STUDY MATERIAL – BBA

INDUSTRIAL RELATIONS

TRADE UNIONISM
Concept
The employees’ perception of Trade Unions as something undesirable and unwanted, about
four to five decades ago, has lost its relevance and now Trade Unions are accepted as an
integral part of Industrial Relations system. As defined by Sidney & Beatrice Webb – “It is a
continuous association of wage earners for the purpose of maintaining & improving the
conditions of their working lives. Basically Trade Union got evolved as an agent of workers and
working class to protect the workers interest.
However, as per the section 2(h) of The Trade Union Act 1926 of India – “A Trade Union is
any combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relation between workmen and employers, or between workmen and workman,
between employers and employees, or for improving restrictive conditions on the conduct of any
trade or business, and include any federation of two or more trade unions”.
unions”.
Hence it can be said that – A Trade Union is (i) An association either of employees or
employers or of independent workers, (ii) It is relatively permanent and not temporary or a
casual, (iii) It is an association of workers engaged in securing economic
economic benefits of members,
(iv) Character of Trade Union is constantly changing and (v) Its origin and growth has been
influenced by a number of ideologies.
Analyzing the above factors we can say that Trade unions are voluntary associations. Here
the workers may ay or may not join the trade unions. If still a worker joins a trade union, then
question arises ‘Why should a worker join a particular organization?’ The reason may be the
following.
a) Job security: employees need to have a sense of job security and want tto be sure that
management will not make unfair and arbitrary decision about their employment. They
look unions to ensure that their jobs are protected.
b) Wage and Benefits: employees work for their lively hood i.e. bread and butter. They
think that the union with its united strength will ensure fair wage at par with those of the
other workers in the community.
c) Working conditions: every employee wants to work in a healthy and safe environment.
There are some statutory provisions made for this. Employees still feel more secured
knowing that trade Union is directly involved in providing all such safety and health
related issues.
d) Fair and Just supervision: the days are long gone when managers could rule over
employees. This Trade Union has changed the scenario from
from autocratic leadership /
management to Participatory management. Now the manager treats their employees as
human resources. In case of ill treatment the employee can file a written grievance
against the employer.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
e) Power: employees individually feel powerl
powerless
ess or voice less, in bringing any change in the
organization. But it is the union, which provides them a powerful, collective voice to
communicate to the management regarding their dissatisfaction and frustration.
f) Need to Belong: man is a social animal. This Trade Union brings people together, for
organizing different functions, social events etc.
Analyzing we can find the characteristics of trade unions as a voluntary association, and the
worker has a choice in joining a Trade Union. Such association could co be temporary or
permanent but the basic objective is to improve the conditions of the working life. Besides this
the hidden objective of Trade unions is to foster better relations between these employer and
employee. However A Trade Union has also choi choice
ce to affiliate or not to affiliate with the apex
body of Trade Union.
Functions of Trade Unions:
The functions served by the Trade Unions can be discussed under three categories as
discussed below.
1. Militant Functions: the chief purpose of the Trade union is to secure better conditions
of work and employment. The union also thinks fit for getting a share in productivity gain.
When the unions fail to accomplish this ends by the method of collective bargaining and
negotiation,
tion, they adopt agitation methods in the form of strike, boy-
boy-cott, gherou etc.
2. Fraternal Functions or extra mural: this function includes providing financial and non
financial assistance to workers during the periods of strikes and lock-outs,
lock extension of
medical facilities during sickness, provision of education, recreation, housing facilities
etc.
3. Social functions: This function includes carrying out social service activities,
discharging social responsibilities through various sections of the society llike educating
the members.
However, the functions as listed by National Commission on Labour (NCL) is described as
below.
i. To secure fair wages for workers.
ii. To safeguard security of tenure and improve conditions of service.
iii. To enlarge opportunities for promotion
prom and training.
iv. To improve working and living conditions.
v. To provide for educational, cultural and recreational facilities.
vi. To co-operate
operate and facilitate technological advances.
vii. To promote identity of interests of workers.
viii. To offer responsive cooperatio
cooperation n in improving levels of production etc.
ix. To promote individual and collective welfare.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
Classification of Trade Unions
The Trade Unions can be classified on the basis of membership and Structure. Out of such
classification five such types of unions have bee
been recognized.
1. Craft Unions: In an organization, workers employed in a particular craft or trade or in a
single or two or three related trades, crafts or occupations can form a craft union. It is a
horizontal type Trade union in the sense that its members b
belong
elong to one craft. Examples are
the Pilots, Journalists, Teachers, Mechanics, Welders, Electrician, and Carpenter.
2. Staff Unions: These types of Unions are from the non-manual
non manual sectors. For example the
clerks, supervisors, computer operators.
3. Industrial Unions: These type of union is composed primarily of semiskilled Blue collar
employees in the manufacturing industries. The industrial union is often refer to vertical
union. It is vertical in the sense that it includes all the workers in a particular company
comp or
industry regardless of their occupation, craft, skill or grade exp. Cotton / textile industry, Jute
industry.
4. General Unions / Federations: These types of Trade Unions cover various industries and
laborers with different skills.
5. Employees Associations:
ons: The employees association is composed of white collar or
professional employees such as teacher, police officer, technical employees. Exp: All India
Teachers Association, Federation of Central University Teachers Association. (FEDCUTA)

