CHAPTER - 2

THEORIES OF COLLECTIVE BARGAINING AND TRADE UNIONS

INTRODUCTION

In t h i s c h a p t e r a n a t t e m p t i s m a d e t o p r e s e n t t h e c o n c e p t o f

C o l l e c t i v e Barga in ing a s p r o j e c t e d by d i f f e r e n t a u t h o r s , a s w e l l a s t h e o r i e s

of C o l l e c t i v e Barga in ing a n d T r a d e Unions.

T h e jungle l a w , w h l c h s y m b o l i z e d t h e community r e l a t i o n s h i p s o f

mankind , h a s s lowly p a v e d t h e w a y t o s e t t l e t h e a f f a i r s b y m u t u a l c o n s e n t o r

a g r e e m e n t by mankind , t h o u x h t h e p r o c e s s i s l a b o r i o u s and ~ a i n f u l . This h a s

a l s o l e f t a d e e p m a r k o n t h e p o l i t i c a l s t r u c t u r e s in v a r i o u s c o u n t r i e s . T h e

d e m o c r a t i c p h e n o m e n o n b e c a m e t h e o r d e r of t h e d a y in m a n y c o u n t r i e s .

Today, e v e r y c i v i l i z e d c o u n t r y s t r o n ~ l y b e l i e v e s i n i m p o s i n g a n d p r a c t i s i n g

d e m o c r a t i c s y s t e m s , n o t on ly in t h e i r p o l i t i c a l l ives, b u t a l s o i n t h e i r d a y t o

d a y lives. This philosophy h a s c r e p t i n t o u n i o n m a n a g e m e n t r e l a t i o n s . T h e

r u l e of t h e t h u m b i s d i s p l a c e d by r e a s o n w h i c h l a t e r s a w t h e b i r t h o f

d e m o c r a c v in t h e f i e l d of i n d u s t r i a l r e l a t i o n s .

Today, t h e r o a d c h o s e n t o r e a c h t h e e n d is d e m o c r a c y . B o t h in t h e

w o r l d o f i n d u s t r y as w e l l as i n c o m m e r c e , a n e w d e v e l o p m e n t h a s b e e n

e v o l v e d o v e r a c e n t u r y f o r n e g o t i a t i o n s b e t w e e n t h e m a n a g e m e n t s and

e m p l o y e e s . T h e t e r m s a n d c o n d i t i o n s o f s e r v i c e a n d e s t a b l i s h m e n t . o f

p e a c e f u l , o r d e r l y r e l a t i o n s a t t h e p l a c e of w o r k , t h r o u g h m u t u a l

u n d e r s t a n d i n g h a s c o m e t o s t a y . M o s t d i f f e r e n c e s a r e s e t t l e d t h r o u g h

c o l l e c t i v e a p p r o a c h a n d t i c a l t h y c o - o p e r a t i o n is n o t i c e d b e t w e e n t h e

m a n s K c ~ n c n t a n d e r ~ l ~ l o y c c s in a I I I ~ j o r i ty of ir \ t lustr ics . This p r o c e s s is k n o w n

a s C o l l e c t i v e Bargaining.

complex institutional process like col lect i~e bargaining is not easily

defined in a single sentence, though the custom appears to demand such an

attempt on the part of authors, research scholars and others. As per general

analysis, collective bargaining is considered as a continuous institutional

relationship that exists between employer and labour organisations, which

represents a dciirietl Kroul) of worliers worliiric, iri i ln unit or organisation,

concerned with the negot ia t ion , admin i s t r a t i on , i n t e r p r e t a t i o n and

enforcement of agreements, which cover a common understanding with regard

to wages, salaries, and hours of work and other working conditions. 1

It covers the negot iat ions between management and union

representatives over wage, working hours and other terms and conditions of

employment. It also not only includes the interpretation of agreement, but

also execution of such negotiations through supervision. For a layman,

collective bar~aining is the procedure by which the wages and conditions of

employment of workers a re regulated through arriving a t an agreement

between the representatives of the employer and the employees.

