Download VTU MBA 3rd Sem 16MBAHR301-Industrial Relations and Legislations IR Notes Module 3 -Important Notes

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Trade-Union

Module-3

Meaning

• A trade union is an organization of employees on a continuous basis for the purpose of securing
• It is a continuous association of wage earners for maintaining and improving the conditions of

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Definition

• The Trade Union Act 1926 defines a trade union as 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.

• There are some 164 million trade-union members in 141 countries. Trade unions are the world's largest social movement.
• Even so, it represents little more than 1-in-20 of the world's 5.5 billion plus workers. The rest often go unrepresented.

• In India the Trade Union movement is generally along political lines.
• According to provisional statistics from the Ministry of Labour, 6,131 unions had a combined membership of 24,601,289.

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• As of 2008, there are 11 Central Trade Unions recognised by the Ministry of Labour

• At present there are twelve Central Trade Unions:

1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)

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4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)

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9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC - LS)

Objective of Trade Unions

• Wages salaries

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• Working conditions
• Discipline
• Personnel policies
• Welfare
• Employee-employer relation

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• Negotiating machinery
• Safeguarding organizational health and interest

Functions of Trade

The basic functions of trade unions are to promote the interest of the workers and to protect their employment.

3. Militant Functions
4. Fraternal Function

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5. Social Functions
6. Political Functions
7. Ancillary Functions

Militant/Protective Functions

• Ensuring adequate wages, proper working conditions and better treatment by employers
• Fight with the management by means of strikes, boycotts, gheraos etc.

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• (iii) Achieve higher wages and better working conditions.
• (iv) Raise the status of workers in the industry and
• (v) Protect labour against victimization and injustice.

Fraternal Functions

• Providing financial and non-financial assistance to workers
• Extension of medical facilities during sickness and casualties,

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• Provision of education, recreation and housing facilities,
• Provision of religious and social benefits
• To encourage sincerity and discipline among workers.
• To provide opportunities for promotion and growth.

• Social Functions:- carrying out social welfare activities discharging social responsibilities through various sections of the society like educating the public.

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Political Functions :-

Affiliating a union to a political party Helping the political party in enrolling members Collecting donations Seeking the help of political parties during strikes and lockouts.

• Ancillary Functions :-
• Communication: trade union communicates its activities decisions achievements etc. through publication of news letter.
• Welfare Activities: acquiring sites, construction of houses, establishment of co-operative societies, organising training programs.

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Trade Union Movement

• The entire period of the growth of trade unionism till 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 began in 1875 and lasted up to first world war. During this period the trade union movement was essentially philanthropic and humanitarian. Some friendly societies and welfare leagues used to look in to the welfare of workers. The movement was sporadic in nature. The first Indian trade union, Bombay Mill Hands Association, was formed in 1890, with an immediate aim of agitation for improving the lot of first Indian Factories Act 1881.

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• The Amalgamated Society of Railway Servants of India & Burma registered under the Indian Companies Act of 1882 was created in 1897.
• The Printers Union, Calcutta and Bombay Postal union were formed in 1905 and 1907 respectively.
• The kamgar hit vardhak shbha was set up in 1909.
• Active leaders in this period were S.S. Bengalee and N.M.Lokhande who fought for workers.
• Panikkar characterizes this period as “the formative period of our early trade union movement”.

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Second period 1918-1947

• This period actually marked the beginning of well organized and continuous trade unions.
• Madras became the nucleolus of organized trade unionism.
• B.P.Vadiya founded the Madras Labour Union in 1918.
• There was significant spread of trade unionism.
• Trade unions like Ahemdabad textile workers union, Railway employees union, indian colliery employees union, jamshedpur labour association ,the bombay seamen union, and the E.B. Railway Indian employees association were formed.

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• By 1924 there were 1671 trade union in India.
• The all India trade union congress was formed in 1920.
• The period between 1924 and 1935 is characterized by left wing trade unionism.

TRADE UNION ACT 1926

• GENESIS OF THE ACT
• Buckinghan mill case of 1920

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• In march 1921 SRI N.M. JOSHI then General Secretary of AITUC successfully moved resolution in the central legislative assembly .
• On a resolution being passed by central legislative assembly in march 1924 the Indian trade union bill was introduced in the central legislative assembly.

