Trade Union PPt 2

(1)

TRADE UNION

Imad Rehman Imad Rehman

(2)

C

_ONTENT

C

_ONTENT

y

y INTRODUINTRODUCCTIONTION y

y EVEVOLUTION OLUTION OF OF TRADE TRADE UNION UNION ININ

INDIA INDIA

y

y FEATURESFEATURES y

y OBJEOBJECCTIVESTIVES y

y FUNFUNCCTIONSTIONS y

y REASONS REASONS FOR JFOR JOINING OINING TRADE UNIONTRADE UNION y

y STRUSTRUCCTURE TURE OF OF TRADE TRADE UNIONUNION y

y PRPROBLEMS AND WEAKNESSES OBLEMS AND WEAKNESSES FFAACCED BYED BY

TRADE UNIONS TRADE UNIONS

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DEFINITION

Section

Section 2(h) 2(h) of of the the TTrade rade Unions Unions Act, Act, 1926 1926 hashas defined a trade union as

defined a trade union as

´Any combination, whether temporary or ´Any combination, whether temporary or

permanent, formed primarily for the purpose permanent, formed primarily for the purpose of regulating the relations between workmen of regulating the relations between workmen and employers, or between workmen and

and employers, or between workmen and workmen, or between employers and

workmen, or between employers and employers,

employers, or for or for imposinimposing restrictig restrictiveve

conditions on the conduct of any trade or conditions on the conduct of any trade or business, and includes any federation of two business, and includes any federation of two or more trade unions.µ

(4)

C

C_ONT._ONT.

Trade union is an association either of Trade union is an association either of

employees or employers or of independent employees or employers or of independent workers.

workers.

It is a relatively permanent formation of It is a relatively permanent formation of

workers. It is not a temporary or casual workers. It is not a temporary or casual combination of workers.

combination of workers.

It is formed for securing certain economic, It is formed for securing certain economic,

social

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At present

At present there are twelvethere are twelve CC_ent_ent_ral_ral_T_T_rade_rade_Unio_Unio_n_n

At present

At present there are twelvethere are twelve CC_ent_ent_ral_ral_T_T_rade_rade_Unio_Unio_n_n

Organizations in India:

1.

1. All All IndIndia ia TTrade rade UnioUnionn CCongress (AITUongress (AITUCC))

2.

2. BhBhaararatitiyaya MaMazzdodooror SaSangnghh (B(BMMS)S)

3.

3. CCentre of entre of Indian Indian TTrade rade Unions Unions ((CCITU)ITU)

4.

4. HiHind Mnd Mazazdodooror KiKisasann PaPancnchahayayatt (H(HMKMKP)P)

5.

5. HiHind nd MaMazdzdoooorr SaSabhbhaa (H(HMSMS))

6.

6. Indian Indian Federation Federation of of Free Free TTrade rade Unions Unions (IFFTU)(IFFTU)

7.

7. Indian Indian National National TTrade rade UnionUnion CCongress (INTUongress (INTUCC))

8.

8. National National Front of Front of Indian Indian TTrade Unrade Unions ions (NFITU)(NFITU)

9.

9. National Labor Organization (NLO)National Labor Organization (NLO)

10.

10. TTrade rade UnioUnionsns CCo-ordinationo-ordination CCentre (TUentre (TUCCCC))

11.

11. UnitUnited ed TTrade rade UnioUnionn CCongress (UTUongress (UTUCC) and) and

12.

12. UnitUnited ed TTrade rade UnioUnionn CCongongrress ess -- LenLenin Sin Saraaranini (UTU

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FEA

TURE

S

OF

TRADE

UNION

FEA

TURE

S

OF

TRADE

UNION

y

y It is an organization formed by employees orIt is an organization formed by employees or

workers. workers.

y

y It is formed on a continuous basis. It is aIt is formed on a continuous basis. It is a

permanent body and not a casual or temporary permanent body and not a casual or temporary one.

one.

y

y It is formed to protect and promote all kinds of It is formed to protect and promote all kinds of

interests ²economic, political and social-of its interests ²economic, political and social-of its members.

