Concept Notes

Trade Unions (Part 1)

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 Contents
1 Introduction ....................................................................................................................... 3
2 Characteristics of Trade Union .......................................................................................... 3
3 Objectives of Trade Union ................................................................................................. 4
4 Reasons for joining Trade Union ....................................................................................... 6
5 Types of Trade Union ......................................................................................................... 9
5.1 On the Basis of Purpose .............................................................................................. 9
5.2 On the Basis of Membership Pattern ....................................................................... 10
5.3 On the Basis of Level of Operation ........................................................................... 11
6 Phases of Trade Unions in India ...................................................................................... 12
6.1 Pre-World War I ........................................................................................................ 13
6.2 Post-World War I ...................................................................................................... 13
6.3 Post-Independence ................................................................................................... 14
6.3.1 Phase I (1947 to mid-1960s) .............................................................................. 15
6.3.2 Phase II (mid-1960s to 1979) ............................................................................. 15
6.3.3 Phase III (1980-1991) ......................................................................................... 16
6.3.4 Phase IV (1991-2000)......................................................................................... 16
6.3.5 Phase V (2000 and beyond) ............................................................................... 17
7 Functions of Unions in Modern Era ................................................................................. 18
8 Methods of Achieving Objectives .................................................................................... 19
8.1 Mutual Insurance ...................................................................................................... 19
8.2 Collective Bargaining ................................................................................................ 20
8.3 Legal Enactments/Political Actions .......................................................................... 20
8.4 Direct Action ............................................................................................................. 21

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 1 Introduction
Trade Unions are an instrument for promoting the cause of the working class; they allow
workers to demand their rights and voice their grievances in a legitimate manner. Trade
Unions are voluntary organization of Workers as well as Employers formed to protect and
promote the interest of their members. They are the most suitable organizations for
balancing and improving the relations between the employer and the employees. The
workers come together to maintain and improve their bargaining power on wages and
working conditions. The first organized Trade Union in India named as the Bombay Mill
Hands Association (1890) founded by Narayan Meghaji Lokhande in Bombay (now
Mumbai), Madras Labour Union (1918) Founded by B. P. Wadia in Madras (now Chennai),
it was the first registered trade union in India and played a key role in advocating for labor
rights and All India Trade Union Congress (AITUC) (1920) formed by Lala Lajpat Rai and
others, the AITUC became the first national trade union federation in India, uniting various
regional unions for collective action.
According to ILO, a trade union is an organization of employees, usually associated beyond
the confines of one enterprise, established for protecting or improving through collective
action, the economic and social status of its members.
The emergence of the trade union movement can be traced back to the Industrial
Revolution, reflecting a response to the changing dynamics of the workplace and the need
to protect the rights of the labor force.
In simple words, Trade Unions are like organized groups of workers with specific goals.
They exist to help workers collectively improve their economic and social conditions.
Now, let us discuss characteristics of trade unions.

2 Characteristics of Trade Union

The characteristics of Trade Unions are as
follows:
• Association of Workers or Employees:
Trade unions are groups formed by workers
or employees who come together to
address common concerns and interests.
• Voluntary in Nature: Joining a trade union
is a voluntary decision for employees. They

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 have the choice to become a member or not.
• Continuous Association: The existence of a trade union is continuous, providing
ongoing support and representation for its members.
• Formation Objectives: Trade unions are established with the primary goal of improving
the conditions of workers. They work to protect and promote the economic, political,
and social interests of workers.
• Harmonious Relationship: One of the key aims of trade unions is to establish a
harmonious relationship between managers and workers. This involves negotiating and
maintaining a balanced and cooperative working environment.
Let us discuss an example for better understanding,
Suppose in Mumbai, a group of hotel and restaurant employees decided to form the
Hospitality Workers Union. This union allows workers, such as chefs, servers, and
housekeeping staff, to voluntarily join and collectively address workplace challenges. The
union's continuous presence ensures ongoing support for its members, and it focuses on
improving working conditions by advocating for fair wages and reasonable hours. By
negotiating with the management, the Hospitality Workers Union aims to foster a
harmonious relationship between employees and employers, creating a platform for
workers to voice their concerns and collectively work towards a better working
environment.
Therefore, trade unions are voluntary associations of workers and are formed to enhance
the well-being of workers and strive to foster a harmonious relationship between labor and
management.
Now, let us discuss objectives of Trade Unions.

