Trade Unions & Collective Bargaining-pharma & Bbm

8/6/2019 Trade Unions & Collective Bargaining-pharma & Bbm

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Prof. Susen Varghese


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SUBTOPICS : Definition and Meaning ,

Characteristics and Functions Types of TUs Problems of TUs

Important Trade Unions of India


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The Trade Union Act 1926 defines a trade union as a

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 restrictive

condition on the conduct of any trade or business, and

includes any federation of two or more trade unions.


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` It is an association either of employers or

employees or of independent workers.

` They may consist of :-

Employers association (eg., Employers Federation ofIndia, Indian paper mill association, etc.)

General labor unions

Friendly societies

Unions of intellectual labor (eg, All India Teachers

Association)


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` It is formed on a continuous basis. It is a

permanent body and not a casual or temporary

one. They persist throughout the year.

` It is formed to protect and promote all kinds ofinterests economic, political and social-of its

members. The dominant interest with which a

union is concerned is, however, economic.


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` It achieves its objectives through collective action and

group effort. Negotiations and collective bargaining

are the tools for accomplishing objectives.

` Trade unions have shown remarkable progress sincetheir inception; moreover, the character of trade

unions has also been changing. In spite of only

focusing on the economic benefits of workers, the

trade unions are also working towards raising thestatus of labors as a part of industry.


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Workers join trade unionsto achieve their objectiveswhich they could notachieve individually. Some

of these objectives are :` Attain economic security.` Ventilate workers

grievances to management.` Inform workers views,

aims, ideas andfrustrations to themanagement.


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` Secure power` Satisfy their social

psychological needs andtheir needs for

belongingness.` Secure protection from

unexpected economicneeds like illness,

accidents, etc.` Improve their bargainingpower and balance it withthat of management


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` The basic function ofTrade Unions is toprotect the rights andpromote the interestsof the workers andconditions of theiremployment. This canbe achieved by :

` Achieving higher wages,

better working andliving conditions.` Acquiring the control of

industry by workers.


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` Minimising the helplessness of individualworkers, protecting the members againstvictimization and injustice of the employers.

` Raising the status of workers.` Providing a worker self confidence.` Imbibing sincerity, discipline in workers.` Taking up welfare measures for improving the

morale of the workers.


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CRAFT UNIONS :` Workers of the same craft or category of

the job form into a union called as CraftUnion.

` These unions are called as horizontal unions` The workers belonging to the same craft do

face similar problems mostly non -managerial personnel form such unions.

` E.g. : Drivers Associations, signalling staffUnion in Indian Railways.


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FEDERATION AND CONFEDERATION:FEDERATION AND CONFEDERATION:

Industrial Unions, either of same industryor of different industry may form into an

association I order to improve Trade Unionunity/ strength. Such Unions of unions arecalled Federations.

E.g. Federation of Indian Railways.

SOME TYPES OF TRADE UNIONSSOME TYPES OF TRADE UNIONS


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INDUSTRIAL UNIONS :

Workers of different categories form into aunion. These unions are called vertical

unions. Workers of the same industry aregoverned by same rules and regulations andare administered by same management. SuchUnions are called Industrial Unions.


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Union Rivalry

Small size of Unions

Low membership

Poor FinancialPosition

Political & OutsideLeadership

Victimization

Inactive Functioning


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PoliticalLeadership :The leadership of most of the Trade Unionsin India is due to outside leadership mainlydrawn from political parties. This is because

of the inability of insiders to lead themovement due to :

` Low education standards.` Poor command over English language which is

still the principal language for negotiations.

` Insufficient knowledge of Labour Laws.` Unsound financial position.

` Fear of being victimized.` Lack of leadership qualities.


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UnionRivalry:UnionRivalry:

Due to formation and existence of multipleunions and internal rivalry between them, thevery purpose of strength for collectivebargaining is defeated. The two main reasons forthis rivalry are :

Personal conflicts of the political leaders whoare also Union leaders.

Divide and Rule attitude of the management.SmallsizeofUnions :SmallsizeofUnions :

Due to the internal rivalries, bigger unionsdisintegrate and form countless smaller unions.