The phrase 'Collective Bargaininq' is made u p of two words:

'Collective' which implies group action throuRh i t s representatives and

'Bargaining' which suggests hag~ling and/or negotiating. The phrase appears

to have been first coined b y Sydney and Beatrice \vebb2, in their book on

the "Ceoperative Movement". But in industrial democracy a study of Trade

I. Harold W. Davey, Contemporary Collective Bargaining, Prentice Hall, Inc, Engle New jersey, 1987, P. 3

2. Sydney Webb and Beatrice U1et)b, The llistory of T rade Unionism, Augustus, M.Killey, New York, 1965, P.I.

Gnionism published in 1897, t hey en la rged upon i t , desc r ib ing t h e p rocess o f

Col lec t ive Barzaining a s then p rac t i sed in Liritian and i t s ex tens ion f r o m t h e

i n d i v i d u a l u n d e r t a k i n g t o t h e d i s t r i c t a n d i n d u s t r y level a n d t h e n t o t h e

nat ional level. La te r t h e t e r m was enhanced by t h e Gompers in t h e U.XA. 3

The phrase, t he re fo re , imp l i e s " C o l l e c t i v e n e g o t i a t i o n of a c o n t r a c t

b e t w e e n t h e m a n a g e m e n t ' s r e p r e s e n t a t i v e s on o n e s ide and t h o s e of t h e

workers on the other1'. It a l so impl ies a n or ig inal , y e t , f lexible ~ o s i t i o n f r o m

which o n e of t h e n e g o t i a t i n g p a r t i e s or bo th may r e t r e a t g r a c e f u l l y t o a

position of compromise .

T h e I n t e r n a t i o n a l L a b o u r O r q a n i s a t i o n w o r k e r s ~ a n u a 1' d e f i n e s

co l l ec t ive bargaining a s " N e ~ o t i a t i o n aboiit working cond i t ions a n d t e r m s o f

employmen t between an e m p l o y e r , a' g r o u p o f e m p l o y e r s o r o n e o r m o r e

e m p l o y e r s 1 o r g a n i s a t i o n s on t h e one hand a n d one or rnore r e p r e s e n t a t i v e

worker ' s organisa t ions on t h e o t h e r with a view t o r each ing ag reemen t" .

N. lV.chainberlain5 de f ined collective bdrqaininq a s " t h e p rocess w h e r e

by managemen t and union a g r e e o n t h e t e r m s u n d e r w h i c h w o r k e r s s h a l l

p e r f o r m t h e i r du t i e s " . A c c o r d i n ~ l y, C o l l e c t i v e B a r g a i n i n g r e f e r s t o a n

3. Mary Sur , C o l l e c t i v e D a r g a i n i n ~ - A C o m p a r a t i v e S t u d y o f D e v e l o p m e n t s in l n d i a a n d o t h e r C o u n t r i e s , Asia Publishing House, Bombay, 1965, P. 1.

4. In ternat ional Labour O f f i c e , C o l l e c t i v e B a r g a i n i n g - A W o r k e r s Educat ion Manual, Geneva, 9 th Impression, 1973, P. 3

5. C h a m b e r l a i n , Nei1.W. S o u r c e Book o n L a b o u r , M c G r a w Hi l l B o o k Company, Inc, New York, 1958.P.326

Quoted by R. K. Das and B.s.Murthy, C o l l e c t i v e B a r g a i n i n g in India, Discovery Publishing House, Delhi, 1989, P.31.

u n d e r s t a n d i n g betw::en union and m a n a ~ e m - n t w i t h r e g a r d t o w o r k i n g

.conditions in relation to performance of the duties and resoonsibilities of t h e

workers.

t - l a ro ld . \v .~avey~ is of opinion that Collective Barga in ing i s t o c o v e r

t h e negotiation, administration, interpretation, application and enforcement of

w r i t t e n a g r e e m e n t s b e t w e e n e m p l o y e r s a n d u n i o n s r e p r e s e n t i n g t h e i r

employees, set t l ing for t h e joint understandings a s t o policies and procedures

govern ing wages , r a t e s of pay, hours of work a n d o t h e r c o n d i t i o n s o f

e m p l o y m e n t . A c c o r d i n g t o him C o l l e c t i v e Barga in ing r e f e r s t o j o i n t

u n d e r s t a n d i n g s b e t w e e n union a n d m a n a g e m e n t r e l a t e d t o po l ic ies a n d

~ r o c e d u r e s governine, wages, ra tes of pay, hours of work, dnd other conditions

of employment.