3 Objectives of Trade Union

Trade Unions were primarily formed for protecting the interests of workers. Nevertheless,
the broad objectives of unions are:
• Ensuring Rights to Workers: Trade unions play a pivotal role in safeguarding the rights
of individual workers. They emerged to address the collective bargaining power
imbalance between individual employees and management. Unions provide legal
representation, opposing any policies or actions perceived as threats to workers' rights.
For example, a union may negotiate for better working conditions on behalf of factory
workers to ensure a safer and healthier workplace.

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 • Securing Economic Interests of Workers: Trade unions were established to protect
workers from exploitation and secure fair economic compensation. They tirelessly
advocate for wages in line with industry standards and ensure additional benefits such
as bonuses and compensation for workplace accidents, provident funds, etc. For
example, a union may negotiate for an annual bonus for retail employees based on the
company's profits.
• Participating in Management: Trade unions facilitate worker participation in the
decision-making processes of an organization. Elected representatives negotiate with
employers on issues like pay and working hours, fostering a democratic work
environment. For example, a
union representing office
workers negotiating flexible
work hours to enhance work-
life balance.
• Ensuring Welfare of Workers
and their Families: In addition
to upholding workers' rights,
trade unions engage in welfare
activities for both workers and
their families. They ensure
employers fulfill obligations
regarding statutory welfare
amenities. For example, a
union advocating for improved healthcare benefits and childcare facilities to enhance
the well-being of employees and their families.
• Contributing to National Development: As per the recommendations of the First
National Commission on Labour, trade unions are encouraged to not only champion
workers' causes but also contribute constructively to national development. This
involves collaborating in the formulation and implementation of plans and policies. For
example, a union may collaborate with government initiatives to enhance vocational
training programs, contributing to the skill development and economic progress of the
nation.
In conclusion, trade unions are like superheroes for workers. They make sure that workers
are treated fairly, get the right pay, and work in safe places. Unions also help in making
decisions at work, making sure everyone has a say. They don't just stop there – they also

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 work to make life better for workers and their families. Lastly, by teaming up with others,
trade unions contribute to making our whole country better. So, they're not just for one
person, but for everyone who works hard!
Till now we have discussed the meaning, characteristics and objectives of trade unions. As
we have mentioned earlier that trade unions are voluntary associations and therefore it is
not mandatory for a worker to join a union. This brings us to a pertinent question: why
would a worker join a trade union? So, let us move on to our next topic where we will be
understanding the reasons for joining a trade union.

4 Reasons for joining Trade Union

The various reasons that may be instrumental behind a worker joining a trade union maybe
as follows:
• Greater Bargaining Power:
Workers have more strength
when they stand together.
Joining a trade union allows
them to present their
concerns as a united group,
making it more likely for
their issues to be heard and
addressed. This collective
bargaining power helps in
negotiating better terms and
conditions with the
management.
• Sense of Security: Being part of a union provides workers with a sense of security. As
individuals, they might feel vulnerable to decisions made by top management. Union
membership helps protect them from uncertainties in their income and other
workplace hazards, offering a safety net.
• Other reasons- Other reasons behind joining a trade union maybe Negotiation for
wages and working conditions, Protection from unforeseen exigencies like accidents
and illness, etc.
o The union acts as a representative for its members in discussions with the
employer, aiming to secure fair compensation and comfortable working
environments.

