BBM 503

TRADE UNION AND GLOBAL CRISIS

Submitted to: Dr. Sanjeev Bhatnagar

Submitted by: Geetu th BBM 5th SEM 117516

INTRODUCTION OF TRADE UNIONS

MEANING
A trade union is an organization of e !"o#ees for ed on a $ontinuous %asis for the !ur!ose of se$uring diverse range of %enefits. It is a $ontinuous asso$iation of &age earners for the !ur!ose of i !roving the $onditions of their &or'ing "ives. (he (rade )nion A$t 1*+6 defines a trade union as a $o %ination, &hether te !orar# or !er anent, for ed !ri ari"# for the !ur!ose of regu"ating the re"ations %et&een &or' en and e !"o#ers or %et&een &or' en and &or' en, or %et&een e !"o#ers and e !"o#ers, or for i !osing restri$tive $ondition on the $ondu$t of an# trade or %usiness, and in$"udes an# federation of t&o or ore trade unions. (his definition is ver# e-haustive as it in$"udes asso$iations of %oth the &or'ers and e !"o#ers and the federations of their asso$iations. .ere, the re"ationshi!s that have %een ta"'ed a%out are %oth te !orar# and !er anent. (his eans it a!!"ies to te !orar# &or'ers /or $ontra$tua" e !"o#ees0 as &e"". (hen this definition, !ri ari"#, ta"'s a%out three re"ationshi!s. (he# are the re"ationshi!s %et&een the1 &or' en and &or' en, &or' en and e !"o#ers, and e !"o#ers and e !"o#ers. is to negotiate e %ers. In aintaining and

(hus, a trade union $an %e seen as a grou! of e !"o#ees in a !arti$u"ar se$tor, &hose ai genera", a union is there to re!resent the interests of its &here "egis"ation affe$ts their !rote$ting the $o on interests of its e %ers, and

&ith e !"o#ers over !a#, jo% se$urit#, &or'ing hours, et$, using the $o""e$tive !o&er of its

a# even engage in !o"iti$a" a$tivit#

e %ers. (rade unions are vo"untar# asso$iations for ed for the !ursuit of e %ers and a"so !ro ote &e"fare. (he# !rote$t the e$ono i$, e %ers.

!o"iti$a" and so$ia" interests of their

FEATURES OF TRADE UNIONS

1. It is an asso$iation either of e !"o#ers or e !"o#ees or of inde!endent &or'ers. (he# E !"o#ers3 asso$iation /eg., E !"o#er3s 4ederation of India, Indian !a!er et$.0 Genera" "a%or unions 4riend"# so$ieties )nions of inte""e$tua" "a%or /eg, A"" India (ea$hers Asso$iation0 a# $onsist of12 i"" asso$iation,

+. It is for ed on a $ontinuous %asis. It is a !er anent %od# and not a $asua" or te !orar# one. (he# !ersist throughout the #ear. +

5. It is for ed to !rote$t and !ro ote a"" 'inds of interests 6e$ono i$, !o"iti$a" and so$ia"2of its e %ers. (he do inant interest &ith &hi$h a union is $on$erned is, ho&ever, e$ono i$. 7. It a$hieves its o%je$tives through $o""e$tive a$tion and grou! effort. Negotiations and $o""e$tive %argaining are the too"s for a$$o !"ishing o%je$tives. 5. (rade unions have sho&n re ar'a%"e !rogress sin$e their in$e!tion8 oreover, the $hara$ter of trade unions has a"so %een $hanging. In s!ite of on"# fo$using on the e$ono i$ %enefits of &or'ers, the trade unions are a"so &or'ing to&ards raising the status of "a%ors as a !art of industr#.

