1. Trade Unions
Chapter 3

2. Concept and Origin of TUs

3. Definition
According to G.D.Cole, a trade union means an association of workers in one or more occupations – an association carried on mainly for the purpose of protecting and advancing the members’ economic interests in connection with their daily work.
Lester defines a trade union as association of employees designed primarily to maintain or improve the condition of employment of its members

4. Definition
A trade union or labour union is an organization of workers who have united together to achieve common goals such as protecting the integrity of its trade, achieving higher pay and benefits such as health care and retirement, safety standards, and better working conditions.
The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts called Collective Bargaining Agreement) 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

5. definition
According to Section 2(d) of the Trade Union Act 2049, "Trade Union" means the Enterprise level Trade Union registered under this Act for the protection and promotion of the occupational rights of the workers and this expression shall also includes Trade Union Association and Trade Union Federation

6. History
The origins of trade unions can be traced back to 18th century Britain, where the industrial society was rapidly expanding
As collective bargaining and early worker unions grew with the onset of the Industrial Revolution, the government began to clamp down on what it saw as the danger of popular unrest at the time of war.
By the 1810s, the first labour organizations to bring together workers of divergent occupations were formed. Possibly the first such union was the General Union of Trades, also known as the Philanthropic Society, founded in 1818 in Manchester. The latter name was to hide the organization's real purpose in a time when trade unions were still illegal

7. History
Trade unions were finally legalised in 1871, after a Royal Commission on Trade Unions in 1867 agreed that the establishment of the organisations was to the advantage of both employers and employees.
This period also saw the growth of trade unions in other industrializing countries, especially the US, Germany and France.
In the United States, the first effective nation-wide labour organisation was the Knights of Labour, in 1869, which began to grow after Legalisation occurred slowly as a result of a series of court decisions. The Federation of Organizes Trades and Labour Unions began in 1881 as a federation of different unions that did not directly enroll workers. In 1886, it became known as the American Federation of Laborer (AFL).

8. History
In Germany, the Free Association of German Trade Unions  was formed in 1897 after the conservative Anti Socialist Laws of Chancellor Otto Von Bismarck were repealed.
In France, labour organisation was illegal until The Bourse du Travail was founded in and merged with the Fédération nationale des syndicats (National Federation of Trade Unions) in 1895 to form the General Confederation of Labour (France)

9. History
In Germany, the Free Association of German Trade Unions  was formed in 1897 after the conservative Anti Socialist Laws of Chancellor Otto Von Bismarck were repealed.
In France, labour organisation was illegal until The Bourse du Travail was founded in and merged with the Fédération nationale des syndicats (National Federation of Trade Unions) in 1895 to form the General Confederation of Labour (France)

10. Characteristics of TUs

11. Characteristics of trade unions
Association either of employers or employees or of independent workers
Trade unions are formed on continuous basis. They are permanent bodies and not temporary or casual.
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. .

12. Characteristics of trade unions
It achieves its objectives through collective action and group effort. Negotiations and collective bargaining are the tools for accomplishing objectives.
The character of TUs is constantly changing. Adjust to the changes brought about the technology and production system.
Origin and growth of TUs have been influenced by a number of ideologies.
Influenced TUs by economic, social and even political movements.

13. Functions of Trade Unions

14. functions
One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment, i.e.to ensure adequate wages, secure better conditions of work and employment, ensure educational, cultural and recreational facilities, get better treatment from employers, etc.
When the unions fail to accomplish these aims by the method of collective bargaining and negotiations, they adopt go-slow tactics, strike, boycott, gherao, etc.

15. functions
Assist the members in times of need, and help improve their efficiency.
Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and disseminate education and culture among their members.
They also arrange for legal assistance to its members, if necessary.
Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in- door and out-door games, and other recreational facilities.

16. functions
These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership.
Thus, the fraternal functions of trade unions can be summed up as:
To take up welfare measures for improving the morale of workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination

17. functions
Besides the main economic functions, some unions have now started undertaking and organizing welfare activities and also providing variety of services to their members and sometimes to the community of which they are a part, which may be grouped under following heads: Welfare activities provided to improve the quality of work life including organization of mutual fund, cooperative credit societies for providing housing, cooperative stores, cultural programmes, banking and medical facilities and training for women in various crafts to help them to supplement their family income. 

18. functions
Education: Education of members in all aspects of their working life including improving their civic life, awareness in the environment around them, enhancement of their knowledge particularly in regard to issues that concern them, their statutory and other rights and responsibilities, workers’ participation in management. Scheme, and procedure for redressing their grievances. Some central union organisations are also assisting the Government in implementing the Workers’ Education Scheme. 

