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Trade Unions

Santanu Sarkar, PhD

Content
1.

How are trade unions born?

2.

What are trade unions for?

Responsible unionism

3.

Functions of trade unions

4.

Methods used by trade unions

5.

Forms of trade unions

6.

The Trade Unions Act, 1926 (Amendment Act, 2001)

7.

Trade union registration

8.

Trade union recognition

How are Trade Unions Born?

Collective action, concentration of working class population, & to some


extent the industrialization.

Popular theories Exit-voice Theory


1. Frustration-aggression theory points to dissatisfaction as the cause of
participation - unions are symptoms of incomplete integration in the company
2. Rational choice theory points to the perceived costs & benefits of participation
3. Interactionist theory points to the social context of individuals

Other factors:

States attitude towards legislation

States patronage

Homogeneity of labour force

Timing of emergence of unions

(American vs. Asian Unions)


(India)

(Thailand & Malaysia)


(Eastern nations)

What are Trade Unions for?

Left view

Revolutionary bodies

Leader a ex-officio civil


servant

Pure & simple unionism is


highly objectionable

Criticism: unions can never


be a viable vehicles of
advance towards Socialism in
themselves, by their very
nature they are tied to
Capitalism (against Radical)

Right view

Act as social police force

Criticism: 1st & overriding


responsibility is to welfare of
their own members primary
commitment is not to a firm /
industry / nation (against
Unitary / Pluralist)

..trade unions cannot behave as if they were not part of a larger society
/ ignore effects of their policies on national economy & general public.
Therefore, trade unions must serve interests of their members & also survive in
society as an acceptable institution(Responsible Unionism)
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Responsible Unionism
Factors that contribute towards Responsible
Unionism:
1.

1. Public reputation

Once public opinion is veered against unions it became easy for


State to strike back at unions

Eg. British Unionism in UK (Thatcherism) & with Wagner Act in USA

2. Compatibility with environment

Members expectation from union


Methods adopted by union
Nature of relationship between workers & union
Links obtain at grassroots between union & party
Trade unions acceptance of its own members

Members become alienated from their unions / leadership eg. Craft


unionism in America

3. Balancing of Movement & Organization

Trade Unions Functions


Most basic functions
1.

To build up its own organization & to give weight to its collective actions

2.

To redress inequality in the distribution of money & power in all organizations


for which they may Negotiate, Pressurize, & Collective withdrawal of labour

3.

That of an opposition

Crucial areas of trade unions intervention

Remuneration / wages through CB but its real relevance in the debate over
Economic Theory v/s. IR Theory?

States protective legislation (lobbying) employability wage

Today organizations have left very little for unions to fight for making union
superfluous, yet

As a collective voice can still alter social relations of workplace,


Perform vital role of protest of calling attention to both direct & unforeseen
consequences of managerial decisions &
Other functions like Research Function of trade union (Eg. Philips Bombay)

Trade Unions Methods


Methods
A. Mutual Insurance is more a function & obviously the
reasons why trade union exists
B. Collective bargaining
C. Legal enactment

classified into 2 major categories

D. Direct action
1. Workplace Methods / Industrial Methods

CB, grievance rep., participation in consultation forums, reps. in


issues & agitation methods

2. Non-workplace Methods / Political Methods

Attempts at legislative changes, attendance in conciliation,


arbitration / adjudication proceedings, instituting court cases,
initiating judicial review, participating in national debates

Trade Unions Methods


Direct Action
Strikes
1.
2.

Sit-in strike
Work-in strike

3. Mass casual leave / Overtime ban


4. Wild cat strike / Walk out

Accessories to main action / Strike


1.
2.

Picketing
Boycott

3. Secondary boycott
4. Hunger strike

Methods by which unions partially withdraw work /


reduce output
1.

Work to rule / Go Slow

Coercive methods used to make their displeasure / protest known


to mgmt. with the objective of getting unfavourable decisions reversed /
modified
1.
2.

Mass insubordination
Demonstration & Gherao

3. Postering & Blockade


4. Silence

Classified based on Agreement:


a.

Closed shop agreement (Hiring Hall)

b.

Trade union have a sole responsibility and authority for


recruitment of workers vide an agreement with employer

Union shop agreement (Right-to-work)

c.

All new recruits must join trade union within a fixed period
after employment as per the agreement with employer

Preferential shop agreement

Union members is given preference in filling a vacancy as


per the agreement with employer
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a.

Maintenance shop agreement

b.

Agency shop agreement

c.

Under agreement, a non-union members has to pay the union a sum


equivalent to a members subscription in order to continue in employment
with the employer

Open shop agreement

As per agreement with employer, no compulsory membership in trade


union before / after recruitment. However, if employee chooses to become
a member after recruitment, his membership remains compulsory right
throughout his tenure of employment with that particular employer (called
maintenance of membership shop)

Membership is in no way compulsory or obligatory either before / after


recruitment (least desirable form for unions)

Check-off (Applicable in some of the above mentioned agreements)


where management collect an employees unions dues, as a wage
deduction and gives a lumpsum amount to trade union ensures
totality of collection of union dues with no excuses for employees to
desist from.
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Trade Unions Forms


Classified based on Interest:
Political interest group v. Economic interest group

a.

