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Module V (iii)
"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.
Trade Union means a combination formed for the purpose of regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers
- Trade Union Act 1926
Negotiation Representation Information and advice Member services .What do unions do? The main service a union provides for its members is negotiation and representation. There are other benefits people get from being members of trade unions.
. Both sides have a lot to lose. Industrial action takes different forms. Usually employers and employees will go to some lengths to avoid the costs of strike action to both groups.What is the role of trade unions in industrial disputes? Most 'collective bargaining' takes place quietly and agreements are quickly reached by the union and the employer. There are strict laws which unions have to follow when they take industrial action. Strikes are often in the news but are rare. A strike is only called as a last resort. Occasionally disagreements do occur and the two sides cannot agree. In these cases the union may decide to take industrial action. Conciliation and Arbitration Service (ACAS) is often used to help find a solution to a dispute which is acceptable to both sides. © Photolibrary Group The Advisory. It could mean an over time ban. a work-to-rule or a strike. Employees lose their salaries and may find that their jobs are at risk. Employers lose income because of interruptions to production or services.
Why do workers join unions Greater Bargaining Power Makes their voice heard Minimise discrimination Sense of security Sense of Participation Sense of Belongingness .
Reasons Why Employees Join Unions Protection Social pressure Compulsion Political beliefs Solidarity Tradition Pay and conditions Communication Health and safety .
g.g.g.g. Fire Brigades Union (FBU) Unions which recruit workers from all types of industries and with any level or range of skills e. Amicus – the Manufacturing Science and Finance Union (MSF) General unions White-collar unions Represent office workers e. Musicians union Union (MU) Industrial unions To represent the members of one particular industry e. National Union of Teachers (NUT) .Type of Union Description / Example Craft of skills To represent skilled workers e.
Four important central organisations of workers in India are 1. It is considered as the second largest union in India. It was formed in Calcutta by the socialists who neither approved INTUC nor AITUC. This union serves as the labour forum of Communist Party of India at present. 3. 2. The Indian National Trade Union Congress (INTUC). Every union affiliated to INTUC has to submit its dispute to arbitration after exhausting other means of settlement of disputes. The HMS was organised with a view to keeping its members free from any political or other outside interference. The Congress Party and the top congress leaders formed the INTUC like Nehru and Patel were associated with it. The Hind Mazdoor Sabha (HMS). The All India Trade Union Congress (AITUC). .
Those persons who were dissident socialist formed it.4. Centre for Indian Trade Unions (CITU). The Marxists separated from the AITUC in May 1970 and formed the CITU. 5. The United Trade Union Congress (UTUC). It functions mainly in Kerala and West Bengal. .
How are trade unions financed? Each trade union member pays a subscription. It may be collected by direct debit from a bank account. Some unions reduce the fees for unemployed members. protection and other services from their union. . People pay their subscription fees in different ways. It is usually between £5 and £8 a month. negotiation. deducted directly from wages or paid in cash or by cheque to a union representative or full time official. The amount varies from union to union and is normally set at different levels according to the amount people earn. In exchange. members receive the benefits of representation.
Objectives Representation Negotiation Voice in decisions affecting workers Member services (a) Education and training (b) Legal assistance (c) Financial discounts (d) Welfare benefits .
Functions of Trade unions (i) Militant functions (a) To achieve higher wages and better working conditions (b) To raise the status of workers as a part of industry (c) To protect labors against victimization and injustice .
(ii) Fraternal functions To take up welfare measures for improving the morale of workers To generate self confidence among workers To encourage sincerity and discipline among workers To provide opportunities for promotion and growth To protect women workers against discrimination .
by inculcating discipline among the workforce by enabling settlement of industrial disputes in a rational manner by helping social adjustments. unsatisfied and frustrated. Workers coming from different backgrounds may become disorganized.Importance Of Trade Unions Trade unions help in accelerated pace of economic development in many ways as follows: by helping in the recruitment and selection of workers. Unions help them in such adjustment. the new rules and policies. . Workers have to adjust themselves to the new working conditions.
Social responsibilities of trade unions include: promoting and maintaining national integration by reducing the number of industrial disputes incorporating a sense of corporate social responsibility in workers achieving industrial peace .Contd….
Trade Unionism In India Indian trade union movement can be divided into three phases. . * The first phase (1850 to1900) * The second phase (1900 to 1946) * The third phase (in 1947).
The Indian National Trade Union Congress.By 1949. four central trade union organizations were functioning in the country: The All India Trade Union Congress. The Hindu Mazdoor Sangh. and The United Trade Union Congress .
which aim at regularizing labor management relations. It also confers on a registered trade union certain protection and privileges.Trade Union Act 25 March 1926 The trade Unions Act. formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers. A Trade Union is a combination whether temporary or permanent. The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers. . 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining.
who constitute about 60 per cent of the workforce. growing 2% annually. and The urban informal sector (which includes the growing software industry and other services.Trade unions in India The Indian workforce consists of 430 million workers. Organized sector. . The Indian labor markets consist of three sectors: The rural workers. which employs 8 per cent of workforce. not included in the formal sector) which constitutes the rest 32 per cent of the workforce.
