Concept TU

Industrial Relations 1
TRADE UNION
Trade Unions have become an integral and powerful factor in the contemporary system
of producing and distributing goods and services. They are exercising a strong influence
on the methods of production of goods and services, their distribution, the allocation of
economic resources, the volume of employment, the character of rights and privileges,
politics and policies of governments, the status and standing of large messes of the
population and the very nature of economic social organizations.
Under the conditions, their role has evoked deep and wide controversies. For a
developing economy such as ours, trade unions and their policies are of special
significance.
DEFINITION OF TRADE UNION
Trade Union means any combination of workmen or employers formed primarily

for the purpose of regulating the relations between workmen and employers or
workmen and workmen or employers and employers, or for imposing restrictive
conditions on the conduct of any union or business and includes a federation of
two or more trade unions.
NATURE
Of all the definitions of a trade union, one by Webbs is the most outstanding and oft
quoted. The Webbs say, “A Trade Union, as we understand the term, is a continuous
association of wage earners for the purpose of maintaining or improving the conditions
of their working lives”.
OBJECTIVES
This objectives of the trade union consists of:

 Improved economic status
 Shorter working hours
 Betterment of working and living conditions
 Income security e.g. pension, provident fund, obtaining job security
 Better health, safety and welfare standards
 Respect for the personality of the workers – humane treatment from
supervisors and others
 A greater voice in industrial administration and management by the
establishment of industrial democracy
 Improving political status etc.
Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com
Trade Union: Nature, Objectives, Types and Impact

DIFFERENT TYPES TRADE UNIONS
There are several CATEGORIES of trade unions. Different categories of trade unions are
discussed bellow:
BASIC UNIONS
These types of trade unions are at bottom level of the trade union body. These unions
are very closely related with the workers. The union officials are elected through the
direct voting of these workers.
Basic unions are of different types and nature, as discussed bellow:
GENERAL UNIONS
They are most liberal in their conditions of eligibility for membership as they
accept into membership all workers irrespective of crafts, industries to which
they belong.
INDUSTRIAL UNIONS
It accepts into membership of all workers working in a particular industry.
CRAFT UNIONS
It is organized on the basis of special type of work or occupations and here

workers belonging to one or other clearly defined skilled occupation only can be
members irrespective of their employment in different establishments.
BLUE-COLLAR UNIONS
These unions are formed with the workers, who are directly engaged in
production. These unions play a vital role in worker movements.
WHITE-COLLAR UNIONS
White-collar unions are formed with officials, i.e. staff, employed in the
industry. These unions have no direct relation with production systems.
MIXED UNIONS
Mixed unions are formed with both officials and workers, employed in an
organization. The member of such union is very high in number.
C.B.A. UNIONS
The members of different trade unions elect such unions through direct voting
for the purpose of bargaining with the management.

INDUSTRIAL FEDERATION
Such federations are formed with several basic unions of a specific industry. Bangladesh
Garments Workers’ Federation, for example.
NATIONAL FEDERATION
Such federation is on the top of the trade union structure. National federation is the
coordinator and controller of all the basic unions or industrial federations all over the
country.
Without these types, we find more three categories of trade unions; such as
INTERNATIONAL UNIONS
These types of trade unions are formed with national unions or national
federations of different countries. For example: World Federation of Trade
Union.
REVOLUTIONARY TRADE UNIONS
These unions emphasis on the development of new theories to get relief from
the social and economical problems that exist in the present society.
REFORMIST TRADE UNIONS
These trade unions suggest and emphasis on the reformation and correction of
different issues.

