3MBA_M2_TRADE UNION.pptx Hindustan Unilever Limited (HUL)

it is of the subject ERM

1. Contents W hy do workers join Trade Union Types of Trade Unions Theories to Trade Union Trade Union Movement in India Problems of Trade Unions Functions of Trade Unions Measures to Strengthen Trade Unions Trade Union Act- Registration of Trade Unions Need for Recognition and Rights Central Trade Unions Act in India.  

2. Trade Union - Introduction Trade unions are organisations. They have their structure, policies, rules, activities, communication system, and leadership. They interact with the environment and strive to respond to its challenges not for mere survival, but to remain effective organisationally.

3. Trade Union - Introduction Managing trade unions is a challenging task. Unlike the business organisations, they must ensure that both the economic and noneconomic interests of the members are satisfied on a continuous basis. Trade Unions have become an integral and powerful factor in the contemporary system of production and distribution of goods and services

4. Trade Union - Definition “a continuing long-term association of employees, formed and maintained for the specific purpose of advancing and protecting the interest of the members in their working relationship.” Dale Yoder “as any combination whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions” Trade Unions Act, 1926

5. Why workers join Trade Union To improve their pay and benefits To improve their working conditions To protect their job security To have a voice in the workplace To fight discrimination To get legal help

6. Functions of Trade Union(PNIP) Protecting terms and conditions of employment of its members; Negotiating and setting terms and conditions of employment and remuneration; Improving the status and working and living conditions of workers; Promoting economic and social interests of its members.

7. Social Functions of Trade Union Welfare activities provided to improve the quality of work life including: organisation of mutual fund cooperative credit societies for providing housing cooperative stores cultural programmes banking and medical facilities training for women in various crafts to help them to supplement their family income.

8. Social Functions of Trade Union Education of members in all aspects of their working life including: improving their civic life awareness in the environment around them enhancement of their knowledge particularly in regard to issues that concern them their statutory and other rights and responsibilities workers’ participation scheme, and procedure for redressing their grievances. Some central union organisations are also assisting the Government in implementing the Workers’ Education Scheme.

9. Social Functions of Trade Union Publication of periodicals, newsletters or magazines for establishing communications with their members. making the latter aware of union policy and stand on certain principal issues and personnel matters concerning members, such as births, deaths, marriages, promotion and achievements.

10. Social Functions of Trade Union Research: practical than academic, concerning problems relating to day-to- day affairs of the union and its activities and union and management relations. Some of the research activities are : collection and analysis of wage data including fringe benefits, and other benefits and services through surveys of comparative practices, data on working conditions and welfare activities; preparation of background notes for court cases and position papers for union officials; collection and analysis of macro data relating to the economy, industry sectors etc.

11. Political Functions of Trade Union unions have to operate not only on social, economic and civic fronts, but also on political front. Union have to influence Government policy decisions in the interest of workers. Legislative support which unions require for realising some of their objectives and achievement of their long-term interests has taken them into the region of politics. Unions not only contribute to the formulation of policies but also see that policies are implemented.

12. Political Functions of Trade Union Whether a union gets directly associated with a political party, or has its own wing, should depend upon circumstances in each country. Considering that such political action/association is legitimate, the Trade Unions Act, 1926, permits the constitution of separate political fund to facilitate political action by a union

13. Political Functions of Trade Union The functions are: ( SEIp -FO) Securing for workers fair wages; Safeguarding security of tenure and improvement in service conditions; enlargement of opportunities for promotion and training; improvement of working and living conditions;

14. Political Functions of Trade Union provision for educational, cultural and recreational facilities promotion of individual and collective welfare; Facilitation of technological advances by broadening the understanding of workers with their industry; offering responsive cooperation in improving levels of production and productivity, discipline, and high standard of quality.

15. Reformist Unions   A ims at preservation of the capitalist economy and the maintenance of competitive production-based employee relations. They like to continue the existing, social, economic and political structures. Trade unions seek to improve the wage level, working conditions, quality of work life by increasing the productivity level and by bargaining for a share in the increased productivity.

16. Types of Reformist Unions   Business Unions   –is built around congenial employee-employer cooperation. They primarily protect the workers interest by participating in collective bargaining with the employer. These are craft conscious rather than class conscious and prefer voluntary arbitration and conciliation. Friendly Unions   – They aim to improve the moral, intellectual, and social lives of workers. These unions focus on health, education, insurance, and benefits. They are more concerned with the overall interests of workers rather than specific trades. Although they emphasize collective bargaining and mutual insurance, they also support cooperative enterprises and profit sharing.

