Human Resources Management UNIT 27

7/30/2019 Human Resources Management UNIT 27

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UNIT 27

Trade Union

In an organisation the employees will have to remain untied to safeguard

their interests. Lack of unity among the employees may give scope for

certain unscrupulous employers to exploit the former. The force that binds

the employees of an organisation together is what is known as a trade union.

UNITED WE STAND AND DIVIDED WE FALL is the basic philosophy of the

trade union movement.

This Chapter is devoted to a discussion on trade unions.

Trade Union Meaning

A trade union is essentially an association of employees of a particular trade

or industry formed to safeguard the interests of its members against certain

vindictive management actions. It enables the employees to act together as

an individual employee is in a weak bargaining position to negotiate with the

employer.

Definitions

Given below are some of the important definitions of a trade union:

1. A trade union is a continusing, along term association of employees,formed and maintained for the specific purpose of advancing and

protecting the interests of members in their working relationships

Dale Yoder.


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2. A union is a continuous association of person in industry whetheremployees or independent workers formed primarily for the purpose

of the pursuit of the interests of its members of its members of the

trade they represent Punekar.

3. Trade union is any combination whether temporary or permanentformed primarily for the purpose of regulating the relations between

workmen and employers or between workmen, between employers

and employers or for imposing restrictive conditions on the conduct of

any trade or business and include any federation of two more trade

unions The Indian Trade Union Act,1926.

An analysis of the above definitions may bring out the following

characteristics of a trade union:

1. Association of Employees A trade union is essentially an associationof employees belonging to a particular class of employment,

profession, trade or industry. For example, there are unions for

teachers, doctors, film artistes, weavers, mine workers and so on.

2.Voluntary Association An employee joins the trade union of his freewill. A person cannot be compelled to join a union.

3. Permanent Body A trade union is usually a permanent body.Members may come and go but the trade union remains.

4. Common Interest Te members of a trade union have certain mattersof common interest job security, better pay and working conditions

and so on, which bring them together.

5. Collective Action Even when an individual employee has anygrievance over certain management decisions, the matter is sorted out


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by the intervention of the trade union. employees are able to initiate

collective action to solve any problem concerning any particular

employee or all the employees.

6. Rapport with the Management The trade union seeks to improverelations between the employees and the employers. The officials of

the trade union hold talks with the members of the management

concerning the problems of the employees in other to find an amicable

solution. It is, thus, possible for the employees to have better rapport

with the management.

Needs for Trade Unions

Workers join trade unions to achieve certain objectives that they may

not be able to achieve in their personal capacity. Trade unions are necessary:

1. To ensure job security and right pay for the members One of thebasic needs of any employee is security of service. The main reason

why an employee joins a union is to get himself secured. Apart from

job security the employees need to get pay commensurate with their

qualifications and skills. Trade unions strive to get both job security

and correct pay for all employees.

2. To ventilate the grievances of employee to the management When the employees in general or some in particular have any

grievance, they may not be able to convey the same to the

management in their personal capacity. Such grievances may be

brought to the knowledge of the management through the trade


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union. The members of the management may be indifferent to the

demands of the individual employees but they cannot be so when it

comes to union demands.

3. To have better bargaining power The decisions of themanagement regarding promotions, transfer, disciplinary action, etc.

can be challenged by the employees collectively. Trade union, thus,

give the employees better bargaining power.

4. To secure better conditions of service Apart from job security andright pay, employees need certain other benefits like leave with pay,

career advancement benefits, provident fund, pension, accident

benefits, etc. certain managers may be indifferent to these needs of the

employees. Trade unions strive to secure better service conditions for

all employees.

5. To have a say in management decisions Certain matters affectionthe interests of the employees may be decided by the management

unilaterally. Trade unions ensure that the employees are also involved

while evolving such decisions.

Faction of Trade Unions

The important functions of trade union are as follows:

1. Safeguarding the interests of employees The main function of a tradeunion is to safeguard the interests of its members. It ensures job

security for every employee. It further ensures that no members is

victimized due to such vindictive actions of the employer as pay cut,

suspension, demotion, discharge or termination of service.