According t o Royal Corn~nission ~ e p o r t ~ "Coilective Bargaining is not

only ~ e a c e f u l and inherently voluntary in charac te r , but i t tends t o diffuse

t e n s e s i t u a t i o n s a n d p r o m o t e s a n orderly resolution of industrial confl ic ts

through discussion across t h e table". The Royal Commiss ion v iewed i t a s

voluntar .y a p p r o a c h where in t h e erriployer and err~r,lovees can se t t l e their

disputes under peaceful conditions, which helps t o diffuse t h e tense situation

across the table.

6. Harold. W. Davey, C o n t e m p o r a r y Collect ive Bargaining, Prent ice Hall, TNC, Enqle, New Jersy, 1987, P.3.

7. Verma Prasad, l n d u s t r i a l R e l a t i o n s i n Br i ta in , - A R e v i e w of t h e R e p o r t of t h e Royal Commiss ion on Trade Unions and Employers Associat ion, Indian Journal of lndus t r ia l Lielations, volume^, Noh, April. 1969, P.528

In t h e w o r d s of H o n . A r c h i b a l d c o x , ' "By c o l l e c t i v e b a r g a i n i n g w e

mean, t h e resolut ion of indust r ia l p rob lems b e t w e e n t h e r e p r e s e n t a t i v e s of

e m p l o y e r s a n d t h e f r e e l y d e s i g n a t e d r e p r e s e n t a t i v e s o f e m p l o y e e s a c t i n g

c o l l e c t i v e l y wi th a m i n i m u m of g o v e r n m e n t d i c t a t i o n " . In his w o r d s

C o l l e c t i v e B a r g a i n i n g i s a t e c h n i c by which indust r ia l problems r e l a t e d t o

e m p l o y e r a n d e m p l o y e e s a r e r e s o l v e d w i t h a v i e w t o m i n i r n i s e t h e

Governmen t i n t e r f e r e n c e , while ar r iv ing a t a final unders tanding.

Mary s u r 9 has d e f i n e d C o l l e c t i v e Bargaining as, "a process for t h e

negot ia t ion be tween managemen t and employees of t e r m s and cond i t ions of

se rv ice and t h e e s t ab l i shmen t of peaceful, o rde r ly r e l a t ions at t h e p lace of

work, through mutual s e t t l e m e n t of d i f f e r e n c e s and t h e co-ooeratlon of t h o s e

e n g a g e d in t h e e n t e r p r i s e s " . She c o n s i d e r e d c o l l e c t i v e b a r g a i n i n g a s a

process by pa r t i e s des i re t o s e t t l e d i s ~ u t e s t h r o i l g h m u t u a l c o n s e n t , w h i c h

finally leads t o b i la tera l a g r e e m e n t s and seek co-operat ion a m o n E, all.

In t h e w o r d s o f R a m a s w a r n y a n d U ~ n a ~ a r n a s w a r n y , ' O " C o l l e c t i v e

b a r g a i n i n g h a s been d e s c r i b e d a s t h e g r e a t s o c i a l i n v e n t i o n t h a t h a s

ins t i tu t ional ized indust r ia l conflict . It is t h e m a j o r ins t i tu t ional m e c h a n i s m

for resolving t h e conf l ic t of in t e re s t s be tween labour and m a n a g e m e n t in a

8. Hon.Archibald Cox, Labour Arb i t r a t ion P e r s p e c t i v e and Problem, P. 253.

9. M a r y Sur , C o l l e c t i v e B a r ~ a i n i n p , - A C o m p a r a t i v e S t u d y o f Developments in India and o t h e r C o u n t r i e s , As ia Pub lis h i nE H o u s e , Bombay, P.I.

10. E A . Ramaswamy a n d l jma Ramaswamy, l n d u s t r y and L a b o u r - An Introduction, Oxford University Press, Delhi, 1981, P. l j 5 ,

free society". According to the author, Collective Bargaining is a social

invention for settling differences between the employer and employees, which

has not only institutionalized the conflicts, but has also become a major

mechanism.

