Unit - 12: Trade Unions

12.1
I nt roduct i on

A trade union is an organization of workers that have banded together to achieve common goals
such as better working conditions. The trade union, through its leadership, bargains with the
employer on behalf of union members (rank and file members) and negotiates labor contracts
(collective bargaining) with employers. This may include the negotiation of wages, work rules,
complaint procedures, rules governing hiring, firing and promotion of workers, benefits,
workplace safety and policies. The agreements negotiated by the union leaders are binding on
the rank and file members and the employer and in some cases on other non- member workers.

12.2 What is Trade
Union?

Trade union as per Trade Union Act 1926 Any combination formed primarily for the
purpose of regulating the relations between workmen and employers or workmen and
workmen or 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.

From the above definition it is clear that Trade union is not just an association of the
workmen of a factory or a trade or a business but also can be formed by officers and
managers.


According to V.V. Giri, Trade unions are voluntary associations of workers formed together to
promote and protect their interests by collective action.

12.2.1 Objectives of Trade
Union

Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labor practices.
Trade unions are formed to achieve the following objectives:

Representation : Trade unions represent individual workers when they have a problem at
work.
If an employee feels he is being unfairly treated, he can ask the union representative to
help sort out the difficulty with the manager or employer. Unions also offer their members
legal representation. Normally this is to help people get financial compensation for work-
related injuries or to assist people who have to take their employer to court.

Negotiation : Negotiation is where union representatives, discuss with management, the
issues which affect people working in an organization. There may be a difference of
opinion between management and union members. Trade unions negotiate with the
employers to find out a solution to these differences. Pay, working hours, holidays and
changes to working practices are the sorts of issues that are negotiated. In many
workplaces there is a formal agreement between the union and the company which states
that the union has the right to negotiate with the employer. In these organizations, unions
are said to be recognized for collective bargaining purposes.

Voice of Decision Effective Workers : The economic security of employees is
determined not only by the level of wages and duration of their employment, but also by the
managements personal policies which include selection of employees for layoffs,
retrenchment, promotion and transfer. These policies directly affect workers. The
evaluation criteria for such decisions may not be fair. So, the intervention of unions in such
decision making is a way through which workers can have their say in the decision making
to safeguard their interests.

Member Services : During the last few years, trade unions have increased the range of
services they offer their members. These include:

Education and Training : Most unions run training courses for their members on
employment rights, health and safety and other issues. Some unions also help members
who have left school with little education by offering courses on basic skills and
courses leading to professional qualifications.

Legal Assistance : As well as offering legal advice on employment issues, some unions give
help with personal matters, like housing, wills and debt.

Financial Discounts : People can get discounts on mortgages, insurance and loans from
unions.

Welfare Benefits : One of the earliest functions of trade unions was to look after
members who hit hard times. Some of the older unions offer financial help to their members
when they are sick or unemployed.


12.2.2 Role of Trade Union

Trade unions are unique organizations whose role is variously interpreted and understood by
different interest groups in the society. Traditionally trade unions role has been to protect jobs
and real earnings, secure better conditions of work and life and fight against exploitation and
arbitrariness to ensure fairness and equity in employment contexts. In the wake of a long history
of union movement and accumulated benefits under collective agreements, a plethora of
legislations and industrial jurisprudence, growing literacy and awareness among the employees and
the spread of a variety of social institutions including consumer and public interest groups the
protective role must have undergone, a qualitative change.
It can be said that the protective role of trade unions remains in form, but varies in substance.
There is a considerable debate on the purposes and role of trade unions. The predominant view,
however, is that the concerns of trade unions extend beyond bread and butter issues. Trade unions
through industrial action (such as protests and strikes) and political action (influencing Government
policy) establish minimum economic and legal conditions and restrain abuse of labour wherever
the labour is organized. Trade unions are also seen as moral institutions, which will uplift the weak
and downtrodden and render them the place, the dignity and justice they deserve.



