1. What is a Trade Union?
• Definition: 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.

2. 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

3. PRINCIPLE OF TRADE UNION
1. UNITY: Unity is strength
2. EQUALITY: Workers must not be
discriminated wrt caste, creed, sex etc.
Each worker should get equal pay for equal
work
3. SECURITY: Security of their employment
and their families must be safeguarded

4. 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

5. 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

6. Types of Unions
1. Craft union
– Same craft or occupation
1. General union
– For unskilled workers
1. Staff union
– Non-manual workers

7. Types of Unions
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

8. Why Workers Join Unions
1. Higher wages and better working
conditions
– Collective bargaining with employer
2. Job security
– More secured with collective agreement
3. Social need
– Meet co-workers from other departments or
companies

9. Why Workers Join Unions
4. Upgrading of skills
– Attend training courses organized by
union
5. Peer pressure
– Colleagues are members
6. Self-fulfillment
– Serve other members

10. OBJECTIVES/IMPORTANCE OF TRADE UNIONS
• Wages & salaries
Policy matter but differences in implementation, so comes the role of trade union
• Working conditions
safeguarding workers health: Lighting & ventilation, sanitation, rest rooms, safety
equipments ( hazards free atmosphere , drinking water, refreshments, working hours,
leave & rest, holidays with pay, job satisfaction, social security benefits and other welfare
measures
• Discipline
Protect workers from victimization by management- transfers, suspensions, dismissals etc
• Personal policies
Fighting against improper implementation of personnel policies wrt
recruitment, selection, promotion, transfer, training etc ..
• Welfare
Solving difficulties of workers through collective bargaining wrt sanitation, hospitals,
quarters, schools, colleges and other basic amenities
• Employer- employee relations
Bureaucratic attitude and unilateral thinking of mgmt may lead to conflicts
Trade unions go for constant negotiations for industrial democracy and peace .
• Negotiating machinery
Based on ‘give and take principle’, negotiations continue till parties reach an
agreement. Protect interests of workers through collective bargainINg
• Safeguarding organizational health
Methods evolved for grievance redressal, techniques adopted to reduce
absenteeism and labor turnover. upgrading skills- attend training courses organized by
unions

11. ACTIVITIES OF TRADE UNION
ECONOMIC: Improved economic status, shorter working day, improvement in
living and working conditions, better health & safety standards, upgrading
welfare facilities, reducing inequalities- both internally & externally
POLITICAL: Seeking / obtaining political power through political affiliations,
lobbying activities to influence the cause of labor and legislations,
participating & representing workers on bipartite forums,
developing revolutionary ideologies among workers, protesting against Govt.
decisions
SOCIAL: Initiating & developing workers’ education system, organizing welfare
& recreational facilities, providing monitory and other help during period of
strike and economic distress, running cooperative welfare schemes and
societies, hosing needs/ community development, organizing cultural
functions & social welfare programmes
NATIONAL / INTERNATIONAL LEVEL: Representing workers at the national
level on advisory committees, associating with national federations for unity
& solidarity, Raising funds in case of national / International calamities or
tragedies

12. FEATURES OF AN EFFECTIVE TRADE UNION
• Internally democratic
• Have a strong leadership
• Exhibit a responsibility towards their worker
members
• Committed to promote industrial peace and
harmony
• Inclined towards collective bargaining that is
collaborative and not competitrive
• Possess financial security
• Adaptable to change

13. CHANGING ROLE / PUBLIC PERCEPTION
TRADE UNIONS
• Change in the attitude of unions towards management, Industry,
Govt. and economy
• Unions becoming increasingly matured, responsive and realistic
Gone are the days of frequent strikes, bandhs, gheraoes and
violence
• Unions are reconciled to economic reforms. The accent is on
opposing the adverse impact of reforms and not the reforms
• Discussion among trade union circles is now on issues like
productivity, TQM, Technology, competition, MNCs, exports etc..
• Unions aware of the Right Sizing and feel the need for suplus labor
fat to be shed
• Days when unions were affiliated with political parties are gone by.
Today thrust is on de- politicization of unions
• Experience of politically free unions is pleasant, reinforcing the
belief that farther the unions are from politics, more advantageous it
is for them

14. • Workers association in our country is highly fragmented and the
consequence is multiplicity of unions, which weakens the bargaining
strength of employees.
• One of the defects of trade union movement in India has been the
phenomenon of outside leadership. The fault of outside leadership lies with
trade Union Act, 1926 itself. The act permitted outside participation to the
extent of 50% of the strength of office bearers in a union.
• Trade Unions are at cross roads. Their membership is declining, Their
political support is waning, public sympathy is receding, their relevance itself
is at stake
• Managements on the other hand are on the offensive. They are able to
force unions to accept terms and conditions. Workers,officers and managers
are mercilessly terminated in the name of restructuring, downsizing etc
• Professionalisation of trade unions movement is another trend witnessed,
they are trying to upgrade their leadership quality. Topics lie IT, strategic
planning, diversity, networking and productivity etc now form inputs in
training programmes organized for union leaders

15. MAJOR PROBLEMS FACED BY BTRADE
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

16. 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