OBJECTIVES OF TRADE UNIONS

(rade unions are for ed to !rote$t and !ro ote the interests of their a$hieve the fo""o&ing o%je$tives1 Rep e!e"t#tio" 12(rade unions re!resent individua" &or'ers &hen the# have a !ro%"e the diffi$u"t# &ith the anager or e !"o#er. )nions a"so offer their at &or'. If e %ers. (heir !ri ar# fun$tion is to !rote$t the interests of &or'ers against dis$ri ination and unfair "a%or !ra$ti$es. (rade unions are for ed to

an e !"o#ee fee"s he is %eing unfair"# treated, he $an as' the union re!resentative to he"! sort out e %ers "ega" re!resentation. Nor a""# this is to he"! !eo!"e get finan$ia" $o !ensation for &or'2re"ated injuries or to assist !eo!"e &ho have to ta'e their e !"o#er to $ourt. Ne$oti#tio":%Negotiation is &here union re!resentatives, dis$uss &ith &hi$h affe$t !eo!"e &or'ing in an organization. (here anage ent and union anage ent, the issues a# %e a differen$e of o!inion %et&een

e %ers. (rade unions negotiate &ith the e !"o#ers to find out a so"ution an# &or'!"a$es there is a for a" agree ent %et&een the union and

to these differen$es. 9a#, &or'ing hours, ho"ida#s and $hanges to &or'ing !ra$ti$es are the sorts of issues that are negotiated. In the $o !an# &hi$h states that the union has the right to negotiate &ith the e !"o#er. In these organizations, unions are said to %e re$ognized for $o""e$tive %argaining !ur!oses. Voi&e i" de&i!io"! #''e&ti"$ (o )e !12(he e$ono i$ se$urit# of e !"o#ees is deter ined not on"# %# the "eve" of &ages and duration of their e !"o# ent, %ut a"so %# the anage ent3s a# not !ersona" !o"i$ies &hi$h in$"ude se"e$tion of e !"o#ees for "a# offs, retren$h ent, !ro otion and transfer. (hese !o"i$ies dire$t"# affe$t &or'ers. (he eva"uation $riteria for su$h de$isions %e fair. So, the intervention of unions in su$h de$ision have their sa# in the de$ision the# offer their a'ing to safeguard their interests. a'ing is a &a# through &hi$h &or'ers $an

Membe !e *i&e!12 During the "ast fe& #ears, trade unions have in$reased the range of servi$es e %ers. (hese in$"ude1 5

Edu&#tio" #"d t #i"i"$1 2 Most unions run training $ourses for their rights, hea"th and safet# and other issues. So e unions a"so he"! :ua"ifi$ations.

e %ers on e !"o# ent

e %ers &ho have "eft s$hoo"

&ith "itt"e edu$ation %# offering $ourses on %asi$ s'i""s and $ourses "eading to !rofessiona" +e$#, #!!i!t#"&e12 2 As &e"" as offering "ega" advi$e on e !"o# ent issues, so e unions give he"! &ith !ersona" atters, "i'e housing, &i""s and de%t.

FUNCTIONS OF TRADE UNIONS

(rade unions !erfor /i0 Mi"itant fun$tions, /ii0 4raterna" fun$tions Mi,it#"t Fu"&tio"!:% ;ne set of a$tivities !erfor ed %# trade unions "eads to the %etter ent of the !osition of their re"ation to their e !"o# ent. (he ai these ai s %# the the for ethod of anage ent in ed u! as1 of &or' and e !"o# ent, get %etter treat ent fro e %ers in of su$h a$tivities is to ensure ade:uate &ages, se$ure %etter $onditions e !"o#ers, et$. <hen the unions fai" to a$$o !"ish a nu %er of fun$tions in order to a$hieve the o%je$tives. (hese fun$tions $an %e %road"# $"assified into three $ategories1

$o""e$tive %argaining and negotiations, the# ado!t an a!!roa$h and !ut u! a fight &ith the 'no&n as i"itant or fighting fun$tions. (hus, the

of go2s"o& ta$ti$s, stri'e, %o#$ott, gherao, et$. .en$e, these fun$tions of the trade unions are i"itant fun$tions of trade unions $an %e su (o a$hieve higher &ages and %etter &or'ing $onditions (o raise the status of &or'ers as a !art of industr# (o !rote$t "a%ors against vi$ti ization and injusti$e e %ers in ti es of need, easures

