Trade unions have become an integral and

powerful
factor in the contemporary system of
production and
distribution of goods and services.
Modern industrialization has paved the way for

trade
unions.
They are now exercising a strong influence

Origin(Background)
Though attempts have been made to trace the

ancestry of trade unions to the medieval period

and even earlier.
Institutions grow to meet the needs of a

particular time and place.

Trade unions have grown in response to the

peculiar needs and problems which the wage

earners have had to face in the course of
industrialisation under the capitalist economic
system.

Origin(Background)
Trade unionism grew as one of the most

powerful socio-economic political institutions of

our time
-to fill in vacuum created by industrial revolution
in industrial society.
-It came as a countervailing force to reconcile
social and economic aberrations created by
Industrial Revolution.

Origin(Background)
Individual dispensability and collective

indispensability was the basic principle for its

formation.
United we stand and divided we fall is the

philosophy
The government policy of Laissez faire(a doctrine

opposing govt interference in economic affairs/to

let people do as they choose) left the working
class at the mercy of mighty employers

Origin(Background)
The worker lacked bargaining power as seller

of most perishable commodity (labour)He was

no match for the mighty employer.

The supply of labour was more and demand

was less. Employers employed them on their

terms, which were exploitative.
Combination of workers was considered as
criminal conspiracy /the terms of contract
was regulated by workmen Breach of contract
Act,1860 and general law of the land.

Origin(Background)
Discontent was brewing.
Liberal Democratic and revolutionary

ideas(set in motion by the American war of

Independence,French Revolution,RussianRevolution /thinkers like Rousseau and Marx
etc)
The discontent also gave birth to an

institution known as trade union.

FORMATIVE STAGES
Trade Union had to pass through a very difficult

and hostile period in the initial years.

-The employers wanted to crush them with iron
hands.

Then came the period of agitation and

occasional acceptance.

When the union gained strength they started

confronting the employer. This is the period of

struggle which continued for long.

FORMATIVE STAGES
Employers were forced to accommodate,

tolerate and hesitatingly accept them.

Then came the period of understanding in the

industry in collective bargaining.

This was followed by a fraternal stage where

union became matured and employers started

consulting them.

FORMATIVE STAGES
The desired state is the Fusion Stagein

which joint efforts were required to be made

for union-management cooperation and
patnership.

DEFINITION
According to Webb ,a trade union is a continuous

associatiob of wage earners for the purpose of

maintaining and improving the conditions of their
working lives.
Under trade union Act of 1926 ,the term is defined as

any combination,whether temporary or

permanent,formed primarily for the purpose of
regulating the relations between workers and
employers or for imposing restrictive conditions on
the condition of any trade or business and includes
any federation of two or more unions.

DEFINITION
A more recent and non-legislative definition of

a union is:
An organisation of workers acting collectively

who seek to protect and promote their mutual

interests through collective bargaining
-De Cenzo &
Robbins(1993)

Forms of trade unions

There are three forms of trade unions:-

1.Classical-A trade unions main objective is to protect

the interest of its members.
-Trade Unions are the expressions of the needs
aspirations and wishes of the working class.
2. Neo classical- It goes beyond classical objectives
and tries to improve other wider issues like tax
reliefs, raising saving rates etc

Forms of trade unions

3. Revolutionary change in the systemEstablishing the rule of working class even
through violence, use of force, etc

Functions of Trade Unions

(a) militant or protective or intra-mutual functions:
-These functions include protecting the workers
interests,i,e hike in wages,providing more
benefits,job security etc
-this is achieved through collective bargaining and
direct actions such as strikes, gheraos etc
(b)Fraternal or extramural functions:
-This function includes providing financial/non
financial assistance during strikes/lockouts/medical
facilities/provision of education/recreation/housing
facilities/social and religious benefits.

