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OBJECTIVES Explain and outline the roles and functions of trade union in work place relation Identify different

nt forms of employee representation Discuss main ways that unions represent employees Analyze various reasons as to why employees join union Trace historical development of Union from Fijis context Explain the reason decline in union membership from Fijis context.

A trade union (or labor union, labour union)


is an organization of workers who have banded together to achieve common goals in key areas, such as working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labor contracts (Collective bargaining) with employers.

This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other nonmember workers.

Trade union organizations may be comprised of individual workers, professionals, past workers, or the unemployed. The most common, but by no means only, purpose of these organizations is "maintaining or improving the conditions of their employment
Over the last three hundred years, many trade unions have developed into a number of forms, influenced by differing political and economic regimes

Development

o f m o d e r n i n d u s t r y, especially in the Western countries, can be traced back to the 18th century. Industrial development in India on Western lines, however commenced from the middle of the 19th century. The first organised Trade Union in India named as the Madras Labour Union was formed in the year 1918. Since then a large number of unions sprang up in almost all the industrial centres of the country. Similarly, entrepreneurs also formed their organisations to protect their interests.

Features of trade unions:


I. It is an organisation formed by employees or workers.

II. It is formed on a continuous basis. It is a permanent body and not


a casual or temporary one. III. It is formed to protect and promote all kinds of interests economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. IV. It includes federations of trade unions also. V. It achieves its objectives through collective action and group effort.

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. Negotiation Representation Information and advice Member services

Negotiation Negotiation is where union representatives discuss with management issues which affect people working in an organisation. The union finds out the members' views and relays these views to management. There may be a difference of opinion between management and union members. 'Negotiation' is about finding a solution to these differences. This process is also known as 'collective bargaining'. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organisations, unions are said to be 'recognised' for 'collective bargaining' purposes. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. People who work in organisations where unions are recognised are better paid and are less likely to be made redundant than people who work in organisations where unions are not recognised.

Representation Trade unions also represent individual members when they have a problem at work. If an employee feels they are being unfairly treated, he or she can ask the union representative to help sort out the difficulty with the manager or employer. If the problem cannot be resolved amicably, the matter may go to an industrial tribunal. Industrial tribunals make sure that employment laws are properly adhered to by employees and employers. They are made up of people outside the workplace who listen to the employer's and the employee's point of view and then make a judgement about the case. People can ask their union to represent them at industrial tribunals. Most cases that go to industrial tribunals are about pay, unfair dismissal, redundancy or discrimination at work. Unions also offer their members legal representation. Normally this is to help people get financial compensation for workrelated injuries or to assist people who have to take their employer to court

Information and advice

Unions have a wealth of information which is useful to people at work. They can advise on a range of issues like how much holiday you are entitled to each year, how much pay you will get if you go on maternity leave, and how you can obtain training at work.

Member services During the last ten years, trade unions have increased the range of services they offer their members. These include: Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt. Financial discounts - People can get discounts on mortgages, insurance and loans from unions. Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed

Most 'collective bargaining' takes place quietly and agreements are quickly reached by the union and the employer. Occasionally disagreements do occur and the two sides cannot agree. In these cases the union may decide to take industrial action. Industrial action takes different forms. It could mean an over time ban, a work-to-rule or a strike. There are strict laws which unions have to follow when they take industrial action. A strike is only called as a last resort. Strikes are often in the news but are rare. Both sides have a lot to lose. Employers lose income because of interruptions to production or services. Employees lose their salaries and may find that their jobs are at risk. Usually employers and employees will go to some lengths to avoid the costs of strike action to both groups. Photolibrary Group The Advisory, Conciliation and Arbitration Service (ACAS) is often used to help find a solution to a dispute which is acceptable to both sides.

xyz

Better

Wages Better Working conditions Bonus Resist unsuitable schemes Secure welfare Project Interest of workers Social welfare Organisational gowth and stablilty

Militant

Fraternal

Intra-mural activities Extra-mural activitie Political activities.