F #te "#, Fu"&tio"!:% Another set of a$tivities !erfor ed %# trade unions ai s at rendering he"! to its industria" re"ations and diffuse edu$ation and $u"ture a ong their for i !roving the assistan$e to its and i !roving their effi$ien$#. (rade unions tr# to foster a s!irit of $oo!eration and !ro ote friend"# e %ers. (he# ta'e u! &e"fare an# &e"fare ora"e of &or'ers and generate se"f $onfiden$e a ong the . (he# a"so arrange for "ega" e %ers, if ne$essar#. Besides, these, the# underta'e easures for their agazine or journa". 7

e %ers, e.g., s$hoo" for the edu$ation of $hi"dren, "i%rar#, reading2roo s, in2door and out2door ga es, and other re$reationa" fa$i"ities. So e trade unions even underta'e !u%"i$ation of so e

(hese a$tivities, &hi$h

a# %e $a""ed fraterna" fun$tions, de!end on the avai"a%i"it# of funds, &hi$h the e %ers and donations fro outsiders, and a"so on their $o !etent and ed u! as12

unions raise %# su%s$ri!tion fro (o ta'e u! &e"fare

en"ightened "eadershi!. (hus, the fraterna" fun$tions of trade unions $an %e su easures for i !roving the ora"e of &or'ers

(o generate se"f $onfiden$e a ong &or'ers (o en$ourage sin$erit# and dis$i!"ine a ong &or'ers (o !rovide o!!ortunities for !ro otion and gro&th (o !rote$t &o en &or'ers against dis$ri ination

IM-ORTANCE OF TRADE UNIONS

(he e-isten$e of a strong and re$ognized trade union is a !re2re:uisite to industria" !ea$e. De$isions ta'en through the !ro$ess of $o""e$tive %argaining and negotiations %et&een e !"o#er and unions are inf"uentia". (rade unions !"a# an i !ortant ro"e and are he"!fu" in effe$tive $o &or'ers and the do not turn into $ourses for their ore uni$ation %et&een the

anage ent. (he# !rovide the advi$e and su!!ort to ensure that the differen$es of o!inion ajor $onf"i$ts. (he $entra" fun$tion of a trade union is to re!resent !eo!"e at &or'. But the# e %ers on a &ide range of atters. See'ing a hea"th# and safe &or'ing environ ent is an# &a#s as fo""o&s1

a"so have a &ider ro"e in !rote$ting their interests. (he# a"so !"a# an i !ortant edu$ationa" ro"e, organizing a"so !ro inent feature of union a$tivit#. (rade unions he"! in a$$e"erated !a$e of e$ono i$ deve"o! ent in B# he"!ing in the re$ruit ent and se"e$tion of &or'ers. B# in$u"$ating dis$i!"ine a ong the &or'for$e B# ena%"ing sett"e ent of industria" dis!utes in a rationa" anner

B# he"!ing so$ia" adjust ents. <or'ers have to adjust the se"ves to the ne& &or'ing $onditions, the ne& ru"es and !o"i$ies. <or'ers $o ing fro unsatisfied and frustrated. )nions he"! the different %a$'grounds in su$h adjust ent. a# %e$o e disorganized,

(rade unions are a !art of so$iet# and as su$h, have to ta'e into $onsideration the nationa" integration as &e"". So e i !ortant so$ia" res!onsi%i"ities of trade unions in$"ude1 9ro oting and aintaining nationa" integration %# redu$ing the nu %er of industria" dis!utes

In$or!orating a sense of $or!orate so$ia" res!onsi%i"it# in &or'ers A$hieving industria" !ea$e