12.2.3 Functions of Trade Union

Trade unions perform a number of functions in order to achieve the objectives. These functions
can be broadly classified into three categories:
1. Militant Functions
2. Fraternal Functions

1. Militant Functions
One set of activities performed by trade unions leads to the betterment of the position of their
members in relation to their employment. The aim of such activities is to ensure adequate wages
secure better conditions of work and employment get better treatment from employers, etc.
When the unions fail to accomplish these aims by the method of collective bargaining and
negotiations, they adopt an approach and put up a fight with the management in the form of go-slow
tactics, strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as militant
or fighting functions. Thus, the militant functions of trade unions can be summed up as:
To achieve higher wages and better working conditions
To raise the status of workers as a part of industry
To protect labors against victimization and injustice

2. Fraternal Functions
Another set of activities performed by trade unions aims at rendering help to its members in times
of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and
promote friendly industrial relations and diffuse education and culture among their members. They
take up welfare measures for improving the morale of workers and generate self confidence among
them. They also arrange for legal assistance to its members, if necessary. Besides, these, they
undertake many welfare measures for their members, e.g., school for the education of children,
library, reading-rooms, in-door and out-door games, and other recreational facilities. Some
trade unions even undertake publication of some magazine or journal. These activities, which
may be called fraternal functions, depend on the availability of funds, which the unions raise by
subscription from members and donations from outsiders, and also on their competent and
enlightened leadership. Thus, the fraternal functions of trade unions can be summed up as:
To take up welfare measures for improving the morale of workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination

12.3Types of Trade Unions

TU is any association (temporary /permanent) for the purpose of regulating the relationship
between employers-workers, employer-employer, worker-worker for imposing restrictive
conditions on trade practices. It also includes federation of unions referred as association of
professional persons. In countries like England, trade union is referred as association of
professional person. In India it is considered as cursi - union /semi- union. In America, TU is
considered as the association of all persons in a trade. Functions of TU: functions can be
categorized into: 1. Militant/protective 2. Positive/fraternal. 3. Intramural/extramural

Militant /protective: as the name suggests it protects their members, aims at
securing better conditions of work, employment for members. It uses instruments like
strikes, lockouts etc. for protecting the interest of their members.
Positive/fraternal: It provides financial support to their members during time of
temporary unemployment.
Intramural/extramural: intramural refers to welfare schemes & activities within the
framework of factory premises (safety, secure working environment, minimum wages,
minimum working hours, and leave with wages) Extramural refers to the welfare
schemes outside the factory premises (medical assistance, health care, education etc.)
TU are born out of the necessities of the workers to protect and defend them from injustice,
encroachment and wrong. Unions classified according to purpose: Under this head, normally two
types of unions have been kept 1) Reformist 2) Revolutionary
Reformist Unions: These unions are those which aim at the preservation of the capitalist
society and maintenance of the usual employer-employee relationship, elimination of
competitive system of production. The reformist unions have been subdivided by hoxie
according to the objectives: into business unions and uplift unionism.
Revolutionary Unions: These unions aim at destroying the present structure
completely and replacing it with new and different institution according to the ideas that are
regarded as preferable.
According to membership structure there are four types of Trade unions: 1.Craft unionism, 2. staff
unionism, 3. Industrial union and 4.general union.
Craft Union: Workers, those are working in same as similar type of
work/trade/business. They have similar skills, specialization. Members are mostly non
manual workers. Members are craft conscious than class conscious .They take the
membership on the basis of similar type of work. They strengthen their union by
integration of their members.
Staff Union: Organization, those are basing upon a sense of common status, same type of
need.
They try to seek their membership from non-manual sectors of the economy like clerical,
supervisors, operators, technicians, craftsmen etc. Unique feature of staff union was
women workers were also members of staff union. Staff union gained popularity by
taking women workers as their members.
Industrial Union: Irrespective of crafts, skill, grade, position, gender etc. The workers
working in one industry were members of industrial union. This union is more class
conscious than trade conscious.
General union: It covers all types of industries. Labor class people from any type of
industry can be members of general union. It is more open than the industrial unions. Their
numerical strength is high.

