TRADE UNIONTRADE UNION

Module V (iii)Module V (iii)

Trade UnionsTrade Unions "Trade Union" means any combination, whether "Trade Union" means any combination, whether

temporary or permanent, formed primarily for temporary or permanent, formed primarily for the purpose of regulating the relations between the purpose of regulating the relations between workmen and employers or between workmen workmen and employers or between workmen and workmen, or between employers and and workmen, or between employers and employers, or for imposing restrictive employers, or for imposing restrictive conditions on the conduct of any trade or conditions on the conduct of any trade or business business

Trade unions are formed to protect and Trade unions are formed to protect and promote the interests of their members. Their promote the interests of their members. Their primary function is to protect the interests of primary function is to protect the interests of workers against discrimination and unfair labor workers against discrimination and unfair labor practices. practices.

ObjectivesObjectives

Representation Representation NegotiationNegotiation Voice in decisions affecting Voice in decisions affecting

workersworkers Member servicesMember services

(a)(a) Education and trainingEducation and training

(b)(b) Legal assistanceLegal assistance

(c)(c) Financial discountsFinancial discounts

(d)(d) Welfare benefitsWelfare benefits

Functions of Trade unionsFunctions of Trade unions

(i)  Militant functions(i)  Militant functions

(a) To achieve higher wages and better (a) To achieve higher wages and better working conditionsworking conditions

(b) To raise the status of workers as a (b) To raise the status of workers as a part of industrypart of industry

(c) To protect labors against (c) To protect labors against victimization and injustice victimization and injustice

(ii) Fraternal functions (ii) Fraternal functions

To take up welfare measures for improving To take up welfare measures for improving the morale of workersthe morale of workers

To generate self confidence among To generate self confidence among workersworkers

To encourage sincerity and discipline To encourage sincerity and discipline among workersamong workers

To provide opportunities for promotion and To provide opportunities for promotion and growthgrowth

To protect women workers against To protect women workers against discrimination discrimination

Importance Of Trade UnionsImportance Of Trade Unions

Trade unions help in accelerated pace of Trade unions help in accelerated pace of economic development in many ways as follows: economic development in many ways as follows:

by helping in the recruitment and selection of by helping in the recruitment and selection of workers.workers.

by inculcating discipline among the workforceby inculcating discipline among the workforce by enabling settlement of industrial disputes in a by enabling settlement of industrial disputes in a

rational mannerrational manner by helping social adjustments. Workers have to by helping social adjustments. Workers have to

adjust themselves to the new working conditions, adjust themselves to the new working conditions, the new rules and policies. Workers coming from the new rules and policies. Workers coming from different backgrounds may become disorganized, different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in unsatisfied and frustrated. Unions help them in such adjustment. such adjustment.

Contd….Contd….

Social responsibilities of trade Social responsibilities of trade unions include: unions include:

promoting and maintaining national promoting and maintaining national integration by reducing the number integration by reducing the number of industrial disputesof industrial disputes

incorporating a sense of corporate incorporating a sense of corporate social responsibility in workerssocial responsibility in workers

achieving industrial peace achieving industrial peace

Trade Unionism In India Trade Unionism In India

Indian trade union movement can be Indian trade union movement can be divided into three phases. divided into three phases.

* * The first phase (1850 to1900)The first phase (1850 to1900)

* * The second phase (1900 to The second phase (1900 to 1946)1946)* * The third phaseThe third phase (in 1947).(in 1947).

By 1949, four central trade union By 1949, four central trade union organizations were functioning organizations were functioning in the countryin the country::

The All India Trade Union Congress,The All India Trade Union Congress,The Indian National Trade Union The Indian National Trade Union

Congress,Congress,The Hindu Mazdoor Sangh, andThe Hindu Mazdoor Sangh, andThe United Trade Union Congress The United Trade Union Congress

Trade Union Act 25 March Trade Union Act 25 March 19261926

The trade Unions Act, 1926 provides for The trade Unions Act, 1926 provides for registration of trade unions with a view to render registration of trade unions with a view to render lawful organisation of labour to enable collective lawful organisation of labour to enable collective bargaining. It also confers on a registered trade bargaining. It also confers on a registered trade union certain protection and privileges.union certain protection and privileges.

The Act extends to the whole of India and applies The Act extends to the whole of India and applies to all kinds of unions of workers and associations to all kinds of unions of workers and associations of employers, which aim at regularizing labor of employers, which aim at regularizing labor management relations. A Trade Union is a management relations. A Trade Union is a combination whether temporary or permanent, combination whether temporary or permanent, formed for regulating the relations not only formed for regulating the relations not only between workmen and employers but also between workmen and employers but also between workmen and workmen or between between workmen and workmen or between employers and employers. employers and employers.

Trade unions in IndiaTrade unions in India

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

The rural workers, who constitute about 60 The rural workers, who constitute about 60 per cent of the workforce.per cent of the workforce.

