Industrialization was necessary to cater to the needs of increasing populations all over the world. There was an increase in demand of items for human consumption and use in homes & working areas. Initially Industries were limited to a few countries in the world. However their subsidiaries and new indigenous industries were set up slowly. Few industries also encouraged Research and development and introduced improved version of products to fulfill the needs of the customers. Market research started doing studies and market surveys to identify the need of most sections of the society. The research needed focused approach and developed varieties. The demand of raw material increased. This inducted more people to get involved in supply chain. These variations in job required more skilled and unskilled workers. Education institutions came into action and designed courses for the need of the industries and they fulfilled industry needs. Increased human involvement from different ethnic origins and cultures. They had one thing in common to get involved in some employment for earning, but there has been some diversity in their life style and dreams. This stimulated desires; hence disputes were bound to arise.
A trade union is an organization of employees formed for the purpose of securing benefits for the staff. It is an association aiming on maintaining and improving the conditions, personal and working environment of the staff. The trade union takes in count the contractual employees as well as permanent.
Thus, the trade union aims to negotiate with employers over compensation, job security, working hours, etc., using their members. In general, a union is there to protect the interests of its members, and may even engage in political support, where legislation adversely affects their members. Trade unions are basically formed to protect the common interests of its members and also aim for their welfare. They protect every basic need and interest of their members.
Features of trade unions:
1. It is an association for employers or employees.
They may consist of:-
• Employers’ association
• Labour Union
• Friendly societies
• Unions of intellectual workers
2. It is formed to be a permanent body which persists throughout.
3. It is formed to promote all kinds of interests which may be economic, political and social.
4. Collective action is needed to claim its objective. Negotiation or bargaining is used to accomplish its Objective.
5. Trade unions have brought about a great change in the Industrial Business. Instead of working for personal benefits the trade union works for the prosperity of the workers.
Trade unions are organizations of workers that seek through collective bargaining with employers to:
• To improve the condition of the workers
• Provide them job security
• Protect workers against unfair dismissal
• Provide better working conditions
• Offer a range of services including support to the ones claiming compensation for injuries sustained during a job
The main functions of a trade union are to represent the members and negotiate with the management. With the strength or collective group it becomes possible to bargain the condition.
Trade Union is also known as “unity is strength”.
There are a lot of positives which come from the formation of Trade Unions, with its result the workers assure better productivity and efficiency and also the relation between the union and the management becomes strong:
• It is ideal for the industry management to recognize one union and establish the ground rules for deciding the next course of action.
• This forum could be an ideal place to establish communication and record of minutes proceeding of meeting is kept as a record for future reference.
• The morale and motivation level of staff would be enhanced and the end result would be greater
• Trade union can be a supportive catalyst in enhancing business and provide significant improvement if there is a Win-Win situation.
Employee Association is an association which is not recognized. The laws framed by the state cover only a class of employees, who are at the grass root level. Those covered under Employee Association may be a group of staff at supervisory level or first line of middle management. The functioning of the association is on similar lines.
The formation of trade unions has been advancement towards making healthy relationship between workers and management. The working committee works as a bridge to resolve disputed issues and wage revision exercises. However caution should be taken to give responsibility to mature and level headed people, otherwise this may lead to complications. An industry should always avoid such situations for a healthy relationship.