Classified based on Affiliation:


Politically affiliated trade unions

1.
a.
b.

National Level Federations (AITUC, INTUC, UTUC, CITU, HMS)


Other National trade unions (Stronger regional affiliations than national coverage) (NLO,
BMS, HMP)

Non-affiliated trade unions

2.
a.
b.
c.

Industry level trade unions (TLA)


Company unions (BWU, BSWU)
Independent unions (AIBEF, TUSC, NTUI)

Classified based on Strategy:

Altruistic trade unions (Affiliated)


Selfish trade unions (Independent)

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Trade Unions Forms


Classified based on Membership strength:
1.

Minimum requirement about membership of a trade union

According to Trade Union [Amendment] Act 2001


Insider v/s. Outsider [See Sec 6 (e) and Sec 22(1) of TU Act, 1926]

2.

Representative trade unions (25% of members as per BIR Act, 1946)

3.

Primary trade unions (15% of members as per BIR Act, 1946)

4.

Qualified trade unions (5% of members as per BIR Act, 1946)

5.

Recognized trade unions (Recognition Issue)

Issues of recognition of a union per se, especially in a non-unionized situation question arise
which union is one to be recognized / should more than one union be recognized?
Problem of verification when union stakes its claim either in a new union / multi-union situation
Problem due to lack of a uniform legislation available in all States with regard to recognition
issues

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Trade Unions Act, 1926

Definitions
Trade union Sec 2(h)
Trade dispute Sec 2(g)

Who can form trade union u/Act, 1926? How many persons are required for reg.
of a Trade Union? What is the effect of withdrawal of a member?
Sec 2(h)
Sec 4 (Mode of registration) and Sec 9A (Minimum requirement about membership of
a trade union)
Not less than 10% or 100 of workmen, whichever is less,
Subject to a minimum of 7,
Engaged / employed in an est. / industry with which it is connected

Outsiders / honorary / temporary members as office bearers


Sec 6(e) and Sec 22 (1)
for unorganized sector
1/3 or 5 whichever is less, for other categories of est. / industry
Effect of retirement / retrenchment (not outsider)

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Trade Unions Act, 1926

Cancellation of registration of a trade union

Sec 10 of the Act, 1926

Nature and extent of immunity from criminal conspiracy and civil suit available to
executive members and office bearers of registered trade unions under the Act, 1926.

Sec 17 of the Act, 1926

Office bearers / executive members


Punishment u/Sec 120B(2) of IPC
In respect of any agreement made between the members for the purpose of furthering any object of
the union (Sec 15), unless is to commit an offence

Sec 18 of the Act, 1926

Trade union / Office bearers / executive members


Any Civil Court
In respect of any act done in contemplation / furtherance of a trade dispute to which a member of the
union is a party
On the ground only that

Such act induces some other person to break a contract of employment


It is in interference with the trade, business or employment of some other person
With right of some other person to dispose of his capital or of his labour as he wills

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Trade Union Registration


Characteristics of a Registered Trade Union
a.
b.
c.
d.

Body corporate by name & a legal entity


Perpetual succession
Power to acquire & hold property, & to contract
Sue and be sued

Rights & Privileges of a Registered Trade Union:


a.
b.
c.
d.
e.
f.

Body corporate
Separate fund for political purposes
Immunity from punishment for criminal conspiracy
Immunity from civil suits
Enforceability of agreements
Right to inspect books of trade union

Duties & Liabilities of a Registered Trade Union:


a.
b.
c.
d.

Objects on which general funds may be spent


Constitution of a fund for political purposes
Proportion of officers to be connected with the industry
Returns & disqualifications of office-bearers of trade union

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Recognition of Trade Union


What is recognition:

Process through which management acknowledge and accept a trade union as representative
of some / all workers in an establishment / industry & with which it is willing to conduct
discussions on all issues concerning those workers & willingness to bargain with the trade union
(Bargaining agent)

According to Codes of Conduct, Discipline & Management & Efficiency criteria


for recognition (Conditions):

Where there is more than one union, a union claiming should have been functioning for at least
one year after registration

Membership of union should cover at least 15% of workers in the est. concerned

A union may claim to be recognized as a representative union for an industry in a local area if it
has a membership of at least 25% of the workers of that industry in that area

When a union has been recognized there should be no change in its position for a pd. of 2 yrs.

Where there are several unions in an industry / est. the one with largest membership (majority
union) should be recognized

Only trade unions observing Code of Discipline would be recognized provided other conditions
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are fulfilled.

Methods used for determining Strength


1.
2.
3.
4.

Election by secret ballot


Check-off method
Verification
Rule of thumb

Rights of a Recognized Trade Union:


a.
b.
c.
d.
e.
f.
g.
h.

Right to raise issues with management


Right to collect membership fees within premises of the org
Ability to demand check-off facility
Ability to put up a notice board on the premises for union
announcements
Ability to hold discussion with employees at a suitable place within
premises
Right to discuss members grievances with employer
Ability to inspect beforehand a place of employment / work of its
members
Nomination of its reps on committees formed by mgmt. for IR purposes
as well as statutory bipartite committees
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Thank you

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