Employee relations and labour law

1. EMPLOYEE RELATIONS AND LABOUR LAW
UNIT 1
Introduction to Employee relations:
1. Definition of Employee relations:
The meaning of employee relations to employers
Employee relations can be seen as a skill-set and lens through which to manage
workplace relationships and practice, rather than as a management function or well-defined area
of activity. The meaning of employee relations to employers Employee relations can be seen as
a skill-set and lens through which to manage workplace relationships and practice, rather than
as a management function or well-defined area of activity.
What is Employee Relations?
An organization can’t perform only with the help of chairs, tables, fans or other non living
entities. It needs human beings who work together and perform to achieve the goals and
objectives of the organization.
The human beings working together towards a common goal at a common place (organization)
are called employees. Infact the employees are the major assets of an organization.
The success and failure of any organization is directly proportional to the labour put by
each and every employee.
The employees must share a good rapport with each other and strive hard to realize the goal of
the organization. They should complement each other and work together as a single unit. For the
employees, the organization must come first and all their personal interests should take a back
seat.

2. What is Employee Relations ?
Every individual shares a certain relationship with his colleagues at the workplace. The
relationship is warm, so-so or bad. The relationship can be between any one in the organization -
between co workers, between an employee and his superior, between two members in the
management and so on. It is important that the employees share a healthy relationship with each
other to deliver their best performances.
An individual spends his maximum time at the workplace and his fellow workers are the ones
with whom he spends the maximum hours in a day. No way can he afford to fight with his
colleagues. Conflicts and misunderstandings only add to tensions and in turn decrease the
productivity of the individual. One needs to discuss so many things at work and needs the advice
and suggestions of all to reach to a solution which would benefit the individual as well as the
organization.
No individual can work alone. He needs the support and guidance of his fellow workers to come
out with a brilliant idea and deliver his level best.
Employee relations refer to the relationship shared among the employees in an
organization. The employees must be comfortable with each other for a healthy environment at
work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team
and encourage a healthy relationship among employees.
Life is really short and it is important that one enjoys each and every moment of it. Remember in
an organization you are paid for your hard work and not for cribbing or fighting with each other.
Don’t assume that the person sitting next to you is your enemy or will do any harm to you. Who
says you can’t make friends at work, in fact one can make the best of friends in the office. There
is so much more to life than fighting with each other.
Observation says that a healthy relation among the employees goes a long way in motivating
the employees and increasing their confidence and morale. One starts enjoying his office and
does not take his work as a burden. He feels charged and fresh the whole day and takes each day
at work as a new challenge. If you have a good relation with your team members you feel going
to office daily. Go out with your team members for a get together once in a while or have your

3. lunch together. These activities help in strengthening the bond among the employees and
improve the relations among them.
An employee must try his level best to adjust with each other and compromise to his best
extent possible. If you do not agree to any of your fellow worker’s ideas, there are several other
ways to convince him. Sit with him and probably discuss with him where he is going wrong and
needs a correction. This way he would definitely look up to you for your advice and guidance in
future. He would trust you and would definitely come to your help whenever you need him. One
should never spoil his relations with his colleagues because you never know when you need the
other person.
Avoid using foul words or derogatory sentences against anyone. Don’t depend on lose talk in
office as it spoils the ambience of the place and also the relation among the employees. Blame
games are a strict no no in office.
One needs to enter his office with a positive frame of mind and should not unnecessarily
make issues out of small things. It is natural that every human being can not think the way you
think, or behave the way you behave. If you also behave in the similar way the other person is
behaving, there is hardly any difference between you and him. Counsel the other person and
correct him wherever he is wrong.
It is of utmost importance that employees behave with each other in a cultured way, respect each
other and learn to trust each other. An individual however hardworking he is, cannot do wonders
alone. It is essential that all the employees share a cordial relation with each other, understand
each other’s needs and expectations and work together to accomplish the goals and targets of the
organization.
Importance of Employee Relations - Why Employee Relations atWorkplace?
Every individual at the workplace shares a certain relationship with his fellow workers. Human
beings are not machines who can start working just at the push of a mere button. They need
people to talk to, discuss ideas with each other and share their happiness and sorrows. An
individual cannot work on his own, he needs people around. If the organization is all empty, you
will not feel like sitting there and working. An isolated environment demotivates an individual

4. and spreads negativity around. It is essential that people are comfortable with each other and
work together as a single unit towards a common goal.
It is important that employees share a healthy relation with each other at the work place. Let us
find out why employee relations are important in an organization:
 There are several issues on which an individual cannot take decisions alone. He
needs the guidance and advice of others as well. Sometimes we might miss out on
important points, but our fellow workers may come out with a brilliant idea which would
help us to achieve our targets at a much faster rate. Before implementing any plan, the
pros and cons must be evaluated on an open forum where every employee has the right to
express his opinions freely. On your own, you will never come to know where you are
going wrong, you need people who can act as critic and correct you wherever you are
wrong. If you do not enjoy a good relation with others no one will ever come to help you.
 Work becomes easy if it is shared among all. A healthy relation with your fellow
workers would ease the work load on you and in turn increases your productivity. One
cannot do everything on his own. Responsibilities must be divided among team members
to accomplish the assigned tasks within the stipulated time frame. If you have a good
rapport with your colleagues, he will always be eager to assist you in your assignments
making your work easier.
 The organization becomes a happy place to work if the employees work together as
a family. An individual tends to lose focus and concentration if his mind is always
clouded with unnecessary tensions and stress. It has been observed that if people talk and
discuss things with each other, tensions automatically evaporate and one feels better.
Learn to trust others, you will feel relaxed. One doesn’t feel like going to office if he is
not in talking terms with the person sitting next to him. An individual spends around 8-9
hours in a day at his workplace and practically it is not possible that one works non stop
without a break. You should have people with whom you can share your lunch, discuss
movies or go out for a stroll once in a while. If you fight with everyone, no one will
speak to you and you will be left all alone. It is important to respect others to expect the
same from them.

5.  An individual feels motivated in the company of others whom he can trust and fall
back on whenever needed. One feels secure and confident and thus delivers his best. It
is okay if you share your secrets with your colleagues but you should know where to
draw the line. A sense of trust is important.
 Healthy employee relations also discourage conflicts and fights among individuals.
People tend to adjust more and stop finding faults in each other. Individuals don’t waste
their time in meaningless conflicts and disputes, rather concentrate on their work and
strive hard to perform better. They start treating each other as friends and try their level
best to compromise and make everyone happy.
 A healthy employee relation reduces the problem of absenteeism at the work place.
Individuals are more serious towards their work and feel like coming to office daily.
They do not take frequent leaves and start enjoying their work. Employees stop
complaining against each other and give their best
 It is wise to share a warm relation with your fellow workers, because you never
know when you need them. You may need them any time. They would come to your
help only when you are nice to them. You might need leaves for some personal reasons;
you must have a trusted colleague who can handle the work on your behalf. Moreover
healthy employee relations also spread positivity around.
It is essential that employees are comfortable with each other for better focus and concentration,
lesser conflicts and increased productivity.
Concept of ER:
The term 'employee relations' refers to a company's efforts to manage relationships between
employers and employees. An organization with a good employee relations program provides
fair and consistent treatment to all employees so they will be committed to their jobs and loyal to
the company.
The term 'employee relations' refers to a company's efforts to manage relationships between
employers and employees. An organization with a good employee relations program provides
fair and consistent treatment to all employees so they will be committed to their jobs and loyal to

6. the company. Such programs also aim to prevent and resolve problems arising from situations at
work.
Employee relations programs are typically part of a human resource strategy designed to ensure
the most effective use of people to accomplish the organization's mission. Human resource
strategies are deliberate plans companies use to help them gain and maintain a competitive edge
in the marketplace. Employee relations programs focus on issues affecting employees, such
as pay and benefits, supporting work-life balance, and safe working conditions.
One of the most effective ways for a company to ensure good employee relations is to adopt a
human resource strategy that places a high value on employees as stakeholders in the business.
Stakeholders are people who are committed, financially or otherwise, to a company and are
affected by its success or failure. When employees are treated as more than just paid laborers, but
as actual stakeholders with the power to affect outcomes, they feel more valued for the job they
do.
Think about the last job you truly loved. Was it because you were treated like an important part
of the team? You probably had an interest in seeing the business succeed, like a stakeholder.
Nature of Employee Relations:
It is through the employment relationship, however defined, that reciprocal rights and
obligations are created between the employee and the employer. ... It is the key point of
reference for determining the nature and extent of employers' rights and obligations towards
their workers.
An employment relationship is an agreement between the employee and employer. It is not
between an employer and an Independent Contractor. There are hard fast rules to determine
employee/ employer relationships. The agreement defines the specifics of pay, benefits, vacation
and such. An employer must give whatever is offered to one employee, to all employees. That's
the gist of it.
In virtually every state, the rule is that the employment relationship exists at the will of
employer and employee and can be terminated at any time by either party for good
reason or no reason. The exceptions to the rule are what keep thousands of lawyers

7. employed. The exceptions to employment at will are (1) the existence of a contract
imposing restrictions on the right to terminate at any time and any reason, including
collective bargaining agreements with a union (2) local, state and federal non-
discrimination laws prohibiting termination and other adverse employment action
because of race, sex, age, disability, etc. and (3) whistle blower and similar anti-
retaliation laws prohibiting discharge for engaging in certain conduct our courts and
legislators believe should be protected.
The term “employee relations” generally refers to the concept of maintaining a
productive and collaborative relationship between employer and employee through use
of compensation, benefits, and workplace culture.
Approaches to Employee Relations:
The Marxist approach views the power relationship between the two classes, namely, the
employer (capital) and the employee (labor), as the crux of the industrial relations.
Some of the major approaches to employer-employee relations are as follows:
1. Psychological Approach 2. Sociological Approach 3. Human Relations Approach 4. Giri
Approach 5. Gandhian Approach.
1. Psychological Approach:
According to psychologists, differences in the perceptions of employers and workers give rise to
problems of employer-employee relations. The two parties view and interpret situations and
issues involved in employer-employee conflict in different ways.
Employer and employee consider each other less appreciative of the other’s position and less
dependable than himself Similarly, the perceptions of trade unions are different from those of
employers’ associations. In addition, dissatisfaction with pay, working conditions, nature of job,
etc. cause frustration and aggression on the part of workers.

