Trade Unions

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A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives.

The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.

This definition is very exhaustive as it includes associations of both the workers and employers and the federations of their associations. Here, the relationships that have been talked about are both temporary and permanent. This means it applies to temporary workers (or contractual employees) as well. Then this definition, primarily, talks about three relationships. They are the relationships between the:



workmen and workmen,



workmen and employers, and



employers and employers.

Thus, a trade union can be seen as a group of employees in a particular sector, whose aim is to negotiate with employers over pay, job security, working hours, etc, using the collective power of its members. In general, a union is there to represent the interests of its members, and may even engage in political activity where legislation affects their members. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. They protect the economic, political and social interests of their members.

Features of trade unions:

1. It is an association either of employers or employees or of independent workers. They may consist of :o

Employers’ association (eg., Employer’s Federation of India, Indian paper mill association, etc.)

o

General labor unions

o

Friendly societies

o

Unions of intellectual Association)

labor

(eg,

All

India

Teachers

2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They persist throughout the year.

3. It is formed to protect and promote all kinds of interests – economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic.

4. It achieves its objectives through collective action and group effort. Negotiations and collective accomplishing objectives. bargaining are the tools for

5. Trade

unions

have

shown

remarkable

progress

since

their

inception; moreover, the character of trade unions has also been changing. In spite of only focusing on the economic benefits of workers, the trade unions are also working towards raising the status of labors as a part of industry.

IMPORTANCE

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

Role

The Role of Trade Unions in Industrial Relations
by James Williams, Demand Media

Trade or labor unions have been around since the 1930s to resist through equal bargaining power the domination of employers over employees and to represent workers’ interests in the employment relationship. It is through union efforts that workers benefit from better pay and working conditions, and that they are treated with dignity and respect at work. The importance of trade unions cannot be overstated even though membership has been on a steady decline.
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Collective Bargaining
Labor unions developed to grant employees equal bargaining power with their employers, who traditionally had the ability to exclusively set the terms and conditions of work and pay. Unions represent workers within a given industry in negotiations with their employers. Since the union comprises a group of workers, it has a greater voice than if employees were dealing with employers individually. For example, unions are credited with abolishing sweatshops and child labor in the United States because they pushed for these practices to end. The National Labor Relations Act guarantees employees’ right to bargain collectively through their chosen labor union representatives. Unions can organize strikes, boycotts, go-slows and sit-ins to get employers to consider their proposals.

Employee Welfare
Unions have successfully fought for better terms and conditions for workers. They represent workers’ interests and have secured a variety of benefits, such as higher wages for unionized employees, work-life balance characterized by reasonable work schedules, job security and protection from arbitrary action by employers. In a September 2012 essay on the CNN website, Democratic strategist Donna Brazile asserted that is also due in part to union activity that discrimination in the workplace was outlawed and that workers have access to health care, safe working conditions and guaranteed Social Security. Unions not only have given workers dignity in the workplace, but they also consistently facilitate enhanced welfare and standards of living for American workers.

Unfair Practices
Labor unions check the unfair labor practices of employers. The NLRA declares that it is unlawful for employers to dominate a union, discriminate against workers engaged in union activity, victimize workers who file charges against them with the National Labor Relations Board or interfere with employees engaged in concerted union activity. If the employer does any of these prohibited acts, the union can take it up with the board on behalf of the employees. For example, the union representing Boeing Co. engineers and technical workers filed charges against the company for interfering with employees engaging in concerted union activity. The board investigates charges and may take a variety of actions, including issuance of cease-and-desist or reinstatement orders to remedy unfair treatment against employees. Unions ensure that employers comply with the law and can lodge appeals in federal court if employers do not respect board decisions.

Legislation
Unions also play a key role in developing labor laws and regulations for effective worker protection. The unions initiate the push for regulation in areas that concern employees in the workplace. They lobby for the creation of laws and regulations and disseminate information to the employees about them. Measures such as the NLRA, the Social Security Act, the Family Medical Leave Act and the Occupational Safety and Health Act exist as a result of union efforts for better terms and conditions for workers. Unions monitor the status of implementation of employee welfare laws and regulations to ensure they are properly enforced.

