UNIT -1

Meaning

The term ‘Industrial Relations’ comprises of two terms – ‘Industry’ and

‘Relations’. ‘Industry’ refers to “any productive activity in which an
individual/group of individuals is/are engaged”. Relations’ refers to “the
relationships that exist within the industry between the employer and his
workmen”.

Hence, ‘industrial relations’ means “the relationship between employees

and management which stem directly or indirectly from union-employer
relationship”. Industrial relations also known as labour-management
relations or labour relations constitute one of the most delicate and
complex problems of the modern industrial society, which is characterised
by rapid change, industrial unrest and conflicting ideologies in the national
and international spheres. It is a dynamic concept, which depends upon the
pattern of society, economic system and political set-up of a country and
changes with the changing economic and social order

Nature of Industrial Relation

(i) To create healthy relations between employees and employers.

(ii) To minimize industrial disputes.

(iii) To generate harmonious relations among all concerned with production

process.

(iv) To improve the productivity of workers.

(v) To provide workers their appropriate position by considering them partners

and associating them with management process.

(vi) To provide the workers their due profit share, improve their working
conditions and thereby eliminating the chances of strikes and lockout etc

Objective

The primary objective of industrial relations is to bring about good and healthy
relations between the two partners in industry labour and management. It is
around this objective that other objectives revolve.
According to Kirkland, “the state of industrial relations in a country is
intimately connected with the form of its political government, and the
objectives of an industrial organization may change form economic to political
ends.”

He divides these objectives into four:

• Improving the economic condition of workers in the existing state of
industrial management and political government;
• Control by the state over industries to regulate production and
industrial relation;
• Socialization or nationalization of industries by making the state itself
an employer; and
• Vesting the proprietorship of industries in the workers.

The other objectives are:

• To maintain industrial democracy based on participation of labour in
the management and gains of industry.

• To raise productivity by reducing tendency of high labour turnover and

absenteeism.

• To ensure workers’ participation in management of the company by

giving them a fair say in decision-making and framing policies.

• To establish a proper channel of communication.

• To safeguard the interests of the labour as well as management by

securing the highest level of mutual understanding and goodwill
between all sections in an industry.

• To avoid all forms of industrial conflicts so as to ensure industrial

peace by providing better living and working standards for the
workers.

• To bring about government control over such industrial units which are
running at a loss for protecting the livelihood of the employees.

Significance of IR

Significance of industrial relations are:

1. Uninterrupted production
 2. Reduction in Industrial Disputes
3. High morale
4. Mental Revolution
5. New Programmes
6. Reduced Wastage

Uninterrupted production

The most important benefit of industrial relations is that this ensures continuity
of production. This means, continuous employment for all from manager to
workers. The resources are fully utilized, resulting in the maximum possible
production.

There is uninterrupted flow of income for all. Smooth running of an industry is

of vital importance for several other industries; to other industries if the
products are intermediaries or inputs; to exporters if these are export goods; to
consumers and workers, if these are goods of mass consumption.

Reduction in Industrial Disputes

Good industrial relation reduce the industrial disputes. Disputes are reflections
of the failure of basic human urges or motivations to secure adequate
satisfaction or expression which are fully cured by good industrial relations.

Strikes, lockouts, go-slow tactics, “gherao” and grievances are some of the
reflections of industrial unrest which do not spring up in an atmosphere of
industrial peace. It helps promoting cooperation and increasing production.

High morale

Healthy and good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of
employer and employees is one and the same, i.e. to increase production.

Every worker feels that he is a co-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 his workers. 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. It
naturally affects production because mighty co-operative efforts alone can
produce great results.
Mental Revolution

The main object of industrial relation is a complete mental revolution of

workers and employees. The industrial peace lies ultimately in a transformed
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 with a spirit of true
democracy.

Both should think themselves as partners of the industry and the role of workers
in such a partnership should be recognized. On the other hand, workers must
recognize employer’s authority.

New Programmes

New programmes for workers development are introduced in an atmosphere of

peace such as training facilities, labor welfare facilities etc. It increases the
efficiency of workers resulting in higher and better production at lower costs.

Reduced Wastage

Good industrial relations are maintained on the basis of cooperation and

recognition of each other. It will help increase production.

Approaches to Industrial Relations

1. Systems Approach
2. Unitary Approach
3. Pluralist Approach
4. Marxist Approach
5. Sociological Approach
6. Gandhian Approach
 7. Psychological Approach
8. Human Relations Approach

Systems Approach

John Dunlop gave the systems theory of industrial relations in the year 1958. He
believed that every human being belongs to a continuous but independent social
system culture which is responsible for framing his or her actions, behaviour
and role.

The industrial relations system was based on three sets of different variables:

1. Actors: By actors here we mean that the individuals or parties involved in

the process of developing sound industrial relations. This variable is
denoted by ‘A’.
2. Contexts: The contexts refer to the setup in which the actors perform the
given tasks. It includes the industry markets (M), technologies (T) and the
power distribution in the organization and labour unions(P).
3. Ideology: The similar ideas, mentality or beliefs shared by the actors
helps to blend the system. It can be expressed by the initial (I)

Based on these variables, the following formula was derived by Dunlop:

John Dunlop’s Systems Approach Formula:

This formula represents that the industrial relations system can be seen as a joint
function of all the elements mentioned above.