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2. Ensuring better working and living conditions Trade union strive tosecure for the employees fair wages, incentives, bonus, medical

facilities, leave benefits, provident fund, pension and better working

conditions.

3. Securing promotion and training opportunities Unions ensure thatemployees do not suffer in account of stagnation in their career path.

They work with the management to enable the employees undergo

training to update their job knowledge ad skill. They further work to

secure promotion opportunities to every employee commensurate with

his experience, qualification and performance.

4. Redressing grievances Whenever an employee has any grievance overthe actions of the management he brings it to the notice of the union.

The union takes up the issue with the management and find a

solution.

5. Collective bargaining A individual employee may not be able torepresent his grievances to the employer in his personal capacity.

When the same is represented by the union, which is an association of

employees, the benefits of collective bargaining becomes available. In

such a situation, the management will also be under pressure to

amicably settle the issue.

6. Participation in management decisions In the absence of tradeunions, managements will be free to take certain unilateral decisions.

Unscrupulous managements may evolve decisions that are detrimental

to the interests of the working class. The presence of union ensures

that such one-sided decisions are not made and the views if the


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employees are also obtained before evolving and final decision on any

matter.

7. Education Trade union may arrange for the education of theirmembers and their families. They may instigate the members to

acquire higher qualifications and also provide the necessary help so

that they can move to higher position in the organisation.

8. Recreation Trade unions do organize sports and other recreationalactivities for their members.

9. Financial assistance Trade unions may provide financial help to theirmembers during period of strikes and lock-outs and also to any

member undergoing medical treatment towards his medical expenses.

10. Convening meetings General body meetings and meetings of theoffice- bearers are held at regular intervals to discuss any issue

concerning the employees. Certain important decisions are also made

in such meetings.

11. Distrusting pamphlets, booklets etc The programmes of the tradeunion and the issues pertaining to the service conditions of the

employees are intimated to the members by means of pamphlets and

booklets. Trade unions may also bring out magazines and such other

periodicals to enlighten the members on the general conditions of the

working class.

12. Social service Trade unions do undertake social service. They may,for example, provide financial help, by collecting contributions from

the members, to the victims of earthquake, floods and other naturals

calamities. It may be mentioned here that most trade unions


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contributed to the kargil Fund recently by receiving contributions

from members.

13.Political affiliation Trade unions have political affiliation. They mayseeks the help of political parties to solve certain problems confronting

the working class when their efforts do not produce the desired result.

The political affiliation also provides scope for the discussion of the

issues in the Legislative Assembly or in the Parliament.

14.Organizing demonstrations When the talks with the management bythe trade union officials over certain grievances of employees. Fail, the

union will be left with no option but to organise certain programmes

like demonstrations, slogan shouting, fasting and so on to highlight

their problems.

15. Giving strike calls If none of the measures adopted by the tradeunion to find a solution to the problems of the workers yields any

result, it will be left with no option but to give a strike call. The union

members are expected respond favourable to such a strike call that is

used only as the last resort.

Important Provisions of the Trade Unions Act, 1926

The important Provisions of the Trade Unions Act, 1926 are given

below:

Registration of Trade Unions

Any seven or more members of a trade union may, by subscribing their

names to the rules of the trade union and by otherwise complying with


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provisions of the Trade Unions Act with respect to registration, apply for its

registration.

The application for registration shall be made to the Registrar of Trade

Unions. It must be accompanied by a copy of its rules and a statement giving

the following particulars:

(i) The names, occupations and addresses of the members making theapplication.

(ii) The name of the trade union and the address of its head office and(iii) The titles, names, age, addresses and occupations of the officers of

the trade union.

If the trade union has been in existence for more than one year before

making the application for its registration, a general statement of its assets

and liabilities prepared in the prescribed form has also to be made to the

Registrar along with the application.

