Shweta Chauhan

Assistant professor
Trade Union shweta.j1525@cgc.ac.
in
Bcom-6th sem
 Content
• Introduction of Trade Union
• Nature of Trade Union
• Objectives of Trade Union
• Functions of Trade Union
• Reasons for joining a Trade Union
• History of Trade Union
• Problems of Trade Unions
• Remedies
• Trade Union Movement in India
 Introduction
A labour union, or trade union, is an organization of workers who have
joined together to achieve goals in areas such as wages and working
conditions.
The union negotiates contracts and conditions with employers, keeping
employee satisfaction high and protecting workers from unsafe or unfair
working conditions.
All the workers working under one particular employer is represented by
the workers union and communication that happens in between the
employer and the workforce generally takes place through the union.
Trade unions are also liable and responsible for maintaining discipline
among the workers, core purpose is to see that proper relations or being
maintained in between management and workers.
 Definition
Section 2(h) of the Trade Unions Act, 1926 has defined a trade
union as:
“Any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between
workmen and employers, or between workmen and
workmen, or between employers and employers, or for
imposing restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more trade
unions.”
This definition talks about three relationships. They are relationship
between the:
Workmen and workmen
Workmen and employers
Employers and employers.
 Nature of Trade Union
▪ Trade union is an association either of employees or employers or
of independent workers.
▪ It is a relatively permanent formation of workers. It is not a
temporary or casual combination of workers.
▪ It is formed to protect and promote all kinds of interests –
economic, political and social-of its members. The dominant
interest with which a union is concerned is, however, economic.
▪ It includes federations of trade unions also.
▪ It achieves its objectives through collective action and group
effort.
▪ Collective strength offers a sort of insurance cover to members
to fight against irrational, arbitrary and illegal actions of
employers. Members can share their feelings, exchange notes and
fight the employer quite effectively whenever he goes off the
track.
 Objective of Trade Unions
• Wages salaries
• Working conditions
• Discipline
• Personnel policies
• Welfare
• Employee-employer relation
• Negotiating machinery
• Safeguarding organizational health and interest of the
industry
 Functions of Trade Unions
Militant Function: One set of activities performed by trade
unions leads to the betterment of the position of their
members in relation to their employment. The aim of such
activities is to ensure adequate wages, secure better
conditions of work and employment, get better treatment
from employers, etc.

•To achieve higher wages and better working conditions

•To raise the status of workers as a part of industry
•To protect labours against victimization and injustice
 Functions of Trade Unions
Fraternal Function: Fraternal Functions
Another set of activities performed by trade unions aims at
rendering help to its members in times of need, and improving
their efficiency. Trade unions try to foster a spirit of
cooperation and promote friendly industrial relations and
diffuse education and culture among their members.
•To take up welfare measures for improving the morale of
workers
•To generate self confidence among workers
•To encourage sincerity and discipline among workers
•To provide opportunities for promotion and growth
•To protect women workers against discrimination
 Functions of Trade Unions
Social Function: Some unions have now started undertaking
and organising welfare activities and also providing variety of
services to their members and sometimes to the community .
1) Welfare activities
2) Education
3) Scheme, and procedure for redressing their grievances.
4) Publication of periodicals,.
5) Research

Political functions: Modern trade unions also take up political

activities to achieve their objectives. Such activities may be
related to the formation of a political party or those reflecting
an attempt to seek influence on public policy relating to
matters connected with the interests of working class.
 Reasons for joining Trade Unions

❖Greater Bargaining Power

❖Minimize Discrimination
❖Sense of Security
❖Sense of Participation
❖Sense of Belongingness
❖Platform for self-expression
❖Betterment of relationships
 Problems of Trade Unions