19. functions
Publication of periodicals, news letters or magazines for establishing communication with their members, making the latter aware of union policy and stand on certain principal issues and personnel matters concerning members, such as births, deaths, marriages, promotion and achievements.  Research: Of late, this is gaining importance and is intended mainly to provide updated information to union negotiators at the bargaining table. Some of the research activities are : (i) collection and analysis of wage data including fringe benefits, and other benefits and services through surveys of comparative practices, data on working conditions and welfare activities; (ii) preparation of background notes for court cases and also position papers for union officials; (iii) collection and analysis of macro data relating to the economy, industry sectors etc.

20. Functions of trade unions
Political functions: These functions include affiliating the union with a political party, helping the political party in enrolling members, collecting donations, seeking the help of political parties during the periods of strikes and lockouts and support the political movements.

21. Theories of Trade Unions

22. marxian (revolutionary) theory
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”.
This theory of trade unionism is called the social revolutionary theory because the trade unions are responsible for revolution in the society.
According to Marx, trade union was the foremost organizing centre to provide locus for streamlining the forces of working classes The trade unions are, for Marx, the instruments to overthrow capitalism.

23. marxian (revolutionary) theory
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 and control of the means of production.

24. Industrial democracy (evolutionary)theory
This theory also known as “theory of industrial democracy” was enun­ciated by Sydney and Beatrice Webbs. Webb’s book ‘Industrial democracy’ is the Bible of trade unionism. 
Trade union movement is not an instrument of social revolution to overthrow the capitalist system and give the control of means of production in the hands of workers. On the contrary, they viewed that if at all there is class conflict, it is because of inequality of bargaining power.
Thus to Webbs, trade unionism is an extension of the principle of democracy in the industrial sphere. In other words, unionism is not an instrument to overthrow the capitalism, but a means of equalizing the bargaining power of labour and capital.

25. Industrial democracy (evolutionary)theory
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.
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.
They consider overthrowing and liquidation of capitalist class unnecessary.

26. Theory of Industrial Jurisprudence
According to S. H. Slitcher the propounder of the “Theory of Industrial Jurisprudence”, workers individually fail in bargaining with employers for pro­tecting 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”

27. 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 of labour movement, i.e., trade unionism is the result.
In other words, trade unionism is a rebellion approach against mechanization and automatization of industrial society to protect workers’ interest in the enterprise.

28. 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.
For him trade unions are moral institutions.
The basis of the organization is non-violence.

29. The Gandhian Approach
Gandhi emphasized 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.
His theory believed in individual purity of means, economic equality and trusteeship.
He admitted the existence of two classes but the theory of TU seeks cooperation between the workers and capitalists.

30. Methods of Trade Unions

31. Methods used by tus and and their legitimacy
Social Dialogue
lobbying
Collective bargaining
Strikes
Lockout
Picketing
Bandhs
Gheraos
Boycott

32. Trade Union Strcture

33. Trade union structure
The unions have to be registered and are separate legal entities.
The Trade Union shall be an autonomous and Corporate body having perpetual succession.
The Trade Union Shall have a seal of its own to carry out its activities.
The Trade Union may acquire, posses, dispose or manage by other means of its movable and immovable property as a person.
The Trade Union may sue or be sued under its name as a person.

34. National level TUs Nepal Trade Union Congress – Independent (NTUC-I)
General Federation of Nepalese Trade Unions (GEFONT)
All Nepal Federation of Trade Unions (ANTUF)
Confederation of Nepalese Professionals (CONEP)
Federation of Nepalese Progressive Trade Unions (FENEP)
Nepal Trade Union Federation (NTUF)
National Democratic Confederation of Nepalese Trade Unions – Independent (NDECONT-I)
Inclusive Trade Union Federation (ITUF)

35. Some examples of trade unions
All Nepal Auto Mechanic Workers Union
All Nepal Security Workers Union
All Nepal Industrial Workers Union
All Nepal Organization Workers Union
All Nepal Sales and Market Management Workers Union
All Nepal Load Unload and Clearing Workers Union
All Nepal Federation of Trade Unions
All Nepal Organization and Bank, Finance workers Union

36. In europe
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 recognized qualification for the craft or skill in question.
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 and tend to be fairly large.
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.

37. In europe
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.
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 lawyers/doctors or nurses.

38. Shop types
A closed shop (US) or a "pre-entry closed shop" (UK) employs only people who are already union members.
A union shop (US) or a "post-entry closed shop" (UK) employs non-union workers as well, but sets a time limit within which new employees must join a union.
An agency shop requires non-union workers to pay a fee to the union for its services in negotiating their contract.
An open shop does not require union membership in employing or keeping workers.

39. Organizational Issues and Challenges

40. Challenges of tus Internal challenges Lack of competent leadership
Internal democracy
Authoritarian
Stagnancy in membership growth
Organizational structure
Gap between the centre and local level union leaders
Lack of communication
Misuse of trade unions for political purposes

41. Challenges of tus External challenges Multiplicity of unions
Inter union rivalry
Fight for dominance in the enterprises
Leadership issue
Political affiliation
Recognition of trade unions
Ideological conflict
Lack of cooperation
Stagnant industrial growth
Migration of youth for foreign employment