A trade union id entitled to registration only if its executive is

constituted in accordance with the provisions of the Act and its rules provide

for the following matters:

1. The name of the trade union;2. The whole of its objects;3. The whole of the purpose for which the general funds of the trade

union shall be applicable;

4. The maintenance of a list of the members of the trade union andadequate facilities for the inspection thereof by the office bearers and

members of the trade union;


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5. The admission of ordinary members who shall be persons actuallyengaged or employed in the industry with which the trade union is

connected and also the admission of the number of honorary or

temporary office-bearers to form the executive of the trade union;

6. The payment of a subscription by the members of the trade unionwhich shall be not less than 25 paise per month per member;

7. The conditions under which the members shall be entitled to anybenefit assured by the rules and conditions under which fines may be

imposed on them;

8. The manner in which the rules shall be amended, varied or rescinded;9. The manner in which the members of the executive and other office-

bearers of the trade union shall be appointed and removed;

10. The safe custody of he funds of the trade union and annual audit ofthe accounts thereof, and facilities for the inspection of the account

books by the office-bearers and members of the trade union; and

11.The manner in which the trade union may be dissolved.If the Registrar is satisfied that the trade union has complied with all

the requirements of the Trade union Act with respect to registration he shall

register the trade union.

A trade union after registration acquires the following characteristics:

(a)It becomes a body corporate by the name under which it is registeredand becomes a legal entity distinct from the members of which it is

composed.

(b) It has perpetual succession and a common seal.


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(c)It has the power to acquire and hold both movable and immovableproperties.

(d) It has the power to contract.(e)It can by the name under which it is registered sue and be sued.

Change of Name

Any registered trade union may, with the consent of not less than

2/3rds of total number of members, changes its name. Notice in writing of

the change signed by the secretary and by seven members of the trade union

shall be sent to the Registrar. If the proposed name is not identical with the

name of any existing trade union, the Registrar shall register the change of

name.

The change in the same does not affect any rights or obligations of the

trade union or render defective any legal proceeding by or against the trade

union.

Registered Office

All communications and notices to a registered trade union may be

addressed to its registered office. Notice of any change in the address of the

head office shall be given within 14 days of such change to the Registrar in

writing.

Who may become members?

Anny person who has attained the age of 15 years may be a member of

a registered trade union. This is subject to any rules of the trade union to the

contrary. Any such member, subject to the rules of the trade union, may


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enjoyed all the rights of a member and execute all instruments and give all

acquaintances necessary to be executed or given under the rules. But he

cannot be an office-bearer of the trade union until he attains the age of 18

years.

It is only persons engaged in trade or business who can form a trade

union can form one and become members.

Rights and Privileges of a Registered Trade Union

The rights and privileges of a registered trade union are as follows:

1. Every registered trade union is a body corporate by the name underwhich it is registered. It has perpetual succession and a common seal.

It has powers to acquire and hold both movable and immovable

property. Further it can sue and be sued in its own name.

2.A registered name union may constitute a separate fund, fromcontributions separately levied for or made to that fund, from which

payments may be made for the promotion of the civic and political

interests of its members.

3.An office-bearer or member of a registered trade union shall not beliable to punishment under the Indian Penal Code, 1860 in respect of

any agreement made between the members for the purpose of

furthering any such object of the trade union on which general funds

may be spent. Where a strike is accompanied by violence,

intimidation, threat, etc., this exemption is not available. Similarly, a

union leader is not entitled to claim immunity from punishment for

breach of discipline.


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4.A suit or other legal proceeding shall not be maintainable in any CivilCurt against any trade union or any office-bearer or member thereof in

respect of any act done in contemplation or furtherance of a trade

dispute to which a member of the trade union is a party. The union. its

office-bearers and members shall, however, be liable for any act of

violence or vandalism or deliberate trespass.

5.An agreement between the members of a registered trade union shallnot be void or voidable merely because any of the objects of

management is in restraint of trade.

6. The account books of a registered trade union and the list of membersthereof are open to inspection by an office-bearers and the members so

that they can satisfy themselves as to the genuineness of members and

of the account of the union.

