Labour & industrial laws

DR. SHAKUNTALA MISRA NATIONAL REHABILITATION

UNIVERSITY, LUCKNOW.
LAW FACULTY

SUBJECT:
LABOUR & INDUSTRIAL LAWS

TOPIC:
ROLE OF TRADE UNION

SUBMITTED TO: SUBMITTED BY:

Mr. Bipin Shah Prasoon Kumar

Asst. Professor B.Com. LLB. (Hons.)
(Faculty of Law) 5th Year, 9th Sem.
D.S.M.N.R.U, Lucknow.

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 Labour & industrial laws

ACKNOWLEDGEMENT

The acknowledgement may go on like this. I would like to express my special

thanks of gratitude to my teacher.

Mr. Bipin Shah who gave me the golden opportunity to choose and do this
wonderful project on the topic ROLE OF TRADE UNION, which also helped me
in doing a lot of Research and, I came to know about so many new things I am
really thank full to them.

Secondly I would also like to thank my parents and friends who helped me a lot.

I am making this project not only for marks but also to increase my knowledge and
skills.

THANKS TO ALL OF YOU.

PRASOON KUMAR

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 Labour & industrial laws

WORKING BIBILIOGRAPHY

The research work and its related material based on many types of sources such as
books, internet, notes. I use the some books of LABOUR & INDUSTRIAL LAWS.
These names are –:

o S. N. Misra, Central Law Publication, (Labour & Industrial Laws,

Allahabad, 28th ed./2016)

I use the sum internet websites, these are following:-

http://shodhganga.inflibnet.ac.in
https://en.wikipedia.org/wiki/
http://shodhganga.inflibnet.ac.in/
http://humanities.uwe.ac.uk/

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TABLE OF CONTENTS

 COVER PAGE
 ACKNOWLEDGEMENT
 WORKING BIBILIOGRAPHY
 TABLE OF CONTENTS
 HISTORY
 INTRODUCTION
 ROLE OF TRADE UNION
 OBJECTIVES AND NEEDS
o Need for Trade Unions
 FUNCTIONS OF TRADE UNIONS
 CONCLUSION
 CERTIFICATE

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 Labour & industrial laws

HISTORY

As an organized movement, trade unions began to take shape in India in the years
immediately following the end of the World War I. The rise of trade unions was a
new development in the society. In its long history through the ayes there is no
organization which can be regarded as the prototype of a trade union.1

"There are some similarities between a trade union and a caste, but there are
more dissimilarities than similarities. A caste is many a time wedded to a
profession or a craft. Originally the caste system may have developed, at least
partially, as a result of different professions and practices followed by various
sections of the society. But in course of time caste became entirely dependent on
birth. One is born into a caste, he cannot join it. The link between the caste and the
profession or craft also broke down in later years."2

Trade unions are essentially the product of modem large scale industry.
Indian trade unions did not grow out of any existing institutions in the society.
They developed as a new institution. So far as the question of formation and
development of Trade Unions in India is concerned, its necessity was realized from
1875 onwards by philanthropists, social workers like Shri Soirabji Shapaji
Bengalle and Shri N.M. Lokhandey. As a result of their concrete efforts there was
awakening among the workers and they had formed a few trade unions like The
Printers Union, Calcutta (1905) the Bombay Postal Union (1907) etc Yet the
necessity of having workers organization on a large scale was realized only after
the 1st World War. Therefore, labour leaders like Mahatma Gandhi had given due
impetus to the organization of workers.

1
http://shodhganga.inflibnet.ac.in/bitstream/10603/610/11/11_chapter3.pdf
2
Harian, July 3, 1937, p.161, July 29, 1983, p.216

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Accordingly, he advised the working class, "to combine themselves in the

form of unions but not for political motives but for bettering their social or
economic positions. So by combining into unions the labour would become
intelligent enough firstly "to co-operate with itself' ''and secondly “Then to offer
co-operation with capital on terms of honorable equality".

Besides Gandhi and the Royal Commission on Labour (1929- 31) the necessity of
forming Trade Unions has increasingly become more and more on attainment of
independence in India (i.e. 15~ August, 1947). After being independent, India
drafted her own constitution where in various freedoms viz., freedom of speech,
freedom of association, freedom of settlement and freedom of employment etc.
have been guaranteed and goal of social justice has been set up for the welfare of
all. Simultaneously for having planned economic development and bringing about
social transformation in the country, the Planning Commission drafted its first five
year plan, setting therein necessary targets of production - industrial as well as
agricultural - to be achieved during the next five years. For having industrial
advancement industrial Policy Resolution in 1948, was also prepared.3

3
http://shodhganga.inflibnet.ac.in/bitstream/10603/610/11/11_chapter3.pdf

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 Labour & industrial laws

INTRODUCTION

In India, the first quarter of the 20th century gave the birth of the trade union
movement. A series of strikes were declared in India in the twenties. The success
of most of these strikes led to the organization of many unions.

In 1920, the All India Trade Union Congress (AITUC) was set up. In 1926,
the Trade Unions Act was passed which gave a legal status to the registered trade
unions.