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 o Trade unions offer protection against unexpected situations such as accidents or
illnesses. They advocate for workers to ensure they receive appropriate support,
compensation, and benefits in times of need.
Now, let us discuss a model proposed by Schuler and Younghood (1986), there are three
separate conditions that influence an employee’s decision to join a union, namely:
dissatisfaction, lack of power and union instrumentality.
Let us discuss these points briefly:
• Satisfaction of Employee: Satisfaction of an employee at work is contingent upon 2
types of contracts:
o Employment contract (pertaining to conditions of employment like wages, hours of
work, etc.) and
o Psychological contract (consisting of unspecified expectations of the employee
about reasonable working conditions, etc.).
o Example: Imagine an employee, Simran, working in a manufacturing company. She
signed an employment contract expecting fair wages and reasonable working
hours. However, the company consistently violates these terms. Sarah feels
dissatisfied due to the unfulfilled employment and psychological contracts. In this
scenario, Sarah might consider joining a union to collectively address and improve
these working conditions.
• Powerlessness:
o Low essentiality and exclusivity would render an individual’s attempt as
unsuccessful.
o An employee would not be able to remove his cause of dissatisfaction if he is not
exclusive and can be substituted easily, and in such a case he is in a state of
powerlessness.
o Essentiality refers to how important or critical the job is to the overall success of
the organisation.
o Exclusivity refers to how difficult it is to replace an employee.
o Example: Suppose Ram works in a position with low essentiality and exclusivity. His
role is not critical to the company's success, and he can be easily replaced. When
Alex faces dissatisfaction, he realizes that his lack of essentiality and exclusivity
makes it challenging to have a significant impact on the company's policies. Feeling
powerless, he might see joining a union as a way to strengthen his position and
address workplace issues.

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 • Instrumentality: Instrumentality refers to the degree to which an effort would lead to
desired outcomes. For this, he may compare the costs and benefits of union
membership; if the benefits outweigh costs, the employee would join the union.
o However, in many cases an employee may not be able to ascertain such benefits
and costs, and opt for joining union without any such evaluation and comparison.
o Example: Sohan, an employee in a service industry. He evaluates the benefits and
costs of joining a union. David sees that the union has successfully negotiated
better wages and improved working conditions for its members in similar
industries. Believing that the benefits outweigh the costs, he decides to join the
union to improve his own work situation. On the other hand, another employee,
Rohan, might not thoroughly evaluate the costs and benefits but still chooses to
join the union based on a general perception that it helps workers.
Therefore, Schuler and Younghood's model helps us understand that an employee's
decision to join a union is influenced by their satisfaction levels, the power dynamics in their
role, and the perceived effectiveness of union membership in addressing their specific
concerns.
Let us discuss some concept check questions.
Concept Check
Question 1 - Is it necessary for each worker in an industry to join the trade union?
Ans: No, Joining the trade union is a voluntary decision of each worker. But normally
employees or workers belonging to an industry join the industry in peer pressure and due
to other decisions.

Concept Check
Question 2 - ____________________ refers to how difficult it is to replace an employee.
A. Essentiality
B. Exclusivity
C. Instrumentality
D. Powerlessness
Ans: Option B

Now, let us move on to another important topic, that is Types of Trade Union.

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 5 Types of Trade Union
Trade Unions differ in their purposes, membership pattern of workers and level of
operation. Please refer to the following image:
Now, let us discuss these types of Trade Unions in little more detail.

5.1 On the Basis of Purpose

Unions may be classified on the basis of their purposes and functions, as follows:
• Reformist Unions: These
are the unions that seek
to improve the existing
economic and social
conditions of workers,
without attempting to
uproot or drastically
change the existing
system. Examples-
Unions associated with
the American Federation
of Labour (AFL) and the
Congress for Industrial
Organization (CIO) in
USA. Hoxie’s business
unionism and friendly or
uplift unionism belong to
this category.
Note- We will be discussing the theories provided by Hoxie in the upcoming chapters.
• Revolutionary Unions: These are the unions that seek to destroy and abolish the
existing economic and social order by means of some kind of force, with an objective
of improving the status of workers. The means adopted by these unions may be
revolution or exercise of political strength. Thus, a revolutionary union may be either
anarchist union or political union.
• Predatory Unions: These stick to no particular means and adopt any method to fulfill
their purpose. They use violence and other secret methods to achieve their objectives.
They maybe of two types:

