Topic

L1: Trade Unionism(Emergence of trade unionism)-

Ch -1

L2: Trade Unionism(Legal and other handicaps of

early trade unions)-Ch -1
Trade Unionism(Objectives of trade Unions)- Ch -1

L3: Trade Unionism(Methods of trade unions to

achieve their goals)-Ch -1
 News

• https://www.tatasteel.com/media/newsroom/pres
s-releases/india/2018/tata-workers-union-honors-i
ntuc-president-dr-g-sanjeeva-reddy-with-the-24th-
michael-john-memorial-lecture-gold-medal-award
/
• Dr.Reddy joined the Trade Union movement in
1948 and he was elected as General Secretary of
INTUC (Central trade union and was established in
1947), Andhra Branch in 1950.
 What do you think
Why their comes need to form trade unions?
 Trade Unions

• "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.
 Definition
Sr. According Definition
No to

1 Sidney and “ A trade union ,as we understand the term, is a continuous association of
Beatrice wage earners for the purpose of maintaining or improving the
Webb conditions of their working lives”

2 Clyde E. “ A trade union is a continuing organization of employees established for

Dankert the purpose of protecting or improving , through collective action , the
economic and social status of its members”

3 G.D.H. “A trade union means association of workers in one or more professions

Cole carried mainly for the purpose of protecting and advancing the members”

4 J.Cunnison “A trade union is a monopolistic combination of wage earners who as

individual producers are complementary to one another but who stand to
employers in relation to dependence for the sale of their labour and even for
its production, and that the general purpose of the association is in view of
that dependence to strengthen their power to bargain with the employers or
bargaining collectively
 Separation between capital and labour

• Demanded large capital and congregation(group) of large

number of workmen
• Two different group- separation of capital (ownership)
and labour - for production of goods and services
• Give rise to proletariat (working-class people, wage-
earners )- landless labourers no other means of livelihood
except the use of its labour power
• Two classes- conflicting relationship (both pursuit (chase)
their self- interest)
 Capitalists, entrepreneurs - buy labour for production pay
lowest possible price
 Proletariat- suppliers of labours interested in securing
highest possible price
 Emergence of trade unionism

• Incipient (beginning to happen or develop) labour

organizations, survived many prolonged (longer)
attacks against them and succeeded in overcoming
formidable(large, powerful) obstacles.
• Occupy an integral and prominent place in social
and economic life today
• This shows inherent strength of working class
• The history of trade union movement everywhere is
a history of blood, tears and toil
 Emergence of trade unionism
• Started in rudimentary(involving or limited to basic principles)
form .
• Basis of Equality
• Hurdles to be crossed before
 inchoate(just begun and so not fully formed or developed;
rudimentary) labor organizations –into full fledged stable trade
union
 There were internal dissentions(difference of opinion, dispute )
, persistent(in spite of difficulty or opposition) and determined
opposition from the employers, merciless(showing no mercy)
persecution(ill-treatment) and suppression (defeat) by the state
 Full throat condemnation of trade unionism by the advocates
of free competition and laissez - faire
 Philosophy of liassez –faire- Equality

• Prevented suffering industrial workers

• In the eyes of law workers and employers were
equal and had equal claims
• Relationship based upon freedom of contract ,
freely and voluntarily entered into
• Disgruntled(angry or dissatisfied ) workers are
free(to choose employers, place, occupations) .
• Terms and condition of employment determined
by bargaining between workmen and his employer
on the basis of equality
 Emergence of trade unionism
• Economic , social and political changes led to
emergence of trade union movement
• Changes in the state attitudes
• Indifference induced workforce to rely their
own strength of unity, combination and
concerted (jointly) – in face of deepening
(growing , strengthen ) capitalist exploitation
 Early Situation

• Pre – industrial society

• Worker producer owned his tools, provided his

own raw material , worked in his own home ,
owned the final product mostly for his own
consumption and occasionally for sale in market

• Worker was his own master, own capitalist, and

his own seller
 ORIGIN
Second half of 18th century in England
 News
• https://www.newsfirst.lk/2019/07/30/university-trade-union-joint-
committee-launches-a-strike
/