Unitary Approach

As the name suggests, the unitary approach can be seen as a method of bringing
together the teamwork, common objective, individual strategy and mutual
efforts of the individuals.

This theory believes that the conflicts are non-permanent malformations,

which are a result of improper management in the organization.

Moreover, if everyone works towards the achievement of the common goals by

maintaining peace and cooperation in the workplace, it will tend to benefit
everyone associated with the organization. It also considered the organizational
conflicts resulting in strikes to be useless and destructive.
The other aims of the unitary approach are as follows:

• To create a productive, effective and harmonious work environment;

• to develops a trustworthy, open, fair and transparent work culture;
• to create a cordial work environment;
• to restrict the role of the tribunals and other government associations like
the trade unions and initiates direct negotiation between the management
and the employees.

Pluralist Approach

The pluralist theory also called the ‘Oxford Approach’, was proposed
by Flanders in the year 1970. This approach explained that the management and
the trade unions are the different and robust sub-groups which unanimously
form an organization.

Collective bargaining was considered to be a useful technique for resolving

organizational conflicts. Due to this, the management’s role has transformed
from imposition and control; to influencing and coordinating with the workers.

Following are some of the highlights of this approach:

• The organization should appoint personnel experts and industrial relations

specialists to act as mediators between the management and trade
unions. They need to look into the matters of staffing, provide
consultation to the managers and the unions, and negotiate with both the
parties in case of conflicts.
• The organization should ensure that the trade unions get recognized and
the union leaders or representatives can perform their duties freely.
• In the case of industrial disputes, the organization can avail the services
of the external agent for settlement of such issues.
• The managers should resolve to a collective bargaining
agreement when there is a need for negotiation and settlement with the
trade unions.

The following formula denotes the Flanders pluralist theory:

Where,
‘R‘ is the rules of industrial relations;
‘b‘ is collective bargaining;
‘c‘ is resolving conflicts through collective bargaining.

It depicts that the rules of industrial relations are a function of collective

bargaining, or in other words, it is a function of handling conflicts through
collective bargaining.

Marxist Approach

Lenin came up with the concept of a Marxist approach in the year 1978, where
he emphasized the social perspective of the organization.

This theory perceived that the industrial relations depend upon the relationship
between the workers (i.e., employees or labour) and the owners (i.e., employer
or capital). There exists a class conflict between both the groups to exercise a
higher control or influence over each other.

The assumptions of this approach are as follows:

• Industrial relations are a significant and never-ending source of conflicts

under capitalism which cannot be avoided. However, cases of open
disputes are quite unusual.
• Understanding the conceptions of capitalized society, capital
accumulation process and the pertaining social relations, give a better
overview of the industrial relations.
• The Marxist theory assumed that the survival of the employees without
any work is more crucial than the survival of the employer without the
labours.

Sociological Approach

The industries comprise of different human beings who need to communicate

with the individuals of other organizations.

Due to the difference in their attitude, skills, perception, personality, interests,

likes and dislikes, needs, they are usually involved in one or the other conflict.
Even the social mobility and other aspects including transfer, default, group
dynamics, stress, norms, regulations and status of the workers influence their
output and the industrial relations.

This theory also emphasizes on the impact of various changes in the work
environment(i.e., economic, technical and political) on the interactions and
relationship shared by the employer, employees, institutions and the
government bodies.

Gandhian Approach

The Gandhian approach to industrial relations was proposed by the father of our
nation, Mahatma Gandhi or Mohandas Karamchand Gandhi, who was also a
well-known labour leader.

Following are the various features of the trusteeship or Gandhian theory:

1. Gandhi Ji was not against strikes; instead, he gave the

following conditions to carry out a favourable strike:
o The workers or labours can go on a strike only if there is a specific
grievance.
o There should be complete non-violence while carrying out strikes.
o The ones who are not involved in the strikes should not be
tormented.
2. Though Gandhi Ji was not against carrying out strikes, he believed that it
should be the last option to which the labour should resort to, after the
failure of all the constitutional and peaceful ways of resolving conflicts
and negotiating with the employer.
3. The Gandhian approach illustrated that nature had provided us with
human capabilities and different kinds of property. Thus, such nature’s
gift belongs to the whole society and cannot be considered as of personal
possession by anyone.
4. The objective of this theory is to adopt non-violent ways to bring in
economic parity and material enhancement in a capitalist society.
5. Gandhi Ji perceived that every organization is a joint venture, and the
labour should be treated as associates or co-partners with the
shareholders. Moreover, the workers should have proper knowledge of all
the business transactions as it is their right.
6. He focussed on increasing the production and believed that the gains
should be shared with the employeesbecause of whom it has been
possible.
7. He also emphasized that the industrial disputes and conflicts between the
parties should be resolved healthily through interactions, arbitration
and bilateral negotiations.

This theory gained massive popularity and is applied to address disputes and
misunderstandings in the organizational setup even today.

Psychological Approach
The psychologists perceived the problem of the industrial relations as a result of
the varying perception and mindset of the key participants, i.e., the employees
and the management.

The ‘thematic application test’ was conducted by Mason Harie to understand

the behaviour, mindset and perception of the two significant workgroups, i.e.,
executive and the union leaders, in a particular situation.

