Union Management
Relations
Deepali Sadavarte
Shweta Kumar
Monisha Mahajan
Maitreyee Chandane
Definition of Trade Union
Indian Trade Unions Act 1926, defined trade union as
“any combination of persons,whether temporary or
permanent,formed primarily for the purpose of
regulating the relations between workers and
employers,or between workers and workers,and for
imposing restrictive conditions on the conduct of any
trade or business,and includes the federation of two or
more trade unions.”
Characteristics of Trade
Union
It is an association either of employees or employers or of
independent workers.
It is a relatively permanent combination of workers.
It is an association of workers engaged in securing
economic benefits for its members.
The character of trade union has been constantly changing.
Principles of Trade
Unionism
Unity is strength
Equal pay for equal
work
Security of service
Union Structure
The structure can be classified into four types
Craft Union: workers of the same craft or category of the job
form into an union
General Union: workers of any industry,any region and of
any job form into one union
Industrial Union: workers of different categories form into a
union
Federation &Confederation: industrial unions,either of
same industry or of the different industry may form into an
association in order to improve their strength.
Why do Workers Join A
Trade Union?
To get economic security
To improve their bargaining
power and balance it with that
of management
To communicate their views
and frustrations to the
management
To secure protection from economic
hazards beyond their control,eg-
illness,accident…
To satisfy their social needs
To satisfy their psychological needs
To satisfy their needs for a sense of
belonging.
Functions of a Trade Union
Functions
militant fraternal political Ancillary
communication Welfare activities education research
Objectives
Wages and salaries
Working conditions
Discipline -
•To protect the worker’s from the management’s unilateral acts and
disciplinary policies;
•Penal Transfers
•Suspensions
•Dismals etc
Personnel policies
Welfare
Employee-employer relations
• Harmonious relations
• Bureaucratic attitude
• Unilateral thinking
• Negotiations
Negotiating machine
‘GIVE AND TAKE RELATION’
Safeguarding organizational health and
the interest of the industry.
How are the Objectives
Achieved
Collective bargaining
Union security UNION SECURITY
CLOSED SHOP UNION SHOP AGENCY SHOP
Grievance processing and handling
procedures
Negotiated Agreement
Arbitration
Political pressure
through legislators
Mutual insurance
• Common contributions
History
(EARLY PHASE)
N.M LOKHANDE -BOMBAY MILLHANDS ASSOCIATIONS
1890
AMALGAMATED SOCIETY OF RAILWAY SERVANTS OF
INDIA AND BURMA
1897
THE PRINTERS UNION ,CALCUTTA
1905
THE BOMBAY POSTAL UNION
1907
KAMGHAR HITVARDHAK SABHA
1910
SOCIAL SERVICE LEAGUE
1910
A Modest Beginning
World war I influenced the
growth of TU.
International Trade
Organization -1919
Madras Trade Union -1919
Spinner’s Union
Weaver’s Union
All India Trade Union
Congress
ALL INDIA TRADE
UNION CONGRESS
ALL INDIA TRADE
UNION FEDERATION (1929) ALL INDIA RED TRADE
UNION CONGRESS (1931)
INDIAN NATIONAL TRADE
UNION CONGRSS
HINDU MAZDOOR SABHA (1948)
UNITED TRADE UNION
CONGRESS (1949)
Trade Unions and their
Membership
Pocket book of Statistics 2003-2004
DETAILS 1988 1999 2000
1)No. of registered 61,199 64,040 65,286
workers’ unions
2)No submitting returns 7,291 8,061 7,224
3)Membership of union 7,229 6,394 5,417
submitting returns
4)Average member- 991 793 749
ship per union
TheTrade Unions Act,1926
and Legal Framework
It legalize the formation of a T.U by allowing the
members the right to form and organize unions.
Agree to abide by the provisions.
If the existence is for more than 1 year then,an
application of the assets and the liabilities must be
submitted.
Application contains:
• Names, occupations, Address
• Name Of The Union, Its Head Office
• Details About Office Bearers.
Status of A Registered
Union
A corporate body.
A common seal.
Buy and hold movable and
immovable property.
Enter into contracts with others.
Sue and be sued in its name.
Cancellation of
Registration
On the application by the union.
Where the application was obtained by fraud or
mistake.
Where the union has ceased to exist.
Where it has willfully and after notice from the
Registrar contravened any provisions of the Act or
allowed any rule to continue in force which is
inconsistent with any provisions of the Act.
Where the union has rescinded any rule providing for
matter, provision for which is required by Section 6.
Where the primary objects of the union are no longer
in agreement with the statutory objects.