REASONS FOR JOININ. TRADE UNIONS

5

(he i !ortant for$es that

a'e the e !"o#ees join a union are as fo""o&s1

/0 . e#te B# $#i"i"$ -o(e (he individua" e !"o#ee !ossesses ver# "itt"e %argaining !o&er as $o !ared to that of his e !"o#er. If he is not satisfied &ith the &age and other $onditions of e !"o# ent, he $an "eave the jo%. It is not !ra$ti$a%"e to $ontinua""# resign fro one jo% after another &hen he is dissatisfied. (his i !oses a great finan$ia" and is to join a union that $an ta'e $on$erted a$tion e otiona" %urden u!on the &or'er. (he %etter $ourse for hi

against the e !"o#er. (he threat or a$tua"it# of a stri'e %# a union is a !o&erfu" too" that often $auses the e !"o#er to a$$e!t the de ands of the &or'ers for %etter $onditions of e !"o# ent. 10 Mi"imi2e Di!& imi"#tio" (he de$isions regarding !a#, &or', transfer, !ro otion, et$. are high"# su%je$tive in nature. (he !ersona" re"ationshi!s e-isting %et&een the su!ervisor and ea$h of his su%ordinates a# inf"uen$e the anage ent. (hus, there are $han$es of favoritis s and dis$ri inations. A trade union $an $o !e" the anage ent are under $"ose s$rutin# of the "a%or union. (his has the effe$t of dis$ri ination. 30 Se"!e o' Se&u ity (he e !"o#ees !rote$tion fro a# join the unions %e$ause of their %e"ief that it is an effe$tive &a# to se$ure ade:uate various t#!es of hazards and in$o e inse$urit# su$h as a$$ident, injur#, i""ness, anage ent anage ent to and

for u"ate !ersonne" !o"i$ies that !ress for e:ua"it# of treat ent to the &or'ers. A"" the "a%or de$isions of the ini izing favoritis

une !"o# ent, et$. (he trade union se$ure retire ent %enefits of the &or'ers and $o !e" the to invest in &e"fare servi$es for the %enefit of the &or'ers. 30 Se"!e o' -# ti&ip#tio" (he e !"o#ees $an !arti$i!ate in and the anage ent. anage ent of

atters affe$ting their interests on"# if the# join trade

unions. (he# $an inf"uen$e the de$isions that are ta'en as a resu"t of $o""e$tive %argaining %et&een the union 50 Bette me"t o' e,#tio"!4ip! Another reason for e !"o#ees joining unions is that e !"o#ees fee" that unions $an fu"fi"" the i !ortant need for ade:uate a$hiner# for !ro!er aintenan$e of e !"o#er2e !"o#ee re"ations. )nions he"! in %etter ent of industria" re"ations a ong anage ent and &or'ers %# so"ving the !ro%"e s !ea$efu""#.

TRADE UNIONISM IN INDIA

(he trade unionis in India deve"o!ed :uite s"o&"# as $o !ared to the &estern nations. Indian trade union ove ent $an %e divided into three !hases. T4e 'i !t p4#!e 5/650 to/7008 6

During this !hase the in$e!tion of trade unions too' !"a$e. During this !eriod, the &or'ing and "iving $onditions of the "a%or &ere !oor and their &or'ing hours &ere "ong. =a!ita"ists &ere on"# interested in their !rodu$tivit# and !rofita%i"it#. In addition, the &ages &ere a"so "o& and genera" e$ono i$ $onditions &ere !oor in industries. In order to regu"ate the &or'ing hours and other servi$e $onditions of the Indian te-ti"e "a%orers, the Indian 4a$tories A$t &as ena$ted in 1>>1. As a resu"t, e !"o# ent of $hi"d "a%or &as !rohi%ited. (he gro&th of trade union ove ent &as s"o& in this !hase and "ater on the Indian 4a$tor# A$t of 1>>1 &as

a ended in 1>*1. Man# stri'es too' !"a$e in the t&o de$ades fo""o&ing 1>>? in a"" industria" $ities. (hese stri'es taught &or'ers to understand the !o&er of united a$tion even though there &as no union in rea" ter s. S a"" asso$iations "i'e Bo %a# Mi""2.ands Asso$iation $a e u! %# this ti e. T4e !e&o"d p4#!e 5/700 to /7398 ove ents of the an# unions $a e into e-isten$e in the $ountr#. At Ah eda%ad,