members. The The dominant dominant interest interest with with which which aa union is concerned is, however, economic.

union is concerned is, however, economic.

y

y It achieves its objectives through collective actionIt achieves its objectives through collective action

and group effort and group effort

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EV

OLUTION

OLUTION OF

OF

TRADE

TRADE UNION

UNION

EV

OLUTION

OLUTION OF

OF

TRADE

TRADE UNION

UNION

IN INDIA

Emergence of

Emergence of TU in TU in India can India can be be defined indefined in

three phases:

y

y The first phaseThe first phase falls between 1850 and 1900falls between 1850 and 1900

during which the inception of trade unions during which the inception of trade unions took place. During this period of the growth took place. During this period of the growth of Indian

of Indian CC_{apitalist enterprises, the working}_{apitalist enterprises, the working}

and living conditions of the labor were poor and living conditions of the labor were poor and their working hours were long.

(8)

y

y CCapitalists were only interested in theirapitalists were only interested in their

productivity a

productivity and pnd profitabilityrofitability. . In In addition addition toto long working

long working hours, hours, their their wages were low anwages were low andd general economic conditions were poor in

general economic conditions were poor in industries. In order to regulate the working industries. In order to regulate the working hours and other service conditions of the hours and other service conditions of the Indian textile labourers, the Indian Factories Indian textile labourers, the Indian Factories Act was enacted in 1881

Act was enacted in 1881 y

y As a result, employment of child labour wasAs a result, employment of child labour was

prohibited. Mr. N M Lokhande organized prohibited. Mr. N M Lokhande organized people l

people like Rickshawalas etcike Rickshawalas etc., ., prepared a studyprepared a study re

report port on their on their worworking conditions andking conditions and submitted it to the Factory Labour

submitted it to the Factory Labour

C

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y

y The Indian Factory The Indian Factory Act of Act of 1881 was 1881 was amendedamended

in 1891 due to his efforts. Guided by educated in 1891 due to his efforts. Guided by educated philanthropists(generous donors) and social philanthropists(generous donors) and social workers like Mr. Lokhande, the growth of workers like Mr. Lokhande, the growth of trade union mov

trade union movement was slow in ement was slow in this phase.this phase. Many strikes took place in the two decades

Many strikes took place in the two decades following 188

following 1880 i0 in an all ill industriandustrial cil cities. ties. TheseThese strikes taught workers to understand the strikes taught workers to understand the

power of united action even though there was power of united action even though there was no union in real terms. Small associations like no union in real terms. Small associations like Bombay Mill-Hands

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y

y The second phaseThe second phase of of The The Indian Indian trade utrade unionnion

movement falls between 1900 and 1947. this movement falls between 1900 and 1947. this phase was characterized by the

phase was characterized by the devdevelopment of elopment of organized trade unions

organized trade unions and political movementsand political movements of the working class. It also witnessed the

of the working class. It also witnessed the emergence of militant trade unionism.

emergence of militant trade unionism.

y

y The The First First WWorld orld WWar ar (1914-1(1914-1918) 918) and and thethe

Russian revolution of 1917 gave a new turn to Russian revolution of 1917 gave a new turn to the Indian trade

the Indian trade union movunion movement and ement and organizedorganized efforts on par

efforts on part of the workt of the workers to form tradeers to form trade unions.

unions.

y

y In 1In 1918, 918, B B P P WWadia adia organizorganized ted trade rade unionunion

mov

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y

y He served strike notice to them and workersHe served strike notice to them and workers

appealed to Madras High

appealed to Madras High CC_{ourt because}_{ourt because}

under ¶

under ¶CC_{ommon Law·, strike is a breach of law.}_{ommon Law·, strike is a breach of law.}

y

y In 1919, Mahatma Gandhi suggested to letIn 1919, Mahatma Gandhi suggested to let

individual struggle be a Mass movement. In individual struggle be a Mass movement. In 1920

1920, , the the FirsFirst Nt Natiational onal TTrade rade uniunionon organizat

organization ion (The (The All All India India TTrade rade UnionUnion

C

C_{ongress (AITU}_{ongress (AITU}CC₎₎_{)) was est}_{was establishe}_ablished._{d. Many of}_{Many of}

the leaders of

the leaders of this organization werthis organization were leaderse leaders of

of the the natnationional al MovementMovement. . In In 19261926, , TTraderade union l

union law came up aw came up with twith the efhe efforts forts of Mrof Mr. . N NN N Joshi that became operative from 1927.

