HUMAN RESOURCE MANAGEMENT

Group assignment
Section- N8/12
Name ID
1. Samuel Adugna UU80824R
2. Yohannes Bekele UU80820R
3. Kalkidan Sinishaw UU80744R
4. Dagmawi Alemayehu UU80876R
5. Abenezer Gebremedhin UU80706R

Submitted to: Inst. Bezawork yimer

Submission date: April 5, 2023

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Table of Contents
1.1 definition of trade union........................................................................................................................3
1.2 History and Organization of Union........................................................................................................3
1.3 Formation of trade union in Ethiopia....................................................................................................4
1.4 The Unionization Process......................................................................................................................5
1.5 OBJECTIVES OF TRADE UNIONS.............................................................................................................5
1.6 Functions of Trade Unions.....................................................................................................................7
1.7 importance of trade union.....................................................................................................................8
1.8 Reasons for Joining Unions....................................................................................................................8
1.9 Major Acts Regarding Unions................................................................................................................9
1.10 prevalence of Union..........................................................................................................................10
1.11 METHODS OF TRADE UNIONS...........................................................................................................10
1.12 CLASSIFICATION OF TRADE UNIONS..................................................................................................12
1.13 Strategies Companies Use to Avoid Unionization..............................................................................15
1.14 THEORIES OF TRADE UNIONISM........................................................................................................15

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 Labor/trade union

1.1 definition of trade union

According to Webbs, a trade union is a continuous association of wage-earners for the purpose
of maintaining and improving the conditions of their working lives.

Under the Trade Union Act of 1926, the term is defined as any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations between
workers and employers or for imposing restrictive conditions on any trade or business and
includes any federation of two or more unions. Let us examine the definition in parts;

 Trade union is an association either of employees or employers or of independent

workers.
 It is relatively a permanent formation of workers. It is not a. temporary or casual
combination of workers.
 It is formed for securing certain economic (like better wages, better working and living
conditions), and social (such as educational, recreational, medical, respect for individual)
benefits to members. 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.

A more recent and non-legislative definition of a union is: “An organisation of workers acting
collectively, who seek to protect and promote their mutual interests through collective
bargaining”.

Trade unions are formed to protect and promote the interests of their members.

1.2 History and Organization of Union

Trade unions were developed in Europe during the Industrial Revolution, when employees had
little skill and thus the entirety of power was shifted to the employer. When this power shifted,
many employees were treated unfairly and underpaid.

In the United States, unionization increased with the building of railroads in the late 1860s.
Wages in the railroad industry were low and the threat of injury or death was high, as was the
case in many manufacturing facilities with little or no safety laws and regulations in place. As a
result, the Bortherhood of Locomotive Engineers and several other brotherhoods (focused on

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specific tasks only, such as conductors and brakemen) were formed to protect workers’ rights,
although many workers were fired because of their membership.

The first local unions in the United States were formed in the eighteenth century, in the form of
the National Labor Union (NLU). This National Labor Union paved the way for other labor
organizations. The goal of the NLU was to form a national labor federation that could lobby
government for labor reforms on behalf of the labor organizations. Its main focus was to limit
the workday to eight hours. While the NLU garnered many supporters, it excluded Chinese
workers and only made some attempts to defend the rights of African-Americans and female
workers. The NLU can be credited with the eight-hour workday, which was passed in 1862.
Because of a focus on government reform rather than collective bargaining, many workers
joined the Knights of Labor in the 1880s.

The Knights of Labor started as a fraternal organization, and when the NLU dissolved, the
Knights grew in popularity as the labor union of choice. The Knights promoted the social and
cultural spirit of the worker better than the NLU had. It originally grew as a labor union for coal
miners but also covered several other types of industries. The Knights of Labor initiated strikes
that were successful in increasing pay and benefits. When this occurred, membership
increased.