• The act received its assent on 25th march 1926.
• It came into force on 1st June 1927.As “the Indian trade unions act 1926 (16 of 1926). By sec.3 of the Trade Unions (Amendment) Act 1964 the word “Indian” has been omitted and now it stands as The Trade Unions Act, 1926.
• To make regulation for the purpose of carrying out the provisions of this act the then government made “The Central Trade Union Regulations, 1927.

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Procedures for the Registration of Trade Unions

• The four procedure involved in registration of trade union are as follows:

1. Appointment of Registrar
2. Mode of Registration
3. Rights and Duties of Registrar
4. Legal Status of Registered Trade Union

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1. Appointment of Registrar:

• Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a person to be registrar of trade unions.
• The appropriate Government be it State or Central Government be is also empowered to appoint additional and deputy registrar as it thinks fit for the purpose of exercising and discharging the powers and duties of the Registrar.
• However, such person will work under the superintendence and direction of the Registrar.
• He may exercise such powers and functions of the Registrar as the limit as may be specified for this purpose.

2. Mode of Registration:

• Any seven or more persons who want to form a trade union can apply for its registration to the Registration of Trade Unions Act, 1926 under Section (1) of the Trade Unions Act, 1926. These applicants must be the members of a trade union.

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• In order to check the multiplicity of trade unions the second national commission of labour thought has proposed the number of persons required for the purposes of registration be reasonably raised to at least 10 per cent of employees of the unit, subject to minimum of seven persons employed therein This is expected to strengthen the trade union movement. The application for registration must be made to the Registrar of Trade Unions in Form “A” as required under the Trade Unions Act, 1926 under Section 5.

Every application must be accompanied by the following particulars:

• 1. The names, occupations and addresses of the members making the application.
• 2. The name of the trade union and the address of its head office.
• 3. The titles, names, ages, addresses and occupations of the office bearers of the trade union.

• 4 If a trade union has been in existence for more than one year prior to application of its registration, a financial statement showing its assets and liabilities prepared in the prescribed form must be submitted to the Registrar along with the application.

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• 5. Besides, every application must be accompanied by a copy of the Rules of Trade union complying with the items enumerated in Section 6 of the Trade Unions Act, 1926.

A trade union can be registered only if its constitution fulfils the following conditions:

• 1. Name of the trade union;
• 2. The whole of the objects for which the trade union is established;
• 3. The whole of the purposes for which the general funds of the union shall be applicable.
• 4. The maintenance of a list of the members of the union and adequate facilities for the inspection thereof by the office-bearers and members of trade union;

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• 5. The payment of a subscription by members of the union which shall be not less than
  • (i) one rupee per annum for rural workers;
  • (ii) three rupees per annum for workers in other establishments; and
  • (iii) twelve rupees per annum for workers in any other case.
• 6. The manner in which rules will be amended, varied or rescinded;

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• 7. The manner in which the members of the executive and other office-bearers of the trade union shall be appointed and removed;

• 8. The manner in which the funds of the trade union shall be audited and inspection of the books of accounts by the office-bearers and members of the trade union be made;
• 9. The conditions under which any members shall be entitled to any benefits under the rules and under which fines and forfeitures may be imposed on the members; and The manner in which the trade union shall be dissolved.

3. Rights and Duties of Registrar

• Section 7 of the Act empowers the Registrar to call for, if he thinks if required so, further enquiries on receipt of an application for registration to fully satisfy himself that the application complies with the provisions of section
• However, such enquiries can be made only from the applicants and not from any other source.

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4. Legal Status of Registered Trade Union

• Upon the registration, a trade union assumes the status of a body corporate by the name under which it is registered.
• A registered trade union shall have perpetual succession and a common seal.
• A regis-tered trade union is an entity distinct from the members of which, the trade union is composed of It enjoys the right to acquire and to hold property both moveable and immovable and can contract and be sued by the name in which it is registered.

Cancellation of registration.

1) The registration and the certificate of registration of a trade union shall be cancelled by the Registrar

(a) at the request of the organization upon its verification after making such inquiries as the registrar considers necessary

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(b) by order of the Industrial Relations Court, if it is satisfied that it is unable to continue to function as a trade union or as an organization for any reason that cannot be remedied.

(2) Whenever the Registrar reasonably believes that a trade union is unable to continue to function as a trade union or as an organization or has ceased to exist, he or she shall notify the organization in writing that cancellation of the registration is being considered, state the reasons and give the organization an opportunity to show cause why its registration should not be cancelled.

