By- Nishant Gaur

Trade Unions
An organisation formed by workers to protect the
interests of their members.
Definition of Trade Unions
1. “A trade Union is the continuous association of wage
earners for the purpose of maintaining or improving the
conditions of their working lives.”
 
2. A labour union or trade union is an organization of
workers formed to promote , protect and improve
through collective action, the social , economic and
political interest of its members.
DEFINITION
Trade union is an association of employees . 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 (like better wages, better working and
living conditions), and social (such as educational,
recreational, medical, respect for individual)
benefits to members.
Features of Trade Union
• The trade union is voluntary association: Trade
union is not a compulsory association but voluntary
association of workers, who may be in one or more
industries and occupations.

• Common interest: There is certain common interest

of the member workers. The leader of the trade union
is supposed to pursue and protect the economic and
other interest of the members which leads to their
welfare.
Features of Trade Union
• Collective action: After thorough discussions in the
meeting of trade union the leader of the union takes
collective steps to press their demand before the
management.

• Permanent & continuous association: A trade union is

a permanent and continuous organization. They
persistently pursue their purpose conceive of their
purpose as one, which is not merely immediate but
continuous and long term as well. They do not expect to
attain their purpose in a day because they anticipate and
contemplate a continuing stream of additional objectives
to be adopted from time to time.
Features of Trade Union
• Association engaged in securing economic benefits: Trade
unions attempts is to secure control of supply of labour in one
or more markets and to maintain that control as a mean of
fixing the price of labour as well as the conditions under which
they works.

• The origin and growth of trade union have been

influenced by a number of ideologies: The socio economic
and even political movement have influenced trade union in
one or other way.

• Other benefits: Trade union is not only confined to economic

benefits, but other benefits such as cultural, political, social and
psychological are also within their broader preview.
Objectives of Trade Union
• To secure fair wages to workers.
• To safeguard security of tenure and improve conditions of service.
• To enlarge opportunities for promotion and training.
• To improve working and living conditions.
• To provide for educational, cultural and recreational facilities.
• To co-operate in and facilitate technological advancement by broadening the
understanding of workers on its underlying issues.
• To offer responsive co-operation in improving levels of production and productivity,
discipline and high standards of quality and
• To promote individual and collective welfare.
Why Worker Join Unions
Greater Bargaining Power
Make their voice heard
Minimize Discrimination
Sense of Security
Sense of Participation
Sense of Belongingness
Background Factors
Methods of Trade Union
Mutual Insurance
Collective Bargaining
Legal Enactment
Direct action
Methods of Trade Union
Collective Bargaining—It is the method where trade
unions and the representatives of management sit
together and resolve their disputes or negotiate an
agreement with the management and other benefits.
This method has been used by the trade unions all
over the world.
Methods of Trade Union
Mutual Insurance—Under this method, trade unions
establish a fund. They maintain such fund by
collecting money from their members. Such fund is
utilised by the unions in carrying out certain welfare
plans for the benefit of their members. They also
financially assist their members in emergency e.g., in
case of accident, illness or during strike. This method
is feasible only when their membership is large
enough and the financial position of unions is strong
Methods of Trade Union
Legal Enactment—Trade unions do project the
interests of their members. One of the method is
demand for the honest implementation of various
provisions of different Acts concerning them and offer
suggestions to the government for their amendment
wherever necessary. For this purpose they take up
political activities and get some of their nominees as
members of Parliament and Legislature.
 
Methods of Trade Union
Direct Actions- When the trade union fail to achieve
their goals by the methods described above, they
resort to direct actions. It is manifested in several
forms like strikes , gheraos, bandhs, etc. Since this
methods is harmful to all concerned in terms of
production , loss of wages, scarcity or non-availability
of goods etc , every method should be made to avoid
to use this resort
FUNCTIONS OF TRADE UNIONS

Political
Militant function
One of the main aim of the unions is to secure better
conditions of work and employment and more
recently, the trade union have an aim to secure some
share of productivity gains and participation in the
management or even control over industry. When the
union fail to accomplish these objectives by the
method of negotiations they adopt aggressive
methods and put a fight with the management in the
form of strike, boycott etc.
Fraternal function

