Tag: Financial Accounting Bangalore University BBA Notes

The trade union movement in India has changed in recent years. Earlier, Left-affiliated trade unions were more active in calling strikes against the government’s actions. For the first time in 2009, all the central trade unions came on a common platform to decide the course of action on their charter of demands jointly. Since then, three strikes have taken place one each in 2010, 2012 and 2013. The strike in February 2013 was a two-day strike and trade unions claim a record 120 million workers had participated in it.

Pre-1918: The genesis of the labour movement in India

After the setting up of textile and jute mills coupled with the laying of railways in the 1850s, worker atrocities started to come to light.

Though the origin of labour movements was traced to the 1860s, first labour agitation in the history of India occurred in Bombay, 1875. It was organised under the leadership of S.S Bengalee. It concentrated on the plight of workers, especially women and children. This led to the appointment of the first Factory commission, 1875. Consequently, the first factories act was passed in 1881.

Features of the labour movements in this era:

• Leadership was provided by social reformers and not by the workers themselves.
• The movements in this era mainly concentrated on the welfare of workers rather than asserting their rights.
• They were organised, but there was no pan India presence.
• A strong intellectual foundation or agenda was missing.
• Their demands revolved around issues like that of women and children workers.

1918-1924: The early trade union phase

This period marked the birth of true trade union movement in India. It was organised along the lines of unions in the industrialised world.

The deteriorated living conditions caused by the first world war and the exposure with the outside world resulted in heightened class consciousness amongst the workers. This provided fertile ground to the development of the movement. This period is known as the early trade union period.

Important unions: Ahmedabad Textile Labour Association (1917) led by Smt. Anasuyaben Sarabhai, All India Postal and RMS Association, Madras Labour Union led by B.P Wadia etc.

Factors that influenced the growth of the movement:

• Spiralling prices during War and the mass entrenchment of workers that followed it led to low living standards. Also, the wretched working conditions added to their woes. Hence, they sought collective bargaining power through unionisation.
• Development of Home Rule, the emergence of Gandhian leadership and the socio-political conditions led to the nationalist leadership taking interest in the worker’s plight. Workers, in turn, was looking for professional leadership and guidance.
• Russian revolution and other international developments (like setting up of International Labour Organisation in 1919) boosted their morale.

1925-1934: Period of left-wing trade unionism

This era was marked by increasing militancy and a revolutionary approach. It also saw multiple split-ups in the movement. Leaders like N.M Joshi and V.V Giri was instrumental in moderating the movement and further integrating it with the nationalist mainstream.

AITUC split up multiple times paving way for the formation of organisations like National Trade Union Federation (NTUF) and All India Red Trade Union Congress (AIRTUC). However, the need for unity was felt and they all merged with the AITUC in the next phase.

1935-1938: The Congress interregnum

This phase was marked by greater unity between different unions. Indian National Congress was in power in most of the provinces by 1937. This led to more and more unions coming forward and getting involved with the nationalist movement. In 1935, AIRTUC merged with AITUC. Different legislations were passed by provincial governments that gave more power and recognition to the trade unions.

1939-1946: Period of labour activism

The Second World War lowered standard of living for the workers further and this led to the strengthening of the movement. The question of war effort created a rift between the Communists and the Congress. This, coupled with other issues, led to further split in the movement. However, the movement as a whole got stronger due to the compounding issues. This included mass entrenchment post-war and the massive price rise that accompanied it.

Legislations like Industrial Employment Act, 1946 and Bombay Industrial Relations Act, 1946 contributed to strengthening the trade union movement. In general, the movements got more vocal and involved in the national movement.

1947-present: Post-independence trade unionism

It was marked by the proliferation of unions. INTUC was formed in May 1947 under the aegis of Sardar Vallabhbhai Patel. Since then, the AITUC has come to be dominated by the Communists. Hind Mazdoor Sabha was formed in 1948 under the banner of Praja Socialist Party. Later on, it came under the influence of Socialists. Bharatiya Mazdoor Sangh was founded in 1955 and is currently affiliated to the BJP.

Post-independence, trade unions became increasingly tied with party politics. Rise of regional parties has led to a proliferation in their numbers with each party opting to create its trade union. However, their influence has been somewhat reduced after the liberalisation post-1991. Issues like labour code reforms and minimum wage remains a political hot potato due to the opposition from the trade union leadership.

Post-independence, India has also witnessed different unions coming together to address a common issue. These include the crippling railway strike of 1974 and the Great Bombay textile strike, 1982. However, such strikes are seen to get less public support post-1991. There is also an increased focus on informal labour. This is due to the particularly vulnerable situation of unorganised labour. All major trade unions have registered an increase in their membership from the unorganised sector.

