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Avantika Sharma Pawan Alamchandani Vibha Bhan

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How are trade unions born? What are trade unions for?

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Responsible unionism

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Functions of trade unions Methods used by trade unions Forms of trade unions The Trade Unions Act, 1926 (Amendment Act, 2001) Trade union registration Trade union recognition
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Collective action, concentration of working class population, & to some extent the industrialization. Popular theories Exit-voice Theory Other factors:

States attitude towards legislation


(American vs. Asian Unions) (India)

States patronage Homogeneity of labour force


(Thailand & Malaysia) (Eastern nations)

Timing of emergence of unions

Left view

Right view

Revolutionary bodies Pure & simple unionism is highly objectionable

Leader a ex-officio civil servant Act as social police force

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)

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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1.

Factors that contribute towards Responsible Unionism:


.

1.

Public reputation

Once public opinion is veered against unions it became easy for state to strike back at unions

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


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Most basic functions


1. 2.

To build up its own organization & to give weight to its collective actions To redress inequality in the distribution of money & power in all organizations for which they may Negotiate, Pressurize, & Collective withdrawal of labour That of an opposition

3.

Crucial areas of trade unions intervention

Remuneration / wages through CB


States protective legislation (lobbying) employability wage A trade union will provide help and support to employees in times of need such as disciplinary hearings, strikes, appraisals, complaints and negotiations. The most common function of a trade union is committed to maintaining or improving the conditions of employment. As a means of Collective Bargaining Originating in the UK and Europe during the industrial revolution of the 18th and 19th centuries, trade unions bridged the gap between the unskilled, mistreated and underpaid workforces and shifted the bargaining power back to the employees from the employers.

Methods
A.

Mutual Insurance is more a function & obviously the reasons why trade union exists Collective bargaining Legal enactment Direct action

B. C. D.

classified into 2 major categories

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
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Direct Action

Strikes
1. 2.

Sit-in strike/Pen down Work-in strike/Slow down approval

3. Mass casual leave / Overtime ban 4. Wild cat strike / Walk out/without union

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


1. 2.

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


Mass insubordination Demonstration & Gherao 3. Postering & Blockade 4. Silence
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Classified based on Agreement:


a.

Closed shop agreement (Hiring Hall)

Trade union have a sole responsibility and authority for recruitment of workers vide an agreement with employer

b.

Union shop agreement (Right-to-work)

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

c.

Preferential shop agreement

Union members is given preference in filling a vacancy as per the agreement with employer

a.

Maintenance 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)

b.

Agency shop agreement

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

c.

Open shop agreement

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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Classified based on Interest:


a.

Political interest group v. Economic interest group

Classified based on Affiliation:


1.

Politically affiliated trade unions


a. b.

National Level Federations (AITUC, INTUC, UTUC, CITU, HMS) Other National trade unions (Stronger regional affiliations than national coverage) (NLO, BMS, HMP)

2.

Non-affiliated trade unions


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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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. 3. 4. 5.

Representative trade unions (25% of members as per BIR Act, 1946) Primary trade unions (15% of members as per BIR Act, 1946) Qualified trade unions (5% of members as per BIR Act, 1946) 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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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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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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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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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 are fulfilled.
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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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Maruti Suzuki India Ltd.

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In June, Maruti workers at Manesar had been demanding a union for themselves but the company management asked them to join the union affiliated to the Gurgaon plant. Union Not Registered with the Labour Commissioner as per the Trade Union Act. On June 4, strike at Manesar plant broke out on the demand of recognition of new independent union. Demand for fairness in wages and condition for Contract workers.
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Management terminated the services of 11 workers including eight so called office bearers of the union. The demand for independent union - Politically motivated. Terminated members taken back with enquiries initiated against them. No progress on the formation of the new union.
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Large scale incidents of sabotagesuch as doors falling off completed cars reported. In order to ensure product quality, the company insisted on workers signing a Good Conduct Bond, which they refused. The present protest by workers began on August 29, after they refused to sign the good conduct bond, which MSIL had made mandatory.
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The bond, among other things, said if any worker was found indulging in any activity such as

go-slow intermittent stoppage of work stay-in-strike work-to-rule sabotage or any other activity having the effect of hampering normal production,

he shall be liable for punishment.


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Talks brokered by the Haryana government to end standoff with workers at Manesar plant failed. Maruti Suzuki India (MSI) has asked 350 trainees to resume duties within the next three days. The management continues to believe that most of the workers are sincere and hard working. They are misled by a few people. With the talks having failed, the company management is now communicating with workers through various channels. It will encourage workers to sign the Good Conduct Bond, and resume duties without any fear or apprehension and work towards restoring normalcy.
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