Theories of trade unions

Revolutionary theory

Propounded by Marx and Hegels

According to it instruments of production must belong to

workers.

TU are preparations for a revolution in which capitalists must be

destroyed.

Workers must take over industry and government.

But events in USSR could not lend support to the theory

Industrial Democracy theory

Put forth by Sidney and Beatrice Webb.

It suggests democracy in industry as in government.
It suggests that through Unions, the workers protect themselves
from the power and influence of owners.
All rules and regulations are developed in order to protect the
rights of the Labour.

Business theory

Put forth by Samuel Gompers

Emphasised that the primary objective of the unions was to
protect the economic interest of the workers.
Gompers viewed unions as the labor's collective voice in the
industrial world. He wanted to partner with business to promote
higher wages (and higher profits).
Gompers viewed unions as the labor component of a business
operation, neither superior nor inferior to the management
component, but just as essential.
This theory opposes the revolutionary theory.

Socio-Psychological theory

According to this theory, workers join union to meet their sociopsychological needs like physiological, security, companionship etc.

Change theory
As per Selig Perlman, the objectives of labour movement changes from
time to time.

Though he did emphasize upon union being based upon scarcity

consciousness.
Hence no simple theory can explain union and labour relations.
Perlman explains the state of labor movement according to three
factors:
The resistance power of capitalism,
The role and influence of the intellectual and
The maturity of the home grown trade union movement.