Lack

of education May not welcome change Strick on Illogical basis Creation of Artificical scanity of labour Undue demands relating to wages

Type of Union Description / Example

Craft of skills To represent skilled workers e.g. Musicians union Union (MU) Industrial unions To represent the members of one particular industry e.g. Fire Brigades Union (FBU) Unions which recruit workers from all types of industries and with any level or range of skills e.g. Amicus the Manufacturing Science and Finance Union (MSF)

General unions

White-collar unions

Represent office workers e.g. National Union of Teachers (NUT)

Another way of clasification: 1. Reformist Unions


Business Unions Friendly Unions
2. Revolutionary unions

Political unions Anarchist unions

Plant

level Federations Local level Federations Regional Level Federations National Level Federations

Union

Members Shop Stewards (Union Representatives) Branches District and Regional Offices National Office

Trade unions are democratic organisations which are accountable to their members for their policies and actions. Unions are normally modelled on the following structure: Members - people who pay a subscription to belong to a union Shop stewards - sometimes called union representatives - who are elected by members of the union to represent them to management Branches - which support union members in different organisations locally. There is usually a branch secretary who is elected by local members District and/or regional offices - these are usually staffed by full time union officials. These are people who are paid to offer advice and support to union members locally A national office - the union's headquarters which offers support to union members and negotiates or campaigns for improvements to their working conditions. At the top of the organisation there is usually a General Secretary and a National Executive Committee, elected by the union's members.

Trade

Unions Act, 1926 provides for the registration of the Trade Unions with the Registrars of Trade Unions of their territory. Any seven or more members of a trade union by submitting their names to the registrar of trade unions and otherwise complying with the provisions of the Act with respect to registration may apply for the registration of the Trade Union under the Trade Unions Act. The Act gives protection to registered trade unions in certain cases against civil a n d c r i m i n a l a c t i o n .

AIBOC - All India Bank Officers Confederation AISGEF - All India State Government Employees Federation Center of Indian Trade Unions - Major trade union Hind Mazdoor Sabha - Membership, objectives and trade union situation Indian National Trade Union Congress - History, aims, objectives and activities NCOA - National Confederation of Officer's Association of Central Publid Sector Undertakings Organized Labour - Article on role of organized labour and trade unions in economic liberalization PWTUC - Professional Workers Trade Union Centre of India Trade Union India - Trade union international of public and allied employees

Four important central organisations of workers in India are 1. The Indian National Trade Union Congress (INTUC). The Congress Party and the top congress leaders formed the INTUC like Nehru and Patel were associated with it. Every union affiliated to INTUC has to submit its dispute to arbitration after exhausting other means of settlement of disputes.

2. The All India Trade Union Congress (AITUC). This union serves as the labour forum of Communist Party of India at present. It is considered as the second largest union in India. 3. The Hind Mazdoor Sabha (HMS). It was formed in Calcutta by the socialists who neither approved INTUC nor AITUC. The HMS was organised with a view to keeping its members free from any political or other outside interference.

4. The United Trade Union Congress (UTUC). Those persons who were dissident socialist formed it. It functions mainly in Kerala and West Bengal.

5. Centre for Indian Trade Unions (CITU). The Marxists separated from the AITUC in May 1970 and formed the CITU.

In addition to the above, there are four other central trade union organisations. They are: Bhartiya Mazdoor Sangh (BMS)
National Labour Organisation (NLO)

National Front of Indian Trade Unions (NFITU) Trade Union Congress Committee

Uneven

growth Limited membership Multiplicity of unions Outside leadership Financial problems Indifferent attitude of workers

Each trade union member pays a subscription. The amount varies from union to union and is normally set at different levels according to the amount people earn. It is usually between 5 and 8 a month. Some unions reduce the fees for unemployed members. People pay their subscription fees in different ways. It may be collected by direct debit from a bank account, deducted directly from wages or paid in cash or by cheque to a union representative or full time official. In exchange, members receive the benefits of representation, negotiation, protection and other services from their union.