In this test, both the groups were asked to rate and interpret the photograph of
an ordinary middle-aged person, and the results were drastically contrasting.
The union leaders perceived the person to be a ‘manager‘ whereas, the
executives thought that the person was a ‘union leader‘.

The major interpretations of this test were as follows:

• The general belief of a management representative is entirely different

from that of a labour representative.
• Both the management and labour do not consider each other to be
trustworthy.
• Even each of these groups considers that the other one lacks emotional
and interpersonal attributes.

These contrasting impressions are a result of certain economic as well as non-

economic factors, like values, power, position, personal objectives, recognition,
beliefs, education, social security and income of the individuals.

Also, each of these parties forms a negative image or perception of each

other. Due to which they always find fault in the actions and behaviour of one
another.

As a result of the factors mentioned above, there remains a tensed interpersonal

relation leading to conflicts which ultimately hinders the image and interest of
the individuals involved.

Human Relations Approach

The person behind the concept of the human relations approach is Keith Davis.
The organization and the society comprise of human beings who vary in various
aspects as their behaviour, emotions, attitude, mindset and personality. But, they
have come together to achieve common organizational goals and objectives.

The concept of human relations approach underlines the need for making the
individuals familiar with the work situations of the organization and uniting the
efforts of the workers. The purpose is to meet the social, psychological and
economic objectives, by enhancing the overall productivity.

Some of the primary objectives of the human relations approach are as

follows:

• To ensure cooperation by promoting the mutual interest of the

organization;
• to enhance the productivity of the individuals;
• to satisfy the psychological, social and economic needs of the employees.

This theory focused on enhancing the level of efficiency, worker’s morale

and job satisfaction by applying specific techniques or tools and policies.

The human relations approach highlighted a technique for enforcing proper

control over the work environment by forming small workgroups and at the
same time eliminating the hurdles of sound labour-management relations.

Causes of Poor Industrial Relations

• Economic Causes
• Organizational Causes
• Social Causes
• Psychological Causes
• Political Causes

Economic Causes

Poor wages and poor working conditions are the main reasons for unhealthy
relations among management and labour. Unauthorized deductions from wages,
lack of fringe benefits, absence of promotional opportunities, dissatisfaction
with job evaluation and performance appraisal methods, faulty incentive
schemes are other economic causes.

Organisational Causes

Faulty communication system, dilution of supervision and command, non-

recognition of trade unions, unfair practices, violation of collective agreements
and standing orders and labour laws are the organisational causes of poor
relations in industry.

Social Causes
Uninteresting nature of work is the main social cause. Factory system and
specialisation have made worker a subordinate to the machine. Worker has lost
sense of pride and satisfaction in the job. Tensions and conflicts in society break
up of joint family system, growing intolerance have also led to poor employer-
employee relations. Dissatisfaction with job and personal life culminates into
industrial conflicts

Psychological Causes

Lack of job security, poor organisational culture, non-recognition of merit and

performance, authoritative administration and poor interpersonal relations are
the psychological reasons for unsatisfactory employer-employee relations

Political Causes

The political nature of trade unions, multiple unions and inter-union rivalry
weaken trade union movement. In the absence of strong and responsible trade
unions, collective bargaining becomes ineffective. The union‘s status is reduced
to a mere strike committee.

Effects of Poor Industrial Relations

Poor Industrial Relation produces adverse effects on the economic life of the
country. We may enumerate the ill-effects of poor Industrial Relations as under:

1. Multiplier effects: Modern industry and modern economy both are

interdependent. Hence although the direct loss caused due to industrial
conflict in any one plant may not be very great, the total loss caused due
to its multipliers effect on the total economy is always very great.

2. Low Morale and motivation: Poor Industrial Relations adversely affect

the normal tempo of work so that work far below the optimum level.
Costs build up. Absenteeism and labour turnover increase. Plants
discipline breaks down and both the quality and quality of production
suffer.

3. Resistance of change: Dynamic industrial situation calls for change more

or less continuously. Methods have to be improved. Economics have to
be introduced. New products have to be designed, produced and put in the
market. Each of these tasks involves a whole chain of changes and this is
resisted bitterly if these are industrial conflict.

4. Frustration and social cost: Every man comes to the workplace not only
to earn a living. He wants to satisfy his social and egoistic needs also.
 When he finds difficulty in satisfying these needs he feels frustrated. Poor
Industrial Relations take a heavy toll in terms of human frustration. They
reduce cordiality and aggravate social tension.

Suggestion to improve industrial relation:-

The following measures may be adopted to achieve better industrial relations:

Strong and Stable Union:

A strong and stable union in each industrial enterprise is essential for good
industrial relations. The employers can easily ignore a weak union on the plea
that it hardly represents the workers. The agreement with such a union will
hardly be honored by a large section of workforce. Therefore, there must be
strong and stable unions in every enterprise to represent the majority of workers
and negotiate with the management about the terms and conditions of service.

Mutual Trust:

Both management and labor should help in the development of an atmosphere

of mutual cooperation,confidence and respect. Management should adopt a
progressive outlook and should recognize the rights of workers. Similarly, labor
unions should persuade their members to work for the common objectives of the
organization. Both the management and the unions should have faith in
collective bargaining and other peaceful methods of settling disputes.