TRADE UNION LEGISLATION

THE TRADE UNIONS ACT, 1926
The origin of the passing of Trade Union Act in India was the historic Buckingham Mills Case
of 1920 in which the Madras High Court granted an interim injunction against the Strike
Committee of Madras Labour Union for forbidding
bidding them to induce certain workers to break their
contract of employment by refusing to return to work. Trade Union leaders found that they were
liable to prosecution and imprisonment for bonafide union activities and it was felt that some
legislation for the protection of trade unionism was necessary. In March, 1921, Mr.N.M.Joshi,
the then General Secretary of the all India Trade Union Congress successfully moved a
resolution in the Central Legislative Assembly that Government should introduce legislat
legislation for
registration and protection of trade unions. But opposition from employers to adoption of such
measure was so great that it was only in 1926 that Trade Union Act was passed.
Object of the Act
The object of passing the Act was to make necessary provisions
provisions in regard to the registration
of Trade Unions and to define the law relating to registered Trade Unions. The Royal
Commission on Labour in India observed that the object is to give trade unions the necessary
protection from civil suits and criminal laws relating to conspiracy in order to enable them to
carry on their legitimate activities.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
The Act extends to the whole of India including the state of Jammu and Kashmir. It came
into force on the first day of June, 1927.
Trade Dispute
A trade dispute means
ans any dispute:
(a) between employers and workmen
(b) between workmen and workmen
(c) between employers and employers
Any such dispute as mentioned to be a Trade Dispute must also be associated with –
(a) the employment
(b) non-employment
employment
(c) the terms of employment
(d) the conditions of labour of any person
The definition of Trade Dispute in this Act is almost similar to the definition of Industrial
Dispute given in the Industrial Disputes Act, 1947. In Trade Dispute, it is necessary that there
must be a demand from one partyparty and refusal to accept those demands by other party. There
can be real and substantial between parties to such dispute.
Trade Union
The term trade union can be expressed both in an ordinary sense and in broad sense. In
ordinary sense it is a combination of workmen and in a broader sense it includes combination of
employers and federation of two or more such combinations. The trade union means:
Any combination whether temporary or permanent formed for the purpose of regarding
relations between –
(a) workmen and employers
(b) workmen and workmen
(c) employers and employers
The above combinations put restrictions on the conduct of any trade or business but certain
agreements given below have been excluded from the scope of the term trade union.
(a) Agreement between partne
partners in a business
(b) Agreement in consideration of the sale of the goodwill of a business or of instruction in
any profession, trade or handicraft.
REGISTRATION OF TRADE UNIONS
Appointment of Registrars (Section 3)
As regards registration of a trade union, the Act empowers the appropriate Government to
appoint a person to be the Registrar of Trade Union for each state. The appropriate
Government may appoint as many additional and deputy registrars trade unions as it thinks fit.
They shall work under the superintendence
superintendence and direction of the Registrar. The appropriate
Government shall specify and define the local limits within which any additional and Deputy
Registrar shall exercise and discharge his powers and functions.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
Mode of Registration (Section 4)
A Trade Union
nion can be registered only under the Trade Union Act., 1926. The Societies
Registration Act, 1860, the Co
Co-operative
operative Societies Act, 1012, and the Companies Act, 1956,
shall not apply to any registered Trade Union, and the registration of a Trade Union under
unde any
such Act shall be void (Section 14)
Any seven or more members of a Trade Union may apply for registration of the Trade Union.
All the members applying for registration must subscribe their names to the rules of the Trade
Union and also comply with the
the provisions of the Act relating to registration.
The Trade Unions (Amendment) Act, 2001 - Provided that no Trade Union of workmen
shall be registered unless at least ten per cent or one hundred of the workmen, whichever is
less, engaged or employed in the establishment or industry with which it is connected are
the members of such Trade Union on the date of making of application for registration
Application for Registration (Section 5)
Every application for registration of a Trade Union shall be made to Registrar.
Re It shall be
accompanied by a copy of the rules containing matters as given in Section 6. It also contains a
statement of the following particulars.
(a) the names, occupations and addresses of members making the
application
(b) the name of the Trade Union and the address of its head office; and
(c) the titles, names, ages, addresses and occupations of the office-bearers
office of
the Trade Union
Where a Trade Union has been in existence for more than one year before its registration, a
general statement of the assets and liabilities of the Trade Union in the prescribed form must be
submitted along with the application.
Rules of Trade Union – To provide the following (Section 6)
(a) Name of the Trade Union
(b) Objects
(c) Purposes for which the general funds shall be applicable
(d) Maintenance of a list of its members – facilities for its inspection
(e) Admission of the number of honorary or temporary members
(ee) (Payment of subscription – not less than 25 paise per month per member
The Trade Unions (Amendment) Act, 2001 - ''(ee) the payment pa of a
minimum subscription by members of the Trade Union which shall not be less
than-
(i) one rupee per annum for rural workers;
(ii) three rupees per annum for workers in other unorganised sectors; and
(iii) twelve rupees per annum for workers in any
any other case;'';
(f) Conditions under which members can enjoy the benefits and under which

