Types, Structure and Functions of

Trade Unions
WIDE VARIETY OF TRADE UNIONS
EMERGED ACROSS THE GLOBE. THEY
CAN BE CLASSIFIED UNDER TWO BROAD
HEADS: (A) THE PURPOSE FOR WHICH
IT WAS FORMED; AND (B) ON THE BASIS
OF MEMBERSHIP

The Indian National Trade Union Congress (INTUC)

The INTUC came into existence on May 4, 1948 as a

result of the resolution passed by the Central Board of

Hindustan Mazdoor Sevak Sangh (HMSS) on 17
November, 1947.
A conference was held under the chairmanship of its
president Sardar Vallabhbhai Patel, which was
inaugurated by J. B. Kripalani on May 3, 1947 and was
attended by J.L.Nehru, Jagjiwan Ram, R.S.Shukla,
Hare Krishna Mehtab, Kamala Devi Chattopadhyaya,
Aruna Asaf Ali, Ashok Mehta and S.C.Banerjee (the
grand old man of labour in Bengal)

Objectives: (i) to establish an order of society which is free from hindrances to an all round development of its members

(ii) to place industry under national ownership

(iii) to secure increasing association of members in the

administration of industry
(iv) to organize society in such a manner as to ensure full
employment
(v) to promote social, civic and political interest of workers,etc
Basic objectives were inspired by the Sarvodaya philosophy
The constitution of the INTUC emphasizes on the adoption of
peaceful means, consistent with the Gandhian philosophy of cotrusteeship, Ahimsa and Satya
The means, therefore, are negotiation, conciliation and if
necessary adjudication of disputes

 It is associated with the ILO since 1949 and is the founder member
of the International Confederation of Free Trade Union Congress.
It publishes an English weekly Indian Worker and a Hindi weekly

All-India Trade Union Congress (AITUC)

It was established as a result of a resolution passed by
the organized workers of Bombay in a conference,
which was attended by Motilal Nehru, M.A.Jinnah,
Annie Besant, and Patel, on 31st October, 1920
Its first president was Lala Lajpat Rai
Objectives: There are in all eight objectives:
(i) to establish a socialist state in India
(ii) to socialise and nationalise means of production,
distribution and exchange

 (iii) to ameliorate the economic and social conditions of the working

class
(iv) to watch, promote and further the interests, rights,

and privileges of workers in all matters of employment

(v) to secure and maintain for the workers freedom of
speech, of press, of assembly, and the right to strike
The AITUC endeavours to achieve these objectives by the
legitimate, peaceful and democratic methods
In its 17th session AITUC adopted a two pillar policy: to
help in the development of the economy and to defend
the interest of the working class in that economy
AITUC is affiliated to World Federation of Trade Unions.
It publishes Hindi version of its organ Vishwa Darshan

United Trade Union Congress (UTUC)

Some trade union leaders of Socialist bent formed Hind

Mazdoor Sabha. Some leaders did not agree to it and

they formed on April 30, 1949 a new union called
United Trade Union Congress (UTUC)
Objectives: In all there are 6 objectives. Major ones are:
(i) to establish a socialist society in India
(ii) to establish a workers and peasants state in India
(iii) to nationalise and socialise the means of
production, distribution and exchange
(iv) to protect and promote workers rights & privileges

 (v) to secure and promote workers freedom of speech of press, of

association, of assembly, right to strike, etc
These objectives are to be achieved by the peaceful, democratic

means. Strike should be the last resort

Bharatiya Mazdoor Sangh (BMS)
It is the outcome of a decision taken by Jan Sangh at Bhopal on
23rd July, 1954. Its General Secretary was Dattopant Thengadi
Objectives: (i) to establish the Bharatiya order of classless
society in which there shall be secured full employment
(ii) to assist workers in organising themselves in trade unions as
a medium of service to the motherland
(iii) the right to strike and
(iv) to inculcate the spirit of service, co-operation & dutifulness
in the mindset of workers


