1. LABOUR RELATIONS & COLLECTIVE BARGAIN
A trade union (British English), labour union (Canadian English) or labor union
(American English is an organization of workers who have banded together to achieve
common goals such as protecting the integrity of its trade, achieving higher pay, increasing
the number of employees an employer hires, and better working conditions. The trade union,
through its leadership, bargains with the employer on behalf of union members (rank and file
members) and negotiates labour contracts (collective bargaining) with employers. The most
common purpose of these associations or unions is "maintaining or improving the conditions
of their employment".
This may include the negotiation of wages, work rules, complaint procedures, rules
governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
The agreements negotiated by an union are binding on the rank and file members and the
employer and in some cases on other non-member workers. Trade unions traditionally have a
constitution which details the governance of their bargaining unit and also have governance
at various levels of government depending on the industry that binds them legally to their
negotiations and functioning.
Originating in Europe, trades unions became popular in many countries during the Industrial
Revolution, when the lack of skill necessary to perform most jobs shifted employment
bargaining power almost completely to the employers' side, causing many workers to be
mistreated and underpaid. Trade unions may be composed of individual workers,
professionals, past workers, students, apprentices and/or the unemployed.
Aside from collective bargaining, activities vary, but may include:
• Provision of benefits to members: Early trades unions, 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.
• Protection of workers: Unions prevent exploitation of workers, increase their wages
thereby reducing inequality.
• Industrial actio: Trades unions may enforce strike or resistance to lockout in
furtherance of particular goals.
• Political activity: Trades 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 (such as the
labour party in Britain) for public office. In some countries, trades unions may be
invited to participate in government hearings about educational or other labour market
reforms.
LABOUR LEGISLATIONS

2. The term `labour legislation’ is used to cover all the laws which have been enacted to deal
with “employment and non-employment” wages, working conditions, industrial relations,
social security and welfare of persons employed in industries.
Organized industry in a planned economy calls for the spirit of co-operation and mutual
dependence for attaining the common purpose of greater, better and cheaper production.
¬ Since this has not been happening voluntarily, the need for State intervention.
¬ In India, labour legislation is treated as an arm of the State for the regulation of working
and living conditions of workers.
¬ The need for labour legislation may be summarized as under:
o Necessary for the health, safety, and welfare of workers;
o Necessary to protect workers against oppressive terms as individual worker is economically
weak and has little bargaining power;
o To encourage and facilitate the workers in the organization;
o To deal with industrial disputes;
o To enforce social insurance and labour welfare schemes.
Objectives:
¬ The objectives of labour legislations are two-fold:
o Preservation of the health, safety and welfare of workers; and
o Maintenance of good relations between employers and employees.
Principles of labour legislation:
¬ Social Justice:
o The essence of democracy is ensuring social justice to all sections of the community.
o This demands the protection of those who cannot protect themselves.
o In modern industrial set-up, workers, left to themselves, are unable to protect their interest.
o Therefore, the State has to intervene to help them by granting them freedom of association,
the power of collective bargaining and by providing for mediation or arbitration in the case of
industrial conflict.
Labour Legislation in India:
¬ In India, we have many labour laws that affect the labour conditions. The main laws are:
o The Factories Act, 1948.
o The Trade Union Act, 1926.
o The Industrial Disputes Act, 1947.
o The Payment of Wages Act, 1936.
o The Minimum Wages Act, 1948.
o The Equal Remuneration Act, 1976.
STRUCTURE OF TRADE UNION
Trade unions may, for the purpose of analysis, be divided into a number of categories, as
follows:

3. Craft union : The earliest form of trade union , one whose membership is restricted to a
particular category of skilled or craft workers , for instance, printers, carpenters and so on.
Membership of craft unions is usually restricted to those who have completed the recognised
qualification for the craft or skill in question, frequently an apprenticeship. Being closed
unions (see below), craft unions may be quite small: for example, the National Union of
Sheet Metal Workers of Ireland has 720 members as of January 1992, and the Cork Operative
Butchers' Society 149 members at the same date.
General union : A trade union which has no form of restriction on categories of worker who
may join. There are no limits on the industrial or occupational area of recruitment. As such,
general unions are open unions (see below), and tend to be fairly large. The largest general
union in Ireland, the Services, Industrial, Professional and Technical Union (SIPTU), has
190,500 members in the Republic of Ireland as of December 1992 and amounts to 43 per
cent. of the Republic's total ICTUaffiliated trade union membership. As some trade unions
move away from their original areas of recruitment, so they may become more like general
unions; for example, the British-based union EETPU (now amalgamated with the engineering
union AEU to become AEEU) which was originally a craft union, has now moved into a
number of other sectors and recruited many semiskilled workers, thus having become closer
to a general union than a craft union. Similarly, the retail and distributive union IDATU has
widened its areas of recruitment.
Industry union : A union which confines its recruitment to one particular industry or
industrial sector, and aims to recruit all workers at all grades in that area. There are very few
"pure" industrial unions in Ireland, but the Communications Workers' Union is the most
prominent union in the postal and telecommunications sector, and the non-ICTU National
Busworkers' Union competes with SIPTU in recruiting workers in the two CIE bus
companies. In attempting to recruit all grades of workers in the industry, industry unions are
therefore vertical unions; however, the existence of the Communication Managers' Union
blocks the CWU's attempts to recruit managerial staff.
Occupational union : A union which confines its recruitment to particular occupational
areas, many of which may require the holding of certain qualifications in the same way as
craft unions. Occupational unions mainly exist in the white-collar area: for teachers, civil
servants, police, bank employees and so on. Many Irish occupational unions are structured
along the lines of grade or type of staff: for example, membership of civil service unions is
highly structured according to grade, and the four teaching unions respectively represent
primary, secondary, vocational and university teachers. Occupational unions also exist for
workers in the health services, but these are more commonly referred to as professional
unions.
Professional unions : Unions whose membership is restricted to members of the same or
similar professional areas. Professional unions are thus another form of craft union, but
members of these unions would regard themselves as being of a higher status. Examples of
professional unions are the National Union of Journalists and unions representing health
professionals, such as those for doctors or nurses, and teaching unions. Most health unions
are not affiliated to the ICTU, with the exception of the Irish Nurses' Organisation which
affiliated in 1990.
Vertical union : A union which recruits vertically through grades; in other words, workers
from the lowest "shop-floor" grade up to management are recruited. Many professional

4. unions are vertical: for example, those representing nurses and teachers, among others. The
difficulty with vertical unions is the potential they contain for conflict between the grades,
which may be manifested in different views on what union policy should be in a particular
area, or even in cases where the management structure means that the workers in dispute and
the managers against whom the dispute is taken are in the same union.
White-collar union : A union which recruits primarily whitecollar workers, in other words,
non-manual workers. Whitecollar unions represent general clerical workers and workers from
the services sector, including financial services. The main expansion in trade union
membership since the 1960s has been in this area. The largest white-collar union is the MSF,
although the general unions have a large proportion of white-collar workers in membership,
and trade unions representing clerical grades in the civil service and local government may
also be classed as whitecollar.
COLLECTIVE BARGAINING
Collective Bargaining
Under a collective bargaining system, union and management negotiate with each other to
develop the work rules.
The performance of the mutual obligation of the employer and the representative of the
employees to meet at reasonable times and confer in good faith with respect to wages, hours,
and other terms and conditions of employment, or the negotiation of an agreement, or any
question arising there under, and the execution of a written contract incorporating any
agreement reached if requested by either party; such obligation does not compel either party
to agree to a proposal or require the making of a concession.
Labor Management Relations and Collective Bargaining
Forms of Bargaining Structures AND Union/ Management Relationships--The
bargaining
structure can affect the conduct of collective bargaining. The four major structures are one
company dealing with a single union, several companies dealing with a single union, several
unions
dealing with a single company, and several companies dealing with several unions. Types of
union/management relations that may exist in an organization are conflict, armed truce,
power
bargaining, accommodation, cooperation, and collusion.
The Collective Bargaining Process--Both external and internal environmental factors can
influence the process. The first step in the collective bargaining process is preparing for
negotiations. This step is often extensive and ongoing for both union and management. After
the
issues to be negotiated have been determined, the two sides confer to reach a mutually
acceptable
contract. Although breakdowns in negotiations can occur, both labor and management have at
their disposal tools and arguments that can be used to convince the other side to accept their
views.

5. Eventually, however, management and the union usually reach an agreement that defines the
rules
of the game for the duration of the contract. The next step is for the union membership to
ratify
the agreement. There is a feedback loop from "Administration of the Agreement" to
"Preparing
for Negotiation." Collective bargaining is a continuous and dynamic process, and preparing
for the
next round of negotiations often begins the moment a contract is ratified
The Psychological Aspects Of Collective Bargaining
a. Preparing For Negotiations
Bargaining issues can be divided into three categories: mandatory, permissive, and
prohibited.
Mandatory Bargaining Issues--Fall within the definition of wages, hours, and other terms
and conditions of employment.
Permissive Bargaining Issues--May be raised, but neither side may insist that they be
bargained over.
Prohibited Bargaining Issues--Are statutorily outlawed.
b. Bargaining Issues
The document that results from the collective bargaining process is known as a labor
agreement or contract. Certain topics are included in virtually all labor agreements.
Recognition--Its purpose is to identify the union that is recognized as the bargaining
representative and to describe the bargaining unit.
Management Rights--A section that is often, but not always, written into the labor
agreement
and that spells out the rights of management. If no such section is included, management may
reason that it retains control of all topics not described as bargainable in the contract.
Union Security-- The objective of union security provisions is to ensure that the union
continues
to exist and to perform its function
Compensation and Benefits--This section typically constitutes a large portion of most labor
agreements. Virtually any item that can affect compensation and benefits may be included.
1. Wage Rate Schedule: The base rates to be paid each year of the contract for each job
are included in this section. At times, unions are able to obtain a cost-of-living
allowance (COLA) or escalator clause in the contract in order to protect the
purchasing power of employees' earnings.

