Union in Indian Context

8/7/2019 Union in Indian Context

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HISTORY HISTORY

Development of modern industry, especially inDevelopment of modern industry, especially inthethe Western countries, can be traced back to theWestern countries, can be traced back to the18th century. Industrial development in India on18th century. Industrial development in India on

Western lines however commenced from theWestern lines however commenced from themiddle of the 19th century. The first organisedmiddle of the 19th century. The first organisedTrade Union in India named as the MadrasTrade Union in India named as the MadrasLabour Union was formed in the year 1918.Labour Union was formed in the year 1918.Since then a large number of unions sprang upSince then a large number of unions sprang upin almost all the industrial centers of thein almost all the industrial centers of thecountry. Similarly, entrepreneurs also formedcountry. Similarly, entrepreneurs also formedtheir organisations to protect their interests.their organisations to protect their interests.



DEFINATIONDEFINATION

Trade Unions are the groups set Trade Unions are the groups set--up with the aimup with the aimof trying to create fairness and job security in aof trying to create fairness and job security in aworkplace. Section 2(h) of the Trade Unionworkplace. Section 2(h) of the Trade Union

Act,1926 has define a trade union as: Act,1926 has define a trade union as: Any combination, whether temporary or Any combination, whether temporary or

permanent, former primarily for the purpose of permanent, former primarily for the purpose of regulating the relation between workman andregulating the relation between workman and

workmen or between employers, or for imposingworkmen or between employers, or for imposingrestrictive conditions on the conduct of anyrestrictive conditions on the conduct of anytrade or business, and includes any federation of trade or business, and includes any federation of two or more trade unions.two or more trade unions.



Features of trade unionsFeatures of trade unions

I. It is an organization formed by employees orI. It is an organization formed by employees orworkers.workers.

II. It is formed on a continuous basis. It is aII. It is formed on a continuous basis. It is a

permanent body and not a casual or temporarypermanent body and not a casual or temporaryone.one. III. It is formed to protect and promote all kindsIII. It is formed to protect and promote all kinds

of interestsof interests economic, political and socialeconomic, political and social--of itsof itsmembers. The dominant interest with which amembers. The dominant interest with which a

union is concerned is, however, economic. IV. It union is concerned is, however, economic. IV. It includes federations of trade unions also. V. It includes federations of trade unions also. V. It achieves its objectives through collective actionachieves its objectives through collective actionand group effort.and group effort.



What are trade unions?What are trade unions?

Trade unions are organizations that represent people at work.Trade unions are organizations that represent people at work.Their purpose is to protect and improve people pay andTheir purpose is to protect and improve people pay andconditions of employment. They also campaign for laws andconditions of employment. They also campaign for laws andpolicies which will benefit working people.policies which will benefit working people.

Trade unions exist because an individual worker has very littleTrade unions exist because an individual worker has very little

power to influence decisions that are made about his or her job.power to influence decisions that are made about his or her job.By joining together with other workers, there is more chance of By joining together with other workers, there is more chance of having a voice and influence.having a voice and influence.

All sorts of jobs and industries are covered by trade All sorts of jobs and industries are covered by tradeunions. Some unions represent people who do aunions. Some unions represent people who do aparticular job or work in a specific industryparticular job or work in a specific industry -- forfor

example, the National Union of Journalists (NUJ), as itsexample, the National Union of Journalists (NUJ), as itsname suggests, represents journalists, and the Union forname suggests, represents journalists, and the Union forFinance Staff (UNIFI) is made up of people who doFinance Staff (UNIFI) is made up of people who dodifferent jobs in the financial sectordifferent jobs in the financial sector



What do unions do?What do unions do?

The main service a union provides for itsThe main service a union provides for itsmembers is negotiation andmembers is negotiation and

representation. There are other benefitsrepresentation. There are other benefitspeople get from being members of tradepeople get from being members of tradeunions. Negotiation, Representation,unions. Negotiation, Representation,Information and advice Member servicesInformation and advice Member services