Workers’ Participation in Management:

The participation of workers in the management of the industrial unit should be

encouraged by making effective use of works committees, joint consultation
and other methods. This will improve communication between managers and
workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation

. The employers must recognize the right of collective bargaining of the trade
unions. In any organization, there must be a great emphasis on mutual
accommodation rather than conflict or uncompromising attitude. One must
clearly understand that conflicting attitude does not lead to amicable labor
relations; it may foster union militancy as the union reacts by engaging in
pressure tactics. The approach must be of mutual “give and take rather than
“take or leave.” The management should be willing to co-operate rather than
blackmail the workers.

Sincere Implementation of Agreements

The management should sincerely implement the settlements reached with the
trade unions. The agreements between the management and the unions should
be enforced both in letter and spirit. If the agreements are not implemented then
both the union and management stop trusting each other. An environment of
uncertainty is created. To avoid this, efforts should be made at both ends to
ensure the follow up of the agreements.

Sound Personnel Policies:

The following points should be noted regarding the personnel policies. The
policies should be:

Formulated in consultation with the workers and their representatives if they are
to be implemented effectively.

Clearly stated so that there is no confusion in the mind of anybody.

Implementation of the policies should be uniform throughout the organization to

ensure fair treatment to each worker.

Government’s Role:

The Government should play an active role for promoting industrial peace. It
should make law for the compulsory recognition of a representative union in
each industrial unit. It should intervene to settle disputes if the management and
the workers are unable to settle their disputes. This will restore industrial
harmony.

Progressive Outlook:

There should be progressive outlook of the management of each industrial

enterprise. It should be conscious of its obligations and responsibilities to the
owners of the business, the employees, the consumers and the nation. The
management must recognize the rights of workers to organize unions to protect
their economic and social interests.
 UNIT -2 GROWTH OF TRADE UNIONISM

Trade union theory

There is no one theory of Trade Unionism, but many contributors to these theories are
revolutionaries like Marx and Engels, Civil servants like Sydney Webb, academics
like Common and Hoxie and labour leader like Mitchall. Important theories of trade
unionism are as follows.

1. Political Revolutionary Theory of Labour Movement of Marx and Engels:

This theory is based on Adam Smiths theory of labour value. Its short run purpose is
to eliminate competition among labour, and the ultimate purpose is to overthrow
capitalist businessman. Trade union is pure simple a class struggle, and proletarians
have nothing to lose but their chains and they a world to win.

2. Webbs Theory of Industrial Democracy:

Webb’s book ‘Industrial democracy’ is the Bible of trade unionism. According to

Webb, trade unionism is an extension of democracy from political sphere to industrial
sphere. Webb agreed with Marx that trade unionism is a class struggle and modern
capitalist state is a transitional phase which will lead to democratic socialism. He
considered collective bargaining as the process which strengthens labour.

3. Cole’s Theory of Union Control of Industry:

Cole’s views are given in his book “World of Labour” 1913. His views are
somewhere in between Webb and Marx. He agrees that unionism is class struggle and
the ultimate is the control of industry by labour and not revolution as predicted by
Marx.

4. Common’s Environment Theory:

He was skeptical of generalisations and believed only that which could be proved by
evidence. He agreed that collective bargaining was an instrument of class struggle, but
he summarised that ultimately there will be partnership between employers and
employees.

5. Mitchell’s Economic Protection Theory of Trade Unionism:

Mitchell, a labour leader, completely rejected individual bargaining. According to him unions
afford economic protection to.

6. Simons Theory of Monopolistic, anti-Democratic Trade Unionism:

He denounced trade unionism as monopoly founded on violence. And he claimed monopoly

power has no use save abuse.
7. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers:

He rejected the idea of class consciousness as an explanation for the origin of the trade union
movement but substituted it with what he called job consciousness.

According to him, ‘working people in reality felt an urge towards collective control of their
employment opportunities, but hardly towards similar control of industry.’ Perlman observed
that three dominant factors emerged from the rich historical data:

•
1. the capacity or incapacity of the capitalist system to survive as a ruling group
in the face of revolutionary attacks (e.g., failure in Russia).
2. the source of the anti-capitalist influences being primarily from among the
intellectuals in any society.
3. the most vital factor in the labour situation was the trade union movement.
Trade unionism, which is essentially pragmatic, struggles constantly not only
against the employers for an enlarged opportunity measure in income, security
and liberty in the shop and industry, but struggles also, whether consciously or
unconsciously, actively or passively, against the intellectual who would frame
its programmes and shape its policies.

But Perlman also felt that a theory of the labour movement should include a theory of the
psychology of the labouring man. For instance, there was a historical continuity between the
guilds and trade unions, through their common fundamental psychology; the psychology of
seeking a livelihood in the face of limited economic opportunity. It was when manual
workers became aware of a scarcity of opportunity, that they banded together into unions for
the purpose of protecting their jobs and distributing employment opportunities among
themselves equitably, and to subordinate the interests of the individual to the whole labour
organism. Unionism was ruled thus by this fundamental scarcity consciousness (Perlman,
1970).

8. Hoxies Functional Classification of Unionism:

He classified Unionism on the basis of their functions. His classification were Business
Unionism for protecting the interest of various craftsmen, “Uplift unionism” for the purpose
of contributing better life such as association of sales engineers etc. “Revolutionary
Unionism” which is eager to replace existing social order, “Predatory Unionism” which rests
on these support of others.