6. 2. Overtime and Premium Pay: Provisions covering hours of work, overtime pay, and
premium pay, such as shift differentials, are included in this section.
3. Jury Pay: Some firms pay an employee's entire salary when he or she is serving jury
duty. Others pay the difference between jury pay and the compensation that would
have been earned. The procedure covering jury pay is typically stated in the contract.
4. Layoff or Severance Pay: The amount that employees in various jobs and/or
seniority levels will be paid if they are laid off or terminated is presented in this
section.
5. Holidays: The holidays to be recognized and the amount of pay that a worker will
receive if he or she has to work on a holiday are specified. In addition, the pay
procedure for times when a holiday falls on a worker's nominal day off is provided.
6. Vacation: This section spells out the amount of vacation that a person may take,
based on seniority. Any restrictions as to when the vacation may be taken are also
stated.
7. Family Care: This is a benefit that has been included in recent collective bargaining
agreements, with child care expected to be a hot bargaining issue in the near future.
CONSEQUENCES OF NON AGREEMENT BETWEEN MNGT & TRADE UNIONS
There are times when a union
believes that it must exert extreme pressure on management to agree to its bargaining
demands.
Strikes and boycotts are the primary means that the union may use to overcome breakdowns
in
negotiations.
1. Strikes: When union members refuse to work in order to exert pressure on
management
in negotiations.
2. Boycotts: An agreement by union members to refuse to use or buy the firm's
products.
The practice of a union attempting to encourage third parties (suppliers and customers) to
stop doing business with the firm is a secondary boycott.
Management's Strategies For Overcoming Negotiation Breakdowns--One form of action
that is somewhat analogous to a strike is called a lockout. Management keeps employees out
of the
workplace and may run the operation with management personnel and/or temporary
replacements.
The employees are unable to work and do not get paid.
a. Ratifying The Agreement

7. In the vast majority of collective bargaining encounters, the parties reach agreement without
experiencing severe breakdowns in negotiations or resorting to disruptive actions. Typically,
this is accomplished before the current agreement expires. After the negotiators have reached
a tentative agreement on all topics negotiated, they will prepare a written agreement complete
with the effective and termination dates. However, the approval process can be more difficult
for the union. Until it has received approval by a majority of members voting in a ratification
election, the proposed agreement is not final. Union members may reject the proposed
agreement, and new negotiations must begin.
b. Administration Of The Agreement
The larger and perhaps more important part of collective bargaining is the administration of
the agreement, which is seldom viewed by the public. The agreement establishes the union-
management relationship for the duration of the contract
TRADE UNION IN INDIA: HISTORY & CURRENT SCENERIO
The trade unionism in India developed quite slowly as compared to the western nations.
Indian trade union movement can be divided into three phases.
The first phase (1850 to1900)
During this phase the inception of trade unions took place. During this period, 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, the wages were also
low and general economic conditions were poor in industries. In order to regulate the
working hours and other service conditions of the Indian textile laborers, the Indian Factories
Act was enacted in 1881. As a result, employment of child labor was prohibited.
The growth of trade union movement was slow in this phase and later on the Indian Factory
Act of 1881 was amended in 1891. 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 by this time.
The second phase (1900 to 1946)
This phase was characterized by the development of organized trade unions and political
movements of the working class. Between 1918 and 1923, many unions came into existence
in the country. At Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions
like spinners’ unions and weavers’ unions were formed. A strike was launched by these
unions under the leadership of Mahatma Gandhi who turned it into a satyagrah. These unions
federated into industrial union known as Textile Labor Association in 1920.In 1920, the First
National Trade union organization (The All India 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. During 1928, All India Trade Union Federation (AITUF) was formed.
The third phase began with the emergence of independent India (in 1947). The partition of
country affected the trade union movement particularly Bengal and Punjab. By 1949, four
central trade union organizations were functioning in the country:
1. The All India Trade Union Congress,