After only a few years, though, membership declined because of unsuccessful strikes, which
were a result of a too autocratic structure, lack of organization, and poor management.
Disagreements between members within the organization also caused its demise. The
American Federation of Labor (AFL) was formed in 1886, mostly by people who wanted to see a
change from the Knights of Labor. The focus was on higher wages and job security. Infighting
among union members was minimized, creating a strong organization that still exists today. In
the 1930s, the Congress of Industrial Organizations (CIO) was formed as a result of political
differences in the AFL. In 1955, the two unions joined together to form the AFL-CIO. Currently,
the AFL-CIO is the largest federation of unions in the United States and is made up of fifty-six
national and international unions.

1.3 Formation of trade union in Ethiopia

Trade union is established in an undertaking where the number of workers is ten or
more and according to the article118 of the Ethiopian Labor Proclamation 377/2003, a trade
union or employers association should be registered first by the Ministry then shall have legal
personality which enables it to enter into contract, sue and be sued, to own, use and transfer
property, to represent members at any level, and to perform any legal act necessary for the
attainment of its purposes.

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The oldest union in Ethiopia is the Ethio-Djibouti railway workers union, which was formerly
known as the Franco-Ethiopian railway Workers’ Union.

1.4 The Unionization Process

There are one of two ways in which a unionization process can begin. First, the union may
contact several employees and discuss the possibility of a union, or employees may contact a
union on their own. The union will then help employees gather signatures to show that the
employees want to be part of a union. To hold an election, the union must show signatures
from over 30 percent of the employees of the organization.

Once the signatures are gathered, the National Labor Relations Board is petitioned to move
forward with a secret-ballot election. An alternative to the secret-ballot election is the card
check method, in which the union organizer provides the company with authorization cards
signed by a simple majority (half plus one). The employer can accept the cards as proof that the
employees desire a union in their organization. The NLRB then certifies the union as the
employees’ collective bargaining representative.

If the organization does not accept the card check method as authorization for a union, the
second option is via a secret ballot. The NLRB is responsible for election logistics and counting
of ballots. Observers from all parties can be present during the counting 369 of votes. Once
votes are counted, a decision on unionization occurs, and at that time, the collective bargaining
process begins.

1.5 OBJECTIVES OF TRADE UNIONS

The primary functions of trade unions are to secure the interests of their workers and
conditions of their employment by protecting the interests of workers against discrimination
and unfair labor practices.

Unions concentrate their attention to achieve the following objectives: -

Wages and Salaries: The subject which shows the major attention of the trade unions is wages
and salaries. Of course, this item may be related to policy matters. However, differences may
arise in the process of their implementation. In the case of unorganised sector, the trade union
plays a instrumental role in bargaining the pay scales.

Working conditions: Trade unions with a view to protect the health of the workers demand the
management to provide all the basic amenities such as lighting and ventilation, sanitation, rest
rooms, safety equipment while discharging hazardous duties, drinking water, refreshment,

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minimum working hours, leave and rest, holidays with pay, job satisfaction, social security
benefits and other welfare measures.

Discipline: Trade unions not only conduct negotiations in respect of the items with which their
working conditions may be improved but also safeguard the workers from the controls of
management whenever workers become the victims of management’s unilateral acts and
disciplinary policies. This victimisation results in to various forms such as penal transfers,
suspensions, dismissals, etc. In such a situation, the worker who is separated is left in a helpless
condition may approach the trade union. Ultimately, the problem may be brought to the notice
of the management by the trade union and it describes about the injustice meted out to an
individual worker and fights the management for justice. Thus, the aggrieved worker may be
protected by the trade union.

Personnel policies: Trade unions may fight against inappropriate implementation of personnel
policies in respect of recruitment, selection, promotions, transfers, training, etc.

Welfare: As stated earlier, trade unions are destined for the welfare of workers. Trade union
works as a guide, consultant and cooperates in overcoming the personal problems of the
workers. It may bring to the knowledge of the management through collective bargaining
meetings the difficulties of workers in respect to sanitation, hospitals, quarters, schools and
colleges for their children’s cultural and social problems.

Employee-employer relations: Harmonious relations between the employees and employer are
essential prerequisite for industrial peace. A trade union always strives for achieving this
objective. However, the rigid bureaucratic attitude and unilateral thinking of the management
may lead to conflicts in the organisation which, ultimately, disrupt the relations between the
workers and the management. Trade union, in the capacity of representative of all the workers,
may carry out continuous negotiations with the management with a view to promote industrial
peace.