8. These in turn lead to strikes, gherao, boycott, and works to rule, etc. Similarly, employers resort
to lockout and other forms of protest on account of frustration over market conditions,
government policies and other constraints.
2. Sociological Approach:
Industry is a part of society and it is a community made up of individuals and groups with
different family background, educational level, personalities, emotions, likes and dislike, etc.
These differences in individual attitudes and behavior create problems of conflict and
cooperation in industry.
The value systems, customs, status symbols and institutions of the society in which industry
functions affect relations between the parties involved. Urbanization, housing and transport
problems in industrial areas, disintegration of joint family system, and other social problems
cause stress and strains along workers. The social and cultural changes shape behavior patterns
and cause adjustments in employer-employee relations. There cannot be harmony and peace in
industry when the society is in turmoil.
3. Human Relations Approach:
Industry consists of living human beings who want freedom of thought and expression and
control over their lives. When employers treat workers as inanimate objects and encroach upon
their interests and desires, conflicts and disputes arise.
Workers want security of service, good pay and working conditions, recognition for job well
done, opportunity to participate in decision-making. Employers must understand the needs,
attitudes and aspirations of workers.

9. Human relations approach explains the behaviour of individuals and groups at work and helps in
modifying or utilizing such behaviour towards the achievement of organisational objectives. If
management and labour both understand and apply human relations approach to their mutual
relations industrial conflict can be minimised. Human relations approach is inter-disciplinary in
nature because knowledge drawn from several disciplines like psychology, sociology,
anthropology, economics and political science is used in it.
4. Giri Approach:
According to Shri V.V. Giri, the late President of India, collective bargaining’s and mutual
negotiations between management and labour should be used to settle industrial disputes. He
suggested that there should be bipartite machinery in every industry and every unit of the
industry to settle differences from time-to-time with active encouragement of Government.
Outside interference should not encroach upon industrial peace. Giri’s stress was on voluntary
efforts of the management and the trade unions to wind up their differences, through voluntary
arbitration. He was against compulsory adjudication which cuts the very root of the trade union
movement. He advocated collective bargaining for securing industrial peace.
Thus, the Giri Approach to employer-employee relations implies the encouragement of mutual
settlement of disputes, collective bargaining and voluntary arbitration. The essence of this
approach is internal settlement in preference to compulsion from outside and voluntary
arbitration and collective bargaining rather than compulsory arbitration.
5. Gandhian Approach:
Gandhian approach to employer-employee relations is based on the fundamental principles of
truth, non-violence and non-possession. If the employers follow the principle of trusteeship,
there is no scope for conflict of interests between them and labour.

10. Workers can use non-cooperation (Satyagraha) to have their grievances redressed. Gandhiji
accepted the workers’ right to go on strike but they should exercise this right in a peaceful and
non-violent manner. Workers should resort to strike for just cause and after the employers fail to
respond to their moral appeals.
Gandhiji suggestedthat in the process of resolving disputes, the following guidelines should
be observed:
1. Workers should avoid forming unions in philanthropic organisations.
2. Workers should seek redressal of their reasonable demands only through collective action.
3. They should avoid strikes as far as possible in industries of essential service.
4. Workers should resort to strikes only as a last resort after all other legitimate measures have
failed.
5. If they have to organise a strike trade unions should seek by ballot authority from all workers
to do so, use non-violent methods and remain peaceful.
6. When direct settlement fails, workers should, as far as possible, take recourse to voluntary
arbitration.
The Indian Labor Movement:
The most prominent leader of the labor movement is Mr. B. P. Wadia. It was he who first
started the labour unions in India. Wadia is an ex-member of the IndianHome Rule League (a
moderate political organisation with a programme to achieve self-government by gradual
concessional process) and a well-known theosophist.

11. THERE exists in India a powerfully organised Labour movement. The Secretary of
the Indian Labour Federation, or “Standing Committee of the All-India Trade Union
Congress,” as it is called, is Mr. Chiman Lal, who claimed that under this federation
are combined 97 unions, with 1,500,000 members. These unions embrace nearly all
the industries of the country. The leading organisation is the Railwaymen’s Union,
which has organised 50 per cent. of those employed, which is about 325,000
workers. The second in importance is the Textile Workers’ Union, and the third is
the Miners’ Union.
Trade Unionism is a new thing in India. Before 1918 it did not exist except for a few
unions for white workers. It was out of the strike movement of 1918 that the unions
came into existence. The first one was organised at Madras by Mr. B. P. Wadia.
Since then the progress of the movement has been both rapid and successful. The
amount of success can be determined from the huge number of organised members,
representing about 25 per cent. of the total number of the factory-going workers.
This growth indicates that the Indian labourers are speedily realising the need for
their own organisations.
It is important to observe that the Indian Labour movement is rapidly becoming
revolutionary. To illustrate this, take, for example, the number of strikes that have
taken place in India since 1918, the history of which are written in blood. Strikes
were common in the Indian factories, but they were never of a country-wide nature,
and did not demonstrate any solidarity among the workers. The first instance of such
a strike took place in Bombay, known as the General Strike, in which 120,000
workers, mostly textile operators, took part. The solidarity of the masses on that
occasion was shown by sympathetic strikes in other parts of the country. The strike
was practically lost. About 200 workers were shot down by the soldiers. There were
no proletarian leaders at that time, and the Nationalist middle-class politicians who
took the lead utilised the strike for demonstration purposes. Similarly, another strike
of several hundred thousand plantation workers took place in Assam, about 2,000
miles from Bombay, three years after the general strike, and it, too, was lost, due to
the Nationalist leaders exploiting it for political purposes. Once again strikers were
killed. According to the report of the Government Commission appointed to inquire
into the reason for labour unrest in India it was shown that in nine months, from

12. July, 1920, to March, 1921, in the province of Bengal, 137 strikes took place,
reacting on all branches of industry. 244,180 workers took part in these strikes, and
2,631,488 working days were lost. Of these strikes 110 were for higher wages and
13 were for the continuation of former strikes. A note issued by the labour officer of
Bombay states that in three months, from April to June, 1921, 33 strikes took place
in that town alone, involving 240,000 workers, with a loss of 500,000 working days.
About the middle of the same year a strike of 20,000 workers took place in the town
of Madras. To suppress the labour movement in Madras, the Government, with the
help of the capitalists, tried by all means to subdue the labourers.
They imprisoned strikers, burnt their houses, and fined the unions, but the labourers
were very determined in their demands. The strike ended in a compromise due to the
reformist character of the leaders. This strike movement was country wide. In the
north, in 1920, a strike of over 60,000 railway workers took place; the printers struck
work to show their sympathy with their railroad comrades. Out of this strike was
organised the Punjab Labour Union. The strike of the Cawnpore leather and textile
workers, altogether about 30,000 men, is also noteworthy. They organised
themselves and put forward 21 demands, including increased wages, unemployment
insurance, and a share in profits. In short, in the year 1920, altogether 2,500,000
workers were involved in the strike movement, and in many cases it ended in
bloodshed. It is estimated that altogether there were 1,000 workers wounded and
killed.
An important fact is that this strike agitation was not a class-conscious revolutionary
movement, but it does mark the beginning of the class struggle in India. To illustrate
the growth of capitalism in India I quote the following figures from the 15 volumes
of official statistics for the year 1917. In the year 1917 there were 8,000 mills and
workshops, of which 67 per cent. were driven by mechanical power. The railway
and tramways amount to 38,000 miles. The total industrial production was valued at
£261,000,000. This is excluding handicraft work and including railways. The
persons taking part in this production numbered 3,500,000; thus the production per
person employed was £74 for the year. In the United Kingdom in 1907 the
production per person amounted to £100. Of these workers 327,000 formed the
bureaucracy, both native and Europeans; the rest were wage earners.

13. The sum paid as wages amounted only to £27,000,000, or little over 10 per cent. of
the production, as against 53 per cent. in the United Kingdom and 50 per cent. in the
United States in 1907. The salaries paid amounted to £33,000,000, or £6,000,000
more than the wages of the proletarians. These salaries are due to the existence of
about 28,000 European workers, whom the capitalists have to bribe with high wages
in order to keep them on their side and to keep them out of the Labour movement
and away from the Indian native workers.
Deducting 33 per cent. of the total production as cost of material and 23 per cent.
from wages and salary, we can fix the profit at 44 per cent. on an average. To
support this the following figures from the Labour Review of November last may
prove interesting. In one year the Indian cotton textile mills profited l00 per cent. of
its outlayed capital. One factory in 1920 declared a dividend of 160 per cent. on an
inflated capital of £300,000, while the dividend declared becomes 500 per cent.
when the original capital invested by the shareholders is taken into account, which
was only £100,000. Another mill, the Ring Mills, declared a dividend of 365 per
cent. in the same year. Over a dozen mills have given dividends between l00 per
cent. and 300 per cent., and quite a number between 50 per cent. and l00 per cent.
The same thing was also shown in the jute and textile industry, where numerous,
mills declared dividends from 150 to 330 per cent. Dividends in sugar works were
about 60 per cent., and in the oil and flour mills 140 per cent. That of publishing
houses was l00 per cent., etc.
The size and importance of the various industries can be judged from the following
table:—
INDUSTRY.
Cotton textile, 284 mills, but capital only known for 264, amounted to £19,000,000.
Jute textile, 76 mills, but capital only known for 76, amounted to £10,000,000.
Coal mining, 850 mines, but capital only known for 236, amounted to £6,000,000.
Plantations, 1,300 plantations, but capital only known for 300, amounted to £22,000.