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y

y The third phaseThe third phase began with the began with the emergenceemergence

of independent India (in 1947), and the of independent India (in 1947), and the Gov

Government sought the ernment sought the cooperation of thecooperation of the unions for planned economic development. unions for planned economic development. The working class movement was also

The working class movement was also

politicized along the lines of political parties. politicized along the lines of political parties. For instance Indian national trade Union

For instance Indian national trade Union

C

C_{ongress (INTU}_{ongress (INTU}CC_{) is the trade union arm of}_{) is the trade union arm of}

the

the CC_ongres_ongress_{s Par}_Party_ty._{. The AIT}_{The AITU}_UCC _{is the trade}_{is the trade}

union arm of the

union arm of the CC_{ommunist Party of India.}_{ommunist Party of India.}

Besides

Besides workworkers, ers, white-colwhite-collar emlar employployees,ees, supervisors and

supervisors and managers are also organizedmanagers are also organized by the trade unions, as for example in the

by the trade unions, as for example in the

Banking, Insurance and Petroleum industries. Banking, Insurance and Petroleum industries.

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OBJE

CC

_TIVES

_{TIVES OF}

_OF

_TRADE

_UNION

OBJE

CC

_TIVES

_{TIVES OF}

_OF

_TRADE

_UNION

y

y WWages saages salarieslaries

y

y WWorking orking conditiconditionsons

y

y DisciplineDiscipline

y

y Personnel policiesPersonnel policies

y

y WelfareWelfare

y

y Employee-employEmployee-employer er relationrelation

y

y Negotiating machineryNegotiating machinery

y

y SafeguarSafeguarding organizational health ding organizational health and iand internterestest

of the industry of the industry

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C

C_ONT._ONT.

y

y EDUEDUCCAATION ATION AND TRAIND TRAININGNING..

y

y LEGLEGAL ASSAL ASSISTISTANANCCE.E.

y

y FINANFINANCCIAL DISIAL DISCCOUNTS.OUNTS.

y

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FUN

CC

_TIONS

_OF

_TRADE

_UNION

FUN

CC

_TIONS

_OF

_TRADE

_UNION

y

y Functions of trade union can be broadlyFunctions of trade union can be broadly

classified into : classified into : y

y MILITANT FUNMILITANT FUNCCTIONS.TIONS.

y

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MILITANT FUN

CC

_TIONS

MILITANT FUN

CC

_TIONS

One set of

One set of activities performed by trade unions leadsactivities performed by trade unions leads to the betterment of the position of their members in to the betterment of the position of their members in relation to

relation to their their employmenemployment. t. The aiThe aim of m of such such activitieactivitiess is to ensure adequate wages, secure better conditions is to ensure adequate wages, secure better conditions of work and employment, get better treatment from of work and employment, get better treatment from employers,

employers, etcetc. . When When the the unions unions fail fail to ato accomplishccomplish these aims by the me

these aims by the method of thod of collective bargcollective bargaining andaining and negotiations, they adopt an approach and put up a fight negotiations, they adopt an approach and put up a fight with the management in the form of go-slow tactics, with the management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as militant or fighting

the trade unions are known as militant or fighting functio

functions. ns. Thus, Thus, the the militant militant functiofunctions of ns of trade trade unionsunions can be summed up as:

