HUMAN RESOURCE MANAGEMENT V S P RAO EXCEL BOOKS

1. TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS Chapter EXCEL BOOKS 25-1 25

6. 25-6 The Legal Framework The Trade Union Act, 1926 legalises the formation of trade unions by any seven persons employed in a unit quite easily. A registered union has certain advantages to its credit. Due to inter union and intra union rivalry, it is not easy to carry out negotiations with a recognised union in India. The Act, of course, has not cleared the fog either. Trade Unions And Employers’ Associations

7. 25-7 The Bombay Industrial Relations Act, 1946, classified the registered unions as: i. Representative union having a membership of not less than 25% of the total employees as members in an industry; ii. Qualified union having at least 5% of membership in an industry; and iii. Primary union having a membership of at least 15% of employees in an undertaking. The rights of a Representative union under the Act are: a. First preference to appear or act in any proceedings under the Act as the representative of employees; b. Right to submit a dispute for arbitration; c. To make a special application to the Labour Court to hold an inquiry; and d. Office-bearers of the union cannot be dismissed or discharged. Trade Unions And Employers’ Associations Union recognition: criteria and rights

8. 25-8 Collective bargaining can succeed only when the employer recognises a trade union as the sole bargaining agent (in a multi-union situation) and agrees to negotiate with it on various issues affecting the lives of workers. A union may be strong, having a large majority of workers standing by its side, but unless it is recognised by the employer it will not be able to deliver the goods. If the employer refuses to recognise such a fact, for any reason whatsoever, it may not be able to obtain any concessions for its members. Denial of recognition to a union enjoying majority may lead both parties to a tug-of-war situation, seriously impacting industrial activities. Since there is no Central Law for compulsory recognition of unions, the employers are free to recognise any union of their own choice. In a multi-union situation the employer is compelled to verify the claims of contending unions in a careful way, following the procedure recommended by the 16th Tripartite Labour Conference, 1958. The employer, by and large, is also free to grant recognition to any union, purely guided by his whims or political strength of the union. Trade Unions And Employers’ Associations Employer decides everything?

10. 25-10 Verification of trade union membership The majority character of a union is not easy to decide because of claims and counter claims from warring factions. Proper membership records, often, are not available. There is the problem of common names appearing in the registers of more than one union. Union leaders often divide workers along caste, community, religion, linguistic and regional lines. The check off system (whereby members pay their respective fee directly into the account of the union concerned) is offered as a viable alternative to solve the knotty issue. Trade Unions And Employers’ Associations The Legal Framework

15. 25-15 Measures to strengthen trade union movement In order to strengthen the trade union movement in the country, there is an urgent need to improve trade union finances, develop leaders from the ranks of workers, recognise a bargaining agent on the basis of strong membership figures, promote one union one industry policy, strict criteria for recognising a representative union , strong political support for labour-related issues etc. Trade Unions And Employers’ Associations

16. 25-16 Employers’ Associations Trade Unions And Employers’ Associations Employers’ associations are formed, primarily, to promote and protect the interests of employers in trade and industry. Objectives Employers’ Associations are formed to promote and protect interests of employers in trade and industry. They are “formal groups of employers set up to defend, represent or advise affiliated employers”. They perform several important functions: Primary a. Promote and protect the interests of employers engaged in industry, trade and commerce in India. b. Study, analyse and disseminate information relating to labour policy, labour- management relations, collective bargaining, etc. c. Offer advice concerning various aspects of labour policy. d. Liaise with Union Government and initiate steps that are representative and legislative in nature. Cont…

17. 25-17 Secondary e. Train and develop staff and members. f. Obtain data on wages and conditions of work in industries attached to them. g. Come out with surveys, research-based reports on issues of importance to both labour and management. h. Take up projects for social and family welfare. i. Deal with safety and health at work place and working environment. j. Initiate steps to improve public image and improve public relations. k. Educate the public regarding the character, scope, importance and needs of trade, industry and commerce represented by members. Trade Unions And Employers’ Associations Employers’ Associations