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 o Hold up-union, formed by combination of employee and employer, both not
abiding by any principles, concerned with their own benefit, without any concern
for outsiders; and
o Guerilla unions, that work against employers, and can go to any extent even
terrorism and are controlled by a ‘boss’.
Let us discuss a simple scenario to understand these trade unions, Imagine students in a
school are unhappy about their study conditions. One group (Reformist Union) talks to
teachers to make small changes, like having more fun activities in class. Another group
(Revolutionary Union) wants to completely change how classes are taught, maybe
suggesting classes without traditional desks. A third group (Predatory Union) uses different
methods - some might work with teachers without caring much about fairness, and others
might try extreme things, like playing pranks or being a bit sneaky to get what they want.
Now, let us discuss the types of trade union on the basis of membership pattern.

5.2 On the Basis of Membership Pattern

Trade Union members may all belong to the same trade/craft or different crafts; they may
also be blue-collar or white-collar employees. Thus, on the basis the types of membership,
trade unions maybe classified as:
• Occupational/ Craft Unions: The earliest form of trade unions found were craft unions,
which comprised members from the same craft or trade. This included members from
the same craft or trade. Since the membership of such unions is open only to those
belonging to a particular craft, these unions maybe quite small in size. Example- Pilot’s
Association.
• Industrial Unions: As discussed, the size of occupational unions was small, since they
were restricted to a single craft or trade. Eventually with increase in work complexities,
such unions begun to collude amongst themselves, and thus emerged industrial unions.
The focus area of such union is broader. They aim to represent all employees in a specific
industry, regardless of their type of work. An industrial union would comprise all workers
in an industry with different skill sets, namely, skilled, semi-skilled, and unskilled,
engaged in a particular industry or enterprise. Example- The Steel Employees Trade
Union.
• General Unions: General unions are for skilled and unskilled workers performing
different jobs in different industries, employments or crafts, while industrial unions are
for different workers in the same industry. Example- Jamshedpur Labour Union and the
National Union of Municipal and General Workers.

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 • Blue Collar and White-Collar (Managerial) Unions:
o Blue-Collar Workers are those who are at the operative level, employed at the
production floor, or in maintenance shops; they are paid on piece-rate or time-rate
basis. Unions representing such workers are regarded as blue-collar unions.
o White-Collar Employees do not work on the shop floor; they are non-manual
workers who are paid on a monthly basis. Unions representing such workers are
regarded as white-collar unions. Their unions are usually regarded as “guilds” or
“associations” or “officers’ associations”. Example- All India Bank Officers’
Association and the Airports Authority Officers’ Association (India).
Now, let us discuss the classification on the basis of level of operation.

5.3 On the Basis of Level of Operation

Trade Unions may be classified as:
• Plant-level Unions: A plant-level union is, as is suggestive from the name, is a union
that operates at the factory or plant level.
• Industry-level Unions: An industry-level union operates at the industry-level,
comprising several factories or enterprises.
• Regional-level Federations: These are organizations of all the constituent unions in a
particular State or region. Example- Telugu Desam in Andhra Pradesh.
• National Federations: These are national-level bodies to which plant-level unions,
local-level unions and regional-level unions may get affiliated. Examples- The Khet
Mazdoor Union of AITUC, Bharatiya Khet Mazdoor Union (BKMU).
Therefore, we can say that the Trade unions vary in purpose, membership, and operational
levels. Reformist, revolutionary, and predatory unions pursue distinct strategies.
Membership patterns include craft, industrial, and general unions for diverse worker
representation. Blue-collar and white-collar unions cater to different worker categories.
Operational levels range from plant and industry to regional and national federations,
demonstrating diverse organizational structures. This diversity allows trade unions to
effectively represent and advocate for workers across industries and geographical scales.
Let us discuss some concept check questions.

