Presented By :

Rohit Suklabaidya
Scholar No - 18-50-140
Dept. Of Management Studies
N.I.T Silchar
Definitions of Trade union
“A continuous association of wage earners for the purpose
of maintaining or improving the conditions of their working
force” – Webb

“Trade union is such organization which is created,

voluntarily on the basis of collective strength to secure the
interest of workers” - V. V. Giri

“A trade union means an association of workers in one or

more occupations. An association is carried on mainly for
the purpose of protecting and advancing the member’s
economic interest in connection with their daily work” – G.
D. H. Gole.
“A labour union or trade union is an organisation of workers
formed to promote, protect and improve, through collective
action the social, economic, and political interests of its
members.” - Edwin B. Flippo

“A trade union is an association of employees designed

primarily to maintain or improve the conditions of
employment of its members.” - Lester
Theories of trade union movement
They are classified into 5 categories –

1. Revolutionary Theory:
The revolutionary theory of trade union is developed by Karl Marx “This theory
is also known as “the theory of class war and dialectical materialism”.
According to Marx, trade union was the foremost organising centre to provide
locus for streamlining the forces of working classes. The trade unions are, for
Marx, the instruments to overthrow capitalism.
. Marx advocated that the working class must not divert itself from its
revolutionary programme because it is labour struggle only that can abolish
capitalism.
2. Evolutionary Theory:
This theory also known as “theory of industrial democracy” was voiced by
Sydney and Beatrice Webbs. To Webbs, trade unionism is an extension of the
principle of democracy in the industrial sphere. In other words, trade unionism
is not an instrument to overthrow the capitalism, but a means of equalizing the
bargaining power of labour and capital.
Trade unionism provides a means by which workers overcome managerial
dictatorship, on the one hand, and express their voice in the determination of
the conditions under which they have to work.

3. Theory of Industrial Jurisprudence:

According to S. H. Slitcher the profounder of the “Theory of Industrial
Jurisprudence”, workers individually fail in bargaining with employers for pro-
tecting their interests. In his view, trade unionism served as a means for
workers to protect them in work. Such an approach of trade unionism, Slitcher
termed as “a system of industrial jurisprudence”
4. Rebellion Theory:
To Frank Tannenbaum, the propounder of “Rebellion Theory”, trade unionism is
a spontaneous outcome in the growth of mechanisation. He believes that the
use of machines leads to exploitation of workers. Thus, machine is the cause
and labour movement, i.e., trade unionism is the result. In other words, trade
unionism is a rebellion approach against mechanisation automatization of
industrial society to protect workers’ interest in the enterprise.

5. The Gandhian Approach:

The Gandhian approach of trade unionism is based on “class collaboration
rather than class conflict and struggle”. The idea to take worker’s due share
from capitalist by reform and self-consciousness among workers led to the
emergence of trade unionism. Thus the Gandhian approach of trade unionism
is not only related to material aspect but also moral and intellectual aspects.
Gandhi emphasised that the direct aim of a trade unionism is not, in the last
degree political. Instead, its direct aim is internal reform and also evolution of
internal strength. Also, trade unionism, according to the Gandhian approach, is
not anti-capitalistic as is generally viewed.
Trade Union Movement in India
The entire period of growth of trade unionism up till is now
is conveniently divided into three periods –

• First Period 1875-1918

• Second Period 1918-1947
• Third Period 1947 till date
THE FIRST PERIOD 1875-1918
The first period of trade unions in India started stared from 1873 and lasted up
to first world war. During the period the trade union movement was essentially
humanitarian. Some friendly societies were formed to look into the welfare of
workers. These unions were infrequent in nature. The first Indian trade union,
Bombay Mill Hands Association was formed in 1890. Active leaders in this
period were S.S Bengali and N.M Lokhande who fought for workers.

Some of the Unions that were formed at that period-

1) The Amalgamated Society of Railway Servants of India & Burma was
created in 1897.
2) The Printer Union was formed in 1905.
3) Calcutta and Bombay postal was formed in 1907.
4) The Kamgar hit Vardhak sabha was formed in 1909.
Second Period 1918-1947
• This period actually marked the beginning and growth of organized and
continuous trade union.
• The first organized labour union was formed in Madras namely Madras
Labour Union by B.P. Vadiya in 1919.
• There was a significant spread of trade unionism in 1920.
• Trade unions like Ahmedabad textile workers union, N.W Railway employees
union, Indian colliery employees union, The Jamshedpur Labour association
and many more were formed in that period.
• By 1924 there were 1671 trade union in India.
• The All India Trade Union Congress was formed in 1920.
Third Period 1947 till date