NegotiationNegotiation--

Negotiation is where union representatives discuss with management Negotiation is where union representatives discuss with management issues which affect people working in an organization. The unionissues which affect people working in an organization. The unionfinds out the members views and relays these views to management.finds out the members views and relays these views to management.There may be a difference of opinion between management andThere may be a difference of opinion between management andunion members. Negotiation is about finding a solution to theseunion members. Negotiation is about finding a solution to thesedifferences. This process is also known as collective bargaining. Indifferences. This process is also known as collective bargaining. Inmany workplaces there is a formal agreement between the union andmany workplaces there is a formal agreement between the union andthe company which states that the union has the right to negotiatethe company which states that the union has the right to negotiatewith the employer. In these organisations, unions are said to bewith the employer. In these organisations, unions are said to berecognized for collective bargaining purposes. Pay, working hours,recognized for collective bargaining purposes. Pay, working hours,holidays and changes to working practices are the sorts of issues that holidays and changes to working practices are the sorts of issues that are negotiated. People who work in organisations where unions areare negotiated. People who work in organisations where unions arerecognised are better paid and are less likely to be made redundant recognised are better paid and are less likely to be made redundant than people who work in organisations where unions are not than people who work in organisations where unions are not recognised.recognised.



RepresentationRepresentation

Trade unions also represent individual members when they have aTrade unions also represent individual members when they have aproblem at work. If an employee feels they are being unfairlyproblem at work. If an employee feels they are being unfairlytreated, he or she can ask the union representative to help sort out treated, he or she can ask the union representative to help sort out the difficulty with the manager or employer. If the problem cannot the difficulty with the manager or employer. If the problem cannot be resolved amicably, the matter may go to an industrial tribunal.be resolved amicably, the matter may go to an industrial tribunal.Industrial tribunals make sure that employment laws are properlyIndustrial tribunals make sure that employment laws are properly

adhered to by employees and employers. They are made up of adhered to by employees and employers. They are made up of people outside the workplace who listen to the employer and thepeople outside the workplace who listen to the employer and theemployee point of view and then make a judgement about theemployee point of view and then make a judgement about thecase. People can ask their union to represent them at industrialcase. People can ask their union to represent them at industrialtribunals. Most cases that go to industrial tribunals are about pay,tribunals. Most cases that go to industrial tribunals are about pay,unfair dismissal, or discrimination at work. Unions also offer theirunfair dismissal, or discrimination at work. Unions also offer theirmembers legal representation. Normally this is to help people get members legal representation. Normally this is to help people get

financial compensation for workfinancial compensation for work--related injuries or to assist peoplerelated injuries or to assist peoplewho have to take their employer to court who have to take their employer to court



Contd.Contd.

Unions have a wealth of informationUnions have a wealth of informationwhich is useful to people at work. Theywhich is useful to people at work. They

can advise on a range of issues like howcan advise on a range of issues like howmuch holiday you are entitled to eachmuch holiday you are entitled to eachyear, how much pay you will get if youyear, how much pay you will get if yougo on maternity leave, and how you cango on maternity leave, and how you can

obtain training at work. Information andobtain training at work. Information andadviceadvice



Contd.Contd.

Member services during the last ten years, trade unions haveMember services during the last ten years, trade unions haveincreased the range of services they offer their members. Theseincreased the range of services they offer their members. Theseinclude: Education and traininginclude: Education and training -- Most unions run training coursesMost unions run training coursesfor their members on employment rights, health and safety andfor their members on employment rights, health and safety andother issues. Some unions also help members who have left other issues. Some unions also help members who have left

school with little education by offering courses on basic skills andschool with little education by offering courses on basic skills andcourses leading to professional qualifications. Legal assistancecourses leading to professional qualifications. Legal assistance -- As well as offering legal advice on employment issues, some As well as offering legal advice on employment issues, someunions give help with personal matters, like housing, wills andunions give help with personal matters, like housing, wills anddebt. Financial discountsdebt. Financial discounts -- People can get discounts onPeople can get discounts onmortgages, insurance and loans from unions. Welfare benefitsmortgages, insurance and loans from unions. Welfare benefits --One of the earliest functions of trade unions was to look afterOne of the earliest functions of trade unions was to look after

members who hit hard times. Some of the older unions offermembers who hit hard times. Some of the older unions offerfinancial help to their members when they are sick or unemployedfinancial help to their members when they are sick or unemployed



What is the role of trade unionsWhat is the role of trade unions

in industrial disputes?in industrial disputes? Most collective bargaining takes place quietly and agreementsMost collective bargaining takes place quietly and agreementsare quickly reached by the union and the employer. Occasionallyare quickly reached by the union and the employer. Occasionallydisagreements do occur and the two sides cannot agree. Indisagreements do occur and the two sides cannot agree. Inthese cases the union may decide to take industrial action.these cases the union may decide to take industrial action.

