Historical Development Of Trade Union In India n1s5i

TRADE UNION NOTES – BY CHANDAK SIR HISTORICAL DEVELOPMENT OF TRADE UNION IN INDIA •

Trade Union formed in 1890, Bombay Mill Hands Association by Mr.Lokhande to demand amendment of Factories Act 1918. Then several other unions followed to fulfill specific demands and also to lend to national movment.

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In 1918:-Ahmedabad Textile Labour Association was borned when dispute was settled by the intervention of Mahatma Gandhi.

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In Madras B.P.Wadia formed Madras Labour Union

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International Labour Organization (ILO) was established in 1919,This influenced formation of All India Federation of Trade Unions.

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After world war I, in 1919, large number of strong trade unions were formed by Annie Besant in Madras and Mahatma Gandhi in Ahmedabad. After 1924, all major All India Left-wing Trade Unions were formed for class struggle.

TRADE

UNION

STRUCTURE

There are three types of unions: •

A craft unions is formed by workers belonging to same occupation or specialization irrespective of industry, e.g. Indian pilots, guild, electricians etc

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Industrial Union is formed on the basis of industry e.g. cotton textile factories ( Rashtriya Mill Mazdoor Sangh)

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General Union embraces all workers whatever kind of industry or craft in a place e.g. Jamshedpur Labour Union

WHY EMPLOYEES UNION ? Employees union for following reasons : •

Trade unions will protect employee’s economic and vocational interest. As such , it serves as instrument of defence and security.

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Trade unions look after employees welfare.

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Trade unions safeguard and improve service conditions .

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Trade unions will communicate their views to the management

TRADE UNION NOTES – BY CHANDAK SIR •

Trade union will restrain managerial authoritarianship.It will oppose management discretions.

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Trade union will strengthen their bargaining power. It is seen as an instrument regulating the relationship between employers and employees.

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Trade union highlights class distinction to reduce workers dissatisfaction.

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To exercise leadership role as office-bearers of trade union. This satisfies their ambition to get ahead which they aspire.

UNIONS

PROVIDE

THE

FOLLOWING:

a. Job security to the workers / employees. b. Safeguard workers interest c. Improve their working conditions d. Helping employees in developing skill according to the job entrusted them e. Enable the worker participation in management f. Protect rights of the workers g. Helping in maintaining good industrial relations h. Negotiating with management on industrial conflicts/ disputes FUNCTIONS •

OF

TRADE UNION

FUNCTIONS RELATING TO TRADE UNION 1) Safeguard workers interest against explotion by employers 2) Protect workers from unfair labour practices by employer. 3) Provision of health, safe and conducive working conditions. 4) To ask for rewards to be associated with work performance. 5) Get benefits from organization for health, housing, education etc. 6) To help in grievance redressal of employees. 7) To foster labour-management participation and cooperation. 8) To make workers conscious of their rights and duties.

TRADE UNION NOTES – BY CHANDAK SIR (B) FUNCTIONS RELATING TO ORGANIZATIONS 1) To increase production and productivity. 2) To help maintenance of discipline. 3) To promote cordial relations between the management and workers. 4) To create favourable opinion about management among workers. 5) To facilitate effective communication with the management.

(C) FUNCTIONS RELATING TO UNION 1) To improve financial position by increasing subscription etc 2) To train in leadership. 3) To augment communication between union and . 4) To crub inter-union rivalary. 5) To avoid unfair labour practices. 6) To review relevance of union objectives in the context of social change. 7) To maintain s & other istrative records of union. (D) FUNCTIONS

RELATING

TO

SOCIETY

1. To help national development integration, afforestration.

e.g.

family

planning,

national

2. To launch campaigns against social evils, i.e. corruption, communalism, cateism, price rise, hoarding, smuggling, dowry, illiteracy etc. 3. To help and co operate with participation. WEAKNESSES i.

