Role Of Trade

Union
And
Maruti Case
Study

Group 3 Members
Gaurav Arora
- 28
Iti Shree
Chandan Kumar
Abhishek sharma
Anurag Sharma

- 34
- 22
- 03
- 14

Introduction To Trade
Unions

Trade unions are associations of workers or organization

formed together by labourers, workers or employees to
achieve their demands for better conditions at their
work atmosphere

Trade unions go by the name labour unions as well

The union negotiates contracts and conditions with

employers, keeping employee satisfaction high and
protecting workers from unsafe or unfair working
conditions.

Definition of Trade Unions

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.

It is formed for securing certain economic (like

better wages, better working and living conditions),
social benefits to members(such as educational,
recreational, medical, respect for individual) .

Functions and Roles of Trade Unions

Trade unions perform a number of functions in order to
achieve the objectives. These functions can be broadly
classified into these categories:

Protective

or Militant Functions
Intra-mural Functions
Fraternal or Extra-mural Functions
Social Functions
Political Functions

Functions and Roles of Trade

Unions (Contd..)
Protective or Militant Functions :

To achieve higher wages and better working conditions

To raise the status of workers as a part of industry

To protect labours against victimization and injustice

Raise grievances with management and perform collective

bargaining and negotiations

Intra-mural Activities :

Intra-mural activities include those activities of the trade unions

which are carried on within the four walls of the organization for
the welfare of the members.Such activities are: collective
bargaining with the employer for better wages and working
conditions and for workers participation in management

Improve the employment and working conditions within the

organization to protect labours against victimization and injustice

Functions and Roles of Trade

Unions (Contd..)
Fraternal / Extra-mural /Social Functions

To take up welfare measures for improving the morale of workers

(e.g. school for the education of children , recreational
facilities ,cooperative credit societies for providing housing,
cooperative stores, banking and medical facilities )

To generate self confidence among workers

To provide opportunities for promotion and growth

To protect women workers against discrimination

To arrange for legal assistance to its members

Education: Education of members in all aspects of their working

life including improving their civic life .

Scheme and procedure for redressing their grievances.

Publication of periodicals, newsletters or magazines for

establishing communication with their members .

Functions and Roles of Trade

Unions (Contd..)
Political Functions
Trade unions play a very important role in the politics of the country
, they also try to send their representative to the legislative
assembly and parliament through general elections so that they
may safeguard their own interest .

Some of the politically affiliated central Trade Unions are:

All India Central Council of Trade Unions (Communist Party of India

(Marxist-Leninist) Liberation)

All India Trade Union Congress (Communist Party of India)

Bharatiya Mazdoor Sangh (Rashtriya Swayamsevak Sangh,

indirectly Bharatiya Janata Party)

Indian National Trade Union Congress (Indian National Congress)

Maruti Case Union Strike

On June 4, workers at the plant had gone on a

13-day-long strike demanding the recognition
of a new union, the Maruti Suzuki Employees
Union (MSEU) as they were not happy with the
existing union Maruti Suzuki Kamgar Union.

Maruti Case Play Scene

1
Informal

Discussion of Contract worker

with permanent worker , at Manesar
plant .

Reasons :
Wages Disparity , Allowances ,
Incentives

Maruti Case Play Scene

2
Informal

Discussion of Contract
worker among themselves

Reasons :
Wages Disparity , Allowances ,
Incentives

Maruti Case Play Scene

3
Meeting

of Contract worker with Trade

Union Leader of Union (Maruti Suzuki
Kamgar Union ) based at Gurgaon

Union Leadership Issue

1. Union Leader was working for his own
benefits
2. He was close to management .

Maruti Case Play Scene

4
Meeting

of Trade Union Leader with

Management

Union Leadership And Management Issue

1. Union Leader was working for his own benefits
2. He was close to management .
3. Management and Union Leader were not transparent in
conduct .
4. Foul Play Between Management and Union Leader
5. Closeness between Management and Union Leader

Maruti Case Play Scene

5
Meeting

of workers to form
new Trade Union of Manesar
Plant

Issue
1.
2.

Lack of Trust Between Union and Its members .

Unsatisfied with working of present union .

Maruti Case Play Scene

6
Meeting

of Trade Union
Leader with Management

Issue
1.Management Playing tactics of divide and
rule .
2. Foul Union Practice

Maruti Case Play Scene

6
Meeting

of New Trade Union

Leader with Management

Issue
1.
2.
3.

Non recognition of new trade union formed .

Strike due to Stubborn attitude of management
.
Management casual approach .

Maruti Case Play Scene

7
Intervention

of state govt.

Issue
1.

2.

State govt. was biased towards

Management and tried to end the strike
by backing them .
Backing of Police Force

Maruti Case Play Scene

8
Meeting

of Management with some

workers
Issue
1.
2.
3.
4.

Signing of Good Conduct form , Dictating terms so that

no members should join the new union .
Tried to break the new union members .
Suspension of New Union Leaders .
Just for a sake, management accepted few demands to
pacify workers .

Conclusion of initial strikes

After striking for nearly 3 times between June to October that lasted 33
days in all, which was marred by compromises by the union
leadership , attacks by company goons (with the backing of the
Haryana government, labour department and the police) and relentless
pressure on all sides, the workers were forced into an agreement with
the management

In response to the workers request for transport, the company

agreed to provide bus services in line with shift timings.
To address the concerns of the Manesar workers, the company
has agreed to set up a grievance redressal committee. The
committee will have representatives from the management and
the workers.
A labour officer from the state government will be a permanent
invitee to it and review its proceedings.
Maruti Suzuki has also agreed to the formation of a labour
welfare committee to promote good relations between the
management and the workers. The committee will comprise
members of the management and the workers.

Play Scene 9 Strike

Again
After

management finally agreed to

the formation of a new union, the
Maruti Suzuki Workers Union
(MSWU) . The previous and new
demands again came up .
On 18 July 2012 ,Violence erupted,
after a scuffle broke out in the shop
floor, when a supervisor allegedly
made casteist remark against a
Dalith worker.

Play Scene 10
Union

turned Violent and

damaged many property as well
as many human life

Issues:

Union preferred violence than talk .

Communication break down .

Strike Turned Violent

Manesar Violence July 2012
On 18 July 2012, Marutis Manesar plant was hit by violence as
workers at one of its auto factories attacked supervisors,
engineers and other management personnel and burnt and
killed a senior HR executive named Avinash Kumar Dev,
injured 100 managers, including two Japanese expatriates
There was a lockout for more than a month and Manesar plant
was shut down which lead to a loss of about Rs 75 crore per
day.
The company dismissed roughly 500 workers accused of
causing the violence and re-opened the plant on August 21,
saying it would produce 150 vehicles on the first day, that is,
less than 10% of its capacity

Some Preventive Measures

Wage

Disparity between employees doing

similar work should be minimum.
Trust should be there between
Management , Union and Workers .
Connectivity and active communication
between the management and workers
should always exist .
Profit sharing among all employees .
Workers should understand that violence
can never be the solution
Transparency of management and union .

Thanks