Subsequently many trade unions were formed such as:

 Indian National Trade Union Congress (INTUC),

 Centre of Indian Trade Unions (CITU),

 Hind Mazdoor Sabha (HMS),

 Bharatiya Mazdoor Sangha (BMS),

 United Trade Union Congress (UTUC), and

 National Federation of Independent Trade Unions (NFITU).

Trade unions are those organizations of employees/workers who work for the
maintenance and enhancement of their economic status by insisting on a rise in
money wages and improvement in working conditions and benefits. Besides this
economic objective, there are other dimensions of trade unions which have grained
importance in the context of the changing sociopolitical environment. The worker
is not only a factor of production but an individual whose total life situation is a
matter of concern for the trade unions. Gandhi ji viewed trade unions as moral
institutions aiming at making the workers better individuals and responsible
citizens. Trade unions are considered to be institutions experimenting with

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industrial democracy which would strengthen democracy. Traditionally, trade

unions have been resistance organizations defending the interests of workers and
see to it that they are not exploited. They have also been viewed as instruments of
change in the socio-political system so that workers may have their own
government and prevent their exploitation.4

A trade union, also called a labour union (Canada) or labour union (US),
is an organization of workers who have come together to achieve many common
goals, such as protecting the integrity of its trade, improving safety standards, and
attaining better wages, benefits (such as vacation, health care, and retirement),
and working conditions through the increased bargaining power wielded by the
creation of a monopoly of the workers.5 The most common purpose of these
associations or unions is "maintaining or improving the conditions of
their employment". This may include the negotiation of wages, work rules,
complaint procedures, rules governing hiring, firing and promotion of workers,
benefits, workplace safety and policies.6

Unions may organize a particular section of skilled workers (craft

unionism), a cross-section of workers from various trades (general unionism), or
attempt to organize all workers within a particular industry (industrial unionism).
The agreements negotiated by a union are binding on the rank and file members
and the employer and in some cases on other non-member workers. Trade unions
traditionally have a constitution which details the governance of their bargaining
unit and also have governance at various levels of government depending on the
industry that binds them legally to their negotiations and functioning.7

4
http://shodhganga.inflibnet.ac.in/bitstream/10603/41250/6/06_chapter%202.pdf
5
Frost, Daniel (1 April 1967). "Labor's Antitrust Exemption". California Law Review. Archived from the original
on 2017-12-16. Retrieved 2017-12-15.
6
https://en.wikipedia.org/wiki/Trade_union
7
https://en.wikipedia.org/wiki/Trade_union

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ROLE OF TRADE UNION

"Trade unions have a vital and constructive role in improving the quality of life of
the workers. They should evince greater interest in welfare programme for their
members, such as education including literary, health and family planning, and
recreational and cultural activities. They can also promote personal and
environmental hygiene and a sense of thrift and savings. Government can consider
some financial aid to those trade unions which take up such welfare activities.8

Trade Unions perform the following role in different spheres.9

(i) Sectional Bargainer - Interests of the workers at plant, industry, national

level multiplicity of unions, Crafts Unions, white Collar Union, etc.
(ii) Class Bargainer - Unions representing the interest of the class as a
whole - In France Agricultural Unions, Federation of unions, Civil
Servants Union, etc.
(iii) 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.
(iv) Union’s role which can be termed as enemies of economic systems,
driven by political ideologies than by business compulsions. Business
Oriented Role, where unions consider the interests of the organizations
along with workers.
(v) Unions as Change - Agent - lead the changes rather than be led by them,
thus performing the pioneering role.

8
http://shodhganga.inflibnet.ac.in/bitstream/10603/41250/6/06_chapter%202.pdf
9
http://shodhganga.inflibnet.ac.in/bitstream/10603/41250/6/06_chapter%202.pdf

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OBJECTIVES AND NEEDS

Unions concentrate their attention to achieve the following objectives:10

(A) Wages and Salaries : The subject which drew the major attention of the trade
unions are wages and salaries. However, differences may arise in the process
of their implementation. In the case of unorganized senior the trade union plays
a crucial role in bargaining the pay scales.
(B) Working Conditions : Trade unions with a view to safeguard the health of
workers demand the management to provide all the basic facilities such as
lighting and ventilation, sanitation, rest rooms, safety equipment while
discharging hazardous duties, drinking water, refreshment, minimum working
hours, leave and rest, holidays with pay, job satisfaction, social security
benefits and other welfare measures.
(C) Personal Policies : Trade unions may fight against improper implementation
of personnel policies in respect of recruitment, selection, promotions, transfers,
training, etc.
(D) Discipline : Trade unions not only conduct negotiations in respect of the items
with which their working conditions may be improved but also protect the
workers from the clutches of management whenever workers become the
victims of management's unilateral acts and disciplinary policies.
(E) Welfare: As stated earlier, trade unions are meant for the welfare of workers.
Trade union works as a guide, consulting authority and cooperates inn
overcoming the personal problems of workers.
(F) Employee-Employer Relations: Harmonious relations between the
employees and employer are sine quanon for industrial peace. A trade union
always strives for achieving this objective. Trade union, being the