Some more roles are:Objectives 1. To define the nature of a trade union. 2. To create an understanding of the functions of a trade union in the Caribbean. 2.1 Definition of a Trade Union A trade union is an organization based on membership of employees in various trades, occupations and professions, whose major focus is the representation of its members at the workplace and in the wider society. It particularly seeks to advance its interest through the process of rule-making and collective bargaining. 2.2 The Function of Trade Unions In each country, trade union legislation (usually a Trade Union Act) gives a legal definition of a trade union, and sets out its objectives. The Labour Relations Code 1976, established under the Labour Relations and Industrial Disputes Act 1975 of Jamaica sets out what is considered to be the main objectives of the trade union: “The main objective of a trade union is to promote the interest of its members, due regard being paid to the interest of the total labour force and to the greater national interest. To achieve this aim, trade unions have a duty to maintain the viability of the undertaking by ensuring cooperation with management in measures to promote efficiency and good industrial relations. Trade unions should therefore:

1. where appropriate, maintain jointly with management and other trade unions effective arrangements at industry or local levels for negotiation, consultation, and communication and for settling grievances and disputes; 2. take all reasonable steps to ensure that their officials and members observe all arrangements; 3. provide for the training of delegates in the scope of their powers and duties and the day-to-day operation of the unions; 4. provide adequate educational opportunities for the advancement of their members; 5. be properly staffed to serve the needs of their members, and allow for effective lines of communication between such staff and the rank and file membership; 6. encourage members to take part in their activities by adopting such means as would best allow them to do so, including the compilation and distribution of information; 7. make available information pertaining to the rules and policies of the union; 8. provide adequate advisory services for their members and in particular assist them to understand the terms and conditions of their employment; and 9. identify trends in industrial relations to help their members to anticipate and keep abreast of change.” This piece of national legislation provides a relatively restrictive function for trade unions, in keeping with the purposes of the legislation. Trade unions themselves set out their functions within their rulebooks. Most of them add others, in addition to the functions mentioned above, including interventions in the economy through sponsorship of trade union business activities and cooperatives, and political roles, among others. 2.3 The Role of Trade Unions Generally, it is possible to summarize the various functions which Caribbean trade unions have undertaken: 1. Political role, using collective power to influence decisions on behalf of members and the wider society; 2. Market role, by intervention wage bargaining and thus impacting on the economy; 3. Regulatory role by setting standards in relation to jobs and terms and conditions; 4. Democratizing role, in creating industrial democracy at the workplace; 5. Service role, in promoting the intervention of members; 6. Enhancement role in helping to develop the human potential of members; and 7. Welfare role in providing assistance to particular groups. 1. Political role In many instances, trade unions were established in the Caribbean before the advent of political parties which evolved from the trade unions. This resulted in a close nexus between the two institutions which were often organically linked. In the early stages of their development, some trade unions functioned as rate payers institutions, increasing the wages of members who were then able to become electors by reaching the required franchise qualifications. The vote of trade union members was important in assisting labour leaders to become members of the political elite. In every country in the region, at some time or another, trade

union leaders became politicians. Trade unions were able, through their leadership, to lobby for significant social and labour legislation to be placed on the statute books. In addition, they were able to ensure that consolidated funds provided for the improvement of the infrastructure, so that roads, housing and sanitation facilities were available in areas that were depressed. In recent times, some territories have moved away from leadership which arose out of the nexus between trade unions and political parties. Many political leaders have reached their position through their professions as lawyers, economists, agricultural scientists and similar occupations and do not necessarily relate to trade unions through a bond of association. There are still leaders who owe their elevation to an association with the trade union. Many trade unions are able to use their influence, and sometimes power, to impact on political decisions. There are many who recognize that power relations are at the basis of industrial relations, and that trade unions are political institutions. Some recognize the trade unions as exercising a countervailing power against the state, and the private sector, on behalf of their membership which comprises mainly the working classes. In exercising their political power, trade unions have to be wary of the dynamics of party political structures in the communities. In some territories, trade unions are still linked, almost organically, with political parties. In others, there are less-structured relationships. In others, trade unions remain uncommitted to the party political process, and while influencing the process, remain uncommitted and unrelated to any particular party, basing power on the support of the membership. The reality is that as political parties have matured, developing their own machinery, particularly for election purposes, and providing status and opportunity for their members, they have had to rely less on trade unions. Trade unions, because of their basis and deep commitment to their membership, which is largely drawn from the cohorts of the working class, may find themselves in conflict with parties which are often multi-class coalition dominated by interests which are not always favourable to the masses. Stabilization and structural adjustment policies pursued by some political parties supposedly linked to the labour movement, have led to alienation and disruption of relationships between parties and unions. There is a growing tendency in the region for trade unions to disconnect from the organic relationship with political parties.

