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TRADE
UNION
What is a Trade Union?
• An organization of workers or
employees formed mainly to
_ Negotiate with the employers on various
employment related issues
– Improve the terms and conditions at their
workplace
– Enhance their status in society

• In most countries, there are laws
governing the formation,
membership and administration of
trade unions.
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
• Trade unions are formed to protect
and promote the interests of their
members. Their primary function is
to protect the interests of workers
against discrimination and unfair
labor practices.
ORIGIN & GROWTH OF TRADE UNION MOVEMENT
•
•
•
•
•
•
•
•
•

Industrialization brought about new economic and
social order in societies. TU emerged as a result of
industrialization in new social order
First workers’ union in India under the leadership of
Mr Lokhande was developed in 1890
Beginning of labor movement in the modern sense
started after the outbreak of World War I
Economic. Political and social conditions influenced
the growth of trade union movement in India.
Establishment of ILO helped the formation of TUs in
the country
In 1920 AITUC( All India Trade Union Congress) was
formed- the 1st All India trade union
World War II brought splits in AITUC. Efforts of Indian
National Congress resulted in the formation of INTUC(
Indian National Trade Union Congress)
Socialists separated from AITUC formed HMS( Hind
Mazdoor Sabha) in 1948
Some other unions were also formed. They were BMS
( Bhartiya Majdoor Sangh) in1955, HMP( Hind Majdoor
Panchayat) in 1965, CITU( Centre of Indian Trade
Union ) in 1970
Objectives of a Trade Union
1. Collective bargaining
–

Represent members to negotiate with
employers, for better wages and conditions
of employment

1. Safeguard jobs
–

Protect jobs of members

1. Cooperate with employers
–

For the benefits of members, resolve
disputes in a mutually acceptable manner
Objectives of a Trade Union
4. Political activities
- Support pro-union political
parties

5. Social activities
- Support members with
recreation facilities and
benefits for unemployment,
illness, retirement, death
Functions of Trade unions
• (i) Militant functions
(a) To achieve higher wages and better
working conditions
(b) To raise the status of workers as a part of
industry
(c) To protect labors against victimization and
injustice
(ii) Fraternal functions
• To take up welfare measures for
improving the morale of workers
• To generate self confidence among
workers
• To encourage sincerity and
discipline among workers
• To provide opportunities for
promotion and growth
• To protect women workers against
discrimination
Types of Unions
1. Craft union
– Same craft or occupation

1. General union
– For unskilled workers

1. Staff union
– Non-manual workers
4. Industry union
– Same industry, regardless of
skills, occupation or job

4. House union (company or
enterprise union)
– All members are from the
same company regardless
of occupation or job
Reasons For Joining Trade Unions
1. Greater Bargaining Power
2. Minimize Discrimination
3. Sense of Security
4. Sense of Participation
5. Sense of Belongingness
6. Platform for self expression
7. Betterment of relationships
Central Trade Union Organizations in India:
1.
2.
3.
4.
5.
6.

All India Trade Union Congress (AITUC)
Bharatiya Mazdoor Sangh (BMS)
Centre of Indian Trade Unions (CITU)
Hind Mazdoor Kisan Panchayat (HMKP)
Hind Mazdoor Sabha (HMS)
Indian Federation of Free Trade Unions
(IFFTU)
7. Indian National Trade Union Congress
(INTUC)
8. National Front of Indian Trade Unions
(NFITU)
9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre
(TUCC)
11. United Trade Union Congress (UTUC)
and
12. United Trade Union Congress - Lenin
Sarani (UTUC - LS)
MAJOR PROBLEMS FACED BY TRADE UNIONS
IN INDIA
•
•
•
•
•
•
•

Outside or political leadership
Multiplicity of trade unions
Small size of unions
Low membership
Uneven growth
Poor financial position
Low level of knowledge of labor
legislation
• Fear of victimization
TRADE UNION ACT (1926)
•

It legalizes the formation of trade unions by allowing
employees the right to form and organize unions and
also strengthen bargaining power of workers
• Act aims to provide law for the registration of trade
unions and get it registered under the act
• Permits any seven persons to form a union
OBJECTIVES
• Lay down conditions governing the registration of
trade unions
• Defines obligations of trade unions
• Prescribe rights and liabilities of a registered trade
union
STATUS OF A REGISTERED UNION
• It becomes a body corporate
• It gets a common seal
• It can buy and hold movable and immovable property
• It can enter into contracts with others
• It can sue and be sued in its name
TRADE UNION ACT (1926)
REGISTRATION:

A trade union formed with at least 7 members may
apply for registration with following documents
• A copy of the rules of trade union
• Name, occupation and addresses of members
• Name of trade union and address of its Office
Bearers of the trade unions
• In case already in operation- submit statement
of accounts/assets and liability statement
OBLIGATIONS:

It should have a name, clearly laid down
objective, membership list readily
available, purpose for which funds shall
be utilized, members to be the actually
working persons , Honorary/temporary
office bearers, conditions for
benefits/fines, conditions under which
rules shall be amended, manner in which
office bearers shall be appointed, safe
custody of funds and manner in which
trade union shall be dissolved
RIGHTS AND LIABILITIES
• Section 15 of the Act provides for

certain obligations and liabilities of
registered unions
• It also stipulates the purpose for which
funds can be utilized

