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Trade Unions in Service Sector

Group 9 Ramavtar Meena Rashik Gupta Sarthak Agarwal Shailesh Kumar Shibashish Behera Shishir Kumar Kisan Shreya Bhatnagar Vinay L

PGP27315 PGP27316 PGP27317 PGP27318 PGP27319 PGP27320 PGP27321 PGP27330

Trade Unions
A 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 condition on the conduct of any trade or business

2/27/2012

Group 9

2

Government Regulations
‡ Trade Unions Act, 1926 deals with registration, rights, liabilities, responsibilities and fund utilization of trade unions ‡ Industrial disputes act, 1947 is applicable to the companies with more than 100 employees ‡ Provisions of factories act, 1948 ‡ Apart from this there are more than 55 central labor laws and 100 state labor law
2/27/2012 Group 9 3

Objectives of Trade Unions ‡ Negotiating machinery ± Working Conditions ± Wages ‡ ‡ ‡ ‡ Discipline Employee employer relationship Platform for participation in management Prevent employee discrimination 2/27/2012 Group 9 4 .

General Union: Represent workers from many unions or companies. Group 9 5 ‡ ‡ ‡ ‡ ‡ ‡ 2/27/2012 . Industrial Unions: All workers in the same industry are organised into the same union regardless of skill and trade.Types of Unions ‡ Craft Union: Unify workers in a particular industry along the lines of craft or trade that they work in by class or skill level. Open Union: Union with limited restrictions on workers that can join. Closed Union: Union with restricted membership to a certain defined category of employees. White-Collar Union: Union of white collar employees. Blue-Collar Union: Union of blue collar employees.

Levels of Participation National Level Regional Level Local Level Organization Level 2/27/2012 Group 9 6 .

Case Examples 2/27/2012 Group 9 7 .

Life Insurance Corporation of India ‡ National Federation of Insurance Field Workers of India (NFIFWI) ‡ National Level Union representing 21000 development officers of LIC ‡ Non-political in nature 2/27/2012 Group 9 8 .

social and cultural life ‡ To secure equality of rights and prevent discrimination among employees ‡ To develop healthy relationship between employees and employers ‡ To foster a spirit of service to policy-holders ‡ To compensate member or members for loss arising out of trade disputes ‡ To develop ways and means for spread of insurance education 2/27/2012 Group 9 9 .Objectives of NFIFWI ‡ To foster a spirit of co-operation and comradeship among members ‡ To secure improvement of working and living conditions of its members ‡ To safeguard the interest of members by all legitimate. peaceful and democratic means ‡ To represent its members in front of management and government ‡ To conduct trade disputes on behalf of its members ‡ To prepare members to play a legitimate role in their national.

Constituent Structure NFIFWI Central Federation Zonal Association Branch Association Divisional Association Federal Council Central Secretariat National Executive Office Bearers Zonal Council Zonal Executive Council Office Bearers Divisional Council Divisional Executive Council Office Bearers 2/27/2012 Group 9 10 .

8 lakhs and also increased the housing loan to Rs. Grooming expenses.5% ‡ Demands to Personnel Department ± Third option for Development officers who have not opted for pension ± Grant of full pension for employees with 20 years service ± Payment of Marketing expenses.Issues Faced by Union ‡ Recognition of NFIFWI ‡ Improvements in GOIB(Graded Impact on Incentive Bonus) scheme ± Performance Linked Lump-sum Incentive. special area allowance ‡ Favorable Result ± The management increased the Group Insurance to Rs. previously a part of cost for calculation of Incentive Bonus. removed after negotiations by NFIFWI with the management ‡ Seeking an offline option to compulsory online Test for agents ‡ Demanding a wage hike of 40% while management is offering 17.13 Lakhs and also granted second loan 2/27/2012 Group 9 11 .

and 7500 stations .500 K.INDIAN RAILWAYS World s fourth largest rail network Having workforce of 14 lakhs regular employees and 3 lakhs casual employees make it world s second largest employer Having trace of 114.M.

Organizational Structure ‡ Divided into 17 railway zones ± Each zone headed by General Manager (GM) ‡ Zones further divided into 68 divisions ± Each division is headed by Divisional Railway Manager (DRM) ‡ Divisions further divided into stations ± Each station is controlled by station Superidendent 2/27/2012 Group 9 13 .