7. Subject to any rules of the trade union to the contrary, any person whohas attained the age of 15 years may become a member of a registered

trade union and enjoy all the rights of a member. To become an office-

bearer, however, the person must have attained the age of 18 years.

Duties and Liabilities of a Registered Trade union

The following are the duties and liabilities of a registered trade union:

1. In case of change in the address of the head office the trade union,notice of change must be given to the Registrar in writing.

2. The general funds of registered trade union shall be spent for thefollowing purposes only:


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3.A registered trade union is also empowered to constitute a politicalfund that can be utilised for the following purpose:

(a)Payment of expensive incurred by a candidate for election as amember of any legislative body constituted under the Constitution

or of any local authority; or

(b) Holding of any meeting or distribution of any literature ordocument in support of any such candidate; or

(c)Maintenance of any person who is a member of any legislative bodyconstituted under the Constitution or of any local authority; or

(d) Registration of electors or election of a candidate for anylegislative body constituted under the Constitution or of any local

authority; or

(e)Holding of political meeting of any kind or distribution of politicalliterature or document of any kind.

Expenditure for political purposes will not be, under any

circumstances, permitted out of the general funds of the union.

Political fund can be created only from contributions separately

levied. Members must not be compelled to contribute to the fund.

A member who does not contribute to the fund must not be

excluded from any benefits of the trade union or placed under any

disability or disadvantage. Contribution to the political fund also

must not be made a condition for the admission of any member

into the trade union.

4. Not less than one-half of the total number of office-bearers of everyregistered trade union must be persons actually engaged or employed


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in the industry with which the trade union is connected. The

remaining office-bearers may be social or political workers.

5. Every registered trade union shall send annually to the Registrant ageneral statement, audited in the prescribed manner, of all receipts

and expenditure during the ear ending on the 31st day of December. It

shall also send a statement of assets and liabilities on that date.

Together with the general statement it shall send a statement of all

changes of office-bearers made during the year and a copy of the rues

of the union corrected up to the date of dispatch to the Registrar.

6.A person shall be disqualified for being selected as an office-bearer of aregistered trade union if he is below 18 years of age or has been

convicted by a court in India and sentenced to imprisonment.

Problems of the Trade Union Movement in India

The shortcoming or the weakness of the trade union movement in

India are as follows:

1. Lack of balanced growth2. Low membership3. Poor financial position4. Political control5. Multiplicity of unions6. Inter-union rivalry7. Lack of recognition8. Opposition from employers9. Lack of able leaders


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10.Indifferent attitude of membersLet us discuss these now.

Lack of Balanced Growth

Trade unions are often associated with big industrial houses. A vast

majority of the working population is without any union backing. The entire

agricultural sector is highly unorganised is India. The agricultural workers

are subject to all kinds of exploitation. The same is true with respect to those

working in small-scale and cottage industries. Lack of balanced growth of

trade unions in all sectors is one of the major weaknesses of the trade union

movement in India.

Low Membership

Trade unions, with the exception of a few, have low membership. This

is because may employees are not willing to join unions although they are

ready to enjoy the benefits arising out of the union actions. The reasons for

the hesitation of employees to join unions include, among others, the need

to take part in strikes and such programmes, fear of pay-cut and fear of

punishment.

Poor Financial Position

Low membership is one of the reasons for the poor financial position

of the unions. Moreover, the subscription payable by every member is kept

low. Some members may not even make a prompt payment of the small

amount of subscriptions. There are also not very many sources from


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philanthropists. The poor financial position can only weaken the trade union

movement.

Political Control

Most popular trade unions in India are affiliated to certain political

parties. These political parties are only keen on making every grievance of

the working class a political issue to attain certain political gains. As a result,

the problem only gets wide publicity and remains unsolved.

Multiplicity of Unions

Often, there exists more than one union within the same industry each

backed by a political party. These various unions have conflicting ideology. If

one union comes out with a strike proposal another union may work against

it. As a result, none of the unions is actually able to solve the problems of the

workers.