14. Railway capital at the end of the year 1917-18 was £366,436,000, and the percentage
of return on capital was very high. The net gain from the railways to the Government
alone was £10,000,000.
The coal mining industry in that year produced £4,512,000. Deducting from this one
and a half per cent. to cover the cost of material, which is the rate in the United
Kingdom, Germany and France, we get the income of the mines at £3,902,880; of
this 25 per cent. or £978,036 was paid as wages against 56 per cent. in France and 59
per cent. in Germany before the war. The salaries amounted to £350,000, and the
rest was profit.
The coal mines show dividends which rise to 120 per cent. In one case the average
dividend for 15 years was 95 per cent. The cheapness of woman labour has already
caused their wholesale introduction into all industrial spheres. In one year 43 per
cent. of the coal mine workers were women. No less than 40,030 women and 665
children were employed underground, and 18,872 women and 2,283 children
worked on the top.
The earnings of the miners were £10 8s. per year as against £55 in France and £57 in
Germany before the war. The average wages of the mine workers were £6 in 1917,
which was raised to £7 5s. in 1918, or 6d. per working-day. The cheapness of labour
in India has kept the modern improved machines out of the Indian mines; as a result
of obsolete methods 30 per cent. of the labour is wasted.
Again, in the tea gardens, the output amounted to £12,400,000, and putting 20 per
cent. aside as cost of material, we get £9,920,000 as the income. The workers
numbered 703,585, of whom 640,267 are women. The wages paid amounted to
£3,579,952, or 35 per cent. of the income. The salaries paid amounted to 60 per cent.
of the amount paid in wages, and two-thirds of these salaries were drawn by a few
European supervisors. The average wage of a woman worker in the tea plantations
was £5 per year.
Eighty per cent. of the factory capital, 30 per cent. of the plantation capital, 40 per
cent. of the mining capital, and 2 per cent. of the railway capital is Indian. Three-
fourths of the rest is British and the rest international, mostly American. The

15. following figures will show the increase of the Indian industry since 1917:—“The
average total capital of the new companies registered in India year by year was
approximately £12,000,000 per year for the years 1910-14. In the first three years of
the war the average fell to £6,000,000 per year. After the war it rose to the enormous
figure of £183,000,000, and in 1920, to March, 1921, owing to the extraordinary
ordinary disturbances in the exchange rate, it went up to £100,000,000.”
On the face of these figures it is needless to argue about the class struggle in India.
These figures prove that the struggle between labour and capital in India is a struggle
of a twofold character—it is both a class struggle against native capitalists and a
fight against British imperialism. This explains why the class war sometimes appears
in a national form.
There is an idea that the Indian workers are semi-proletarian; and that they have
connection with their native villages, where they can take refuge in case of long
trouble. To disprove this I quote the following written by a Indian trade union
secretary who inquired into the matter after the plantation workers’ strike of last
year. He writes:“The nationalists repatriated the workers in their villages, with the
result that all of them returned to the gardens and the strike was lost. I found that the
repatriation of the coolies had practically resulted in sending them to death. Most of
the returning emigrants had no homes, no lands.
Many of them had been born in the gardens and did not even know the names of
their villages. The village people absolutely refuse to have anything to do with them.
The villagers find it difficult to keep themselves from starvation, and therefore
feeding the returned coolies is an impossibility. In the villages there are no industries
in which these men might be employed, nor any kind of work can be found for the
day labourers. It is futile to bring away the coolies from the gardens and send them
to the villages, because 50 or 60 men are leaving daily for the gardens owing to the
famine conditions prevailing there.”
Indian labour can be divided into five groups: (1) The land labourers, who are the
largest in number—about 30,000,000. Their chronic poverty, continual semi-
starvation, are well known; it is bitterly illustrated by the fact that their earnings,
including unemployed days, are between £4 and £6 per year. (2) The plantation

16. workers, whom I have already described. The planters are organised, and
consequently their misery is not growing. (3) The mine workers. In the mining
districts rice is the main food of the miners.
The price of clothing has gone up three times, but the wages have remained the same
since 1918; the average wage is 6d. per day, and 300 working days a year. (4) The
handicraft workers, numbering about 2,500,000 hand weavers and 8,700,000 metal
wood, ceramic, and other hand labourers. Their income, according to the calculation
of the India Industrial Commission of 1916-18, was, weavers £2 7s. per year, and
others £4 a year. (5) The factory going workers, who stand as the advance guard of
the labour movement. To a certain extent the second and third groups are still the
mainstay of the Nationalist leaders, whose opportunism is forcing the workers
towards class-consciousness, as was proven during the plantation strikes of last year.
The main principles of the Indian Trade Unions are as follow:—(1) The status of
labour as a labourer, his relation to his employer, and effect on the economic and
industrial life of the country. (2) The status of the labourer as a citizen, as related to
the political movements and its result. (3) The status of the labourer in the industrial
world, which has been rising ever since the Russian Revolution.
These extracts are from the Madras Labour Union’s programme. It is said that the
Union started with the first principle. “It was when the work of education was
begun, when several questions were submitted by the Union men, that the second
factor emerged. . . . In dealing with the second we were face to face with the
necessity of recognising the third factor.” It is further given out that in formulating
these principles very little help was received from the educated class. “The
workpeople themselves, with a culture of their own, vaguely felt, but were unable to
express what was passing in their mind, and what was bound up in the three factors
described above.”
The value of solidarity has already been realised by the Indian workers. The
president of the Madras Union, Mr. Wadia, writes “Indian labour understands that
men working on the railway in Punjab, in the mills of Bombay, in the engineering
shops of Bengal, are no better off than those working in the mills of Messrs. Binney
& Co., Madras.

17. The distance of a few hundred miles makes no difference in their solidarity, which
alone will lead them to the final victory, the destruction of wage slavery.” About the
International he says: “The fate of the International is in the balance, what with the
activities of the Second and Third, but as soon as a properly constituted International
begins to work the Indian labourers will naturally ally themselves with the
movement. The labourers, by themselves, are not sufficiently organised; they are not
educated in the modern method of political struggle, and, therefore, if a long, weary
fight between labour and capital, between landlordism and peasantry, is to be
avoided, the Indian labourer must gain moral and other support from his comrades
and brothers in other parts of the world.”
The Unions in India were not recognised by the capitalists at the beginning, and the
government backed their attitude. But the strength of the movement has forced
recognition upon both of them. In November, when the Second Congress was to
have taken place, the Mine Owners’ Association opposed it and requested the
Government to send the military to disperse it, but the Government refused.
Consequently the conference went on unhampered, and the clever bourgeoisie,
finding it not possible to fight labour face to face, adopted the diplomatic method
and sent a deputation to make friendly relations with the workers, but not with the
labour leaders. This capitalist deputation apologised for its former opposition and
agreed to adopt 44 hours a week instead of 72, in addition to some other minor
concessions.
The direction of this potential revolutionary labour movement in India is in the
hands of people who can be classed into four groups (1) The Nationalists; (2) The
Reformists; (3) The Government and capitalist agents; and (4) the leaders who have
come out from the ranks of the labouring class. (1) The foremost of the Nationalist
politicians interested in labour is Mr. Lajpat Rai. He is the veteran centrist leader, a
rich advocate, a journalist and landowner, but very orthodox. The same Mr. Rai in
the year 1920 shamelessly condemned the printers’ strike of Lahore because it
touched his pocket. Despite this, in 1921, a year afterwards, he was elected as
president of the First All-Indian Trade Union Congress. The union leaders who
elected him to preside, by this action alone, demonstrated their real character.
Another Nationalist labour leader is Mr. B. K. Chakrabarty, an advocate, landowner,

18. and multimillionaire. He was the president of the Calcutta Tramway Workers’
Union, one of the most virile groups of Indian workers. Dr. R. K. Mukherji, a
bourgeoisie economist and professor, is a leader of a small national centrist group.
He was delegated from the Bengal Unions to the First Congress of the Trade Unions.
Some dozen other such advocates and professors can be shown to be interested in
trade unionism; it is the fashion, at present, to become a labour leader in India. This
is due to the fact that the nationalists understand the power of the industrial labour
movement and want to control it; besides, it wants to frighten the Government with
the organised force of the unions for political purpose.
(2) Mr. Gandhi, the now imprisoned leader of the Indian nationalists, also tried his
hand on the trade unions, but without much success. He left the labour field after the
workers of the textile mills of Ahmedabad, Gandhi’s native town, refused to break
the strike on terms agreed between himself and the nationalist mill owners. He said:
“We must not tamper with the labourers. It is dangerous to make political use of the
factory proletariat“ (The Times, May, 1921).
The most prominent leader of the labour movement is Mr. B. P. Wadia. It was he
who first started the labour unions in India. Wadia is an ex-member of the Indian
Home Rule League (a moderate political organisation with a programme to achieve
self-government by gradual concessional process) and a well-known theosophist. He
is president of five virile unions in Madras. He says that the economic aim of the
Indian labour movement is not only to get higher wages, etc., but the ultimate
destruction of wage slavery. In his opinion the international labour movement is too
materialistic, and lacks a soul. This spiritual task, he contends, is a special one left
for the Indian workers to develop. His reformist attitude became most marked in his
evidence on labour reform, given before the Joint Parliamentary Committee, which
collected material to find the best means of introducing political reforms into India.
He said: “It is my considered opinion that Indian Ministers are better fitted to carry
out adequate factory reforms than the Official Executive.”
The next leader in importance is the reformist Indian Labour leader, Mr. Joseph
Baptista. He was president of the Second Congress of the Indian Trade Union
Congress. Four months before the Congress, on the 29th July, he addressed a mass