Negotiating machinery: Negotiations include the proposals made by one party and the
counterproposals of the other. This process streches until the parties reach an agreement.
Thus, negotiations are based on the principle of ‘give and take’ principle. Trade union, being a
party for negotiations, protects the interests of workers through collective bargaining. Thus, the
trade union works as the negotiating machinery.

Safeguarding organisational health and the interest of the industry: Organisational health can
be ascertained by methods evolved for grievance redressal and techniques adopted to reduce
the rate of absenteeism and labour turnover and to improve the employee relations. Trade
unions through their effective working may achieve employee satisfaction. Thus, trade unions
help in reducing the rate of absenteeism, labour turnover and developing systematic grievance

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settlement procedures leading to harmonious industrial relations. Trade unions can thus,
contribute to the developments in level of production, productivity and discipline thereby
cultivating good quality of work-life.

1.6 Functions of Trade Unions

Militant or Protective or Intra-mutual functions: These functions include defending the
workers’ interests, i.e., hike in wages, providing more benefits, job security, protect labors against
victimization and injustice etc., through the means of collective bargaining and direct action such
as strikes, gheraos, etc.

Fraternal or extramural functions: These functions include ensuring the financial and non-
financial assistance available to workers during the periods of strikes and lock-outs, extension
of medical facilities during slackness and casualties, provision of education, recreation,
recreational and housing facilities, provision of social and religious benefits, etc.

Political functions: These functions include affiliating the union to a political party, assisting the
political party in enrolling members, amassing donations, seeking the help of political parties
during the periods of strikes and lock-outs.

Social functions: These functions include getting involved in social service activities, discharging
social responsibilities through various sections of the society like educating the customers etc.

At all this are the main functions of a trade union in general.

 Bargaining for higher wages and for better working conditions for its members
 Providing management suggestions on personnel policies and practices.
 Helping workers in getting the control of industry.
 Protecting members against discrimination and unfair justice of employers.
 Helping workers in all matters which results in workers interests.
 To raise the status of workers as a part of industry
 To protect labors against victimization and injustice
 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

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1.7 importance of trade union
Trade unions help in accelerated pace of economic development in many ways as follows:

 By helping in the recruitment and selection of workers.

 By inculcating discipline among the workforce
 By enabling settlement of industrial disputes in a rational manner
 By helping social adjustments. Workers have to adjust themselves to the new working
conditions, the new rules and policies. Workers coming from different backgrounds may
become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
 Maintain Social responsibilities like:
 promoting and maintaining national integration by reducing the number
of industrial disputes
 incorporating a sense of corporate social responsibility in workers
 achieving industrial peace

1.8 Reasons for Joining Unions

The reasons for organizing a union may be immediate and specific. The general purposes for
joining union are as follows:

1. Greater Bargaining Power: As an individual employee a person has very little bargaining
power. He or she cannot bargain with the employer alone. The better option for him is to join
union and be in a safer position. The union is a powerful tool which compels employer to accept
the demand posed by the workers for good working environment and better employment
conditions.

2. Minimize Discrimination: There are many instances where an employer may discriminate
their employees on the basis of caste, religion and sex. A trade union can force the
management not to discriminate but to treat every worker equally. The labor decisions of the
management are monitored very closely which has the positive effect in minimizing
discrimination.

3. Sense of Security: Workers join unions mainly because of security purpose. The employees
belief that unions can secure protection from unemployment, accidents and ill health. Unions
help them in getting the retirement benefits of workers and force management to invest in the
welfare of the employees.

Other reasons for joining trade unions can be:

 Trade union carries out various researches for new campaigns and policies especially for
government policy and for members.

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  Trade union membership helps safeguard its members job security, as union is there to
campaign on behalf of its members.
 Trade union ensures that health and safety regulation exist in an organization. All
workers in a working place should have access to a safe working environment.
 Sense of Participation
 Sense of Belongingness
 Platform for self-expression
 Betterment of relationships

1.9 Major Acts Regarding Unions

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1.10 prevalence of Union
The statistics show a noteworthy decline in unionization. There are possible reasons for this
trend, and we consider four of these.