8. 2. The Indian National Trade Union Congress,
3. The Hindu Mazdoor Sangh, and
4. The United Trade Union Congress
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.
Trade unions in India
The Indian workforce consists of 430 million workers, growing 2% annually. The Indian
labor markets consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce.
2. Organized sector, which employs 8 per cent of workforce, and
3. The urban informal sector (which includes the growing software industry and other
services, not included in the formal sector) which constitutes the rest 32 per cent of
the workforce.
At present there are twelve Central Trade Union Organizations in India:
1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labor Organization (NLO)
10. Trade Unions Co-ordination Centre (TUCC)
11. United Trade Union Congress (UTUC) and
12. United Trade Union Congress - Lenin Sarani (UTUC - LS)
IMPORTANCE OF TRADE UNIONS
Reduction in Industrial Disputes – Good industrial relations reduce the industrial

9. disputes. Disputes are reflections of the failure of basic human urges or motivations tosecure
adequate satisfaction or expression which are fully cured by good industrialrelations. Strikes,
lockouts, go-slow tactics, gherao and grievances are some of thereflections of industrial
unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-
operation and increasing production.
High morale – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer
andemployees is one and the same, i.e. to increase production. Every worker feels that he is
aco-owner of the gains of industry. The employer in his turn must realize that the gains
of industry are not for him along but they should be shared equally and generously with
hisworkers. In other words, complete unity of thought and action is the main achievement
of industrial peace. It increases the place of workers in the society and their ego is satisfied
Mental Revolution – The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in atransformed
outlook on the part of both. It is the business of leadership in the ranks of workers, employees
and Government to work out a new relationship in consonance witha spirit of true
democracy. Both should think themselves as partners of the industry andthe role of workers
in such a partnership should be recognized. On the other hand,workers must recognize
employer’s authority. It will naturally have impact on production because they recognize the
interest of each other.
Reduced Wastage – Good industrial relations are maintained on the basis of cooperation
and recognition of each other. It will help increase production. Wastages of man, material and
machines are reduced to the minimum and thus national interest is protected.
OBJECTIVES OF TRADE UNION
• To establish and promote the growth of an industrial democracy based on labor partnership
in the sharing of profits and of managerial decisions, so that banindividuals personality may
grow its full stature for the benefit of the industry andof the country as well.
• To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
•To improve the economic conditions of workers in the existing state of ndustrial anagements
and political government.
•Socialization of industries by making the state itself a major employer
•Vesting of a proprietary interest of the workers in the industries in which they areemployed.
WHY TO JOIN TRADE UNION
The important forces that make the employees join a union are as follows:

10. 1.Greater Bargaining Power
The individual employee possesses very little bargaining power as compared to that of his
employer. If he is not satisfied with the wage and other conditions of employment, hecan
leave the job. It is not practicable to continually resign from one job after another when he is
dissatisfied. This imposes a great financial and emotional burden upon theworker. The better
course for him is to join a union that can take concerted action againstthe employer. The
threat or actuality of a strike by a union is a powerful tool that oftencauses the employer to
accept the demands of the workers for better conditions of employment.
2.Minimize Discrimination
The decisions regarding pay, work, transfer, promotion, etc. are highly subjective innature.
The personal relationships existing between the supervisor and each of hissubordinates may
influence the management. Thus, there are chances of favoritisms anddiscriminations. A trade
union can compel the management to formulate personnel policies that press for equality of
treatment to the workers. All the labor decisions of themanagement are under close scrutiny
of the labor union. This has the effect of minimizing favoritism and discrimination.
3.Sense of Security
The employees may join the unions because of their belief that it is an effective way tosecure
adequate protection from various types of hazards and income insecurity such asaccident,
injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers
and compel the management to invest in welfare services for the benefit of the workers.
4.Sense of Participation
The employees can participate in management of matters affecting their interests only if they
join trade unions. They can influence the decisions that are taken as a result of collective
bargaining between the union and the management.
5.Sense of Belongingness
Many employees join a union because their co-workers are the members of the union.
Attimes, an employee joins a union under group pressure; if he does not, he often has a
verydifficult time at work. On the other hand, those who are members of a union feel that
theygain respect in the eyes of their fellow workers. They can also discuss their problem
with’the trade union leaders.
6.Platform for self expression
The desire for self-expression is a fundamental human drive for most people. All of us wish
to share our feelings, ideas and opinions with others. Similarly the workers alsowant the
management to listen to them. A trade union provides such a forum where thefeelings, ideas
and opinions of the workers could be discussed. It can also transmit thefeelings, ideas,
opinions and complaints of the workers to the management. Thecollective voice of the
workers is heard by the management and give due considerationwhile taking policy decisions
by the management.
7.Betterment of relationships

11. Another reason for employees joining unions is that employees feel that unions can fulfillthe
important need for adequate machinery for proper maintenance of employer-employee
relations. Unions help in betterment of industrial relations among managementand workers
by solving the problems peacefully.