Organized sector, which employs 8 per cent Organized sector, which employs 8 per cent of workforce, andof workforce, and

The urban informal sector (which includes The urban informal sector (which includes the growing software industry and other the growing software industry and other services, not included in the formal sector) services, not included in the formal sector) which constitutes the rest 32 per cent of which constitutes the rest 32 per cent of the workforce. the workforce.

At present there are twelve Central Trade Union At present there are twelve Central Trade Union Organizations in India: Organizations in India:

All India Trade Union Congress (AITUC)All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU)Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP)Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS)Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU)Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC)Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU)National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO)National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS) United Trade Union Congress - Lenin Sarani (UTUC - LS)

Industrial Relation PolicyIndustrial Relation Policy

Prior to 1991, the industrial relations system Prior to 1991, the industrial relations system in India sought to control conflicts and in India sought to control conflicts and disputes through excessive labor legislations.disputes through excessive labor legislations.

With the coming of globalization, the 40 year With the coming of globalization, the 40 year old policy of protectionism proved old policy of protectionism proved inadequate for Indian industry to remain inadequate for Indian industry to remain competitive as the lack of flexibility posed a competitive as the lack of flexibility posed a serious threat to manufacturers because they serious threat to manufacturers because they had to compete in the international market.had to compete in the international market.

With the advent of liberalization in1992, With the advent of liberalization in1992, the industrial relations policy began to the industrial relations policy began to change. change.

Now, the policy was tilted towards Now, the policy was tilted towards employers. Employers opted for workforce employers. Employers opted for workforce reduction, introduced policies of voluntary reduction, introduced policies of voluntary retirement schemes and flexibility in retirement schemes and flexibility in workplace also increased. Thus, workplace also increased. Thus, globalization brought major changes in globalization brought major changes in industrial relations policy in India. policy in India.

Contd….Contd….The changes are as follows: The changes are as follows: Collective bargaining in India has mostly been Collective bargaining in India has mostly been

decentralized, but now in sectors where it was not so, are decentralized, but now in sectors where it was not so, are also facing pressures to follow decentralization.also facing pressures to follow decentralization.

Some industries are cutting employment to a significant Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition extent to cope with the domestic and foreign competition e.g. pharmaceuticals. On the other hand, in other e.g. pharmaceuticals. On the other hand, in other industries where the demand for employment is increasing industries where the demand for employment is increasing are experiencing employment growths. are experiencing employment growths.

In the expansionary economy there is a clear shortage of In the expansionary economy there is a clear shortage of managers and skilled labor.managers and skilled labor.

The number of local and enterprise level unions has The number of local and enterprise level unions has increased and there is a significant reduction in the increased and there is a significant reduction in the influence of the unions.influence of the unions.

Under pressure some unions and federations are putting Under pressure some unions and federations are putting up a united front e.g. banking.up a united front e.g. banking.

Another trend is that the employers have started to push Another trend is that the employers have started to push for internal unions i.e. no outside affiliation.for internal unions i.e. no outside affiliation.

HR policies and forms of work are emerging that include, HR policies and forms of work are emerging that include, especially in multi-national companies, multi-skills, especially in multi-national companies, multi-skills, variable compensation, job rotation etc. These new policies variable compensation, job rotation etc. These new policies are difficult to implement in place of old practices as the are difficult to implement in place of old practices as the institutional set up still needs to be changed.institutional set up still needs to be changed.

HRM is seen as a key component of business strategy. HRM is seen as a key component of business strategy. Training and skill development is also receiving attention Training and skill development is also receiving attention

in a numberin a number of industries, especially banking and information of industries, especially banking and information technology. technology.

Reasons for Joining Trade Reasons for Joining Trade UnionsUnions

Greater Bargaining PowerGreater Bargaining PowerMinimize DiscriminationMinimize DiscriminationSense of SecuritySense of SecuritySense of ParticipationSense of Participation Sense of BelongingnessSense of BelongingnessPlatform for self expressionPlatform for self expression Betterment of relationshipsBetterment of relationships

Causes of Industrial DisputesCauses of Industrial Disputes

The causes of industrial disputes can be The causes of industrial disputes can be broadly classified into two categories:broadly classified into two categories:

economic causes economic causes The economic causes will include issues relating to The economic causes will include issues relating to

compensation like wages, bonus, allowances, and compensation like wages, bonus, allowances, and conditions for work, working hours, leave and conditions for work, working hours, leave and holidays without pay, unjust layoffs and holidays without pay, unjust layoffs and retrenchments. retrenchments.

non-economic causes non-economic causes

The non economic factors will include The non economic factors will include victimization of workers, ill treatment victimization of workers, ill treatment by staff members, sympathetic strikes, by staff members, sympathetic strikes, political factors, indiscipline etc. political factors, indiscipline etc.

Analysis of Industrial Analysis of Industrial DisputesDisputes

The number of industrial disputes in The number of industrial disputes in country has shown slow but steady country has shown slow but steady fall over the past ten years. In 1998, fall over the past ten years. In 1998, the total number of disputes was the total number of disputes was 1097 which fell by more than half to 1097 which fell by more than half to 440 in 2006.It is being estimated 440 in 2006.It is being estimated that this trend will continue in 2007 that this trend will continue in 2007 as well. as well.

