Trade unions

Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labor practices.

"Trade Union" means 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

Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labor practices.

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 for securing certain economic, social 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.

In India the Trade Union movement is generally divided on political lines. According to
provisional statistics from the Ministry of Labor, trade unions had a combined membership of
24,601,589 in 2002. As of 2008, there are 11 Central Trade Union Organizations (CTUO)
recognized by the Ministry of Labor.

Functions of Trade unions:

(i) Militant Functions (Activist or Revolutionary)

(a) To achieve higher wages and better working conditions
(b) To raise the status of workers as a part of industry
(c) To protect labors against victimization and injustice
(ii) Fraternal Functions (Brother Relationship)
 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
Objectives of Trade Union

The objectives of trade unions can vary depending on the specific needs and circumstances of the
workers they represent. However, some common objectives of trade unions include:

1. Collective Bargaining: One of the primary objectives of trade unions is to engage in collective
bargaining on behalf of their members. They negotiate with employers or employers’ associations
to secure favorable employment conditions, such as fair wages, reasonable working hours,
benefits, and improved working conditions.

2. Protecting Workers’ Rights: Trade unions aim to protect and promote the rights of workers in
the workplace. This includes advocating for equal treatment, non-discrimination, and ensuring
that workers are not subjected to unfair practices or exploitation. Trade unions also work towards
the enforcement of labor laws and regulations to safeguard workers’ rights.

3. Improving Working Conditions: Trade unions strive to improve the overall working
conditions of their members. They advocate for safe and healthy workplaces, access to training
and skill development opportunities, job security, and measures to prevent and address workplace
harassment or discrimination.

4. Enhancing Economic Security: Trade unions work to improve the economic security of
workers by advocating for fair wages, better benefits, and social protections. They seek to ensure
that workers receive adequate compensation for their labor and have access to social security
benefits, including healthcare, pensions, and insurance.

5. Job Protection and Employment Rights: Trade unions aim to protect workers’ jobs and
employment rights. They may advocate for policies and practices that prevent unjust dismissals,
support fair and transparent hiring processes, and address issues related to layoffs, downsizing, or
restructuring. Trade unions also work to promote job stability and secure appropriate
compensation during periods of unemployment.

6. Promoting Skill Development and Training: Trade unions often emphasize the importance
of skill development and training for workers. They advocate for access to quality training
programs, professional development opportunities, and lifelong learning initiatives to enhance the
employability and career prospects of their members.

7. Social and Economic Justice: Trade unions have a broader objective of working towards
social and economic justice. They may engage in campaigns and advocacy efforts to address
income inequality, fight against poverty, promote gender equality, and advocate for social policies
that benefit workers and their families.

8. Unity and Solidarity: Trade unions aim to foster unity and solidarity among workers. They
encourage cooperation, mutual support, and collective action to achieve common goals. By
bringing workers together, trade unions strengthen their bargaining power and influence in
advocating for their interests.

Importance of Trade Unions

• Trade unions help in accelerated pace (speed) 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.

The Role and Need for Trade Unions

• Trade unions represent collective stands and power of collective bargaining, which are
crucial for the growth of a stable working population across numerous economies.
• They have also contributed to workers securing better wages, job security, improved
working conditions, and a more equitable share of the wealth they create.
• Trade unions provide continuity and support to stated policy, lending stability to
industrial production, and protecting the interests of both workers and investors or
industrialists.
• The right to form a trade union is guaranteed as a fundamental right under Article 19 (1)
(c) of the Indian Constitution.

Need of trade Unions

 Representation of collective stand and power of collective bargaining have been

important for the growth of a stable working population across several economies.
 This has also contributed in workers securing better wages, job security, improvement in
working conditions, more equitable sharing of the wealth created by them
 Continuity and support to stated policy has lent stability to the industrial production, and
for the protection of the interest of both the workers and investors or industrialists.
 Right to form a Trade Union is guaranteed as a fundamental right under Article 19 (1) (c)
of the Indian Constitution.
Trade Union Movement in India

The Trade Unions Act, 1926 (Erstwhile Indian Trade Unions Act) defines the term ‘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.

In traditional sense trade unions are continuous association of wage-earners for the purpose of
maintaining of improving the conditions of their working lives

Trade unions form a crucial component of the modern industrial system of a country, operating
under respective constitutional mechanisms, adhering to the globally accepted principles laid
down by organizations such as ILO.

