Emergence of Trade Unionism[1]

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Trade unions have become an integral and powerful factor in the contemporary system of production and distribution of goods and services. Modern industrialization has paved the way for trade unions. They are now exercising a strong influence

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Emergence of Trade Unionism[1]

Transcript of Emergence of Trade Unionism[1]

Page 1: Emergence of Trade Unionism[1]

•Trade unions have become an integral and powerful factor in the contemporary system of production and distribution of goods and services.

•Modern industrialization has paved the way for trade unions.

•They are now exercising a strong influence

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Origin(Background)Though attempts have been made to trace the

ancestry of trade unions to the medieval period and even earlier.

Institutions grow to meet the needs of a particular time and place.

Trade unions have grown in response to the peculiar needs and problems which the wage earners have had to face in the course of industrialisation under the capitalist economic system.

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Origin(Background)Trade unionism grew as one of the most

powerful socio-economic political institutions of our time

-to fill in vacuum created by industrial revolution in industrial society.

-It came as a countervailing force to reconcile social and economic aberrations created by Industrial Revolution.

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Origin(Background)Individual dispensability and collective

indispensability was the basic principle for its formation.

United we stand and divided we fall is the philosophy

The government policy of Laissez –faire(a doctrine opposing govt interference in economic affairs/to let people do as they choose) left the working class at the mercy of mighty employers

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Origin(Background)The worker lacked bargaining power as seller

of most perishable commodity (labour)He was no match for the mighty employer.

The supply of labour was more and demand was less. Employers employed them on their terms, which were exploitative.

Combination of workers was considered as criminal conspiracy /the terms of contract was regulated by workmen Breach of contract Act,1860 and general law of the land.

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Origin(Background)Discontent was brewing.

Liberal Democratic and revolutionary ideas(set in motion by the American war of Independence,French Revolution,Russian-Revolution /thinkers like Rousseau and Marx etc)

The discontent also gave birth to an institution known as “trade union”.

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FORMATIVE STAGESTrade Union had to pass through a very

difficult and hostile period in the initial years. -The employers wanted to crush them with iron

hands.

Then came the period of agitation and occasional acceptance.

When the union gained strength they started confronting the employer. This is the period of struggle which continued for long.

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FORMATIVE STAGESEmployers were forced to accommodate,

tolerate and hesitatingly accept them.

Then came the period of understanding in the industry in collective bargaining.

This was followed by a fraternal stage where union became matured and employers started consulting them.

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FORMATIVE STAGESThe desired state is the “Fusion Stage”in

which joint efforts were required to be made for union-management cooperation and patnership.

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DEFINITIONAccording to Webb ,a trade union is a continuous

associatiob of wage –earners for the purpose of maintaining and improving the conditions of their working lives.

Under trade union Act of 1926 ,the term is defined as any combination,whether temporary or permanent,formed primarily for the purpose of regulating the relations between workers and employers or for imposing restrictive conditions on the condition of any trade or business and includes any federation of two or more unions.

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DEFINITIONA more recent and non-legislative definition

of a union is:

“An organisation of workers acting collectively who seek to protect and promote their mutual interests through collective bargaining”

-De Cenzo & Robbins(1993)

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Forms of trade unionsThere are three forms of trade unions:-

1.Classical-A trade unions main objective is to protect the interest of its members. -Trade Unions are the expressions of the needs aspirations and wishes of the working class.

2. Neo –classical- It goes beyond classical objectives and tries to improve other wider issues like tax – reliefs, raising saving rates etc

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Forms of trade unions 3. Revolutionary change in the system-

Establishing the rule of working class even through violence, use of force, etc

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Functions of Trade Unions (a) militant or protective or intra-mutual functions: -These functions include protecting the workers

interests,i,e hike in wages,providing more benefits,job security etc

-this is achieved through collective bargaining and direct actions such as strikes, gheraos etc

(b)Fraternal or extramural functions: -This function includes providing financial/non

financial assistance during strikes/lockouts/medical facilities/provision of education/recreation/housing facilities/social and religious benefits.

