Trade Union.ppt

trade union theory

1. Trade Union

2. Tradeunionsareassociationsofworkersororganizationformedtogetherby
labor,workersoremployeestoachievetheirdemandsforbetterconditions
attheirworkatmosphere.
•Formed to protect and promote the interests of their members
•Primary function is to protect the interests of workers against discrimination
and unfair labor practices
Meaning Trade union

3. •Representation (Workers’ Interests)
•Negotiation (Collective Bargaining)
•Voice in decisions (Lay off, Retrenchment) affecting workers
•Member Service (Education, Training, Welfare, Discounts, Loans)
Objectives

4. Definition
-TradeUnionisanorganizationofworkerswhohavebandedtogetherto
achievecommongoalssuchasprotectingtheintegrityofitstrade,achieving
higherpay,increasingthenumberofemployeesanemployerhires,andbetter
workingconditions.
-Agroupofemployeesinaparticularsector,whoseaimistonegotiatewith
employeesoverpay,jobsecurity,workinghours,etc.usingthecollective
powerofthemembers.
-Themostcommonpurposeoftheseassociationsorunionsis"maintainingor
improvingtheconditionsoftheiremployment".
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5. why do workers join unions
GreaterBargainingPower
Theindividualemployeepossessesverylittlebargainingpoweras
comparedtothatofhisemployer.Ifheisnotsatisfiedwiththewageandother
conditionsofemployment,hecanleavethejob
MinimizeDiscrimination
Hedecisionsregardingpay,work,transfer,promotion,etc.arehighly
subjectiveinnature.Thepersonalrelationshipsexistingbetweenthe
supervisorandeachofhissubordinatesmayinfluencethemanagement.
SenseofSecurity
Theemployeesmayjointheunionsbecauseoftheirbeliefthatitisan
effectivewaytosecureadequateprotectionfromvarioustypesofhazardsand
incomeinsecuritysuchasaccident,injury,illness,unemployment,etc.

6. SenseofParticipation
Theemployeescanparticipateinmanagementofmattersaffectingtheir
interestsonlyiftheyjointradeunions.Theycaninfluencethedecisionsthatare
takenasaresultofcollectivebargainingbetweentheunionandthe
management.
SenseofBelongingness
Thosewhoaremembersofaunionfeelthattheygainrespectintheeyesof
theirfellowworkers.Theycanalsodiscusstheirproblemwith’thetradeunion
leaders.
why do workers join
unions(Cont.)

7. Platformforself-expression
Thedesireforself-expressionisafundamentalhumandriveformostpeople.the
workersalsowantthemanagementtolistentothem.Atradeunionprovidessucha
forumwherethefeelings,ideasandopinionsoftheworkerscouldbediscussed.
Bettermentofrelationships
Anotherreasonforemployeesjoiningunionsisthatemployeesfeelthatunionscan
fulfilltheimportantneedforadequatemachineryforpropermaintenanceofemployer-
employeerelations.Unionshelpinbettermentofindustrialrelationsamong
managementandworkersbysolvingtheproblemspeacefully.
why do workers join unions (Cont.)

8. Classificationbasedonideology
a.RevolutionaryUnions:Believeindestructionofexistingsocial/economic
orderandcreationofanewone.Theywantshiftinpowerandauthorityand
useofforce-LeftUnions.
b.ReformistorWelfareUnions:Workforchangesandreformswithin
existingsocio-politicalframeworkofsociety-EuropeanModel.
c.UpliftUnions:Advocateextensivereformswellbeyondtheareaofworking
conditioni.e.,changeintaxationsystem,eliminationofpovertyetc.
Classification of Trade Unions

9. Anothercommonexplanationofunionsbasedontradesorcraftsisthat
betweensocalledblue-collarworkersandwhite-collarworkers.
Unionsrepresentingworkersemployedontheproductionfloor,or
outdoortradessuchasinconstructionwork,arecalledblue-collarunions.
Similarly,thoseemployeesinshopsandofficesandwhoarenotin
managementgradesandperformclericalandalliedfunctionsarecalledwhite-
collarworkers.
Inaddition,tradeunionsmaybecategorisedonthebasisoftheindustry
inwhichtheyareemployed.Examplesoftheseareworkersengagedin
agricultureofforestry:henceagriculturallabourunionsorforestworker
unions.
Classification of Trade Unions (Cont.)