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 Concept Check
Question 3 - Jamshedpur Labour Union is an example of ____________Union.
A. Occupational
B. Industrial
C. General
D. Revolutionary
Ans: Option C

Concept Check
Question 4 - Which of the following is not a trade union on the basis of membership
pattern?
A. Occupational
B. Industrial
C. General
D. Revolutionary
Ans: Option D

Concept Check
Question 5 - The managers and upper-class workers belong to ____________ Union.
A. Blue Collar
B. White Collar
C. Red Collar
D. Black Collar
Ans: Option B
Till now, we have discussed the basics of trade union in detail. Now, Let us move on to our
next topic that is Phases of Trade Union.

6 Phases of Trade Unions in India

The trade union movement in India can be
traced back to the period when
industrialisation begun in the country in the
1850s. We have divided the span of more than
16 decades of trade union movement in India
into 3 phases:

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 Now, we shall be discussing these phases in detail.

6.1 Pre-World War I

During the 1850s, under British rule, industrialization brought benefits to capitalists in India
but resulted in severe hardships for workers. The year 1860 marked the onset of labor
unrest in India, initially protesting the oppression of indigo cultivators in Bengal. In 1875,
Sarobji Shapurji made a protest
in Bombay against poor
working conditions of workers.
The first Factory Commission
was appointed in 1875, and to
improve the situation of
workers in India, the British
government passed the
Factories Act in 1881. In the
year 1890, N.M Lokhande
sponsored the first labour
organization in India, the
Bombay Mill Hands
Association.
The most notable features of
the trade union movement in
this phase are that the
movement was essentially led
by social reformers and not by workers, and that the unions which were operational in this
phase were not unions in the true sense.
During World War I (1914-1918), global social, economic, and political changes had a
significant impact, providing additional momentum to the growth of the trade union
movement in India.Now, let us discuss the Post-World War I Phase in detail.

6.2 Post-World War I

The Russian Revolution of 1917 greatly influenced the labour movement in India. The first
organized trade union in India, the Madras Labour Union, an association of textile workers,
was formed in 1918 by B. P. Wadia. Meanwhile, the International Labour Organization was
formed in 1919 with India as the founder member, and the Textile Labour Association
Ahmedabad was formed in 1920 under the leadership of Anusuya Ben Sarabhai and

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 Shanker Lal Banker. Other notable unions were formed after this, including the All India
Trade Union Congress (AITUC) in 1920.
Labour uprisings were taking place in
many parts of the world. Due to the
resultant pressure created, coupled
with interventions by the ILO, several
industrial legislations were passed
during this period. The agitation for
legislation for trade unions had begun
under N.M Joshi. The Trade Unions
Act was finally passed in the year 1926.
This was an important milestone in the
evolution of trade unions, as the Act
gave legitimate status to unions, and
association of workers was made a
lawful activity. This was followed by
the Trade Disputes Act, 1929, which
provided for ad hoc Conciliation Board
and Court of Enquiry for the
settlement of trade disputes.
The Second World War broke out in
1939 bringing economic and political
turmoil. The year 1946 saw another
milestone in labour relations, with the
enactment of the Industrial
Employment (Standing Orders) Act,
1946. The objective of the act was to
bring uniformity in the condition of employment of workmen in industrial establishments,
and thus minimize instances of industrial conflicts.

6.3 Post-Independence
India became independent on 15th August 1947. Post Independence Phase is further divided
into the following phases:

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 Let us discuss these phases one by one in detail.

6.3.1 Phase I (1947 to mid-1960s)

This phase corresponds to an era of state Planning and setting up of public sector
enterprises to provide employment to people. The period 1946-47 was marked by increase
in the number of industrial
disputes, which led to the
enactment of Industrial Disputes
Act, 1947. This Act introduced
compulsory adjudication on a
permanent basis. Another
important landmark in the trade
union was the establishment of
INTUC IN May 1947, with Sardar
Vallabhbhai Patel as its first
president. In 1949, the United
Trade Union Congress (UTUC)
was formed under the leadership
of Mrinal Kanti Bose, a Marxist, with the objective to create a classless society and non-
political unionism. In 23rd of July, 1955, Bharatiya Mazdoor Sangh (BMS) was formed under
the aegis of the Jan Sangh Party, presently known as Bharatiya Janata Party.
Now, let us move on to the next phase.

