PRESTIGE INSTITUTE OG

MANAGEMENT & RESEARCH

INDUSTRIAL RELATIONS
TOPIC – TRADE UNION AND ITS TYPES

PRESNTED TO –
PROF. CHANDA GULATI
Presented By – Bhoomi Soni
Shakti P.S Tomar
Indra Pratap Singh Kaurav
Aman Shrivastava
 WHAT IS TRADE UNION

 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 labour practices.
 MEANING OF TRADE UNION

• Trade unions are voluntary organisations formed to promote and protect the interest of the
workers through collective action.

• Formed to protect and promote the interests of their members

• Primary function is to protect the interests of workers against discrimination and unfair
labour practices Objectives:

• Representation (Workers’Interests) Negotiation (Collective Bargaining)

• Voice in decisions (Lay off, Retrenchment) affecting workers

• Member Service (Education, Training, Welfare, Discounts, Loans)

 FUNCTIONS OF TRADE UNION
General Functions:
Functions of a trade union as per Indian Trade Unions Act 1926, include:
i. Achieving higher wages and congenial working and living conditions for its members.
ii. Exercising control of industry by workers.
iii. Increasing the resistance power of employees through the weapon of collective
bargaining.
iv. Protecting workers against victimization and injustice of employers.
v. Enhancing the status of workers as partners of industry and citizens of the society by
demanding worker’s participation in management.
 CONTINUE…
2. Special Functions:
The following are the special functions of trade unions:
i. Protective Function:
• These functions encompass protecting the interest of workers such as hike in wages, getting more
well-being measures, job security, etc., through collective bargaining and direct action.
ii. Social Function:
• It covers rendering social obligations like members’ education, training, etc.
iii. Fraternal Function:
• Assisting the workers in getting financial and non-financial assistance during the period of strike
and lockout getting medical facilities during sickness and casualties facilitating provision .
 CONTINUE…

iv. Political Function:
• Affiliation of union to a particular political party, helping political parties in increasing their
enrolment, collecting donation, canvassing during election and seeking the help of political
parties during strike and lockout are political functions.
v. Ancillary Functions:
• a. Welfare Activities – Trade unions undertake welfare activities like purchasing plot for workers,
construction of housing quarters, establishment of cooperative societies, credit societies,
organizing training activities, etc.
• b. Education – Trade unions arrange for getting educational facilities to its members and their
family members.
 WHY DO PEOPLE JOIN TRADE UNION

 Greater Bargaining Power

 Minimize Discrimination

 Sense of Security

 Sense of Participation

 Sense of Belongingness

 Platform for self expression

• Betterment of relationships
 PURPOSE OF TRADE UNION

 Employment Protection and Job Creation.

 Economic Protection.

 Social Status - Identity.

 Political Role - Democratic Institution n Societal Obligation - Transformation.

 Competitiveness / Sustainable Development.

 IMPORTANCE

 For industrial peace

 Decisions taken through the process of collective bargaining and negotiations between
employer and unions are more influential
 Effective communication between the workers and the management
 Economic development

 Recruitment & selection

 Discipline among workforce
 Settlement of ID in rational manner
 TYPES OF TRADE UNION
1. Craft Unions:
• If the workers of the same craft or category of the job form into a union, that union is called
‘craft union’. These unions are called as – ‘horizontal unions’. The basic logic behind the
formation of such unions is that the workers belonging to the same craft do face similar
problems-mostly non-managerial personnel form such unions.
• Examples of such unions are Drivers’ Associations, Signaling Staff Union in Indian
Railways, etc.
 2. General Unions:
• If the workers of any industry, any region and of any job or occupation form into one union
in order to protect the overall interests of the workers, such unions are called general
unions.
 CONTINUE…

 3. Industrial Unions:

• If the workers of different categories form into a union, that union is called industrial
union. These unions are also called “vertical” unions. The logic behind the formation of
these unions is that workers of the same industry have the common bend and they are
governed by same rules and regulations, and are administered by same management.

• Moreover, the problems of all the same industry are more or less common. The
importance of these unions has been increasing in recent times.
 CONTINUE…

 4. Federation and Confederation:

• Industrial unions, either of same industry or of the different industry may form into an
association in order to improve trade union unity/strength. Such unions of unions are
called Federations. During the critical situations, unions/federations in different
industries may resort to concerted action without losing their individuality.

• In such situations, the federations form into an Association and such an association is
called confederation. For example, Federation of Indian Railways, P&T, Central
Government Employees may form into a confederation.
 CONCLUSION

Trade union movement has a bright future, provided some of the suggestions
mentioned above are followed.

It is highly satisfying that the government is attaching grear importance to the
development of trade unionism on healthy lines.

 Trade Unions are basically associations of workers and are formed with the aim of protecting
the workers against exploitation by their employers and also improving their living conditions.