19. meeting requesting them to follow the pacificism preached by Gandhi. He was met
with cries of “Shame.” The chairman of this meeting was Mr. Jamnadas Dwarkadas,
a well known member of the Bombay Mill Owners’ Association, and among those
present on the platform was Mr. R. Williams, chief Publicity Bureau officer of the
Government of Bombay.
This bureau was specially created to fight the revolutionary tendency of the masses.
Mr. Baptista came to the forefront after Colonel Wedgewood’s visit to India, and
though we do not know of any relation or agreement between them we know that
Mr. Baptista is following the policy of the very moderate I.L.P. Labour M.P., and is
introducing Fabian Socialism to India. In his presidential speech he declared that:
“The political policy of the Congress must steer clear of extreme Individualism and
Bolshevism and follow the golden path of Fabian Socialism.”
The Government and capitalist agent types of labour leaders are Mr. Lokhande, of
Bombay; Dr. Nair, of Madras, and Mr. Jones, of Calcutta. Jones was the general
secretary of the All-Indian Railwaymen’s union. He was the J. H. Thomas of India,
and he had to resign because his treachery became too well known. The charges
against the first two are so well known that Comrade Saklatvala had to warn
everybody against them recently in the Labour Monthly. Regarding these types of
labour leaders, there are very few Indians amongst them; they are mostly Europeans
residing in India. We want European assistance, but we do not desire moderate
Labourism of the I.L.P. brand. It is here that the British Communist Party can and
ought to help us directly.
The labour leaders who have come from the masses themselves are not very well
known. One who has become prominent is Comrade Viswanandda, leader of the
miners of Bihar. At the Second Congress he declared that “If the present misery of
the workers of India is allowed to continue nothing will stop Bolshevism. Let them
take due warning, because the Indian workers are determined to become the rightful
owners and rulers of the wealth produced by their labour.”
These mass leaders lack a definite viewpoint. They have picked up, here and there,
some news of the Russian revolution from the bourgeoisie newspapers, and a few
Communist ideas have influenced them. But they are our men, and we ought to

20. gather them together for the Indian Communist Party and then push them to take
leadership of the unions. This is the immediate task of the Party.
But in India there is no strong Communist Party, and it will take some time to create
an effective one. The Internationals are not yet in touch with India, and at the present
rate no one knows how long it will take them to reach the native masses. On the
other hand, as I have shown, the Indian Fabians and moderates are spending all their
energy to capture the masses. That they are somewhat successful may be seen in the
growing timidity of the strike movement. The Indian workers have been flattered by
the moderate labour leaders, and have been urged to be contented with the little
increases in wages, etc., which were won during the time of the great strikes.
The British Labour Party is also busy with the Indian workers and their unions.
These British leaders must understand, however, that the industrial victories of the
English workers can only be maintained by co-operation with the Indian masses. For
their own interests, therefore, the British workers must stand on common ground
with their coloured comrades of India. The tie of economic interests that binds them
is very close. The British Labour Party, which expects to control the governing
power very soon, must stop fooling the Indian masses by pushing the Baptista
moderate type of labour leader. On the other hand the organising radical societies in
England for helping the Indian workers must show the International comrades that
the real driving force in Indian emancipation rests in the organised power of the
native masses.
Characteristics of Indian labor:
Labour includes both physical and mental work undertaken for some monetary reward. In this
way, workers working in factories, services of doctors, advocates, ministers, officers and
teachers are all included in labour.
Any physical or mental work which is not undertaken for getting income, but simply to attain
pleasure or happiness, is not labour.
Characteristics of Labour:

21. Labour has the following peculiarities which are explained as under:
1. Labour is Perishable:
Labour is more perishable than other factors of production. It means labour cannot be stored. The
labour of an unemployed worker is lost forever for that day when he does not work. Labour can
neither be postponed nor accumulated for the next day. It will perish. Once time is lost, it is lost
forever.
2. Labour cannot be separated from the Labourer:
Land and capital can be separated from their owner, but labour cannot he separated from a
labourer. Labour and labourer are indispensable for each other. For example, it is not possible to
bring the ability of a teacher to teach in the school, leaving the teacher at home. The labour of a
teacher can work only if he himself is present in the class. Therefore, labour and labourer cannot
be separated from each other.
3. Less Mobility of Labour:
As compared to capital and other goods, labour is less mobile. Capital can be easily transported
from one place to other, but labour cannot be transported easily from its present place to other
places. A labourer is not ready to go too far off places leaving his native place. Therefore, labour
has less mobility.
4. Weak Bargaining Power of Labour:
The ability of the buyer to purchase goods at the lowest price and the ability of the seller to sell
his goods at the highest possible price is called the bargaining power. A labourer sells his labour
for wages and an employer purchases labour by paying wages. Labourers have a very weak
bargaining power, because their labour cannot be stored and they are poor, ignorant and less
organised.
Moreover, labour as a class does not have reserves to fall back upon when either there is no work
or the wage rate is so low that it is not worth working. Poor labourers have to work for their

22. subsistence. Therefore, the labourers have a weak bargaining power as compared to the
employers.
5. Inelastic Supply of labour:
The supply of labour is inelastic in a country at a particular time. It means their supply can
neither be increased nor decreased if the need demands so. For example, if a country has a
scarcity of a particular type of workers, their supply cannot be increased within a day, month or
year. Labourers cannot be ‘made to order’ like other goods.
The supply of labour can be increased to a limited extent by importing labour from other
countries in the short period. The supply of labour depends upon the size of population.
Population cannot be increased or decreased quickly. Therefore, the supply of labour is inelastic
to a great extent. It cannot be increased or decreased immediately.
6. Labourer is a Human being and not a Machine:
Every labourer has his own tastes, habits and feelings. Therefore, labourers cannot be made to
work like machines. Labourers cannot work round the clock like machines. After continuous
work for a few hours, leisure is essential for them.
7. A Labourer sells his Labour and not Himself:
A labourer sells his labour for wages and not himself. ‘The worker sells work but he himself
remains his own property’. For example, when we purchase an animal, we become owners of the
services as well as the body of that animal. But we cannot become the owner of a labourer in this
sense.
8. Increase in Wages may reduce the Supply of Labour:
The supply of goods increases, when their prices increase, but the supply of labourers decreases,
when their wages are increased. For example, when wages are low, all men, women and children
in a labourer’s family have to work to earn their livelihood. But when wage rates are increased,
the labourer may work alone and his wife and children may stop working. In this way, the

23. increase in wage rates decreases the supply of labourers. Labourers also work for less hours
when they are paid more and hence again their supply decreases.
9. Labour is both the Beginning and the End of Production:
The presence of land and capital alone cannot make production. Production can be started only
with the help of labour. It means labour is the beginning of production. Goods are produced to
satisfy human wants. When we consume them, production comes to an end. Therefore, labour is
both the beginning and the end of production.
10. Differences in the Efficiency of Labour:
Labourer differs in efficiency. Some labourers are more efficient due to their ability, training and
skill, whereas others are less efficient on account of their illiteracy, ignorance, etc.
11. Indirect Demand for Labour:
The consumer goods like bread, vegetables, fruit, milk, etc. have direct demand as they satisfy
our wants directly. But the demand for labourers is not direct, it is indirect. They are demanded
so as to produce other goods, which satisfy our wants. So the demand for labourers depends upon
the demand for goods which they help to produce. Therefore, the demand for labourers arises
because of their productive capacity to produce other goods.
12. Difficult to find out the Cost of Production of Labour:
We can easily calculate the cost of production of a machine. But it is not easy to calculate the
cost of production of a labourer i.e., of an advocate, teacher, doctor, etc. If a person becomes an
engineer at the age of twenty, it is difficult to find out the total cost on his education, food,
clothes, etc. Therefore, it is difficult to calculate the cost of production of a labourer.
13. Labour creates Capital:
Capital, which is considered as a separate factor of production is, in fact, the result of the reward
for labour. Labour earns wealth by way of production. We know that capital is that portion of
wealth which is used to earn income. Therefore, capital is formulated and accumulated by

24. labour. It is evident that labour is more important in the process of production than capital
because capital is the result of the working of labour.
14. Labour is an Active Factor of Production:
Land and capital are considered as the passive factors of production, because they alone cannot
start the production process. Production from land and capital starts only when a man makes
efforts. Production begins with the active participation of man. Therefore, labour is an active
factor of production.
Strategies for Good employee relations:
Employee relations, simply defined, is the relationship between employeesand employers.
Every company knows they need an effective employee relations strategy, but few do much
about it and many are not sure how to go about forming a strategy. ... Employees want to
feel good about what they do and where they work.
For the organization to perform better it is important that the employees are comfortable with each other, share
a good rapport and work in close coordination towards a common objective. People feel responsible and
motivated to do good work and enjoy their work rather than taking it as a burden.
It is important that the management promotes healthy employee relations at workplace to extract the best out of
each individual. Competition is essential but it should not promote negativity or any kind of enmity among the
employees.
Let us go through some steps and strategies for a healthy employee relationship in the organization.
 Involve your team members: They should feel important and indispensable for the organization. An
individual must be assigned responsibilities according to their interests and responsibilities. Don’t
impose work on them. Let them willingly accept challenges. They must enjoy whatever they do
otherwise they would end up fighting with their superiors and fellow workers.
 Encourage individuals to share their work with each other: This way people tend to talk with each
other more, discuss things among themselves and thus the comfort level increases. Let them work
together and take decisions on their own. A team leader should intervene only in extreme cases of
conflicts and severe misunderstandings.