6.3.2 Phase II (mid-1960s to 1979)

This period was marked by economic
stagnation and political turmoil.
Employment slowed down, inter-union
rivalries increased and there was
widespread industrial conflict. During the
late 1970s, there was a major change in
the growth of independent employees’

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 unions and economic unionism, mainly in the new capital intensive industries. Datta
Samant rose as an influential trade union leader in this period. His approach was
revolutionary. He resorted to long strikes, sometimes overreaching economic demands,
bypassing legalistic struggle and by significantly using violence against opponent workers
and trade union centers.

6.3.3 Phase III (1980-1991)

This corresponds to a period of
segmented and uneven economic
development, witnessing the
phenomenon of decentralised
bargaining and independent trade
unionism. The Trade Unions
(Amendment) Bill was introduced in
the Lok Sabha in 1982. It proposed
to make several amendments in the
Act, like a minimum qualifying
membership of 10 per cent of
workmen (subject to a minimum of
10) employed in an establishment
where a trade union is proposed to function, with a view to reduce multiplicity of unions.

6.3.4 Phase IV (1991-2000)

This was the transition phase between traditional and modern methods of trade unionism.
Economic reforms in India were
introduced in 1991, which had a
great impact on the way businesses
are run, and ultimately affected
workers and unions. The advent of
globalisation in India required the
replacement of rigid and stabilised
systems with more flexible ones,
open to changes. The roles and
functions of trade unions had to be
adapted with the new requirements,
like workers’ training for adoption of
new technology and issues related to

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 the Voluntary Retirement Schemes. Regional trade union organisations affiliated to regional
political parties such as DMK, AIADMK and MDMK in Tamil Nadu and the Shiv Sena in
Maharashtra also emerged during this phase.

6.3.5 Phase V (2000 and beyond)

The recent phase is characterised
by political instability, with no
single party being able to emerge
as majority. The Trade Unions Act,
1926 underwent several
amendments in 2001, which
became effective on and from 9th
January 2002. It is in this phase
that the Government opened up
the economy for Foreign Direct
Investments. Also, the
employment scenario has changed
dramatically in this phase, with a
shift from formal to informal
sector, which has had an impact on
the membership status of trade
unions. Also, Unions are being vigilant for any injustice being caused to employees. Trade
unions are also adopting practices to keep pace with changes in technology, and are getting
involved into supportive and developmental roles, thus moving ahead of their traditional
militant role. This phase is also witnessing increased participation of women in trade
unions.
Let us discuss some concept check questions.
Concept Check
Question 6 - Who is known as Father of Trade union Movement of India?
A. N.M. Joshi
B. Datta Samant
C. N.M. Lokhande
D. B.P. Wadia
Ans: Option C

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 Concept Check
Question 7 - Who was the First President of INTUC?
A. Mahatma Gandhi
B. Datta Samant
C. Jawaharlal Nehru
D. Sardar Vallabhbhai Patel
Ans: Option D

Now, moving towards the end of the chapter let us discuss Functions of Unions in the
modern era.

7 Functions of Unions in Modern Era

The new functions of unions can be categorized into the following groups:

Let us discuss these categories in a little more detail:

• Communication: Unions use newsletters and magazines to share information and
explain their positions on important issues. This helps members understand what the
union is doing. For example, INTUC has a publication called "The Indian Worker."
• Welfare Activities: Unions do things to help workers and their families, like providing
homes and schools for their kids. They also set up groups to encourage workers to save
money and offer discounts on things they buy. For example, Union provides discounted
childcare services for workers' families.
• Education: Unions want workers to know more about their jobs and rights. So, they
organize programs to teach workers about their work environment, their rights, and
how to solve problems at work. For example, Union conducts workshops on workplace
rights and safety.
• Training of Workers: Trade unions also provide training to workers in order to enhance
their efficiency and effectiveness. This function has gained greater relevance in the
current scenario when changes in technology are taking place very fast and