Trade Unions in India are registered and file annual returns under the Trade Union Act (1926). Statistics on Trade Unions are collected annually by the Labour Bureau of the Ministry of Labour, Government of India. As per the latest data, released for 2012, there were 16,154 trade unions which had a combined membership of 9.18 million (based on returns from 15 States out of a total of 28 States and 9 Union Territories). The Trade Union movement in India is largely divided along political lines and follows a pre-Independence pattern of overlapping interactions between political parties and unions. The net result of this type of system is debated as it has both advantages and disadvantages. AITUC is the Largest Trade union of India.

The firm or industry level trade unions are often affiliated to larger Federations. The largest Federations in the country represent labour at the National level and are known as Central Trade Union Organisations (CTUO). As of 2002, when the last Trade Union verification was carried out, there are 12 CTUOs recognised by the Ministry of Labour.

The first phase falls between 1850 and 1900 during which the inception of trade unions took place. During this period of the growth of Indian Capitalist enterprises, the working and living conditions of the labor were poor and their working hours were long. Capitalists were only interested in their productivity and profitability. In addition to long working hours, their wages were low and general economic conditions were poor in industries. In order to regulate the working hours and other service conditions of the Indian textile labourers,the Indian Factories Act was enacted in 1881. As a result, employment of child labor was prohibited. Mr. N M Lokhande organized people like Rickshaw walas etc., prepared a study report on their working conditions and submitted it to the Factory Labor Commission. The Indian Factory Act of 1881was amended in 1891 due to his efforts. Guided by educated philanthropists and social workers like Mr. Lokhande, the growth of trade union movement was slow in this phase. Many strikes took place in the two decades following 1880 in all industrial cities.These strikes taught workers to understand the power of united action even though there was no union in real terms. Small associations like Bombay Mill-Hands Association came up.

The second phase of The Indian trade union movement falls between 1900 and 1947. This phase was characterized by the development of organized trade unions and political movements of the working class. It also witnessed the emergence of militant trade unionism. The First World War (1914-1918) and the Russian revolution of 1917 gave a new turn to the Indian trade union movement and organized efforts on part of the workers to form trade unions. In 1918, B P Wadia organized trade union movements with Textile mills in Madras. He served strike notice to them and workers appealed to Madras High Court because under ‘Common Law’, strike is a breach of law. In 1919, Mahatma Gandhi suggested to let individual struggle be a Mass movement. In 1920, the First National Trade union organization (The All ndia Trade Union Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative from 1927.

The third phase began with the emergence of independent India (in 1947), and the Governments ought the cooperation of the unions for planned economic development. The working class movement was also politicized along the lines of political parties. For instance Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors and managers are also organized by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

The setting up of textile and clothing mills around the port cities of Bombay (now Mumbai), Calcutta (now Kolkata), Madras (now Chennai) and Surat in the second half of the 19th century led to the beginnings of the industrial workforce in India. Several incidents of strikes and protests by workers have been recorded during this time. The credit for the first association of Indian workers is generally given to the Bombay Mill-Hands Association founded by N.M. Lokhande in 1890. This was in the period just after the passing of the ‘First’ Factories Act in 1881 by the British Government of the time. The following years saw the formation of several labour associations and unions. The first clearly registered trade-union is considered to be the Madras Labour Union founded by B.P. Wadia in 1918, while the first trade union federation to be set up was the All India Trade Union Congress in 1920.

Following the rapid growth of unions around the time of the First World War, the Russian Revolution and the setting up of the ILO industrial conflict began to increase and over 1,000 strikes were recorded between 1920 and 1924. The waves of strikes boiled over with the arrest of prominent leaders and trade-unionists in the infamous ‘Cawnpore Conspiracy case’ in 1924 with the union leaders being arrested and accused of attempting a Communist revolution to try and overthrow the ruling British government. Subsequently, the Trade Union Act (1926) was passed which created the rules for the regulation and closer monitoring of Trade Unions. In the first year of the law’s operation, 28 unions registered and submitted returns with a total membership 100,619. The number of unions grew rapidly after that and by the time of Independence of India in 1947, there were 2,766 unions registered which had a combined membership of over 1.66 million. This resulted in a wide influence of unions and workers’ organisations and led to significantly favourable social legislation being enacted in the first decade of Independence. Several important labour laws were passed during this time.