Finally, Collect ive Bargaining is a symbolic of the democratic

processes which is a by-~roduct of industrial democracy. Its main philosophy

is to promote and encourage democratic values between the union and

management, i n arriving at an acceptable and desirable agreement, with

regard to their day to day working conditions. In a word, it is not an act

that leads to a warpath, but a measure towards the end of a goal, that is,

well being of ail, i n an organisation. It is a continuous process b y which the

standards of l i v i n g i n an organisation is improved, keeping in view the

national economic interests. It neither embraces individual goals nor political

goals of a particular part in the nation. It s ~ e a k s for all and all are for it.

Simply stating, Collective Bargaining is a symbol of democratic culture which

encourages conflicting parties to settle through mutual consent, across the

table.

THEORIES OF COLLECTIVE BARGAINING :

It is relevant here to study certain important theories of Collective

Bargaining a f t e r defining the word Collective Bargaining. Majority of

theories are developed with the characteristics of explanation, control and

prediction.11 An attempt is made to survey the tex ts of a few theories

relat ing to Collect ive Bargaining. The study involves tracing t he

I I. Richardson R. C, Collective Bar~aininf: by objectives, Englewood cliffe, N. J., Prentice Hall Inc., 1977.. P. 58

d e v e l o p m e n t s i n t h e t h e o r i e s o f C o l l e c t i v e B a r g a i n i n g f r o m S y d n e y a n d

B e a t r i c e W e b b t o t h e p r e s e n t d a y , a n d a n a s s e s s m e n t o f t h e d i f f e r e n t

a p p r o a c h e s .

Webb ' s C l a s s i c a l Approach :

T o w a r d : ; t h e e n d o f n i n e t e e n t h c e n t u r y , t h e w r i t i n g s o f S y d n e y a n d

B e a t r i c e Webb o r i g i n a t e d t h e i d e a of C o l l e c t i v e B a r g a i n i n g . T h e \ V e b b s

r e g a r d e d C o l l e c t i v e B a r g a i n i n g a l o n g w i t h m u t u a l i n s u r a n c e a n d l e g a l

e n a c t m e n t a s a m e t h o d b!. w h i c h u n i o n s t r y t o p r o : e c t a n d i n p r o . l e t h e

w o r k i n g con . j i t ions of t h e i r w o r k i n g lives.

To t h e Webbs, C o l l e c t i v e B a r g a i n i n g i s n o t h i n g bu: t h e e q u i v a l e n t of

ind iv idua l barga in ing . A c c o r d i n g to t h e m , t h e t r a d e un ions a p a r t f r o m t h e i r

o r g a n ' i s a t i o n b u i l d i n g a c t i v i t i e s , p r o v i d i n g m e m b e r s w i t h v a r i o u s k i n d s of

b e n e f i t s , a l s o b a r g a i n w i t h t h e i r e m p l o y e r s f o r t h e i r m e m b e r s c o l l e c t i v e ! y a n d

p r e s s f o r l eg is la t ion , w h i c h f a v o u r s t h e i r i n t e r e s t s . In t h e i r v i e w , t r a d e

u n i o n i s m w a s a n a l t e r n a t i v e t o the m e i h ~ ~ d ? o f rnu tus l i n s u r a n c e a n d l e g a l

e n a c t m e n t . T h e W e b b s r e g a r d e d C o l l e c t i v e B a r g a i n i n g a s a n e c o n o m i c

process. T h e Webbs c o n s i d e r e d Col1e':tive B a r ~ a i n i n q a s t h e e q u i v a l e n t o f t h e

c o n f l i c t o f e m p l o y m e n t , w h i c h w o r k e r s i n d i v i d u a l l y e n t e r i n t o , w i t h t h e

employer . T h e Webbs a s s u m e d C o l l e c t i v e B a r g a i n i n g a s s o m e t h i n g f o r c e d

upon e m p l o y e r s a g a i n s t t h e i r wi l I, by s t r i k e ; a n d o t h e r s a n c t i o n s .

T h e Webbs u n d e r s t o o d C o l l e c t i v e B a r g a i n i n g in a r a t h e r n a r r o w sense .

