Trade Union : Definition, Objectives, Importance, Role
Definition
Trade Union :A trade union is a formal association of workers that promotes and protects the interests of its members through collective action.
Under the Trade Union Act of 1926, the term is defined as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workers and employers, or for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more unions
Objectives
Trade unions specifically concentrate their attention to achieve the following objectives:
- Wages and salaries:
The subject which drew the major attention of the trade unions is wages and salaries. Of course, this item may be related to policy matters. However, differences may arise in the process of their implementation. In the case of unorganised sector the trade union plays a crucial role in bargaining the pay scales.
- Working conditions:
Trade unions with a view to safeguard the health of workers demands the management to provide all the basic facilities such as, lighting and ventilation, sanitation, rest rooms, safety equipment while discharging hazardous duties, drinking water, refreshment, minimum working hours, leave and rest, holidays with pay, job satisfaction, social security benefits and other welfare measures.
- Discipline:
Trade unions not only conduct negotiations in respect of the items with which their working conditions may be improved but also protect the workers from the clutches of management whenever workers become the victims of management’s unilateral acts and disciplinary policies. This victimisation may take the form of penal transfers, suspensions, dismissals, etc. In such a situation the separated worker who is left in a helpless condition may approach the trade union. Ultimately the problem may be brought to the notice of management by the trade union and it explains about the injustice meted out to an individual worker and fights the management for justice. Thus, the victimised worker may be protected by the trade union.
- Personnel policies:
Trade unions may fight against improper implementation of personnel policies in respect of recruitment, selection, promotions, transfers, training, etc.
- Welfare:
As stated earlier, trade unions are meant for the welfare of workers. Trade union works as a guide, consulting authority and cooperates in overcoming the personnel problems of workers. It may bring to the notice of management, through collective bargaining meetings, the difficulties of workers in respect of sanitation, hospitals, quarters, schools and colleges for their children’s cultural and social problems.
- Employee-employer relations:
Harmonious relations between the employee and employer is a sine qua non for industrial peace. A trade union always strives for achieving this objective. However, the bureaucratic attitude and unilateral thinking of management may lead to conflicts in the organisation which ultimately disrupt the relations between the workers and management. Trade union, being the representative of all the workers, may carry out continuous negotiations with the management with a view to promoting industrial peace.
- Negotiating machinery:
Negotiations include the proposals made by one party and the counter proposals of the other party. This process continues until the parties reach an agreement. Thus, negotiations are based on give and take principle. Trade union being a party for negotiations protects the interests of workers through collective bargaining. Thus, the trade union works as the negotiating machinery.
- Safeguarding organisational health and the interest of the industry:
Organisational health can be diagnosed by methods evolved for grievance redressal and techniques adopted to reduce the rate of absenteeism and labour turnover and to improve the employee relations. Trade unions by their effective working may achieve employee satisfaction. Thus, trade unions help in reducing the rate of absenteeism, labour turnover and developing systematic grievance settlement procedures leading to harmonious industrial relations. Trade unions can thus contribute to the improvements in level of production and productivity, discipline and improve quality of work life.
Types or Classification and structure of Trade Unions
Indian labour is represented by many different kinds of unions:
Craft unions: A craft union is one whose members do one type of work, often using specialised skills and training. It is horizontal in character as its members belong to a single process or group of processes. A craft union enjoys strong bargaining power as its members possess specialised skills that cannot be easily replaced in case of a strike.
Industrial union: An industrial union is one that includes many persons working in the same industry or company, regardless of jobs held. It is vertical in nature as it consists of all types of workers in an industry. An industrial union also enjoys strong bargaining strength as it consists of both skilled and unskilled workers. The employer may find it easy to negotiate with one union covering all workers rather than deal with a number of craft unions in case of a dispute.
General union: This type of union consists of workers employed in different industries and crafts within a particular city or region. In this case, all workers are equal and there is no distinction between skilled and unskilled workers.
There is convenience in negotiations as the employer need not bargain with so many splintered groups. Workers, of course, become part of a huge crowd and the interests of an important group many not be represented properly.
There could be plant level unions, in addition to the above, where all workers in a factory or establishment join hands to protect their interests.
Federations: These are national level entitles to which plant level unions, craft unions, industrial unions and general unions are affiliated. These are apex bodies, coordinating the affairs of various unions in their fold.
The first central federation of trade unions, namely the All India Trade Union Congress (AITUC), was formed in 1920 on the initiative of eminent Congress leaders active in the nationalist movement
Role of Trade Unions in Promoting Good Industrial Relations
Trade unions are organizations formed by workers to protect their interests and improve their working conditions. Their role in fostering good industrial relations is crucial, as they act as a bridge between employees and employers, aiming to create a harmonious and productive work environment. Here’s an in-depth look at how trade unions promote good industrial relations, explained in simple terms.
1. Collective Bargaining and Negotiation
One of the primary functions of trade unions is collective bargaining. This means that instead of individual workers negotiating with management, the union negotiates on behalf of all its members. Through this process, unions secure better wages, improved working conditions, and additional benefits for workers. By engaging in collective bargaining, unions ensure that agreements are reached through discussion rather than conflict, which helps maintain peace and stability in the workplace.
2. Protecting Workers’ Rights
Trade unions play a vital role in safeguarding workers’ rights. They ensure that employees are not unfairly treated, discriminated against, or exploited by employers. If a worker faces any issues such as wrongful dismissal or harassment, the union steps in to represent and support them. This protection gives workers a sense of security, which is essential for maintaining good relations between workers and management.
3. Resolving Disputes and Grievances
Disputes and grievances are inevitable in any workplace. Trade unions help resolve these issues by providing a structured platform for workers to voice their concerns. Unions often mediate between employees and management to find amicable solutions, reducing the likelihood of strikes or lockouts. If necessary, they can refer unresolved disputes to arbitration, ensuring that conflicts are addressed fairly and efficiently.
4. Promoting Communication and Cooperation
Trade unions facilitate open communication between workers and employers. They organize regular meetings where both parties can discuss workplace issues, suggest improvements, and share feedback. This ongoing dialogue helps build trust and mutual respect, which are key ingredients for good industrial relations.
5. Ensuring Fair Policies and Social Security
Unions advocate for fair employment policies, including reasonable working hours, job security, and access to healthcare and other social benefits. They also play a role in influencing government policies that affect workers, ensuring that labor laws are fair and just. By doing so, unions contribute to a sense of fairness and well-being among workers.
6. Reducing Industrial Disputes and Promoting Harmony
By addressing workers’ concerns proactively and negotiating with management, trade unions help reduce the frequency and intensity of industrial disputes. This leads to a more peaceful and stable work environment, which benefits both employees and employers. Good industrial relations also minimize absenteeism, labor turnover, and wastage, contributing to higher productivity and economic growth.
7. Encouraging Worker Participation and Industrial Democracy
Trade unions encourage workers to participate in decision-making processes that affect their jobs and working conditions. This sense of involvement fosters a feeling of ownership and responsibility among workers, leading to higher morale and better cooperation with management.