10. Classificationbasedonagreement
a.ClosedShop:Wheremanagementandunionagreethattheunionwouldhave
soleresponsibilityandauthorityfortherecruitmentofworkers,itiscalleda
ClosedShopagreement.Theworkerjoinstheuniontobecomeanemployeeof
theshop.
b.UnionShop:Wherethereisanagreementthatallnewrecruitsmustjointhe
unionwithinafixedperiodafteremploymentitiscalledaunionshop.
Classification of Trade Unions
(Cont.)

11. Classificationbasedonagreement(Cont.)
c.PreferentialShop:WhenaUnionmemberisgivenpreferenceinfillinga
vacancy,suchanagreementiscalledPreferentialShop.
d.MaintenanceShop:Inthistypeofarrangementnocompulsorymembershipin
theunionbeforeorafterrecruitmentexists.However,iftheemployeechoosesto
becomeamemberafterrecruitment,hismembershipremainscompulsoryright
throughouthistenureofemploymentwiththatparticularemployer.Thisiscalled
amaintenanceofmembershipshopormaintenanceshop.
Classification of Trade Unions (Cont.)

12. Classificationbasedonagreement(Cont.)
e.AgencyShop:Intermsoftheagreementbetweenmanagementandthe
unionanonunionmemberhastopaytheunionasumequivalenttoa
member’ssubscriptioninordertocontinueemploymentwiththeemployer.
Thisiscalledanagencyshop.
f.OpenShop:Membershipinaunionisinnowaycompulsoryorcompulsory
eitherbeforeorafterrecruitment.Insuchorganisations,sometimesthereis
nounionatall.Thisisleastdesirableformforunions.
Classification of Trade Unions (Cont.)

13. Theories of Trade Unions

14. Theories of Trade Unions (continued…)

15. Theories of Trade Unions (continued…)

16. Theories of Trade Unions (continued…)

17. Theories of Trade Unions (continued…)

18. Theories of Trade Unions (continued…)

19. Theories of Trade Unions (continued…)

20. Theories of Trade Unions (continued…)

21. Theories of Trade Unions (continued…)

22. Tradeunionsperformanumberoffunctionsinordertoachieve
theobjectives.Thesefunctionscanbebroadlyclassifiedintothree
categories:
1. Militant(revolutionary) Functions
2. Fraternal Functions
3. Social Functions
4. Political functions
Functions of trade unions

23. Whentheunionsfailtoaccomplishtheiraimsbythemethodof
collectivebargainingandnegotiations,theyadoptanapproachandputupafight
withthemanagementintheformofgo-slowtactics,strike,boycott,gherao’s,etc.
Hence,thesefunctionsofthetradeunionsareknownasmilitantorfighting
functions.Thus,themilitantfunctionsoftradeunionscanbesummedupas:
•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
Militant Functions

24. Theytakeupwelfaremeasuresforimprovingthemoraleofworkersandgenerate
selfconfidenceamongthem.Theyalsoarrangeforlegalassistancetoitsmembers,if
necessary.Besides,these,theyundertakemanywelfaremeasuresfortheirmembers,e.g.,
educationofchildren,library,reading-rooms,in-doorandout-doorgames,andSome
tradeunionsevenundertakepublicationofsomemagazineorjournal.
•Totakeupwelfaremeasuresforimprovingthemoraleofworkers
•Togenerateselfconfidenceamongworkers
•Toencouragesincerityanddisciplineamongworkers
•Toprovideopportunitiesforpromotionandgrowth
•Toprotectwomenworkersagainstdiscrimination
Fraternal Functions

