TRADE UNIONS & COLLECTIVE BARGAINING

Prof. Susen Varghese

TRADE UNIONS
SUBTOPICS :  Definition and Meaning , Characteristics and Functions  Types of TU·s  Problems of TU·s  Important Trade Unions of India

DEFINITION OF TRADE UNION
The Trade Union Act 1926 defines a trade union as a 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 condition on the conduct of any trade or business, and includes any federation of two or more trade unions.

. etc.Features of Trade Unions ‡ It is an association either of employers or employees or of independent workers.. All India Teachers (eg.) ² General labor unions ² Friendly societies ² Unions of intellectual labor (eg. Association) . Indian paper mill association. Employer·s Federation (eg. of India. ‡ They may consist of ::² Employers· association (eg.

They persist throughout the year. The dominant interest with which a union is concerned is. political and social-of its socialmembers. economic.Features of Trade Unions ‡ It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. however. ‡ It is formed to protect and promote all kinds of interests ²economic. .

Negotiations and collective bargaining are the tools for accomplishing objectives. the character of trade unions has also been changing. the trade unions are also working towards raising the status of labors as a part of industry. moreover.Features of Trade Unions ‡ It achieves its objectives through collective action and group effort. . In spite of only focusing on the economic benefits of workers. ‡ Trade unions have shown remarkable progress since their inception.

‡ Inform workers· views. ideas and frustrations to the management. aims. ‡ Ventilate workers· grievances to management. . Some of these objectives are : ‡ Attain economic security.Why do workers join Trade Unions ? Workers join trade unions to achieve their objectives which they could not achieve individually.

etc.Why do workers join Trade Unions ? ‡ Secure power ‡ Satisfy their social psychological needs and their needs for belongingness. ‡ Secure protection from unexpected economic needs like illness. ‡ Improve their bargaining power and balance it with that of management . accidents.

Functions of Trade Union : ‡ The basic function of Trade Unions is to protect the rights and promote the interests of the workers and conditions of their employment. employment. better working and living conditions. . ‡ Acquiring the control of industry by workers. This can be achieved by : ‡ Achieving higher wages.

‡ Taking up welfare measures for improving the morale of the workers. ‡ Raising the status of workers. . protecting the members against victimization and injustice of the employers.Functions of Trade Unions : ‡ Minimising the helplessness of individual workers. ‡ Imbibing sincerity. discipline in workers. ‡ Providing a worker self confidence.

. ‡ These unions are called as horizontal unions ‡ The workers belonging to the same craft do face similar problems ² mostly non managerial personnel form such unions. ‡ E.SOME TYPES OF TRADE UNIONS  CRAFT UNIONS : ‡ Workers of the same craft or category of the job form into a union called as Craft Union.g. signalling staff Union in Indian Railways. : Drivers· Associations.

E. Such Unions of unions are called Federations. either of same industry or of different industry may form into an association I order to improve Trade Union unity/ strength. .SOME TYPES OF TRADE UNIONS FEDERATION AND CONFEDERATION: Industrial Unions.g. Federation of Indian Railways.

.SOME TYPES OF TRADE UNIONS  INDUSTRIAL UNIONS : Workers of different categories form into a union. Such Unions are called Industrial Unions. These unions are called ´verticalµ unions. Workers of the same industry are governed by same rules and regulations and are administered by same management.

Problems with Trade Unions Union Rivalry Small size of Unions Political & Outside Leadership Low membership Victimization Poor Financial Position Inactive Functioning .

This is because of the inability of insiders to lead the movement due to : Low education standards. ‡ ‡ ‡ ‡ ‡ ‡ . Fear of being victimized. Poor command over English language which is still the principal language for negotiations. Lack of leadership qualities. Unsound financial position. Insufficient knowledge of Labour Laws.Problems with Trade Unions Political Leadership : The leadership of most of the Trade Unions in India is due to outside leadership mainly drawn from political parties.

bigger unions disintegrate and form countless smaller unions. .Problems with Trade Unions Union Rivalry : Due to formation and existence of multiple unions and internal rivalry between them. the very purpose of strength for collective bargaining is defeated. The two main reasons for this rivalry are : ‡Personal conflicts of the political leaders who are also Union leaders. ‡´Divide and Ruleµ attitude of the management. Small size of Unions : Due to the internal rivalries.