T h e y c o n s i d e r e d i t as t h e c o l l e c t i v e e q u i v a l e n t o f t h e c o n t r a c t o f

e m p l o y m e n t w h i c h w o r k e r s inzi ividually e n r e r i n t o w i t h t h e e m p l o y e r . When

i n d i v i d u a l s e n t e r i n t o s u c h a c o n t r a c t w i t h t h e e m p l o y e r , t h e d i f f i c u l t y i s

t h a t t h e worker c a n n o t r ea l ly ba rga in wi th his ernplover. The oniy op t ion

l e f t for and individual worker i s e i t h e r t o a c c e p t t h e t e r m s or look f o r s o m e

o t h e r j o b e l s e w h e r e . T h e e m p l o y e r , b y t a k i n g u n d u e a d v a n t a g e o f

compe t i t i on , imposes his cond i t ions on a n un i l a t e ra l basis. This, i n r e a l i t y

becomes a n uni la tera l a g r e e m e n t , but no t a b i l a t e r a l one. in c o n t r a s t , when

employees bargain a s a group with the i r employe r , it c e a s e s t o b e uni la ter i i l

or compet i t ion. At t h e end, worke r s a r e a b l e t o e x t r a c t much b e t t e r t e r m s

f rom the i r employer r a t h e r than a s a n individual.

Secondly, t h e Webbs r ega rded C o l l e c t i v e B a r g a i n i n g a s a n e c o n o m i c

process whereby working men co l l ec t ive lv e x t r a c t t h e mos t f avourab le t e r m s

f rom t h e employer . T h e y d i d n o t g i v e an.! s e r i o u s t h o u g h t t o i t as a n

i n s t i t u t i o n . Too l i t t l e cons ide ra t ion is paid f o r t h e non-economic a spec t s .

Thirdly, i t has c o r n ~ l e t e l y ignored t h e posit ive i n t e r e s t of t h e e m p l o y e r a n d

t h e r e is a n a b s e n c e of d e f i n i t i o n of Co l l ec t ive Bargainin? a s r e f e r r e d by

Flanders. 12

CHAMBERLAIN'S THEORY :

Chamberla in and Kuhn a t t e m p t e d t o o u t l i n e a m o d e r n t r e a t m e n t of

C o l l e c t i v e B a r g a i n i n g in a c o m p r e h e n s i v e way. T h e C h a m b e r l a i n h a s

descr ibed t h e n a t u r e of b a r ~ a i n i n r : in t h e f o r m of t h r e e theories. According

t o h im, C o l l e c t i v e B a r ~ a i n i n g is a m e a n s of c o n t r a c t i n g for t h e s a l e of

labour, a f o r m of indust r ia l governance and a me thod of managemen t . These

theo r i e s a r e a l so known a s Marketing, Governmen ta l and Manager ia l theor ies .

1 2 Flanders Alan, Industrial Re la t ions What is Wrong wi th t h e system, Faber and Faber, London, 1965, P. 2 8

The Marketing theory s ta tes that Collective Bargaining is a means of

contracting for the sale of labour. According to the above, i t is a market

or an exchange relationship which is justified on the ground that i t gives

assurance of voice on the part of the organised workers to the matter of

sale of labour. It resembles the idea of Webbs about Collective Bargaining as

an economic process. But Chamberlain is concerned with the contractual

aspects. This theory is considered as the process which determines under the

terms under which labour continued to be supplied to a company by its

existing and newly hired employees. It helps much i n remedying the

bargaining inequality between unions and management or employers and

employees.

The Governmental theory claims that while the bargaining process has

a contractual character, it is much more than a means of earning the

highest price for labour. A contract is the result of joint rule formulation

by the union and the management. The enterprise is compared t o a state

and the union is seen as sharing power with the management, besides using

its power to advance the interests of its members. The difference between

the earlier one and this, is that the former considers Collective Bargaining

as an economic process whereas the latter has predominantly a political

character in nature. This theory explains the introduction of Industrial

democracy at the place of work, because this theory considers management

as a s ta te and the union as a unit sharinl: t h e sovere ign ty f o r t h e

improvement of its members.