A trade union is also a association or a mutual benefit

organization supporting the member out of their own
funds during the period of work stoppage due to
strike or lockout. It also provides financial assistance
to the member during the period when they are unfit
for their work because of illness or employment injury
or when they are temporary unemployed.
FUNCTIONS OF TRADE UNIONS
Some another function of the trade unions may be
summarized as under:

1) Intra-mural activities: - Such functions of unions

lead to the betterment of employment condition of
employees such as adequate salary, working conditions
etc. by collective bargaining, negotiation etc.
FUNCTIONS OF TRADE UNIONS
2) Extra-mural activities: -Such activities help the
employee to maintain and improve their efficiency such
as promote friendly relation, education and culture
among members.
FUNCTIONS OF TRADE UNIONS
3) Political activities: - That may be related to the
formation of a political party or those reflecting an
attempt to seek influence on public policy relating to
matter connected with the interest of members.
INDUSTRIAL ACTION BY UNIONS
Work to rule: where employees will only do the
exact work they were employed to do
Go Slow: where employees do their work but do
so as slowly as possible
Overtime ban: where employees refuse to do any
overtime required by their employer
Strike: where workers stop working . If the strike
is official it will have the backing of the union.
CLASSIFICATION BASED ON AGREEMENT
Closed Shop: Union has the sole responsibility and
authority to recruit workers.
Union Shop: All recruits must join the union within
prescribed time.
Preferential Shop: Union member gets preference in filling
vacancy.
Agency Shop : Non- union member has to pay sum
equivalent to subscription fee to continue employment.
Open Shop: No compulsory membership.
Types of Trade Union
The union can also be classified according to
variations in the composition of the members. On this
basis unions have been classified in four categories:
Craft union
Industry union
General union
Staff Union
Types of Trade Union
Craft union: It is an organisation of workers
employed in a particular craft and trade or in a single
or few occupations. Such organizations link together
those workers who have similar skills, craft training
and specialization, aiming to safeguard their interest.
 
India Pilot Guild, The International wood Carvers
association
Types of Trade Union
Industrial union: It is an organisation of workers
which links all craftsmen and skilled workers in any
industry. It is organized upon the industry wise basis
rather than the craft wise basis.
 Rashtriya Mill Mazdoor Sangh, Girni Kamgar Union
at Mumbai
Types of Trade Union
Staff union: The term staff union is popularly used to
both craft and industrial union. It organizes the
workers on the basis of craft working in same
industry.
Types of Trade Union
General union: It is an organisation which covers
various industries and labourers having different
skills. They have numerical superiority (large
membership), for they are open to all classes of
workers and this is the source of their strength.
The Indian National Trade Union Congress
The All India Trade Union Congress
The Hind Mazdoor Sabha
Center for India Trade Union
Structure of Trade Union
Plant Level
Local Level Federation
Regional Level Federation
National Level Federation
TRADE UNION ACT 1926
The Trade Union Act 1926 legalises the formation
of trade unions by allowing employees to form
trade union.
It allows trade union to get registered under the
Act.
 Registration provides legal status to the trade
union and it becomes body corporate.
Difference between
Registered and an Unregistered Trade Union
1. A Registered Trade Union is a legal entity separate
from its members. Hence it can hold property, enter
into contracts , sue and be sued in its own name.
A Unregistered Trade union is not a legal entity
separate from its members. Hence it cannot hold
property, enter into contracts, sue and be sued in its
own name.
Difference between
Registered and an Unregistered Trade Union
2. A registered trade union is required to observe number of
formalities such as:
Maintaining books of accounts and the list of members.
Keeping books and list open for members inspection.
Submitting annually to the Registrar duly audited
statement of receipts and expenditures and assets and
liabilities.

An unregistered trade union can ignore these formalities.

Difference between
Registered and an Unregistered Trade Union
3. A registered trade union enjoys number of
statutory rights:
Use its general fund for certain specific purpose.
Representation of workmen to work committee.
Immunity from punishment for non criminal
conspiracy(not amounting to an offence) .