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C

C_ONT_ONT

y

y TTo achio achieveve hie higher wagher wages ages and betnd better workingter working

conditions conditions

y

y TTo raise o raise the sthe status tatus of workers as a of workers as a parpart of t of

industry industry

y

y TTo protect lo protect labors aabors against gainst victimivictimization zation andand

injustice injustice

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FRA

TER

NAL

FUN

CC

_TIONS

FRA

TER

NAL

FUN

CC

_TIONS

y

y Another set of activities performed byAnother set of activities performed by

trade unions aims at render

trade unions aims at rendering help to ing help to itsits members in times of need, and improving members in times of need, and improving the

their efir efficficienciencyy. . TTrade rade uniounions ns trtry ty to foso fosterter a spirit of cooperation and promote

a spirit of cooperation and promote friendly

friendly industrial industrial rerelationslations and diffuseand diffuse education and culture among their

education and culture among their members.

members. Thus, Thus, the the fraternafraternal l functionfunctions s of of trade unions can be summed up as:

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C

C_ONT._ONT. `

` To take up welfare measures for improving the moraleTo take up welfare measures for improving the morale

of workers of workers

`

` To generate self confidence among workersTo generate self confidence among workers

`

` To encourage sincerity and discipline among workersTo encourage sincerity and discipline among workers

`

` To provide opportunities for promotion and growthTo provide opportunities for promotion and growth `

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REASONS

FOR

FOR JOINING

JOINING

TRADE

REASONS

FOR

FOR JOINING

JOINING

TRADE

UNION

y

y GREAGREATER TER BARBARGAINING GAINING POPOWERWER

y

y MINIMIZE DISMINIMIZE DISCCRIMINATIONRIMINATION

y

y SENSE OF SESENSE OF SECCURITYURITY

y

y SENSE OF PARTISENSE OF PARTICCIPATIONIPATION

y

y SENSE OF BELONGINGNESSSENSE OF BELONGINGNESS

y

y PLAPLATFORM TFORM FOR SELFOR SELF EXPRF EXPRESSIONESSION

y

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`

` GREAGREATTERER BBARGAININGARGAINING POPOWWERER

The individual employee possesses very little The individual employee possesses very little bargaining power as compared to that of his bargaining power as compared to that of his employer

employer. . If he If he is not is not satisfiesatisfied with d with the wage the wage andand other cond

other conditions of itions of employment, employment, he can lhe can leaveave thee the job. It is not practicable to continually resign from job. It is not practicable to continually resign from

one job

one job after after another another when he when he is diis dissatisfiessatisfied. d. ThisThis imposes a great financial and

imposes a great financial and emotional burden uponemotional burden upon the worker

the worker. . The The better better course course for hifor him im is s to to join join aa union that can take concerted action against the union that can take concerted action against the employer. The threat or actuality of a strike by a employer. The threat or actuality of a strike by a union is a powerful tool that often

union is a powerful tool that often causes thecauses the

employer to accept the demands of the workers for employer to accept the demands of the workers for better conditions of

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`

` MMINIINIMMIZEIZE DDISCRIISCRIMMINAINATTIIOONN

The decisions regarding pay, work, transfer, The decisions regarding pay, work, transfer, promo

promotiotion, n, etcetc. . are hare highly ighly subjsubjectiective in nve in natureature. . TheThe personal relationships existing between the

personal relationships existing between the supervisor and each

supervisor and each of his of his subordinatesubordinates mas mayy influe

influence the nce the management. management. Thus, Thus, there there are are chances chances of of fav

favoritismoritisms and s and discrimdiscriminations. inations. A trA trade ade union union cancan compel the management to

compel the management to formulate personnelformulate personnel policies that press for equality of treatment to the policies that press for equality of treatment to the work

workers. ers. All tAll the labhe labor dor decisionecisions of s of the mthe managementanagement are under

are under close close scrutiny of scrutiny of the labthe labor uor union. nion. This hasThis has the effect of

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`

` SENSESENSE OFOF SECURISECURITYTY

The employees may join the unions because of their The employees may join the unions because of their belief that it is an effective way to secure adequate belief that it is an effective way to secure adequate protection from various types of hazards and income protection from various types of hazards and income insecurit

insecurity such y such as as accidentaccident, , injurinjuryy, , illness,illness, unemployment,

unemployment, etcetc. . The The trade trade union union securesecure

retirement benefits of the workers and compel the retirement benefits of the workers and compel the management to invest in welfare services for the management to invest in welfare services for the benefit of the workers.

