BACHELOR OF TECHNOLOGY IN MECHANICAL ENGINEERING

LAW FOR ENGINEERS

GROUP 2 ASSIGNMENT

TRADE UNION ACT

NAME REGISTRATION NO SIGN

MICHAEL OMONDI BTME/039J/2016
GURA NORBERT BTME/034J/2016
TEDDY RAGULLA BTME/038J/2016
CINDY ASYAGO BTME/032J/2016
TRADE UNIONS

Definitions

The term ‘trade union’ has been defined in a number of ways by different persons
and entities as described below:

1. Sidney and Beatrice Webb

A trade union is a continuous association of wage earners for the purpose of

maintaining and improving the conditions of their working lives.

2. Lester

A trade union is an association of employees designed primarily to maintain or

improve the condition of employment of its members.

3. Indian Trade Unions Act, 1926

A trade union is any combination, whether temporary or permanent, formed

primarily for the purpose of regulating the relations between workers and
employers or between workers or between employers for imposing restrictive
conditions on the conduct of any trade or business and includes the federations
of two or more trade unions.

4. G.D.H Cole

A trade union means an association of workers in one or more occupations, an

association carried on mainly for the purpose of protecting and advancing the
member’s economic interests in connection with their daily work.

5. Duhaime’s Law Dictionary

A trade union is a defined group of employees formed for the purpose of

representing those employees with the employer as to the term of a collective
contract of employment.
 6. Labour Relations Act

A trade union is an association of employees whose principal purpose is to

regulate relations between employees and employers, including any employers’
organization.

These definitions indicate that the:

 Trade union is an association, either of employees or employers or of

independent workers
 The association of workers engaged in securing certain economic and social
benefits to members.
 It includes a federation of trade unions also
 The character of trade union is not static in nature; it is dynamic because it
has been constantly changing.
 Its origin and growth has been influenced by a number of ideologies.

Generally, we concluded that a trade union is an association of workers forming a legal unit,
usually called a ‘bargaining unit’, which acts as a bargaining agent and legal representative for a unit of
employees in all matters of law or right arising from or in the administration of a collective agreement.

FUNCTIONS

1. Collective bargaining with the management for securing better working

environment for the workers/employees.
2. Take collective action to enforce the terms of collective bargaining as well
as developing cooperation with employers.
3. Raise new demands on behalf of its members.
4. To negotiate with management on certain matters like hours of work,
fringe benefits, wages, health and medical facilities and other welfare
schemes.
5. Discuss members' concerns with employers.
6. Helping the management in redressal of grievances of workers at
appropriate level.
7. Providing legal assistance to workers in connection with disputes regarding
work and payment of wages.
8. Providing security to the workers by protecting them against retrenchment
and layoffs as well as keeping check over the hiring and firing of workers.
9. To regulate terms and conditions of employment.
 10.To replace managerial dictatorship by worker’s democracy.
11.To ensure that workers get as per rules provident fund, pension and other
benefits.
12.Providing certain consumer benefits such as discounted insurance.
13.To arouse public opinion in favor of labour/workers.

ADVANTAGES TO THE EMPLOYEE

a) A worker feels very weak when he is alone. Union provides him an

opportunity to achieve his objectives with the support of his fellow
colleagues.
b) Union protects the economic interest of the workers and ensure a
reasonable wage rates and wage plans for them.
c) Union helps the workers in getting certain amenities for them in addition to
higher wages.
d) Union also provides in certain cases cash assistance at the time of sickness
or some other emergencies
e) Union organize negotiation between workers and management and are
instruments for settlement of disputes.
f) Trade union imparts self - confidence to the workers as they feel that they
are an important part of the organization.
g) It provides for promotion and training and also helps the workers to go to
higher positions.
h) It also ensures stable employment for the workers and opposes the motive
of management to replace the workers by automatic machines.
i) Workers get an opportunity to take part in the management and oppose
any decision which adversely affects them.