The Managerial theory of Chamberlain s ta tes that Collective

Bargaining is a system of industrial management or the conduct of industrial

relations. According to this, the union and management together arrive a t

decisions on matters relating to labour. This relationship between them is

functional in nature.

These three theories are of successive stages in the development of

the Collective Bargaining process. These theories do not merely state what

Collective Bargaining is, but they s ta te what should be the nature of

Collective Bargaining. They are not exclusive in nature, but on the other

hand are overlapping. Managerial view js supported by the 'Principle of

mutuality' which holds that, those who are integral to the conduct of an

enterprise should have a voice i n decisions of concern to them. 13

The Marketing theory is criticised b y I)ilnlo~ i n his book, Industrial

Relations systems, published in 1956. According to Dunlop, unions bargain

with a view to maximise wages and employment with their managements.

The bargaininq power is the relative ability of both si'des to influence waqes.

Therefore, the Marketing theory has fallen out of favour and has a few

strong adherence today. l a It is because Cham5erlain referred to give more

weightaqe to the power of the union and felt that a union can enforce its

decisions on the management w i t h regard to wajies and employment. Whereas,

on the other hand, Dunlop felt that both sides due to their relative strength

13. Chamberlain N. W. and Kuhn James W., Collective bargaining, McGraw Hi l l book company, New York, 1965, P. 137.

10, Dunlop John.T., lndus t r ia l Re la t ions Systems, Hanry Holt and Company, New York, 1958, P.8,

t r y t o gain maximum r e t u r n out of bargaining. R a m a s w a m y , l 5 i n h i s

book Indust ry a n d Labour pointed o u t t h a t t h e s e t h r e e t h e o r i e s e x p r e s s e d n o t

only d i f f e ren t v i e w s of w h a t h a p p e n s i n C o l l e c t i v e B a r g a i n i n g , b u t a l s o

d i f f e r e n t c o n c e p t i o n s of w h a t shou ld h a p p e n . T h e s e t h e o r i e s a r e n o t

e x c l u s i v e of e a c h o t h e r . A c o n s i d e r a b l e overlap pin^: b e t w e e n t h e m i s

noticed. Flanders a l so expressed t h a t t h e f i r s t t heo ry d r a w s a t t e n t i o n t o t h e

Trade Union ac t ion a s a 'Labour c a r t e l ' in Co l l ec t ive Bargaining. The s e c o n d

one s e e s Col lec t ive Bargaining a s in t roducing a n a u t o n o m o u s a n d a g r e e d r u l e

of l a w i n t o un ion m a n a g e m e n r r e l a t i o n s . T h e t h i r d o n e p a y s a t t e n t i o n

towards making m a n a g e m e n t m o r e d e m o c r a t i c in s e n s e or a d v a n c i n g t h e

indust r ia l democracy. ~ l a n d e r s ' ~ ends his c r i t i c i s m s t a t i n g t h a t t h e m a r k e t i n g

approach is misleading and inadequate because i t s exp lana t ion h a s t o o l i t t l e

a b o u t t h e e c o n o m i c p r o c e s s . He f u r t h e r s t a t e d t h a t t h e G o v e r n m e n t a l

a p p r o a c h was r e s t r i c t i v e by p u t t i n g t h e e m p h a s i s o n p r o c e d u r e s a n d

regulations. He f e l t t h a t t h e s e ru l e s were a n e m b o d i m e n t of t h e s u b s t a n t i v e

rules which has resul ted f rom t h e th i rd approach, t h e Manager ia l one.

DUNLOP'S THEORY :

The Dunlop's t h e o r y i 7 considers Industrial Rela t ions s y s t e m a s a s u b

s y s t e m of t h e wider s o c i e t y on t h e t o t a l s o c i a l s y s t e m . It v i ews t h a t ,

soc ie ty p r o v i d e s c e r t a i n e x t e r n a l inf l u c n c e s a n d c o n s t r a i n t s b u t n o t as

15. E .A .Rarnaswamy a n d L;ma K a m a s w a i n y " l n d u s t r y a n d Labour - An Introduction" Delhi, Oxford University Press , 1989.