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
fines may be imposed on them
(h) Manner in which rules may be amended
(i) Manner of appointment and removal of the members
(j) Safe custody of the funds, an annual audit, facilities for inspective of the
accounts
(k) Manner in which Trade Union may be dissolved
Registration (Section 7)
The Registrar will register the Trade Union, if he is satisfied that the trade union has
complied with all the requirements of this AAct
ct in regard to registration. The Registrar shall
register; the Trade Union by making necessary entries in the register, to be maintained in such
form as may be prescribed. The particulars relating to the Trade Union contained in the
statement accompanying the application for registration shall be entered in the register. Where
the Registrar takes no action on an application for more than three months, writ under Article
226 can be issued commanding the Registrar to deal with the application.
Certificate of Registration (Section 9)
The Registrar, on registering a Trade Union, shall issue a certificate of registration which
shall be conclusive evidence that the Trade Union has been duly registered under the Act. It is
obligatory on the part of the Registrar to
to register a Trade Union provided the provisions of the
Act are complied with. He is not entitled to question whether the Union is lawful or unlawful.
Advantages of Registration
Although it is not legally necessary for a Union to be registered, registratio
registration does provide it
with certain advantages. Some of the advantages gained by registration as given in Section 13
are as under:
1. A Trade Union becomes a body corporate by name under which it is
registered and it a legal entity distinct from its members of whi which it is
composed.
2. It gives perpetual succession and common seal.
3. It can acquire and hold both movable and immovable property.
4. It can enter into a contract.
5. It can sue and be sued in its registered name.

Cancellation of Registration (Section 10)

Power to withdraw or cancel registration of a Trade Union is given to the Registrar. The
Registrar can exercise the power in the following case, namely:
1. On the application of the Trade Union for such a course
2. Where the certificate of registration has been obtained by fraud or mistake
3. Where the Trade Union ceased to exist
4. Where the Trade Union has willfully and after notice from the Registrar allowed
any rule to continue in force which is inconsistent with the provision of this Act