9. Tannenbaum’s Theory of Man Vs. Machine:

According to him Union is formed in reaction to alienation and loss of community in an

individualistic and unfeeling society. In his words, the union returns to the workers his
society, which he left behind him when he migrated from a rural background to the
anonymity of an urban industrial location. The union gives the worker a fellowship and a
value system that he shares with others like him. Institutionally, the trade union movement is
an unconscious effort to harness the drift of our time and reorganise it around the cohesive
identity that men working together always achieve.
 (Or)

THEORIES OF TRADE UNION

1.Revolutionary Theory

2.Evolutionary Theory

3.Theory of Industrial Jurisprudence

4.Rebellion Theory

5.The Gandhian Approach.

A cross-country examination of trade unions reveals different ideologies

influencing the evolu-tion and development of trade unions depending on
social, economic and political conditions preva-lent therein. That is precisely
the reason the objectives of trade unions and their place have been emphasized
differently by different thinkers.

The various approaches/theories of trade unions can be classified into the

following five types:

1. Revolutionary Theory:

Marx & Engels, in Germany, influenced trade unionism in various ways. To

Marx, a trade union was first & foremost an organisation centre. It provided the
locus for collecting the forces of working classes.

Referring to the struggle between the class of wage earners and the class of
employers, Marx brings out that modern technique of production has
concentrated the social means of production under the ownership of the
capitalist who, thus, became the absolute master.

The theory of class war and dialectical materialism enunciated by Marx has
created a class of trade unionists who regard labour organisation as essential to
bring about a revolutionary and fundamental change, in the social order in
which men are living.

From them trade unions are the instruments to overthrow capitalism. According
to Marx, trade unionism thus represents a prime instrument of the class struggle
between proletarian- workers and capitalist businessmen.
He believed that capitalism itself renders effective, although unintended, aid to
its enemies by developing three tendencies —

a)the tendency of heavy concentration of wealth and capital in the hands of a

few of the largest capitalists reduces the number of the natural supporters of
capitalism,

b)the tendency towards a steady depression of wages and a growing misery of

the wage-earning class keeps revolutionary order alive, and

c)the inevitable and frequent economic crisis under capitalism disorganise it and
hasten it on towards destruction".

Marx advocated that the working class must not divert itself from its
revolutionary programme and the labour struggle must be for the abolition of
capitalism.

The revolutionary approach/theory of trade union is developed by Karl Marx

“This theory is also known as “the theory of class war and dialectical
materialism”. According to Marx, trade union was the foremost organising
centre to provide locus for streamlining the forces of working classes The trade
unions are, for Marx, the instruments to overthrow capitalism.

These are, thus, prime instruments of the class struggle between proletarian
workers and capitalist businessmen. Marx advocated that the working class
must not divert itself from its revolutionary programme because it is labour
struggle only that can abolish capitalism. To Marx, workers’ emancipation
involves abolition of capitalism

2. Evolutionary Theory:

The Webbs (Sydney and Beatrice Webb) in their work "Industrial Democracy"
have put forward a non-revolutionary theory of industrial democracy.

They have considered trade unionism to be the extension of the principal of

democracy in the sphere of industry.

Trade unions are regarded to be "institutions for overcoming managerial

dictatorship to strengthen individual labourers and to give them some voice in
the determinant of the conditions under which they have to work

In other words, trade unionism is not an instrument to overthrow the capitalism,

but a means of equalizing the bargaining power of labour and capital.
Trade unionism provides a means by which workers overcome managerial
dictatorship, on the one hand, and express their voice in the determination of the
conditions under which they have to work, on the other.

3. Theory of Industrial Jurisprudence:

S.H. Slitchor, extending the Webbs' theory still further in his analysis of the
purposes of unionism stated that wage-earners could not exercise much control
over working conditions through individual bargaining because of various
reasons.

In his view, "Individual bargaining is an unsatisfactory way of controlling work

and working conditions because, employers who use methods which improve
the labour supply, are not sure of gaining as a result and employers who use
methods which spoil the labour supply suffer no direct loss".

Consequently, he believed that workers, through their unions, developed a

system of work rules and traditions 'a system of industrial Jurisprudence* which
served as a means of production to employees in their work.

From the study of American Labour Movement that the objectives of trade
unionism change, Selig Perlman (University of Wisconsin, United States)
propounded his ’Scarcity-consciousness theory of Labour Movement'.

According to S. H. Slitcher the propounder of the “Theory of Industrial

Jurisprudence”, workers individually fail in bargaining with employers for pro-
tecting their interests. In his view, trade unionism served as a means for workers
to protect them in work. Such an approach of trade unionism, Slitcher termed as
“a system of industrial jurisprudence”.

According to him, the character of the labour movement in any particular

country must depend upon the particular combination of three factors:

1)the resistance power of capitalism determined by its own historical

development,

2)the degree of dominance over the labour movement by the intellectuals’

mentality which regularly underestimates capitalism's resistance power and
overtimes labour's will to radical change, and

3)the degree of maturity of trade union mentality".

He believes that the impulse of the employees is not "to suppress the employer
but to supress their competitive menaces.
To do so they feel that they must organise into a union and engage in a class
struggle against the employer.

