& Trade Union Act,1926

Trade Unions - Concept

Major component of IR

Seeks to serve the interests of the workers

Trade Unions
A continuous association of wage earners for the

purpose of maintaining and improving the conditions of their working lives

Sidney & Beatrice Webb

Trade Union
A trade union is any combination, whether temporary

or permanent, formed primarily for the purpose of regulating the relations between
Workmen & workmen Employers & employers Workmen & employers

Or for imposing restrictive conditions on any trade or business and includes any federation of two or more trade unions

General Features of a Trade Union

The trade union is an association either of employers

or employees or independent workers

Labour unions are relatively permanent association of

workers and are not temporary or casual

A trade union is an association of workers who are

engaged in securing economic benefits for its members

General Features of a Trade Union

The origin of trade unions has been influenced by a

number of ideologies:
1.

Marx & Engles

Theory of Class War Extension of the Principle of Industrial Democracy A school of communism

2. Webb & Socialists

3. Lenin

Historical Evolution
First Phase - 1850-1900 Factories Act, 1881
Second Phase 1900-1947 Strong political movement Third Phase Post Independence Govt. sought cooperation for development

Functions of Trade Unions

To work for redistribution of Various
some of the nations wealth welfare by raising wages and earning through

types
funds

of
and

union
later for

pressure

of its members

employer

welfare

programmes, the union aims to get greater benefits for its

members

Functions of Trade Unions

1.
2. 3. 4. 5. 6.

Achieve higher wages & better working conditions Acquire control over running of the industry by workers Minimize helplessness of workers, protecting members against victimization by employers Generate self confidence in workers Generate sincerity & discipline among workers Take up welfare measures for improving morale of workers

Structure of Trade Unions

According to Purpose According to Membership

Reformist

Revolutionary

Craft Union

Staff Union

Industrial Union

General Union

Union Security
Sole or Exclusive Bargaining Agent
Preferential Union Shop Maintenance of Membership

Agency Shop
Union Shop Closed Shop Open Shop Check Off

Sole or Exclusive Bargaining Agent

The Union is accepted as a bargaining agent for all

employees (members and non-members) in the unit

Preferential Union Shop

Additional recognition is given to the union by an

agreement that the management shall give first chance to union members in recruitment

Maintenance of Membership
All employees who are or have become members of the

union must remain members in good standing for the duration of the contract as a condition of employment

Agency Shop
An employee in the bargaining unit is obliged to pay

dues to the union in return for the collective bargaining service which it is rendering him, although he does not join the union

Union Shop
All the employees in a bargaining unit must be or

become members of the union after a specified date

Closed Shop
Only union members are employed by the employer
The union often acts like a employment agency for the

industry

Open Shop
Union membership is not compulsory before or after

recruitment
Both union and non-union members are employed Often favoured by employers

Check Off
The practice under which the employer deducts union

dues from the pay of the workers and hands over the deductions to the union

Problems of Trade Unions

Uneven Growth
Small size of Unions Financial weakness

Multiplicity of unions & Inter-union rivalry

Leadership Issues Politicalisation of unions Problem of recognition of unions An outdated Trade Union Law

Major Trade Unions in India

Name Origin 1921 All India Trade Union Congress (AITUC) Indian National Trade Union Congress (INTUC) 1948

Political Ideology Communist

Congress

Hind Mazdoor Sabha (HMS)

1948

Socialist

Centre of Indian Trade Unions (CITU)

1971

CPI(M)

Bhartiya Mazdoor Sangh (BMS)

1954

Jana Sangh

Trade Union Act, 1926

Passed in 1926
Amended in 1947, 1960, 1962 Amendment of 1964 dropped the word Indian

Comprehensive amendment in 1982 and finally in 2001

Objects of the Act

1.

Conditions governing the registration of trade unions

2. Laying down the obligations of a registered trade

union
3. Fixing the rights & liabilities of registered trade

unions

Registration of Trade Unions

10% of workmen or 100 whichever is less
Application to the Registrar, along with Name of the trade union, occupations & addresses of the office bearers General statement of assets & liabilities of the trade union

Rights & Privileges of Registered Trade Unions

Immunity from Criminal Liability

Immunity from Civil Suits