efeffective trade unions

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Amity Business School
MICROECONOMICTHEORY AND APPLICATIONS – IV
Credit Units: 03
Module I: Market for factor Inputs

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Objectives of the Lecture
1) To understand the extended concepts of
Factor Market Studied in 3rd
Sem.
2) To understand role of trade unions.
3) To establish an argument in favour or
against trade unions.
4) To know role of trade union in rising wages
of labours in different markets.
5) Quiz – to assess the understanding of the
concept.
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Issue to be discussed
• Responsible trade unions would be
beneficial to the workers, business and the
society, irresponsible trade unions could
be harmful to all.
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Definition
• “Trade union means any combination, whether
temporary or permanent, formed primarily for the
purpose of regulating the relations between
workmen and employers, or between workmen
and workmen, or between employers and
employers, or for imposing restrictive conditions
on the conduct of any trade or business, and
includes any federation of two or more trade
unions.”
- Francis Cherunilam
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Functions of Trade Unions
Trade unions are intended to protect the
rights and enhance the welfare of the
members in particular and of the working
class in general. According to the National
Commission on Labour (NCL), the
important functions of the trade unions
are:
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1. To secure for workers fair wages.
2.To safeguard security of tenure and
improve conditions of service.
3.To improve opportunities for promotion
and training.
4.To improve working and living conditions.
5.To provide for educational, cultural and
recreational facilities.
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6. To co-operate in and facilitate technological
advance by broadening the understanding of
workers of its underlying issues.
7. To promote identity of interests of the workers
with their industry.
8. To offer responsive co-operation in improving
levels of production and productivity, discipline
and high standard of quality.
9. To promote individual and collective welfare.
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Social Responsibilities of Trade Unions
1. Promotion of national integration;
2.Generally influencing the socio-economic
policies of the community through active
participation in their formulation at various
levels; and
3.Instilling in their members a sense of
responsibility towards industry and the
community.
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Trade Union Movement in India
• The following factors helped the growth of
trade union movement of India:
1. World War I
2. Influence of Political Leaders
3. The ILO
4. The Russian Revolution
5. The Trade Unions Act
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Limitations and Problems of
Trade Unionism in India
The trade union movement in India suffers
from a number of limitations and
problems. Important among them are the
following:
1.Limited Representation
2. Small-size and Increasing Number
3. Multiplicity of Unions
4. Inter-Union and Intra-Union Rivalries
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5.Political Infiltration
6.Outside Leadership
7. Low Funds
8. Low Income
9. Illiteracy
10. Lack of Integrity
11. Unhealthy Attitude of Employers
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Trade unions in India are regulated by the Indian
Trade Unions Act, 1926, amended from time to
time.
• Registration of Unions
Any seven or more members of a trade
union may, by subscribing their names to
the rules of the trade union and otherwise
complying with the provisions of this Act
with respect to registration, apply for the
registration of the trade union under this
Act.
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