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SUBMITTED BY:Neha Singh & Aditi Kumari BBA- A 2nd year.

Trade Union is an association of wage earners to protect the interest of the employees. Trade Union association of employees has to be registered recognized for collective bargaining whose principle purpose is to regulate relation between employee and company

Features of trade unions

It is an organization formed by employees or workers. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. 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

Objectives of Trade Union

To improve the economic lot of employees by securing for them better wages. To secure better working conditions for the workers. To secure bonus for the employees from the profit of the concern, To resist schemes of the management which reduce employment, e.g., rationalization and automation. To secure welfare of employees through group schemes which give benefit to every employee. To protect the interests of employees by taking active participation in the management. To secure social welfare of the employees. To secure organizational stability, growth, and leadership.

Functions of Trade Unions

Broadly speaking, trade unions perform two types of functions, viz.,

Militant or protective or intra-mutual functions protecting the workers interest through collective bargaining and direct action such as strikes, gheraos, etc. Fraternal or extramural functions includes providing financial and financial assistance to workers. Political functions- includes affiliating the union to a political party Social functions- it includes carrying out social service activities.

Kinds or types of Trade Union


Unions- engaged in a single occupation or craft, irrespective of the industries in which they are employed. Eg. Electricians Industrial Union- organized on the basis of an industry rather than a craft. It attempts to organize into one homogenous organic group all the workers- skilled, semi-skilled, unskilled engaged in a particular industry. Eg. Tata Workers Union, Indian National Textile Workers Federation.

Kinds ..

Unions- covers workers employed in many industries, employments and crafts. The Jamshedpur Labor Union , whose membership includes workers engaged in different industries and crafts. White Collar Union- Represents office workers Blue Collar Unions- Workers/laborers

Problems & weaknesses of Trade Unions

Uneven Growth. The trade unionism in India is characterized by uneven growth, both industry-wise and area-wise. Trade unions are popular in big industries and the degree of unionization varies widely from industry to industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centers mainly due to concentration of industries in those places. Limited Membership. The number of trade unions in India has increased considerably. But this has been followed by the declining membership per union.

Multiplicity of Unions. There exist several trade unions in the same establishment. The multiplicity of unions is the result of outside leadership and labour laws.
Outside Leadership. Trade unions in India are led largely by people who themselves are not workers. These outsiders are politicians, intellectuals and professionals having no experience of work in industry. Outsiders continue to dominate the trade unions to advance their personal interests.

Problems & weaknesses of Trade Unions

Financial Problems. The financial position of the trade unions is weak because their average yearly income is very low and inadequate. As a result, the funds with the unions are inadequate and they cannot undertake welfare programmes for their members. Indifferent Attitude of Workers. In India, a large number of workers have not joined any union. Moreover, all the members of the trade unions do not show interest in their affairs. The attendance at the general meetings of the unions is very low. Under such circumstance, trade unionism cannot be expected to make much progress.

Measures to Strengthen Trade Union

United Labour Front Multiple unions should join to form a single union to give adequate strength to the trade unions .
Development of Leadership from Within:- It is of crucial importance that trade unions are managed by the workers, and not by outsiders. Leadership should be developed from within the rank and file of the workers. Recognition of Trade Unions. Till recently, the employers refused recognition to the trade unions either on the basis that unions consisted of only a minority of employees or two or more unions existed. Membership fees The membership fees should be raised as the amount of workers increased significantly.