Legal Control & Protection of Trade Unions

Dr. S T Naidu,
MBA, PhD(Man) M.A., LL.M,Ph.D(Law).

Associate Professor of Law,

School of Law,
Vel Tech University,
Avadi-Chennai-62
drsadem@veltech.edu.in
Topics would be covered:
 Evolution
 Definitions
 What unions do?
 Functions
 Role of trade unions
 Objectives of Trade Unions
 Structure of Trade Unions
 Problems of Trade Unions
 Criticism on Trade Unions
 Suggestions for Healthy Unions
Evolution:
 Industrial development in India on western lines,
however commenced from the middle of the 19th
century. The first organized Trade Union in India named
as the Madras Labor Union was formed in the year
1918. Since then a large number of unions sprang up in
almost all the industrial centers of the country. Similarly,
entrepreneurs also formed their organizations to protect
their interests.
Defination:
“Any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relation
between workman and employers or between workmen and
workmen between employers and employers, or for imposing
restrictive conditions on the conduct of any trade or business,
and include any federation of two or more trade unions”

 According to Dale Yoder, S.D. Punekar and G. D. H. Cole

Trade Union means a combination formed for the purpose of
regulating the relations not only between workmen and
employers but also between workmen and workmen or
between employers and employers.
Introduction Labour Laws

 The labour laws derive their origin, authority

and strength from the provisions of the
Constitution of India. The relevance of the
dignity of human labour and the need for
protecting and safeguarding the interest of
labour as human beings has been enshrined in

 Chapter-III (Articles 16, 19, 23 & 24) and

 Chapter IV (Articles 39, 41, 42, 43, 43A) of the
Constitution of India keeping in line with
Fundamental Rights and Directive Principles
of State Policy.
 Chapter III - Fundamental Rights
 Articles16:-
 Article 19 :-
 Article 23 :-
 Article 24 :-
Introduction to labour laws:
 Chapter III - Fundamental Rights
 Articles16:- Equality of opportunity in matters of

public employment.
 Article 19 :- To form Association and Union.
 Article 23 :- Prohibition of traffic in Human beings

and Forced Labour.