25. Besidesthemaineconomicfunctionsconsistingbasicallyoforganisingunionsand
improvingtheirtermsandconditionsofemploymenttoenableworkerstomeettheir
physicalneeds,someunionshavenowstartedundertakingandorganisingwelfare
activitiesandalsoprovidingvarietyofservicestotheirmembersandsometimestothe
communityofwhichtheyareapart,whichmaybegroupedunderfollowingheads:
1)Welfareactivitiesimprovethequalityofworklife,cooperativecreditsocieties,
cooperativestores,culturalprogrammes,bankingandmedicalfacilitiesandtraining
forwomen
Social Functions

26. 2)Education:awarenessintheenvironmentaroundthem,enhancementoftheirknowledge
particularlyinregardtoissuesthatconcernthem,theirstatutoryandotherrightsand
responsibilities,workers’participationinmanagement.
3)scheme,andprocedureforredressingtheirgrievances.Somecentralunion
organizationsarealsoassistingtheGovernmentinimplementingtheWorkers’Education
Scheme.
4)Publicationofperiodicals,newslettersormagazinesforestablishingcommunication
withtheirmembers,makingthelatterawareofunionpolicyandstandoncertainprincipal
issuesandpersonnelmattersconcerningmembers,suchasbirths,deaths,marriages,
promotionandachievements

27. 5)Research:Oflate,thisisgainingimportanceandisintendedmainlytoprovide
updatedinformationtounionnegotiatorsatthebargainingtable.Suchresearch
istobemorepracticalthanacademic,concerningproblemsrelatingtoday-today
affairsoftheunionanditsactivitiesandunionandmanagementrelations.
Politicalfunctions:
Thesefunctionsincludeaffiliatingtheunionwithapoliticalparty,helpingthe
politicalpartyinenrollingmembers,collectingdonations,seekingthehelpof
politicalpartiesduringtheperiodsofstrikesandlockouts.

28. Unions structure diagram
•Union Members
•Shop Stewards (Union Representatives)
•BranchesDistrict and Regional Offices
•National Office

29. Trade unions are democratic organizations which are accountable to their members
for their policies and actions. Unions are normally modeled on the following structure:
•Members -people who pay a subscription to belong to a union
•Shop stewards -sometimes called union representatives -who are elected by
members of the union to represent them to management
•Branches -which support union members in different organizations locally. There is
usually a branch secretary who is elected by local members

30. Districtand/orregionaloffices-theseareusuallystaffedbyfulltime
unionofficials.Thesearepeoplewhoarepaidtoofferadviceand
supporttounionmemberslocally
Anationaloffice-theunion'sheadquarterswhichofferssupportto
unionmembersandnegotiatesorcampaignsforimprovementstotheir
workingconditions.Atthetopoftheorganizationthereisusuallya
GeneralSecretaryandaNationalExecutiveCommittee,electedbythe
union'smembers.
Contd………

