Trade Unions
Course code: HRM101
L: 32-33
1
Learning Objectives
Understand the nature of trade
unions
Illustrate different types of trade
unions
Trace the evolution of the movement
Describe the recent trends in the
movement in India
Identify strategies to remain union-
free
2
Trade union: meaning
Trade union is a formal
association of workers for the
purpose of protecting and
promoting their rights and
interests through collective
bargaining and actions.
Features of a trade union
The features of a trade union are
Voluntary association
Common goals
Authority flows from the
members
Intermediary
Collective action
Objectives of trade unions
Income security
Job security
Physical security
Social security
Emotional security
Procuring political prowess
Fostering industrial democracy
and equity
Types of trade unions
Occupational unions
Industrial unions
General unions
White-collar unions
Occupational unions
In this kind of trade union, the
union members mostly belong
to a specific occupational
category.
The primary purpose of such
unions is to protect the skill
status of their members.
Occupational unions (contd.)
This kind of unions may exist
exclusively for technicians, pilots,
marine engineers, hairdressers,
welders, journalists, freelance
photographers, and so on.
The earliest kind of occupational
union was the craft union.
Industrial unions
In an industrial union members
usually belong to a specific
industry.
When the workers belonging to
textile or steel industry form a
trade union, it is commonly called
an industrial union.
Industrial unions (contd.)
The primary purpose of the
industrial unions is to promote
sectoral collective bargaining.
When a single industrial union
represents all the workers of a
specific industry, it is a
monopolistic union.
General unions
When the unions represent
workers from different industries
and organizations, they are
known as general unions.
A general union may be a single
union for the entire working class
or an amalgamation of several
unions representing workers of
different industries.
General unions (contd.)
Such unions are capable of
organizing general strikes at the
national level by converting the
entire working class into one
body or federation with maximum
consequences.
White-collar unions
The white-collar unions normally
focus on employees belonging to
a particular industry.
The uniting factor for the
workers of white-collar unions is
the nature of their job and not
their skills.
White-collar unions (contd.)
The employees who perform non-
manual job and belong to salaried
class often form white-collar
unions.
The emergence of the services
sector as an important segment of
economy and globalization have
provided impetus to the growth of
white-collar unions in India.
Strategic Choices Before
Managements
A combination of workers or
employers,
Such a combination could be
permanent or temporary,
Could include federation of two or
more unions, and
To regulate relations among
workmen, between workmen and
employers or among employers
themselves.
15
Why Unions?
Dissatisfaction
Lack of power
Union instrumentality
16
Factors Leading to
Unionisation Individual Personality, Interests
and Preferences
Expectation that Work will fulfil
Personality, Interests and
Preferences
• Employment Contract
• Psychological Contract
Satisfaction Work Situation Influence of Management
Dissatisfaction with Work Attempt to Resolve
Situation Situation Individually
Union Instrumentality
Unionisation
17
Strategic Choices Before
Unions
Bread and butter or politics
Adversarial or cooperative
Traditional issues or new services
18
Membership and Other Details of
Central Trade Unions as on
31.12.89
The year was 1975 and it was February, one
month before the Bangalore-based electric
company closed its annual accounts. The
company executed a prestigious foreign order
worth Rs.50 lakh and the transformer was ready
for shipment. But the huge transformer could not
be lifted out of the premises as the workers,
indirectly backed by their union, refused to touch
it. They had scores to settle with the
management.
Workers in the dispatching section had
demanded extra incentives based on the number
of shipments but the management did not
concede, nor the union could take up the issue as
it would displease workers in other departments.
19
Membership (contd..)
The management was in a dilemma. Four issues
bothered them most:
◦ Time was running out for dispatching the product. If the
transformer was not shipped in February the order would be
subject to cancellation.
◦ The order was worth a fortune and the company could not
afford to lose it.
◦ Cancellation of the order would send wrong signals in the
international market. No buyer would place an order in future.
◦ The truck operator (hired from outside) would charge
Rs.3,000 per day of waiting in the premises.
The management caved in. Demands of the workers in
the dispatching section were met. All of them got extra
remuneration, not as incentives, but as annual
performance awards. It was a win-lose situation for the
management.
20
Trends in Unionism
Attitudinal changes in unions
Depoliticisation of unions
Religion and caste based unions
Move against multiple unions
End to outside leadership
Declining clout of central unions
Professionalisation of union
management
21
Strategies and Tactics for
Remaining Union-free
Effective First Line Effective Personnel
Open Communications
Supervisors Research
Effective Personnel
Remaining A Healthy and Safe
Planning, Recruitment
Union Free Working Environment
and Selection
Effective Training and
Effective Effective Employer and
Development
Remuneration Employee Relations
Programmes
22
Strategies for developing a
union-free organization
Effective information sharing
Ensuring employee participation
Sensitivity to employee
complaints and concerns
Fairness in HR policies and
procedures
Leadership training
Vulnerability test
Provisions of the Trade Unions Act,
1926
Definitions
(S.2)
Powers to
Registration
make
of Unions
regulations
(S.3 to 12)
(S.29 to 30)
Rights to Duties of
Registered Provision Registered
Unions s Unions
(S.17 to 21) (S.17 to 21)
Amalgamation
Penalties
and
and Fines
Dissolution
(S.31 to 33)
(S.24 to 27)
Submission
of Returns
(S.28)
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Key Terms
Depoliticisation
Psychological contract
Employers’ associations
Strike
Employment contract
Trade unions
Multiplicity of unions
Unionisation
Personnel research
Union-free plants
Political affiliations
Union instrumentality
25
Reality Check
Star performers like Wipro and
Infosys are doing without unions.
Have they lost anything? Do you
suggest that their employees
should unionise?
26
