UNIT-4

The concept of a trade union revolves around a collective group of workers coming together

to protect their rights, improve working conditions, and advocate for their interests. Trade

unions play a significant role in industrial relations and labor management.

Definition

A trade union is an organization of workers formed to represent their collective interests in

negotiations with employers. These negotiations, often referred to as "collective bargaining,"

aim to improve aspects like wages, benefits, working conditions, job security, and workplace

policies.

Key Features of a Trade Union

1. Collective Action:

o Workers unite as a single entity, increasing their bargaining power.

o The focus is on "strength in numbers."

2. Representation:

o Acts as the voice of workers in discussions with management or employers.

3. Advocacy:

o Fights for better wages, hours, and working conditions.

4. Membership-Based:

o Composed of employees or workers who voluntarily join the union.

5. Legal Recognition:

o In many countries, trade unions operate within a legal framework that defines

their rights and responsibilities.

Functions of Trade Unions

1. Economic Function:

o Negotiates for higher wages, bonuses, pensions, and other monetary benefits.

2. Political Function:

o Influences legislation and government policies related to labor.

3. Social Function:

o Promotes the welfare of workers, such as education, healthcare, or housing

initiatives.

4. Protective Function:

o Shields workers against unfair treatment, exploitation, or unsafe working

environments.

Examples of Trade Unions

1. The International Labour Organization (ILO): Works globally to promote social

justice and workers' rights.

2. All India Trade Union Congress (AITUC): One of the oldest trade unions in India.

3. United Auto Workers (UAW): Represents workers in the American automobile

industry.

Importance of Trade Unions

 Improved Negotiation Power: Workers often have limited individual power, but trade

unions provide collective strength.

 Industrial Harmony: By addressing disputes constructively, trade unions can prevent

strikes and other industrial unrest.

  Social Justice: They promote equitable treatment and fair opportunities for workers.

Structure of Trade Union:

The structure of a trade union refers to the way it is organized to carry out its functions

effectively. A trade union typically has a hierarchical framework to ensure smooth operations,

representation of members, and decision-making processes.

Levels of Trade Union Structure

1. Primary/Grassroots Level:

o This is the foundational level where individual workers directly participate.

o Members elect representatives or shop stewards to voice their concerns.

o Example: Factory-level unions for workers in an industrial plant.

2. Local/Regional Level:

o Unions in a specific region or locality form this level.

o Handles region-specific issues like local labor laws or practices.

o Example: A trade union branch for workers in Uttar Pradesh.

3. National Level:

o A central body that oversees all lower-level unions under its umbrella.

o Frames policies, negotiates with employers’ associations, and deals with the

government.

o Example: All India Trade Union Congress (AITUC) or Indian National Trade

Union Congress (INTUC).

4. International Level:

o Some trade unions affiliate with international labor organizations to promote

global solidarity and workers' rights.

 o Example: International Trade Union Confederation (ITUC).

Organizational Structure

1. General Assembly:

o Composed of all union members.

o The highest decision-making body that approves policies and elects leaders.

2. Executive Committee:

o Elected members who manage the union’s day-to-day activities.

o Includes a president, vice-president, secretary, treasurer, and other office

bearers.

3. Working Committees/Sub-Committees:

o Focus on specific areas like welfare, legal affairs, or grievances.

4. Union Representatives/Stewards:

o Act as a bridge between the workers and the union leadership.

o Address workers’ grievances and represent them in discussions with

management.

Illustrative Example

Consider a trade union in a factory:

 At the grassroots level, shop-floor workers elect a representative to address their

concerns.

 At the local level, representatives from multiple factories in the same area form a

district-level committee.
  At the national level, the district committee reports to a central office that coordinates

with other national unions and negotiates policies with the government or industry

leaders.

This layered structure ensures that workers' voices are heard, and their concerns are addressed

efficiently.

The history of trade unions is deeply intertwined with the evolution of industrialization and

workers' rights. Here's a detailed overview:

Origins of Trade Unions

Trade unions emerged as a response to the challenges faced by workers during the Industrial

Revolution in the 18th and 19th centuries. The rapid growth of industries led to:

 Poor working conditions.

 Long working hours.

 Low wages.

 Lack of job security.

Workers began organizing themselves to collectively demand better conditions, marking the

birth of trade unions.

Global Development of Trade Unions

1. Early Movements:

o The first trade unions were informal groups formed by skilled workers like

weavers and carpenters.

 o In the UK, the Combination Acts of 1799 and 1800 initially prohibited trade

unions, but these were repealed in 1824, leading to the growth of organized

labor movements.