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Functions of Trade Unions (c)Political functions:These functions include

affiliating the union to a political party -helping the political party in enrolling

members,collective donations, -seeking the help of political parties during the

periods of strikes and lockouts.

(d)Social functions: carrying out social service activities/discharging social responsibilities

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Objectives of Trade union(a) Wages and salaries

(b) Working conditions

( c) Discipline

(d)Personal policies

(e) Welfare

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Objectives of Trade union(f) Employee-employer relations

(g)Negotiating machinery.

(h)Safeguarding organisational health and interest of the industry

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Role of Trade UnionsAdopting the model of Prof Clark kerr, unions

assume the following role:

(a) Sectional Bargainer-interests of the workers at plant ,industry, national level- multiplicity of unions,crafts unions,white collar unions,etc

(b)class Bargainer-Unions representing the interest of the class as a whole-In France Agricultural unions,Federations of unions, Civil servants unions,etc

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Role of Trade Unions(c)Agents of State:-As in U.S.S.R, ensuring

targets of production at fixed price. In the 1974 Railway strike INTUC stood behind Govt,and its agents

(d)Partners in Social Control: -Co-determinator in Germany.Also some examples are found in holland,France,Italy and Sweden-Some half hearted attempts are being made in India also.

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Role of Trade unions(e) Unions role which can be termed as

enemies of economic systems -they are driven by political ideologies than by

business compulsions.-Leftist unions want to change the fundamental

structure of economy and want to have control over it.

-They therefore encourage high wages,high bonus,etc,without consideration for health of the economy .

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Role of Trade unions(f) Business Oriented Role,where unions

consider the interests of the organisation along with workers.

-The unions think that their members fate is linked with that of organisation and they swim and sink together.

(g)Unions as a change-Agent –lead the changes rather than be led by them, thus performing the pioneering role.

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Classification of trade unionsClassification based on ideology-

Revolutionary unions-Believe in destruction of existing social/economic order and creation of a new one.

-they want shift in power and authority and use of force-left unions.

Reformist or welfare unions- work for changes and reforms within existing socio-political framework of society-European model.

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Classification of trade unionsUplift Unions-They advocate extensive

reforms well beyond the area of working condition,i.e, change in taxation system, elimination of poverty,etc

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Classification based on TradeMany unions have representation and

jurisdiction based on the trades they present. -the most narrow in membership is the craft

union -such as carpentry/pipe fitting /clerical work. -not common in India and Sri Lanka.

• In India and Sri Lanka the range of workers represented in the general union has members drawn from all trades.

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Classification based on TradeUnions representing workers employed on the

production floor or outdoor trades such as in construction work, are called blue collar unions.

-Those employees in shops and offices and who are not in management grades and perform clerical and allied functions are called white collar workers.

Trade unions may be categorised on the basis of the industries in which they are employed.

-examples of workers engaged in agriculture/forestry(agriculture labour unions/forest workers unions)

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Classification based on agreementClosed Shop:Where management and union

agree that the union has the sole responsibility and authority for recruitment of workers.

-The Taft Hartley Act of 1947 bans closed Shop agreement in USA.

-still exists in painting and construction trades/also called Hiring Hall.

Union Shop: All new recruits have to join within a fixed period./USA some states declared to having right to work.

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Classification based on agreementPreferential shop: When union member is given

preference in filling a vacancy

Maintenance Shop: There is no compulsory membership in the union before or after recruitment.

-If he chooses to become member after recruitment his membership remains compulsory through out

his tenure of employment.

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Classification based on agreementAgency Shop: In terms of the agreement

between management and union -a non union member has to pay the union a

sum equivalent to a members subscription to continue in employment.

Open Shop: Membership in a union is in no way compulsory/obligatory

-In such organisation there is no union.Least desirable form for unions.

More usual in west than on the Indian subcontinent.

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Theoretical PerspectiveTRADE UNIONS - THEORETICAL FOUNDATIONS

AND LEGAL FRAMEWORK

We have by now understood that trade unions are voluntary organisations of workers formed to promote their interests though collective action.