StrikesStrikes

A strike is a very powerful weapon used by A strike is a very powerful weapon used by trade unions and other labor associations to trade unions and other labor associations to get their demands accepted. It generally get their demands accepted. It generally involves quitting of work by a group of involves quitting of work by a group of workers for the purpose of bringing the workers for the purpose of bringing the pressure on their employer so that their pressure on their employer so that their demands get accepted. When workers demands get accepted. When workers collectively cease to work in a particular collectively cease to work in a particular industry, they are said to be on strike.industry, they are said to be on strike.

According to Industrial Disputes Act According to Industrial Disputes Act 1947, a strike is “a cessation of work 1947, a strike is “a cessation of work by a body of persons employed in an by a body of persons employed in an industry acting in combination; or a industry acting in combination; or a concerted refusal of any number of concerted refusal of any number of persons who are or have been so persons who are or have been so employed to continue to work or to employed to continue to work or to accept employment; or a refusal accept employment; or a refusal under a common understanding of any under a common understanding of any number of such persons to continue to number of such persons to continue to work or to accept employment”. work or to accept employment”.

Causes of strikesCauses of strikes Strikes can occur because of the following reasons:Strikes can occur because of the following reasons: Dissatisfaction with company policyDissatisfaction with company policy Salary and incentive problemsSalary and incentive problems Increment not up to the mark Increment not up to the mark Wrongful discharge or dismissal of workmenWrongful discharge or dismissal of workmen Withdrawal of any concession or privilegeWithdrawal of any concession or privilege Hours of work and rest intervalsHours of work and rest intervals Leaves with wages and holidaysLeaves with wages and holidays Bonus, profit sharing, Provident fund and gratuity Bonus, profit sharing, Provident fund and gratuity Retrenchment of workmen and closure of Retrenchment of workmen and closure of

establishment establishment Dispute connected with minimum wages Dispute connected with minimum wages

TYPES OF STRIKETYPES OF STRIKE

Economic StrikeEconomic Strike Sympathetic StrikeSympathetic Strike General StrikeGeneral Strike Sit down StrikeSit down Strike Slow Down StrikeSlow Down Strike Sick-out (or sick-inSick-out (or sick-in ) )Wild cat strikesWild cat strikes

LockoutsLockouts

A lockout is a work stoppage in which A lockout is a work stoppage in which an employer prevents employees an employer prevents employees from working. It is declared by from working. It is declared by employers to put pressure on their employers to put pressure on their workers. This is different from a workers. This is different from a strike, in which employees refuse to strike, in which employees refuse to work. Thus, a lockout is employers’ work. Thus, a lockout is employers’ weapon while a strike is raised on weapon while a strike is raised on part of employees. part of employees.

PICKETINGPICKETING

When workers are dissuaded from work When workers are dissuaded from work by stationing certain men at the factory by stationing certain men at the factory gates, such a step is known as picketing. gates, such a step is known as picketing.

Pickets are workers who are on strike Pickets are workers who are on strike that stand at the entrance to their that stand at the entrance to their workplace. workplace.

It is basically a method of drawing public It is basically a method of drawing public attention towards the fact that there is a attention towards the fact that there is a dispute between the management and dispute between the management and employees. employees.

Contd….Contd….

The purpose of picketing is: The purpose of picketing is: to stop or persuade workers not to to stop or persuade workers not to

go to workgo to workto tell the public about the striketo tell the public about the striketo persuade workers to take their to persuade workers to take their

union's side union's side

GHERAOGHERAO

Gherao in Hindi means to surround Gherao in Hindi means to surround It denotes a collective action initiated It denotes a collective action initiated

by a group of workers under which by a group of workers under which members of the management are members of the management are prohibited from leaving the industrial prohibited from leaving the industrial establishment premises by workers establishment premises by workers who block the exit gates by forming who block the exit gates by forming human barricades. human barricades.

The workers may gherao the The workers may gherao the members of the management by members of the management by blocking their exits and forcing them blocking their exits and forcing them to stay inside their cabins. to stay inside their cabins.

Contd…Contd…

The main object of gherao is to inflict The main object of gherao is to inflict physical and mental torture to the physical and mental torture to the person being gheraoed and hence person being gheraoed and hence this weapon disturbs the industrial this weapon disturbs the industrial peace to a great extent. peace to a great extent.

Measures for Improving Measures for Improving Industrial Relations Industrial Relations

Workers’ Participation in Workers’ Participation in ManagementManagement

Mutual AccommodationMutual Accommodation

The approach must be of mutual “give The approach must be of mutual “give and take rather than “take or leave.” and take rather than “take or leave.” The management should be willing to The management should be willing to co-operate rather than blackmail the co-operate rather than blackmail the workers. workers.

Contd…Contd…

Sincere Implementation of Sincere Implementation of AgreementsAgreements

Sound Personnel PoliciesSound Personnel PoliciesGovernment’s RoleGovernment’s Role Progressive OutlookProgressive Outlook