The BMS is a productivity-oriented , non-political

trade union. Its ideological basis is the triple formula:

(i) Nationalise the labour; (ii) labourise the country;
and (ii) industrialise the nation
It rejects the idea of state control.
It tries to bring consumers as the third and the most
important party to industrial relations. Its accent is on
patriotism
For the furtherance and realisation of its aims and
objectives the Sangh employs all legitimate means

National Front of Indian Trade Union (NFITU)

This union was founded in 1967 with the claim of not

being controlled by any political party

Objectives: (i) to organise and unite trade unions with
the object of bringing up a National Central
Organisation of trade unions, independent of political
parties, employers and the government
(ii) to secure to members full facilities of recognition and
to raise their social, economic, and cultural conditions
(iii) to help in every possible way to raise real wages of
workers

In the fourth Congress of NFITU (November 1975) a declaration of principles was adopted, which stated

Every human being possesses fundamental, spiritual, and

indefensible rights as man is a creature of Supreme Being

Centre Of Indian Trade Union (CITU)
This union was founded in 1970. Its constitution says:
(i) The CITU stands for achieving complete emancipation
of the society from all exploitation
(ii) The CITU fights against all encroachments on the
economic and social rights of the workers
(iii) The CITU demands (i) nationalization of all foreign
monopoly concerns (ii) and of all concerns owned by
Indian monopolists and big industrialists

Unions classified according to purpose

Normally two types of union fall under this category:

1. Reformist and 2. Revolutionary

Reformist Unions: These unions aim at preserving
the capitalist society and the maintenance of usual
employer-employee relationship along with
elimination of competitive system of production
They neither seek comprehensive change nor wish to
destroy the existing social, economic or political
structure of the state. They desire only to modify them
in accordance with the current moodes in society


For example, they may wish to increase labours share in the increased production or
they may improve the working conditions by enforcing safety measures

They seek to dignify labour by educating the masses

about it
In the U.S.A the unions affiliated with the American
Federation of Labour and the Congress of Industrial
Organization are predominantly of this type
Hoxie has subdivided them into Business unionism
and Uplift unionism
Business unionism is that form of labour
cooperation in which employees enter a successful
business relationship with the employers

 They represent workers in collective bargaining with their

employers. They are craft-conscious and not class- conscious
They wish to bring economic advantages to their

members, including increased wages and improved

working conditions
They use peaceful means and depend primarily upon
collective bargaining
Such unions favour voluntary arbitration, deprecate
strikes and avoid political action, which may be used if all
measures fail
Friendly or uplift unionism is idealistic in nature and
aspires to elevate the moral, intellectual and social life of
workers and advocates plans for social regeneration

 It emphasises such other considerations as education, health,

insurance and benefits

It is not craft-conscious but interest-conscious of

workers
Revolutionary Unions: These unions aim at

destroying the present structure completely and replacing

it with new and different institutions
These unions seek to destroy the capitalist industry, to
abolish the wage system and private property
This union is extremely class-conscious rather than
trade-conscious
In the USA Industrial Workers of the World is of this type

 Revolutionary unionism is of two types: The anarchist and the

political
Anarchist unions are those that try to destroy the

existing economic system by revolutionary means

Political unions are those that gain power through
political action, enactment of laws to eliminate the
power of capital and the capitalists, redistributing
wealth and giving power to workers
Hoxie has also given a third type of union known as the
predatory union
A predatory union does not subscribe to any ideology It
can adopt any method which may deliver results and it
sticks at nothing

Its characteristic is the ruthless pursuit of the matter in hand by whatever

means that seem appropriate at that moment

It is dominated by gangsters and is a tool for the

enrichment of its leaders

A hold-up union represents a combination of
unscrupulous business agents of a labour organization
with equally unscrupulous employers to thrust
exorbitant prices upon customers. The workers generally
receive only a small part of the increase in the prices and
their bosses and employers retain the larger chunk
A guerrilla union does not believe in cooperation with
the employers. It aims at exploiting whatever it can. It is
generally not democratic but boss-ridden.