 Article 24 :- Prohibition of Employment of children

in factories.
 Chapter IV Directive Principles of State
Policy:
 Articles 39, 41, 42, 43, 43a of the Constitution of
India keeping in line with Fundamental Rights
and Directive Principles of State Policy.
 Articles 39:
 Articles 41:
 Articles 42:
 Articles 43:
 Articles 43a:
 Chapter IV: Directive Principles of State Policy:
 Articles 39: All the citizens irrespective of their sex whether men
or women shall equally have the right to adequate means of
livelihood.
 Articles 41: Directs the state to secure the right to work, education
and public assistance in certain cases such as unemployment, old
age, sickness and disablement.
 Articles 42: seeks to ensure humane work conditions and provide
for maternity relief.
 Articles 43: The state shall endeavor to secure, by suitable
legislation to all workers, agricultural, industrial or otherwise,
work, living wage, conditions of work, a decent standard of life
and full enjoyment of leisure and social and cultural opportunities.
 Articles 43a: Participation of Workers in Management of
Industries.
Trade union Act 1926:
 Trade Unions Act, 1926 provides for the registration of the
Trade Unions with the Registrars of Trade Unions of their
territory. Any seven or more members of a trade union by
submitting their names to the registrar of trade unions
 Also fulfill with the provisions of the Act with respect to
registration may apply for the registration of the Trade Union
under the Trade Unions Act. The Act gives protection to
registered trade unions in certain cases against civil and
criminal action.
What unions do?
 The main service a union provides for its members is
Negotiation and Representation. There are other benefits get
from being a members of trade unions.
1. Negotiation
2. Representation
3. Information and Advice.
4. Member Services.
1. Negotiations:
 Negotiation is where union representatives discuss with
management issues which affect people working in an
organization.
 The union finds out the members' views and convey these
views to management. There may be a difference of opinion
between management and union members.
 'Negotiation' is about finding a solution to these differences.
This process is also known as 'collective bargaining'. 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.
2. Representation:
 Trade unions also represent individual members when they
have a problem at work. If an employee feels they are being
unfairly treated, he or she can ask the union representative to
help sort out the difficulty with the manager or employer.
 If the problem cannot be resolved amicably, the matter may
go to an industrial tribunal. Industrial tribunals make sure that
employment laws are properly stick on to by employees and
employers.
 People can ask their union to represent them at industrial
tribunals. Most cases that go to industrial tribunals are about
pay, unfair dismissal, redundancy or discrimination at work.
3. Information and advice:
 Unions have a wealth of information which is useful at work.
They can advise on a range of issues like how many holidays
you are entitled to each year, how much pay you will get if
you go on maternity leave, and how you can obtain training at
work.
4. Member services:
 During the last ten years, trade unions have increased the
range of services they offer their members and it includes
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.
Unions advises on different areas:
 Legal assistance
 Financial discounts
 Welfare benefits
Classification of Trade Union Functions :
 The functions of trade union categorized into four
1. Militant
2. Fraternal
3. Political
4. Auxiliary
• Communication
• Welfare activities
• Education
• Research
1. Militant: The aim of unions to bring 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 work-slow,
strike, boycott, gherao, etc.
2. Fraternal Functions: Another set of activities performed
by trade unions aims at representation help to its members
in times of need, and improving their efficiency. Trade
unions try to foster a spirit of cooperation and promote
friendly relations and diffuse education and culture among
their members
Functions of Trade Unions:
 To improve the economic set of employees by securing for
them better wages.
 To secure better working conditions for the workers.
 To secure bonus for the employees from the profit of the
concern,
 To secure welfare of employees through group schemes
which give benefit to every employee.
 To protect the interests of employees by taking active
participation in the management.
 To secure social welfare of the employees.
 To secure organizational stability, growth, and leadership.
Objective of T U in Industrial Disuputes:
 'Collective bargaining' takes place quietly and agreements
are quickly reached by the union and the employer.
Occasionally disagreements do occur and the two sides
cannot agree.
 Trade unions generally consider the right to strike as one of
their basic rights. Trade unions, no doubt, consider strike as
the most powerful weapon in their armoury, they also resort
to some other forms of industrial action to pressurise the
employers and the government for the fulfilment of their
objectives.
 A strike is only called as a last resort. strikes are often in
the news but are rare. Both sides have a lot to lose.
Employers lose income because of interruptions to
production or services.
Types of Trade Unions:
 The types of trade unions in India varies from organization to
organization. However, the types can be classified into four as
under:
 1. Craft Unions:
 2. General Unions:
 3. Industrial Unions:
 4. Federation and Confederation:
 1. Craft Unions: These unions are called as – ‘horizontal
unions’. The basic logic behind the formation of such unions
is that the workers belonging to the same craft do face
similar problems-mostly non-managerial personnel form
such unions. Examples of such unions are Drivers’
Associations, Signalling Staff Union in Indian Railways, etc.
 2. General Unions: If the workers of any industry, any
region and of any job or occupation form into one union in
order to protect the overall interests of the workers, such
unions are called general unions.
 3. Industrial Unions: These unions are also called “vertical”
unions. The logic behind the formation of these unions is that
workers of the same industry have the common bend and they