University Trade Union Joint Committee launches a strike

• 11 demands including
 Resolving of salary anomalies
 Increment allowance
 Implementation of an open examination when recruiting
employees for the universities
 Update of the loan scales.
• When News 1st reached UGC over the matter, the chairperson,
Professor Mohan de Silva noted that they have already notified the
Finance Ministry regarding the issues.
 Trade union Introduction
• Nascent (especially of a process or organization just
coming into existence and beginning to display signs
of future potential. ) trade union traced back in 18th
century England
• New industries Iron and coal came into existence
• Technological changes, large scale production
• New Economic system- Capitalist economic system
 Results into
• Profit maximization by capitalists and entrepreneurs
• Early phase of industrial revolution
• Early capitalism
• Which initiated industrialization- excessive working hours,
insanitary working and living conditions, overcrowding ,
employment of young children
• Unbridled(uncontrolled) competitive economy
• Resulted in poverty and misery
• Workers tried to protect their economic interests by
submitting petitions to kings , courts and parliaments for
protective regulations
• Unsuccessful in their attempts
 Reality- un equals
• Employers dictated terms and conditions of
employment
• State remained silent
• State policy non –intervention further heightened the
degree of exploitation , misery and suffering of working
class
• Craftsmen enjoyed initial protection in medieval times
disappeared under rising capitalism
• Workmen was tool in the hands of the employers
• No bargaining skill nor the trade decision to meet his
demand
 Ray of light- Hope of working class
• Individual Dispensability but collective indispensability
• Individual Workmen dispensable (not essential/
neglected ) the employer but workmen collectively
were indispensable to him.
• Few workers can easily be replaced , but employer can
not dispense with the services of all his workmen .
• Realization of collective indispensability watershed(an
event or period marking a turning point in a situation)
• It lays roots of collective bargaining which later resulted
in trade unionism
 Still problem not resolved(legal handicaps)

• State declared : collectivism as “criminal conspiracy” ,

illegal(fines, imprisonment)
 Functioning in restraint of trade
 Violating freedom of contract (liassez –faire- Equality)
 Inducing workmen to break contract of employment
Every year law put down such combinations,
suppress (defeat /destroy) trade unions
Under incessant (non-stop , continue) pressures
from workers and their organization , the law and the
attitude of the courts gradually came to be modified
 Emergence of trade unionism

• Causes /result of labour movement ( may opinions)

 Machine- Frank Tannenbaum
 Group interpretation, social situation –Robert .F.
Hoxie
 Job consciousness and scarcity of job opportunities
- selig perlman
 Attitude of the states, suffering and the need of
toiling (labor) masses- Marx
State shown modicum(speck) of responsibility for the
protection and welfare of the working class.
 Revision
• Job consciousness
• liassez –faire
• Individual Dispensability
• Capitalist economic system
 Legal and other handicaps of early trade
unions
• Workers organizations faced wrath(anger) of state
• State stating policy – against workforce and
increasing indifference
• Combinations of workmen to better conditions
were declared illegal- leo Huberman
• England , France , Germany and united states
combination of workmen were declared illegal.
• Judges punished members of trade union and
participants in strike- imprisonment and fines
• Trade union treated as criminal conspiracies
 Legal and other handicaps of early trade
unions
• Trade unions were treated as:
Criminal conspiracies
Restrain of trade
Violation of freedom of contract (laissez-faire—
freely and voluntarily entered into workmen can
join any organization or quit any one)
Inducing workmen to break their contracts with
employers.
 Legal and other handicaps of early trade
unions
• British Parliament enacted the combination Acts, 1799
and 1800- prohibiting workers from combining and
declaring any combination as illegal
• Sir William Garrow, in a judgment, remarked “ In this
happy country where the law puts the meanest subject
on a level with the highest personages of the realm ,all are
alike protected, and there can be no need to associate”
• Madras labour Union- led by B.P. Wadia – was indicated
as a criminal conspiracy , in 1921 case Buckingham &
carnatic Mills.
 History of trade unions blood, tears and toil

• Harry A. Mills and Royal E. Montgomery: law

relating to labour combination / organization have
undergone interesting development
• Trade union stages of development in all capitalist
countries :Step by step
 A) Outright(wholly and completely) suppression –
stout(heavy) opposition
 B) Limited acceptance and tolerance
 C) General acceptance and recognition
 Activity
If you will get the chance to create your own
trade union you will create for which sector and
what will be the objective?
 Objectives of Trade unions

• Improvement of economic status of workers

• Shorter working day
• Improvement of working and living conditions
• Income security(pensions/provident fund,
compensation for work injuries and unemployment)
• Better health, safety and welfare standards
• Respect and humane treatment from colleagues and
supervisors
• Greater voice in Industrial administration and
management
• Improvement of political status
 Objectives of trade Unions
• Trade unions are essentially organizations for the
protection and promotion of the interests of their
members in particular and workers in general
• The primary function of trade unions is to protect
the workers against the excesses committed by the
employers and to meet the need of workers.
• One Supreme goal is protection and promotion of
the interest of working class- all objectives flow
from this supreme goal
 Objectives of trade Unions

• Objectives to be achieved by different union – why

different in terms of their need of particular
situation, changing times and different levels of
workers consciousness(perception)
• Differentiate between trade unions with respect to
their objectives, method , policies in order to be
successful - but these differences are united by one
common goal - protection and promotion of the
interest of working
 Objectives of trade Unions
• Generic goal protection and promotion of the interest
of working consist of specific objectives;
• Improved economic status
• Shorter working day
• Improved working and living conditions
• Income security , example: pension , provident fund ,
compensation for work injuries and unemployment
• Protection against lay off , retrenchment and
unemployment
• Better health , safety and welfare standards
 Objectives of trade Unions

• Selig perlman- Was an Economist and labour historian

 Book : A theory of the labour movement
 Theory of scarcity consciousness
• According to him- trade union growing out of the
workers day to day experiences and have only
objectives of protecting the jobs, improvement in
working conditions ( home- grown philosophy-
(belonging to one's own particular locality or country )
• Such trade unions not concerned with political
ideologies- It is the outside intellectuals , marxist ,
efficency experts impose political ideologies
 Under the capitalist system of government-
Built inequality