Independence (1947) to liberalisation (1991)

Following its Independence in 1947 and the formation of the Republic in 1950, India largely followed a Socialist economic approach encouraging public sector employment and pro-worker legislations. The trade-union movement reflected the main political divisions of the time and was divided mainly along Socialist and Communist lines. The subsequent decades saw significant expansion in trade union membership with the number of active unions reaching its peak in the mid-1970s and mid-1980s. While the 1970s in India was a period characterised by political instability, the 1980s was characterised by the beginnings of a distinct turn towards more market-friendly policies, support for industrialists and an implicit opposition to workers. Two key events during this period were the 1974 railway strike in India and the Great Bombay textile strike of 1982, the latter of which subsequently led to a long and complicated stalemate.

Liberalisation (1991) to present

The period following the Economic liberalisation in 1991 was characterised by declining government intervention in the economy, a decline in the creation of public sector employment and encouragement for the private sector. Efforts for unionisation in the private sectors were often met with opposition and the wider general withdrawal of State support for workers further undermined their bargaining power. These policies led to a stagnation in the number of unionised formal sector workers.

A gradual shift in focus about the importance of the Informal sector and ‘Informal employment in the formal sector’ from the late 1990s onwards meant that trade unions also began to focus on these workers. This has led to greater enrolment of these workers and subsequently led to increases in union membership. The Central Trade Union Organisations (CTU’s) increased their combined membership from 13.21 million in 1989 to 24.85 million in 2002. Almost all the CTUOs now have at least 20 percent of their official members coming from the informal sector.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers’ compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

Levels

At the National Level:

At the national level the bargaining is mutual and agreements usually take the form of ‘bipartite agreements’ entered into between labour union and managements in the presence of the government representatives. The agreement entered into between Indian Tea Association, Indian Tea Planters Association and Hind Mazdoor Sabha (HMS) and INTUC is an example of collective bargaining at the national level.

At the Industry Level:

Here all unions of an industry enter into an agreement with the employers in general. In India, collective bargaining of this type is very popular in textile industry where agreements are reached between labour unions and the various management bodies.

At Plant Level:

Such a bargaining is limited to a particular unit or undertaking enterprise only.

Collective bargaining is a joint decision-making process by employers and employees. Therefore, its effectiveness depends on their attitudes and the relevant environment in which collective bargaining takes place. If these factors are conducive, collecting bargaining may be a good mechanism for preventing the emergence of industrial disputes.

The parties must attain a sufficient degree of organisation. If the workers’ organisation is weak, employers can say that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful.

Stability of Trade Unions:

In any democratic country, employees have fundamental rights to organize trade unions or other associations for protecting their interest. The right to organize is a positive feature for collective bargaining as employees may negotiate with management on equal footing. However, mere right to organize does not ensure stability of employees’ associations in the form of trade unions.

The indiscriminate use of the right for organizing leads to multiplicity of trade unions with conflicting approaches, and sometimes even objectives, making the total industrial relations system including collective bargaining unworkable. In India, multiplicity of unions and inter-union rivalry have wrecked the system of collective bargaining. Where it has succeeded, it is due to single union which has been recognized by the management.

• Trade unions must encourage internal union democracy and have period consultations with the rank and file members.
• Both parties should try to solve the problems through negotiations sincerely and honestly.
• Both parties (employer and employees) should realise the need of collective bargaining.
• A single plant bargaining is considered better than a multiple plant bargaining. In single plant bargaining, there is a bargain between a single employer and single union.
• The management should pay reasonable wages and any unfair labour practice should be avoided.
• Both parties should present facts and figures on the discussion table. Their approach should be constructive in order to resolve the problems.
• Both parties should ensure that agreement reached is respected and implemented and industrial peace is established.
• If any agreement is reached, it must be a written document.
• There should be a provision for arbitration if there is any dispute regarding interpretation of agreement and its implementation.

Trade unionism, as a movement, has made considerable progress in our country, yet they have not grown up on sound lines. Unlike the Western countries, the Indian trade unions have not made the expected progress. They are beset with a number of obstacles that have considerably hampered the proper growth of unionism. Certain conditions must be met to have proper growth of trade unions and in Indian industries, all these conditions are not fully met.

In spite of the fact that our trade unionism is no longer in a state of infancy, the movement of unionism is not as strong as it should be. Multiplicity of trade unions, disunity in the rank of workers, lack of education among the working force, lack of resources, political rivalries etc., are many of the diverse causes responsible for the slow growth of trade unionism in our country.

