TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS

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Chapter

ANNOTATED OUTLINE

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INTRODUCTION A trade union is a formal association of workers, acting collectively,

who seek to protect and promote their mutual interests through

collective action

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Securing economic benefits to members Improving the working conditions Protecting members from unilateral acts and disciplinary actions of management Fighting against inappropriate personnel policies Promoting the welfare of members Improving employer-employee relations Carrying out negotiations with management in a fair manner Safeguarding organisational health and the interests of the industry

Functions of trade unions Intra-mural functions Extra-mural functions Political functions Social functions

Objectives of trade unions

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Craft union: It is a union whose members done type of work, often using specialised skills and training.

Industrial union: It is a union that includes many persons working in the same industry or company regardless of jobs held.

General union: This type of union consists of workers employed in different industries and crafts within a particular city or region.

Federation: It is a group of autonomous, national and international unions

Structure Of Trade Unions

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The Legal Framework

The Trade Union Act, 1926 legalises the formation of trade unions by any seven persons employed in a unit quite easily. A registered union has certain advantages to its credit. Due to inter union and intra union rivalry, it is not easy to carry out negotiations with a recognised union in India. The Act, of course, has not cleared the fog either.

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The Bombay Industrial Relations Act, 1946, classified the registered unions as:

i. Representative union having a membership of not less than 25% of the total employees as members in an industry;

ii. Qualified union having at least 5% of membership in an industry; and

iii. Primary union having a membership of at least 15% of employees in an undertaking.

The rights of a Representative union under the Act are:

a. First preference to appear or act in any proceedings under the Act as the representative of employees;

b. Right to submit a dispute for arbitration;

c. To make a special application to the Labour Court to hold an inquiry; and

d. Office-bearers of the union cannot be dismissed or discharged.

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Union recognition: criteria and rights

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Code of Discipline, 1958

When multiple unions exit, the union claiming recognition should be functioning for at least one year after recognition

The membership of the union should cover at least 15% of workers in the establishment

To be recognised as a representative union for an industry in a local area, the union should have membership of at least 25 per cent of workers in that area

In case of multiple unions in an establishment or industry, the one with the largest membership should be recognised.

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The Legal Framework

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Verification of trade union membership The majority character of a union is not easy to decide because of claims and counter claims from warring factions. Proper membership records, often, are not available. There is the problem of common names appearing in the registers of more than one union. Union leaders often divide workers along caste, community, religion, linguistic and regional lines. The check off system (whereby members pay their respective fee directly into the account of the union concerned) is offered as a viable alternative to solve the knotty issue.

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The Legal Framework

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Of late, trade unions have been pushed to the wall due to factors such as: global competition, restructuring exercises carried out by companies from time to time just to survive, rising costs of manufacturing, lack of support from the general public and the government; privatisation, failure to deliver results in case of a prolonged battle etc.

Trade Unions And Employers’ Associations

Current Trends In Trade Unionism

Reasons for the Paradigm shift Militancy does not

Political base shrinking

Public sympathy disappearing

Jobs vanishing at an alarming rate

Membership figures sinking

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