First, in decades past, unions often intimidated workers to become members even if they did
not care to do so. Unions used such tactics to boost their membership, thus, their power to
negotiate with employers over terms of employment. Quite simply, it is more difficult to ignore
the voices of many rather than the few. Over time, legislation outlawed unions’ use of
intimidation, after which the prevalence of unions began to decline.

Second, historically, unions provided a voice to protect the rights of disadvantaged groups,
including women, older workers, and racial minorities. However, starting in the 1960s, antidis-
crimination laws such as Title VII of the Civil Rights Act instituted protections. The array of
legislation lessened the role of unions.

Third, Globalization is also a challenge in labor organizations today. As more and more goods
and services are produced overseas, unions lose not only membership but union values in the
stronghold of worker culture. As globalization has increased, unions have continued to demand
more governmental control but have been only somewhat successful in these attempts. For
example, free trade agreements such as the North American Free Trade Agreement (NAFTA)
have made it easier and more lucrative for companies to manufacture goods overseas. This is
discussed in International HRM (Page 421). For example, La-Z-Boy and Whirlpool closed
production facilities in Dayton and Cleveland, Ohio, and built new factories in Mexico to take
advantage of cheaper labor and less stringent environmental standards. Globalization creates
options for companies to produce goods wherever they think is best to produce them. As a
result, unions are fighting the globalization trend to try and keep jobs in the United States.

Fourth, large companies such as Boeing, which have highly unionized workforces, are
establishing new facilities in states where unionization rates are low. German automobile
manufacturer Volkswagen built a state-of-the-art factory in Tennessee, which possess right-to-
work laws. right-to-work laws prohibit management and unions from entering into agreements
requiring union membership as a condition of employment.

1.11 METHODS OF TRADE UNIONS

How do trade unions seek to achieve their goals?

Trade union developed organizations for mutual help and protection. The classic description of
trade union methods by the Webbs as consisting of

(i) mutual insurance,

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 (ii) collective bargaining and
(iii) legal enactment,

Mutual insurance

Trade unions have spent a part of their income providing insurance and other welfare benefits
for improving the conditions of their members, and promoting goodwill among them. Trade
unions in Great Britain provided insurance to their members against such risks as sickness,
accident, disablement, old age, death, as also against unemployment. However, the nature and
scale of benefits provided varied considerably, depending on the financial position of trade
unions and the extent of incidence of particular risks.

The nature and extent of the benefits provided has gradually expanded during the course of
years. The effectiveness of the method is directly dependent upon the income of trade unions.
Where trade unions are rich, they are in a better position to provide insurance or other benefits
to their members. On the other hand, it is futile to expect much from the poor trade unions
which are all the time worried about their finances. The funds for mutual insurance may come
from membership subscriptions, special levies and donations.

In general, it was the early trade unions, particularly the craft ones, that emphasised mutual
insurance for improving the lot of their members. At that stage, they were unable to adopt the
method of collective bargaining owing to the legal handicaps and openly hostile attitude of the
employers. At the same time, they were not in a position to engage in political activities for
securing protective labour legislation or other measures at the instance of the state

Collective bargaining

Under this method, trade union representatives bargain with the employers over the terms and
conditions of employment and enter into agreement with them. The agreement thus arrived at
is known as collective agreement. The method of collective bargaining came to be emphasized
after trade unions secured recognition under the law and became free from the legal
impediments.

A method adopted by trade unions in which the unions’ representatives or members

collectively bargain with employer(s) for improving the terms and conditions of employment of
their members. The word ‘collective’ applies to workers as a group.

A wide variety of subjects has come to be included in collective agreements. The most
frequently covered items include: wages, hours of work, physical working conditions,
apprenticeship, incentive payments, welfare amenities, promotions, bonuses, gratuity,
superannuation and economic benefit plans. In general, trade unions and employers engage in

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collective bargaining voluntarily. However, in some cases, they are under legal obligation to do
so.

