TRADE UNIONS

ECONOMIC DEVELOPMENT,WAGES AND TRADE UNIONSEconomic DevelopmentEconomic development is a process whereby an economy's real national income as well as per capita income increases over a long period of time.

Economic development is a process consisting of a long chain of inter-related changes in fundamental factors of supply and in the structure of demand, leading to a rise in the net national product of a country in the long run.Definitions1. Prof. Meier and BaldwinAccording to Prof. Meier and Baldwin;

"Economic development is a process whereby an economy's real national income increases over a long period of time".

This definition explains three ingredients of economic development. Process.Real national income.Long period.a) ProcessThe term 'process' here refers to the operation of certain forces which bring about changes in certain variables. Various types of economic changes take place during the development process.

b) Real National IncomeOther things being equal, there is a positive correlation between the real national income and economic development. Higher real national income of a country is considered an index of higher economic development and vice versa. In brief, we can say that the real national income is the measuring rod of economic development.

c) Long PeriodEconomic development refers to an upward trend in real national output over a long period. Thus, economic development is a process consisting of a long chain of interconnected changes in fundamental factor supplies and in the structure of demand for products leading to a rise in real national income over a long period. 2. United Nations Expert CommitteeAccording to this Committee, "Development concerns not only man's material needs but also the improvement of the social condition of his life. Development is, therefore, not only economic growth, but growth plus change social, cultural and institutional as well as economic". This definition encompasses economic and non-economic aspects of development.

This definition stresses on the expansion of development variables, and also improving the quality of those variables. 3. Comprehensive Definition"Economic development is a continuous process which has to be extended over a long period of time so as to break the vicious circle of poverty and lead a country to a stage of self-sustaining growth or to self-generating economy".

Thus, we can conclude that economic development is a process rather than the result of it which results in a rise in real national income, and the net national product must have a sustained increase i.e., it must be over a long period of time.

Characteristics of a Developed Economy1. Significance of Industrial Sector.2. High Rate of Capital Formation.3. Use of High Production Techniques and Skills.4. Low Growth of Population.

1. Significance of Industrial SectorMost of the developed countries in the world have given much importance of the development of industrial sector. They have large capacities to utilise all resources of production, to maximise national income and to provide employment for the jobless people.

2. High Rate of Capital FormationDeveloped countries are generally very rich, as they maintain a high level of savings and investment, with the result that they have huge amount of capital stocks. The rate of investment constitutes 20 to 25 percent of the total national income.

3. Use of High Production Techniques and SkillsHigh production techniques and skills have become an essential part of economic development process in the developed countries. The new techniques have been used for the exploitation of the physical human resources.

4. Low Growth of Population

The developed countries, like the U.S.A., the U.K. and other Western European countries have low growth of population because they have low level of birth rate followed by low level of death rate. Good health conditions, high degree of education and high level of consumption of the people have led to maintain low growth of population followed by low level of birth and death rates. The life expectancy in these countries is also very high. TRADE UNIONS"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.

Functions of Trade unions(i) Militant functions(a) wages and working conditions(b) status of workers(c) Protection of labor

(ii) Fraternal functions

To take up welfare measures for improving the morale of workersTo generate self confidence among workersTo encourage sincerity and discipline among workersTo provide opportunities for promotion and growthTo protect women workers against discrimination Importance Of Trade UnionsRecruitment and selection of workers.Discipline among the workforceSettlement of industrial disputes Help in social adjustments. Social responsibilities of trade unions include: promoting and maintaining national integration by reducing the number of industrial disputesachieving industrial peace

Trade Unionism In India Indian trade union movement can be divided into three phases.

* The first phase (1850 to1900) * The second phase (1900 to 1946)* The third phase (in 1947).

At present there are twelve Central Trade Union Organizations in India: 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)Indian National Trade Union Congress (INTUC)National Front of Indian Trade Unions (NFITU)National Labor Organization (NLO)Trade Unions Co-ordination Centre (TUCC) United Trade Union Congress (UTUC) and United Trade Union Congress - Lenin Sarani (UTUC - LS) Roles of trade unionPolitical role : using collective power to influence decisions on behalf of members and the wider society

Market role : trade unions negotiate wages and salaries, helping to distribute the value added in the business firm and increasing the spending power of their members in the economy

Regulatory role : Trade unions are influential in determining and establishing job standards at the workplace.

Service role : Trade unions attempt to develop services which are valuable to their members as individuals, outside of the scope of collective bargainingEnhancement role : Trade unions provide the opportunity for workers to develop pride in themselves, to reach positions of leadership and to excel Welfare role : trade unions have actively engaged in providing welfare services for members and even for the wider community

Registration of Trade Union Trade union in India are regulated by the Indian Trade Unions Act, 1926 amended from time to time

The trade union act lays down the procedure for the registration of trade unions and their rights and liabilities.

Any 7 or more members of a trade union may, by subscribing their names to the rules of the trade un ion and otherwise complying with the provisions of this act with respect to registration, apply for the registration of the trade union under this act.

Every application for the registration of a trade union shall be made to the registrar, and shall be accompanied by a copy of the rules of the trade union, and provide all other particulars required by the act.

The act lays down the rights and liabilities of registered trade unions. Some of the important rights and liabilities of registered unions are:

The general funds and political funds of a registered union shall not be spent on any other objects than those specified in the act.

No office-bearer or member of a registered trade union shall be liable to punishment under sub-section (2) of section 120-B.

No suit or other legal proceeding shall be liable maintainable in any civil court against any registered trade union or any office-bearer or member thereof in respect of any act done in contemplation.

RIGHTS AND LIABILITIES OF REGISTERED UNIONSThe accounts books of a registered trade union and the list of members thereof shall open to any inspection by an office bearer.

A person shall be disqualified for being chosen as, and for being a member of, the executive or any other office-bearer of a registered trade union if:

He has not attained the age of 18 years

He has been convicted by a court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of 5 yrs since his release.

Limitations and problems of trade unionSmall Size And Increasing Number

Political Infiltration

Low Income

Illiteracy

Unhealthy Attitude Of Employers

Two Types of WagesThe time wage system The time wage system is that system of wage payment in which the workers are paid on the basis of time spent by them in the factory.

Under this system, the workers and employees are paid wages on the basis of the time they have worked rather than the volume of output they have produced.We can calculate wages with following formula

Total Wages = Time taken X Rate

For Example

A worker produced 10000 articles in 7600 hours. His hourly wage rate is Rs. 2 /- . Calculate the wage of the worker when he is paid on the basis of time.

Solution :

Applying the formula, we get :

Wage = T.T. X R

= 7600 X 2 = Rs. 15200

The piece Wage system

The piece wage system is that system of wage payment in which the workers are paid on the basis of the units of output produced

A fixed rate for producing a unit of output is agreed upon and paidTotal Wages = Unit Produced X Rate per unit

For Example :

2500 units were produced by a worker in 1200 hrs. Rate of production is Rs. 3 /- per unit. Calculate the wage of the worker if he is paid according piece rate method.

Solution :

By applying formula, we get :

Wages = units produced X rate per unit

= 2500 X 3 = Rs. 7500