At present there are twelve Central Trade Union Organizations in India: All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) Indian National Trade Union Congress (INTUC) National Front of Indian Trade Unions (NFITU) National Labor Organization (NLO) Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress .Lenin Sarani (UTUC .LS) .
SUGGESTIONS FOR HEALTHY GROWTH OF UNIONS One Union Per Industry Paid Union Officials Development of Internal Leadership Recognition of Trade Unions Improved Financial condition .
fees and should be registered under the Registrar of Trade Unions Should be accompanied by a copy of the Rules of TU Certificate of Registration is issued as soon as TU has been duely registered under the Act .PROCEDURE OF REGISTRATION OF TRADE UNION At least 7 members should be present for an application It should in a prescribed form .
FUNCTION OF TRADE UNION To secure for workers better wages To safeguard security of tenure and improve conditions of service To increase opportunities for promotion and training To improve working and living condition To provide for educational cultural and recreational facilities To promote identity of interests of the workers To offer improved level of production and productivity discipline and high standard of quality To promote individual and collective welfare .
. With the coming of globalization. the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers because they had to compete in the international market.Industrial Relation Policy Prior to 1991.
Thus.With the advent of liberalization in1992. Now. introduced policies of voluntary retirement schemes and flexibility in workplace also increased. . the policy was tilted towards employers. the industrial relations policy began to change. globalization brought major changes in industrial relations policy in India. Employers opted for workforce reduction.
no outside affiliation.g.g. especially banking and information technology. Training and skill development is also receiving attention in a number of industries. The changes are as follows: Collective bargaining in India has mostly been decentralized. multi-skills. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. In the expansionary economy there is a clear shortage of managers and skilled labor. in other industries where the demand for employment is increasing are experiencing employment growths. .e. job rotation etc. HRM is seen as a key component of business strategy. pharmaceuticals. are also facing pressures to follow decentralization. Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e. Another trend is that the employers have started to push for internal unions i. Under pressure some unions and federations are putting up a united front e. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. especially in multi-national companies. but now in sectors where it was not so. banking. variable compensation. On the other hand. HR policies and forms of work are emerging that include.Contd….
Reasons for Joining Trade Unions Greater Bargaining Power Minimize Discrimination Sense of Security Sense of Participation Sense of Belongingness Platform for self expression Betterment of relationships .
allowances. non-economic causes The non economic factors will include victimization of workers. and conditions for work. indiscipline etc. leave and holidays without pay. . political factors. sympathetic strikes. working hours. unjust layoffs and retrenchments. ill treatment by staff members.Causes of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic causes The economic causes will include issues relating to compensation like wages. bonus.
the total number of disputes was 1097 which fell by more than half to 440 in 2006. In 1998.It is being estimated that this trend will continue in 2007 as well. .Analysis of Industrial Disputes The number of industrial disputes in country has shown slow but steady fall over the past ten years.
It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. .Strikes A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. they are said to be on strike. When workers collectively cease to work in a particular industry.
.According to Industrial Disputes Act 1947. a strike is “a cessation of work by a body of persons employed in an industry acting in combination. or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”. or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment.
profit sharing.Causes of strikes Strikes can occur because of the following reasons: Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays Bonus. Provident fund and gratuity Retrenchment of workmen and closure of establishment Dispute connected with minimum wages .
TYPES OF STRIKE based on Techniques Sit down Strike Slow Down Strike Work-to-rule Ordinary strike Political Strike Quickie strike .
Strike based on Generic Purpose Sympathetic strike Jurisdictional strike Political strike General strike .
This is different from a strike. in which employees refuse to work. It is declared by employers to put pressure on their workers. . Thus. a lockout is employers’ weapon while a strike is raised on part of employees.Lockouts A lockout is a work stoppage in which an employer prevents employees from working.
It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. Pickets are workers who are on strike that stand at the entrance to their workplace. such a step is known as picketing.PICKETING When workers are dissuade from work by stationing certain men at the factory gates. .
The purpose of picketing is: to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side .Contd….
GHERAO Gherao in Hindi means to surround It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. . The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins.
Contd… The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent. .
.Measures for Improving Industrial Relations Workers’ Participation in Management Mutual Accommodation The approach must be of mutual “give and take rather than “take or leave.” The management should be willing to cooperate rather than blackmail the workers.
Contd… Sincere Implementation of Agreements Sound Personnel Policies Government’s Role Progressive Outlook .
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