(his !hase &as $hara$terized %# the deve"o! ent of organized trade unions and !o"iti$a" &or'ing $"ass. Bet&een 1*1> and 1*+5,

under the guidan$e of Mahat a Gandhi, o$$u!ationa" unions "i'e s!inners3 unions and &eavers3 unions &ere for ed. A stri'e &as "aun$hed %# these unions under the "eadershi! of Mahat a Gandhi &ho turned it into a sat#agrah. (hese unions federated into industria" union 'no&n as (e-ti"e @a%or Asso$iation in 1*+?.In 1*+?, the 4irst Nationa" (rade union organization /(he A"" India (rade )nion =ongress /AI()=00 &as esta%"ished. Man# of the "eaders of this organization &ere "eaders of the nationa" Move ent. In 1*+6, (rade union "a& $a e u! &ith the efforts of Mr. N N Aoshi that %e$a e o!erative fro India (rade )nion 4ederation /AI()40 &as for ed. (he third !hase %egan &ith the e ergen$e of inde!endent India /in 1*770. (he !artition of $ountr# affe$ted the trade union ove ent !arti$u"ar"# Benga" and 9unja%. B# 1*7*, four $entra" trade union organizations &ere fun$tioning in the $ountr#1 1. (he A"" India (rade )nion =ongress, +. (he Indian Nationa" (rade )nion =ongress, 5. (he .indu Mazdoor Sangh, and 7. (he )nited (rade )nion =ongress (he &or'ing $"ass ove ent &as a"so !o"iti$ized a"ong the "ines of !o"iti$a" !arties. 4or instan$e Indian of the =ongress 9art#. (he AI()= is the 7 nationa" trade )nion =ongress /IN()=0 is the trade union ar 1*+7. During 1*+>, A""

trade union ar industries.

of the =o

unist 9art# of India. Besides &or'ers, &hite2$o""ar e !"o#ees, su!ervisors and

anagers are a"so organized %# the trade unions, as for e-a !"e in the Ban'ing, Insuran$e and 9etro"eu T #de u"io"! i" I"di# (he Indian &or'for$e $onsists of 75? $onsist of three se$tors1 1. (he rura" &or'ers, &ho $onstitute a%out 6? !er $ent of the &or'for$e. +. ;rganized se$tor, &hi$h e !"o#s > !er $ent of &or'for$e, and 5. (he ur%an infor a" se$tor /&hi$h in$"udes the gro&ing soft&are industr# and other servi$es, not in$"uded in the for a" se$tor0 &hi$h $onstitutes the rest 5+ !er $ent of the &or'for$e. At !resent there are t&e"ve =entra" (rade )nion ;rganizations in India1 1. A"" India (rade )nion =ongress /AI()=0 +. Bharati#a Mazdoor Sangh /BMS0 5. =entre of Indian (rade )nions /=I()0 7. .ind Mazdoor Cisan 9an$ha#at /.MC90 5. .ind Mazdoor Sa%ha /.MS0 6. Indian 4ederation of 4ree (rade )nions /I44()0 7. Indian Nationa" (rade )nion =ongress /IN()=0 >. Nationa" 4ront of Indian (rade )nions /N4I()0 *. Nationa" @a%or ;rganization /N@;0 1?. (rade )nions =o2ordination =entre /()==0 11. )nited (rade )nion =ongress /)()=0 and 1+. )nited (rade )nion =ongress 2 @enin Sarani /)()= 2 @S0 FI.URES RE.ARDIN. TRADE UNIONS (a%"e Sho&ing Gro&th ;f (rade )nions and Me %ershi! is fo""o&ing %e"o&12 i""ion &or'ers, gro&ing +B annua""#. (he Indian "a%or ar'ets