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y

y SENSESENSE OF POF PARARTTICIICIPPAATTIIOONN

The employ

The employees can ees can participate in participate in managementmanagement of matters affecting their interests only if they of matters affecting their interests only if they join

join trade trade unions. unions. They can They can influeninfluence thece the

decisions that are taken as a result of collective decisions that are taken as a result of collective bargaining betw

bargaining between the een the union and theunion and the management.

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y

y SENSESENSE OF BOF BELELOONGINGNESSNGINGNESS

Many employees join a union because their Many employees join a union because their co-work

workers are ers are the the members members of of the the union. union. At At times, times, anan employee joins a u

employee joins a union undnion under group pressure; er group pressure; if hif hee does not, he often has a very difficult time at work. does not, he often has a very difficult time at work. On the othe

On the other hand, r hand, those who those who are members of are members of aa union feel that they gain respect in the eyes of their union feel that they gain respect in the eyes of their fellow workers.

fellow workers. They can They can also also discuss discuss their their problemproblem with· the trade union leaders.

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`

` PPLALATFOTFORRMM FOFOR SELR SELFF EXEXPPRESSIRESSIOONN The desire for self-expression is a fundamental The desire for self-expression is a fundamental human dri

human drive for most ve for most peoplepeople. . All of All of us wish us wish to sto sharehare our feel

our feelings, ings, ideas anideas and opid opinions with nions with others. others. SimilarlySimilarly the workers also want the management to listen to the workers also want the management to listen to them.

them. A trA trade uade union provides sunion provides such a ch a forum wheforum wherere the feeli

the feelings, ngs, ideas and ideas and opinionopinions of the workers coulds of the workers could be discus

be discussed. sed. It cIt can also an also transmit transmit the feelingthe feelings, s, ideas,ideas, opinions and complaints of

opinions and complaints of the workthe workers to ers to thethe management

management. . The The collectcollective voice ive voice of of the the workworkers ers isis heard by the management and give due consideration heard by the management and give due consideration while taking policy decisions by the

(27)

y

y BBEETTTTERERMMENENT OFT OF RELARELATTIIOONSHINSHIPP

Another reason for employees joining unions is that Another reason for employees joining unions is that emplo

employees feeyees feel that l that unions can fulfill the unions can fulfill the importantimportant need for adequate machinery

need for adequate machinery for properfor proper maintenanc

maintenance of e of employeremployer-employee relations. -employee relations. UnionsUnions help in betterment of

help in betterment of industrial industrial relarelationstions amongamong management and workers by solving the problems management and workers by solving the problems peacefully.

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Str

uct

ure

of

T

rad

e

Uni

ons

Str

uct

ure

of

T

rad

e

Uni

ons

y

y Plant levelPlant level UUnions:nions: The first level in theThe first level in the

structure from below is the plant level union. structure from below is the plant level union. This comprises the unions in one organization This comprises the unions in one organization or factory. Only seven members are required or factory. Only seven members are required to form a

to form a union. union. This This has has lead lead to multto multipleiple unions in one factory.

unions in one factory. y

y LLocalocal LLevel federations. This is the secondevel federations. This is the second

level in the structure from below. The local level in the structure from below. The local trade union federation holds together the trade union federation holds together the plant level unions at the local level in a

plant level unions at the local level in a par

particulaticular craft r craft and and industrindustryy. . These These local local levellevel federations might be affiliated to either

federations might be affiliated to either somesome regional level or national level federation or regional level or national level federation or these may be independent.

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C

C_O_ONN_T_T..

`

` RRegional level federations.egional level federations. These are theThese are the

organizations o

organizations of all the f all the constituent unions in aconstituent unions in a particular state or

particular state or reregion.gion.

`

` NNational federations.ational federations. These are nationalThese are national

level bodies to which plant level unions, local level bodies to which plant level unions, local unions or regional level unions may get

unions or regional level unions may get affil

affiliated. iated. These These are the are the apex bodiapex bodies es at that the tope top of

of the the structustructure. re. They aThey act ct as as coordinatingcoordinating bodies.

bodies. These These nationnational al federationfederations s mamay y havhavee their own regional or state level coordinating their own regional or state level coordinating bodies to which the plant level unions may get bodies to which the plant level unions may get affiliated.