12.4 I mport ance of Trade Union

The existence of a strong and recognized trade union is a pre-requisite to industrial peace. Decisions
taken through the process of collective bargaining and negotiations between employer and
unions are more influential. Trade unions play an important role and are helpful in effective
communication between the workers and the management. They provide the advice and
support to ensure that the differences of opinion do not turn into major conflicts. The central
function of a trade union is to represent people at work. But they also have a wider role in
protecting their interests. They also play an important educational role, organizing courses for their
members on a wide range of matters. Seeking a healthy and safe working environment is also
prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many ways as
follows:
By helping in the recruitment and selection of workers.
By inculcating discipline among the workforce
By enabling settlement of industrial disputes in a rational manner
By helping social adjustments. Workers have to adjust themselves to the new working
conditions, the new rules and policies. Workers coming from different backgrounds may
become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
Trade unions are a part of society and as such, have to take into consideration the national
integration as well. Some important social responsibilities of trade unions include:
Promoting and maintaining national integration by reducing the number of industrial
disputes
incorporating a sense of corporate social responsibility in workers achieving industrial
peace.

12.5 Ri ght s and Liabilities of Trade Union

1. Disabilities of Unregistered Union: A trade union shall not enjoy any of the rights,
immunities or privileges of a registered trade union unless it is registered.

2. Immunity from Civil Suit in Certain Cases: No suit or other legal proceeding shall be
maintainable in any civil court against any registered trade union or any officer or member thereof
in respect of any act done in contemplation or in furtherance of a trade dispute to which a member
of the trade union is a party on the ground only that such act induces some other person to break
a contract of employment, or that it is an interference with the trade, business or employment of
some other person or with the right of some other person to dispose of his capital or of his labour
as he will.



3. Liability in
Tort:

(1) A suit against a registered trade union or against any members or officers thereof on
behalf of themselves and all other members of the trade union in respect of any tortuous act
alleged to have been committed by or on behalf of the trade union shall not be entertained by
any court.
(2) Nothing in this section shall affect the liability of a trade union or any trustee or officers
thereof to be sued in any court touching or concerning the specific property or rights of a
trade union or in respect of any tortuous act arising substantially out of the use of any
specific property of a trade union except in respect of an act committed by or on behalf of
the trade union in contemplation or furtherance of a trade dispute.

4. Liability in Contract: Every registered trade union shall be liable on any contract entered into
by it or by an agent acting on its behalf: Provided that a trade union shall not be so liable on any
contract which is void or unenforceable at law.

5. Objects in Restraint of Trade Not Unlawful in Case of Registered Trade Union: The
objects of a registered trade union shall not, by reason only that they are in restraint of trade
be deemed to be unlawful so as to render any member of such trade union liable to criminal
prosecution for conspiracy or otherwise or to render void or voidable any agreement or trust.

6. Proceedings By and Against Trade Unions:

1. A registered trade union may sue and be sued and be prosecuted under its registered name.
2. An unregistered trade union may be sued and prosecuted under the name by which it
has been operating or is generally known.
3. A trade union whose registration has been cancelled or withdrawn may be sued and
prosecuted under the name by which it was registered.
4. Execution for any money recovered from a trade union in civil proceedings may issue
against any property belonging to or held in trust for the trade union other than the
benevolent fund of a registered trade union.
5. Any fine ordered to be paid by a trade union may be recovered by distress and sale
of any movable property belonging to or held in trust for the trade union in accordance
with any written law relating to criminal procedure.
6. In any civil or criminal proceedings in which a registered trade union is a party such trade
union may appear in such proceedings by anyone of its officers or by an advocate and
solicitor.

7. Strikes and Lock-outs:
1. No trade union of workmen shall call for a strike, and no member thereof shall go on strike,
and no trade union of employers shall declare a lock-out
a) in the case of a trade union of workmen, without first obtaining the consent by secret
ballot of at least two-thirds of its total number of members who are entitled to vote and in
respect of whom the strike is to be called; and in the case of a trade union of employers,
without first obtaining by secret ballot the consent of at least two-thirds of its total
number of members who are entitled to vote;
b) before the expiry of seven days after submitting to the Director General the results of such
secret ballot in accordance with section 40 (5);
c) if the secret ballot for the proposed strike or lock-out has become invalid or of no effect by
virtue of section 40 (2), (3), (6) or (9);
d) in contravention of, or without complying with, the rules of the trade union;
e) in respect of any matter covered by a direction or decision of the Minister given or made
in any appeal to him under this Act; or
f) in contravention of, or without complying with, any other provision of this Act or any
provision of any other written law.