17. Revolutionary Unions   A im at replacing the present system with the new and different institutions based on the ideals that are regarded as preferable. These unions aim at destroying the capitalistic system, abolish private property and installing socialist or communistic systems.

18. Types of Revolutionary Unions   Political Unions  – The unions gain power through political action. These unions resort to political action to protect the workers interest. The unions prefer minimisation of wage differentials. Anarchist Unions  – These unions try to destroy the existing economic system by revolutionary means.

19. Types of Revolutionary Unions   Predatory Unions   –they do not have any ideology. It can adopt any method which will deliver the goods and it sticks at nothing. Its distinguishing characteristic is the ruthless pursuit of the matter in hand by whatever means seem most-appropriate at the time, regardless of ethical and legal codes or the effect upon those outside its own membership. Dependent Unions  – The basic feature is that it is dependent wholly or partly on other types of unions or employees.

20. Craft Unions   S implest form of the trade union also called as horizontal unions. It is usually formed by workers belonging to the same craft, occupation or specialisation no matter in what industry, or trade they are employed. 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.

21. Industrial Unions   If the workers of different categories form a union, it is called ‘industrial union’ or ‘Vertical ’ unions. The logic 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. Moreover, the problems of all the same industry are more or less common. The importance of these unions has been increasing in recent times. The Rashtriya Mill Mazdoor Sangh and Girni Kamgar Union at Bombay belong to this type.

22. Craft Unions  

23. General Unions   If the workers of any industry, any region, any job or occupation form into one union in order to protect the overall interests of the workers, such unions are called general unions. The Jamshedpur Labour Union, whose membership includes workers engaged in different industries and crafts of Jamshedpur, is an example of a general union.

24. Staff Unions   It consist of both craft and industrial unions. The staff unions seek to recruit members like clerks, supervisors,, computerists , operators, managers, technicians, etc. Employees working in the sectors like health and services may also join these unions. Problems of trade Unions

25. Problems of Unions(US-PAPA-MOW)   Uneven Growth: are concentrated in large scale industry sector and in big industrial centres. There is very little trade union activity in small sector, agricultural labour and domestic sector. Small Size: Most of the unions have low membership though the number of unions and union membership are increasing, average membership is inadequate to be effective. Problems of trade Unions

26. Problems of Unions   Weak Financial Position: The average yearly income of unions is very low and inadequate. The subscription rates are low and many members do not pay the subscription in time. Political Leadership: Trade unions are under the leadership and control of political parties and outsiders. Politicians exploit unions and workers for their personal and political gains. Problems of trade Unions

27. Problems of Unions   Multiplicity of Unions: There exist several unions in the same establishment or industry. The existence of rival unions with conflicting ideology is greatly responsible for unhealthy growth of trade union movement in India. In some cases, employers encourage split in unions to undermine their bargaining power. Problem of Recognition: Employers are under no obligation to give recognition to any union. Problems of trade Unions

28. Problems of Unions   Absence of Paid Office-Bearers: Most of the unions do not have paid office-bearers. Union activists working on honorary basis devote only limited time and energy to union activities. Apathy of Members: Majority of workers do not take keen interest in union activities. The attendance at the general meetings of unions is very poor. Opposition from Employers: Many employers try to intimidate or victimize labour leaders, start rival unions and bribe union officials; thus, defeating the very objectives of their formation. Problems of trade Unions

29. Strengthening trade unions The registrations of trade unions are essential to strengthen them without which they cannot be operative in their activities. Appointment of strong bargaining officer to make effective collective bargaining and to have a strong trade union Appointment of strong office bearers or any executive to lead the demands of the workers By establishing a separate registered office, a trade union can have a stronger presence in front of the employer. Educating the benefits of joining the trade union to the workers will increase their strength.

30. Trade Union Act 1926

31. Tade Union Act  Aims to make provisions for the registration of trade unions formed by the workers to protect their legitimate rights while bargaining with the employers.  Also, this act provides the provisions for the trade unions to get a legal and corporate status of the union. The act is applicable to whole of India. It consists of 33 sections divided into 5 chapters.

