to restructure the AI $< failed, thosebelieving in the aims and ideals other than those of the AI $< separated fromthe organi0ation and established the Indian /ational rade $nion


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It is an organisation formed by employees orworkers.

It is formed on a continuous basis. It is a permanentbody and not a casual or temporary one.

It is formed to protect and promote all kinds ofinterests Feconomic, political and social1of itsmembers. he dominant interest with which a union

is concerned is, however, economic.

It includes federations of trade unions also.

It achieves its ob:ectives through collective action

and group e?ort

Fea)*res of )rade *nions


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o improve the economic lot of employees by securing for

them better wages. o secure better working conditions for the workers.

o secure bonus for the employees from the pro t of theconcern,

o resist schemes of the management which reduceemployment, e.g., rationalisation and automation.

o secure welfare of employees through group schemeswhich give bene t to every employee.

o protect the interests of employees by taking active

participation in the management. o secure social welfare of the employees.

o secure organisational stability, growth, and leadership.

O+,ec)i-es of Trade Union


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Grea)er .ar/ainin/ Po0erMini1i2e Discri1ina)ionSense of Sec*ri)3

Sense of Par)ici4a)ion Sense of .elon/in/nessPla)for1 for self e54ression .e))er1en) of rela)ions6i4s

Reasons for 7oinin/ Trade Unions


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FUNCTION OF TRADEUNION

o secure for workers better wages

o safeguard security of tenure and improve conditions of service

o increase opportunities for promotion and training

o improve working and living condition

o provide for educational cultural and recreational facilities

o promote identity of interests of the workers o o?er improved level of production and productivity discipline

and high standard of Guality

o promote individual and collective welfare


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6roadly speaking, trade unions perform two types offunctions, vi0.,

Mili)an) F*nc)ions( Hne set of activities performed bytrade unions leads to the betterment of the position oftheir members in relation to their employment.

he aim of such activities is to ensure adeGuate wages,secure better conditions of work and employment, getbetter treatment from employers, etc.

+hen the unions fail to accomplish these aims by themethod of collective bargaining and negotiations, they

adopt an approach and put up a ght with themanagement in the form of so1slow, strike, boycott,gherao, etc.

ence, these functions of the trade unions are known asmilitant or ghting functions.

F*nc)ions of Trade Unions


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Fra)ernal F*nc)ions(

Another set of activities performed by trade unions aims atrendering help to its members in times of need, and improvingtheir e@ciency.

rade unions try to foster a spirit of cooperation and promotefriendly relations and di?use education and culture among theirmembers.

hey also arrange for legal assistance to its members, if necessary.6esides, these, they undertake many welfare measures for their

members, e.g., school for the education of children, library,reading1rooms, in1door and out1door games, and other recreationalfacilities.

Some trade unions even undertake publication of some maga0ineor :ournal.

hese activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscriptionfrom members and donations from outsiders, and also on theircompetent and enlightened leadership.


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Another broad classi cation of the functions of unions may be asfollows

In)ra%1*ral ac)i-i)ies( hese consist of those functions of theunions that lead to the +e))er1en) of e14lo31en)condi)ions such as ensuring adeGuate wages and salaries, etc.for which the methods adopted may be collective bargaining,negotiations, strikes, etc.

E5)ra%1*ral ac)i-i)ies( hese activities help the employees to1ain)ain and i14ro-e )6eir e8cienc3 or 4rod*c)i-i)3 , e.g.,measures intended to foster a spirit of cooperation, promotefriendly relations, and di?use education among members andvarious other types of welfare measures.

Poli)ical ac)i-i)ies( 4odern trade unions also take up 4oli)icalac)i-i)ies to achieve their ob:ectives. Such activities may berelated to the formation of a political party or those re ecting anattempt to seek in uence on public policy relating to mattersconnected with the interests of working class.

F*nc)ions of Trade Unions


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5ack of education makes the workers narrow1minded,and prevents them from taking long1term views.

hus, anything, which does not result in animmediate reward, becomes unattractive to them.

his attitude is responsible for many strikes and lock1outs in industrial concerns.

rade unions may not welcome rationalisation andimproved methods of production for the fear thatsome of the workers will be put out of work.

herefore, they resort to go slow policy that retardsindustrial progress.

+hen labour unions strike because of illogicalgrounds, incalculable losses occur to producers,community and the nation. hese are harmful to theworkers also. hey su?er because of the loss ofwages.

