Akshay mahajan.

Pgdm IN HR
&MARKETING
GUEST FACULTY, KSAWU.
SUBJECT : LABOUR LAW AND
INDUSTRIAL RELATIONS
Unit 2. Trade unionism.
 Objectives of this unit
• The meaning, types, role and future of trade
unions
• How trade union are formed
• How they contribute to the well being of
employees
• Functioning of the trade unions
 Contents:
Concepts, functions, Objectives, structure, kinds
of trade unions, problems of trade unions,
trade union movement in India, Trade union
Act, 1926 (Applicability, registration,
recognition of trade unions, immunities
available to trade union office bearers),
Dealing with trade unions.
 Conceptual meaning of Trade union
• The trade union is an association, either of employees or
employers or of independent workers.
• It is a relatively permanent combination of workers and is
not temporary or casual.
• According to Section 2(h) of the Trade Unions Act, 1926, a
trade union is any combination of persons, whether
temporary or permanent, primarily for the purpose of
regulating the relations between employees and
employers, or between employers and employees or
between employers and employers or for imposing
restrictive conditions on the conduct of any trade or
business, and includes the federation of two or more trade
unions.
 Definition of trade unions.
• A trade Union is the continuous association of wage
earners for the purpose of maintaining or improving
the conditions of their working lives." (Leonard Webb)
• According to Section 2(h) of Indian Trade Union Act,
"Trade union is an combination whether temporary or
permanent formed primarily for the purpose of
regulating the relation between workmen & employers
workers & workers or between employers & employers
or for imposing restrictive conditions or conduct of any
trade or business and include any federation of two or
more trade unions."
Historical Evolution of Trade Unions in
India.
• Between 1850 and 1870, foundation of
modern industry was laid.
• Indian working class started emerging at this
point of time.
• In the national economy, one could see the
growth of Indian enterprises along with
English ones, growing steadily.
 Purpose of Trade Union.
• To Ensure Job Security and Right Pay for the
Members
• To ventilate the Grievances of Employees to
the Management
 Characteristics of TUs
• 1. The trade union is voluntary association
• 2. Common interest
• 3. Collective action
• 4. Permanent & continuous association
• 5. Association engaged in securing economic
benefits
• 6. The origin and growth of trade union have
been influenced by a number of ideologies
• 7. Other benefits.
 Objectives of trade unions.
• Better wages;
• Better working conditions;
• Protection against exploitation;
• Protection against victimization;
• Need- based provisions of the welfare measures;
• Promote industrial peace;
• Take up Collective Bargaining [Win-Win];
• Look after the interests of trade and business
Types and structure of the trade union.
• Unions can be classed under 2 heads:
• The purpose for which unions are formed:
1) Reformist
2) Revolutionary Reformist unions

• The variation in the composition of their membership:

1) Craft union
2) Industrial union
3) Staff union
4) General union
 Functions of Trade Unions in India.
• (i) To achieve higher wages and better working and living
conditions for the members.
• (ii) To acquire control over running of the industry by workers.
• (iii) To minimize the helplessness of the individual workers by
making them stand-up united and increasing their resistance power
through collective bargaining.
• (iv) To raise the status of the workers as partners in industry and
citizens of society by demanding an increasing share for them in the
management of industrial enterprises.
• (v) To generate self-confidence among the workers.
• (vi) To encourage sincerity and discipline among workers.
• (vii) To take up welfare measures for improving the morale of the
workers.
 Structure of Trade Unions in India
The 3 levels of Tus found to be seen:
A) Local
B) The state
C) The central.

There are two types of organizations to which the

trade unions in India are affiliated:
(i) National Federations
(ii) The Federations of Unions.
National Federations:
Federations of Unions:
 Trade union act, 1926.
Learning Objectives:
• The Trade Union Act and registration of Trade
Union
• Rights and Responsibilities of the registered
trade unions
Objectives of the act.
 Trade dispute
It may be anything like:
• > between employers and workers;
• > between workers and workers;
• > between employers and other employers.
 Advantages of registration
• Obtains the status of a corporate body by
name,
• Gets the power to enter into a contract,
• Attains a legal entity,
• Can sue and be sued in its registered name
Registration of Trade Unions.
 Mode of Registration
• (Section 14) Any seven or more members of a
Trade Union may apply for registration of the
Trade Union.
• Application for Registration (Section 5)
 Rules of Trade Union to provide the
following (Section 6)
• (a) Name of the Trade Union
• (b) Objectives of the Trade Union
• (c) Purposes for which the general funds shall be applicable.
• (d) Maintenance of a list of its members - facilities for its inspection
• (e) Admission of the number of honorary or temporary members
• (f) Payment of subscription - not less than 25 paisa per month per
member
• (g) Conditions under which members can enjoy the benefits and under
which fines may be imposed on them
• (h) Manner in which rules may be amended
• (i) Manner of appointment and removal of the members
• (j) Safe custody of the funds, an annual audit, facilities for inspective of
the accounts
• (k) Manner in which Trade Union may be dissolved.