2. 19th Century:

o The rise of socialism and labor rights movements fueled the growth of unions.

o In the US, the Knights of Labor (founded in 1869) and the American

Federation of Labor (AFL) (founded in 1886) became prominent.

3. 20th Century:

o Trade unions gained legal recognition in many countries.

o The establishment of the International Labour Organization (ILO) in 1919

provided a global platform for workers' rights.

Trade Union Movement in India

1. Colonial Era:

o The first trade union in India, the Bombay Millhands Association, was formed

in 1890 to address the grievances of textile workers.

o The Madras Labour Union (1918) is considered the first organized trade union

in India.

o The All India Trade Union Congress (AITUC) was established in 1920,

marking the beginning of a national labor movement.

2. Post-Independence:

o Trade unions played a significant role in shaping labor laws and policies.

o The Trade Unions Act of 1926 provided legal recognition to unions and

outlined their rights and responsibilities.

Impact of Trade Unions

  Improved wages and working conditions.

 Advocacy for labor laws and social security.

 Promotion of industrial harmony and dispute resolution.

Origin of Trade Unions

Trade unions originated as a response to the challenges faced by workers during the Industrial

Revolution. With the rise of factories in the late 18th and early 19th centuries, there was:

 Exploitation of Labor: Workers faced long hours, low pay, and unsafe working

conditions.

 Lack of Representation: Individual workers had little power to negotiate with

employers.

 Rise of Capitalism: The gap between employers (capitalists) and workers widened,

creating the need for collective representation.

In this environment, workers began forming informal groups to protest against exploitation.

Over time, these groups organized themselves into formal unions to represent workers'

collective interests.

Example

 The Combination Acts (1799-1800) in the UK initially outlawed trade unions, fearing

they would disrupt industrial progress. However, workers continued to organize

informally until the Acts were repealed in 1824. This led to the emergence of unions

like the Grand National Consolidated Trades Union in 1834.

Reasons for the Slow Growth of Trade Unions

Despite their necessity, the growth of trade unions was relatively slow, particularly in

developing countries. Here are some key reasons, along with examples:

1. Political and Legal Barriers:

o Governments often imposed strict laws to suppress union activities, fearing they

would incite unrest.

o Example: In colonial India, the British government discouraged unionization

to maintain control over the workforce.

2. Low Awareness Among Workers:

o Many workers, especially in rural areas, were unaware of their rights or the

benefits of unionization.

o Example: In developing economies like India, illiteracy and lack of education

hindered the spread of union movements during the early 20th century.

3. Fragmented Workforce:

o Workers were divided by caste, religion, ethnicity, or language, making it

difficult to unite.

o Example: In India, the caste system discouraged solidarity among workers in

the same industry.

4. Poverty and Job Insecurity:

o Workers feared retaliation from employers, including job loss, which made

them hesitant to join unions.

o Example: Early factory workers in China and Southeast Asia chose immediate

survival over long-term organization.

5. Dominance of Employers:

o Employers used their influence to suppress unions through intimidation,

blacklisting, or by fostering rival unions.

 o Example: In the US, during the late 19th century, companies like Standard Oil

employed strikebreakers to weaken unions.

6. Internal Challenges in Unions:

o Issues such as corruption, lack of strong leadership, and conflicts within unions

slowed their growth.

o Example: The division between socialist and non-socialist unions in India (e.g.,

AITUC vs. INTUC) weakened the overall movement.

7. Economic Factors:

o Economic downturns reduced workers’ bargaining power and union funding.

o Example: The Great Depression (1929) led to widespread unemployment,

weakening unions globally.

Modern Context

Today, trade unions face new challenges like globalization, automation, and the rise of the gig

economy. However, they continue to be vital in advocating for workers' rights.

Types of Trade Unions

Trade unions can be classified based on their purpose, membership, and scope of activities:

1. Craft Unions:

o Composed of workers with a specific skill or trade.

o Focused on protecting the interests of workers in that craft.

o Example: The United Brotherhood of Carpenters and Joiners in the US

represents skilled carpenters.

2. Industrial Unions:
 o Represents workers across a particular industry, regardless of their specific job

role.

o Example: United Auto Workers (UAW) represents workers in the automobile

industry in the US, covering everyone from assembly line workers to

electricians.

3. General Unions:

o Open to workers from any industry or trade.

o These unions typically focus on broader labor rights and social welfare.

o Example: Trade Union Congress (TUC) in the UK brings together multiple

professions and industries under one umbrella.