Collective bargaining involves mutual negotiations and failure of such negotiations may lead to
the use of coercive measures such as strike, picketing, boycott, lock-out, and so on. Many, who
support collective bargaining as a method of settling industrial disputes under the impression
that this ensures their peaceful and prompt settlement, forget that settlement of disputes by
free mutual discussions and collective bargaining includes the right of the parties to resort to
economic pressure if necessary.

Political Action or Legal Enactment

The main features of trade unions’ political action are: exerting pressure for protective or other
pro-labour legislation and welfare amenities at the instance of the state, setting up of labour
parties or developing allegiance to one political party or the other, and securing control over
industry. Unlike mutual insurance and collective bargaining, which are designed to benefit only
the trade union members or employees of a particular plant, industry, craft or a group of them,
political action is intended to benefit the working class in general. The trade union practices
with respect to political action also vary widely.

Political Action/Legal Enactment is A trade union method that comprises exerting pressure on
governments for pro-labor legislation and labor welfare amenities, setting up of labour parties
or developing allegiance to pro-labour political parties and seeking control of industries.

1.12 CLASSIFICATION OF TRADE UNIONS

A. Classification based on ideology
i. Revolutionary Unions: They believe in destruction of existing social/economic order and
creation of a new one. They want a change in power and Authority and use of force - Left
Unions.

ii. Reformist or Welfare Unions: These work for changes and reforms within the existing socio-
political framework of the society like a European Model.

iii. Uplift Unions: They believe that scope of extensive reforms well beyond the area of working
condition, i.e., change in taxation system, elimination of poverty, etc.

B. Classification Based on Trade

 Craft Unions: The earliest form of trade union was of a craft type, in which the possession of
certain trade skills was the basis for organization and in which these skills could be identified

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with jobs capable of being demarcated from others. For example, all carpenters belong to the
carpenters union; the plasterers belong to the plasterers union. Most of the unions have
memberships and authorities based on the trades they represent. The craft unions are very
narrow in terms of their membership, which represents only members certified in a given craft
or trade. Craft unions are not common in countries like India and Sri Lanka.

 General Unions: At the other extreme, in terms of the range of workers represented in the
general union, which has members drawn from all trades. It is a trade union which has no form
of restriction on categories of workers who may join. General unions are open unions and are
generally large in size. In Australia a good example is the Australian Workers Union. In some
cases trade unions moves away from their original areas and become like general unions. Most
unions in India and Sri Lanka are in this category.

 Blue-Collar/White Collar Unions: Another common demarcation of unions, based on trades

or crafts, is so-called blue-collar workers and white-collar workers. Unions which are
representing workers employed on the production floor or outdoor trades such as in
construction work, are called blue-collar unions. Contrary to it, those employees in shops and
offices and perform clerical and similar functions are called white-collar workers.

 Industrial Unions: In addition, trade unions may be categorised on the basis of the industries
in which they are employed. These unions ranks all workers, skilled and unskilled, who are
employed within a given industry (railroads, steel etc.). They are often called as vertical
organization as they include the far ranging population of workers within an industry, skilled or
unskilled. Examples of these are workers engaged in agriculture or forestry: hence, agricultural
labour unions or forest workers’ unions.

C. Classification Based on Agreement

Another basis on which labour agreements are sometimes identified on basis of the type of
agreement involved, based on the degree to which membership in the union is a condition of
employment.

i. Closed Shop: A ‘closed shop’ is that business enterprise which has an agreement with the
union that a worker must be the member of the union at the time of his employment and
continue to do so in order to retain his job. Sometimes, such an enterprise is also called a ‘pre-
entry closed shop’. In short, a ‘closed shop’ means a shop closed to non-unionists for the
purpose of employment. A collective agreement by which ‘closed shop’ is established is called a
‘closed shop agreement’.

