Outline the concept, nature and importance of

Trade Unions.
Originating in Europe, Labour unions became popular in many countries
during the Industrial Revolution, when the lack of skill necessary to perform
the jobs shifted employment bargaining power almost completely to the
employers' side, causing many workers to be mistreated and underpaid. But,
over the years, the contractual relationship between the employer and the
employee has undergone several changes. Managerial indiscretions,
whimsical actions and one-sided exploitative acts have no place in the
industrial relations scene today.

A union is a legal entity consisting of employees or workers having a common

interest. It is formed for the purpose of collectively negotiating with
employer(s) over wages, working hours and other terms and conditions of
employment. Unions also often use their organisational strength to advocate
for social policies and legislation favourable to their members or to workers in
general.

A trade union (or labour union) is an organisation of workers who have

banded together to achieve common goals in key areas (such as working
conditions) and protecting and promoting their mutual interests through
collective action. The trade union, through its leadership, bargains with the
employer or the management on behalf of union members and negotiates
labour contracts (viz. negotiation of wages, work rules, complaint procedures,
rules governing hiring, firing and promotion of workers, benefits, workplace
safety and policies) with them. This process is called “Collective Bargaining”.

Sidney and Beatrice Webb define a trade union as “a continuous association

of wage earners for the purpose of maintaining and improving the conditions
of their working life.” This classical definition still holds good so far as actual
practices of unions are concerned.

Under the Trade Union Act, 1926, this term is defined as any combination
whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workmen and employers, or imposing
restrictive conditions on the conduct of any trade or business, and includes
any federation of two or more trade unions. In other words, the term union
applies not only to combination and associations of employees only, but also
to that of the employers.

The general features of Trade Unions are as under:

 The Trade Union is an association either of employees or employers or

of independent workers.
 Labour Union is relatively a permanent formation of workers and is not
temporary or casual.
  Trade Union is an association of workers who are engaged in securing
economic benefits for its members.
 It emphasises joint, coordinated action and collective bargaining.
 The charter of Trade Unions has been constantly changing. They are
now legalised and recognised gigantic associations, interested in the
social, cultural and political development of the country. However, the
modern trade union retains four characteristics from its early origins:

i. It is economically-oriented.
ii. It is an instrument of defence.
iii. It implies class distinction.
iv. It is an outcome of an individualistic society.

Over the last few centuries, many trade unions have developed into a
number of forms, influenced by differing political and economic regimes. The
immediate objectives and activities of trade unions vary, but may include:

• Provision of benefits to members: Early trade unions, like Friendly

Societies, often provided a range of benefits to insure members against
unemployment, ill health, old age and funeral expenses. In many
developed countries, these functions have been assumed by the state;
however, the provision of professional training, legal advice and
representation for members is still an important benefit of trade union
membership.
• Collective bargaining: Where trade unions are able to operate openly
and are recognized by employers, they may negotiate with employers
over wages and working conditions.
• Industrial action: Trade unions may enforce strikes or resistance to
lockouts in furtherance of particular goals.
• Political activity: Trade unions may promote legislation favourable to
the interests of their members or workers as a whole. To this end they
may pursue campaigns, undertake lobbying, or financially support
individual candidates or parties for public office.

The underlying idea of forming a trade union is to acquire collective strength

for:

i) Protecting and advancing terms and conditions of employment of its

members;

ii) Negotiating and setting terms and conditions of employment and

remuneration;

iii) Improving the status and working and living conditions of workers;

iv) Promoting economic and social interests of its members.

Some unions have also as their objectives to undertake social security

measures where the State has not assumed this responsibility, and organise
welfare activities and organise them to become literate leaders and union-
conscious.

Functions of Trade Unions:

The functions of trade unions can be divide into the following categories, viz,:

a. Militant or protective or intra-mural functions: these functions include

protecting the workers’ interests, i.e., hike in wages, providing more
benefits, job security, etc., through collective bargaining and direct
actions such as strikes, etc.
b. Fraternal or extra-mural functions: These functions include providing
financial and non-financial assistance to workers during the periods of
strikes and lock outs, extension of medical facilities during slackness
and causalities, provision of education, recreation, recreational and
housing facilities, provision of social and religious benefits, etc.
c. Political functions: These functions include affiliating the union to a
political party in enrolling members, collecting donations, seeking the
help of political parties during the periods of strikes and lockouts.
d. Social functions: These functions include carrying out social service
activities, discharging social responsibilities through various sections of
the society, like educating the customers.

Importance Of Trade Unions:

Trade Unions have become an integral and powerful factor in the

contemporary system of production and distribution of goods and services.
They are now exercising a strong influence on the methods of production of
goods and services, their distribution, the allocation of economic resources,
the volume of employment and unemployment, the character of rights and
privileges, policies of governments, the attitude and status of large masses of
population, and the very nature of economic and social organisations.

The existence of a strong and recognized trade union is a pre-requisite to

industrial peace. Decisions taken through the process of collective bargaining
and negotiations between employer and unions are more influential. Trade
unions play an important role and are helpful in effective communication
between the workers and the management. They provide the advice and
support to ensure that the differences of opinion do not turn into major
conflicts. The central function of a trade union is to represent people at work.
But they also have a wider role in protecting their interests. They also play an
important educational role, organizing courses for their members on a wide
range of matters. Seeking a healthy and safe working environment is also
prominent feature of union activity.

Trade unions help in accelerated pace of economic development in many

ways as follows:

• by helping in the recruitment and selection of workers.

 • by inculcating discipline among the workforce.
• by enabling settlement of industrial disputes in a rational manner.
• by helping social adjustments. Workers have to adjust themselves to
the new working conditions, the new rules and policies. Workers
coming from different backgrounds may become disorganized,
unsatisfied and frustrated. Unions help them in such adjustment.

Trade unions are a part of society and as such, have to take into
consideration the national integration as well. Some important social
responsibilities of trade unions include:

• Promoting and maintaining national integration by reducing the

number of industrial disputes.
• Incorporating a sense of corporate social responsibility in workers.
• Achieving industrial peace.

Conclusion:

The trade unions are organised by workers to solve their problems created by
modern industry. They are voluntary associations of workers formed to
promote and protect their interests by collective action. They play different
roles; for example, they act as agents of the Government and help it in
maintaining social discipline and in administering its policies. They act as
partners in facilitating change in a more or less formalised manner. They play
a role as sectional bargainers—plant-wise or industry-wise ensuring with a
view to acceptance of their demands. They play a role as class-bargainers, on
behalf of civil servants as a class, each demanding a fair share in the national
income. They act as enemies of the industrial system, sabotaging production,
encouraging excessive consumption aspirations on the part of workers, such
as higher wages, higher bonus, etc.

To achieve their objectives, trade unions may employ a variety of means-

depending on the attitude of the unions regarding the economic system in
which they operate; the degree of group and class consciousness among
workers, the nature of political organisation; and the nature and type of trade
union leadership.