Trade Unions

Nature of Trade Union

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

(i)

(ii)

According to the Trade Union Act 1926 it is a combination,

whether temporary or permanent, formed
primarily for the purpose of regulating the relation between
(a) workmen and employers or
(b) between workmen and workmen, or
(c) 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.
Cont.

Nature of Trade Union

1.
2.
3.
4.

cont.

The analysis reveals that Trade Union is :A combination of workers or employers.

Such a combination could be permanent or
temporary.
Could include federation of two or more unions,
and
To regulate relations among workmen, between
workmen and employers or among employers
themselves.

Meaning of Trade Union

A trade union is an organization of workers that is
formed with a view of protecting and promoting the
interests of workers.

A trade union is an association of employees designed

primarily to maintain or improve the conditions of
employment of its members.
Lester
A trade union is a continuous association of wageearners for the purpose of maintaining or improving the
conditions of their working force Beatric Webb

A trade union is such an organization which is

created, voluntarily on the basis of collective
strength to secure the interests of workers.
V.V. Giri
A union is a continuous association of persons in
industry-whether employer or independent workersformed primarily for the purpose of the pursuit of the
interests of its members of the trade they represent.
S.D.Punekar

Principles of Trade Unionism

Trade unions function on the basis of three
fundamental principles.

Unity is strength.
Equal pay for equal work or for the
same job.
Security of service.

Why do Workers Join Trade

Unions?

To attain economic security- permanent employment

with higher salary and benefits.
To improve their bargaining power or resist the
managements irrational, illogical and discriminatory
actions.
To inform workers views, ideas aims and
dissatisfaction to the management.
To satisfy social needs.
To satisfy their needs for a sense of belonging.
To secure power.
Minimizes Discrimination
Sense of Participation
Betterment of Relationships.

Functions of Trade Union

The basic functions of trade unions is to protect and
promote the interest of the workers and conditions of
their employment.
1.
2.
3.
4.
5.

Militant Functions
Fraternal Function
Social Functions
Political Functions
Ancillary Functions

Militant/Protective Functions

(i)
(ii)
(iii)

Ensuring adequate wages, better working

conditions and better treatment from
employers
fight with the management in the form of
strikes, boycotts, gheraos etc.
Achieve higher wages and better working
conditions.
Raise the status of workers as a part of
industry and
Protect labour against victimisation and
injustice.

Fraternal Functions

Providing financial and non-financial

assistance to workers
Extension of medical facilities during
sickness and casualties,
Provision of education, recreation, and
housing facilities,
Provision of religious and social benefits.
To encourage sincerity and discipline
among workers.
To provide opportunities for promotion and
growth.

Social Functions :- carrying out social service

activities
discharging social responsibilities through various
sections of the society like educating the customers.
Political Functions :Affiliating a union to a political party
Helping the political party in enrolling members
Collecting donations
Seeking the help of political parties during the strikes
and lockouts.


(i)

(ii)

Ancillary Functions :Communication : trade union

communicates its activities, programmes,
decisions achievements etc, through
publication of news letter.
Welfare Activities : acquiring of house
sites, construction of houses,
establishment of co-operative housing
societies, organising training activities etc.

(iii) Education : educational facilities to

its members and their family
members.
(iv) Research : arrange to conduct
research programme.
collect and analyse data and
information for collective bargaining,
preparing notes for union officials.

Types and Structure of

Trade Unions
1.

2.

a)
b)

According to the purpose for which

they are established
Types of their membership
Trade unions based on their
purposes :Reformist
Revolutionary

(i)

Reformist Unions : aims to preserve the

capitalist economy and maintenance of
competitive production based industrial
relations.
like to continue the existing social,
economic and political structure.
Seek to improve the wages, working
conditions, quality of work life by
increasing the productivity level and by
bargaining for a share in the increased
productivity.


1.

2.

Reformist further divided into

Business Union : They believe in
congenial employee-employer relation,
protect the workers interest by
participating in collective bargaining,
prefer voluntary arbitration and conciliation
Uplift Union : they concentrate on
education, health insurance and benefits,
aspire to elevate the moral, intellectual
and social life of workers, these unions are
interest-conscious of the workers.

Revolutionary Unions :They aim at replacing the present

system with the new and different
situations that are preferable.
aims at destroying the capitalistic
system
abolish private property and installing
socialist or communistic systems.


a)

b)

Revolutionary divided into 2 types

Political Unions : gain power
through political actions. These
resort to political action to protect the
workers interest.
Anarchist Unions : try to destroy
the existing economic system by
revolutionary means.

Trade Union Structure

Craft Unions if the workers of the same craft or

category of the job form into an union, that union is
called Craft union. Such organizations include those
workers having similar skills, training and
specialization.
General Unions if the workers of any industry, any
region and of any job or occupation form into one
union in order to protect the overall interests of the
workers
The Jamshedpur labour Union, the National Union of
Municipal and General Workers

Industrial Unions workers of different

categories form into a union that is called
industrial union. It links all craftsmen and
skilled workers in any one industry. It is
organized upon and industry-wise rather
than a craft-wise basis.
Textile Labour Association

Federations : Industrial unions, either of

same industry or of the different industry
may form into an association in order to
improve Trade Union Unity. Such Unions of
Unions are called federations. During critical
situations the unions in different industries
may resort to concerted action without
losing their individuality. In such situation
the federations form into an Association and
such and association is called
Confederation.

Trade Union Act, 1926

Provide for registration of T.U.
Confers certain protection and privileges.
1- Formation and Registration:- 7 members
can form a trade union and may apply to the
registrar of Trade Unions for registration.
2- Application accompanied by Schedule:I, II and bye law and a resolution authorizing
7 members of the union to make an
application for registration of the union
Registration Fees Rs. 500/

After making necessary enquiry the registrar

3- issues a registration certificate: It may be cancelled or withdrawn
on the application of a trade union in Form-D or
If the registrar is satisfied that the certificate is
obtained by fraud or the trade union has ceased to
exist or wilfully and after notice from the registrar
contravened any provisions of the Act.
4- Appeal person aggrieved:- by any order of the
registrar may appeal within 2 months to the Civil Court
not inferior to the court of Additional or Assistant
Principal Civil Court

5- Change of Name :- any registered trade

union may with the consent of not less than
2/3 of its total members may make
application in Form H, for the change of its
name.
6- Annual Returns:- Every union shall send
annual returns to the registrar in triplicate on
or before the Ist day of June of the year
succeeding the calendar year in Form-L in
case of individual trade unions and in FormLL in case of federation of trade unions.

Obligations of Registered
Trade Unions

The general funds of a registered trade union should

be spent only for the objects specified.
The account books and membership register of the
union should be kept open for inspection by any of its
office-bearers.
A copy of every alteration made in the rules of the
union should be sent to the Registrar with in 15 days
of making the alteration.
An annual statement of receipts and expenditure and
assets and liabilities of the union for the year ending
31st December in a prescribed form and duly audited
be sent to the Registrar within the prescribed time.