Cri)icis1 of Trade Unions


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hey create arti cial scarcity of labour bydemanding that only union personnelshould be employed.

6y undue insistence on the payment ofstandard rates of wages, they have onlyleveled down the earnings of the e@cientworkers.


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Sense of Sec*ri)3( he employees may :oin the unions becauseof their belief that it is an e?ective way to secure adeGuate

protection from various types of ha0ards and incomeinsecurity such as accident, in:ury, illness, unemployment, etc. he trade union secure retirement bene ts of the workers andcompel the management to invest in welfareservices for the bene t of the workers.

Sense of Par)ici4a)ion( he employees can participate inmanagement of matters a?ecting their interests only if they :ointrade unions. hey can in uence the decisions that are taken as a result of collective bargaining between the union and themanagement.

Sense of .elon/in/ness( 4any employees :oin a union because

their co1workers are the members of the union.At times, an employee :oins a union under group pressureL if hedoes not, he often has a very di@cult time at work.

Hn the other hand, those who are members of a union feel that theygain respect in the eyes of their fellow workers. hey can also discusstheir problem with3 the trade union leaders.


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Plan) le-el Unions: he rst level in the structure from below is the

plant level union. his comprises the unions in one organisation orfactory. 7lease note that only seven members are reGuired to form aunion. his has lead to multiple unions in one factory. "+e will discussthe details of this aspect in the problems faced by unions in India#.

;ocal ;e-el federa)ions( his is the second level in the structurefrom below. he local trade union federation holds together the plantlevel unions at the local level in a particular craft and industry. heselocal level federations might be a@liated to either some regionallevel or national level federation or these may be independent.

Re/ional le-el federa)ions( hese are the organisations of all theconstituent unions in a particular state or region.

Na)ional federa)ions( hese are national level bodies to which

plant level unions, local unions or regional level unions may geta@liated. hese are the ape> bodies at the top of the structure. heyact as coordinating bodies. hese national federations may have theirown regional or state level coordinating bodies to which the plantlevel unions may get a@liated.

S)r*c)*re of Trade Unions

P 1 < 0 T


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Une-en Gro0)6( he trade unionism in India is characterised byuneven growth, both industry1wise and area1wise. rade unions arepopular in big industries and the degree of unionisation varies widelyfrom industry to industry. 6esides, trade union activities areconcentrated in a few states and in bigger industrial centers mainlydue to concentration of industries in those places.

;i1i)ed Me1+ers6i4( he number of trade unions in India has

increased considerably. 6ut this has been followed by the decliningmembership per union.

Pro e1s < 0ea nesses o Tra eUnions


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M*l)i4lici)3 of Unions( here e>ist several trade unionsin the same establishment. he multiplicity of unions is the result of outside leadership and labour laws.

he law permits and gives sanctity to small unions. Any seven personscan form a union under the rade $nions Act, %&!'.

his Act confers rights on such a union. It is allowed under the Act to raisedisputes, le suits, go to conciliation and even bargain with employers.

herefore, small sections of workers are encouraged to form separate$nions. here is no restriction on the number of unions to be registered inone establishment.

O*)side ;eaders6i4( rade unions in India are led largely by people whothemselves are not workers. hese outsiders are politicians, intellectualsand professionals having no e>perience of work in industry. Hutsiderscontinue to dominate the trade unions to advance their personal interests.


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Financial Pro+le1s( he nancial position of the trade unions is weakbecause their average yearly income is very low and inadeGuate. hesubscription rates are very low.

$nder conditions of multiplicity of unions, a union interested inincreasing its membership gures keeps the subscription rate undulylow.

As a result, the funds with the unions are inadeGuate and they cannotundertake welfare programmes for their members.

Another reason for the weak nancial position of union is that largeamounts of subscription dues remain unpaid by the workers. 6esidesthis, unions do not have proper sta? and organisation to collectsubscriptions.

Indi=eren) A))i)*de of Wor9ers( In India, a large number of workershave not :oined any union. 4oreover, all the members of the tradeunions do not show interest in their a?airs. he attendance at thegeneral meetings of the unions is very low. $nder such circumstance,trade unionism cannot be e>pected to make much progress.

