Trade unions

Trade unions

Theoretical Foundations and Legal
Framework

Sooraj R, soorajdms@gmail.com

Introduction
 Trade unions are voluntary organizations of
workers formed to promote and protect their
interests through collective action.


Theories of trade union
movement
 Karl Marx: Class Conflict and Communist
Manifesto
 Sydney and Beatrice Webb – The Socialist
Pattern of Society
 Robert Hoxie – Unions under the American
Capitalist system
 Mahatma Gandhi – The Concept of Trusteeship


Trade unions of India
 Trade union movement emerged between the
1850s and 1870s.
 All India Trade Union Congress was the first
national federation of trade unions.


Trade unions and economic
development
 Key role of trade union is to act as a
countervailing power to ensure that
considerations of enterprise and efficiency are
balanced by equity.
 It also prevent exploitation and ensure that
economic development is not an end in itself, but
a means to human development and progress.


Legal framework
 ILO Convention No 87: Freedom of Association
 Indian Constitution and the Freedom of
Association
 Trade Unions Act, 1926 – Salient Features


Definition of trade and „Trade union‟
 According to 2(h) if Trade Unions Act, 1926
defines a trade union as “any combination ,
whether temporary or permanent, former 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 or two or
more trade unions”
 Distinction between Registration and Recognition
 Privileges of Recognized, Representative Unions

Trade Union Recognition
 Closed shop/Union shop
 Membership Verification
 Check-off
 Secret Ballot
 Code of Discipline


Union Recognition Agreement
 These agreement stipulates dos and don‟ts for
both management and union
 Specify the benefits that management would
provide to the unions
 The facilities are accorded to unions subject to
the latter agreeing to fulfill certain obligations


The Problem of the Free Rider
Employees may participate in 4 types of election
1. To elect office-bearer for unions
2. To elect a representative union for collective
bargaining purpose,
3. To elect workers representatives for works
committees, departmental councils, etc
4. To take decisions on whether to go on strike, etc


Non union firms
 The law in India does not make it mandatory for
management
 To have unions
 To recognize them (except in some states), or
 To engage in collective bargaining


Trade Union Structure


Introduction
 Evolution of different models of national trade
union movements - how they are linked to the
evolution of capital.
 Emergence of the international trade union
movement - during the middle of the 12th century
 special characteristics of unionism - among
managers and women - issues relation to
multiplicity of unions
 Brief analysis of the future trends


Models of National Trade Union
Movements
 Occupational Unions
 Industrial Unions
 General Unions
 Territorial Unions
 Enterprise Unions
 State – sponsored Unions


Challenges Facing trade Unions
 Decline in membership
 Decline in state support or state neutrality
 Deregulation, decentralization and consequent
reduction in the job, income, and social
security, creating anxiety among workers about the
effectiveness and utility of unions(s)
 Repudiation of their rights by employers, consumers
and other actors, institutions in civil society.
 Changing aspirations and needs of new generation
workforce
 Reduced capacity to mobilize workers for conflict
 Imperative need to cooperate with managements

International trade union federations
 International Confederation of Free Trade Unions
(ICFTU)
 World Federation of Trade Unions (WFTU)
 International Federation of Christian Unions (IFCU)
 Regional Trade Union Organizations at International
Level
 International Trade Union Organizations in Specific
Industries Occupations
 Global Union Federations (GUFs) – Objective of GUF
 Promotion of worldwide solidarity
 Securing and enforcing human and trade union rights
 Establishing a just economic and social order
 Trade Union Internationals (TUIs)

Trade Union Structure at the National
Level
 Structuring of a trade union is composed of
 Several layers of geographical and sectoral levels
 Staff in various departments depending on the type
of activities
 Rules and regulation concerning decision-making to
carry on activities, and mechanisms for rewarded,
review and refinement
 Committees with specific tasks.