2. Market role The market, or economic role of trade unions is no doubt the dominant role practised by Caribbean trade unions. Exclusive, collective bargaining trade unions negotiate wages and salaries, helping to distribute the value added in the business firm and increasing the spending power of their members in the economy. In societies where the majority of people are wage or salary earners, the role of the trade union in regulating the local economy is extremely important. Labour costs are an important consideration in determining the ability of locally-produced goods and services to compete against any externally produced items. In many Caribbean countries, there is constant tension between the state and the unions, and between the private sector and the unions, on the market role of trade unions. Because of the relatively large role which the public sector still plays as an employer in the Caribbean, public sector wage/salary negotiations are often a barometer of the economic situation in most territories. There is a tendency for public sector negotiations to serve as a platform or indicator of levels of settlement in other areas of the economy. There is an underlying assumption that government should be a more liberal and generous employer than others in the community. There was also a perception that government could never argue that it was unable to pay as it could have recourse to taxation to pay for salary increases. While maximizing benefits to their members, trade unions are always conscious of the possible impact of their bargaining on inflation and employment. Caribbean countries are generally open economies, dependent on trade for survival. In many instances, inflation is determined by the cost of goods and services which are imported. There is not much evidence to suggest that trade unions are responsible for cost-push inflationary tendencies in the region. In some countries, trade unions are accused of contributing to regimes of high wages and high labour costs, leading to unemployment as investments are not encouraged, and existing businesses falter as a result of high costs. Caribbean countries generally do not provide information on the distribution of income so as to assess the movement of labour’s share in the income. There is some indication that there is increasing inequality in wage and salary distribution. In some countries, areas that are not unionized, such as the offshore banking and financial sectors, are attracting salaries in excess of the national average which is likely to be impacted by collective bargaining. The point has to be made that the trade union’s economic or market function in the Caribbean is generally reactive. Trade unions direct their efforts at protecting their workers against the ravages of inflation, and trying to improve living standards which have been depressed for historical reasons. They also try to defend their member’s right to work and are supportive of

both macro and micro economic policies which would be conducive to high employment. 3. Regulatory role The early craft union has as one of its basic functions the regulation of apprenticeship and setting of standards of work required of journeymen and master craftsmen, and linking this to pay. Trade unions are still influential in determining and establishing job standards in the workplace. Increasingly, management has sought to regain control of the workplace and to determine unilaterally, matters relating to the nature of jobs and other working conditions. Even at the international level, employers are claiming that workplace standards, in keeping with ILO Conventions and Recommendations, are proving onerous and difficult to maintain. There is an increasing trend towards attempts at rolling back many of the gains achieved by trade unions. The strength of the trade union at the workplace level determines its ability to perform its job regulation function. Strong trade unions have entered into arrangements where the power of management has to be shared with the union at the workplace. Jointly agreed procedures for dealing with major issues in the workplace e.g. grievances, discipline, job evaluation, redundancy, work changes, safety and health, along with the right to negotiate terms and conditions through collective bargaining, provide the sound basis for unions to perform regulatory functions. Trade unions are currently trying to expand such joint arrangements to cover areas such as training, equal rights for part-time employees, sexual harassment, treatment of those with chronic diseases, and other areas. On the other hand, some employers are seeking to side step the trade union by engaging in direct contract with employees rather than encouraging union participation. 4. Democratizing role The trade union’s rank and file are provided with the opportunity of electing their stewards, committees of management, and through the delegate system, their executives and other leaders. The process of preparation for collective bargaining also encourages worker participation. Trade unions are fertile institutions for the furtherance of participatory democracy, for the freedom of assembly, the right to speak freely and the right to exercise choice. Traditionally the separation between capital and labour has created a situation where it has been accepted that management is imbued with the right to manage, which is binterpreted to mean that workers are mere resources to be manipulated like any other resource. Paternalistic, autocratic and top- down management has been characteristic of the social