History of Labor Unions in India:

 The trade unions genesis stemmed from the necessity of the time, protecting and securing
the interest, presenting the collective demands, grievances of the industrial worker, from
the second half of the nineteenth century, with establishment of industries.
 Poor working conditions, undue long working hours were the concerns for the workers.
 Although the Unions formed in the second half of the 19th century, they had limitations
in effectively functioning as trade unions, they nevertheless were effective social unions,
presenting the demands collectively, with an orientation to reform the ills.
 Development of such trade unions was closely in sync with the development of the
Industry in India.
 In India, the first trade union came up in Bombay, after the establishment of textile mills
in the 1850s.
 Trade unions came up in Calcutta in 1854, with the establishment of Jute Mills.
 Sohrabji Shapuri Bengali and C.P. Mazumdar were the leaders and early pioneers of the
labour unions uprising.
 The first factory Commission set up in 1879 studied the problems of industrial workers.
 First trade union under the leadership of Narayan Meghji Lokhande -‘Bombay Millhands
Association’, founded in 1884, without any funds, office bearers.
 In 1891, The Indian factory Act was passed
 Some other Trade unions are Ahmedabad Weavers (1895), Jute Mills, Calcutta (1896),
Bombay Mill workers (1897) Union.
Characteristics of the unions and the leadership:

 The leaders were Social Reformers and Nationalists with political inclination.
 Approaches were welfare centric, and not on their rights.
 Limited presence catering to the regions of industrial hubs, absent across the country.
 Since it was in the nascent stage, concerted goals or long term targets were difficult to
find.
Characteristics of Early Trade Unions and Their Leadership:

o Early trade union leaders were Social Reformers and Nationalists with political
inclinations.
o Their approaches were welfare-centric, focusing more on the rights of the workers.
o These unions had a limited presence, mainly in the regions of industrial hubs, and were
absent across the country.
o Since the movement was in its nascent stage, it was difficult to identify concerted goals
or long-term targets.

The First Organized Trade Union Era-1918 and Beyond:

o The first organized Trade Union in India, the Madras Labor Union, was established in
1918.
o The First World War, increased communication, and better awareness of global players
contributed to the development of the trade union movement.
o Some important Unions were the Ahmadabad Textile Labor Association (1917), All India
Postal and RMS Association.
o The All India Trade Union Congress, the oldest trade union federation, was founded in
1920, under the leadership of Lala Lajpat Rai, Joseph Baptista, N.M Joshi, and Diwan
Chaman Lall.

Factors That Fuelled the Growth of the Trade Union Movement:

o The high cost of basic commodities and difficult living conditions, especially as a result
of the war, affected workers and fueled the growth of the movement.
o The emergence of the Home Rule League, Gandhian ideals, and leadership, and
prevailing conditions prompted leaders of the day to work to address workers’ plight.
o Events at the end of the First World War, the establishment of the International Labor
Organization (ILO), and the Russian Revolution also contributed to the growth of the
movement.

Post-1925 Era: The Emergence of Divergent Ideologies:

o This era saw an increase in militancy and revolutionary activities among trade unions.
o Leadership emerged to moderate the movement and bring it back to the mainstream.
 o The All India Trade Union Congress (AITUC) broke away, forming factions – National
Trade Union Federation (NTUF) and All India Red Trade Union Congress (AIRTUC),
which later merged again.
o Legislative measures such as the Trade Unions Act, 1926, and the Trade Disputes Act,
1929, propelled the growth of trade union associations, allowing rights in exchange for
obligations.

Post-1935 Era: Trade Unions Join the National Narrative:

o This era witnessed enhanced unity among different trade unions.

o The political influence of the Indian National Congress across different states led to the
growth and emergence of multiple organizations in the trade union sphere.
o Legislative measures were adopted to confer power and recognition to different trade
unions.
o The government strived to promote industry while protecting the interest of the workers.
o This era is also marked by resentment among unions for the suppression of their protests
by the state machinery, instead of reconciliation and workable resolution.

World War II and a New Era in the Labor Movement:

o The World War II further deteriorated the standard of living, coupled with skyrocketing
inflation of common commodities.
o The war affected the common populace very adversely, which made the movement come
out stronger.
o The introduction of the Industrial Employment Act, 1946, and the Bombay Industrial
Relations Act, 1946, marked the emergence and further strengthening of the trade union
movements.
o The movements also lent their voice to the national struggle and identified themselves as
a crucial player in the national struggle.