OF

TRADE

the government and mobilise people

UNION MOVEMENT IN

INDIA

Multiplicity of trade union as only 7 persons can from a union

ii. Inter-union rivalry

TRADE UNION NOTES – BY CHANDAK SIR iii. Intra-union factions / rivalry iv. Absence of criteria for recognition of sole bargaining agent v. Politicalisation of trade union and association of outsiders with enterprise unions. vi. Philosophy and approaches which advocated vii. Adversarial relationship (war-fare) conflict with management viii.Class struggle: oppression and exploitation by employers. ix. Adoption of pressure tactics, militancy, indiscipline, intimidation, blackmailing, towards management x. No role played as social change agents but self-centered THE TRADE UNIONS ACT

1926

•

The Trade Unions Act 1926, is one of the old enactments in the field of Labour Laws but it is a conservative piece of legislation in as much as it as it deals only with the registration of the trade unions and legal status of ed trade unions.The constitution of India confers on all citizens a fundamental right to from associations or unions.

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The right to form union is thus doubly recognized in India by the constitution of India and The Trade Unions Act 1926.

What is the objective of the Trade Unions Act? The limited objective of this Act provide for the registration of the trade unions and to confer on ed trade unions certain protection and privileges. What is the meaning of “trade union” As ordinarily understood the trade union means a combination formed for the purpose of regulating the relations between workmen and employers. The definition of trade union given in The Trade Unions Act 1926, however includes 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. What is the procedure for the registration of a trade union? (a) At least seven of the trade union have to make an application in the prescribed form and accompanied by the prescribed fee to the ed for Trade unions for the registration of the trade union the application must be accompanied by a copy of the rules of the trade union

TRADE UNION NOTES – BY CHANDAK SIR and should give particulars about its name and addresses its and officers. (b) The Registrar if he is satisfied that the trade union has complied with all the requirements of the Act will the trade union and issue a certificate of registration to it (c) The certificate of registration will be conclusive evidence that the trade union has been duly ed under the Act. When there is an exiting Trade Union ed under the name of all India Trade union congress (AITUC) can the registrar grant registration to a new Trade Union under the name of AITUC hawkers Union? Section 7(2) of the Trade Union Act 1926 reads as under if the name under which a trade union proposed to be ed is identical with that by which any other existing trade union has been ed or in the opinion of the registrar so nearly resemble such name as to be likely to deceive the public or the of either trade union the registrar shall require the person applying for registration to alter the name of the trade union stated in the application and shall refuse to the union until such alteration has been made considering section 7 of the Act It will not be possible for the registrar to any other union under the name of AITUC hawkers union which is similar or deceptively similar to the name of All India Trade Union Congress (AITUC).

The government of Maharashtra by notification dated 13-12-2001 has revised the fees payable under the Bombay Trade Union Regulation 1927 as underS R N o.

DESCRIPTION

FEES Rs.

TRADE UNION NOTES – BY CHANDAK SIR

1 2 3 4

(a) Registration of a Trade union with a hip of 1000 or over (b) Registration of trade union with a hip of less than 1000

5

600 400 50 25 50

Duplicate certificate of registration Registration of alteration of rules Inspection union

of



of

trade

Maintained by the Inspection of a document in the possession of the

Is registration of trade union compulsory? The Trade Union Act 1926 does not make registration of trade registration of a trade union compulsory. But it is advisable to get a trade union ed under the Act because the Act confers many rights on a ed trade union. Is a trade union required to have a certain minimum hip? Section 9-A required that ed trade union shall at all time continue to have not less than ten per cent or one hundred of the workmen whichever is less subject to a minimum seven engaged or employed in an establishment or industry with which it is connected as its . Can a trade union ed under the trade union Act 1926 be ed again under the Societies Registration Act 1860 the Cooperative Societies Act 1912 or the companies Act 1956? A trade union which is already ed under the trade union Act 1926 cannot be ed again under the societies registration Act 1860 the Co-operative societies Act 1912 or the companies Act 1956 and the registration of any such trade union under any of the said Act will be void.