THE AMALGAMATION OF TRADE
UNIONS:
• Any two or more registered unions may
get amalgamated together as one trade
union

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Trade union

  • 2. What is a Trade Union? • An organization of workers or employees formed mainly to _ Negotiate with the employers on various employment related issues – Improve the terms and conditions at their workplace – Enhance their status in society • In most countries, there are laws governing the formation, membership and administration of trade unions.
  • 3. 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 • Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices.
  • 4. ORIGIN & GROWTH OF TRADE UNION MOVEMENT • • • • • • • • • Industrialization brought about new economic and social order in societies. TU emerged as a result of industrialization in new social order First workers’ union in India under the leadership of Mr Lokhande was developed in 1890 Beginning of labor movement in the modern sense started after the outbreak of World War I Economic. Political and social conditions influenced the growth of trade union movement in India. Establishment of ILO helped the formation of TUs in the country In 1920 AITUC( All India Trade Union Congress) was formed- the 1st All India trade union World War II brought splits in AITUC. Efforts of Indian National Congress resulted in the formation of INTUC( Indian National Trade Union Congress) Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in 1948 Some other unions were also formed. They were BMS ( Bhartiya Majdoor Sangh) in1955, HMP( Hind Majdoor Panchayat) in 1965, CITU( Centre of Indian Trade Union ) in 1970
  • 5. Objectives of a Trade Union 1. Collective bargaining – Represent members to negotiate with employers, for better wages and conditions of employment 1. Safeguard jobs – Protect jobs of members 1. Cooperate with employers – For the benefits of members, resolve disputes in a mutually acceptable manner
  • 6. Objectives of a Trade Union 4. Political activities - Support pro-union political parties 5. Social activities - Support members with recreation facilities and benefits for unemployment, illness, retirement, death
  • 7. Functions of Trade unions • (i) Militant functions (a) To achieve higher wages and better working conditions (b) To raise the status of workers as a part of industry (c) To protect labors against victimization and injustice
  • 8. (ii) Fraternal functions • To take up welfare measures for improving the morale of workers • To generate self confidence among workers • To encourage sincerity and discipline among workers • To provide opportunities for promotion and growth • To protect women workers against discrimination
  • 9. Types of Unions 1. Craft union – Same craft or occupation 1. General union – For unskilled workers 1. Staff union – Non-manual workers
  • 10. 4. Industry union – Same industry, regardless of skills, occupation or job 4. House union (company or enterprise union) – All members are from the same company regardless of occupation or job
  • 11. Reasons For Joining Trade Unions 1. Greater Bargaining Power 2. Minimize Discrimination 3. Sense of Security 4. Sense of Participation 5. Sense of Belongingness 6. Platform for self expression 7. Betterment of relationships
  • 12. Central Trade Union Organizations in India: 1. 2. 3. 4. 5. 6. All India Trade Union Congress (AITUC) Bharatiya Mazdoor Sangh (BMS) Centre of Indian Trade Unions (CITU) Hind Mazdoor Kisan Panchayat (HMKP) Hind Mazdoor Sabha (HMS) Indian Federation of Free Trade Unions (IFFTU) 7. Indian National Trade Union Congress (INTUC) 8. National Front of Indian Trade Unions (NFITU) 9. National Labor Organization (NLO) 10. Trade Unions Co-ordination Centre (TUCC) 11. United Trade Union Congress (UTUC) and 12. United Trade Union Congress - Lenin Sarani (UTUC - LS)
  • 13. MAJOR PROBLEMS FACED BY TRADE UNIONS IN INDIA • • • • • • • Outside or political leadership Multiplicity of trade unions Small size of unions Low membership Uneven growth Poor financial position Low level of knowledge of labor legislation • Fear of victimization
  • 14. TRADE UNION ACT (1926) • It legalizes the formation of trade unions by allowing employees the right to form and organize unions and also strengthen bargaining power of workers • Act aims to provide law for the registration of trade unions and get it registered under the act • Permits any seven persons to form a union OBJECTIVES • Lay down conditions governing the registration of trade unions • Defines obligations of trade unions • Prescribe rights and liabilities of a registered trade union STATUS OF A REGISTERED UNION • It becomes a body corporate • It gets a common seal • It can buy and hold movable and immovable property • It can enter into contracts with others • It can sue and be sued in its name
  • 15. TRADE UNION ACT (1926) REGISTRATION: A trade union formed with at least 7 members may apply for registration with following documents • A copy of the rules of trade union • Name, occupation and addresses of members • Name of trade union and address of its Office Bearers of the trade unions • In case already in operation- submit statement of accounts/assets and liability statement OBLIGATIONS: It should have a name, clearly laid down objective, membership list readily available, purpose for which funds shall be utilized, members to be the actually working persons , Honorary/temporary office bearers, conditions for benefits/fines, conditions under which rules shall be amended, manner in which office bearers shall be appointed, safe custody of funds and manner in which trade union shall be dissolved
  • 16. RIGHTS AND LIABILITIES • Section 15 of the Act provides for certain obligations and liabilities of registered unions • It also stipulates the purpose for which funds can be utilized THE AMALGAMATION OF TRADE UNIONS: • Any two or more registered unions may get amalgamated together as one trade union