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
5. Where the Trade Union has willfully and after notice from the registrar violated
any provisions of this Act
6. Where the primary objects of the Union are no longer statutory objects
7. Where the Union desires to have its certificate of registration withdrawn or
cancelled, the Registrar on receiving
receiving much application, must, before granting the
application satisfy himself that the withdrawal or cancellation was approved by a
general meeting of the Trade Union or if it was not so approved, it had the
approval of the majority of the members of the Trade
Trade Union.
The Registrar is not competent to cancel registration of a Trade Union without giving
requisite notice and giving an opportunity to the Trade Union to show cause against the
proposed action.
The Registrar must be given not less than two months, previous
previous notice in writing giving the
grounds on which it is proposed to withdraw or cancel the certificate of registration. No such
notice is required where such application is made by the Trade Union itself.
Appeal (Section 11)
Section 11 of the Act gives a limited right of appeal from the decisions of the Registrar. Any
person who is aggrieved by the refusal of the Registrar to register a Trade Union or the
withdrawal or cancellation of certificate of registration is given the right of appeal. The appeal
must be within 60 days of the date of which Registrar passed the order against which appeal is
made.
The Objects on which General Funds may be spent (Section 15)
(a) Salaries, allowances and expenses to office bearers
(b) Expenses for administration and audit of the accounts of funds of the union
(c) Towards Prosecution or defence of any legal proceeding to which the union or its
member is a party
(d) The conduct of trade disputes on behalf of the union or its members
(e) Compensation for the members at the time of dispute.
RECOGNITION
ECOGNITION OF TRADE UNION
In practice, the management allows the recognized Trade Union only for negotiation and
collective bargaining. So Recognition of trade union serves as backbone of collective
bargaining. However, a Trade Union is recognized only aft after
er it fulfills the following conditions:
a. It is a registered Trade Union and has complied with all provisions of Trade Union act.
b. In case of more than one union in existence the union claiming its recognition has been
functioning for at least one year after
afte registration.
c. All the ordinary members are workers employed in the same industry.
d. A Trade Union once recognized cannot make any change in its position for a period of
two years.
On satisfaction of above conditions a Trade Union gets recognition from its employer.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
RIGHTS OF RECOGNIZED TRADE UNION
A trade union recognized by the management enjoys the following rights.
a. To negotiate with employers in respect of matters connected with employment
conditions.
b. To collect membership fees from the members on the premises of the industry.
c. To nominate its member – representatives on the grievance committee constituted in an
establishment.
d. To nominate its representatives on the Joint Management Councils.
PROBLEMS FACED BY TRADE UNIONS
Many factors are responsible foforr the limited growth and success of trade unions in India.
Some of the important measures are discussed as below.
a. In our Industrial Relations System, employees are not obliged to recognize a Union
b. In spite of changes in country’s industrial scenarios, empl employers’
oyers’ attitude towards
recognition has not changed.
c. Employers many times have refused to recognize the Trade Union.

MEASURES TO STRENGTHEN THE TRADE UNION

A. Maintaining unity: due to multiplicity of unions, political rivalries, disunity among the ranks
of workers etc have been responsible for lack of strength of Trade Unions in India. Unity in
Trade Unions can be maintained in different ways: -allall workers should join hands to form
f a
single Trade Union to represent their demands. All unions with different political affiliations
should have one policy, one objective.
B. Free from political influence: at present Trade Union leadership is in the hands of
politicians who have more concern
concern for their political ideologies than for the interests of
working class. So the union leaders should be full time paid officers of the unions having
such qualities like – literate - organizing capacity - hardworking - cool in temper and
patience. Leadership
hip skills can be developed through different training programs.
C. Workers education: the workers need to be made understand fully their duties,
responsibilities and their rights and privileges. The workers need to be taught “ First deserve
then Desire”
D. Adequacy of funds: on account of poor financial resources the workers movement/ strikes
did not prolong and ended in failure. Therefore the maintenance of strike fund by a union is
necessary. This strike fund would be used to help workers during strikes as – “strike pay”.
E. Welfare Activities for Workers: the Trade Unions should start the different activities such
as the provisions of schools for children, crèches at workplace, and night schools for adults,
reading rooms, libraries, cooperatives, gymnasiums etc. it is gratifying that various labour
organizations are doing some works in this regard.
However the National Commission on Labour Recommended the following factors which
should be taken care of for the growth and success of trade unions

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)

 STUDY MATERIAL – BBA
INDUSTRIAL RELATIONS
a. It should be desirableble to make recognition compulsory under a central law in all
undertakings employing less or more workers. A TU seeking recognition as a bargaining
agent from individual employers should have a membership of at least 30 % of the workers.
The minimum should be 25 % for an industry in a local area.
b. There should be secret ballot open to all employees to decide representative character of a
union. It would be done also by checking membership records.
c. The recognized union should be statutorily given certain excl
exclusive
usive rights and facilities – for
sole representation, entering into collective agreement, collection of membership
subscription etc.
d. The minority union should be allowed only the right to represent cases of dismissal and
discharge of their members before the labor court.
The above point about secret ballot for verifying membership was opposed by INTUC. The
Industrial Relations bill 1980 suggested adopting both – secret ballot to verify membership.
Hence NLC adopted either by election by secret ballot or ve
verification
rification of membership.

Dr. Amaresh C Nayak, Asso. Prof. (HR & OB)