TRADE UNION NOTES – BY CHANDAK SIR Can the registrar of trade union a union of of the Armed forces? The registration of such union initially granted by a mistake can be made invalid and therefore cancelled. What is the legal status of ed trade union? 1. A ed trade union is a body corporate having a perpetual succession and common seal. 2. It has power to acquire and hold both movable and immovable property and to enter into contracts. 3. It can sue and be sued by its own name 4. Its office bearer or member cannot be prosecuted for criminal conspiracy for following its legitimate objects 5. No legal proceeding can be filed in any civil court against it in respect of any act in furtherance of a trade dispute even if such act 6. Induces some other person to break a contracts of employment 7. Is in interference with the trade business or employment of some other person 8. Is in interference with right of some other person to dispose of his capital or his labour as he wills. 9. Any agreement between its is not void or voidable even if its object are in restraint of trade Can a trade union represent a workmen engaged or employed in an industry with which the trade union is not connected? If the constitution of a trade union does not allow it to represent a workmen engaged or employed in a particular industry it is not entitled to represent such a workmen. Is the immunity from civil suit in respect of acts of a trade union its office bearer and available under section 18 of the Act absolute? The immunity from civil suit will not be available in respect of acts which are unlawful tortuous or violent and which fall out umbrella of protection of section 18 of the Act. In what circumstances the registration of a trade union can be cancelled? The registrar or trade union can withdraw or cancel certificate of registration of a trade union if-

TRADE UNION NOTES – BY CHANDAK SIR a) The trade union applies for its cancellation b) The registrar is satisfied that the certificate has been obtained by fraud or mistake c) The trade union has cased to exist d)

The trade union has willfully contravened any provision of the Act

By an amendment to an Act , the registrar of trade union is empowered to withdraw or cancel thee registration of any trade union workmen if it ceases to have the requisite number of . What is the procedure the registrar has to follow before the certificate of registration of trade union is withdrawn or cancelled? The registrar has to give to the trade union not less than two months previous notice in specifying the ground on which it is proposed to withdraw or cancel the certificate. What is the scope of the power of the registrar of trade union with regard to cancellation of the registration of trade union? The registrar can invoke the power of cancellation of registration of a trade union only if there is sufficient material before him to establish that the trade union concerned has committed willful contravention of any provision of the Act in other words unless the international violation of any provision of the Act is established the registrar cannot invoke the said power. Does the registrar of trade unions possess the power to revoke or withdraw an order of registration of a trade union? There cannot be a withdrawal or revocation of the initial order of de-registration of trade union in the absence of any statutory provision authorizing the registrar to do so. What are the functions of the registrar of trade unions? The registrar of trade union performs the following functions a) Registration of trade unions b) Withdrawal or cancellation of registration of trade unions c) Sanction of prosecution for the offence committed under the trade unions Act 1926

TRADE UNION NOTES – BY CHANDAK SIR Can a minor be itted as a member of a ed trade union? If a person has attained the age of 15 years he can be itted as a member of a ed trade union provided that there is no prohibition in the rules of the trade union on itting any minor as its . Does a person automatically ceases to be a member of the union on cessation of employment? There is no provision in the Act providing for automatic cassation of hip on cessation of employment What are rights of a of ed trade union? Every office bearer or member of a ed trade union has a right to inspect the books of s and also the list of of the trade union at such times as may be provided for the rules of the trade union.

Can any person be chosen as an office bearer of a ed trade union? For being qualified to be chosen as an office bearer of a ed trade union a person (i) must have attained the age of 18 years; and (ii) must not have been convicted of any offence involving moral turpitude and sentenced to imprisonment, unless a period of 5 years has elapsed since his release. Is there any restriction on the number of outsiders who can be the office bearers of a ed trade union? The act providers that the number of outsiders shall not be “ore than one-third of total number of office bearers or five, whichever is less.” Can the recognition of a trade union be withdrawn without giving to the union opportunity of being heard in the matter? A refusal to grant recognition and withdrawal of recognition once granted cannot be placed on the same footing though the grant of recognition to a trade union

