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By: Ms.Vibha Sharma Lect. (Mgt.)


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

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.

Trade union is an association either of employees or employers or of independent workers.

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, social benefits to members.



first trade union was started in 1877 in Nagpur


was this labour protest on an organized scale, through the support of some philanthropic personalities, that organized labour unions came to be formed

The first Factorys Act was passed in 1881 by N.M. Lokhode In 1919 Madras Labour Union was the first Union in India to be formed and established by B. P. Vadia Bombay Trade Union formed in 1975 under the leadership of Sorabjee Shapurjee Bengatee


At least 7 members should be present for an application

It should in a prescribed form ,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 duly registered under the Act


(a) (b) (c) (d)

Representation Negotiation Voice in decisions affecting workers Member services Education and training Legal assistance Financial discounts Welfare benefits

Other Objectives of Trade Unions

Wages salaries Working conditions Discipline Personnel policies Welfare Employee-employer relation Negotiating machinery Safeguarding organizational health and interest of the industry


Protect the interests of workers express the needs ,aspirations , wishes of workers NEO CLASSICAL Improving issues like tax reliefs , raising saving rates , etc., REVOLUTIONARY CHANGE IN THE SYSTEM Through violence , use of force

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

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. By inculcating discipline among the workforce By enabling settlement of industrial disputes in a rational manner By helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

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


Sectional bargainer Interests of workers @ plant,Industry,National level multiplicity of unions, Crafts union, White collar union , etc., Class bargainer interests of Particular class Agriculture Unions , Civil servants union Business oriented role consider interests of organisation as well - swim & sink together Unions as Change agent lead changes new role


on Ideology

Revolutionary Unions Destruction of existing one & creating new one Shift in power & authority & use force (LEFT)
or Welfare Unions Exchanges in existing Socio-political framework



Unions Advocates beyond working conditions Poverty elimination , Change in tax system


Based on Trade
Membership based on trade they represent Craft union(WEST) certified to do certain craft like pipe fitting , Carpentry not in INDIA & SRILANKA Range of workers represented in general union from all trades - in INDIA & SRILANKA BLUE-COLLAR WORKERS Workers on the Production floor or Outdoor Trades(Construction site) WHITE COLLAR WORKERS Employees in shops & Offices clerical & allied functions Industry they work Agricultural Labour union, Forest workers union


Closed Shop Workers should be join the union to become the employee Hartley Act 1947 bans this Still exist in US also called HIRING HALL Union Shop - All new recruits should the union within the period Preferential shop union members given preference in filling the vacancy Maintenance shop No compulsory membership b4 & after recruitment membership remains compulsory once chosen Agency Shop Non union member pays equal to member to continue employment Open Shop - No compulsory membership b4 & after recruitment - no unions at all

on agreement


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).

By 1949, four central trade union organizations were functioning in the country:

as result of a resolution passed by the organized workers of Bombay and the delegates which met I a conference on 31st October, 1920.

The All India Trade Union Congress-1920 The Indian National Trade Union Congress- 4th May, 1948, as a result of the resolution

passed on 17th November 1947, by the Central Board of the Hindustan Mazdoor Sevak Sangh, which was a labour leader on the Gandhian Philosophy of Sarvodaya


The Hindu Mazdoor Sangh or Bhartiya Mazdoor Sangh (BMS) - This union has been the The United Trade Union Congress-Some

outcome of decision taken by the Jana Sangh in its Convention at Bhopal on 23rd July, 1954.

trade union leaders of the socialist bent met together December 1948 to form a new central organization of labour, called Hind Mazdoor Sabha

Trade Union Act 25 March 1926

The trade Unions Act, 1926 provides for registration of trade unions with a view to render lawful organisation of labour to enable collective bargaining. The Act extends to the whole of India and applies to all kinds of unions of workers and associations of employers, which aim at regularizing labor management relations.

Trade unions in India

The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets consist of three sectors:

The rural workers, who constitute about 60 per cent of the workforce. Organized sector, which employs 8 per cent of workforce, and The urban informal sector (which includes the growing software industry and other services, 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)

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

Union Problems

Trade union leadership Multiple unions Union rivalry Finance Other problems
Illiteracy Uneven growth Low membership Mixed nature of labour Lack of interest Absence of paid office bearers


The responsibility of employers and trade unions

Employers, trade unions, union representatives and line managers should work together to ensure that time off provisions, including training, operate effectively and for mutual benefit. Union representatives need to be able to communicate with management, each other, their trade union and employees

Employers responsibility
The amount and frequency of time off should be reasonable in all the circumstances. Ensure that, where necessary, work cover and/or work load reductions are provided when time off is required. This can include the allocation of duties to other employees, rearranging work to a different time or a reduction in workloads. Union representatives will have legitimate expectations that they and their members are entitled to communicate without interruption in the form of monitoring by their employer.


Line managers should be familiar with the rights and duties of union representatives regarding time off. They should be encouraged to take reasonable steps as necessary in the planning and management of representatives

Trade Union responsibility

Trade unions should be aware of the wide variety of difficulties and operational requirements Ensure that union representatives are aware of their role, responsibilities and functions Inform management, in writing, as soon as possible of appoi ntments or resignations of union representatives Ensure that union representatives receive any appropriate written credentials to ensure that line managers receive details of the function of their role (role profile)

Representatives requesting time off to pursue their duties or activities should provide their line manager with as much notice as practically possible concerning the purpose (while preserving confidentiality) location and duration. Where workplace meetings are requested, consideration should be given to holding them (end of shift/end of month/lunch breaks etc.)


The trade union movement started after 1918, when the workers formed their associations to improve their conditions. It is, thus, a part of the labour movement, which is a much wide term A trade union is an essential basis of a labour movement for without which one cannot exist, because trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity

Trade Unionism in India has been the natural out come of the modern factory system


The main elements in the development of trade unions of workers in every country have been more or less the same The development of trade unionism in India has had a checkered history and a stormy career

Social Welfare Period (1875-1918)


The development of industries led to large-scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable workable conditions .

Early Trade Union Period(1918-1924)

The year 1918 was an important one for the Indian trade union movement. The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action.

Left-Wing Unionism Period (1924-1934)

In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders.

Trade Unions Unity Period (1935-1938)

In mid-thirties the state of divided labour movement was natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of a platform of unity.


Second World War Period (1939-1945)

The Second World War, which broke out in September 1939, created new weave in the united trade union movement.

The Post-Independence Period (From 1947 to-date)

As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947

Criticism of Trade Unions

Increased potential for strikes Narrow Perspective due to Lack of education Resistance to change due to the fear that they will be put out of work Fear of increased Costs Artificial Scarcity of labour


Union is an important factor of the current society, as it safeguards the basic interest and needs of both the employees as well as employers, by giving better terms and conditions of employment, secured jobs, better wages, favorable working environment which in turn leads to desired profitability.