Obligations
Allow anyone above the age of 15 years to be a
member of the union.
Collect membership fees not less than 25 paisa per
month and per member.
Specify that 50% of office bearers must be from the
persons actually employed.
Maintain membership register.
State the procedure for change of its name, merger
and its dissolution.
Spend uniform funds for the purposes specified in
the act.
Rights
Claim immunity from civil and criminal
prosecution for bonafide trade union activities.
Create a political fund .
Spend general funds on salaries of staff, other
expenses.
Can represent workers to the works committee.
Liabilities
A registered union should maintain books of
account and a list of members.
Should keep books and the list open for inspection
by members
Should have office bearers who do not suffer from
the disqualifications prescribed under the T.U Act ,
1926.
Should submit statements of receipts, expenditure,
assets , liabilities.
Should give correct information to persons
intending to become members.
Conditions for Congenial
Industrial Relations
Existence of strong,well organised and democratic
employees’ union
Existence of sound and organised empolyers’ union
Spirit of collective bargaining and willingness to
resort to voluntary arbitration
Machinery for prevention and settlement of
industrial disputes
Collective Bargaining
Preparation for negotiations
Identifying bargaining
issues
• Wage related issues
• Supplementary economic benefits
• Institutional issues
• Administrative issues
Negotiation
Settlement and contract
agreement
Administration of the
agreement
Settlement of disputes
Conciliation-a process by which
representatives of workers and employers
are brought together before a third party
with a view to persuading them to arrive at
an agreement by mutual discussion
between them.
Adjudication-a mandatory settlement of
disputes by labour courts or industrial
tribunals or national tribunals under the
industrial disputes act or under any other
corresponding state statutes.
Voluntary arbitration-a
procedure in which a neutral
third party studies the
bargaining situation,listens
to both the parties and
gathers information,and
then makes
recommendations that are
binding on the parties.
Joint Consultation
Works committee-a group wherein 100 or more no. of
people are employed, and there should be equal no. of
employer and employee representatives.
Joint Management Council-it comprises of the
representatives of the management, technicians and workers.
Weaknesses of Trade
Union
Trade Union Leadership:
(Outside leadership, mainly drawn from political parties)
Reasons:
•Inability of insiders to lead their movement
• Low education standards.
• Poor command over English language.
• Low level of knowledge about labour
legislation.
•Unsound financial position.
Evil Effects:
Outside leadership undermines the purpose of trade
union and weakens their authority.
It is responsible for the slow growth of trade union.
Internal leadership has not been developed fully.
Most of the leaders cannot understand the worker’s
problems as they do not live the life of workers.
Measures to Minimize the Evil Effects of
Outside Leadership:
Management should assure that the victimization
will be at zero level even if the trade unions are led
by INSIDERS.
Extensive training facilities, in the the areas of
leadership skills, management techniques, and
programmes should be provided to the workers.
Special leave should be sanctioned to the office
bearers.
Multiple Union:
• It poses a serious threat to industrial peace and harmony in
India.
Finance:
• Sound financial position is an essential ingredient for the
effective functioning of a trade union.
• In the process of rendering services or fulfilling their goals,
trade unions have to perform a variety of functions and
organize programmes which require enormous financial
commitments.
Union Rivalry:
• Inter union rivalry
• Intra union rivalry
Other Problems
Illiteracy
Uneven growth of trade
unions.
Heterogeneous nature
of labours.
Lack of interest.
Recommendations of the
National Commission on
Labour
The number of outsiders in a trade union should be
limited to 30% in the case of trade unions whose
membership is drawn from a particular industry…….
All ex-employees should be treated as ‘INSIDERS’.
There shouldn’t be any BAN on ‘NON-EMPLOYEES’
holding positions in the executive committee of a trade
union.
Steps should be taken to promote leadership from
among the members of the working class and enable
them to assume a responsible role in trade union
activity.
Penalties may be legally provided to curb a
management’s policy of victimization and similar unfair
labour practices which prevent the emergence of
internal leadership.
The registration of trade union should be cancelled
when –
• When its membership falls below the minimum prescribed for
registration
• It fails to submit its annual returns
• It does not rectify the defects in time when defective returns
are submitted.
The application for re-registration from trade union
should not be considered within 6 months of the
date of the cancellation of registration.
The membership fee for the trade union should
raised to 1 rupee/month.
References
Mamoria,C.B(2002) Personnel Management:
Management of Human resources, Himalaya
Publishing House, Mumbai.
Rao,P.S(2009) Essentials Of Human Resource
Management and Industrial Relations, Himalaya
Publishing House, Mumbai.