Functions of Trade Unions

(c)Political functions:These functions include
affiliating the union to a political party
-helping the political party in enrolling
members,collective donations,
-seeking the help of political parties during the
periods of strikes and lockouts.
(d)Social functions: carrying out social service
activities/discharging social responsibilities

Objectives of Trade union

(a) Wages and salaries
(b) Working conditions
( c) Discipline
(d)Personal policies
(e) Welfare

Objectives of Trade union

(f) Employee-employer relations
(g)Negotiating machinery.
(h)Safeguarding organisational health and
interest of the industry

Role of Trade Unions

Adopting the model of Prof Clark kerr, unions

assume the following role:

(a) Sectional Bargainer-interests of the workers

at plant ,industry, national level- multiplicity of

unions,crafts unions,white collar unions,etc

(b)class Bargainer-Unions representing the

interest of the class as a whole-In France

Agricultural unions,Federations of unions, Civil
servants unions,etc

Role of Trade Unions

(c)Agents of State:-As in U.S.S.R, ensuring
targets of production at fixed price. In the
1974 Railway strike INTUC stood behind
Govt,and its agents
(d)Partners in Social Control: -Co-determinator
in Germany.Also some examples are found in
holland,France,Italy and Sweden-Some half
hearted attempts are being made in India
also.

Role of Trade unions

(e) Unions role which can be termed as

enemies of economic systems

-they are driven by political ideologies than by
business compulsions.
-Leftist unions want to change the fundamental
structure of economy and want to have
control over it.
-They therefore encourage high wages,high
bonus,etc,without consideration for health of
the economy .

Role of Trade unions

(f) Business Oriented Role,where unions

consider the interests of the organisation

along with workers.
-The unions think that their members fate is
linked with that of organisation and they swim
and sink together.
(g)Unions as a change-Agent lead the

changes rather than be led by them, thus

performing the pioneering role.

Classification of trade
unions
Classification based on ideologyRevolutionary unions-Believe in destruction of

existing social/economic order and creation of a

new one.
-they want shift in power and authority and use of
force-left unions.
Reformist or welfare unions- work for changes and

reforms within existing socio-political framework of

society-European model.

Classification of trade
unions
Uplift Unions-They advocate extensive reforms
well beyond the area of working condition,i.e,
change in taxation system, elimination of
poverty,etc

Classification based on
Trade
Many unions have representation and
jurisdiction based on the trades they present.
-the most narrow in membership is the craft
union
-such as carpentry/pipe fitting /clerical work.
-not common in India and Sri Lanka.
In India and Sri Lanka the range of workers

represented in the general union has members

drawn from all trades.

Classification based on
Unions representing workers employed on the
Trade
production floor or outdoor trades such as in
construction work, are called blue collar unions.
-Those employees in shops and offices and who are
not in management grades and perform clerical
and allied functions are called white collar workers.
Trade unions may be categorised on the basis of

the industries in which they are employed.

-examples of workers engaged in agriculture/forestry
(agriculture labour unions/forest workers unions)

Classification based on
Closed Shop:Where management and union
agreement
agree that the union has the sole responsibility
and authority for recruitment of workers.
-The Taft Hartley Act of 1947 bans closed Shop
agreement in USA.
-still exists in painting and construction
trades/also called Hiring Hall.
Union Shop: All new recruits have to join

within a fixed period./USA some states

declared to having right to work.

Classification based on
agreement
Preferential shop: When union member is given
preference in filling a vacancy
Maintenance Shop: There is no compulsory

membership in the union before or after

recruitment.
-If he chooses to become member after recruitment
his membership remains compulsory through out
his
tenure of employment.

Classification based on
Agency Shop: In terms of the agreement
agreement
between management and union
-a non union member has to pay the union a

sum equivalent to a members subscription to

continue in employment.
Open Shop: Membership in a union is in no way

compulsory/obligatory
-In such organisation there is no union.Least
desirable form for unions.
More usual in west than on the Indian
subcontinent.

Theoretical Perspective
TRADE UNIONS - THEORETICAL FOUNDATIONS AND

LEGAL FRAMEWORK

We have by now understood that trade unions are

voluntary organisations of workers formed to promote

their interests though collective action.