TRADE UNION NOTES – BY CHANDAK SIR may be voluntary recognition once granted to it could not be withdrawn without giving to it opportunity of being heard in the matter. Does the registrar of trade unions, under sections 8 and 28 possess the power to hold any quasi-judicial enquiry? The registrar of trade unions under sections 8 and 28 can hold only an istrative enquiry he has no power under those sections to hold any quasijudicial enquiry by allowing parties to examine witnesses and allowing such witnesses to be cross-examined. Does the registrar of trade union under section 28 possess the power to decide any dispute between rival office bearers of a trade union? There is no provision in the Act empowering the registrar of trade union to exercise any superintendence or control over the internal affairs of a trade union Is it permissible for a trade union constitute a political fund apart from its general fund? It is permissible for a ed trade union to constitute a separate fund for the promotion of the civil and political interest of its member contribution to the fund will be optional and no member will be compelled to contribute to the fund consequently a member who does not contribute to the fund shall not be deprived of any benefits of the trade union. Can a trade union change its name? A ed trade union can change its name with the consent of not less than two thirds of the number of its member and after following the procedure prescribed under section 25 of the Act.

Is a civil suit for damages against striking workers maintainable? The trade union the office bearers and the member are insulated against a suit or other legal proceeding linked with the strike of the workers the trade union Act through Section 18, unfolds un umbrella of protection to them. Does the registration of a trade union confer any right on the said union to be recognised by the employer? The registration of a trade union does not confer any right on the said union to be automatically recognized by the employer

TRADE UNION NOTES – BY CHANDAK SIR Is it permissible for any two or more ed Trade Unions to amalgamate? It is permissible for any two or more ed Trade Unions to become amalgamated together as one Trade Union. This can be done after the votes of at least one half of the of each or every such Trade Union are recorded at least sixty per cent of the votes recorded are in favour of the proposal the procedure concerned unions have also to follow the prescribed under section 25 What is the procedure for dissolution of a trade union? The dissolution of a ed trade union shall be effected in accordance with the rules of the trade union and notice of the dissolution shall be sent to the registrar of trade union if the rules do not provide for the distribution of funds the registrar shall divide for the funds among the proportionate to the amounts contributed by them by way of subscription during their hip. What are the offences under the Act and what is the punishment for them? 1. If any office bearer of ed trade union makes a default in giving any notice or sending any statement as required by the Act, he would be punished with fine upto Rs. 5. 2. If any person willfully makes a false entry in the annual Return of ed trade union, he would be punished with fine upto Rs. 500. 3. If any person, with intent to deceive, gives an incorrect copy of the rules of ed trade union to a member or person intending to become a member of the trade union, he would be punished with fine upto Rs. 200. Is a Trade Union required to maintain any s and submit any returns? Every ed Trade Union is required to maintain the following books and s i.

of hip and subscription.

ii. of receipts and disbursements. iii. Minute book of meetings, iv. of stock, tools and plant, v. Machine numbers & subscription receipt book, vi. of receipts and disbursement for the political fund,

TRADE UNION NOTES – BY CHANDAK SIR vii. A file of vouchers. Every ed Trade Union is required to submit to the registrar of Trade Unions annual returns of receipts and expenditure as well as assets and liabilities in the prescribed form, by the 30th day of April in each year. CHANGING

SCENARIO

OF

TRADE

UNIONISM

After the liberalization process in the economic system which started in 1990s, there has been change in the trade unionism too. Such changes are of the following types and are expected to proceed in the same direction in near future. 1. There is decreasing attraction of employees from industrial sector towards Unionism. This is evident by the decreasing number of trade union hip. In fact, attraction towards unionism is losing momentum throughout the world. 2. There is increasing depoliticisation of trade unions. This is happening in two ways. First, many trade unions are not d to any central trade union. Second, many central unions are ing control to non-politicians though there is a long way to go. 3. Trade union leaders have become more mature in their approach. Many trade unions have adopted constructive & co-operative approach in handling industrial relations, problem rather than sticking to age-old militant approach. 4. Many unions have accepted the realities of economic reforms. Their approach has turned to eradicate the adverse impacts of reforms rather than stalling the reforms as such. Trade union circles now discuss more about productivity, total quality management, quality of work life, competition etc, rather than making plans to go for strikes and other pressure tactics. 5. Trade unions have accepted many new employee management practices like VRS etc, which used to be bone of contention a few years ago There is a possibility to make the company union-free. Employees who ed unions feel dissatisfied with the union working style . Therefore, management itself can take certain steps to modify those factors causing dissatisfaction.