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FinancialPosition:FinancialPosition:

Size of unions often determines their strengthand financial soundness. The primary source ofincome of Trade Unions is their membership fees,

but since there are very few members, theirfinances are less and hence affect theiractivities. This leads to

Inactive functioning

Hence resulting in victimization

Which is why the Trade Unions require politicalhelp.

And hence the series of problemscontinue..


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The following are some of the methods tostrengthen Trade Unions :

` United Labour force with ONE objective,

policy and programme.` Developing efficient leaders.` Raising membership fees.` Keeping transactions ethical and transparent` Amend the Trade Union Act.


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Some of the important and wellknown Indian Trade Unions were:

` AITUC - All India Trade UnionCongress - 1920

` INTUC - Indian National TradeUnion Congress - 1947

` HMS Hind Mazdoor Sabha` UTUC United Trade Unions

Congress` CITU Centre of Indian Trade

Unions` BMS Bhartiya Mazdoor Sangh` NFITU National Front of Indian

Trade Unions` TUCC Trade Union Co -

ordination Centre` NLO National Labour Organization


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COLLECTIVECOLLECTIVE

BARGAININGBARGAINING


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COLLECTIVE BARGAININGCOLLECTIVE BARGAININGSUBTOPICS : Definition Pre Requisites

Process Characteristics Importance, Advantages & Functions


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DefinitionDefinitionCollective Bargaining is a process ofdiscussion and negotiation betweentwo parties, one or both of whom isacting in concent. More specifically

it is a procedure by which employersand a group of employees agreeupon some of the conditions of workwhile compromising on some others.


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PrePre -- Requisites forRequisites for

Collective BargainingCollective Bargaining Freedom of association for employersand employees.

Mutual trust and confidence betweenparties.

Parties must avoid using unfair

practices. Parity of strength between bothparties.


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Right of employees to strike must berecognized.

Both parties should haverepresentatives duly authorized tomake decisions.

PrePre -- Requisites forRequisites for

Collective BargainingCollective Bargaining


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Process OfCollective BargainingProcess OfCollective Bargaining

Negotiations

Union ClaimManagement

Proposal

CollectiveAgreement

3rd PartyReferral

Revision / Renewal


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Collective Bargaining is a process whichbroadly consists of the following steps:

Negotiation of Agreement:

At this stage, certain proposals areput forward which pave the way tomutual acceptance after careful

deliberation and consideration(negotiations). For this both partieshave to justify their respectivestands and be cooperative.


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Process OfCollective BargainingProcess OfCollective Bargaining Implementation of Agreement:After Negotiation when both parties reachan agreement they sign a contract.The contract signed should be printed and

circulated amongst employees so that theyknow exactly what the terms of agreementare. Arrangements should then be made byboth parties to abide by their problems.

However during this course certainunforeseen problems may arise. This leadsto the next step in the process ofCollective Bargaining.


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Renewal / Revision of Agreement:To solve the problems arising fromthe new agreements, provisions are

generally made in the contract forrevising it. This will again lead tonegotiations for the new demands andmay result in a new contract.

However if there are no problemswith the original contract then it cansimply be renewed.



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CharacteristicsCharacteristics

A group or collective action asopposed to individual actions andinitiated through the representativesof employees.

Flexible and not static. Two way process, it is successful onlywhen two parties participate with agive and take approach.

Is dynamic as this concept is growing,expanding and changing in view ofattitudes, opinions and perceptions of

both parties.


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CharacteristicsCharacteristics E

nsures democracy at work place. Not a competitive process but a

complementary process.

An art, an advanced form of Human

Relations. Voluntary process accepted by both the

Management and the Union.

The Most unique feature is that both partiesstart bargaining with entirely divergent issuesand reach a middle point.


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Importance, Advantages & FunctionsImportance, Advantages & Functions

Increases economic strength ofunions.

Establishes uniform conditions ofwork.

Ensures prompt and fair redressal ofgrievances.

Avoids conflicts, strikes lock outs,etc. thus avoiding interruptions inwork.

Achieves efficient operation of plant.


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Promotes stability and prosperity ofindustry.

Lays down fair wages and working

norms. Is a flexible means of reaching asolution.

Acts as a vehicle of peace,*********

Importance, Advantages & FunctionsImportance, Advantages & Functions

Trade Unions & Collective Bargaining-pharma & Bbm

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