4. Federation of Unions:

o A coalition of various unions that work together for common goals while

retaining independence.

o Example: The Indian National Trade Union Congress (INTUC) in India is a

federation representing multiple sectoral unions.

5. White-Collar Unions:

o Represent employees in professional or managerial roles.

o Example: The British Medical Association (BMA) is a trade union for doctors

in the UK.

6. Political Unions:

o These unions align with a particular political ideology or party.

o Example: The All India Trade Union Congress (AITUC) is historically

associated with leftist political ideologies in India.

Structure of Trade Unions

A trade union's structure ensures smooth functioning and representation of members' interests

at all levels. Here is the general hierarchical framework:

1. Primary/Local Level:

o The most basic and foundational level.

o Composed of workers from a specific workplace or company.

o Elected representatives (e.g., shop stewards) handle grievances, wage

negotiations, and disputes.

o Example: A textile factory union representing its floor workers.

2. Regional Level:

o Local unions in a region come together to form a regional-level organization.

o This structure addresses issues specific to that area and supports local-level

unions.

o Example: A regional union for tea plantation workers in Kerala.

3. National Level:

o A national trade union oversees multiple regional or sectoral unions.

o It frames policies, negotiates with the government, and advocates for workers’

rights on a national scale.

o Example: The Indian National Trade Union Congress (INTUC) works at the

national level to influence labor laws.

4. International Level:

o Some unions are part of global organizations that advocate for labor rights

internationally.

o Example: The International Trade Union Confederation (ITUC), which unites

workers' organizations from various countries.

Key Organizational Components

1. General Body:

o Includes all members of the union.

o It is the highest authority, responsible for electing leaders and approving

policies.

2. Executive Committee:

o A smaller group of elected officials (e.g., president, secretary) responsible for

day-to-day administration.

3. Working Committees/Subcommittees:

o Focused groups handling specific functions like grievance redressal, wage

negotiations, or social welfare programs.

4. Union Representatives/Shop Stewards:

o Act as intermediaries between workers and union leadership.

Example: Trade Union in Action

Let’s take the example of a workers' union in a manufacturing company:

 At the local level, workers in a factory elect representatives to address grievances with

the management.

 At the regional level, this factory union joins with other factories in the same industry

in that area to form a broader committee.

 At the national level, these regional committees report to the parent body, which works

with the government to influence wage policies and ensure labor law compliance.

This tiered approach ensures that workers' concerns are addressed both locally and strategically

at higher levels.
Problems of Trade Union:

1. Lack of Unity Among Workers

 Workers in trade unions often come from diverse backgrounds with different interests,

which can lead to conflicts and divisions.

 Factors like caste, religion, regionalism, and language differences prevent workers from

uniting under a common cause.

 Example: In India, the caste system has historically acted as a barrier to solidarity

among workers in the same industry.

2. Political Interference

 Many trade unions are affiliated with political parties, which often leads to prioritizing

political agendas over workers' welfare.

 Political involvement can create rivalries between unions and dilute their focus on labor

issues.

 Example: In India, unions like AITUC and INTUC are associated with political

ideologies, often leading to conflicts.

3. Multiplicity of Unions

 Multiple unions representing the same group of workers weaken collective bargaining

power.

 Employers may exploit this fragmentation by playing unions against each other.

 Example: In large industries, it is common to find competing unions that fail to work

together on critical issues.

4. Lack of Strong Leadership

 Ineffective or corrupt leadership often undermines the credibility of trade unions.

 Leaders may prioritize their personal gains over the union’s objectives.

 Example: Instances of mismanagement or misuse of union funds have led to distrust

among members.

5. Financial Constraints

 Trade unions depend on membership fees for financial support, which are often

insufficient.

 Poor financial health limits their ability to provide benefits like legal assistance, welfare

schemes, or strike funds.

 Example: Small, localized unions in developing countries struggle to sustain

themselves due to a lack of funds.

6. Low Awareness Among Workers

 Many workers, especially in unorganized sectors or rural areas, are unaware of their

rights and the role of trade unions.

 This lack of awareness prevents workers from actively participating in union activities.

 Example: Agricultural laborers or domestic workers often remain unorganized due to

ignorance of union benefits.

7. Employer Resistance

 Employers may adopt anti-union strategies, such as intimidation, hiring strikebreakers,

or encouraging rival unions to suppress union activities.

  Union leaders and active members might face unfair treatment or job terminations.

 Example: Globally, there have been cases where corporations have actively

discouraged unionization, such as union-busting efforts in retail or tech industries.