25.  Assign them targets and ask all your team members to contribute equally and achieve the target
within the desired time frame. Motivate them to work in groups. This way employees have no other
choice than to trust their fellow workers and take each other’s help as well. An employee must have
the liberty to express his ideas and all of them should sit together to decide on something which would
be beneficial to all.
 One should try his level best that all the employees must have their lunch together at the same
time. Half an hour to fourty five minutes must be dedicated to lunch and one should not discuss work
during lunch time. There are other topics as well. Discuss movies, sports, shopping or any other thing
under the sun. There will be no harm if the employees go out together once in a while for get
togethers, picnics or shopping. Ask them to bring their family members as well.
 Encourage effective communication among the team members. It has been observed that poor
communication leads to confusions and misunderstandings. The communication has to be precise and
relevant. One should not play with words and be very specific about his expectations from his fellow
workers as well as the organization. If you are not very happy with your colleague’s proposal, don’t
keep things to yourself. Voice your opinion and do express your displeasure. It will definitely prevent
a conflict among employees later and improve the relations among them. Be straightforward. Don’t
pretend things just to please your boss. If you find anything unacceptable, discuss with your superior
but in a polite way.
 Written modes of communication must be promoted among the employees for better
transparency. Verbal communication is not as reliable as written communication. The agendas,
minutes of the meeting, important issues must be circulated among all through emails. Make sure that
all the related employees are in the loop. Don’t communicate individually with any of the employees
as the other one might feel neglected and left out.
 Morning meeting is another effective way to improve the relation among the employees. Let
everyone come together on a common platform and discuss whatever issues they have. The meetings
must not be too formal. Allow the team members to bring their cups of coffee. Start your day with a
positive mind. Greet everyone with a warm smile. Exchange greetings and compliments. If any of
your team member is not in a pleasant mood, do take the initiative and ask what is wrong with him.
Try your level best to provide him a solution.
 Organize birthday parties, Christmas parties, NewYear parties etc. at the workplace. These small
initiatives actually go a long way in strengthening the bond among the employees. Ask all of them to
decorate the office, their work stations and make all the necessary arrangements themselves. You will
actually be surprised to find out that everyone would be ready with some thing or the other.
Employees would actually take the initiative and organize things on their own. Let them enjoy with
each other and have fun.

26. Praise the individual if he has done something exceptionally well. Reward him suitably. The names of
the top performers must be displayed on the notice boards for others to draw inspiration from them.
Encourage everyone to perform well to live up to the expectations of the superiors as well as the
management.
A healthy relation among employees promotes a positive ambience at the work place and employees feel
happy and satisfied at work. They look forward to going to office daily and also work hard to realize their
team’s as well as organization’s goals.
UNIT 2
Indian Trade Union Movement
As a result, the All India Trade Union Congress (AITUC) was formed in 1920. By 1924, the
trade union movement in India proliferated to the extent of 167 trade unions with a quarter
million members. This period in the history of trade union movement has been described as the
Early Trade Union Period.
The six phases of trade union movement in India are as follows: A. Pre-1918 Phase B. 1918-
1924 Phase C. 1925-1934 Phase D. 1935-1938 Phase E. 1939-1946 Phase F. 1947 and Since.
Trade unionism is a world-wide movement. The evolution and growth of trade unionism has
been sine qua non with growth in industrialisation. Accordingly, the evolution of trade unionism
in India is traced back towards the latter half of the nineteenth century.
The origin and development of trade union movement in India may well be studied under distinct
phases with their distinguishing features from others.
A historical account of the various phases of trade union movement in India is presented
now:

27. Trade unions and Laws:
It is due to the reasonable restriction which can be imposed by the Government as
per the provisions ofthe Constitution of India. ... The Indian Trade Unions Act, 1926
is the first legislation in India to register, regulate and promote trade unions inIndia.
The Trade Union Act, 1926 is the important law related to Trade Unions in India. Industrial
revolution during the 19th century brought massive changes in England and other western
countries. There are radical changes in every process of manufacturing, the method of
production, shipping, etc.revolution, due to the IRevolution, which resulted in changes in the
social life. Due to the scientific and technology developments in the Industrial sector, there was a
tremendous growth in every society, that caused the emergence of two classes, namely the
working class (wage earning class) and the Managerial Class (entrepreneur class). [1]These two
classes had conflicting interests and were striving hard to achieve the same. The working class
claimed higher wages and better working conditions while the entrepreneur class demanded
maximum production at minimum wages.
The Industrial Development in Western Countries started reflecting in this vast country, but at a
slow pace. The Trade Union movement in India has emerged due to Industrial Revolution, as a
result of growing complexities of an economic structure of the country.[2]Due to the slow pace
of industrial development in this vast country before the first world war, there was a very slow
growth of trade union movements in India. Instability of labour force, lack of leadership,
deprivation of freedom of expression during the British rule were also the reasons for the slow
rate of growth of trade union movements in India.[3]
The first organised labour movement in India was in 1884 by N.M.Lokhande, who was a factory
worker in Bombay who organised an agitation and convened a conference of workers to make
representations to the Factory Commission appointed by the then British Government to study
the conditions of the working class in factories.
The period between 1904 to 1911 brought in tremendous growth in trade unionism in
India.[4] During this period, the Printers’ Union in Bengal, the Kamgar Hitwardhak Sabha in

28. Bombay and Postal Clubs in Madras, Bombay and Calcutta were formed. Ahmadabad Textile
Labour Association is an important federation in the history of trade union movement in India as
this was the first federation of the different occupational unions in the Ahmadabad textile units.
It was formed due to the inspiration from the father of the nation, Mahatma Gandhiji and had a
close association with him. In 1920, the leaders of Indian National Congress, due to the necessity
brought by the growth of Trade Unionism, founded the All India Trade Union Congress. It was
the apex organisation with a hierarchical set-up across the nation at the provincial and regional
levels and finally linking the individual unions. In the year 1920, the AITUC for the first time
represented the Indian Labour at the International Labour Organization.
Shri. N.M. Joshi is the father of modern trade unionism in India, and he introduced the Trade
Union Bill in the Assembly in 1921.[5] There was a struggle for legal recognition of trade unions
in India during that time due to adverse conditions. The Government was reluctant to pass the
bill and finally compelled to enact the Indian Trade Unions Act, 1926, due to heavy pressure
from the political parties.
Before independence, the attitude of the colonial government was in favour of the foreign
employer and to the protect the interest of British Business Owners. The British Colonial
Government was acting mechanically in assuring minimum employment conditions to workers
and deciding the merits of labour disputes. After independence, the Indian Government brought a
fair deal to the working class and passed several labour welfare legislations conferring rights and
benefits to the working class. The Factories Act, 1948, The Industrial Disputes Act, 1947, The
Minimum Wages Act, 1948, The Payment of Wages Act, 1965, The Workmen’s Compensation
Act, 1923, The Employees Provident Funds Act, 1952, The Maternity Benefit Act, 1961., etc
were called “Welfare Legislations” as these legislations envisage welfare of workers.
A Trade Union is a voluntary organisation of the workers in a specific industry or occupation.
Article 19(1)(c) of the Constitution of India guarantees freedom of association as a fundamental
right and confers the workers, right to combine and organise for collective action or bargain.
However, such a right is not available for a certain category of jobs. It is due to the reasonable

29. restriction which can be imposed by the Government as per the provisions of the Constitution of
India.
Government Servants cannot form trade unions under the Trade Unions Act, 1926 (Tamilnadu
N.G.O. Union vs. Registrar of Trade Unions, LLJ 753 (Mad)).[6]
In various judgments of the Supreme Court of India and a majority of Industrial Tribunals, held
that “a dispute raised by a dismissed employee/workman will not be treated as an industrial
dispute, unless it is supported by a trade union, registered or not, or by a body or section of
workmen”.[7] Hence, a trade union or a section or a body of workmen must represent a dispute
to be declared as an Industrial dispute. Or else it will be considered as an individual dispute.
Registration of a trade union is not mandatory. As the registered trade unions enjoy various
privileges and immunities, it is better to get the trade union registered. The Indian Trade Unions
Act, 1926 is the first legislation in India to register, regulate and promote trade unions in India. It
was amended in 1964, by which the word ‘Indian’ was omitted and the act was rechristened as
“The Trade Unions Act, 1926”.
Object and Scheme of Trade Union Act, 1926
The main object of the Trade Unions Act, 1926 is to provide machinery for the registration,
regulation and protection of the rights and privileges of the trade unions. The term ‘trade union’
used in this act is not confined alone to the workers’ union, but also includes employers’
association as well. The act also prescribes for what purposes the trade union may spend its
general funds and also give provisions for creating a separate fund for political purposes. The
main object of the act is to ensure industrial harmony. The members of the registered trade
unions are protected from various civil and criminal liabilities and enjoy immunities and
privileges.
The Trade Unions Act, 1926 has 5 chapters and 33 sections.[8] Chapter I contains Sections 1 and
2. Section 1 gives primary aspects viz. title, extent and application of the act. Section 2 defines