It is labour's aim to continue increasing bargaining power and with its share of
industrial control. Just as it is the employer's aim to maintain a 'status quo' or
better.

Although this presupposes a continuous struggle, it is not a revolutionary but an

opportunist struggle, while Marx conceived technical progress as the cause of
class struggle, Perlman saw the forces of market as the basis of the conduct of
organised labour and industrial struggle.

In his words "the beginning of class struggle has nothing to do machine

technique and a capitalist ownership of the tools of production ... The
underlying cause was the rapid extension of markets outrunning the technical
development of industry".

Referring to the developments during the 17th to 19th centuries, he concluded

that the class struggle instead of becoming sharper and sharper with advance of
capitalism and leading to a social revolution, as predicted by Marx, grew less
and less revolutionary in reality and led to a compromise or succession of
compromises, viz., collective agreements.

4. Rebellion Theory:

To Frank Tannenbaum, the propounder of “Rebellion Theory”, trade unionism

is a spontaneous outcome in the growth of mechanization. He believes that the
use of machines leads to exploitation of workers. Thus, machine is the cause
and labour movement, i.e., trade unionism is the result. In other words, trade

unionism is a rebellion approach against mechanisation automatization of

industrial society to protect workers’ interest in the enterprise.

According to Frank Tannebaum, the emergence of trade unionism is

spontaneous and inherent in the growth of capitalism. He believed that "the
fundamental cause of exploitation of men is the use of machine and, therefore, the
Labour Movement is the result and the machine is the major cause and thus the labour
movement seems dastined to achieve complete control of the industrial functions of
the community by substituting service for profit in industrial enterprise and with
service democracy into industry".

Tannenbaum’s Theory of Man Vs. Machine: According to him Union is formed in

reaction to alienation and loss of community in an individualistic and unfeeling
society. In his words, the union returns to the workers his society, which he left behind
him when he migrated from a rural background to the anonymity of an urban
industrial location. The union gives the worker a fellowship and a value system that he
shares with others like him. Institutionally, the trade union movement is an
unconscious effort to harness the drift of our time and reorganise it around the
cohesive identity that men working together always achieve.

5. The Gandhian Approach:

The Gandhian approach of trade unionism is based on “class collaboration rather than
class conflict and struggle”. The idea to take worker’s due share from capitalist by
reform and self- consciousness among workers led to the emergence of trade
unionism. Thus the Gandhian approach of trade unionism is not only related to
material aspect but also moral and intellectual aspects.

Gandhi emphasised that the direct aim of a trade unionism is not, in the last degree
political. Instead, its direct aim is internal reform and also evolution of internal
strength. Also, trade unionism, according to the Gandhian approach, is not anti-
capitalistic as is generally viewed.

According to Gandhi Ji, class collaboration and harmony rather than class struggle led
to the emergence of trade unionism. "It (Trade Unionism) is not anti-capitalistic. The
idea is to take from

capital labour’s due share and no more, and this, not by paralysing capital, but by
reform among labourers, from within and by their own self-consciousness, not again
through the cleverness of non- labour leaders, but by educating labour to evolve its
own leadership and its own self-reliant, self-existing organisation. Its direct aim is not
in the last degree political. Its direct aim is internal reform and evolution of internal
strength.

The direct result of this evolution when, and if it ever becomes complete, will
naturally be tremendously political”.

The Gandhian approach to trade unionism is thus not only related to material aspect,
but also to moral and intellectual aspects. Gandhi Ji emphasised that a trade union
must strive for all-round betterments of the working-class including training of its
members in a supplementary occupation.
Need for Trade Unions

Workers join trade unions to achieve certain objectives that they may not be
able to achieve in their personal capacity. Trade unions are necessary.

• To ensure job security and right pay for the members: One of the basic
needs of any employee is security of service. The main reason why an employee
joins a union is to get him secured. Apart from job security and employees need
to get pay commensurate with their qualifications and skills. Trade unions strive
to get both job security and correct pay for all employees.
• To ventilate the grievances of employees to the management:When the
employees in general or some in particular have any grievance, they may not
be able to convey the same to the management in their personal capacity. Such
grievances may be brought to the knowledge of the management through the
trade union. The members of the management may be indifferent to the
demands of the individual employees but they cannot be so when it comes to
union demands.

Objectives of Trade Union:

The following are the objectives of trade union:

(1) To improve the economic lot of workers by securing them better wages.

(2) To secure for workers better working conditions.

(3) To secure bonus for the workers from the profits of the enterprise/organization.

(4) To ensure stable employment for workers and resist the schemes of management
which reduce employment opportunities.

(5) To provide legal assistance to workers in connection with disputes regarding work
and payment of wages.

(6) To protect the jobs of labour against retrenchment and layoff etc.

(7) To ensure that workers get as per rules provident fund, pension and other benefits.

(8) To secure for the workers better safety and health welfare schemes.

(9) To secure workers participation in management.

(10) To inculcate discipline, self-respect and dignity among workers.

(11) To ensure opportunities for promotion and training.

(12) To secure organizational efficiency and high productivity.

(13) To generate a committed industrial work force for improving productivity of the
system.

Functions of Trade Unions:

(1) Collective bargaining with the management for securing better work environment
for the workers/ employees.

(2) Providing security to the workers and keeping check over the hiring and firing of
workers.