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 obsolescence of skills is a routine phenomenon. For example, Union sponsors coding
classes for members to adapt to tech changes.
• Research: When unions talk with employers about pay and conditions, they need to
know a lot about the industry and how it works. So, they collect and study information
to make their arguments strong. For example, Union gathers data on industry salaries
to negotiate fair wages.
• Social Workers: Apart from helping workers, some unions also get involved in activities
that benefit the community. This shows that unions care about making things better for
everyone. For example, Union organizes a community clean-up event.
These functions show that unions today do more than just negotiate for better work
conditions; they also focus on educating, supporting, and contributing to the well-being of
workers and the community.
As we have already discussed the objectives of trade union, it's time to delve into how
these objectives can be achieved. Let's move on to our next topic.

8 Methods of Achieving Objectives

The following
methods are adopted
by unions to achieve
the objectives:

8.1 Mutual Insurance

Unions have since long tried to provide insurance and other benefits to their members,
which act as a security
against casualties and also
contribute to improvement
in the conditions of workers.
This method implies that in
exchange of fees that
members pay, unions render
certain services to them. It
involves creation of a
common fund to which
every member is required to contribute, and the fund thus created is to be used for
schemes for mutual benefit. Such benefits would enable unions to prevent workers from
accepting employment on terms and conditions injurious to the trade. Webbs referred to

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 this method of mutual insurance adopted by trade unions as a “friendly society”, that
would provide insurance and other forms of assistance to members.
Advantages of Mutual Insurance:
• Results into commitment and loyalty towards the union.
• Helped in preventing unemployed members from accepting employment with wages
below standard rate.
• Moral influence in negotiating with employers, thus enhancing bargaining power of the
union.

8.2 Collective Bargaining

Collective bargaining came to be
adopted as a method for achieving
trade union objectives after unions
received legal recognition and came to
be recognised as legitimate
representatives of workers. It is a
method by which unions protect,
safeguard and improve the conditions
of the lives of their members.
Under this method, trade union
representatives bargain with the
employer over terms and conditions
of employment like wages, hours of
work, incentives, working conditions, etc. An individual worker is not as influential and
effective as a group in negotiating the terms and conditions of work. Due to this reason,
collective bargaining came to be recognised as a useful method adopted by unions to
achieve their objectives. Union representatives’ bargain with the employer and enter into
an agreement, which is known as a collective agreement; such an agreement may deal with
a single issue, or may include multiple issues.

8.3 Legal Enactments/Political Actions

Legal enactments and political actions also help trade unions
achieve their objectives. Unions send their representatives to
legislatures to present the views and concerns of workers and
convince the political leaders to enact laws for securing better
working and living conditions. Once enacted, these laws define

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 the legal rights of workers, and the industry has to abide by such laws. Political Connections
help unions gain power and influence. Since the time of their inception, trade unions in
India have sought to affiliate themselves to one political party or the other. For example,
AITUC, the first trade union of India, is affiliated to the Communist Party of India, INTUC is
associated with the Indian National Congress.

8.4 Direct Action

When unions fail to achieve their objectives through any of
the means discussed above. they resort to direct action,
which refers to exerting pressure on employers by
resorting to tactics like strikes, boycott, blockade, etc.
Before we take up some of these tactics in brief, let us
specify here that direct action leads to loss of productivity,
and involves not only the employer and workers, but also
suppliers, consumers and other stakeholders; hence this
method must be avoided and used only as the last resort.
Some of the methods of Direct action are:
• Strike refers to collective withdrawal from work by the members of a union.
• Picketing is an action taken by union members to prevent employees from attending
work after a strike has been called.
• Boycott refers to the rejection by workers of specific products or services provided by
the employer.
Let us discuss some concept check questions.
Concept Check
Question 8 - Under this method, trade union representatives bargain with the employer
over terms and conditions of employment like wages, hours of work, incentives,
working conditions, etc. Which method is these?
A. Mutual Insurance
B. Direct Action
C. Legal Enactments
D. Collective Bargaining
Ans: Option D

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