IMPACT OF THE UNION UPON MANAGEMENT
The effects of the union upon the management are as under:
RESTRICTION UPON MANAGEMENT’S FREEDOM OF ACTION
Unilateral action and individual dealings with workers over wage adjustments, hours
and the conditions of work are no longer possible. The first-line supervisor must be sure
he does not violate the labour agreement in handling his employees. Management is
closely bound by the conditions set forth in the Collective Agreement.
UNION PRESSURE FOR UNIFORMITY OF TREATMENT
Another effect of the union upon management is its insistence upon uniformity of
treatment of all employees. For example, unions usually advocate that all employees
who are assigned to the same job should receive exactly the same rate of pay.
IMPROVED PERSONNEL POLICIES AND PRACTICES
On the other hand, it is fair to state that the presence of the union encourages
management to become fully conscious of employee wants and needs. Any omission or
fault in a company’s policy and its manner of carrying out the policy will tend to be
quickly noted by the union officials. Thus we find that many organizations have found
it advantageous to institute supervisory and executive training program that contain
a strong emphasis upon sound personnel policies, labour relations and human relations.
In fact, some companies have deliberately done “all out” to provide for their
employees’ needs and wants to foster social groupings around company-sponsored
recreational activities and to maintain high morale.
ONE SPOKESMAN FOR THE EMPLOYEES
In a sense, the presence of the union simplified management’s problems in dealing with
employees because it can look to the elected union leaders as spokesman for the
employees.
CENTRALIZATION OF LABOUR RELATIONS’ DECISION MAKING
Because of the critical importance of many labour relations decisions, top executives
have a tendency to take authority in labour matters away from lower ranks of
supervision and centralize this in the industrial relations department. The power to
discipline is sometimes taken away from the supervisor when there is a union.

UNION SECURITY
For functioning perfectly, a trade union must be secured at its position. Some measures
as follows, can be taken to secure a trade union.
1. Membership
The main strength of a union is the number of its members. a trade union must
maintain at least 30% of the total workers in an establishment to ensure its
security.
2. Subscription
The major source of fund of a trade union is the subscriptions paid by its
members. So, to secure a trade union this source must be maintained.
3. Empowered by the Employer
The employer can also empower a trade union to ensure its security. For example,
if an employer allows the voice of trade unions in hiring or firing and transferring
the employees/workers, the union becomes more secured.
4. Compelling Factors
If there are some compelling factors, such that workers have to join trade unions,
then the unions also are secure.
5. Safeguarding the Members’ Interests
If the trade unions fail to safeguard the interests of the workers, then general
worker shall loss their confidence on the unions. Therefore, to secure a trade
union, the union should be able to safeguard such interests.
REASONS WHY WORKERS DO NOT JOIN TRADE UNIONS
 Lack of Compelling Reasons
 Identify of Trade Union with Management

 Mistrust Unions
 Corruption in Unions

REASONS WHY WORKERS JOIN TRADE UNIONS
 Greater Bargaining Power

 economic
 non-economic
 Steady Employment
 job security
 Rationalization of Personnel Policies

 ensuring consistent treatment
 arising from bad personal experience
 Protection from Economic Hazards

 Reorganization and Participation
 Compulsion
 peer/social/political pressure
 General Mistrust of Management

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Industrial Relations 1

DEFINITION OF TRADE UNION

Trade Union means any combination of workmen or employers formed primarily

This objectives of the trade union consists of:

Trade Union: Nature, Objectives, Types and Impact

DIFFERENT TYPES TRADE UNIONS

Basic unions are of different types and nature, as discussed bellow:

It is organized on the basis of special type of work or occupations and here

Trade Union: Nature, Objectives, Types and Impact

REVOLUTIONARY TRADE UNIONS

REFORMIST TRADE UNIONS

Trade Union: Nature, Objectives, Types and Impact

IMPACT OF THE UNION UPON MANAGEMENT

The effects of the union upon the management are as under:

RESTRICTION UPON MANAGEMENT’S FREEDOM OF ACTION

UNION PRESSURE FOR UNIFORMITY OF TREATMENT

IMPROVED PERSONNEL POLICIES AND PRACTICES

ONE SPOKESMAN FOR THE EMPLOYEES

CENTRALIZATION OF LABOUR RELATIONS’ DECISION MAKING

Trade Union: Nature, Objectives, Types and Impact

3. Empowered by the Employer

5. Safeguarding the Members’ Interests

REASONS WHY WORKERS DO NOT JOIN TRADE UNIONS

 Lack of Compelling Reasons

 Identify of Trade Union with Management

Trade Union: Nature, Objectives, Types and Impact

REASONS WHY WORKERS JOIN TRADE UNIONS

 Greater Bargaining Power

 Rationalization of Personnel Policies

 Protection from Economic Hazards

 General Mistrust of Management

Trade Union: Nature, Objectives, Types and Impact

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