Trade Unions

• A trade union is an organization of workers that is formed with a

view of protecting and promoting the interests of workers. For
example:- union of teachers fighting for their rights.
• The Indian Trade Unions Act, 1926 defines a trade union as
“Any combination formed primarily for the purpose of regulating
the relations between workers and employers”.
 Functions of a Trade Union

Militant function
• To achieve higher wages and better working conditions.
• To raise the status of workers as a part of industry.
• To protect labours against victimization and injustice.
Fraternal Functions
• To take up welfare measures for improving the moral of workers.
• To generate self confidence among workers.
• To encourage sincerity and discipline among workers.
• To provide opportunities for promotion and growth.
 Benefits of Joining a Trade union
• Higher standard of living for members i.e. better wages and conditions
• Greater job security.
• Increased bargaining power i.e. one voice for all worker.
• Protection against discrimination or unfair dismissal.
• Better platform for self expression.
• Provides a self of belongingness.
 Types of Trade Unions

• Industrial Unions: members work in the same industry are known as

industrial unions. E.g.- Fire Brigade Union
• Craft Unions: These unions represents the skilled workers. E.g.- Bricks
men.
• White Collar Unions: professional members are usually known as white
collar unions. E.g.- Teachers unions.
• General Unions: These represent workers from different industries & any
level of skills. E.g.- Indian National Trade Union Congress (INTUC)
 Trade Unions In India
The Indian workforce consists of 430 million workers, growing 2% annually.
The Indian labor markets consists of 3 sectors:
• The Rural workers, who constitute about 60% of the workforce.
• Organized sector, which employs 8%of the workforce.
• The urban informal sector(which includes the growing software industry and
other services, not included in the formal sector.) which constitutes the rest
32% of the workforce.
 Trade Union Movement in India
• Trade Union Movement is co-exertive with large-scale industries, and goes
back to the year 1857.
• It developed in stages in 1890 with Bombay Mill hands Association
followed by Amalgamated Society of Railway Servant of India in 1897.
• A few more unions came into being, but it was the Russian Revolution in
1917, the Swaraj Movement and the establishment of The International
Labour Organization that gave new life to the trade union movement in
India i.e. the emergence of The Trade Union Act,1926.
 Case Study 1

Mahindra and Mahindra Nashik Plant

• The plant employs around 4,000 workers and produces most of the M&M
models such as the Xylo, Bolero, Quanto and Scorpio besides the mid-size
sedan Verito.
• M&M has already incurred loss of production of around 500 vehicles so
far. In terms of revenue loss, it is estimated to be around Rs 25 crore.
 Issues
• The strike is a result of a fallout of the suspension of two workmen on
disciplinary grounds.
• The hunger strike by the two senior union leaders, who were demanding
immediate signing of the wage accord by the company.
• One of the union leader was suspended.
• The union had demanded inflation-linked wage revision, besides restricting
the wage agreement period to three years against the present three-
and-a-half years.
 What Management Wanted?
The company wants the two leaders to end their hunger strike and then come for
negotiations while the union leaders are firm on their stand that it should first
sign the wage hike agreement, which it has been negotiating with the union for the
past almost five months.

Negotiation
• The management wanted to increase production 25 per cent before considering the
wage hike demand.
• Also, against the union’s proposal of a Rs 10,000 hike, the management’s offer is
only Rs 6,400, which is even lower than the one proposed by the DLC. Labour
department proposed increment of Rs 8,662.
 Outcome
• After negotiating for almost a year, automaker Mahindra and Nashik plant union
have reached an agreement on the wage settlement and a higher output.

• The management will give an average wage hike of Rs.9300 per month to all
its 2950 permanent employees at the facility and the union has agreed to scale up
production by 18% in a quid-pro-quo arrangement.
Case Study II- Nokia Siemens Networks
• In August 2009, the workers at Nokia went on strike.
• According to a report, the strike started suddenly on 13th August 2009,after announcement of the new
pay proposal with a salary hike of only Rs 200 per month.
• The workers argued that this was equivalent to no hike in salary despite repeated requests.
• The workers’ union had initially demanded a hike in salary in 2008, which was not met.
• In 2009, citing problems caused by the recession, demands for wage hikes were also denied. The workers
went on strike.
• The strike effectively continued for only two days, but the production of 300,000 handsets was affected.
• There was a very quick response from the Labour Department pressuring the workers to stop the strike
and give time to settle the dispute.
• On 14th August, management agreed to talk to the workers regarding their demands and also offered a
salary hike of Rs 1400 per month.
• It is also interesting to note that trade union wing of ruling DMK party the Labour Progressive
Federation (LPF) had formed a trade union in- Nokia Workers’ Progressive Union, affiliated to LPF.
• Through those negotiations, a wage pact was finally signed between management and the LPF giving the
workers a salary hike of Rs 1500 per month
.
AGAIN STRIKE IN 2010

• The strike lasted for three days and ended after assurance from the company that the suspended workers
would be taken back.
JULY 2010
• The management was in the process of finalizing a long term wage settlement with the union, but a
fraction of the workers were opposed to the proposed settlement. The demand was also to reinstate the
suspended workers.
 JUNE 2013
• The employees backed by the CITU (Centre of Indian Trade Unions) went on strike
on June 7 demanding union recognition, reinstatement of some suspended workers and
wage hike.

• While the CITU claimed that about 120 employees were on strike, the company
maintained only 60 stayed away from the work.

• The contract included 700 workers in it.

 Problems and Weakness Of Trade Union
• Financial Problem
• Uneven Growth
• Indifferent attitude of workers.
• Limited membership.
• Multiplicity of unions.
 INDUSTRIAL ACTION BY TRADE
UNIONS
• Work to rule: It means employees will only do the exact work
they were employed for.
• Go Slow: It means employees do their work as slowly as possible.
• Overtime ban: In this employees refuse to do overtime as
required by their employer.
• Strike: It is a typical way to gain concession from the employer by
doing protest and refusing to work.
 Conclusion
• To conclude we can say that labour is the lifeblood of every organization, if
we are able to maintain a good industrial labour relation then the prosperity
of both employer and employee will be at extremity. Every organization can
have same type of machines but their success depends upon the type of
human resources they have.
Made By:-
1)Yashraj Agrahari
2)Nikhil Mehrotra
3) Dinesh Jhorar