Working class/ Capitalist/ ownership

proletariat class bourgeoisie
Labour power- sold Treat labour class as a
this labour commodity
Surplus labour

Marxism ---Marx concluded:

Created Inherent Conflict
between two
 Objectives of Trade Unions
• Improved economic status
• Shorter working day
• Improvement of working and living conditions
• Income security
• Obtaining job security
• Protection against layoff
• Retrenchment
• Victimization
• Industrial democracy
 Labour rights
• http://
scroll.in/article/814068/rss-affiliated-trade-union-
says-it-will-join-protest-against-modi-government
• RSS-affiliated trade union says it will join protest
against Modi government
• Bharatiya Mazdoor Sangh senior officials said the
union isn't hopeful about the outcome of a
ministerial meet on August 16.
 Revision
• Objectives of Trade Union
• Legal and other handicaps of early trade
unions
L3 Methods adopted by Trade
Unions & Trade Union Activities
 Situation
• To protect female employees trade union
adopted several methods can you suggest any
one method .
• So to resolve the problem faced by female
workers.
 Methods of trade unions to achieve their goals
• What do you think in this case
Classical description Trade union methods by webbs

• Mutual insurance
• Collective bargaining
• Legal enactments/ political actions
• Strikes
• Bandhs
• Gheraos
• Boycott
• Lockout
• Picketing
 Methods of trade unions to achieve their
goals
Classical description Trade union methods by webbs;
• Mutual insurance – method dependent upon rich
or poor trade unions- benefit improving working
conditions, promoting goodwill maintaining
solidarity (mutual interest)
Great Britain – strong tradition of opting mutual
insurance for the benefit of their members
Indian trade unions lacked behind as their counter
part in Great Britain and USA, because of poor
financial position
 Methods of trade unions to achieve their
goals
Classical description Trade union methods by
webbs;
• Mutual insurance-
 Trade union part of income have been spending
for improving conditions of their members
 Promoting goodwill
 Dependent upon income of trade union
 Rich trade unions- better in position
 Poor trade unions- worried about their finances
 Mutual insurance- funds come from

• Membership subscriptions
• Special levies(impose (a tax, fee, or fine).
• Donations
 Methods of trade unions to achieve their goals

• Collective bargaining- Bargaining with the employer over

the terms and conditions enter into agreement
• Method emphasized ;after secured from law and became
free from criminal and civil disabilities that suffer in early
stages
• At that stage collective action on part of workers treated
illegal - doctrine of restraint of trade charge of breach of
contract
• George W. Taylor: “No one should have any doubt about
the unlikelihood that collective bargaining can be
maintained in the absence of right to strike and lock-out”
 The use of collective bargaining

Trade union leaders engage in dialogues with employers

which sees them actually bargaining with employers on

issues like wage increment. Over the years collective

bargaining has been used by trade unions all over the

world to negotiate for higher wages for their members.

Methods of trade unions to achieve their goals

• Political Action/legal Enactment

 Political actions are ;exerting pressure
 Welfare amenities instance(case) of state
 Securing control over industry parties
 Setting labour parties
In great Britain – Trade union congress(TUC)
established the independent labour party
 Activity
If you will get the chance to resolve workers
query which method you would like to adopt
and why?
 Out of three methods
 First name them
 What is difference between layoff and lockout?
• lock out is when the employer refuses to give
employment to workers because of closing of place of
employment or suspension of work,
 layoff employers refuses to give employment because of
shortage of coal, power and raw material.
• lockout is for not accepting the demand of employer
discuss with workers
 layoff is the trade reasons beyond the control of employer
• lockout due to dispute and work continue during the
period of dispute
 layoff concerned with the disputes with the workmen.
 The restriction of labor supply

Trade unions intentionally make it difficult for

new entrants to join their occupation
 The use of strikes and demonstrations

Sit-down strike is a type of strike involving workers actually going to work but not

working. As the name implies, the workers just sit down at their various places of work

without performing the duties that they are supposed to do.

The second type of strike action is where workers go to work and deliberately perform

only a fraction of the work that they are supposed to do. The workers make sure that the

work that they do is equivalent to the amount of money being paid to them by their

employers.

The third type of strike action is the actual strike action, which sees workers completely

staying away from work.

 Trade Union Activities
• Economic activities- To exercise economic pressure on employer like engaging in
collective bargaining, demonstration, strike, boycott etc.
• Political activities-
• Carrying political education of members.
• Obtaining political power and influence through developing political parties of
their own or supporting some political party.
• Protesting against government decisions
• Social activities
• Education scheme for members
• Running cooperatives
• Providing housing facility
• Engaging in cultural activities
• International activities
• Participation in ILO
• Sending monetary and other help to workers of other countries during period of
need.
Trade Unions

are voluntary
organizations
 Trade Unions

Primary function is to protect the interests of

workers against discrimination and unfair labor

practices