The various problems of trade unionism can be broadly put under two headings:

1. Internal Problems
2. External Problems

1. Internal Problems:

Internal problems are related to labour. Indian labour has certain peculiar traits. Some of these traits have proved to be obstacles in the proper growth of unionism.

The internal factors responsible for the slow growth of Indian trade unions are:

• Migratory Character:

Healthy trade unionism requires the existence of a stable industrial population, which is largely absent in India. The migratory nature and the consequent lack of proper commitment of industrial workers have acted as a great hindrance to the development of sound and stable trade unions in India.

The workers who are frequently changing an industrial centre and are frequently changing their employer are less inclined to maintain a keen and constant interest in any organisation. An ultimate escape from the industry by many workers to go back to their villages tend to diminish their enthusiasm for collective efforts to their working conditions.

• Heterogeneous Character:

In every big industrial centre, one can find workers coming from almost all regions of India. These workers differ inter se in regard to language, religion, race, caste, habits of food and dress etc. Thus the workers of Indian industry are very heterogeneous in character. This weakness among the workers has often been exploited by the employers by following the policy of divide and rule. Thus heterogeneous character of the workers has proved to be a great hindrance in building up labour solidarity.

• Poor Economic Conditions:

The general poverty and low level of wages have been the other obstacle in the stable trade unions in India. The earnings of the workers have been low. They can barely meet the expenses of their family. They are usually under debt also. Under such conditions, it becomes difficult for the workers to contribute even a smaller subscription to the union funds. Further, they are unable to bear the strain of strikes and lockouts due to their poor economic conditions. Thus low economic standards and poverty of the workers come in the way of the growth and development of trade unions.

• illiterate Labour:

The Indian labourers are illiterate and ignorant and there is absence of democratic spirit among them. Illiterate workers are not fully conscious of their duties. They fall easy prey to the tactics of opposite groups. Without any proper reason, they may go on strikes and indulge in subversion.

They do not understand the true role and functions of trade unions. For generations, they have become accustomed to be ruled and have developed slavish mentality and inferiority complex. As such, many workers are incapable of thinking in terms of any organised effort on their part.

• Ineffective Leadership:

Indian workers lack the ability, capacity and courage for leadership. Generally, social reformers, lawyers or politicians hold the leadership posts of trade unions. These persons may be rude, selfish and self-seeking. They do not have first-hand knowledge about the labour problems. They may be indifferent to the true interests of labour.

They do not understand the real difficulties and grievances of the workers. Sometimes they attempt too much and thereby diminish their own effectiveness. Many of the leaders have been opportunists and have their own axe to grind. Now-a-days, most of the leaders belong to some political party and have made the trade unions a platform for the furtherance of their own political ends.

• Lack of Unity:

The trade union movement in our country has received a serious set-back owing to the lack of unity among the various leading organisations of labour. There are numerous trade unions functioning independently in our country. Each one is under the influence of one or the other political party.

The political parties misuse trade unions to further their own political ends. The mutual strife among trade unions weaken the strength of unionism. Due to mutual dissension among trade unions, each agitation is supported by some and opposed by others. This results in half-hearted action or utter failure.

• Low Membership:

Most of the trade unions have low membership and as such lack proper finances, organisation and leadership. The low membership of a union has been mostly due to the larger number of unions and workers are not united, even in the same industry.

Further the trade union activity is generally concentrated in metropolitan centres where large scale industries are located. Here again, it is the manual workers who are covered by trade union activity. The total membership of trade unions is only a small part of the total number of wage-earners.

• Low Standards of Life:

Low standard of living and long hours of work leave the workers with less energy and time to pursue any trade union activity. In the depressed conditions, the workers have failed to promote healthy unionism in our country.

2. External Problems:

No trade union movement can make much progress without the active co-operation among various factors. The role of intermediaries, the jobbers, the industrialists, the labour laws etc., could impede and thwart the growth of trade unionism.

These external obstacles are discussed below:

• Non-Co-Operation of Intermediaries and Jobbers:

The jobbers and intermediaries have been deeply hostile to Indian trade unionism. The trade unions take away the powers of the jobbers, who therefore, try all fair and unfair means to create disunity among the workers and defeat the aims of the trade unions.

The intermediaries, who are mostly the agents of the industrialists, conspire against workers, in workers’ conferences and pass on all the information to the industrialists. Thus the opposition and non- co-operation of intermediaries and jobbers create an obstacle in the growth of trade union activity.

• Opposition by Industrialists:

The majority of the Indian industrialists treat workers organisation nothing but a challenge to their power and authority. They think that the growth of trade unions is not in consonance with their interests. Big industrialists try to undermine and sabotage all efforts to strengthen the trade unions.