We will discuss Four theories propounded by -Karl Marx,Sydney and Beatrice Webb,and Robert

Hoxie based on communist ,socialist,and capitalist perspective.

-Concept of trusteeship advocated by Mahatma Gandhi

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Theoretical PerspectiveWe will assess the significance and the

relevance of these theories on the phenomenal changes in the world economy since late 1980’s

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Theories of Trade UnionWhat we call theories of trade union movement

are in fact some abstract principles or ideologies -These theories seek to explain the basic

motivating factors behind union organisation,Its goals and means to accomplish them.

We will discuss four broad conceptualizations concerning trade union movement:

(1) Karl Marx's notion of class conflict(2) Webb’s formulation which favoured the socialist pattern of society(3) the American version of business unionism (4) the Gandhian vision of trusteeship

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Theories of Trade union MovementKarl Marx: Class Conflict and Communist

Manifesto/Political revolutionary theory of labour movement.

-The Theory is based on Adam Smith’s theory of labour value. - its short –run purpose is to eliminate competition among labour -the ultimate purpose is to overthrow capitalist businessman. -Trade union is a pure and simple class struggle

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Theories of Trade union MovementKarl Marx emphasized a role for intellectuals

t o inspire in workers political consciousness, outside the economic struggle, and outside the sphere of relations between workers and employees.

In India the trade union leadership was largely from the intellectuals and elite groups of socity associated with freedom struggle.

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Theories of Trade union MovementSydney and Beatrice Webb –The Socialist Pattern of

society. -They saw a role for unions to usher in socialism

through political action. -The Webbs too ,like Marx observed that market

pressures drove workers to organize into unions to protect their economic interests.

-The webbs too were opposed to the capitalist system.

-They advocated different paths to bring its downfall. -Marx along with Engels played a key role in drafting

the Communist Manifesto in Germany

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Theories of Trade union MovementThe Webbs played an instrumental role as

intellectual leaders of he Labour Part in Britain,

-drafting the Socialist Manifesto for converting capitalist Britain into a mixed economy

-thus laying he foundation of the nationalisation of major industries.

Marx and his followers prescribed a rapid revolutionary and radical ,even violent ,change to a new order

The Webbs advocated a non violent ,gradual evolution to a socialist form of govt.

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Theories of Trade union MovementRobert Hoxie- Unions under the American

Capitalist System

He argued hat unions evolve differently across socio psychological environmental contexts.

-he considered American Unions less dogmatic and more pragmatic and opportunistic.

He identified five functional types of unionism:(1) Business unionism: They are trade

conscious rather than class conscious.

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Theories of Trade union MovementSuch unions ask for more and more. -Focusing on improvement in Wage ,working

hours, working conditions -pay little attention to political and social action. -they seek o achieve their goals primarily

through collective bargaining and industrial action(strikes)

Hoxie distinguishes business unionism and company unionism.

-the latter is excessively dependent on the company for its (the unions )survival

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Theories of Trade union MovementFriendly or uplift unionism: The goal of such

unions is o elevate the moral ,intellectual, and social life of the worker.

-their means of action include collective bargaining and political action.

Revolutionary unionism: These are class conscious rather than trade conscious

-they follow Marx dictums and reject private ownership of productive resources and condemn wage system.

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Theories of Trade union MovementIndustrial and political action combined with

violence are the dominant means whereby such unions achieve their objectives.

Hoxie divides revolutionary unions into two subtypes

1.Focusing on socialist (unionism) ideals 2.Quasi anarchy 9unionism through

strikes,sabotage and violence.Predatory unionism : such unions are

leadership based.

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Theories of Trade union MovementMahatma Gandhi –The concept of

trusteeship.-it was not based on class conflict or on the

ideology that nationalisation of resources promotes/provide equity.

- emphasized voluntarism.-understood the limitations of capitalism and

socialism and tried to synthesize their virtues in the concept of trusteeship.