Industrial action takes different forms. It could mean an overIndustrial action takes different forms. It could mean an over

time ban, a worktime ban, a work--toto--rule or a strike. There are strict laws whichrule or a strike. There are strict laws whichunions have to follow when they take industrial action.unions have to follow when they take industrial action. A strike is only called as a last resort. Strikes are often in the A strike is only called as a last resort. Strikes are often in the

news but are rare. Both sides have a lot to lose. Employers losenews but are rare. Both sides have a lot to lose. Employers loseincome because of interruptions to production or services.income because of interruptions to production or services.Employees lose their salaries and may find that their jobs are at Employees lose their salaries and may find that their jobs are at risk.risk.

Usually employers and employees will go to some lengths toUsually employers and employees will go to some lengths toavoid the costs of strike action to both groups.avoid the costs of strike action to both groups.

The Advisory, Conciliation and Arbitration Service (AC AS) is oftenThe Advisory, Conciliation and Arbitration Service (AC AS) is oftenused to help find a solution to a dispute which is acceptable toused to help find a solution to a dispute which is acceptable toboth sides.both sides.



OBJECTIVESOBJECTIVES

Better WagesBetter Wages

Better Working conditionsBetter Working conditions

BonusBonus

Resist unsuitable schemesResist unsuitable schemes

Secure welfareSecure welfare

Project Interest of workersProject Interest of workers

Social welfareSocial welfare

Organizational growth and stabilityOrganizational growth and stability



FUNCTIONSFUNCTIONS

Militant Militant

FraternalFraternal

IntraIntra--mural activitiesmural activities

ExtraExtra--mural activitiesmural activities

Political activities.Political activities.



Why do workers join unionsWhy do workers join unions

Greater Bargaining PowerGreater Bargaining Power Makes their voice heardMakes their voice heard Minimize discriminationMinimize discrimination Sense of securitySense of security Sense of ParticipationSense of Participation

Sense of BelongingnessSense of Belongingness ProtectionProtection Social pressureSocial pressure CompulsionCompulsion Political beliefsPolitical beliefs SolidaritySolidarity

TraditionTradition Pay and conditionsPay and conditions CommunicationCommunication Health and safetyHealth and safety



CRITICISM OF TRADE UNION BY CRITICISM OF TRADE UNION BY EMPLOYERSEMPLOYERS

Lack of educationLack of education

May not welcome changeMay not welcome change

Strike on Illogical basisStrike on Illogical basis

Undue demands relating to wagesUndue demands relating to wages



STRUCTURE OF TRADE UNIONSSTRUCTURE OF TRADE UNIONS

Plant level FederationsPlant level Federations

Local level FederationsLocal level Federations

Regional Level FederationsRegional Level Federations

National Level FederationsNational Level Federations



TRADE UNIONS ACT 1926TRADE UNIONS ACT 1926

Trade Unions Act, 1926 provides for theTrade Unions Act, 1926 provides for theregistration of theregistration of the Trade Unions with theTrade Unions with theRegistrars of Trade Unions of their territory.Registrars of Trade Unions of their territory.

Any seven or more members of a trade union Any seven or more members of a trade unionby submitting their names to the registrar of by submitting their names to the registrar of trade unions and otherwise complying withtrade unions and otherwise complying withthe provisions of the Act with respect tothe provisions of the Act with respect toregistration may apply for the registration of registration may apply for the registration of

the Trade Union under the Trade Unions Act.the Trade Union under the Trade Unions Act.The Act gives protection to registered tradeThe Act gives protection to registered tradeunions in certain cases against civil andunions in certain cases against civil andcriminal action.criminal action.



Four important central organisations ofFour important central organisations of

workers in India areworkers in India are

The Indian National Trade Union Congress (INTUC). The Congress Party and theThe Indian National Trade Union Congress (INTUC). The Congress Party and thetop congress leaders formed the INTUC like Nehru and Patel were associatedtop congress leaders formed the INTUC like Nehru and Patel were associatedwith it. Every union affiliated to INTUC has to submit its dispute to arbitrationwith it. Every union affiliated to INTUC has to submit its dispute to arbitrationafter exhausting other means of settlement of disputes.after exhausting other means of settlement of disputes.