10
http://shodhganga.inflibnet.ac.in/bitstream/10603/41250/6/06_chapter%202.pdf

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representative of all the workers, may carry out continuous negotiations with
the management with a view to promoting industrial peace.
(G) Negotiating Machinery: Negotiations include the proposals made by one
party and the counterproposals of the other. This process continues until the
parties reach an agreement. Thus, negotiations are based on the give and take'
principle. Trade union, being a party for negotiations, protects the interests of
workers through collective bargaining. Thus, the trade union works as the
negotiating machinery.
(H) Safeguarding Organizational Health and the Interest of the Industry:
Organizational health can be diagnosed by methods evolved for grievance
redressal and techniques adopted to reduce the rate of absenteeism and labour
turnover and to improve the employee relations. Trade union by their effective
working may achieve employee satisfaction.

# Need for Trade Unions:

It is however, a significant question. The worker joins a trade union for a variety
of reasons, but he may be no more conscious of the motive or motives that prompt
him to join a union. The trade unions are the organizations formed by working
male and female workers both to improve the conditions of labour and to further to
attain better life.

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FUNCTIONS OF TRADE UNIONS

Trade unions in present era of industrial development perform two sets of

functions: the "Militant Functions and the Fraternal Functions." The trade union is
a militant organization designed to fight for the cause of the workers. One of the
main aims of the organization of workers into trade union is to secure better
conditions of work and employment. The trade unions try to fulfill this aim by the
method of collective bargaining and negotiations and if they do not succeed in
securing their purpose in this manner, they put up a fight with the employers for
achieving their end in the form of strikes and boycotts. The trade unions have
started making efforts to secure some share in the profits and also control of the
industry.

Then, the trade union is also a fraternal association, a benefit organization,

providing sickness and accident benefits to the members and supporting them
during strikes and lockouts and during the period when they are temporarily out of
work. Such financial help to the members is given by the trade unions out of their
own funds created through subscriptions by members. Such functions are known as
fraternal functions. However, in modern period, the various functions are
performed by trade unions as pointed out below:

(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. through collective bargaining and direct
action such as strikes, gheraos, etc.

(B) Fraternal or extra-mutual functions :

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These functions include providing financial and non-financial assistance to

workers during the periods of strikes and lock-outs, extension of medical facilities
during slackness and casualties, provision of education, recreation, recreational and
housing facilities, provision of social and religious benefits, etc.

(C) Political functions :

These functions include affiliating the union to a political party, helping the
political party in enrolling members, collecting donations, seeking the help of
political parties during the periods of strikes and lock-outs.

(D) Social functions :

These functions include carrying out social service activities, discharging social
responsibilities through various sections of the society like educating the customers
etc.

According to Sir John Price11

"The trade union of today is not content with protecting and improving wages and
conditions of labour; it concerns with all matters by which the workers are likely to
be affected whether as producers or consumers, whether as units of industrial
manpower or as citizens."

According to Professor Laski12

It has been aptly put "Trade unions today are plurist in character and pragmatic in
method; if they are not, they are unlikely to survive the demands made upon them
by so swiftly changing an environment."

11
Price, John: Op. Cit., p.34
12
Laski, H.J. : Op. Cit, p.28.

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CONCLUSION

This review of industrial conflict in Bristol has been designed to record and
examine the experiences of workers in distinct historical periods. The time spans
selected follow the well-documented explosions of industrial conflict in mature
capitalist nations. No claim is made to have chronicled the full story of labour
protest in Bristol.13

The 1926 General Strike, for instance, although mentioned has not been covered
because it cannot be given the attention it deserves within the remit of this study.
Thus, only some of the important events and issues in Bristol's labour history have
been touched upon. But one thing is evident, during the particular time spans
examined antagonistic relations between capital and labour is on the whole as
recognizable in Bristol, as elsewhere. Where this was not so visible, the period
1935-48, some obstacles blocking the mobilization of workers were found,
although whether they provide a sufficient explanation for the suppression of
militancy is unclear, as more research is required.14

None the less, the institutionalization of industrial conflict in the 1930s, the
preclusion of strikes in Britain during the Second World War and to a lesser degree
the contradictory behavior of the CP during this period were powerful restraints on
workers' mobilization.15

13
http://humanities.uwe.ac.uk/bhr/Main/trade_union/12_conclusion.htm
14
http://humanities.uwe.ac.uk/bhr/Main/trade_union/12_conclusion.htm
15
http://humanities.uwe.ac.uk/bhr/Main/trade_union/12_conclusion.htm

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CERTIFICATE

The project entitled, ROLE OF TRADE UNION, Submitted to Faculty of Law of

Dr. Shakuntala Mishra Rehabilitation University, Lucknow. Related to Subject
LABOUR & INDUSTRIAL LAWS, as a part of internal assessment is based on
my original work carried out under the guidance of Dr. GULAB RAI.

The research work has not been submitted elsewhere for award of any degree. The
material borrowed from other sources and incorporated in the thesis has been duly
acknowledged.

DATE:

(SIGNATURE OF STUDENT)

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