The Post-Independence Era:

o In the Post-Independence era, trade unions were more influenced by regional or national
political affiliations, thereby blurring their own position with respect to the primary
concerns of the workers.
o The Indian National Trade Union Congress was formed in 1947.
o Post-liberalization, the influence of trade unions has somewhat attenuated, coupled with
the privatization of the economy.
o Labor code and minimum wage are still some demands remaining as contentious issues
to be addressed.
o The Hind Mazdoor Sabha was formed in 1948, and the Bharatiya Mazdoor Sangh was
founded in 1955.
o The increase in the unorganized sectors of the Economy due to various reasons has led to
an increase in the membership base of the unions.
Challenges Faced by Trade Unions in the Post-Independence Era:

o Limited financial resources due to the low membership fee, limiting their ability to
mobilize financial resources.
o With concentration in large cities and dominated by organized sectors, rural agricultural
labor is left out and not adequately given space.
o Although the unions have registered growth in membership, large numbers of labourers
are not part of the groups, thereby weakening their collective bargain potential.
o Dwindling support base among the public post-liberalization.
o Weak organizational structure and lack of clarity to deal with different labour groups.
o Political ambitions and priorities of the leadership have trumped the concerns and
interests of the laborers, further weakening the bargaining power.
o Weakening of bargaining power due to similar fractions and easy influence by groups
with a counter-narrative, driving a wedge among labor unions unity.
o Lack of unity among labor unions, and resultant competitions for better share, which
further puts them in disadvantage to put forth their demands.
o The question of recognition of the unions, where a favorable group may be given priority,
sidelining the genuine or major groups.

Importance of Labor Unions in the Post-Liberalization Era:

o Trade unions play an essential role in safeguarding the collective interest of the laborers,
drawing a fine balance with the investor’s interests.
o They play a crucial role in ensuring the adoption of ethical business practices.
o Trade unions are instrumental in garnering and mobilizing support for the interests of the
labor class.
o They help in strengthening the collective bargain capacity of the labor class.

Recent Reforms: The Introduction of Labor Codes:

Labor is a subject in the Concurrent List of the Constitution of India. The government has
recently proposed new labor codes, which aim to unify various bills and provisions. These codes
are broadly categorized into four different areas, dealing with Occupational Safety, Health and
Working Conditions, Social security, Industrial Relations, and Wages. These four labor codes
will rationalize 44 central labor laws.

The procedure for the registration and cancellation of Trade Unions

Registration of Trade Unions:

Formation and Constitution:

A group of workers or employees interested in forming a trade union must draft a constitution
outlining the objectives, rules, and structure of the union.
Membership:

 Determine eligibility criteria for membership.

 Recruit members who are interested in joining the trade union.

Registration Application:

Obtain the necessary registration forms from the appropriate government department or agency
responsible for labor affairs.

Submission of Documents:

 Complete the registration forms with accurate information.

 Attach the union's constitution, membership list, and any other required documents.
 Submit the application to the relevant government department or agency along with any
required fees.

Verification and Approval:

 The government department or agency will review the application to ensure it complies
with legal requirements.
 They may conduct investigations or inquiries to verify the authenticity of the information
provided.
 Once satisfied, they will approve the registration and issue a certificate of registration.

Notification:

 Inform the members and relevant stakeholders about the registration of the trade union.
 Start operating as a registered trade union, enjoying legal recognition and rights.

Cancellation of Trade Unions:

Voluntary Cancellation:

 If the trade union decides to dissolve voluntarily, it must follow the procedures outlined
in its constitution.
 This might involve holding a general meeting, passing a resolution for dissolution, and
settling any outstanding obligations.

Government Action:

 The government may cancel the registration of a trade union if it violates laws or
regulations, engages in illegal activities, or fails to meet certain requirements.
  Typically, the government will notify the union of the reasons for cancellation and
provide an opportunity for appeal or rectification.

Appeal and Rectification:

 If the cancellation is due to alleged violations or non-compliance, the trade union may
have the right to appeal the decision.
 They may also be given a period to rectify any deficiencies or address concerns raised by
the government.

Legal Proceedings:

In some cases, trade unions may resort to legal action to challenge the cancellation or seek
remedies if they believe the decision was unjustified.

Disbandment and Compliance:

 If the cancellation is upheld or if the trade union decides not to appeal, it must comply
with the cancellation orders and cease its activities as a registered trade union.
 This might involve winding up affairs, distributing assets (if any), and notifying members
and stakeholders of the dissolution.
 It's essential to consult legal experts or labor advisors familiar with the laws and
procedures governing trade unions in your specific jurisdiction for accurate guidance.