A union formal structure influenced
by the following factors
 Size
 Spread
 Role and function/activities
 Responsibility and accountability


A trade union structure has 3
dimensions
 Formal organization
 The people
 The Human resource system


Managerial Trade Unions
 Managerial response to Managers Unions
 Relations between Workers and Managers
Unions


National Trade Union Centers
 Regional Political Parties and their Trade Union
Wings
 Industrial/Sectoral Federations
 Enterprise-level Union


Women in Trade Unions
 Unionization Among Women Workers
 Organizing Women Workers in the Unorganized
Sector
 Why Women Do Not Join Unions
 Women‟s Representation and Gender issued in
Collective Bargaining


Role on International Trade Union
Movement
ICFTU Charter of Rights of Working Women as
follows
 Equal rights and opportunities at work
 Maternity protection for all working women
 Sharing of work in the family
 A place for women at all levels of trade union
hierarchy
 Actions in all spheres to respond to women‟s needs


Monitoring Gender Equality in Trade
Unions
Trade unions should discuss the following issues in
their meetings at the local, regional, national and
international levels:
 Sexual division of labor
 Percentage of women in the total workforce
 Percentage of leadership positions helf by women
in the union
 Membership in tripartite and bipartite for a at the
national, regional and local levels
 Training programmes conducted at the
international, national, regional and local levels
 Paid positions in trade union secretariats at the
international, national, regional and local levels

Trade Union Unity and Trade Union
Mergers
 It gives an opportunity to represent their collective
interests.
 It is based on the belief: “United we stand, divided
we fall”


Future Directions
 Cyber Unionism
 Towards E-Unions


Management of Trade Unions of
India


Introduction
 Theoretical and legal foundations of trade unions
as well as their structure at various levels
 Constitution and functions of trade unions and the
internal and external challenges they face.
 Issues for leadership and organization, including
internal democracy in there functioning of the
union.


Trade Union Constitution
 Every registered trade union in India is supposed
to have a constitution of its own endorsed by its
members.


Essential elements of a union‟s
constitution
 Preamble
 Name
 Declaration of principles
 Membership
 Rights and obligation of members
 General assembly conference: election at al levels
 Duties and responsibilities of officials
 Executive committee
 Standing committee
 Meeting rules
 Finance
 Collection of dues
 Auditing
 Allowances


Trade Union Functions
 Objectives
 Economic and Job Regulation
 Decrease in labor intensity through avoidance of
wasteful practices
 Increase in workload through multiskilling
 Increase in wages of skilled workers but decrease
in unit wage/labor costs
 Growing informalization of jobs
 Increase in dualism in the labor market
 Shift in control over jobs to management
 Non-Bargaining Roles and Social Activities


Internal Challenges
 Low Membership Density
 Declining Union Membership
 Representativity
 Poor Finances


Major Sources and Uses of
Funds
Sources
 Monthly membership subscriptions
 Donations from members at the time of wage
revision, etc
 Interest on savings
 Contributions for political funds
Uses
 Activities/services to members
 Wages and salaries of staff
 Travel
 Printing, postage, stationery, etc
 Legal expenditure on court fee, lawyers fee, etc
 Meetings, conference, campaigns, etc.

Financial Strength of Trade
Unions
Critical indicators of the factors that determine the
financial strength of a trade union:
 Composition of revenue
 Relative size of expenses and/or revenues
 Amount of surplus or deficit over a period or time
 Number of activities carried out by a union‟s own
funds


External challenges
 Global competition
 Rapid changes in Technology
 Shifting attitudes of Government
 Managerial Strategies and HRM Policies
 Assertion of their Rights by the Community and
Consumers


Leadership and organizational issues
 Leadership
 Changing workforce Demographics
 Internal democracy
 Declining Union Power and Influence


Strategies for strengthening Unions
and Unionism
 Organize, organize, and organize. Membership
drive is most critical
 Expand membership base
 Unity within the trade union movement


NINE PRINCIPLES OF TRADE UNION
UNITY
1. Unreserved acceptance of, and respect for democratic functioning of
trade unions.
2. Regular and democratic elections of the executive bodies and office
bearers
3. Proper representation of all trades in the leading organs of the
common organization.
4. Right of every worker and trade unionist to belong to any political
party of his own choice.
5. Freedom from interference in the internal affairs of the organization by
the Government, employers, and political parties.
6. All vital decisions affecting the workers interests including important
collective agreements with the employers to be endorsed by the
general body of the workers.
7. All decisions on political issues to be conditional on 75% majority.
8. In the normal course, strike action to be taken only as a last resort
and after properly ascertaining with the wishes of the workers.
9. Rival unions in the same factory, industry, or undertaking be wound
up either by

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