Under such an agreement, the employer’s freedom to recruit his labour is limited and he can
recruit only those persons who are members of the union. As soon as the worker ceases to be a

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member of the union, his services are terminated. The worker’s freedom to join a union or not
to join it is similarly restricted. In the same way, his freedom to choose his employer or place of
work is also curtailed. In such a case, a union is no longer a voluntary organisation and unionism
becomes compulsory. According to Taft-Hartley Act of 1947 closed shop agreements are
banned in USA, although they still exist in the construction and printing trades. Sometimes, the
closed shop is also called the ‘Hiring Hall.’

ii. Union Shop: A ‘union shop’ is that business enterprise which has entered into an agreement with
the union that a worker would become a member of the union within a specified period of his securing
employment in that enterprise and that he would continue his membership in order to retain his job.
Under a union shop, the employer is free to recruit his workmen, but the workmen so recruited have to
join the union within a specified period after their employment. If a worker ceases to be a member of
the union at any time during his employment, the employer is obligated under the agreement to
discharge him from his job. A union shop is less restrictive of the employer’s freedom than a closed
shop.

iii. Preferential Shop: When a union member is preferred in filling a vacancy, such an
agreement is called Preferential Shop.

iv. Maintenance of Membership: Shop A ‘maintenance of membership shop’ is that place of

employment where an agreement between the employer and the trade union provides that “all
employees who are members of the union on a specified date or who become members after
that date are obligated, as a condition of employment, to maintain a good standing in the union
for the term of the agreement.”6 Under such an agreement, the employer is permitted to hire
persons without regard to membership or non-membership of the union, but if a worker once
joins the union, he cannot withdraw his membership and also hold his job. Similarly, the
persons, who are members of the union at the time such an agreement is signed, are allowed a
certain period in which to resign. If they do not resign, they have to keep up their membership
in order to keep their jobs. This sort of agreement allows the workers the choice to be union
members, but once they choose to do so, they cannot change their minds and withdraw from
the union without losing their jobs. This was a particular feature of many collective agreements
in USA during the Second World War. It was a compromise between the unions’ demands for a
‘closed shop’ and the employers’ insistence on an ‘open shop’.

v. Agency Shop: In terms of the agreement between management and the union a nonunion
member has to pay the union a sum equal to a member’s subscription in order to continue in
employment with the employer. This is called an agency shop. The idea behind the ‘agency
shop’ was that a worker should not be deprived of his job if he objected to joining a union, but
at the same time, he should not be able to escape the money cost that his membership of the
union would have involved

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vi. Open Shop: Membership in a union is in no way compulsory either before or after
recruitment. This is the least desirable form for unions. This is referred to as an open shop.

1.13 Strategies Companies Use to Avoid Unionization

Most organizations feel the constraints of having a union organization are too great. It affects
the cost to the organization and operation efficiency. Collective bargaining at times can put
management at odds with its employees and cost more to produce products and services.
Ideally, companies will provide safe working conditions, fair pay, and benefits so the employees
do not feel they need to form a union.

Some of the arguments that might be used include talking about negative consequence of
unionization with the employee and mentioning the following

 Union dues are costly.

 Employees could be forced to go on strike.
 Employees and management may no longer be able to discuss matters informally and
individually.
 Unionization can create more bureaucracy within the company.
 Individual issues may not be discussed.
 Many decisions within a union, such as vacation time, are based on seniority only.

1.14 THEORIES OF TRADE UNIONISM

Most of theories on Trade Unionism have been given by revolutionaries such as Marx and
Engels , Civil servants like Sydney Webb, academics like Common and Hoxie and labour leaders
like Mitchall. These are explained below:

Webb’s Theory of Industrial Democracy:

Webb’s book ‘Industrial democracy’ is the Bible of trade unionism. According to Webb, trade
unionism is an extension of democracy from political quarters to industrial sphere. Webb
echoed with Marx that trade unionism is a class struggle and modern capitalist state is a
transitional phase which will lead to democratic socialism. Webb considered collective
bargaining as the process which reinforces labour.

”A trade union is a continuous association of wage-earners for the purpose of maintaining or

improving the conditions of their working lives. Trade unions spring not from any particular
institution, but from every opportunity for the meeting together of wage-earners of the same
occupation.”

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Criticism

With regard to the ultimate goals of trade unions, the Webbs have laid emphasis on their being
instruments of democratization of both the work community and society as a whole. They have
thus not foreseen other goals which the trade unions also adopt and which have been
emphasized by other theorists.

