TRADE UNION
Definition: Labour unions or trade unions are organizations formed by workers from related
fields that work for the common interest of their members. They help workers with issues like
the fairness of pay, good working environment, hours of work, and benefits. They represent a
cluster of workers and provide a link between the management and workers.
Objectives of Trade Union:
The following are the objectives of trade union:
(1) To improve the economic la ot of workers by securing them better wages.
(2) To secure for workers better working conditions.
(3) To secure bonuses 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 labor 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 workforce for improving the productivity of the system.
Functions of Trade Unions:
1
(1) Collective bargaining with the management for securing a better work environment for the
workers/ employees.
(2) Providing security to the workers and keeping a check on the hiring and firing of workers.
(3) Helping the management in the redressal of grievances of workers at the appropriate level.
(4) If any dispute/matter remains unsettled refer 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 favor of labor/workers.
Benefits of Trade Union:
Workers join a trade union because of a number of reasons as given below:
1. A worker feels very weak when he is alone. Union provides him an opportunity to achieve his
objectives with the support of his fellow colleagues.
2. Union protects the economic interest of the workers and ensures reasonable wage rates and
wage plans for them.
3. Union helps the workers in getting certain amenities for them in addition to higher wages.
4. Union also provides in certain cases cash assistance at the time of sickness or some other
emergencies.
5. Unions organize negotiations between workers and management and are instruments for the
settlement of disputes.
6. Trade union is also beneficial to the employer as it organizes the workers under one banner
and encourages them to follow to peaceful means for getting their demands accepted.
7. Trade union imparts self-confidence to the workers and they feel that they are an important
part of the organization.
2
8. It provides for promotion and training and also helps the workers to go to higher positions.
9. It ensures stable employment for the workers and opposes the motive of management to
replace the workers with automatic machines.
10. Workers get an opportunity to take part in the management and oppose any decision which
adversely affects them.