30. various terms under this act viz. Trade Union, Workmen, Trade, Business etc. Chapter II
contains Section 3 to 14 and gives provisions for the registration of trade unions. Chapter III
contains Section 15 to 28, dealing with rights and liabilities of the registered trade unions.
Chapter IV contains Sections 29 and 30, conferring power on the appropriate government to
make regulations regarding the trade unions. By exercising the power conferred under Section 29
of the act, the Union Government of India enacted “The Trade Unions Regulations, 1938”, and
the state governments were also empowered to enact regulations for trade unions of the
respective states. The Chapter V of the act contains Sections 31 to 33 gives provisions for the
penalties and procedure.
What is a Trade Union? Meaning & Definition
A Trade Union is commonly understood as an association of wage earners or workers. Usually it
is a voluntary association of workers in a particular industry or craft. Trade Union is an
association of wage earners for the purpose of maintaining and improving their working
conditions. The definition of ‘Trade Union’ according to the Trade Unions Act, 1926 is same as
the definitions in the British Trade Union Acts of 1871, 1875 and 1913.
Section 2(h) of the Trade Unions Act, 1926 defines Trade Union[9] as “any combination whether
temporary or permanent, formed primarily:
 for the purpose of regulating relation between:
o Workmen and employers; or
o Workmen and workmen; or
o Employers and employees.
 imposing respective conditions on the conduct of any trade or business and includes
any federation of two or more trade unions, is called Trade Union: Provided that this
act shall not affect-
o Any agreement between partners as to their own business.
o Any agreement between an entrepreneur and those employed by him as to
such employment; or

31. o Any agreement in consideration of the sales of the goodwill of a business
or of instruction in any profession, trade or handicraft.
Important elements of Trade Union:
1. There must be combination of workmen and employers;
2. There must be trade or business; and
3. The main object of the Union must be to regulate relations of employers and
employees or to impose restrictive conditions on the conduct of any trade or business.
Registration of Trade Union
The main object of the Trade Unions Act, 1926 is to provide machinery for registration and
regulation of Trade Unions. Although registration of a trade union is not mandatory, it is
advisable to register the trade unions as the registered trade unions are entitled to get several
benefits, immunities and protection under the act. There are specific rights and privileges
conferred on the members of the registered trade unions. The members of the registered trade
unions are entitled to get protection, immunity and certain exceptions from some civil and
criminal liabilities. A trade union can only be registered under the Trade Unions Act, 1926, and
cannot be registered under any other act including the Societies Registration Act or the Co-
operative Societies Act or the Indian Companies Act. [10]
A Civil Servants’ Union cannot be registered under the Trade Unions Act, 1926. In the case of
Tamilnadu N.G.O’s Union vs. The Registrar of Trade Unions (AIR 1962, Mad. 2341)[11], the
Madras High Court dismissed the appeal on the ground that, to get the trade union registered
under the Trade Unions Act, 1926, the members of the union must be workmen engaged in trade,
business or industry and the appellants in this case are not in that capacity, as they are civil
servants engaged in the tasks of the sovereign government.
In the case of Registrar of Trade Unions, West Bengal vs. Mihir Kumar Gocho (AIR 1963, Cal.
56)[12], the Calcutta High Court held that employees of E.S.I. Corporation would come within
the meaning of workmen and hence, they could be registered under the Trade Unions Act.

32. Chapter II containing Sections 3 to 14 of the Trade Unions Act, 1926 and Central Trade Union
Regulations, 1938[13] containing 17 Rules and Forms A, B and C provide for the procedure and
formalities for registration of the trade unions. For registration of the trade union, an application
shall be submitted to the Registrar of Trade Unions appointed by the appropriate government
under Section 3 of the Trade Unions Act, 1926. Section 4 provides for the mode of registration.
According to Section 13 of the act, every registered trade union shall be a body corporate by the
name under which it is registered. Such registered trade unions will have perpetual succession
and a common seal. A registered trade union can sue in its own name and can acquire movable
and immovable properties in its own name.
Recognition of Trade Union
There is no specific provision for the recognition of the trade unions under the Trade Unions Act,
1926. Hence, recognition is a matter of discretion in the hands of the employer. Provisions for
the recognition of trade unions were included in the Trade Union (Amendment) Act, 1947, but
the act has not been implemented. The Trade Union Bill, 1950 also provided for recognition of
trade union (based on the largest membership among the existing trade unions), but the bill
lapsed due to dissolution of parliament.
The Bombay Industrial Relations Act, 1946 and the state acts of Madhya Pradesh and Rajasthan
have provisions making the recognition a compulsory process.[14] Once a trade union is
recognized, the recognition cannot be withdrawn without complying with the rules of natural
justice.
There are certain additional privileges and rights available for the recognized trade unions. Those
are:
1. the right to sole representation of the workers in any collective bargaining;
2. to raise issues and enter into agreements with employers on general questions
concerning the terms and conditions of employment;

33. 3. to collect membership fees and subscriptions payable by members to the union within
the premises of the undertakings or demand check off facility;
4. to put up notice board in the premises of the undertaking and affix notices relating to
meetings, statements of accounts and other announcements;
5. to discuss with employer the grievances of the workers; and
6. to nominate its representatives to the grievance committee or statutory and non-
statutory bipartite committees.
Recognition of the Trade Union is different from registration of the Trade Union. A registered
trade union is entitled to all protections, immunities, rights and privileges provided by the Trade
Unions Act, 1926, even if it is not recognized by the employer.[15]
Recognition of Central Trade Unions
The Central Government gives recognition to Trade Union as Central Trade Union for the
purpose of representing in the International Labour Organizations and International Conferences,
if such trade union fulfils the following conditions:
 The Union has a minimum of five lakhs membership as on March, 1997.
 The Union must have members from at least four states,
 The Union must have a membership at least in four industries.
The Central Chief Labour Commissioner is authorized to verify the fulfillment of above
conditions.
Privileges and Immunities of Registered Trade Unions
The Trade Unions Act, 1926 confers certain privileges and immunities to the members and
leaders of the registered trade unions to enable them to carry out their legitimate trade union
activities without any fear or threat of civil or criminal action/liability. It is the most important
right without which the office bearers of the registered trade unions may not be able to discharge
their duties efficiently.

34. Section 17 of the Act provides immunity from Criminal liability. According to this provision, the
office bearers of the registered trade unions are immune from criminal liability for criminal
conspiracy.
Section 18 provides immunity from civil liability. According to this provision, the leaders and
office bearers of the registered trade unions are immune from civil suits in certain cases, viz.
contractual liability, tortuous liability etc.
Collective Bargaining
The term “Collective Bargaining” was used by Beatrice Webb[16] in 1897 for the first time in
his famous book “Industrial Democracy”. Collective Bargaining means negotiation between the
employer and workers to reach agreement on working conditions and other conflicting interests
of both sides (employer and workers).
In simple words, collective bargaining means bargaining between an employer or group of
employers and a bonafide labour union. There are few advantages and disadvantages of
collective bargaining.
Advantages:
1. Collective Bargaining imposes an obligation on both parties to the dispute and creates
a specific code of conduct for parties to the process.
2. The parties to the dispute undertake not to resort to strikes or lock-outs, and thus
collective bargaining ensures peace and industrial harmony.
Disadvantages:
1. Increase in wages, and extra expenses to provide other amenities to workmen and
improvement of working conditions can cause higher cost of production.
2. Political interference in the labour unions during the collective bargaining process
increases the chance for adverse effects.

35. Funds of Trade Union
A registered trade union is entitled to maintain two kinds of funds. They are – General Fund and
Political Fund. The Trade Unions Act, 1926 imposes certain conditions on the Trade Unions to
spend/utilize the funds only for some specific purposes as stated under Section 15 (General
Fund) and Section 16 (Political Fund) of the act.
According to Section 15 of the act, a registered trade union can create a general fund. Members
of the registered trade union have to contribute to the general fund. The fund can be spent for the
purposes as specifically stated in the Section 15 of the act.
Purposes for which the General Fund can be utilized:
1. The payment of salaries, allowances and expenses to office bearers of the trade union.
2. The payment of expenses for the administration of the trade union including an audit
of accounts of the general fund.
3. The expenses in connection with prosecution or defense undertaken for the purpose of
securing or protecting any rights of the trade union.
4. The conduct of trade disputes on behalf of the union or any member.
According to Section 16, the trade union must create a separate political fund for the purpose of
spending it for political cause.[17] Contributions to such political funds should be collected
separately. Contribution to the political fund cannot be compelled or made as compulsory or
condition to admit a person as member of the trade union. However the control and management
of the political fund can be vested exclusively to those members who contributed to the political
fund. Section 16(2) specifically states the purposes for which the political fund may be utilized.
Those are:
1. The payment of any expenses incurred by a candidate or prospective candidate for
election as a member of any legislative body or any local authority. The expenses
includes the expenses incurred before, during and after the election in connecting with
such candidature;

36. 2. Conducting any meeting or distribution of any literature or documents in support of
such candidate or prospective candidate;
3. Maintenance of any person who is a member of any legislative body or local
authority;
4. Registration of electors or the selection of a candidate for any legislative body or local
authority;
5. Conducting of political meetings or distribution of political literature and documents
to the members of the trade union or to the general public.
Rights, Duties and Liabilities
Rights of a registered trade union:
1. Right of Admission: Admission as a member of trade union is not an absolute right. A
registered trade union may impose certain qualifications and restrictions for
admissions subject to the provisions of the Trade Unions Act and Rules as well as any
other law in force.[18]
2. Right of Representation: A trade union can represent the employees in any industrial
dispute and in case of individual dispute, with the written authorization of the
employee. With such authorization, a trade union can represent before any
conciliation officer, industrial tribunal, labour courts etc.
3. Right to Contract: A registered trade union, being a legal person, can enter into
agreements and contracts on its own name.
4. Right to own property: A registered trade union can purchase and own movable and
immovable property in its own name.
5. Right to Sue: A trade union is a juristic person. It can sue, argue before any labour
courts, authorities and other courts on behalf of itself, and on behalf of its members.
6. Right to inspect books: Section 20 confers an important right to the members of the
trade union. The office bearers or the members can inspect the books of account at