TRADE UNION NOTES – BY CHANDAK SIR The employees value the outcomes for ing or not ing a union and relate the valuation to their level of satisfaction. In fact, when an individual s any organization for his career he does not have in his mind that he would an union. He is more interested in his career. This tendency is gaining ground throughout the world and India is not lagging a behind. The major actions which an organization can undertake to make itself union free are as follows: 1. Effective first-line supervision. 2. Effective personnel planning, recruitment and selection. 3. Effective training and development 4. Open communication 5. Appropriate remuneration 6. Effective personnel research 7. Healthy and safe working environment 8. Healthy employer-employee relationship

PROBLEMS OF TRADE UNION MOVEMENT IN INDIA The position of trade unionism in India is not very sound. In fact, the trade union movement is wanting in many respects. This is because of the fact that the Indian trade union of today suffer from many problems. A brief of these problems is given below: Uneven Growth Historically Trade union activities were concentrated in large scale industry sector and there too in regard to manual labour only and mainly in bigger industrial centers for example textile workers in Mumbai,Ahmedabad, Indore, Kanpur and plantation labour in Assam, West Bengal, Tamil Nadu, and Kerala The degree of unionization varies from industry to industry. Low hip The number of trade unions in India has increased considerably. But this has been followed by the declining hip per union. Moreover, the rivalry among the leaders of trade unions has resulted in multiplicity of unions, thereby reducing the average size of hip per union.

TRADE UNION NOTES – BY CHANDAK SIR Outside Leadership Another remarkable feature of trade unionism in India has been domination by outside leadership. Most of the trade unions in India have professional political leadership. The leadership is not rooted in the working class. The leadership of professional politicians is interested in exploiting workers for their political objectives. The political leadership is actually harmful to the cause of the working class, strikes are prolonged by political leaders for personal prestige. Very often negotiations with employers fail due to such political leadership. The interest and welfare of the workers is very often ignored. Thus outside leadership of politicians is a major weakness of trade unions in India. Multiplicity of Union Another problem of trade unionism in India is that of multiplicity of unions. There exist many trade unions in the same establishment. There are at times as many as twenty unions in the same plant. The existence of this phenomenon can be attributed partly to the domination of outside leaders and partly to the labour laws .The Trade Union Act 1926 perrmits any association of seven workers to be ed as a union, and confers upon it certain rights. Such a union is allowed by law to raise disputes, go to conciliation, files suits, and even bargain with employers. Such provisions in the law naturally encourage small section of workers to form separate unions. Any seven persons can get together to form a union. Many a times, it is contended that multiplicity of unions is because of outside leaders. But more pertinent point is that they are able to form new union because law permits and gives sanctity to the small unions. Intra-Union Rivalry The existence of multiple unions leads to problem of union rivalry. Unions try to play down each other in a bid to gain greater influence among workers. In the process, they do more harm than good to the cause of unionism as a whole. Employers are given an opportunity to play union against each other. They can refuse to bargain on the contention that there is no true representative union. Besides this, the workers own solidarity is lost. Employers are able to take advantage of infighting between workers groups. Solution to this problem can be found in secret ballot vote. After some stipulated time period, the workers should go to polls to elect their representative union for that duration. This would reduce both multiplicity of union and inter-union rivalry. Absence of Paid Office-Bearers Majority of unions do not have whole time paid office-bearers. Many union activists work on honorary basis. They devote only limited time and energy to