Cases have come to light when the employers have victimized trade union workers. They even employ spies, goondas and strike breakers to disrupt the union activities. At times, the industrialists try to win over union leaders by giving them huge bribes. Many times they even refuse to recognise the unions in which they do not find the workers of their liking.

• Political Pressures:

The political parties have been responsible for creating unhealthy rivalries among the trade unionists. Each political party, with the aim to promote its interest, tries to win over the workers. In this process, they create bitter feelings and differences among the working class. Thus rivalry among trade unions and political pressures pose a serious threat to the growth of healthy trade unionism in our country.

• Less Legal Support:

There are no adequate provisions in the government laws and machinery to safeguard the interest of the workers. Law does not give much support to the workers going on strikes etc. The industrialists are better placed to take advantage of law. So lack of proper legal support impedes the growth of trade unionism in India.

• Changing Industrial Scenario:

Our industrial scenario is changing fast due to privatisation, liberalisation and globalisation. Jobs are moving from the organised sector to the informal sector. Many industries are closing down. There are voluntary retirement schemes coming out. There is more computerisation in the industries. All these are reducing the workforce in the organized sector. This is likely to undermine the strength of trade union movement, particularly that of central trade unions.

Although no specific right is granted to any trade union with respect to the right to be recognized, it has become crucial in India to develop a mechanism wherein a trade union is recognized formally by the employer. Recognition is the process through which the employer accepts a particular trade union as having a representative character and hence, will be willing to engage in discussions with the union with respect to the interests of the workers. This process is important so as to ensure smooth collective bargaining and stability of industrial relations. On the other hand, registration of a trade union carries certain inherent benefits with it.

A registered trade union is deemed to be a body corporate, giving it the status of a legal entity that may, inter alia, acquire and hold property, enter into contracts, and sue others. A registered trade union is also immune from certain contractual, criminal and civil proceedings. However, registration is optional and not mandatory. Generally, registration of trade unions under the TU Act does not automatically imply that a particular trade union has gained recognition status granted by the employer. Unless different Indian states have specific legal provisions pertaining to recognition of trade unions, it is generally a matter of agreement between the employer and trade union. Ideally, a trade union must obtain legitimacy through registration under the TU Act and then seek recognition as a sole bargaining agent either under the appropriate law or an employer-employee agreement.

These trade union rights may be divided into categories like:

• Rights of freedom of speech and expression which includes rights of picketing and demonstration.
• Rights regarding the formation and the registration of the trade union.
• Rights regarding the recognition of the trade union by the employers.
• Rights regarding collective bargaining and collective actions.
• Rights regarding conduct and functioning of the trade union.
• Miscellaneous rights.

Recognition of trade union is the backbone of collective bargaining. Management recognizes only recognized trade unions for negotiation and collective bargaining.

In the absence of any central legislation on this subject, management at times refuse to recognize the unions due to following reasons:

• Most of the office bearers being outsiders.
• Multiple unions being in existence.
• Unions having smaller number of employees.
• Trade unions not being registered under Trade Union Act, 1926.

However, International Labour Organization (ILO) has been advising managements to recognize trade unions. Some States Governments have evolved a code of discipline and legislation in this regard.

They accord recognition provided it fulfills the following conditions:

• It has complied with all provisions of the Trade Unions Act, 1926.
• Unions duly observe the code of conduct.
• Unions should have functioned at least for a year after its registration.
• Meeting of the executive should be held at least once in every 6 months.
• All its members are employed in the same industry.
• A trade union once recognized should not make any change in its position for a period of two years. On satisfaction of the above conditions a trade union gets recognition from its employer.

The areas of an individual’s rights and responsibilities depend on his relation with those around him. One belongs to a family. His first and strongest relation, in the normal circumstance, is therefore with members of his family. Then comes his work place, the society around him, the state, his professional and religious group, etc.

In his relation with his family, he has certain rights and responsibilities. Maybe he is a husband and a father. He fulfills his responsibilities and in turn exercises his rights. Similar is the case with other groups as well. The differences are in the manner in which they are established and exercised and also the degree.

Trade unions, unlike a yogi, do not live in isolation. Like family people, they interact with others around. They interact with their members as individuals do with their family members and other social groups. They interact with definite motives, in establishment of a relationship. And such a relationship in turn establishes rights and responsibilities.