In the period 1918-47 the ideology inspiring trade union was nationalistic. But
after independence, trade union developed into an effective instrument for
protecting and safeguarding the interest of labourers.
Objectives of Trade Union
• To improve the economic lot of workers by securing them better wages
• To secure for workers better working conditions.
• To secure bonus for the workers from the profits of the
enterprise/organization.
• To ensure stable employment for workers and resist the schemes of
management which reduce employment opportunities.
• To provide legal assistance to workers in connection with disputes regarding
work and payment of wages.
• To ensure that workers get as per rules provident fund, pension and other
benefits.
• To secure for the workers better safety and health welfare schemes.
• To secure workers participation in management.
.
Methods of trade Union
Collective bargaining which means that the representatives of the union shall
meet the representatives of the employing concern and settle terms with them
regarding wage scales, hours of work and other conditions of work.

If the method of collective bargaining fails, resort may be had to Arbitration.

Under arbitration representatives of both the capital and labour are appointed
who reach a decision by which both abide.

If no decision is reached at arbitration the trade union resorts to Strikes. The

strike is a powerful weapon. It stops production and profits.
Problems & Weaknesses of Trade Unions
• Small Size:
According to the veteran trade union leader V.V. Giri, “the trade union
movement in India is plagued by the predominance of small sized unions”. To
quote there were 9,023 trade unions in the year 1992. The total membership of
these unions was 57.4 lakhs, with an average membership of 632 per union.
Nearly three-fourths of the unions have a membership of less than 500.
Smallness in size of the union implies, among other things, weakness in
bargaining power.

• Outside leaders:
Trade Unions in India are led largely by people who themselves are not
workers. These outsiders are politicians, intellectuals and professionals having
no experience of work in industry. Outsiders continue to dominate the trade
unions to advance their personal interests.
• Financial Problems:
The financial position of trade union is very weak as the annual income of trade
union is very low. The subscription rates are very low. As, a result the funds
with the unions are inadequate and they cannot undertake welfare programmes
for their employees.

• Indifferent attitude of workers:

In India, large number of worker has not joined any union. Moreover, all the
members of trade union does not show interest in their affairs. The attendance
of general meetings of trade union is very low. So, due to that it is very difficult
for trade unionism to make much progress.
Trade Union Act 1926
The Trade Union Act was passed in 1926 but enforced from 1st June 1927. The
act provides for the registration of Trade Union with a view to render lawful
association of workers. The Act also defined law relating to registered trade
unions and provided certain privileges and protection to the registered trade
unions.
Registration of Trade Union
Section 3 – Appointment of Registrar
• Appointed by appropriate Government for each State.
• Appointed as Deputy or additional Registrar.
• Specify and define local limits of registrar to exercise and discharge his power
and functions by appropriate Government.
Section 4 – Mode of Registration
• Required 7 member or 10% of members or 100 members of Trade Union for
made application.
• All members must subscribe their names to the rules of Trade Union and
comply provision of the Act relating to Registration.
• If more than half of the members who apply for the registration disassociate
themselves from the application , giving notice in written to registrar it
becomes invalid application.
• Only half or less than half of the members disassociate themselves from the
application, application of registration becomes valid.
•
Section 5 - Mode of the Application
• Every application for registration may made to registrar
- Accompanied by a copy of the rules of the Trade Union and other
particulars namely :
 Name, occupation, Addresses of the Trade Union members.
 Name of the Trade Union and Address of its head office.
 Titles, Names, Ages, Addresses and occupation of office bearers of the Trade
Unions.
Section 6 – Provisions To Be Contained In The
Rules Of The Trade Union
• The name of the trade union;
• The whole of the objects for which the trade union has been established;
• The whole of the purposes for which the general funds of the trade union
shall be applicable;
• The maintenance of a list of the members of the trade union;
• The admission of ordinary members who shall be persons actually engaged
or employed in an industry with which the trade union is connected;
• The conditions under which any member shall be entitled to any benefit
assured by the rules and under which any fine or forfeiture may be imposed
on the members;
• The manner in which the rules shall be amended, varied or rescinded;
• The manner in which the members of the executive and the other office
bearers of the Trade Union shall be elected and removed;
• The safe custody of the funds of the trade union, an annual audit, in such
manner, as may be prescribed, of the accounts thereof, and adequate
facilities for the inspection of the account books by the office bearers and
members of the trade union, and;
• The manner in which the trade union may be dissolved.
Section 7 – Power To Call For Further
Particulars And To Required Alternation Of
Name
• Power to ask for further information to satisfy himself.
• Power to ask to change name of Trade Union and shall refuse to register the
same until such alteration has been made..
Section 8 - Registration
• Satisfaction of all the requirements which are necessary
for registration.
• Mandatory to Registrar to register Trade Union if Union
satisfies all reqirements.
Section 9 – Certificate Of Registration
• Registrar issue the Certificate of the Registration in the
prescribed form and is an conclusive evidence.
Section 10 – Cancellation of Registration
Registrar has the power to cancel registration in the
following circumstances –
Registration obtained by fraud or mistake.
Trade Union cease to exit.
Trade Union wilfully allowed any rule continue after given
notice by registrar.
Structure of trade Union
Reformist union
• Its aim is to retain the present structure of capitalist society.
• They want to maintain the usual employee-employer relationship by
eliminating the competitive system of production.
• They never want to destroy the current existing social, economic and political
structure.
1) Business Unionism – Here smooth and cordial relationship exist between
employee and employer. All their problems and conflicts are solved by
collective bargaining. It favours voluntary arbitration and avoid strikes
2) Uplift Unionism – It is also called friendly or ideal unionism aim to act as
an social, intellectual and moral values of the workers. It puts more emphasis
on insurance benefits, health, education and welfare activities.
Revolutionary Unions
• It seeks to achieve their objectives by destroying the existing capitalist
structure and replacing it with socialist structure. They try to destroy the
existing economic system by revolutionary measure.
1) Anarchist Union – such union aim at destroying the present economic
system by resorting the revolutionary measure.
2) Political Union – Seek to redistribute the wealth by giving effective share
to workers. They get power basically through political actions only.
3) Predatory Union – They seek their objectives without sticking to any
approach.
4) Guerrilla Union – They believe in exploitation, violence and non
cooperation. They are generally non democratic. They don’t believe in
cooperation with their employees.
On the basis of Membership Structure
1)Craft Union – It covers all workers engage in a single occupation. All craft
union links together those workers who possess similar skills, craft training and
specialization. E.g. – all workers of textile industries.
2)Industrial and Staff Union – Unions organized on the basis of an industry
rather than craft is called industrial union. All workers skill, unskilled and semi
skilled working in a particular industry regardless of the difference in crafts,
skills position or gender form together an industrial union. E.g. – Engineering
Mazdoor Sabha Mumbai.
Trade Union Recognition
• Voluntary Trade Union Recognition - When the employer voluntarily
recognizes a Trade Union without using any legal procedure.
• Statutory Trade Union Recognition – If the employer and Trade Union do
not come to a voluntary recognition agreement, a Trade Union can make an
application for Statutory recognition
Condition For Recognition
• All members are employed in the same industry.
• It is representative of all employees.
• It rules do not exclude any clan of workers from membership.
• Its rules contains procedure for declaring a strike.
• It rules contains provision for meeting in every 6 months.
Types of Recognition
• Membership Verification - An official of the labour department of the state
or central government visit the Trade Union office, obtains the manpower list
and ask each employee individually whether or not they support the trade
Union.
• Check-off – Employees are asked to state in writing whether or not they
belong to a union and if they do, to which union and with that they should take
an undertaking in writing they are willing to have union membership deducted
from their salary. The check-off system helps to know and make an
assessment of the relative strength of union for the purpose of recognition.
• Secret Ballot – A more democratic method, election by secret ballot, enables
employees to exercise their option secretly. The entire process takes place in
the overall supervision of the Chief labour Commissioner.
• Code of Discipline – The criteria is set for recognition of trade unions. In
professionally managed organizations the management signs an agreement
with the recognized union which stipulates do’s and don’ts for management
and union.
Sources
http://www.yourarticlelibrary.com/trade-unions/5-classification-of-theories-of-
trade-union/35463
http://www.yourarticlelibrary.com/trade-unions/trade-union-its-meaning-and-
definition-trade-union/26118
http://www.yourarticlelibrary.com/trade-unions/trade-union-meaning-objectives-
and-benefits/90560
https://www.educationobserver.com/forum/showthread.php?tid=16183
http://www.yourarticlelibrary.com/trade-unions/history-of-trade-union-
movements-in-india/32988
https://blog.ipleaders.in/register-trade-union-trade-unions-act-1926/
https://www.scribd.com/doc/52510442/MULTIPLICITY-OF-TRADE-UNIONS-
AND-INTER-UNION-RIVALRY-IN-INDIA
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