>

CASE STUD:%;ERO ;ONDA

.ero .onda Motors @i ited, %ased in De"hi, India is a joint venture %et&een the .ero Grou! of India and .onda of Aa!an. It has %een referred to as the &or"dDs %iggest vehi$"es. It has three are $a!a%"e of $ontra$t . anufa$turing 5.* anufa$turer of + &hee"er anufa$turing units %ased at Gurgaon and at .arid&ar . (hese !"ants together i""ion %i'es !er #ear. 9rodu$tion of the !"ant, &hi$h has a

$a!a$it# of a%out 6,??? units !er da#. (here are a%out 1,+?? !er anent &or'ers, &hi"e 7,??? are on

CASE FACTS:%
9"a$e 1 .ero .onda Gurgaon 9"ant Stri'e Duration 1 1? A!ri" +??6 2 17th A!ri" +??6 No. of &or'ers invo"ved1 7??? $asua" &or'ers De ands1 <age hi'e, e-tra $asua" "eave and &ith the !er anent &or'ers. 4inan$ia" @oss1 @oss of Es.1?? $rore . edi$a" %enefits at !ar

BAC<.ROUND:%
Around 7??? $ontra$t &or'ers of .ero .ondaDs Gurgaon 9"ant /o&ned %# 9a&an Munja" 0 &ere denied regu"arization for the "ast 7 to > #ears. A $ontra$tua" .ero .onda &or'er is !aid %et&een Es. 7???267?? !er onth as against Es. 7?,???, the sa"ar# of a !er anent &or'er !erfor ing the sa e the $asua" &or'ersD sa"ar#. onth. (he anage ent jo%. Es 1? is dedu$ted dai"# for food and tea on"# fro (he $asua" he"!er at the !"ant gets a

=ontra$tua" &or'ers re$ruited not on"# get "o& &ages %ut a"so do not re$eive an# !a# s"i! or $ards. eager Es. +???2+5?? at the end of the and the $ontra$tors are e:ua""# invo"ved in the e-!"oitation of the $ontra$t &or'er. *

 ACTION TA<EN:%
;n 17th A!ri", a tri!artite de ands &ere "ive in eeting &as he"d %et&een .ar#anaDs additiona" "a%our $o issioner, anage ent and &or'er re!resentatives and the# agreed for a sett"e ent, under &hi$h so e et. It &as an i !ortant vi$tor# for the $ontra$t &or'ers, &ho are other&ise for$ed to isera%"e $onditions.

SO+UTION:%
(he agree ent in$"uded 1 5?B hi'e in sa"ar# (&o da#s of $asua" "eave ever# a$$ounts for the $asua" &or'ers. onth and Medi$a" %enefits in a$$ordan$e &ith the $o !an# ru"es, Issuing identit# $ards A(M $ards ;!ening %an'

EFFECT OF T;E STRI<E:%

9rodu$tion at the !"ant, &hi$h a'es a%out 6,??? %i'es a da# at Gurgaon &as !ara"#zed. It "ead to the "oss of Es. 1?? $rore to the $o !an#. It severe"# i !a$ted the industria" environ ent in the state and hen$e it &as a $on$ern for a"" industr#.

SU..ESTIONS:%
Issues %et&een the $o anage ent and &or'ers shou"d %e reso"ved %eforehand. (here shou"d %e a good anage ent. Manage ent shou"d not su!!ress or uni$ation "in' %et&een the &or'er and the

vio"ate the rights of the &or'er.

Re'e e"&e!
I"du!t i#, e,#tio"!0"#u) i4ub0&om (((0!,ide!4# e0"et

1?

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