How do trade unions recruit their members? Different unions cover different jobs and industries. People are able to join the most appropriate union for their job or sector. People are recruited to unions in different ways. Most people find out about the union by talking to colleagues at the workplace and then make direct contact with the union. Others are contacted by the union representative who gives them information about the union and tells them how to join. Some employers and personnel officers tell employees about the union when they start working for the organisation. Unions are stepping up their efforts to attract new members. Some are using adverts in newspapers and magazines, television commercials and leaflets as part of high profile recruitment campaigns. The target for these efforts is often people who work part time, in temporary jobs or in small organisations where in the past union membership has not been very high. Begun in 1998, the 'New Unionism' project aimed to boost Trade Union membership, especially in newly-emerging industries and amongst members of the population who have been under-represented traditionally in the trade unions. The project set up new union roles of Academy Organisers who were trained intensively for 12 months in order to work as specialist union organisers. Research was carried out by Cardiff Business School in 2003 into the project's effectiveness; the resulting report is The Organising Academy - five years on.

In 2003, union membership in Britain, estimated from the Labour Force Survey, was 7.42 million. The proportion of all employees who were union members was 29.1%. These are the overall figures but union membership varies enormously by industry and by the types of jobs that people do. Trade union membership has declined over the last two decades. In 1979 13.3 million people were members of trade unions and the proportion of employees who were union members stood at 55%. A comparison of membership data for the period 1992-2003 can be seen on the ONS Web site.

Trade unions negotiate pay and conditions for people in a wide range of occupations. There are several reasons for this fall in membership, including: a dramatic fall in the number of jobs in manufacturing industries where union membership was traditionally high larger numbers of unemployed people a fall in traditional full time employment and an increase in part time and temporary workers who are less likely to join unions an increase in the proportion of the workforce employed by small companies where it is often difficult for unions to organise hostile legislation - the previous Conservative government introduced laws which make it more difficult for unions to operate and keep their members. .

However, trade union membership is still quite high and many people are employed in workplaces where unions are recognised by management for negotiating pay and conditions of employment. There is also evidence that the decline in union membership is beginning to slow up. The TUC has launched a major recruitment drive called 'New Unionism - Organising for Growth' and many unions are stepping up their efforts to recruit in new industries and jobs. More and more people are turning to trade unions because they want the protection they can provide

One

Union Per Industry Paid Union Officials Development of Internal Leadership Recognition of Trade Unions Improved Financial condition

1.

Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership

2.

3.

4.

Collective bargaining: Where trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions. Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals Political activity: Trade unions may promote legislation favorable to the interests of their members or workers as a whole

1. Non Union representation


Two forms of representation; a. Voluntary Initiated voluntarily by management, which includes forms of employee consultation and participation [e.g. company unions, consultative committees] b. State Sanctioned state intervenes to compel employers to consult with or even gain the consent of non union representatives of employees.

2.
a.

Union Representation
Informal Collective bargaining; where unions emerge to bargain informally with employers without state sanction Statute sponsored collective bargaining, conciliation and arbitration; more formal mechanism by which unions draw on legal compulsion either to force employers to bargain or to enforce agreements reached with employees.

b.

1.

2.

Monopoly face [Freeman and Medoff [1984]] focuses on roles of union in uniting individual employees into groups that seek to raise wages [and improve other conditions of employment] above rates which could have been expected under pure market forces. Collective voice/ institutional response face where unions assist in communicating to employers the concerns of employees about their employment conditions , thus allowing employers to remedy the problems.

3.

Political Activities here unions pursue political objectives that advance the interest of the unions , unions as organizations and the broader working class. Ie, not only advancing the particular interest of union members but also protecting the interest of all workers. The extent of this political objectives also reflects the alliances or affiliations in almost all countries that often develop unions and political parties.

Critics on monopoly face role; Have condemned such collective action because of an attempt to create a monopoly power that prevents the labor market from achieving an efficient allocation of resources, i.e., distorting prices in the labor market. Solution To remove this distortion, the monopoly power that trade unions exert over labor market outcomes must be replaced with individual freedom of contract. If achieved the superior bargaining power of employers would be counterbalance by the weight of contract law and heightened labor mobility.