Organizational Structure Indian Railways Gazetted Employees Non-Gazetted Employees Group A Group B Group C (60000 employees) Group D (80000 employees) Selection through Indian Civil Service Examination conducted by UPSC 2/27/2012 Group 9 Selection through 19 Railway Recruitment Boards 14 .

zonal and divisional level ‡ Office bearers are elected by members of the trade unions ‡ Elections are conducted by the unions and they inform names of the office bearer to the respective units of the railways 2/27/2012 Group 9 15 .Trade Union in Indian railways ‡ Group A & Group B: ± Federation of Railway officers associations (FROA) ‡ Group C & Group D: ± National Federation of Indian Railway men established in 1953 ‡ Affiliated to International Transport Worker s Federation (ITF) and International Labour Organization (ILO) ± All India Railway men s Federations established in 1924 ‡ These unions are affiliated with trade union like Indian National Trade Union Congress (INTUC) ‡ Each union has its functional units at board.

Industrial Relations ‡ Divisional level industrial relations are handled by a director level officer ‡ Zonal level industrial relations are handled by a chief personal officer at joint secretary level of IRPS cadre ‡ Board level IR issues are handled by member staff of Railway board along with other principal secretary level officer of IRPS cadre ‡ Permanent Negotiation machinery (PNM) ± ± ± ± To maintain contact with trade unions Six PNM to be conducted at divisional level with each trade union in a year Four PNM to be conducted with each trade union at zonal level in a year Two PNM to be conducted at Railway Board level in a year ‡ Participation of Railway Employee in Management (PREM) ± Meeting held between management and trade unions at all levels of the organization ± Agenda .Management takes employee s views on issues regarding operations 2/27/2012 Group 9 16 .

Bharat Sanchar Nigam Limited Conglomeration of several Trade Unions NFTE BSNLEU BTEU FNTO SNATTA BDPA SNEA TEPU AIBSNLEA .

Bharatiya Telecom Employees' Union (BTEU. CITU) 2. National Council of 10 other BSNL employees' unions. A Joint Consultative Machinery exists at all levels (district. operations. Employment security and job reservations 2/27/2012 Group 9 18 . sympathetic to AITUC) 4.The Main Unions in BSNL are: 1. Meetings are bi-monthly at circle level and quarterly at national level. human resources. circle. BMS) 5. INTUC) 3. Federation of National Telecom Organisation (FNTO. Wage settlements 3. Privatisation of BSNL 2. The main issues for telecom employees of BSNL are: 1. BSNL Employees' Union (EU. area. National Federation of Telecom Employees (NFTE. national). The agenda of the committees are all matters pertaining to policies.

it shall function through the following bodies :     2/27/2012 Central Head quarters (CHQ) Circle Head Quarters Divisional / District Branch Local Branch Group 9 19 . the Central Trade Union ‡ CIRCLE WISE: AP. Maharashtra. For the administration of the affairs of the union.BSNL Employees Union (BSNL EU) ‡ AFFILIATION: The Union is affiliated to Centre for Indian Trade Unions (CITU). Punjab & Orissa ‡ ORGANISATION: The structure of the union shall be unitary in character. WB. Gujarat. Kerala Karnataka. Tamil Nadu.

educational and economic upliftment of the members  To safe guard and promote interests. 2/27/2012 Group 9 20 . cultural. rights and liberties of members through peaceful bilateral settlement of problems  To seek permanent solution of outstanding problems and promote healthy industrial relations in services without any class consideration ‡ GRANT OF RECOGNITION:  Recognition for Circle will be granted by CHQ  Recognition for District (SSA) and local branch will be granted by Circle or CHQ.‡ AIMS & OBJECTIVES:  To organize and unite the persons employed in BSNL  Oriented Trade Union movement amongst the BSNL workers aimed at effective and efficient organization for prosperity and progress  To promote social.

pensioners  CITU and AITUC are partners in the Left alliance nationally but split in BSNL 2/27/2012 Group 9 21 . contract employees.‡ Problems Encountered  Multiplicity of unions leading to lower membership per union and subsequent financial hiccups  Constant switching of alliances leading to increased agitation among workers     1st verification: Independent unions 2nd verification: EU & FNTO against NFTE & BMS 3rd verification: EU & FNTO split 4th verification: EU against FNTO & NFTE  Differences over promotion. absorption of daily wagers.

Assam. Bihar. compensation or legal assistance for distressed employees. Orissa. ± To work in co-operation with other trade unions to work towards an objective that is inconsistent with the spirit of Indian Trade Union Act. 1926 2/27/2012 Group 9 22 . Himachal Pradesh. Punjab. Uttaranchal etc. ± Provide funds for relief. The North-Eastern States. ‡ Objectives ± To protect and promote the interests of all members by legitimate and constitutional means ± Proper representation of the employees on the Board of Directors.SBI Staff Association ‡ Offices ± Headquarter: Kolkatta ± Branches: West Bengal. Haryana. Rajasthan. UP. J&K. Orissa.