Its leaders are unscrupulous, ruthless and irresponsible and they

frequently make use of violence and exploitation

This type of union resorts to terrorism to enforce their

demands
A dependent union is one that is dependent wholly or
partly on the other unions of employees
Unions classified according to membership
Four types under this classification: Craft union, Staff
union, Industrial union and General union
1. Craft union: It is an organization of workers
employed in a particular craft or trade or in a single or
two or three related crafts/trades/occupations

 Such organizations link together those workers that have similar

skills, craft training and specialization

Historically speaking it were the craft unions that lent

stability to trade unionism

Their members are generally craft-conscious rather
than class-conscious and they aim at safeguarding
their members against the onslaught of employers
Such unions are horizontal in character, for they enroll
workers engaged in one or a single group of processes
such as spinning, weaving, warping, carpenters, joiners
Such unions provide the barest minimum of
associative integration

 2. Staff union: It is an organization based on the sense of

common status and common need for help
It implies a communality of outlook and presupposes

some solidarity between workers of different trades

It recruits members from related sectors such as clerks,
supervisors, draughtsmen etc.
These unions adopt more sophisticated method of
bargaining than other unions
3. Industrial union: It is an organization of workers
which links all craftsmen and skilled workers in any one
industry (such as coal, engineering, textiles) regardless
of the differences in craft, skill, grade, position or sex

Problems of Multiple Unions

The multiple unions are mainly the result of political

outsiders wanting to increase their political influence

The existence of different conflicting or rival
organisations is responsible for inadequate or
unhealthy growth of the movement
Within a single organisation one comes across a
number of groups comprising insiders and
outsiders, new-comers and old-timers,
Northerners and Southerners, moderates and
radicals, and upper and lower caste groups.

The extent of casteism in trade unions is evident

from working of Dhanbad trade union leaders who

with their connivance with the management got
removed no less than 5000 tribal workers from the
rolls showing that they have voluntarily abandoned
their job
This type of attitude develops small unions
Inter-union rivalry undermines the strength and
solidarity of workers in many ways. For example

With the multiplication of trade unions at the plant

level, each union enjoys only a negligible proportion of

the workers and does not enjoy the confidence of most
of the employees
These splinter unions instead of diverting workers
energies into constructive and co-operative channels,
encourage strife, disloyalty, and non-cooperation
Most trade unions have failed to realise the importance
of mutual help and welfare activities
The multiplicity of trade unions leads to inter-union as
well as intra-union rivalry

The Standing Committee of the Indian Labour Conference

discussed the problem of inter-union rivalry in 1966 and

recommended that
A provision should be made in the Trade Unions Act, 1926
that when more than one set of persons claims to be the office
bearers of the same union;
(a) if the union is affiliated to any Central Organisation, the
latter should first try to settle the difference within its
affiliates;
(b) failing this, under the aegis of the Labour Court, an
election confined to the members of the union concerned
should be held

But not much attention has been paid to this

recommendation and therefore thousands of so

called independent unions exist that are not
affiliated to any central organisation of labour
The National Commission on Labour has suggested
some steps to reduce such rivalry :
(i) building up of internal leadership within the
unions in order to eliminate party politics
(ii) promotion of collective bargaining
(iii) improving the system of union recognition

(iv) Encouraging union security and

(v) Empowering the labour courts to settle disputes

It is regrettable that these recommendations have

not been implemented by the government so far

Leadership Issue
Leadership issue has been important and since
freedom struggle, national leaders have used unions
All such leaders were politicians, lawyers, social
workers, doctors etc.
They were totally strangers to the ground reality of
that organisation and they never met with the rank
and file nor ever visited the work places

The outside leaders make a union as political union

leading to intra-union and inter-union rivalry which

causes low membership leading to unsound finances
The National Commission on Labour suggested that
number of outsiders must be limited in unions
The leaders should be promoted from the rank and
file and given a more responsible role

Employers Organisations in India

There are three phases in origin and development of

employers organisations in India:

1. The period prior to 1930
2. The period between 1931 to 1946
3. The post-Independence period
Each phase reveals their structural and functional
characteristics. The pre-1930 period is characterised
mainly by the formation of associations such as Bombay
Mill Owners Association, the Bengal Mill Owners
Association, and the Ahmedabad Mill Owners
Association

The period 1931-1946 witnessed the growth of Chambers of

Commerce and industrial associations
The All-India Organisation of Industrial Employers

(AIOIE) and the Employers Federation of India (EFI)

were formed in 1933
The All-India Manufacturers Organisation (AIMO) was
formed in 1941
The post-Independence period saw the growth of
employers organisations to meet the requirements of
individual employers on advice on labour matters
Employers organisations in India have a three-tier
structure: local associations, industrial asociations and
all-India federations

Of the three, the local associations which operate mainly through the
Chambers of Commerce cover all industries in an area. Their activities
in the labour field is less extensive

The industrial associations are the general pattern of

organisation of employers in India. They are formed at

the area/regional level as also at the all-India level and
are generally affiliated to the central industrial
organisation at the apex. Individual employers are
also admitted at the apex
Jute, cotton, textiles, engineering, tea, sugar, cement,
paper and chemicals are certain industries that have
associations at all-India level with branches in area/
states. In turn most of these are affiliated to the
National Federations

At the national level, there are federations namely, AIOIE, EFI, and
AIMO which have been given representation on different tripartite
labour consultative bodies

The AIMO is an omnibus multi-purpose body which

represents the voice of small and medium size

employers, but its membership is not restricted to them
All the three federations have special committees to
deal with specific problems. Besides they operate
through their regional committees and maintain close
links with respective Chambers of Commerce
The main objective for which EFI was formed are:
(i) to promote and protect the legitimate interests of
employers engaged in industry, trade and commerce

(ii) to maintain harmonious relations between management and

labour and to initiate and support all such schemes that would
increase productivity

At the same time they would give labour a fair share

of increased return
(iii) to collect and disseminate information affecting
employers and to advice them on matters of
employer/employee relations and other problems
The objectives of the AIOIE are: (i) to take all steps
to promote, support or oppose legislative and other
measures affecting or likely to affect industries
(ii) to nominate delegates and advisers, etc. to
represent the employers at the ILO, UNO etc.

(iii) to promote and support all well-considered

schemes for the general uplift of labour
The objectives of AIMO are: (i) to help bring about the rapid

industrialisation of the country through sound and progressive

economic policies
(ii) to help increasing the aggregate wealth of India
(iii) to raise the standard of living of the people of India by
utilising to the fullest possible extent all the available national
resources and talent in the country
(iv) to play a positive role in relieving the pressure of
population on land
All these federations function through their regional offices
which have well-equipped departments to deal with labourrelated matters

Functions of Employers Organisations in India

The main role & functions of such organisations are to protect

and promote the interests of its members

Its activities are designed at a broader plane; labour problems
are only a part of their responsibilities
Economic, commercial and fiscal matters and policies are
equally or even more important for them. Their main
functions are:
(a) Communication:
They keep their members informed of all new legislations
(even at the formative stage) regarding all shifts and changes
in labour policies, important court decisions on labour
matters, tripartite decisions, etc.

(b) Advisory functions:

They advise their affiliates on complex legal provisions, procedures,
etc. when such advice is sought

(c) Educational efforts:

They organise seminars, conferences and training
programmes at different levels to discuss important issues
in the labour-management relations
(d) Representational functions:
They are represented on various committees, wage
boards etc. set up by the government from time to time
and place before those bodies the employers views
(e) Social responsibility functions:
They also discharge certain social responsibilities towards
the country

However, the federations are not free from certain

organisational and other weaknesses.

They are mainly confined to service functions and
can hardly control or discipline erring members who
flout an all-India level bipartite agreement
The extreme step of terminating membership is
hardly ever taken even when a breach of the Code of
Discipline is established