are governed by same rules and regulations, and are
administered by same management.
 4. Federation and Confederation: Industrial unions, either of
same industry or of the different industry may form into an
association in order to improve trade union unity/strength.
Such unions of unions are called Federations. During the
critical situations, unions/federations in different industries
may resort to concerted action without losing their
individuality.
Structure of trade unions:
 Plant level Unions:
 Local Level federations:
 Regional level federations.
 National federations.
Important trade organizations:
 INTUC: The Congress Party and the top congress leaders
formed the INTUC like Nehru and Patel were associated
with it. Every union affiliated to INTUC has to submit its
dispute to arbitration after exhausting other means of
settlement of disputes. Founder: V Patel
 AITUC: This union serves as the labor forum of Communist
Party of India at present. It is considered as the second
largest union in India. Founder: L L Rai, Manohar Joshi
 The Hind Mazdoor Sabha (HMS). It was formed in
Calcutta by the socialists who neither approve INTUC nor
AITUC. The HMS was organized with a view to keeping its
members free from any political or other outside
interference.WFTU. Founder: Maneben Khera. Ashok
Mehata
Important trade
organizations(contd):
 The United Trade Union Congress (UTUC). Those persons
who were rebel socialist formed it. It functions mainly in
Kerala and West Bengal.
 Centre for Indian Trade Unions (CITU). The Marxists
separated from the AITUC in May 1970 and formed the
CITU.
 In addition to the above, there are four other central trade
union organizations. They are:
1. Bhartiya Mazdoor Sangh (BMS)
2. National Labor Organization (NLO)
3. National Front of Indian Trade Unions (NFITU)
4. Trade Union Congress Committee
 NIRF,AIRF.INRWF
Motivation to join Unions:
 Greater Bargaining Power
 Makes their voice heard
 Minimize discrimination
 Security
 Protection
 Social pressure
 Compulsion
 Political beliefs
 Solidarity
 Tradition
 Pay and conditions
 Communication
 Health and safety
Motivation to join Unions:
 Greater Bargaining Power. The individual employee
possesses very little bargaining power as compared to that of
his employer. If he is not satisfied with the wage and other
conditions of employment, he can leave the job.
 Make their Voices Heard. The desire for self-expression is a
fundamental human drive for most people. Don’t you agree
with that? All of us wish to share our feelings, ideas and
opinions with others. Similarly the workers also go to the
management to listen to them.
Motivation to join Unions(contd):
 Minimize Discrimination. The decisions regarding pay,
work, transfer, promotion, etc. are highly subjective in
nature. Similarly the personal relationships existing between
the supervisor and each of his subordinates may influence the
management.
 Sense of Security. The employees may join the unions
because of their belief that it is an effective way to secure
adequate protection from various types of hazards and
income insecurity such as accident, injury, illness,
unemployment, etc.
Motivation to join Unions (contd):
 Sense of Participation. The employees can participate in
management of matters affecting their interests only if they
join trade unions. They can influence the decisions that are
taken as a result of collective bargaining between the union
and the management.
 Sense of Belongingness. Many employees join a union
because their co-workers are the members of the union. At
times, an employee joins a union under group pressure; if he
does not, he often has a very difficult time at work. On the
other hand, those who are members of a union feel that they
gain respect in the eyes of their fellow workers.
Problems and Weakness of TU:
 Uneven Growth: The trade unionism in India is
characterized by uneven growth, both industry-wise and
area-wise. Trade unions are popular in big industries and the
degree of unionization varies widely from industry to
industry. Besides, trade union activities are concentrated in a
few states and in bigger industrial centers mainly due to
concentration of industries in those places.
 Limited Membership: The number of trade unions in India
has increased considerably. But this has been followed by the
declining membership per union.
Problems and Weakness of TU (contd):
 Financial Problems: The financial position of the trade
unions is weak because their average yearly income is very
low and inadequate. The subscription rates are very low.
Under conditions of multiplicity of unions, a union interested
in increasing its membership figures keeps the subscription
rate unduly low. As a result, the funds with the unions are
inadequate and they cannot undertake welfare programmes
for their members.
Problems and Weakness of TU(contd):
 Multiplicity of Unions: There exist several trade unions in the
same establishment. The multiplicity of unions is the result of
outside leadership and labour laws. The law permits and gives
sanctity to small unions. Any seven persons can form a union
under the Trade Unions Act, 1926. go to conciliation and even
bargain with employers.
 Outside Leadership: Trade unions in India are led largely by
people who themselves are not workers. These outsiders are
politicians, intellectuals and professionals having no
experience of work in industry. Outsiders continue to dominate
the trade unions to advance their personal interests.
Criticism of trade unions:
 Lack of education makes the workers narrow minded, thus,
anything, which does not result in an immediate reward,
becomes unattractive to them. This attitude is responsible for
many strikes and lock-outs in industrial concerns.
 Trade unions may not welcome rationalization and improved
methods of production for the fear that some of the workers
will be put out of work. Therefore, they resort to go slow
policy that retards industrial progress.
 When labor unions strike because of illogical grounds,
incalculable losses occur to producers, community and the
nation.
Suggestions for Healthy Unions:
• One Union Per Industry
• Paid Union Officials
• Development of Internal Leadership
• Recognition of Trade Unions
• Improved Financial condition
• Away from Political Influence
• Education and Training to Workers
• Change in the Employer’s View –
• Avoid Unnecessary Interference
• Formation of a Labour Party
 `
Thank you