(30)

Proble

Problems

ms &

& weakne

weaknesses

sses of

of

T

rade

Proble

Problems

ms &

& weakne

weaknesses

sses of

of

T

rade

Unions

`

` UUnevenneven GGrowth. The trade unionism in India isrowth. The trade unionism in India is

characterized by uneven growth, both industry-wise and characterized by uneven growth, both industry-wise and area-wise.

area-wise. TTrade rade unions unions are populaare popular in br in big indig industries ustries andand the degree of unionization varies widely from industry the degree of unionization varies widely from industry toto industry. Besides, trade union activities are concentrated in industry. Besides, trade union activities are concentrated in a few states and in bigger industrial centers mainly due to a few states and in bigger industrial centers mainly due to concentration of industries in those places.

concentration of industries in those places.

`

` LLimitedimited MMembership.embership. The number of trade unions inThe number of trade unions in

India has increased considerably. But this has been followed India has increased considerably. But this has been followed by the declining membership per union.

by the declining membership per union.

`

` MuMultiplicity of ltiplicity of UUnions.nions. There exist several trade unionsThere exist several trade unions

in the same establishment. The law permits and gives in the same establishment. The law permits and gives sanctity to small unions. Any seven persons can form a sanctity to small unions. Any seven persons can form a union

union under under the the TTrade rade Unions Act, 1926. Unions Act, 1926. This Act This Act confersconfers rights on such a union. It is allowed under the Act to raise rights on such a union. It is allowed under the Act to raise disputes, file suits, go to conciliation and even bargain with disputes, file suits, go to conciliation and even bargain with employers.

employers. Therefore, small secTherefore, small sections tions of of workers aworkers arere encouraged to form separate Unions. There is no encouraged to form separate Unions. There is no restricti

restriction on on on the number of unions to the number of unions to be registerbe registered in oneed in one establishment.

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C

C_ONT._ONT.

O

Ouu_tside_tside LL_{eadership. Trade unions in India are led largely}_eadership. _{Trade unions in India are led largely}

by peop

by people le who thwho themselves emselves are not are not workers. workers. TheseThese

outsiders are politicians, intellectuals and professionals outsiders are politicians, intellectuals and professionals having no experience of work in industry. Outsiders having no experience of work in industry. Outsiders

continue to dominate the trade unions to advance their continue to dominate the trade unions to advance their personal

personal intereinterests.sts. Financial

Financial ProbProblems.lems. The financial position of the tradeThe financial position of the trade unions is weak because their average yearl

unions is weak because their average yearly income y income is veryis very low and inadequate. The subscription rates are very low. low and inadequate. The subscription rates are very low. Under conditions of

Under conditions of multiplicity of umultiplicity of unions, nions, a uniona union

interested in increasing its membership figures keeps the interested in increasing its membership figures keeps the subscri

subscription ption rate rate unduly unduly lowlow. . As a As a result, result, the futhe funds nds with thwith thee unions are inadequate and

unions are inadequate and they cannot they cannot undertake welfundertake welfareare programs for their members. Another reason for the weak programs for their members. Another reason for the weak financial position of union is that large amounts of

financial position of union is that large amounts of

subscription dues remain unpaid by the workers. Besides subscription dues remain unpaid by the workers. Besides this, unions do not have proper staff and organization to this, unions do not have proper staff and organization to collect subscriptions.

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`

` IIndifferentndifferent AAttitttituude de of of WWorkersorkers.. In India, aIn India, a

large number of workers have not joined any large number of workers have not joined any union. Moreover, all the members of the trade union. Moreover, all the members of the trade unions d

unions do noo not show t show interest interest in thin their afeir affairs. fairs. TheThe attendance at the general meetings of the unions attendance at the general meetings of the unions is very low. Under such circumstance, trade

is very low. Under such circumstance, trade unionism cannot be expected to make much unionism cannot be expected to make much progress.

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