relations in the workplace. Indeed, there is a notion that the plantation has created the model of relations for other workplaces in the Caribbean. Decisions were made at the top and, through the route of edicts and directives, were passed through various levels to the rank and file. Like opportunity was afforded to challenge these directives. Those who tried to do so were branded by the system. Conformity and compliance were highly valued. The hierarchical system within the workplace conformed to the system within the wider society, with those at the level of the boardroom and management deriving from a different class origin, and sometimes, a different ethnic origin from those on the shop floor. Power in the society was reflective of power in the workplace. Access to popular political participation, through the right to vote, has led to demands by workers for economic democracy, defined as the right to participate in industrial democracy. Trade unionists have demanded the right to have workers sit on the Boards of Directors as the epitome of workplace democracy. 5. Service role Trade unions attempt to develop services which are valuable to their members as individuals, outside of the scope of collective bargaining. In the early stages, this took the form of mutual assistance, but with the onset of the welfare state, with provisions for national insurance and similar schemes, this demand has abated. Yet trade unions have recognized the need to expand their role in assisting their members in a variety of areas, and so have undertaken a number of non-traditional ventures on behalf of their members. Some of the most successful cooperative organizations, particularly credit unions in the Caribbean, have been developed by trade unions on behalf of their members. Trade unions have also developed housing land-lease schemes, transport and service stations, banks, laundermats, cinemas, stores, insurance programmes and other schemes for the benefit of members. One of the major matters agitating the concern of some trade unions is the issue of pension funds, contributed by members. In many instances, trade unions negotiate pensions for workers. Contributions are collected and managed by professional firms which become extremely wealthy. Trade unions are becoming aware that they should develop the expertise to manage such funds on behalf of their members. In recent times also, the closure of companies or parts of companies has led to opportunities for worker ownership and control of business. Trade unions have been able to offer professional, advisory and management services to assist in establishing businesses for the workers, and in some cases, trade unions have actually become shareholders in the business. The non-traditional membership services can be attractive and appealing and can act as focal

points for recruiting members who are attracted by the image of the unions as a diverse and effective organization. Trade unions also supply legal and medical services for their members. Some trade unions recognize the high cost of legal representation in the Caribbean and seek to provide legal assistance to their members. This is especially important in areas where the collective bargaining and grievance handling process is highly regulated. There are a number of instances where trade unions have established partnerships with medical practitioners to provide services for their members in a proactive system. Regular medical check-ups and inspections help to deter the need for corrective medicine, and leads to a healthier and more effective membership. 6. Enhancement role Trade unions provide the opportunity for workers to develop pride in themselves, to reach positions of leadership and to excel, where without this vehicle of mobility, many would have had a stultified existence. Many persons who have moved on to management and other leadership roles can testify to their beginnings as shop stewards who were given basic training and opportunity for leadership in the labour movement. Trade unions can develop as multi-issue, multi-functional organizations catering to the wide interest of their members. Thus, for those diverse interests, trade unions can provide organizational support to enhance their effectiveness. Groups such as the youth, women, and the elderly can be given the opportunity to develop themselves through programmes which cater to their needs. The role of trade union education is critical to helping members to develop their potential. 7. Welfare role Some trade unions have actively engaged in providing welfare services for members and even for the wider community. This takes various forms including the employment of those who have disabilities, as an example to the wider community, the provision of family services including baby creches, child care centres and old people’s homes, as well as play and recreational centres in depressed areas. The reality is that trade union functions have developed out of historical circumstances. In some situations, trade unions function within the narrow business union function, limiting their interventions to their market and job regulation aspects. In other areas, trade unions are multi-issue and multifunctional institutions, conforming more to the idea of the trade union as being part of a movement. In some instances, trade unions transcend the representation of their membership and reach

out on behalf of non-members, including the unemployed, the disabled and others who need their assistance in the wider community.

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