8. Legal Challenges

 Complex labor laws and bureaucratic hurdles can restrict the functioning of unions.

 In some countries, governments impose restrictions on strikes, protests, or union

registration.

 Example: In several developing nations, stringent labor laws make it difficult for

unions to organize and operate effectively.

9. Decline in Membership

 With the rise of the gig economy, contractual employment, and automation, traditional

union memberships are shrinking.

 Workers in new-age sectors like IT or e-commerce often do not see unions as relevant

to their needs.

 Example: Many tech workers prefer negotiating individually with employers instead

of joining unions.

10. Internal Conflicts

 Disputes within unions over policies, leadership, or resource allocation can weaken

their functioning.

 Factionalism within unions leads to inefficiencies and reduces trust among members.

 Example: Union splits due to ideological differences are common, particularly in

politically aligned unions.

Conclusion

To overcome these challenges, trade unions need to focus on:

 Strengthening unity among workers.

 Reducing political interference.

 Providing effective and transparent leadership.

 Increasing awareness about workers’ rights and benefits of unionization.

Worker Participation in Management (WPM) refers to the practice where workers or their

representatives actively take part in organizational decision-making processes. This

collaboration fosters a sense of ownership and improves relationships between employees and

management, leading to enhanced organizational efficiency and a positive work environment.

Details and Importance of WPM

1. Definition:

o Worker Participation in Management is a system where employees contribute

to the decision-making process on various organizational matters, such as

planning, operations, and workplace policies.

2. Objectives:

o Enhance mutual understanding between management and employees.

o Improve the quality of decisions by incorporating diverse perspectives.

o Boost employee morale and job satisfaction through active involvement.

o Build trust and reduce industrial conflicts.

3. Levels of Participation:

o Informative Participation: Workers are informed about management decisions

but have no role in decision-making.

 o Consultative Participation: Management seeks input and feedback from

workers before making decisions.

o Decisive Participation: Workers or their representatives have actual decision-

making power or veto rights in management decisions.

4. Methods of WPM:

o Representation on the board of directors.

o Joint consultative committees or councils.

o Works committees (as stipulated under the Industrial Disputes Act, 1947 in

India).

o Suggestion schemes where employees contribute ideas.

o Collective bargaining through trade unions.

5. Challenges:

o Cultural or organizational resistance to employee involvement.

o Lack of trust or ineffective communication between workers and management.

o Insufficient training for workers to effectively participate in decision-making.

Examples of Worker Participation in Management

1. Germany: The Codetermination Policy mandates worker representatives on

supervisory boards of large companies, actively participating in corporate governance.

2. India: The Works Committees established under the Industrial Disputes Act (1947)

involve both employers and employees discussing workplace issues like safety,

welfare, or grievances.

3. Japan: Japanese companies emphasize team-based decision-making, encouraging

active worker involvement at all levels.

This approach can ultimately strengthen relationships between employees and employers while

fostering innovation and efficiency.

The Trade Union Act, 1926 is a significant piece of legislation in India that governs the

registration, rights, and liabilities of trade unions. Here's a detailed overview:

Key Features of the Trade Union Act, 1926

1. Objective:

o To provide legal recognition to trade unions.

o To define the rights and responsibilities of registered trade unions.

o To ensure proper regulation and functioning of trade unions.

2. Applicability:

o The Act applies to the whole of India.

3. Definitions:

o Trade Union: Any combination of workers or employers formed to regulate

relations between workers and employers or among workers themselves.

o Registrar: An official appointed by the government to oversee trade union

registration and compliance.

4. Registration of Trade Unions:

o Trade unions must apply for registration to the Registrar of Trade Unions.

o The application must include the union's name, objectives, and rules.

o A minimum of seven members is required for registration.

o Upon approval, the Registrar issues a certificate of registration.

5. Rights and Liabilities of Registered Trade Unions:

o Immunity from civil suits for acts done in furtherance of trade disputes.

o Right to establish a separate fund for political purposes.

 o Right to inspect books of accounts and other records.

6. Duties of Trade Unions:

o Maintain proper accounts and submit annual returns to the Registrar.

o Notify the Registrar of any changes in the union's name, rules, or office-bearers.

7. Provisions for Dissolution:

o Trade unions can be dissolved as per their rules, and the Registrar must be

informed.

8. Penalties:

o Failure to comply with the Act's provisions can result in fines or other penalties.

Examples and Relevance

 Historical Context: The Act was introduced during the colonial era to address the

growing labor movements and industrial disputes.

 Modern Relevance: It continues to play a crucial role in protecting workers' rights and

promoting collective bargaining.