Law and You > Labour Laws > Collective Bargaining and Trade Unions > Trade Union
Modernization, the need for quality, and increased productivity are important for competing in the international market. Modernization may cause the introduction of modern automatic machinery and may require high skilled labours. Thus, modernization results in the displacement, laying off, and retrenchment of workers. Such condition results in hostility between the workers and the management. In such a case, management and workers must come together and use the concept of collective bargaining. Collective agreements provide the climate for the smooth working of the business. An individual worker under financial constraint cannot bargain with the cash-rich employer. In such a situation, the individual may be tempted to accept undesirable conditions including low remuneration. Here there is a fear of loss of a job in the minds of the worker. This fear may be due to the ignorance, illiteracy and industry-specific skill factors. Sometimes employers are in a position to control the bulk demands for the labours, and they may through combined action, force the workers to accept low wages. Collective bargaining allows workers to band together into larger groups like trade unions, create a louder voice that can help provide the benefits for the workers and employers. In this article we shall study the meaning of the term “Trade Union”, its objects and functions.
Defining Trade Union:
According to Section 2(qq) the Industrial Disputes Act, 1947 “trade union” means a trade union registered under the Trade Union Act, 1926.
Union Under MRTU & Pulp Act, 1971:
Under Section 3 clause 17 of MRTU & Pulp Act, 1971, Union means a trade union of employees, which is registered under the Trade Unions Act, 1926.
Under Section 3 clause 13 of MRTU & Pulp Act, 1971, recognized union means a union which has been issued a certificate of recognition under Chapter III.
Union Under Trade Union Act, 1926:
According to Section 2(h) of the Trade Union Act, 1926, “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, and includes any federation of two or more Trade Unions:
Provided that this Act shall not affect—
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of instruction in any profession, trade or handicraft.
Objects of Trade Union:
- To Ensure Security of Workers: Security of workers involves continued employment of workers, prevent retrenchment, lay off or lock-outs. Restrict the dismissal or discharge and VRS.
- To Obtain Better Economic Return: Obtaining better economic returns involves wages hike at periodic intervals, bonus at a higher rate, other admissible benefits, and allowances, subsidized canteen, and transport facilities.
- To Secure Power to Influence Management: Securing power to influence the management involves workers’ collective bargaining, participation in management, decision making, the role of the union in policy decisions affecting workers, and staff members.
- To Secure Power to Influence Government: Securing power to influence government involves influence on government to pass labour legislation which improves working conditions, safety, welfare, security and retirement benefits of workers and their dependents, seek redressal of grievances as and when needed.
Functions of Trade Unions:
- To secure fair wages for workers.
- To safeguard the security of tenure and improve conditions of service.
- To improve working and living conditions.
- To offer responsive co-operation in improving levels of production and productivity, discipline and high standards of quality thus improving employer-employee relations.
- To work for collective bargaining.
- To enlarge opportunities for promotion and training.
- To provide for educational, cultural and recreational facilities.
- To promote the identity of interests of workers with their industry.
- To promote individual and collective welfare.
Characteristics of Trade Union:
- A union is a part of the working-class movement. A union normally represents members in many companies throughout the industry or occupation.
- A union is an employer regulating device. It sharpens management efficiency and performance while protecting the interests of the members.
- A union is a pressure organization originating in the desire on the part of a group with relatively little power to influence the action of a group with relatively more power. (The basis of collective bargaining).
- A union is a political institution (organization) in its internal structure and procedures.
Indian Trade Union Movement:
The trade union movement in India began after the end of First World War due to the need for coordination of activities of individual unions. The movement, over a period of time, systematically spread to almost all industrial centres and became an integral part of the industrial process in India. Various trade unions were formed during such period, such as the Madras Labour Union in 1918, the All India Trade Union Congress (“AITUC”) in 1920, the Bengal Trade Union Federation in 1922 and the All India Railwaymen’s Federation in 1922. In March 1921, Shri N.M. Joshi, the then General Secretary of the AITUC, recommended through a resolution that the Government should introduce legislation for the registration and protection of trade unions in India. Eventually, the Trade Unions Act, 1926 (“TU Act”) was enacted for the purpose of ensuring governance and protection of trade unions. Today, the Bharatiya Mazdoor Sangh (“BMS”), the Indian National Trade Union Congress (“INTUC”) and the AITUC are considered to be the largest trade unions in India.
Problems Faced by Indian Trade Unions:
- Small Size: Most of the unions have low membership. The number of unions and union membership are increasing, but the average membership is inadequate.
- Uneven Growth: Trade unions are concentrated in the large-scale industry sector and in big industrial centers. The trade union activity in the small sector is very little. There is no trade union movement among agricultural labour and in the domestic sector. Thus the trade unionism has touched only a portion of the working class in India.
- The Apathy of Members: Majority of workers do not take a keen interest in union activities. Most of the workers think that their duty is to pay monthly subscription only. The attendance at the general meetings of unions is very poor.
- The Multiplicity of Unions: There exist many unions in the same establishment or industry. The existence of rival unions with a conflicting ideology is greatly responsible for the unhealthy growth of the trade union movement. Multiple unions create rivalry. Unions try to play down each other in order to gain greater influence among workers. Inter-union rivalry weakens the power of collective bargaining and reduces the effectiveness of workers in securing their legitimate rights. In some cases, employers encourage split in unions to undermine their bargaining power.
- Weak Financial Position: The average yearly income of unions is very low and inadequate. The subscription rates are low and many members do not pay the subscription in time. Due to lack of funds, most of the unions are not in a position to undertake welfare programmes for workers.
- Absence of Paid Office-Bearers: Union activists work on an honorary basis and hence devote only a little time and energy to union activities. Union officers require adequate knowledge and skill, proper training. Due to the weak financial position and political pressure, the union officers lack all those skills.
- Political Leadership: Trade unions are under the leadership and control of political parties and outsiders. Politicians exploit unions and workers for their personal and political gains. Thus, the political leadership had ruined the trade union movement in India.
- Problems of Recognition: Employers are under no obligation to give recognition to any union. Employers find it easy to deal with an unofficial and unrecognized trade union. Many employers try to victimize labour leaders, start rival union and bribe union officials. It is easy for them to ply such unfair labour practices with the unrecognized union.
Tools Used by Trade Union:
- By Collective Bargaining: It is the essence of industrial relations Through collective bargaining the terms and conditions of employment are determined and under which work is performed’ satisfactorily.
- Grievance Processing and Handling Procedures: Under this method, the grievances are redressed or dealt with by a correction of the situation or by channeling up of these “up the line”.
- Arbitration: Unresolved grievances, unsettled or unresolved disputes can be settled by appointing a mutually acceptable outside agency. The decision of that agency is bound on both.
- Application of Political Pressure: This pressure is exercised through legislators associated with the trade unions who are capable of bringing about changes in labour laws; and
- Legal Strikes: When all other methods fail to achieve their objectives, trade unions can use a weapon of a legal strike.
Related Topics:
- Recognition of Trade Union Under MRTU & PULP Act, 1971
- Obligations and Rights of Recognized Trade Union Under Under MRTU & Pulp Act, 1971
For More Articles on Collective Bargaining and Trade Unions Click Here