The All India Trade Union Congress (AITUC). This union serves as the labourThe All India Trade Union Congress (AITUC). This union serves as the labourforum of Communist Party of India at present. It is considered as the secondforum of Communist Party of India at present. It is considered as the second

largest union in India.largest union in India. The Hind Mazdoor Sabha (HMS). It was formed in Calcutta by the socialists whoThe Hind Mazdoor Sabha (HMS). It was formed in Calcutta by the socialists who

neither approved INTUC nor AITUC. The HMS was organized with a view toneither approved INTUC nor AITUC. The HMS was organized with a view tokeeping its members free from any political or other outside interference.keeping its members free from any political or other outside interference. The United Trade Union Congress (UTUC). Those persons who were dissident socialist The United Trade Union Congress (UTUC). Those persons who were dissident socialist

formed it. It functions mainly in Kerala and West Bengal.formed it. It functions mainly in Kerala and West Bengal. Centre for Indian Trade Unions (CITU). The Marxists separated from the AITUC inCentre for Indian Trade Unions (CITU). The Marxists separated from the AITUC in

May 1970 and formed theCITU.May 1970 and formed theCITU.

In addition to the above, there are four other central trade union organisations.In addition to the above, there are four other central trade union organisations.They are: Bhartiya Mazdoor Sangh (BMS) National Labour OrganisationThey are: Bhartiya Mazdoor Sangh (BMS) National Labour Organisation(NLO) National Front of Indian Trade Unions (NFITU) Trade Union Congress(NLO) National Front of Indian Trade Unions (NFITU) Trade Union CongressCommitteeCommittee



PROBLEMS AND WEAKNESS OF PROBLEMS AND WEAKNESS OF TRADE UNIONSTRADE UNIONS

Uneven growthUneven growth

Limited membershipLimited membership

Multiplicity of unionsMultiplicity of unions

Outside leadershipOutside leadership

Financial problemsFinancial problems

Indifferent attitude of workersIndifferent attitude of workers



How are trade unions financed?How are trade unions financed?

Each trade union member pays a subscription.Each trade union member pays a subscription.Some unions reduce the fees for unemployedSome unions reduce the fees for unemployedmembers.members.

People pay their subscription fees in different People pay their subscription fees in different ways. It may be collected by direct debit fromways. It may be collected by direct debit froma bank account, deducted directly from wagesa bank account, deducted directly from wagesor paid in cash or by cheque to a unionor paid in cash or by cheque to a unionrepresentative or full time official.representative or full time official.

In exchange, members receive the benefits of In exchange, members receive the benefits of representation, negotiation, protection andrepresentation, negotiation, protection andother services from their union.other services from their union.



How do trade unions recruitHow do trade unions recruittheir members?their members?

Different unions cover different jobs and industries.Different unions cover different jobs and industries.People are able to join the most appropriate union forPeople are able to join the most appropriate union fortheir job or sector. People are recruited to unions intheir job or sector. People are recruited to unions indifferent ways. Most people find out about the union bydifferent ways. Most people find out about the union by

talking to colleagues at the workplace and then maketalking to colleagues at the workplace and then makedirect contact with the union. Others are contacted by thedirect contact with the union. Others are contacted by theunion representative who gives them information about union representative who gives them information about the union and tells them how to join. Some employers andthe union and tells them how to join. Some employers andpersonnel officers tell employees about the union whenpersonnel officers tell employees about the union when

they start working for the organization. Unions arethey start working for the organization. Unions arestepping up their efforts to attract new members. Somestepping up their efforts to attract new members. Someare using adverts in newspapers and magazines,are using adverts in newspapers and magazines,television commercials and leaflets as part of high profiletelevision commercials and leaflets as part of high profilerecruitment campaigns.recruitment campaigns.



How has trade union membership changed inHow has trade union membership changed in

recent years?recent years?

There are several reasons for this fall in membership,There are several reasons for this fall in membership,including:including:

a dramatic fall in the number of jobs in manufacturinga dramatic fall in the number of jobs in manufacturingindustries where union membership was traditionally highindustries where union membership was traditionally highlarger numbers of unemployed peoplelarger numbers of unemployed people

a fall in traditional full time employment and an increasea fall in traditional full time employment and an increasein part time and temporary workers who are less likely toin part time and temporary workers who are less likely to join unions join unions

an increase in the proportion of the workforce employedan increase in the proportion of the workforce employedby small companies where it is often difficult for unionsby small companies where it is often difficult for unionsto organise hostile legislationto organise hostile legislation



SUGGESTIONS FOR HEALTH Y GROWTH SUGGESTIONS FOR HEALTH Y GROWTH

OF UNIONSOF UNIONS

One Union Per IndustryOne Union Per Industry

Paid Union OfficialsPaid Union Officials

Development of Internal LeadershipDevelopment of Internal Leadership

Recognition of Trade UnionsRecognition of Trade Unions

Improved Financial conditionImproved Financial condition

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Union in Indian Context