37. such time as may be provided for in the rules of the trade union. The members,
however, have no right to take copies of such books of account.
7. Right to Amalgamate: According to Section 24 of the Trade Unions Act, 1926, two or
more registered trade unions may amalgamate as one trade union with or without
dissolution or division of funds of such unions.
Duties and Liabilities:
1. A registered trade union has a duty to inform the Registrar of Trade Unions by
sending a notice to that effect as to the change of address of the registered trade union.
2. The Act imposes on the registered trade union, duty to spend the funds (general fund,
political fund), specifically allotted for the purposes as stated in the provisions of the
act.
3. A registered trade union is under a duty to see that not less than 1/2 of the total
number of its office bearers in the case of unorganized sector and 1/3 or 1/5
whichever is less in other sectors (according to amendment in 2001[19]) must be
persons actually engaged or employed in an industry with which the trade union is
connected with. Appropriate governments by an order (general or special order)
exempt a trade union from this provision.
4. Every registered trade union must submit every year, to the registrar of trade unions,
a) a general statement, audited in the prescribed manner of all receipts and
expenditures during the year ending 31st December, b) an audited statement of its
assets and liabilities as on 31st December, c) a statement showing change of office
bearers made by the trade union during that year and, d) a copy of the rules of the
trade union amended up to date.
5. Whenever any alteration is made in the rules of the registered trade union, a notice
regarding the altered rules must be submitted to the registrar of trade unions within 15
days of such alteration. [20]
6. Failure to submit the above said returns, or give notice of alterations, shall make every
office bearer or other persons who are responsible for such submission of particulars,

38. liable to pay fine which may extend to Rs.5 and in case of continuing default
additional fine of Rs. 5 for each week not exceeding Rs. 50 in total.
7. Any person who gives false information to any member of the registered trade union
with an intention of deceiving him is liable to be punished with fine which may
extend to Rs.200.
8. While electing a person as a member of the executive committee or for any other
office as office bearer must be confirmed that such person has completed the age of
18 and such person is not convicted of any offence involving moral turpitude. (In case
of any conviction and a period of 5 years has elapsed since his release then he is
qualified to be elected for these posts.)
9. A minister or a person holding an office of profit in the Union or State shall not be
elected as a member of executive or other office bearer of a registered trade union
(according to amendment in 2001[21]).
Amalgamation and Dissolution of Trade Unions
Amalgamation of trade union means merger of two or more trade unions into one trade union.
Section 24 to 26 of the Trade Unions Act, 1926 provides for amalgamation of trade unions. [22]
Amalgamation can be as follows:
1. Amalgamation with dissolution of trade unions,
2. Amalgamation without dissolution of trade unions,
3. Amalgamation with the division of funds of trade unions, and
4. Amalgamation without division of funds of trade unions.
According to Section 24 of the Trade Unions Act, 1926, two or more registered trade unions may
amalgamate together as one trade union with or without dissolution or division of the funds of
such trade unions or either or any of the trade unions.

39. For the amalgamation to be valid, the following conditions must be satisfied:
1. At least 1/2 of the members of the concerned trade unions must participate and vote
for amalgamation; and
2. At least 60% of the votes recorded are in favor of the amalgamation.
Section 25 of the Act lays down the procedure for amalgamation for the trade union. A notice in
writing as to the change of the name of the trade union after amalgamation must be served by the
Secretary and seven members of the trade union to the Registrar of the Trade Unions. If the head
office or any other office of the amalgamating trade unions are located in other states, notice is to
be served to the Registrar of Trade Unions in such other state/states. The Registrar of Trade
Unions on being satisfied with the fulfillment of conditions, registers the trade union by posting
an entry in the Register and issues a certificate to that effect. The amalgamation comes into force
with effect from the date of registration.[23]
Section 26 of the Trade Unions Act, 1926 gives provision for the change of name of a registered
trade union. Change of name does not affect the rights and liabilities of the trade union or does
not render any defect to the legal proceedings by or against the trade union. Similarly,
amalgamation of registered trade union shall not prejudice any right of the trade unions or any
right of a creditor to the trade union.
Dissolution of Trade Union: Section 27[24] of the Trade Unions Act, 1926 deals with the
dissolution of a registered trade union. For a registered trade union, the rules of such a registered
trade union under Section 6 (j) of the act, must make provisions for the dissolution of that trade
union. A registered trade union may be dissolved at any time. Notice of such dissolution signed
by the Secretary and any other 7 members of the trade union must be submitted to the Registrar
of Trade Unions within 14 days of such dissolution. The registrar on being satisfied that the
dissolution was effected in accordance with the rules of the trade union, will register the fact of
dissolution in the register. The dissolution will come to effect from the date of such registration
of dissolution by the Registrar of Trade Unions in the register. In case of the rules of the
registered trade union do not have any provisions for the distribution of funds of the trade union

40. on dissolution, the Registrar of Trade Unions may divide the funds among its members is such
manner as he thinks fit.[25] In case the rules of the registered trade union have provision for
division of funds, the division of funds will be done in accordance to the provisions in the rules.
In case of unregistered trade union, and the rules do not have provisions for dissolution, then
such trade union may be dissolved with the consent of all the members of the trade union, or by
an order of competent court.
Conclusion
The Trade Unions Act, 1926 is an important welfare legislation giving provisions for
registration, regulation, benefits and protection for trade unions. As such legislations envisage
welfare of workers, these are called ‘welfare legislation”.[26] In India, agreements between the
Trade Union and employers are enforceable under Section 18 of the Industrial Disputes Act,
1947 by filing a petition in Labour Court or Industrial Tribunal.
Trade Unionism in India is of recent origin in India. During the British rule, the Trade Union
movements were totally suppressed by the then British Government. Trade Unionism is accorded
recognition in 1926 for the first time in India, with the passing of Trade Unions Act, 1926. In the
recent years, Trade Unionism witnessed tremendous growth and development in India, not only
in the Industrial Sector, but also in the agriculture and other allied sectors.
Nature of Trade unions:
The employee's unions are primarily concerned with the terms and conditions of employment of
their members. ... A trade union of workers is an organization formed by workers to protect
their interests. i.e. improve their working conditions etc.

41. The trade union is an association, either of employees or employers or of independent workers.
It is a relatively permanent combination of workers and is not temporary or casual. It is an
association of workers engaged in securing economic benefits for its members.
According to Section 2(b) of the Trade Unions Act of 1926, “a trade union is any combination
of persons, whether temporary or permanent, primarily for the purpose of regulating the relations
between workers and employers, or between workers and workers and for imposing restrictive
conditions on the conduct on the conduct of any trade or business, and includes the federation of
two or more trade unions.”
Characteristics of Trade Unions
1. Association of employees: A trade union is essentially an association of employees belonging to
a particular class of employment, profession, trade or industry. For example, there are unions for
teachers, doctors, film, artistes, weavers, mine workers and so on.
2. Voluntary Association: An employee joins the trade union out of his free will. A person cannot
be compelled to join a union.
3. Permanent Body: A trade union is usually a permanent body. Members may come and go but
the trade union remains.
4. Common Interest: The member of a trade union have certain matters of common interest-job
security, better pay and working conditions and so on, which bring them together.
5. Collective Action: Even when an individual employee has any grievance over certain
management decisions, the matter is sorted out by the intervention of the trade union Employees
are able to initiate collective action to solve any problem concerning any particular employee or
all the employees.
6. Rapport with the Management: The trade union seeks to improve relations between the
employees and employers. The officials of the trade union hold talks with the members of the
management concerning the problems of the employees in order to find an amicable solution. It
is thus possible for the employees to have better rapport with the management.

42. Need for Trade Unions
Workers join trade unions to achieve certain objectives that they may not be able to achieve in
their personal capacity. Trade unions are necessary.
 To ensure job security and right pay for the members: One of the basic needs of any
employee is security of service. The main reason why an employee joins a union is to get him
secured. Apart from job security and employees need to get pay commensurate with their
qualifications and skills. Trade unions strive to get both job security and correct pay for all
employees.
 To ventilate the grievances of employees to the management: When the employees in general
or some in particular have any grievance, they may not be able to convey the same to the
management in their personal capacity. Such grievances may be brought to the knowledge of the
management through the trade union. The members of the management may be indifferent to the
demands of the individual employees but they cannot be so when it comes to union demands.
Nature and Scope of Trade Unions
The employer’s association or professional bodies were not included in any of the above
definitions. The employee’s unions are different from that of the employers or professional
bodies. The employee’s unions are primarily concerned with the terms and conditions of
employment of their members. The employer’s associations on the other hand are concerned
among other things with influencing the terms of purchase of services in favour of their
members. Hence, the two should not be placed in one category. The associations of professional
members also differ fundamentally from employees unions. Professional associations include
self employed as well as the employees where as trade unions consist only of the people who are
employed by others. In India the term Trade Union refers besides employee’s organizations to
employers association also. Similarly in Britain, even the associations of professional people
such as Artists Federation or Musicians Unions are also recognized as Trade Unions.
Thus trade unions are a major component of the modern industrial relation system. A trade union
of workers is an organization formed by workers to protect their interests. i.e. improve their

43. working conditions etc. All trade unions have objectives or goals to achieve, which are contained
in their constitution and each has its own strategy to reach those goals.
Trade Unions are now considered a sub-system which seeks to serve the specific sub-groups
interest and also considers itself a part of the organization, in terms of the latter’s viability and
contribution to the growth of the community of which it is a part.
Purpose of Trade Unions
Trade unions came into being for a variety of purposes. Individual workers found it more
advantageous to band together and seek to establish their terms and conditions of employments.
They realized that if they bargained as individuals, the employer would have a better leverage,
for an individual would not matter as much as a group in terms of the running of the enterprise.
A group’s contribution is much larger than an individual’s so are the effects of its withdrawal.
An individual may not be able to organize and defend his interests as well as a group can.
Therefore workers saw the advantages of organizing themselves into groups to improve their
terms and conditions of employment. Employers also found it advantageous to deal with a group
or a representative of a group rather than go through the process of dealing with each individual
over a length of time. Precisely, the major objectives of trade union are the following:
 Better wages
 Better working conditions
 Protection against exploitation
 Protection against victimization
 Provide welfare measures
 Promote industrial peace
 Take up Collective Bargaining
 Look after the interest of trade
A. Pre-1918 Phase:
The setting up of textiles and jute mills and laying of the railways since 1850 payed the way for
that emergence of industrial activity and, in turn, labour movement in India. Some researchers