Reasons for collective voice; Many issues in modern employment are public goods [it affects all employees in organization rather than individual.

Individual employees are often reluctant to truly express their grievances to management because of fears that they might loose their job or disadvantage their careers seen as trouble makers or whingers.

The decision to unionize is affected by at least three [3] factors;


1. Dissatisfaction with economic aspects of the job. This involves the dissatisfaction with the supervisory relationship, job content, and involvement in all work.

2.

3.

A desire to influence those aspects of the work environment through union oriented means. This involves the desire to remedy unsatisfactory working conditions through unions rather than through other more informal, individualistic or employer initiated participation programs. A belief that the benefits of unionism outweigh the expected cost. This is the individuals calculation of whether the expected benefits of unionization outweigh the expected cost.

Free Ride
Any individual may be able to secure many of the benefits of unionism without actually joining and bearing the financial cost of membership. Unions provide both public goods and private goods. Wage improvements, safety condition and superannuation entitlements apply to all workers , irrespective of union membership. The indivisibility of these benefits allows individual a free ride on the public goods provided by the union.

Strategy

to attract more employees to become members.


private goods cannot be consumed without being a union member. In order to make it more attractive to become members , unions may adopt different strategies. Ie they can provide range of services that are additional to their central role and may only be enjoyed by members. This include credit union facilities, insurance, legal advise or discount purchasing agreements.

Method of removing free ride


Another method of removing the free ride is to make the cost of non membership unsustainable by reaching closed shop agreements with employers. Closed Shop agreement A closed shop is a form of union security agreement under which the employer agrees to only hire union members, and employees must remain members of the union at all times in order to remain employed.

Closed shop Agreement International Labour Organization covenants do not address the legality of closed shop provisions, leaving the question up to each individual nation.[2] The legal status of closed shop agreements varies widely from country to country, ranging from bans on the agreement to extensive regulation of the agreement to not mentioning it at all

1.

2.

3.

Instrumental consideration union membership is the result of the costs and benefits of union membership Ideological beliefs union membership is the result of an individual identifying with the values of the union movement. Normative pressures union membership is the result of a closed shop or other interpersonal pressures to join.

1.

Changing composition of employment the growth in the proportion of non manual service sector employees, combined with the significant expansion of part time work and self employment, would appear to be associated with the decline in membership. There is also a fall in the proportion of manufacturing employment. Increase in the number of non union jobs in the service sector.

2.

Economic factors Increase in unemployment rate also decline union membership. [Bouland and Ouliaris 1994] they found that upward movement in unemployment rate had a negative effects on unionisation rate. However Bodman [1998] found that higher employment had a positive impact on union membership levels, because workers are likely to join unions in the hope of greater job security as unemployment rises.

3.

Public perception of unions negative community attitudes reduce the willingness of individuals to join a union. Employees who held negative image of unions and their leaders were significant less likely to be unionized.

4.

Role of Management Organization can put into effect policies that seek to substitute or suppress unions. Substitution policies that aim to reduce or remove the demand for union services can take the form of initiatives such as enhanced communication process, decentralized decision making or employee shareholding schemes. On the other hand, management may seek to heighten the barriers to unionization by restricting the access of union officials to worksites or by denying unions a collective role in determination of wages and working conditions.

5.

Government policies Hostile labor laws have made it both harder to stay with the union and easier to leave a union. Statutory individual contracts and increased penalties for industrial action have placed unions on the defensive.
Union structure and policies union structure and policies have contributed to decline in union membership. Union became to close to government and employers and failed to advance the interest of union members. Union structures became less democratic.

6.

Some union commentators believe that union structures became less democratic and responsive as a result of union amalgamation process and the trend to employ professionals in the position of union advisors and advocates, rather than elect members to this position.
The determination of union policies and the method by which those policies were pursued were highly centralized.

END OF UNIT II

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