32. Chapter 1 deals with title, extent and commencement of the act along the important definitions Chapter 2 discusses the various aspects of registration of the trade unions Chapter 3 describes the rights and liabilities of registered trade unions Chapter 4 deals with the powers to make regulations and publication of regulations Chapter 5 deals with the consequences of failure to submit returns, supplying false information regarding trade unions and details of offences and penalties.

33. The trade unions act 1926 has been periodically amended from time to time in 1947, 1960,1962 , 1982 and 2001. Amendment in 2001: With regards to the number of minimum membership to 7, revised membership fees, office bearers tenure to maximum of 3 years.

34. Central trade unions in India AITUC ( All India Trade Union Congress) :It started in 1920,controlled by communist party of India (CPI) and it is the oldest trade union in India at National Level INTUC( Indian National Trade Union Congress): It was started in 1947 and controlled by Indian National Congress. This is the second largest trade union in India. HMS(Hind Mazdoor Sabha) : It was started in 1948 by Praja Socialist Party(PSP) UTUC(United Trade Union Congress): It was started in the year 1949 by revolutionist socialist party(RSP) BMS( Bharatiya Mazdoor Sangh): It is controlled by Bharatiya Jantha Party which was also a big trade union. CITU (Central Indian Trade Union): It was started in the year 1970 controlled by communist party of India (Marxist)

35. Recent Trends in Trade union movement in India (CRPF-D2) Trade Unions have changed their approach from calling for strikes, bandhs, gheraos and violence to being increasingly responsive, matured and realistic in their thinking and action. They have realized the problems of surplus labor and whole heartedly accepting the VRS, golden handshake etc. Their focus has turned towards the adopting newer technology and processes such as TQM, Six Sigma Etc. Independent unionism: The trade unions have slowly started moving away from the political associations since they have realized the futility of political influence.

36. Recent Trends in Trade union movement in India Unions have realized the disadvantage of establishing multiple unions which have weakened their bargaining power hence they are jointly focusing on single union formation. There is a universal trend of declining membership of unions especially in the service sector and their importance is reducing in industrial sector too. This is mainly due to the current generation work forces which are more educated and management support oriented.

37. Registration of Trade union 2 Conditions for Registration: Any 7 or more members are required to register a trade union At least 10 percent of the workmen or 100 whichever is lesser must be employed in the organization or industry Note:  If the Trade Union has been existence for more than 1 year before making the application of registration, a general statement of assets and liabilities has to be submitted

38. Cancellation of Registration  Conditions – Wrong or incomplete application – Certificate Obtained by Fraud – No requisite membership – 2 Months of Notice should be given from the Registrar to the Trade Union mentioning the reasons

39. Office Bearers Tenure  – Maximum 3 years Eligibility : – Age Mandate – Minimum 18 years of age – Note : If he had been imprisoned, in such case the person should cross 5 years after the imprisonment post which he is eligible for an office bearer position – A retired or retrenched employee CANT be considered as OUTSIDER to manage office of trade union. – Does not include Auditor- An officer bearer is NOT PUNISHABLE on grounds criminal conspiracy or not liable for civil suit

40. Number of Office Bearers requirements – Unorganized Sector – 50 percent of the Total Office Bearers must be employed in the industry – Organized Sector – 1/3rd of the Total Office Bearers or 05 (whichever is less) must be employed in the industry

41. Types of Fund General Fund Maximum one fourth of the total gross income per annum of the trade union can be used as general fund Used for the general benefit of workmen such as:  Payment of Salaries/ allowances/expenses of office bearers Administration Expense/ Legal Proceedings Compensation of members (arising out of trade disputes) Allowances to members/ dependents (old age/ sickness/accidents/ unemployment/ funeral expenses) Educational/ Social and Religious Benefits

42. Types of Fund Political Fund Used for political purposes Expenses during Election Distribution of Literature Holding political meetings Note : No member can be forced to make contributions to the political fund

43. Change of Office of the Trade Union Within 14 days of change of the address, the Trade Union should inform the Registrar

44. Change of Name of Trade Union – Minimum 2/3 of the total trade union members should agree – Notice in writing should be given to secretary with at least 7 members sign

45. Amalgamation of Trade Union Any two or more trade union can be amalgamated/ merged together based on: • Minimum 50 percent of each trade union members should vote And • Minimum 60 percent of the votes should be in favor of the amalgamation

46. Returns

47. Inspection of Books • Done at the trade union registered office OR • At a place specified by the Registrar ( This place should not be more than 10 Miles from the office of the trade union)

48. Dissolution of Trade Union