(3) Helping the management in redressal of grievances of workers at appropriate

level.

(4) If any dispute/matter remains unsettled referring the matter for arbitration.

(5) To negotiate with management certain matters like hours of work, fringe benefits,
wages and medical facilities and other welfare schemes.

(6) To develop cooperation with employers.

(7) To arouse public opinion in favour of labour/workers.

History and Development of Trade Union in India

1. Prior to the World War I:

The trade union movement in India goes back to the year 1875 under, the leadership
of Sorabji Shaparji. He started the agitation to draw the attention of the Government to
the lamentable condition of women and child labour in industries in India, This is
followed by the establishment of the Bombay Mills Hands Association in 1890 by Mr.
M.M. Lokhande, a workman who organised a meeting of 10,000 workers as a result of
which several demands were accepted by the mill owners in Bombay Textile Mills.
He started a newspaper called Dinabandhu so as to educate the workmen.

In 1897, the Amalgama Society of Railway Servants of India was established and
registered under the Companies Act, which is followed by the Printers’ Union
Calcutta (1907), Postal Union (1907), Kamgar Hitwardhak Sabha (1909) and the
Social Service League (1910). However, these organisations could not make the real
start in the Labour Movement till World War I.

2. Between the Two World Wars:

One of the most significant developments of the period was the association of
Mahatma Gandhi with the Ahmedabad Textile Labour Association. Here they applied
the theory of non-violence in industrial relations. The first systematic attempt in this
direction was made by P.P Wadia who established the Madras Labour Union in 1918.

The World War I (1914-19), the Russian Revolution (1917), Swaraj Movement and
the establishment of International Labour Organisation gava a new life to the labour
movement and by the year 1920, the trade union emerged on the Indian scene in
almost all the sectors to safeguard the interests of the working class.

It was also in the year that India’s first central organisation of labour, namely, All
India Trade Union Congress (A.I.T.U.C) was established to represent the interest of
the workers and also stimulus to the rapid formation of trade unions throughout the
country. Their number and membership increased manifold.

In 1926, Trade Unions Act was passed which provided a legal status, to the registered
trade unions and conferred on them and their members a measure of immunity from
civil suits and criminal prosecutions. This has improved the image of trade unions in
the public.

Towards the end of 1920’s there was a split in the trade union movement on account
of ideological differences and a new organisation was formed in the name of All India
Trade Union Federation (A.I.T.U.F.) which confused the labour community and
resulted in the failure of many strikes. The A.I.T.U.C was captured by communists.

The period of 1930’s was not favourable to the development of trade union
movement. The prosecution of communists in Meerut Conspiracy case, failure of
Bombay Textile strike in 1929, and economic depression were some of the causes
which brought dullness in the activities of trade union.

In 1931, AITUC underwent a further rift, and the communists formed another Central
Union-Red Trade Union Congress (RTU) under the chairmanship of D.B. Kulkarni.

3. During and After the World War II:

The World War II, created an emergency and the union leaders again split on the
question of participating in the war and there was an ideological rift that split the
movement. A new trade union namely Indian Federation of Labour was formed.

Industrial unrests increased during the war period. Government promulgated Defence
of India Rules and prohibited strikes and lockouts. But deteriorating economic
conditions of labourers made them conscious to be organised for their security. This
gave a stimulus to the trade union movement. In 1947, the Indian national Trade
Union Congress (INTUC) was formed as a labour wing of Indian national Congress. It
was ruled over by the congress leaders.

4. Since Independence:

Independence and partition of the country smashed the hope of the workers for getting
higher wages and better working conditions from the national Government. With a
view to retaining the amenities which they have earned earlier, a series of strikes
swept the country.

The number of strikes and man days lost were the highest ever recorded in the
country. Various political parties formed and kept control over various trade unions.
In 1948, Praja Socialist party started another trade union known as Hind Mazdoor
Panchayat. Indian Federation of Labour and Hind Mazdoor Panchayat were
amalgamated and formed Hind Mazdoor Sabha (H.M.S) in 1948.

In 1949, I.T.U.C. was affiliated to the International Confederation of Free Trade

Unions. The United Trade Union Congress was established in 1949 by some
radicalists. In 1954, another central trade union was formed in the name of Bharatiya
Mazdoor Sangh (BMS). All these unions have been working for the betterment of
workers

Obstacles in the Growth of strong trade unionism

The Indian trade unions unlike in the Western countries have not made a significant
mark. They suffer from various drawbacks. For a proper growth of trade unions,
certain conditions have to be met which is not the case with Indian industries. There
are many obstacles, which hamper the development of the trade unions in India.

These may be categorized as internal and external, which are discussed as follows:

1. Internal Obstacles:

There are certain peculiar traits specific to Indian labor that hinders the growth of
trade unions.

Some of them are given below:

i. Majority of the Indian Labor is Illiterate:

In India, majority of the workers are illiterate. The illiteracy of labor hinders the
growth and progress of the trade unions. Maintaining discipline becomes very difficult
among the trade unions if the workers are not literate. They will not be fully conscious
of their duties. The opposition groups can easily influence them and go on strikes and
may indulge in subversion. They will not be in a position to understand the role and
functions of the trade unions.

ii. Migratory Habit:

Most of the Indian labor comes from rural areas. Their families reside in villages due
to which they do not stay permanently in cities. Whenever the workers get leaves or
holidays, they prefer to spend time with their families and this is the reason why they
are not able to participate in the discussions of the trade unions.