. The primary source of income of Trade Unions is their membership fees.Problems with Trade Unions Financial Position : Size of unions often determines their strength and financial soundness.. their finances are less and hence affect their activities. And hence the series of problems continue«. but since there are very few members. This leads to ‡Inactive functioning« ‡Hence resulting in victimization« ‡Which is why the Trade Unions require political help.

. ‡ Keeping transactions ethical and transparent ‡ Amend the Trade Union Act.Some Solutions to TU problems The following are some of the methods to strengthen Trade Unions : ‡ United Labour force with ONE objective. policy and programme. ‡ Raising membership fees. ‡ Developing efficient leaders. programme.

ordination Centre NLO ² National Labour Organization .1947 HMS ² Hind Mazdoor Sabha UTUC ² United Trade Unions Congress CITU ² Centre of Indian Trade Unions BMS ² Bhartiya Mazdoor Sangh NFITU ² National Front of Indian Trade Unions TUCC ² Trade Union Co .Important Trade Unions of India ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Some of the important and well known Indian Trade Unions were: AITUC .All India Trade Union Congress .1920 INTUC .Indian National Trade Union Congress .

COLLECTIVE BARGAINING .

Advantages & Functions .COLLECTIVE BARGAINING SUBTOPICS :  Definition  Pre ² Requisites  Process  Characteristics  Importance.

More specifically it is a procedure by which employers and a group of employees agree upon some of the conditions of work while compromising on some others. one or both of whom is acting in concent. .Definition Collective Bargaining is a process of discussion and negotiation between two parties.

Requisites for Collective Bargaining     Freedom of association for employers and employees. Parties must avoid using unfair practices. Parity of strength between both parties.Pre . . Mutual trust and confidence between parties.

Requisites for Collective Bargaining   Right of employees to strike must be recognized.Pre . Both parties should have representatives duly authorized to make decisions. .

Process Of Collective Bargaining Union Claim Management Proposal Negotiations Revision / Renewal 3rd Party Referral Collective Agreement .

certain proposals are put forward which pave the way to mutual acceptance after careful deliberation and consideration (negotiations).Process Of Collective Bargaining Collective Bargaining is a process which broadly consists of the following steps :  Negotiation of Agreement: At this stage. . For this both parties have to justify their respective stands and be cooperative.

Process Of Collective Bargaining  Implementation of Agreement: After Negotiation when both parties reach an agreement they sign a contract. The contract signed should be printed and circulated amongst employees so that they know exactly what the terms of agreement are. This leads to the next step in the process of Collective Bargaining. Arrangements should then be made by both parties to abide by their problems. . However during this course certain unforeseen problems may arise.

provisions are generally made in the contract for revising it. However if there are no problems with the original contract then it can simply be renewed.Process Of Collective Bargaining  Renewal / Revision of Agreement: To solve the problems arising from the new agreements. This will again lead to negotiations for the new demands and may result in a new contract. .

expanding and changing in view of attitudes. . it is successful only when two parties participate with a ´give and takeµ approach. Flexible and not static.Characteristics     A group or collective action as opposed to individual actions and initiated through the representatives of employees. opinions and perceptions of both parties. Is dynamic as this concept is growing. Two way process.

an advanced form of Human Relations. . Not a competitive process but a complementary process.Characteristics      Ensures democracy at work place. Voluntary process accepted by both the Management and the Union. An art. The Most unique feature is that both parties start bargaining with entirely divergent issues and reach a middle point.

. etc. Avoids conflicts. thus avoiding interruptions in work. Ensures prompt and fair redressal of grievances. Establishes uniform conditions of work. strikes lock outs. Advantages & Functions      Increases economic strength of unions.Importance. Achieves efficient operation of plant.

Lays down fair wages and working norms.  Is a flexible means of reaching a solution.  Acts as a vehicle of peace. Advantages & Functions  Promotes stability and prosperity of industry.Importance. *********  .

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