Pro+le1s < 0ea9nesses of TradeUnions


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One Union in One Ind*s)r3: 4ultiplicity of unions inthe same plant leads to inter1union rivalry that ultimatelycuts at the root of the trade union movement. It weakensthe power for collective bargaining and reduces thee?ectiveness of workers in securing their legitimaterights. herefore, there should be only one union in one

industry.Paid Union O8cials: Benerally, the trade unions availthe services of the honorary workers due to lack offunds. he practice should be stopped because honoraryo@ce bearers cannot do full :ustice to the task entrustedto them because of lack of time at their disposal.

Suppose that you are asked to do something in theo@ce, which reGuires a lot of responsibility. You are noto?ered any thing in return. Hf course the motivationallevels will come down unless and until you are a verypassionate or a committed person.

S*//es)ions for )6e de-elo41en)Unions


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he same applies to the o@cials of the unions. herefore, paid union o@cials should be employed whoare persons of proven integrity and who are able toevaluate the demands of workers so that they maynegotiate with employers on eGual footing.

De-elo41en) of ;eaders6i4 fro1 Wi)6in: It is ofcrucial importance that trade unions are managed bythe workers, and not by outsiders. 5eadership should bedeveloped from within the rank and le of the workers.

Reco/ni)ion of Trade Unions( ill recently, the

employers refused recognition to the trade unionseither on the basis that unions consisted of only aminority of employees or two or more unions e>isted.


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The Indian workforce consists of 430million workers, growing 2% annually.The Indian labor markets consist ofthree sectors:

he rural workers, who constitute about 'Eper cent of the workforce.Hrgani0ed sector, which employs - percent of workforce, and

he urban informal sector "which includesthe growing software industry and otherservices, not included in the formal sector#which constitutes the rest C! per cent ofthe workforce.

Trade *nions in India


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t !resent there are twel"e #entral Trade $nionrgani&ations in India:

All India rade $nion


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T#e $ndian ational Trade Union ongress

Ori/in:

he I/ $< came into e>istence on th 4ay, %& -, as a result of the resolutionpassed on % th /ovember %& , by the ploitation andineGuality, the pro t motive in the economic activity and organi0ation ofsociety and the anti1social concentration of power in any formL

to place industry under national ownership and control in a suitable formL

to secure increasing association of workers in the administration of industryand their full participation in that controlL


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*ll-$ndia Trade Union ongress (*$TU )

Ori/in:It was established in %&!E as result of a resolution passed by the organi0edworkers of 6ombay and the delegates which met I a conference on C%stHctober, %&!E.

O+,ec)i-es:

to establish a socialist state in IndiaL

to sociali0e and nationali0e means of production, distribution and e>changeL

to improve the economic and social conditions of the working classL

to watch, promote, and further the interests, rights, and privileges of theworkers in all matters relating to their employmentL

to secure and maintain for the workers the freedom of speech, freedom ofpress, freedom of association freedom of assembly, the right to strike, andthe right to work and maintenanceL

to co1ordinate the activities of the labour unions a@liated to the AI $<


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United Trade Union ongress (UTU )

Ori/in *

Some trade union leaders of the socialist bent met together December %& - toform a new central organi0ation of labour, called ind 4a0door Sabha

O+,ec)i-es:

he ob:ectives of the $ $< are*

to establish a socialist society in IndiaL

to establish a workers3 and peasants3 state in IndiaL

to nationali0e and sociali0e the means of production, distribution ande>changeL

to safeguard and promote the interests, rights, and privileges to theworkers in all matters, social, cultural, economic and politicalL

to secure and maintain workers3 freedom of speech, freedom of press,

freedom of association, freedom of assembly, right to strike, right to work ormaintenance and the right to social securityL


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+#artiya ,a door !ang# (+,!)

Ori/in: his union has been the outcome of decision taken by the Nana Sangh in its


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ational &ront of $ndian Trade Unions ( &$TU)

Ori/in

his union was founded in %&' , with the claim that (this trade union of Indiais not controlled by any of the political party, employers or government.)

O+,ec)i-es *

to organi0e and unite trade unions with the ob:ect of building up a /ational


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entre of $ndian Trade Union ( $TU)

Ori/in his union was formed in %& E when as a result of the rift in the AI $penses of the workers, who e>ploit the people by pegging prices at a


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CONC;USION

rade $nion is an important factor of thecurrent society, as it safeguards the basicinterest and needs of both the employeesas well as employers, by giving betterterms and conditions of employment,secured :obs, better wages, favorableworking environment which in turn leads todesired pro tability.


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Evolution of Trade Unions

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