No such rights are available to an unregistered

Trade Union.
Size of Union in India
Presently 75% of Trade Union have members less
than 500.
Union with membership of 2000 or more constitute
only 4%.
Indian figures are very less when compared with size
of US & UK that is in millions.
 Factors Responsible for the small
Size of TU
Ego of Trade Union Leaders-Many trade union leaders
  are egoistic in nature. Just to satisfy their ego they
form new trade union and compete with others.
Minimum membership by Trade Union Act
Uneven growth of Trade Unions
Multiplicity of Trade Unions
Absence of paid office Bearers
Criteria for recognition of Trade Union
1. Where there are more than one union, a union claiming
recognition should be functioning for atleast one year
after registration.
Where there is only one union, this condition will not
apply.
2. The membership of union should cover atleast 15% of
workers in the establishment concerned.
Membership should be counted for those who have paid
their subscription for atleast 3 months during a period of 6
months.
3. A union may claim to be recognized as a representative
union for workers in all establishment in an industry if it
has membership of atleast 25% of the workers of that
industry in that area.
Criteria for recognition of Trade Union
4. When a union has been recognized, there should
be no change in position for a period of 2 years.
5. When there are several unions in an industry or
establishment, the one with largest membership
should be recognized.
6. Only unions which observes the code of discipline
are entitled to recognition.
RIGHTS OF RECOGNISED UNIONS
1. The right to raise issues with the management,
2. Right to collect membership fees within the
premises of the organization,
3. Ability to put up a notice board on the premises
for union announcements,
4. Nomination of its representatives on committees
formed by the management for industrial
relations purposes as well as in statutory
bipartite committees, joint management
council, Grievance committee. 
Contd
5. For the purpose of prevention or settlement of
industrial dispute:
Ability to hold discussions with employees at a
suitable place within the premises
Right to discuss members' grievances with
employer,
Ability to inspect beforehand a place of
employment or work of its members
Finance-sources of income
 
Subscription fee- Each trade union member pays a
subscription fee. The amount differs among union
and it is normally set at different according to the
amount earn. This is a major source of trade union
finance.
Finance-sources of income
 

In exchange for subscription fee , members receives

benefits of representation , negotiation, protection
and other services from the trade union. The
subscription fee may be directly deducted from
employees salary and must be paid periodically.
Finance-sources of income
 
Donations and Grants- This is a secondary source of
finance. It is not obtained periodically and it is not an
obligation for individuals who provide donation.
Companies or wealthy individuals who have trust in
trade union activities . Obtaining donations highly
depends on trade union reputation and nature of its
activities.
Finance-sources of income

Funded by political parties – In India trade union are

also funded by political parties . Political parties like
to fund trade union activities with political and social
motives.
Ways of Improving TU Finances

Large enrolment of members

Strict and regular collection of union dues
Increase in the rates of membership fee
Adoption of the check off system – the employer
undertakes on the basis of the collective agreement or
other devices , to deduct union fee from worker’s pay
and transfer the same to the union
PROBLEMS CONFRONTING UNIONS
Multiple unions
Uneven Growth ( state to state, Industry to
industry)
Lack of union finances
Low membership figures
Closure of unviable units.
Outside Leadership
Indifferent attitude of workers.
MEASURES TO STRENGTHEN TRADE UNION MOVEMENT
IN INDIA
United labor Front- One union in one Industry
Paid Union Official
Development of leadership within- Internal
leadership
Improvement in union finance-Membership fees
Recognition of Trade Union
Future Role
Historically, unions in our country have been playing
the role of agitators and bargainers. The thrust of
their activities has been towards the economic well
being of the workers. In future unions should be
encouraged to make a thrust towards the
psychological and social well being of the workers.
Some important areas in which they can be asked to
participate as follows:
Future Role
Communication: Unions can pass on greater and
more varied information to the workers about
themselves and the organization. At present they only
communicate on service conditions and related issues
under the belief that workers are not interested in
receiving information on other issues. This is wrong.
Future Role
Counseling: Union can play a very positive role in
providing counseling services to employees regarding
the social evils.
Education and training: Another important area in
which unions can play a development role is
education of workers. Unions can help them acquire
new human relations and work-related skills such as
skills of collaboration, empathy, collective action, etc.
Future Role
Family and vocational guidance: Unions can help
workers families in several ways. For example, they can
provide guidance in respect of the education and career
of workers children. They can help in creating jobs for
the wives of workers and so on.
Welfare: Unions can help management in developing
innovative welfare schemes for employees such as
workers’ cooperatives, workers banks, nursery schools,
etc.
Future Role
Research: Unions can play a very significant role in
generation of data in various dimensions of workers
needs aspirations, standard of living, etc. For this
purpose they can launch research projects either
independently or in collaboration with academic
institutions.