TRADE UNION NOTES – BY CHANDAK SIR trade union activities. The domination of political leaders is also due to the absence of full time union workers. The union office bearers are also not trained properly. They lack the knowledge of basic principles and practices of trade unionism. Weak Financial Position The financial position of the trade union is generally weak because their average yearly income is low and inadequate . The subscription vary from union to union and are quite low in most of the unions. Under conditions of multiplicity of unions interested in increasing their hip. keep the subscription rate unduly low. As a result, the funds with the unions are inadequate and they cannot undertake welfare programmes for their . In such a situation, the subscription rates may be raised. It is argued that the financial condition of Indian workers is not too good to afford the increased rates. This, however, is only a myth. Over the years the average income of the workers has been on an increase.It is wrong to plead that they cannot afford higher subscription rates for union hip. Subscription dues unpaid Another important reason for the weak financial position of union is that large amounts of subscription dues remain unpaid. The names of constant defaulters continue to appear on the hip s of most of union. They are neither expelled nor cease to be . Rules for expulsion of defauting are seldom invoked. Besides this,unions do not have proper staff and organization to collect subscription. A solution to the problem of collection subscription on regular basis can be found in the check off system. Under this system, the subscription is deducted at the time of making wages payment by the employer. The amount is later on handed over union of which the worker is a member. Lack of Interest In order to make the trade union movement succeed, the of trade unions should take keen interest in the union affairs. They should understand what unionism is all about and what demands it makes on individual . They must feel the need to give the movement necessary for a common cause. The attendance at the general meeting of the unions is very low. Under such circumstances, trade unionism cannot be expected to make much progress. This gives rise to another problem that unions ceases to function democratically. They are run by a few interested persons who at time have their own axe to grind. This problem can be removed by educating workers of their rights and duties and developing in them a sense of responsibility.

TRADE UNION NOTES – BY CHANDAK SIR Limited Stress on Welfare Many unions in India undertake only limited welfare activities. They only fight with the employer for more wages and other benefits. Lack of public The trade unions frequently resort to strikes and demonstration . They give limited attention to peaceful methods for the settlement of demands and disputes. The general public is affected due to strikes, go slow and other practices of unions. As a result, public or sympathy is not available to the unions. MEASURES

FOR

STRENGTHENING

OF TRADE

UNIONS

1. Development of strong base A strong trade unions movement is necessary both to safeguard the interests of the and to the help in achieving the targets of production. To develop a strong movement, it is necessary that trade unions with different affiliations come together on the basis of a common programme covering objectives, methods, and procedures. 2. One union in one industry Multiplicity of unions in the same plant leads to inter- unions rivalry which ultimately cuts at root of the trade union movement. It weakens the power for collective bargaining, and reduces the effectiveness of workers in securing their legitimates rights. Therefore, there should be only one unions is one industry. 3. Elimination of Political influence The linking of unions with political parties is highly dangerous for the healthy growth of trade unionism in India . It diverts the attention of unions from the problem of working class. The unions must realize the utter uselessness of party politics in trade unionism. 4.Development of internal Leadership It is desirable to switch over to working class leadership from out side leadership. Leadership should be developed from within the rank and file of the workers. This will help movement to gain strength in regard to trade union leadership. The National Commission on Labour (NCL) recommended that: (1) there should be no ban on non-employees holding the positions in the executive of the union

TRADE UNION NOTES – BY CHANDAK SIR (2) steps should be taken to promote internal leadership and given it more responsible role (3) permissible limit of outsiders in the executive of the union should be reduce to 25 per cent of executive (4) ex-employees should not be treated as outsiders. 5. Paid Union Officials Generally, the trade unions avail the services of the honorary workers due to paucity of funds this practice. In large union set up, it is better to have services of outsiders with relevant experience. 6. Financial Stability Most of the trade unions in India are financially weak. This creates various difficulties before the unions and restricts their activities. The financial problems of the unions can be solved by raising the hip, and collecting more contributions from all