Structure Centre Gen Council Circle Circle Gen Council Unit Unit Committee Central Committee Circle Committee Executive Committee Disciplinary Action Committee Grievance Committee Executive Committee Disciplinary Action Committee Grievance Committee 2/27/2012 Group 9 23 .

SBI Staff Association ‡ Prime Roles ± ± ± ± Presidents Secretaries Treasurers Honorary Chairman and MD of SBISA Co-Op Bank ‡ Election Process ± Democratic Process ± Lower level committee elects the higher level committee ± Elect members of some of the same level committees. 2/27/2012 Group 9 24 .

‡ Secretaries ± Look after the affairs of the union from his level ± Co-ordinate between other committees in his level and the ones under him ± Scrutinize the books and accounts of all the committees under him. bills or orders for payment of money 2/27/2012 Group 9 25 . ‡ Treasurers ± Handling the accounts of the union from their level ± Submission of account reports to council and committees ± He shall grant receipts and countersign vouchers.Roles and Responsibilities ‡ Presidents: ± Watchful eye over the general affairs of the union ± Along with the secretaries they are to address the concerns of lower hierarchy level s concerns.

crafted in the 15th session of the tripartite Indian Labor Conference ± Sets the guidelines for recognition of unions and grievance addressal procedure for the unions.Association's success ‡ Grievance Redressal System of SBI ± The Scheme for Grievance Redressal System (GRS) has been framed under Section 43 of the State Bank of India Act. 2/27/2012 Group 9 26 . 1955 ± The system is in place to address the grievances of individual employees ‡ IR & Recognition of Unions (SBI) ± Guided by Code of Discipline in Industry .

Aviation Sector ‡ Spurred by the labor dispute in Jet Airlines in 2008 ‡ Continued strikes hit the service sector badly ‡ Jet lost about Rs 400 crore in a 5 day strike ‡ This incident was followed by Air India strike of 4 days: lost about Rs 100 crore ‡ So country s 2500 pilots along with other employees decided to have a trade union 2/27/2012 Group 9 27 .

formed in 1920) 2/27/2012 Group 9 28 . Spicejet.IndiGo and GoAir do not have any union at any level but have welfare associations ‡ They all are affiliated to AITUC (All India Trade Union Congress.Trade Unions ‡ National Aviation Company of India Ltd (Nacil) is represented by three unions: ± Aviation Industries Employees Guild (AIEG) ± Indian Commercial Pilots Association (ICPA) ± Indian Pilots Guild (IPG): over 25000 employees are part of this ‡ Kingfisher.

ground staff and cabin crew. Service Engineers as well as the officers came together at Mumbai and decided to form the Core Committee of Joint Forum of Air India and Indian Airlines 2/27/2012 Group 9 29 . 10 unions representing the different sections of the employees of Air India. Aircraft Engineers. Radio officers and Flight officers.Structure of AIEG ‡ Pilot Representative ‡ Cabin Crew Representative ‡ Airport Employees Representative ‡ In June 2011. aircraft technicians. including. pilots.

Electoral process ‡ Chief Holding positions: (Union and regional) ± ± ± ± President Secretary Assistant Secretary Treasurer ‡ Democratic: Members cast their votes on predecided dates .

Issues dealt with ‡ Salary: Non-payment of PLI which accounted for 50-80% of salary ‡ Delay in salary payment: major role during no pay no work agitation by Air India employees ‡ Integration of employees : when Indian Airlines and Air India merged in 2007 ‡ Encourage other private airlines to become a part of the union 2/27/2012 Group 9 31 .

Problems faced by trade unions ‡ Political influence ‡ Fragmented Structure ± Multiple unions ± Unstable relationship ± Power struggle can lead to violence ‡ Illiteracy and lack of training ‡ Lack of interest ‡ Narrow support and coverage ± More than 90% of workforce in unorganised sector ‡ Exploitation on basis of caste or religion 2/27/2012 Group 9 32 .

Recommendations ‡ One union per organization ‡ Develop internal leadership ‡ Recognition from top management ‡ Train employees regarding importance of unions ‡ Paid Union Officials 2/27/2012 Group 9 33 .

Thank You 2/27/2012 Group 9 34 .