We will discuss Four theories propounded by

-Karl Marx,Sydney and Beatrice Webb,and Robert Hoxie

based on communist ,socialist,and capitalist
perspective.
-Concept of trusteeship advocated by Mahatma Gandhi

Theoretical Perspective
We will assess the significance and the

relevance of these theories on the

phenomenal changes in the world economy
since late 1980s

Theories of Trade Union

What we call theories of trade union movement

are in fact some abstract principles or ideologies

-These theories seek to explain the basic
motivating factors behind union organisation,Its
goals and means to accomplish them.
We will discuss four broad conceptualizations

concerning trade union movement:

(1) Karl Marx's notion of class conflict(2) Webbs
formulation which favoured the socialist pattern
of society(3) the American version of business
unionism (4) the Gandhian vision of trusteeship

Theories of Trade union

Karl Marx: Class Conflict and Communist
Manifesto/Political revolutionary theory of labour
Movement

movement.
-The Theory is based on Adam Smiths theory of
labour value.
- its short run purpose is to eliminate competition
among labour
-the ultimate purpose is to overthrow capitalist
businessman.
-Trade union is a pure and simple class struggle

Theories of Trade union

Movement

Karl Marx emphasized a role for intellectuals t

o inspire in workers political consciousness,
outside the economic struggle, and outside
the sphere of relations between workers and
employees.

In India the trade union leadership was largely

from the intellectuals and elite groups of

socity associated with freedom struggle.

Theories of Trade union

Movement
Sydney and Beatrice Webb The Socialist Pattern of
society.
-They saw a role for unions to usher in socialism
through political action.
-The Webbs too ,like Marx observed that market
pressures drove workers to organize into unions to
protect their economic interests.
-The webbs too were opposed to the capitalist
system.
-They advocated different paths to bring its downfall.
-Marx along with Engels played a key role in drafting
the Communist Manifesto in Germany

Theories of Trade union

The Webbs played an instrumental role as
Movement
intellectual leaders of he Labour Part in
Britain,
-drafting the Socialist Manifesto for converting
capitalist Britain into a mixed economy
-thus laying he foundation of the
nationalisation of major industries.
Marx and his followers prescribed a rapid
revolutionary and radical ,even violent
,change to a new order
The Webbs advocated a non violent ,gradual
evolution to a socialist form of govt.

Theories of Trade union

Movement
Robert Hoxie- Unions under the American
Capitalist System
He argued hat unions evolve differently across

socio psychological environmental contexts.

-he considered American Unions less dogmatic
and more pragmatic and opportunistic.
He identified five functional types of unionism:
(1) Business unionism: They are trade

conscious rather than class conscious.

Theories of Trade union

Such unions ask for more and more.
Movement

-Focusing on improvement in Wage ,working

hours, working conditions
-pay little attention to political and social action.
-they seek o achieve their goals primarily
through collective bargaining and industrial
action(strikes)

Hoxie distinguishes business unionism and

company unionism.
-the latter is excessively dependent on the
company for its (the unions )survival

Theories of Trade union

Movement
Friendly or uplift unionism: The goal of such
unions is o elevate the moral ,intellectual, and
social life of the worker.
-their means of action include collective
bargaining and political action.
Revolutionary unionism: These are class

conscious rather than trade conscious

-they follow Marx dictums and reject private
ownership of productive resources and
condemn wage system.

Theories of Trade union

Industrial and political action combined with
Movement
violence are the dominant means whereby
such unions achieve their objectives.

Hoxie divides revolutionary unions into two

subtypes
1.Focusing on socialist (unionism) ideals
2.Quasi anarchy 9unionism through
strikes,sabotage and violence.
Predatory unionism : such unions are
leadership based.

Theories of Trade union

Movement

Mahatma Gandhi The concept of trusteeship.

-it was not based on class conflict or on the
ideology that nationalisation of resources
promotes/provide equity.
- emphasized voluntarism.
-understood the limitations of capitalism and
socialism and tried to synthesize their virtues
in the concept of trusteeship.