Mast of the workers is under the impression that if they enroll themselves in the trade
unions, they have to compulsorily attend, the meetings and discussions and they
cannot go to their native places easily. Even though they become members they go to
their homes during strikes and lockouts. Due to this, trade unionism in India cannot
work properly.

iii. Heterogeneous Character:

In any industry workers come from different regions and different backgrounds. These
workers possess a heterogeneous character. They differ in regard to language, religion,
region, food, and dress habits. Due to such heterogeneity, building up a sense of unity
among the workers is a difficult task. However, for the success of a trade union, unity
is of utmost importance. Some workers even today practice untouchability. Thus, it is
clear that the heterogeneous character of the workers is blocking the development of
the trade unions and their movements.

iv. Low Economic Standards:

The economic conditions of the labor in India are very poor. The average Indian
worker’s wages are so low that it is very difficult to manage his own family expenses.
Due to low wages, he is always under debt and in poverty. On account of poverty, he
is not able to actively take part in the activities of the trade union and due to low
economic conditions he is unable to bear the strain of strikes and lockouts. Thus, these
types of situations of the workers come in the way of the growth and development of
the trade unions.

v. Mutual Strife:

There are many trade unions, which are functioning independently in India. Mostly,
each of these trade unions is under the influence of a political party. Usually, the
political parties try to manipulate the trade unions for achieving their own selfish ends.
This tendency builds up strife and dissension among the trade unions and weakens
them. Due to mutual dissension between the trade unions, an agitation is supported by
some and opposed by others. Thus, mutual strife acts as a big impediment to the
growth of trade union activities in India.

vi. Lack of Able Leadership:

Most of the Indian workers are illiterate and ignorant and are not capable of taking up
the leadership of the trade unions. In such a situation, the trade unions are led by
reformers, lawyers, or politicians who are professional, well-qualified and wise. They
are well informed about all the laws. However, they do not possess any first-hand
knowledge about the problems of the labor. There are also instances whereby these
people collude with the industrialists and get money from them, so that there would
not be any protest from the workers against the industrialists.

vii. The Problem of Unemployment:

In India, the problem of unemployment is growing day by day. Once a person finds a
job he is very much reluctant to leave it because finding an alternative employment
has become very difficult. Most of the Indian workers are under the impression that,
by joining the trade unions they are putting their jobs in danger. Due to such fear, the
workers in India do not join the trade unions and participate in their activities.

2. External Obstacles:

Apart from internal obstacles, there are also certain external impediments, which
constrain the growth of trade unionism in India. The more important external obsta-
cles are concerned about the role of intermediaries, the industrial workers, the indus-
trialists, the management boards, and labor and industrial laws. Without cooperation
among various factors, no trade union movement can make progress.

Let us discuss these points in detail:

i. Non-cooperation of Intermediaries and Industrialists:

The recruitment of labor in the industries is not direct but is in the hands of the
intermediaries, who are mostly the agents of the industrialists. These intermediaries
receive money from the industrialists. These are always opposed to the growth of
trade unions because once trade unions become strong, the role and importance of
these intermediaries will decline.

This is the reason why they conspire against the workers and pass on all information
about the discussions of the workers to the industrialists. Thus, the non-cooperation
and opposition of the intermediaries prove to be an obstacle for the growth of the trade
unions.

The Indian industrialists consider the trade unions as their enemies. They opine that
the growth of trade unions would reduce their importance. Therefore, they try to
disrupt all the efforts, which try to strengthen the trade unions. They even try to bribe
the leaders of the trade unions to achieve their own selfish ends.

ii. Lack of Legal Support:

The government laws and machinery are not providing enough legal support to the
workers. There are no adequate provisions to safeguard the interests and promote the
welfare of the workers. During strikes there is not much protection to the workers by
law. In such situations, the industrialists are taking the advantage of law, which
impede the growth of trade unions.

SALIENT FEATURES OF TRADE UNION ( note :- can’t found the exact one)

The Trade Union Act, 1926 is associated with the registration and protection of the
trade unions. Following are the objectives of the act:

1. To protect the workers against exploitation by employers

2. To represent the grievances of employees on behalf of them to the management
3. To protect and safeguard the rights of the workers provided to them under the
employment clause or labor laws.
4. To increase participation for decision making
5. To take disciplinary action against the workers doing in-disciplinary acts.

Let us look at some important concepts covered by this act-

1. Trade Dispute [Section 2 (g)]– A trade dispute means any dispute between 1)
employer and employee, 2) employee and employee, 3) employer and
employer and employers concerned with employment or not employment or the
working conditions provided.
2. Registered Trade Unions [Section 2(e)]– A registered trade union simply
means a trade union which is registered under the Trade Union Act, 1926
implementing all the clauses of the act. Some registered trade unions are- All
India Trade Union Congress (AITUC), National Labor Organization (NLO),
etc.

Features of the registered Trade Unions [Section 13]

1. Registered Trade Unions have Perpetual Succession

2. Registered Trade Unions have a common seal
3. Registered Trade Unions can sue others
4. Registered Trade Unions can be sued by others
5. Registered Trade Unions can acquire and hold both movable and immovable
property