• Lack of Balanced Growth

• Low Membership
• Poor financial Position
• Political Control
• Multiplicity of Unions
• Inter-Union Rivalry
• Lack of able Leaders
• Lack of Recognition
• Opposition from Employers
• Indifferent Attitude of the Members
 Measures to Strengthen the Trade
Union Movement
• Maintaining Unity
• Free from Political influence
• Workers Education
• Adequacy of Funds
• Welfare Activities for Workers
 History of Trade Union
• The predominance of employer-employee relation
is associated with rise of modern industry and large
production units .The great transformation which
announced in the industrial society began in Great
Britain in the latter half of the 18th century.
• During the 19th century , the movement spread to
a dozen of the other countries. Accelerated
industrial development began in around 1830 in
France, Belgium and United States, around 1850 in
Germany, around 1870 in Sweden and Japan and
around 1890 in Canada and Russia.
 Trade Union Movement in India
• The entire period of the growth of trade unionism
up till now is conveniently divided into three
periods :
1. First period 1875-1918
2. Second period 1918-1947
3. Third period 1947 till date
 The first period 1875-1918
• The first period of trade unions in India started
from 1875 and lasted up to first world war. During
the period the trade union movement was
essentially humanitarian. Some friendly societies
were formed to look in to the welfare of workers.
These unions were sporadic in nature.
• First Indian trade union, Bombay Mill Hands
Association was formed in 1890, with an immediate
aim of agitation for a revision of first Indian
Factories Act 1881.
 Cont....
• The first employees organization in IR is formed in
1897 under the name of “Amalgamated Society of
Railway Servants of India and Burma.
• The Printers Union Calcutta and Bombay postal
union were formed in 1905 and 1907 respectively.
• The kamgar hit vardhak shbha was setup in 1909.
• Active leaders in this period were S.S.Bengali and
N.M. Lokhande who fought for workers.
• Panikkar charcterizes this period as “the social
welfare period of our early trade union
movement”.
 Second period 1918-1947
• This period actually marked the beginning and growth of
organized and continuous trade unions.
• Madras became the nucleolus of organized the labour
activity .
• B.P. Vadiya founded the Madras Labour Union 1919.
• There was significant spread of trade unionism in 1920.
• Trade unions like Ahemdabad textile workers union , N.W
Railway employees union , Indian colliery employees union,
the jamshedpur labour association ,the Bombay port trust
employees union, and the E.B. Railway Indian employees
association were formed .
• By 1924 there were 1671 trade union in India.
• The All India trade union congress was formed in 1920.
• The period between 1924 and 1935 is characterized as the
period of left wing trade unionism .
 TRADE UNION ACT 1926
• Buckinghan mill case of 1920
• In march 1921 SRI N.M. JOSHI the Gen. sec. of AITUC successfully
moved resolution in the central legislative assembly .
• On a resolution being passed by central legislative assembly in
march 1924 the Indian trade union was introduced in the central
legislative assembly.
• The act received its assent on 25th march 1926 .
• It came into force on 1st June 1927.As “the Indian trade unions
act 1926 (16 of 1926). By sec.3 of the Indian Trade Unions
(Amendment) Act 1964 the word “Indian” has been omitted and
now it stands as The Trade Unions Act, 1926.
• To make regulation for the purpose of carrying into effect the
provisions of this act the government passed “The Central Trade
Union Regulations, 1938”.
 Growth of trade union after
Independence
• In the period 1918-47 the ideology inspiring trade
union was nationalistic. But after independence,
trade union developed into an effective instrument
for protecting and safeguarding the interest of the
labourers.
Factors affecting the progress of trade unionism are
as follows: -
1- constant inflow of international influence.
2-the pressure of trade union politics
3-government’s industrial policy
4-rapid industrial growth
 Trade Union In India
• All India Trade Union Congress (AITUC)
• Bharatiya Mazdoor Sangh (BMS)
• Centre of Indian Trade Unions (CITU)
• Hind Mazdoor Kisan Panchayat (HMKP)
• Hind Mazdoor Sabha (HMS)
• Indian Federation of Free Trade Unions (IFFTU)
• Indian National Trade Union Congress (INTUC)
• National Front of Indian Trade Unions (NFITU)
• National Labor Organization (NLO)
• Trade Unions Co-ordination Centre (TUCC)
• United Trade Union Congress (UTUC)
• United Trade Union Congress - Lenin Sarani (UTUC - LS)
 Next Topic
• Quality Circles
• History of QC
• Organization structure of QC
• Benefits and Problems of QC.