44. have traced the origin of labour movement in India dated back to 1860. However, most of the
writers on the subject trace the history of labour movement in India since 1875.
The first labour agitation, under the guidance and leadership of Mr. S. S. Bengalee, a social
reformist and philanthropist, started in Bombay in 1875 to protect against the appalling
conditions of workers in factories, especially those of women and children and appealed to the
authorities to introduce legislation for the amelioration of their working conditions.
As a result, the first Factory Commission was appointed in Bombay in the year 1875 and the first
Factories Act was passed in 1881. Mr. N. M. Lokhande may be said to be the founder of
organised labour movement in India who founded the first trade union in the country, namely,
the Bombay Mill Hands Association (1890).
This was followed by a series of associations such as the Amalgamated Society of Railway
Servants in India (1897), The Printers’ Union of Calcutta (1905), The Madras and Calcutta
Postal Union (1907), and the Kamgar Hitwardhak Sabha (1910). All these unions aimed at
promoting welfare facilities for workers and spreading literacy among them.
The broad features of the labour movement during the pre-1918 phase may be subsumed
as:
(i) The movement was led mostly by the social reformers and philanthropists and not by the
workers.
(ii) There was, in fact, no trade union in existence in the true sense.
(iii) The labour movement was for the workers rather than by the workers.
(iv) The movement was confined to the revolt against the conditions of child labour and women
workers working in various industries under appalling conditions.
B. 1918-1924 Phase:
The phase 1918-1924 is considered as the era of formation of modem trade unionism in the
country. The trade union movement got momentum just after the close of the World War I. The
postwar economic and political conditions contributed to the new awakening of class

45. consciousness among the workers. This led to the formation of trade unions in the truly modem
sense of the term.
As a result, Ahmedabad Textile Labour Association (1917), led by Shrimati Ansuyaben
Sarabhai; the Madras Labour Union (1918), led by B. P. Wadia; Indian Seamen’s Union,
Calcutta Clerk’s Union; and All India Postal and RMS Association were formed.
The various factors that influenced the growth of trade union movement in India during
this phase may be briefly catalogued as follows:
1. The wretched conditions of workers on account of spiralling prices of essential commodities
during the post-World-War I led workers to form trade unions to improve their bargaining power
and, in turn, living conditions.
2. The political scenario characterized by the home-rule movement and the martial law in Punjab
made the politicians to recognize the workers movement as an asset to their cause. At the same
time, workers also needed able guidance and leadership from the politicians to settle their
grievances with the employers.
3. The Russian Revolution also swayed the labour movement in India showing a new social
order to the common man in the country.
4. The setting up of the International Labour Organisation (ILO) in 1919 also gave a big fillip to
the labour movement in India. India becoming a founder-member of the ILO required deputing
delegates to the ILO. Mr. N. M. Joshi for the first time was deputed as the representative from
India to International Labour Conferences and Sessions. It ignited workers’ anxiety to organize.
As a result, the All India Trade Union Congress (AITUC) was formed in 1920. By 1924, the
trade union movement in India proliferated to the extent of 167 trade unions with a quarter
million members.
This period in the history of trade union movement has been described as the Early Trade Union
Period.

46. C. 1925-1934 Phase:
With increasing hardships of workers, the signs of militant tendencies and revolutionary
approach in trade unionism got expression into violent strikes since 1924. The communists
gained influence in L trade union movement during this period. They split the Trade Union
Congress twice with their widening differences with the left-wing unionists.
The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri seceded from
the Congress and set up a separate organization named the National Trade Unions Federation
(NTUF).
Another split in AITUC took place in 1931 at its Calcutta session when the extreme left wing
under the leadership of Messrs S. V. Deshpande and B T Randive broke away and formed a
separate organization, namely, the All India Red Trade Union Congress Two Years later, the
National Federation of Labour was formed to facilitate unity among all the left-wing
organizations of labour. As a result, the AITUF and NFL merged to form the National Trade
Union Federation (NTUF).
Another important feature of this period was the passing of two Acts, namely, the Trade Unions
Act 1926 and the Trade Disputes Act, 1929 which also gave a fillip to the growth of trade
unionism in India. The former Act provided for voluntary registration and conferred certain
rights and privileges upon registered unions in return for obligations. The later Act provided for
the settlement of trade unions. This phase of the Indian labour movement may be described as
The Period of Left Wing Trade Unionism.
D. 1935-1938 Phase:
The Indian National Congress was in power in seven provinces in 1937. This injected unity in
trade unions. As a result, the All India Red Trade Union Congress itself with the AITUC in 1935.
After three years in 1938, the National Trade Union Congress (NTUC) also affiliated with the
AITUC. Other factors that contributed to the revival of trade unions were increasing awakening
among the workers to their rights and change in the managerial attitude towards trade unions.

47. In 1938, one of the most developments took place was the enactment of the Bombay Industrial
Disputes Act, 1938. An important provision of the Act, inter alia, to accord compulsory
recognition of unions by the employers gave a big fillip to the growth of trade unionism in India.
E. 1939-1946 Phase:
Like World War I, the World War II also brought chaos in industrial front of the country. Mass
retrenchment witnessed during the post-World War II led to the problem of unemployment .This
compelled workers to join unions to secure their jobs. This resulted in big spurt in the
membership of registered trade unions from 667 in 1939-40 to 1087 in 1945-46.
Somuchso workers in the registered trade unions witnessed a phenomenal increase from 18,612
to 38,570 during the same period. The AITUC again split in 1941 when Dr. Aftab Ali, President
of the Seamen s Association, Calcutta disaffiliated his union from the Congress and formed a
new organization known as the “Indian Federation of Labour”.
The year 1946 was also marked by two important enactments, namely, the Industrial
Employment (Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both
the Acts, through their provisions, contributed to strengthen the trade unionism in the country.
F. 1947 and Since:
Proliferation of trade unions in the pattern of proliferation of political parties has been a
distinguishing feature in the trade union history of India during the post-Independence period. In
May 1947, the Indian National Trade Union Congress (INTUC) was formed by the nationalists
and moderates and was controlled by the Congress Party. Since by then, the AITUC is controlled
by the Communists.
The Congress socialists who stayed in AITUC at the time of the formation of INTUC
subsequently formed the Hind Mazdoor Sabha (HMS) in 1948 under the banner of the Praja
Socialist Party. Subsequently, the HMS was split up with a group of socialist and formed a
separate association, namely, “Bhartiya Mazdoor Sabha” (BMS) which is now an affiliate of the
Bhartiya Janata Party (B JP). Years after, the communist party split into various fractions
forming the United Trade Union Congress (UTUC) and the Center of Indian Trade Unions
(CITU).

48. Later again, a group disassociated itself from the UTUC and formed another UTUC—Lenin
Sarani. Of late, with the emergence of regional parties since 1960, most of the regional parties
have shown its inclination to a trade union wing, thus, adding to the proliferation of trade unions
in the country. Thus, it is clear that the origin and growth of trade union movement in India is
riddled with fragmented politicization.
At present, there are 8 central trade union organisations. Of these, four major federations
with their national network are:
1. All India Trade Union Congress (AITUC)
2. Indian National Trade Union Congress (INTUC)
3. Bhartiya Mazdoor Sangh (BMS)
Why do Employees Join Trade Union?
Some unions offer attractive benefits, such as insurance. Peer pressure may also cause workers
to join unions. ... Aside from social pressure to join a union, some workers
become union members simply because the employment contract requires them to do so.
It would appear that unions serve a broad network ofemployee needs.
Human beings are rational creature. They usually act upon rationally in different spheres of their
lives. Similarly, workers join a union with a rationale approach whether joining a union will be
beneficial or not. This can simply be decided by making a cost-benefit analysis in this regard.
The excess of benefits over costs, i.e., profit or reward, justifies workers’ joining to a trade
union.
Researchers have devoted a great deal of time and effort to study “why do employees choose to
join a union.” They have failed to report a common list of reasons that apply to all organising
efforts.

49. Nonetheless, there is a general agreement among the labour experts that certain issues are likely
to lead to an organising drive by workers Major ones among them are the following:
Job Security:
Employees need to have a sense of job security and want to be sure that management will not
make unfair and arbitrary decisions about their employment. They look unions to ensure that
their jobs are duly protected against lay offs, recall, promotion, etc.
Wages and Benefits:
Employees work for livelihood, i.e., bread-and-butter. Obviously, bread-and-butter issues of em-
ployees are always important issues in their unionization. The employees may think that the
union, with its united strength, will ensure fair wages at par with those of other workers in the
community, benefits such as medical facility, pensions, paid sick leave, vacations and holidays
for them.
Working Conditions:
Employees like to work in a healthy and safe environment. Although there are statutory
provisions for providing employees a safe work environment employees still feel more secured
knowing that trade union is directly involved in safety and health issues relating to them.
Fair and Just Supervision:
The days are long gone when managers / leaders could rule employees with an iron fist. Thanks
to the trade unions that brought about a change or shift in leadership styles from autocractic to
democratic, or say, people oriented to ensure that the managers treat their employees fairly,
justly, and respectfully. Employees can only be disciplined for “just cause.” In case of
mistreatment from the employer, the employee may file a written grievance against the
employer.
The complaint will be heard and resolved through a formal grievance procedure involving
collective discussion by both union and management representatives.