The primary objective of trade unions is the welfare of their members. This is achieved by protection and promotion of workers’ interest. In this objective fulfillment, the unions interact with employers, Government, apex bodies, sister organizations, rivals, etc. In this interaction, the unions develop certain relationships, both positive and negative. The State at times interferes and regulates the relationship. The union rights and responsibilities flow from such relationships and State regulations.

The major areas of the union rights and responsibilities can be classified as:

1. In relation to members
2. In relation to employers
3. In relation to Government

Rights and Responsibilities in Relation to their Members:

1. To prescribe membership qualification, admission fee and membership fee. This is normally taken care of in the constitution of the unions.
2. To admit or refuse to admit workers who have applied for membership. The union is not bound to accept any or all those who apply for membership. It reserves the right to exercise its discretion in admission of members.
3. To make working rules and procedure for day-to-day work.
4. To take functional and administrative decisions in day-to-day work of the union.
5. To collect and administer the union fund.
6. To demand loyalty and support from members. The strength of any union depends on its membership, which supports the union in its work.
7. To discipline the members in their relations with the unions and personal life. The unions can take disciplinary action against those members who violate the union rules.
8. To act as legal representative of their members in matters of unions’ own affairs and those related to labour-management relations.

Responsibilities towards Members:

• To conduct election of office bearers and organizational meetings as provided in the constitution of the union.
• To function democratically. This means to function according to the majority’s wishes and as per the constitution of the union.
• To collect union revenues, and meet expenditure as per sanctioned budget.
• To refrain from compelling any members to contribute towards the political fund, if kept.
• To exercise no discrimination between those who subscribe to the political fund and those who do not in their trade union rights.
• To account to the members of the union fund.
• To keep open the records of the union for the benefit of the members if they choose to see them.
• To strive for objective fulfillment of the union. This may be to protect the workers from victimization, low wage payment, irregular wage payment, etc., to promote working and service conditions, i.e. gradually improve the physical environment of the working place, shorter hours of work, longer leave, more wages and fringe benefits, bonus, etc. This in short is collective bargaining.
• To take up individual and collective grievances of members with the management for removal of the same within the agreed working and service conditions. While individual aggrieved workers can singly take up such cases with the management at the initial stage of grievance procedure, the union has a responsibility to involve itself at higher stages, if the grievances are not solved to the satisfaction of the aggrieved workmen.
• To act as the legal representative of the workmen and to enter into agreement with others in defence or promotion of members’ interest. Keep the members intimated of union activities by circular, meetings, etc.

Responsibilities towards the Employer:

• To intimate to the employer the union’s address, names of office bearers and affiliation, if any, and membership strength.
• To supply to the employer a copy of the constitution.
• To intimate to the employer the amendments in the constitution of the union and changes in office bearers, affiliation, etc.
• To intimate to the employer the name of protected workmen.
• To make commitment on behalf of workers and enter into agreement with the employer.
• To try all means for peaceful settlement of disputes before resorting to direct action.
• To take ballot or otherwise know the mind of the members before resorting to strike.
• To give notice of strike before going on strike. This is a legal requirement in public utility service.
• To advise the essential services like firefighting squad, watch and ward, etc. to be on duty even when a general strike is held.
• To honour the agreements, awards, conventions and established practices.
• To represent the grievances of workers to the proper authority designated and in time.
• To co-operate with the employer in the formation and working of:

(i) Works Committee

(ii) Production Committee

(iii) Grievance Committee

(iv) Joint Management Council

(v) Canteen Committee

(vi) Welfare Committee

• To co-operate with management in maintaining discipline in plant life.
• To co-operate with management to increase productivity.

Rights and Responsibilities in Relation to Government:

Labour is a Concurrent subject. This means that both the Central and State Governments have jurisdiction in the subject. However, in certain industries the Central Government enjoys the exclusive right. Oil and oilfields, civil aviation, railways, port and docks, banks, mines and quarries are some examples.

Certain other industries fall under the State Government jurisdiction. But here again certain areas are carved out for the Central Government. Provident Funds, Employees State Insurance Scheme, Wage Boards are examples.

They are so for administrative convenience as well as for uniformity. The rights and responsibilities of trade unions in relation to Government therefore are meant both for Central and State Governments. The rights are conferred and the responsibilities imposed more by legislations and by administrative orders.