The Marxian Theory

Karl Marx has explained the emergence and growth of trade unionism as a result of the rise of
two opposed classes—the capitalist, termed by him as the bourgeoisie, and free labourers,
whom he called the proletariat. His theory of trade unionism is based on the conflict inherent
between these two classes.

After the industrial revolution, when the usage of machines started for the production of
commodities, concentration of free labourers under one roof happened on a large scale. At that
time, the labourers received merely subsistence wages which too were nibbled at by the
bourgeoisie. In order to resist this, the proletariat had no alternative but to make a common
stand. This gave birth to trade unions. Initially, they had to combine to stop competition among
themselves for obtaining more wages. Later, when the sense of unity strengthened and
solidarity took strong roots among them, they started industrial struggle against the
bourgeoisie which ultimately took the shape of a political struggle.

Criticism

The relation between labour and capital does not always contain elements of conflict. Rather, it
is the element of cooperation that makes possible the smooth running of industrial and other
enterprises. Of late, trade unions in almost all countries of the world have associated
themselves with tripartite deliberations and have cooperated with both the state machinery
and the employers in the formulation and execution of governmental labour policy.

Perlman's Job Consciousness Theory

According to Perlman, the trade union is the outcome of the pessimistic outlook of a ‘manualist’
worker. This outlook emerges when the worker becomes conscious of the scarcity of job
opportunities. In order to protect the limited job opportunity, the worker starts uniting with
fellow ‘manualists’. Perlman contends that job scarcity has been true not only for workers
under the medieval guild system of European countries, but also of modern industrial labour.
‘Just as to the guildsman opportunity was visibly limited to the local market, so to the industrial
wage-earner it is limited to the number of jobs available, almost always fewer than the number

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of job seekers’. After studying the American situation, Perlman says that during periods of
expansion of the economy, the American worker had the consciousness of abundance, but this
phenomenon existed only for a few years. ‘The optimism of the period of plenty was
superseded by the pessimism of scarcity’. The moment such a situation emerged, trade unions
also emerged.

Criticism

Perlman’s proposition that trade unions emerged mainly from ‘job consciousness’ is not
tenable in all situations. In a number of countries, workers are faced with the problem of job
scarcity and job insecurity, but they do not take recourse to trade unionism. This is particularly
true of small and scattered industries or employments.

Hoxie's Socio-psychological Theory

According to Robert F. Hoxie, trade unions grew out of the ‘social psychological’ environment of
the workers. He has said that ‘workers who are similarly situated economically and socially,
closely associated and not too divergent in temperament and training, will tend to develop a
common interpretation of the social situation and a common solution of the problem of living.
This may come about gradually and spontaneously, or it may be apparently sudden outcome of
some crisis in the lives of the men concerned.

Tannenbaum's Technological Theory

Frank Tannenbaum has developed a technological theory of trade unionism. According to him,
‘Labour movement is the result and machine is the major cause’. He held that any mode of
production that uses machines, whether it be in a factory or mine or industry, is responsible for
giving birth to trade unions. The mechanical mode of production involves gathering of work-
people, and such a congregation gives rise to the trade union. In Tannenbaum’s view,
mechanization led to the breaking of society which had hitherto given to the workers ‘security,
justice, freedom and faith’. The workers were led to look after themselves individually, and
thus, the advent of machines resulted in ‘social atomization’. When the socially ‘atomized’
workers started congregating under one roof, they wanted to restore their past position.
Tannenbaum has said, ‘What the workers had in common was their employer, the industry they
worked in, the hours they laboured, the bench or the machine they worked at, the wage rate
they received, the foreman who ruled over them, the materials they worked, the whistle that
called them from beds in the morning or brought to halt to their labours’.They depended on
one another’s cooperation. Thus, a sense of identity became inevitable. These conditions gave
them a common unity based on craft, job, shop or industry, and led to the establishment of
‘self-conscious’ groups. ‘Thus social atomization resulting from the individual money wage was

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in time to be defeated by the fusing of men together functionally and this functional
coalescence became the firm foundation upon which the trade union movement grew, and
which, in fact made it inevitable’

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