2. Any trade union which, and every member of its executive who, commences, promotes,
organizes or finances any strike or lock-out which is in contravention of subsection (1) shall be
guilty of an offence and shall, on conviction, be liable to a fine not exceeding two

3. Any member of a trade union of workmen who commences, participates in, or otherwise
acts in furtherance of, any strike which is in contravention of subsection (1) shall forthwith cease
to be a member of the trade union, and thereafter such member shall not be eligible to become
a member of any trade union except with the prior approval of the Director General in writing; and
the trade union of which he has so ceased to be a member shall forthwith
a) Remove the name of such member from its membership register;
b) Inform the Director General and the member concerned of such removal; and
c) Exhibit conspicuously in its registered office in a place where it may be easily read a list of
members whose names are so removed.

4. The Director General may, where he is satisfied that subsection (1) has been contravened
by any person and the trade union concerned has failed to carry out the provisions of
subsection (3), or where there is undue delay in so doing, after such investigation as he deems
necessary, order the trade union to remove forthwith the names of the members concerned from
its membership register.

5. The satisfaction of the Director General under subsection (4) that subsection (1) has been
contravened by any person may be arrived at regardless as to whether or not there is any
prosecution of any person for contravention of the said subsection (1).

6. Any registered trade union which, and every member of its executive who, fails to comply with
subsection (3) or with an order of the Director General under subsection (4) shall be guilty of an
offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit, and a further
fine of one hundred ringgit for every day during which such offence continues.

7. In every proceeding for an offence under this section the onus of proving that the requirements
specified in subsection (1) have been complied with shall be on the trade union, the member of its
executive or the member of the trade union, as the case may be.

Thousand ringgit, or to imprisonment for a term not exceeding one year, or to both, and a further
fine of one hundred ringgit for every day during which such offence continues.

LABOUR LAWS

Law-Law is a rule or a system of rules recognized by a country or a community as regulating the
actions of its members and enforced by the imposition of penalties.

Common Features of All Laws
Short title and commencement
Preamble i.e. purpose of the law
Definitions
Substantive provisions
Penalty provisions
Records/ Registers/ Returns
Inspectorate/ Enforcement authority

Factors responsible for development of Labor laws
E x p l o i t a t i o n of the workmen by the
S o c i a l pressure and pressure from trade unions
G o v e r n me n t policies based on Government philosophy which in turn was based on
the political ideologies
C o n s t i t u t i o n of Kenya
Courts recommendations on the cases that came up in the courts
Recommendations of various commissions and committees set up by government from
time to time
C o n v e n t i o n s and recommendations of International labor organization (ILO)
Awareness about environment

Categories of Labor Laws

E mp l o y me n t Act 2007
lt establishes minimum terms and conditions of employment
lt also provides for prohibition against forced labour, discrimination in employment on
the basis of race, colour, sex, language, religion, political or other opinion, nationality,
ethnic or social origin, mental or HIV status and sexual harassment.
lt deals with payment, disposal and recovery of wages, allowances and deductions of an
employee.

L a b o u r Institutions Act
The law establishes institutions and organizations for the administration and
management of labour relations the national Labour Board, the industrial Court,
Committee of Inquiry, Labour Administration and Inspection, the Wages Council and
Employment Agencies.
The law, however, does not apply to the Armed Forces, Kenya Police, Prisons Service,
Administration Police and the National Youth Service.
L a b o u r Relations Act

consolidate the law relating to trade unions and trade disputes,
to provide for the registration, regulation, management and democratization of trade
unions and employers organizations or federations,
to promote sound labour relations through the protection and promotion of freedom of
association,
the encouragement of effective collective bargaining and promotion of orderly and
expeditious dispute settlement, conducive to social justice and economic development
Oc c u p a t i o n a l Safety & Health Act (OSHA)
provide for the safety, health and welfare of workers and all persons lawfully present at
workplaces,
to provide for the establishment of the National Council for Occupational Safety and
Health and for connected purposes.

Wo r k Injury Benefit Act (WIBA)
It introduces a legal framework compliant with ILO conventions related to
co1npensation of` employees injured at work or who contract diseases and to extend
insurance cover. Employers are obligated to obtain an insurance policy to cover the
employers liability, register with the Director of Work Injuries Benefits and to keep
records and make annual returns.