31. History of Trade Unions
-TheBritishrulersintroducedTradeUnionAct,1926.ThemainpurposeoftheActwastoprovide
registrationfortradeunionsandincertainrespects.ButtheActdidnotcontainanyprovisionregarding
strikes.
In 1929, the Trade Disputes Act put restrictions on strikes in public utility services and laid provision for
the establishment of tribunals to adjudicate upon the labor disputes.
In 1947, the Industrial Disputes Act placed the conciliation and adjudication machinery for the
settlement of industrial disputes on a permanent footing.
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32. History of Trade Unions
The Pakistan Period (1947-71)
-The East Pakistan Trade Unions Act, 1965 was enacted repealing the
Trade Unions Act, 1926.
-The Labor Disputes Act, 1965 was enacted.
-Industrial Relations Ordinance, 1969 was enacted integrating the above
two Acts.
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33. Bangladesh Period (1971-onwards)
-Government of Bangladesh declared a labor policy in 1972. The right to strike and
collective bargaining in the nationalized industries was prohibited for six months by
Presidential order no. 55 in May 1972.
-In 1973, the right to strike and lockout, as granted by IRO, 1969 was withdrawn.
-In 1974 Act completely suspended the democratic rights of workers by prohibiting trade
union activities such as strikes, lock-outs, collective bargaining.
-The military regime of 1975 imposed restrictions on the rights of collective bargaining.
-The Industrial Relations (Amendment) Ordinance, 1977 liberalized the Rights of Freedom
of Association
-The Labor Policy of 1980 restored the right to freedom of association to a considerable
extent
-In 1982 the military regime banned trade union activities, strikes, and right of freedom of
association.
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34. -Full trade union activities were restored by the democratic government in
1991.
-In 2006, an updated, consolidated and unified version of labor laws was
enacted.
-During the Emergency in 2007-2008 that lasted for 23 months, trade unions
and collective bargaining were prohibited and the determination of collective
bargaining agent could not be made.
-However, full trade union activities were restored by the democratic
government in 2009.
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35. Trade union movement started in Bangladesh early 19th century when modern industrial concept
entered into the sub-continent
The Bangladesh constitution provides for freedom of association; in order to register
-Unions must at least 30% of the workers representation of an enterprise
-Must obtain authorization from the government
-The Registrar may also cancel the registration with Labor Court approval
Ingeneral,onlycurrentemployeescanbeunionmembers,whichmeanthatthelossofajobalso
leadstothelossofunionmembership
ThetradeunionsareverystronginBangladesh,althoughonly3.5percentoftheworkforceis
unionized,butmostoftheunionsarelimitedtothepublicsectororstate-controlledenterprises.
TheprivatesectorislessunionizedandtradeunionsarepracticallybannedfromtheExport
ProcessingZones(EPZ),astheEPZisexemptedfromcertainlaborlaws.
About1.8millionofthecountry'sworkersbelongtounions,outofatotalworkforceofapproximately
58million.
Mostofthefederationsarefinanciallyweakanddon'thavein-housedevelopmentprogrammesforthe
activists.Educationleveloftheworkersarenotinasatisfactorylevel.Officesarenotequippedwith
moderncommunicationsystem.
TRADE UNION SITUATION IN BANGLADESH

36. There are three tier structure of trade union in Bangladesh
NationalFederation:NationalTradeUnionfederationconsistsofbasicunionsirrespectiveofjobcategories.ANational
FederationwasconstitutedbytwoormorebasictradeunionsirrespectivelyoftheTrade.Nowitneeds20registered
basic/IndustrialUnions
IndustrialFederation:Itisthebodyofunionsfromthesameindustrialsector.Itdealswithcommonproblemsanddemandsof
thesector.Basicunionswithinthesectorareitsmembers
BasicUnion:ThisisthemainunionformedbythedirectparticipationoftheworkersGrassrootlevelactivistsarethemembers
ofthisFactorylevel/workplacebasedunions.ElectedbodyofindustryoffactorylevelunionsworksasCollectiveBargaining
Agent-CBA
Total number of registered trade unions in Bangladesh
TRADE UNION STRUCTURE
Categories Total number of
unions/federations
Number of unions includedNumber of members
Nationalfederation 32 1,264 1,263,665
Industrialfederation 108 721 640,221
Garmentsfederation 26 80 50,149
Basicunion 5,242 - 2,069,614

37. 1.Trade Union leadership:
2.Multiple unions:
3.Union Rivalry:
4.Weak financial position
5.Low membership:
6.Heterogeneous(diverse ) nature of labour
7.Lack of Interest:
8.Absence of paid office bearers:
9.Other problems:
Illiteracy:
Uneven growth:
Problems of trade unions

38. Negative impacts
•Trade Unions are creating a surplus of manpower but not of productivity.
•Trade union of Bangladesh bargains more than they understand because of the limitations of their
knowledge. If don’t consult then they strike.
•Trade Unions have equal power of management then clashes are started.
•In companies labors are awarded for good work and threatened for bad work. But if it’s punished then
trade union interfere and don’t let to happen the punishment. So it increases crime of the labors.
•Trade union leaders always try to save their interest first then the labor.
•For the power of politics trade union always dishonor the management.
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39. Positive impacts
•Trade union plays a major role in creating ideal working conditions.
•Trade union always helps management to create better policies for workers.
•Trade unions negotiate for the standard wage and benefits with the management.
•Trade union helps the management to increases the productivity as well as the profit.
•Political influence’s existence makes the trade union not to interfere in management
decisions.
•Trade union is hugely helping the management to produce more and implementing
management tactics.
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