Inter-Union Rivalry

The existence of many unions within a particular industry paves way

for what is called inter-union rivalry. These unions do not work together for

the cause of the workers. Each union may adopt a different approach to the

problem. The inter-union rivalry may become a more serious problem than

the actual problems of the workers. As a result, the employees are unable to

drive the benefits of collective bargaining.


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Lack of Recognition

Most managements are not prepared to recogise trade union. This

happens because of any of the following reasons:

(a)The existence of low membership that reduces the bargaining power ofthe union.

(b) The existence of more unions within the same industry.(c)Inter-union rivalry.(d) The different attitude of the employees themselves towards trade

unions.

Opposition from employers

Apart from the fact that most employers are not prepared to recognise

trade unions they also do not let their employees form a union. this the

employers are able to achieve by adopting certain punitive measures like

intimidating employers, victimising unions leaders, initiating disciplinary

action against employees indulging in union activities and so on.

Some employers also start rival unions with the support of certain

employees. Sometimes, they may go to the extent of barbing union leaders to

avert a strike or such similar show of protest b employees. These empoyers

fail to understand that unions enable the employees to express their

grievances in a democratic manner and can also be used as a means of

promoting better labour-management relationships.


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Lack of Able Leaders

Another barrier to the growth of trade unions is the lack of able

leaders. Some union leaders give a strike call even for petty problems that

can easily be resolved through talks. On the other hand, there are leaders

who have secret pact with the management. They get bribes from the

management and work against the interests of the employees. Some leaders

dont convene a meeting of the general body at all even when a crisis

develops. They take unilateral decisions that are thrust on the employees.

Indifferent Attitude of the Members

Union leaders alone cannot be blamed for the weakness of the trade

union movement. The different attitude of the members of certain unions is

alone a barrier. Some members do not even make a prompt payment of the

subscription amount. The treasurer of the union has to go behind them,

remind and persuade them to pay the subscription that is often a very small

amount.

There are, on the other hand, members who do not attend the general

body meetings nor do they bother to know what is discussed in such

meetings. There are still others who do not take part at all in any of the

programmes of the union organised to press the demands of the employees

like slogan shouting, procession, demonstration, hunger strike, etc.

Members generally expect the office-bearers to do all that is necessary

to achieve the demands.


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Measures to strengthen Trade Unions

The following are some of the measures that can be adopted to

strengthen trades unions:

1. Improve financial position The poor financial position of the tradeunion does not permit it to undertake certain activities. For example, it

requires funds to print to pamphlets and booklets, to prepare banners

and placards, to enable the officer-bearers to travel to different places

to mobilize support and so on in the process of working for the causes

of the employees. The first corrective action that is necessary,

therefore, is to improve the financial position of every trade union. the

following steps may be taken is this regard:

(a)The amount of subscription must be increased in tune with theincrease in the cost of operations.

(b) The members must be persuaded to make prompt payment ofthe subscription.

(c)Donations may be sought from philanthropists.2. Increase Membership Step must be taken to increase the

membership of trade union. the employees must be enlightened on the

importance of co-operation and collective bargaining. This must be

done on a continuous basis or till such time the employees take the

decision to join the union. the office-beaters must take the initiative to

make the employees understand the philosophy of United We Stand

and Divided We Fall.

3. Get rid Political Affiliation When trade union have politicalaffiliation, the political parties make an attempt to use the power of


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union to their own political gains. It is, therefore, important that our

unions free themselves from political control. When the employees

have certain genuine demands, they must represent the same to their

employers through able leaders who are none other than their own

fellow workmen. No attempt should be made to politicise any issue.

4. Do away with Multiple Unions The existence of any trade unionswithin the same industry only reduces the power of collective

bargaining. Moreover, every such union works to its own ideal. The

general interests and well-being of the employees, thus, are ignored. It

is, therefore, necessary to make efforts to bring all the employee under

one union.

5. Securing Recognition Every employee working in any industrymust be made to realise the importance of the trade union. He must

come forward to join the union willingly. Once the support of the

employees is received, the next step is to make all possible efforts to

persuade every management to recognise the trade union.

Human Resources Management UNIT 27

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