Role and functions of trade

• To promote and protect the interest of its members The Labour Commission in his report in 1966 opined that trade union should pay attention to the basic needs of its members.
• 1-To secure for workers faire wages
• 2-To safeguard security of tenure

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• 3-To enlarge opportunities for promotion and training
• 4-To improve working and living conditions
• 5-To provide for educational cultural recreational facilities
• 6-To cooperate in and facilitate technological advance by promoting the understanding of workers on its underlying implications
• 7-To promote individual and collective welfare

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• 8-To cooperate in improving production and productivity

Structure of trade

• The union of different countries and the different lines of trade unions depends on the historical compulsions of industrialization and the prevailing economic factors.

On the basis of purpose

Reformist Union Revolutionary Union

Business Unionism Anarchist Union Uplift Unionism Predatory Union Political Union Guerrilla Union

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Reformist Union

• It aim to retain the present structure of capitalism.
• They want to maintain the usual employee-employer relationship eliminating the competitive system of production.
• They never wish to destroy the current existing economic and political structure.

BUSINESS UNIONISM

Here smooth and cordial relationship exist between employee and employer ? All their problems and conflicts are solved by collective bargaining and peaceful means of demonstration. Employees seek to achieve economic objectives ? It favors voluntary arbitration and avoid strikes. Lockout and strike are rare.

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? It is also called intellectual unionism aims at improving the intellectual and cultural life of workers. ? It puts more emphasis on fringe benefits, health and social security measure.

Revolutionary Union

• It seek to achieve their objectives by destroying the capitalist structure and replacing with socialist or communist structure.
• They try to destroy the existing economic system by revolutionary measure.
• Anarchist Union: such union aim at destroying the capitalist system by resorting to revolutionary measures.
• Political union: seek to redistribute the wealth and income to share to the workers. The get power basically through political actions only.

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• Predatory union: they seek their objectives by violent approach.
• Guerrilla Union: they believe in exploitation and not in cooperation. They are generally non democratic and do not believe in cooperation with their employees.

Membership structure: as par the variation in the nature of members

Craft union: it covers all workers engaged in a particular craft or craft irrespective of the industries form which they are employed.

• All craft union links together those workers who have similar skills, craft training, apprenticeship and status.

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• Example: all workers of textile industries

Industrial and staff union:

• Unions organized on the basis of an industry are called industrial union.
• All workers skill, unskilled and semi-skilled employed in a particular industry regardless of the difference in their position or gender form together an industrial union.
• E.g.. Textile labour association, engineering labour union Mumbai.

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Staff union:

• it's a combination of craft union and industrial union is called staff union.
• Staff union is mostly formed by the workers of service sectors like health, tour and travel industries.

General Union:

• It comprises workers of various industries and different skills

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• Membership is open to all type/class of workers
• Workers of different industries and skills have formed general union.
• E.g. Jamshedpur trade union.

Structure of Trade union in India

In India trade unions are affiliated by two types of federation

• The national federation

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• The federation of union

• The National Federation
• The national Federation is the apex trade union body for coordination in the activities of different trade unions.
• These are politically learned and the leaders are generally provided by politicians .
• They act as a coordinating agency for various trade unions under their control.

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The federation of union

• Various union combines together to form federation for the purpose of gaining more solidarity and strength.
• Such federation can take collective action when needed.
• INTUC, AITUC, Hind Mazdoor Sabha,
• Bharatiya Mazdoorsabha,
• NATIONAL Labor Organization

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• All India BANK EMPLOYEE ASSOCIATION,
• All India Railway Men association,
• All India electricity employee association.

Union Problems

• Trade union leadership
• Multiple unions

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• Union rivalry
• Finance
  • Other problems
• Literacy
• Uneven growth

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• Low membership
• Heterogeneous nature of labour
• Lack of interest
• Absence of paid office Bearers

Shortcomings

1. Existence of large number of trade unions with small membership

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2. Limited area
3. Political rivalry
4. Financial weakness
5. Outside leadership

Measure to strengthen trade

1. There should be no distinction between private and public sec.

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2. Code of conduct
3. United front of trade unions should be encouraged
4. Encouragement should be given to generate internal leadership amongst the worker
5. No union office bearer will concurrently hold office in a political party
6. Penalty for victimization of worker by the employer and union employees

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Assignment

• Explain various rights and responsibilities of trade unions.
• Write a note on employee relations in IT sector.
• Visit following links and get ready for case study