ADVANTAGES TO THE EMPLOYER

a) Stable Workforce-Employers with unionized workers have the assurance of

a stable and well-trained workforce. Unions often have their own programs
to train employees in their trades, relieving employers from the cost of
training inexperienced workers. Well-trained employees create better and
safer work conditions. In return, employers have fewer days lost because of
work-related injuries or illnesses
b) Time is saved in pay negotiations when dealing with a union as compared
to dealing with individuals. This is particularly relevant in respect of
 super-visors and managers where it helps to promote equitable schemes of
remu-neration and to avoid inequalities and possible consequent
resentment.
c) Where there is mutual respect that is, where morale is good employees can
more easily be given a picture of the organization’s problems and thus
obtain a better understanding of them through meetings with shop
stewards and local union officials. Improved industrial relations should thus
result.
d) Workers feel the strength of association and thus are able to have, through
union representatives, constructive discussions on procedures relating to
working practices, disciplinary measures and the like. Where relations are
good, worker dissidents are often contained by the majority of workers.
e) Cooperation with trade unions may help an organization to meet more
easily the obligations placed on employers by government regulations and
statutes.
f) Changes in working practices and necessary redeployment of workers can
be more easily effected if implemented with union co-operation. Where
redundancies are inevitable union cooperation can be particularly helpful in
obtaining fair compensation for those affected.
g) Joint consultation is made possible and easy.
h) Predictable Costs Labor contracts give the employer the ability to more
accurately predict future operation costs for a fixed time period. This makes
it much easier for the employer to control costs, develop product pricing
strategies, plan for expansion and invest in new product development.
Employers will have less employee turnover and will have union assurance
that more workers will be available if needed. Negotiating a contract with
one party, the union, is much easier than having to negotiate a wage and
job description with each individual employee.

DISADVANTAGES

a) Employee Initiative is Stifled Union rules base raises and promotions on

seniority, not performance. This kind of environment discourages employee
creativity and individuality. Therefore, the employer is deprived of
improvements in productivity because the employee has no incentive to do
a better job. He gets nothing for doing better. Employers cannot always
know about adverse conditions in the workplace and must depend on their
employees to report these problems to management and make suggestions
 for improvement. Without feedback from employees, management is often
not even aware of problems in the workplace and is, therefore, unable to
find solutions.
b) Delay: Managerial decisions may be delayed because of the lengthy
discus-sions necessary at plant and local union level for these decisions to
be implemented. Effective joint consultation can help minimize this.
c) Perspective practices: A powerful union, particularly where there is a closed
shop (where all workers are required to be union members), can
perpetuate and intensify restrictive practices unnecessarily. An example
would be the insistence on a qualified electrician to change the plug on a
simple machine such as an electric typewriter. This puts up costs and
causes delays which create further costs.
d) Disputes: Where more than one union operates on a site delays and
disrup-tions may be caused by inter-union disputes. Unreasonable
demands:
e) Unreasonable demands may be made on management or extra pressure
created if a union is powerful, to the ultimate detriment of the organization
and even the industry. There is no doubt that trade unions can contribute
positively in all areas where they operate, provided their power is used
properly and with discretion.
f) Lost productivity: If unions go on strike and work unproductively it can lead
to lost sales and output. Therefore, their company may go out of business
and be unable to employ workers at all.
g) Wage inflation: If unions become too powerful they can bargain for higher
wages, above the rate of inflation. If this occurs, it may contribute to
general inflation.
h) Effect on non – members: Trade unions only consider the need of its
members. However, when unions fight for a new deal with an employer
and win, the benefits are given to everyone regardless of whether they are
union member’s or not. Non - members benefit without any cost.

RIGHTS OF TRADE UNIONS

 The right to access the workplace to talk to union members.

 The right to stop orders.
 The right to membership stop orders.
 The right to leave for trade union officials.
 The right to access to information.
  The right to appoint shop stewards.

NOTE: Employees have the right to unionize, to join together to advance their
interests as employees. It is unlawful for an employer to interfere with, restrain,
or coerce employees in the exercise of their rights. Nevertheless, if a trade union
wants to negotiate with an employer on pay and working conditions on behalf of
a group of workers, it needs to be recognized by that employer. Usually, an
employer recognizes the union voluntarily, without recourse to any legal
procedures.

Other areas of interest

Formation and registration of trade unions.

How to join and become a member of a trade union.

Characteristics of trade unions.

Persons who are legally allowed to form and belong to trade unions.

Various types and organization of trade unions.