The Rights are:

• To register trade unions. By registration a union becomes a corporate body.
• To sue and to be sued in the registered name. A union acquires this right only on registration.
• Immunity from criminal conspiracy. The trade union on registration becomes immune from any charges of criminal conspiracy as well as civil suit.
• To acquire movable and immovable property.
• To have outsiders also as office bearers of unions.
• To receive a copy of draft standing orders submitted by the employer to the certifying authority.
• To suggest modifications to draft standing orders.
• To appeal against the provisions of certified standing orders.
• To suggest amendment to standing orders on expiry of six months from its certification.
• To represent the workmen before Labour Courts, Industrial Tribunal and appellate judicial authorities.
• To represent the union by an officer of a federation of unions.
• To declare protected workmen.
• To represent for recognition of union.
• For enforceability of agreements and awards, Wage Board recommendations and tripartite conclusions.
• Interference of Government industrial relations machinery in case of public utility services.
• To request the Government for adjudication of industrial disputes.
• To cross-examine the employer’s witnesses in industrial adjudication.

1. Conventions/sessions
2. General council (President, VP, Secretary-General, etc.)
3. Provincial bodies (at state level chairman, secretariats)
4. Local bodies (affiliated unions)

National convention/conferences are hold at periodic intervals, say annually or bi-annually. This is the highest policy­making body. This is presided over by the president of the union attended by the delegates such as chairmen of state units, representatives of specialized services, legal experts and delegates from international bodies and special invitees. Office bearers are also elected by this conference.

General council consists of president, vice-president, secretary and other office bearers. It carries out policy decisions taken by convention. Various standing committees are set up on rendering study, analysis and recommendations on various aspects like legislative measure, Research and publications, international services etc.

State units are headed by chairman of state/regional areas. State units also liaise with National Headquarters; keep a close watch of faithful implementation of labour legislation and practices. It assists/influence state government to pass labour friendly legislation and executive/administration actions.

It is also responsible for membership of various unions representing workers in industrial undertakings (units) and/or representing trade and industrial units affiliated to the central trade union. These state units get themselves attached to State/Provincial/HQ/Regional unions/Units.

Headquarters (HQ) unions are responsible for welfare of its members and membership drive. As bargaining agents they are involved in collective bargaining with Central Government/ and or State government and assist passing legislative measures.

Objectives:

(i) The organisation of a trade union on the basis of the craft or industry in which its members are employed, such as general unions and professional employee’s organisations.

(ii) Collective bargaining, which is the essence of industrial relations, for it is through collective bargaining that the terms and conditions of employment are determined and under which work is performed’ satisfactorily.

(iii) Grievance processing and handling procedures, under which grievances are redressed or dealt with by a correction of situation or by channelling up of these “up the line”.

(iv) Arbitration, by which unsettled or unresolved disputes can be settled by an outside agency.

(v) Political pressure exercised through legislators who are capable of bringing about changes in labour laws; and

(vi) Mutual insurance through common contributions to meet the financial needs of workers when there are stoppages of work.

Characteristics of Trade Union:

• A union normally represents members in many companies throughout the industry or occupation.
• A union is fundamentally an employer regulating device. It sharpens management efficiency and performance while protecting the interests of the members.
• A union is a part of the working class movement.
• A union is a pressure organisation originating in the desire on the part of a group with relatively little power to influence the action of a group with relatively more power.
• A union is a political institution in its internal structure and procedures.

Good industrial relations depend on the co-operative and constructive attitude from both part as management & union. Still there exist some certain conditions/principles/essentials that helps to maintain harmonious industrial relations:

Mutual and Voluntary Negotiations:

The relationship between an employee and the employer will be congenial only, where the difference between them are settled through mutual negotiations and consultations. Collective beginning is a process, through which employee issues are settled, through mutual discussions and negotiations, through a give and take approach.

Efficient management:

To reduce disputes & other conflicts, efficient management helps to maintain good IR.

Existence of Organised Employers Unions:

These associations are helpful for the promotion and maintenance of uniform personnel policies, among various organisations and to protect the interest of weak-employers.

Proper democratic environment:

Proper democratic environment in any enterprise is essential in order to maintain a sound IR.

Existence of Democratic Employee is Unions:

Industrial, relations are sound only when the bargaining power of the employees’ unions, is equal to that of management

Existence of strong, organized trade unions:

Sound IR requires equality of bargaining power of the workers’ union & management. A strong trade union can protect the workers’ interests relating to wage, job security etc.

Existence of sound, organized employers’ unions

All organizations within industry must follow identical policy, rules and regulation in order to maintain a sound IR.

Spirit of collective bargaining:

Collective bargaining means, negotiation between an employer and a labor union usually on wages, hours, and working conditions. Here it means both parties must consider each other for removing conflict.

IR is dynamic in nature. The nature of IR can be seen as an outcome of complex set of transactions among the major players such as the employers, the employees, the trade union, and the state in a given socio-economic context. In a sense, change in the nature of IR has become sine quo non with change in the socio-economic context of a country.

During this period the industry (both employees and employers) faced severe problems like:

• Poor working condition
• Poor wages
• Absence of job security
• Absence of welfare activities
• Employee’s strike
• Low productivity
• Long working hours
• Absence of skilled labour

Keeping this fact in view, IR in India is presented under the following two sections:

1. IR during Pre- Independence
2. IR during Post-Independence

1. IR During Pre-Independence:

The structure of the colonial economy, the labour policies of colonial government, the ideological composition of the political leadership, the dynamics of political struggle for independence, all these shaped the colonial model of industrial relations in pre-independent India”. Then even union movement was an important part of the independence movement.

However, the colonial dynamics of the union movement along with the aggressiveness of alien capital, the ambivalence of the native capital and the experience of the outside political leadership frustrated the process of building up of industrial relations institutions. Other factors like the ideology of Gandhian class harmony, late entry of leftists and the bourgeois character of congress also weakened the class approach to the Indian society and industrial conflict”.

Till the Second World War, the attitude of the colonial government toward industrial relations was a passive regulator only Because, it could provide, that too only after due pressure, the —um of protective and regulative legal framework for industrial relations Trade Union Act 1926 (TL A) Trade Disputes Act 1929 (TDA). It was the economic emergence of the Second World War that altered the colonial government’s attitude on industrial relations.

The state intervention began in the form of introduction of several war time measures, viz. the Defense of India Rules (Rule 81- A), National Service (Technical Personnel) Ordinance, and the Essential Service (Maintenance) Ordinance As such in a marked contrast to its earlier stance, the colonial government imposed extensive and pervasive controls on industrial relations by the closing years of its era-. Statutory regulation of industrial relations was on plank of its labour policy. The joint consultative institutions were established primarily to arrive at uniform and agreeable labour policy.

The salient features of the colonial model of IR can be summarized as close association between political and trade union movement, dominance of ‘outsiders’ in the union movement, state intervention and federal and tripartite consultations.

The eve of Independence witnessed several instances that served as threshold plank for IR during post Independence era. The prominent instances to mention are passing of Indian Trade Unions (Amendment) Act, 1947, Industrial Employment (Standing Orders) Act 1946, Bombay Industrial Relations Act, 1946, and Industrial Disputes Act, 1947 and split in AITUC and formation of INTUC.

2. IR During Post-Independence:

Though Independent India got an opportunity to restructure the industrial relations system the colonial model of IR remained in practice for sometimes due to various reasons like the social, political and economic implications of partition, social tension, continuing industrial unrest, communist insurgency, conflict, and competition in the trade union movement. In the process of consultation and confrontation, gradually the structure of the industrial relations system (IRS) evolved.

State intervention in the IRS was a part of the interventionist approach to the management of industrial economy. Several considerations like unequal distribution of power in the labour market, neutrality of the state, incompatibility of free collective bargaining institution with economic planning etc. provided moral justification for retaining state intervention in the IRS. State intervention in the IRS is logical also when the state holds large stakes in the industrial sector of the economy.

However state intervention does not mean suppression of trade unions and collective bargaining institution. In fact, state intervention and collective bargaining were considered as complementary to each other. Gradually, various tripartite and bipartite institutions were introduced to supplement the state intervention in the IRS.

The tripartite process was considered as an important instrument of involving participation of pressure groups in the state managed system. Non formal ways were evolved to do what the formal system did not legistate, for one reason or other.

The political and economic forces in the mid 1960s aggravated industrial conflict and rendered non-formal system ineffective. In the process of reviewing the system, National Commission on Labour (NCL) was appointed in 1966.

Now the focus of restructuring shifted from political to intellectual. However, yet another opportunity was lost when there was an impasse on the NCL recommendations in 1972. The Janta Government in 1978 made, of course, a half-hearted attempt to reform industrial relations. Unfortunately, the attempt met with strong opposition from all unions. The BMS, for example, termed it as “a piece of anti-labour, authoritarian and dangerous legislation””.

Several committees were appointed to suggest measures for reforming die IRS. In the process, tripartism was revived in 1980s. Government passed the Trade unions and the Industrial Disputes (Amendment) Bill, 1988. But, it also proved yet another legislative disaster. The bill was severely criticised by the left parties. It was even viewed by some as a deliberate attempt to destroy “autonomous; organised or militant trade union movement”.