16. Flanders Alan, Collective Bargaining Selected Readings, P e n ~ u i n Book Ltd., England, 1969, P.33

17. Dun lop J. T., l n d u s t r i a l Relations Sys tem, Holt, R incha r t a n d Winston lnc. New York, 1958, PP. 7-9.

completelv dominating as industrial relations. It believes that the industrial

relations system is comprised of certain players, certain contexts and

idealogies. These bind the industrial relations system together. The actors

at the place of work and work community are governed by a body of rules

created therein. The central aim of industrial relations system is t he

creation of rules which bind all the players. According to Dunlop, these

actors include workers management and the Government. These actors play

a major part i n the rule making process. This can be identified as follows.

Thus

R: f(a,i,b)

'Xihere R: industrial relations systeln

a: actors

i: ideology

b: body of rules 1 8. According to Dunlop, i n every country industrial relations system is

built through an interaction between the workers, management and

Government. Everyone of these three plays an important role i n the drama

of industrial relations. In any economy, there is also an ideology that is

shared commonly b y the Government, businessmen and workers. This

ideology is defined in terms of democratic ca~italism ; in the USA, in UK.,

as Democratic Socialism or State Socialism i n Russia. In India, the mixed

economy philosophy believes i n the existence of both public and private

sectors side by side . It also expects that there should be no conflicts of

interests between these two sectors In U.S., the Democratic Capitalism

encourages Collective Barqainine, by legislative measures and Government

18. Dunlop J.T., Industrial Relations System, Holt, Rinchart and Winston Inc. New York, P. 8.

i n t e rven t ion where e v e r i t is r e q u i r e d Whereas in U.K., i t i s e n c o u r a g e d

mainly a s a voluntary p r o c e s s The Governmen t se ldom i n t e r f e r e s in U.K.

On t h e otherhand in Russia, t h e Co l l ec t ive B a r ~ a i n i n g s y s t e m does n o t find

fu l l f r e e d o m b e c a u s e , t h e e x i s t e n c e of t r a d e unions is t o l e r a t e d bu t n o t

encouraged. In t h e c a s e of Indian economy, a mixed c u l t u r e of a l l t h e a b o v e

approaches is formed and i n genera l , t h e Governmen t a l lows t h e p a r t i e s t o

s e t t l e thei r d isputes through Col lec t ive Bargaining.

D u n l o p ' s v i e w of Co l l ec t ive Bargaining involves t h e d e t e r m i n a t i o n o f

pr ior i t ies within e a c h s ide in the bargaining process. He a d v o c a t e s t h a t a

homogenous union negot ia t ing with a homogenous m a n a g e m e n t or a s soc ia t ion

is erroneous. According t o him a Kreat d e a l of c o m p l e x i t y of C o l l e c t i v e

B a r g a i n i n g i n v o l v e s a p r o c e s s of c o m p r o m i s e and a s s e s s m e n t of p r io r i t i e s

within e a c h side.

Dunlop's view has ignored a t r ad i t iona l v iew of t h e Webbs. In v i e w of

this, his approach is l i t t l e a p p r e c i a t e d For e v e r y labour m a r k e t t h e r e a r e

t w o sides, t h e f i r s t being t h e wage c o s t s i ncu r red by t h e e ~ n p l o y e r s a n d t h e

s e c o n d , t h e i n c o m e paid t o e m p l o y e e s . It m a y be s i m p l e t o v i e w i n

bargaining t e r m s how i t would be e a s y f o r t h e p a r t i e s t o a t t a i n c o m m o n

in t e re s t without hur t ing both the i r in teres ts . Rut in r ea l i t y , i t i s d i f f e ren t ,

because t h e managemen t may e n t e r t a i n a d ive r s i ty of i n t e re s t , which m a y be

d i f f e ren t t o t h a t of t h c employees ' in teres t . This c u l t t ~ r e a n d a t t i t o d e on

t h e pa r t of t h e managemen t may not h e l ~ t h e Co l l ec t ive Bargaining sys tern

t o c o m e t o a common goal. Plainly, i t is d i f f icul t t o imag ine t h e e x i s t e n c e

of homogenity in t e re s t on e a c h side. The problem b e c o m e s m o r e s e v e r e when

o n e p a r t y ' s i n t e r e s t s is divergent t o t h e o ther ' s . lnspi te of th is , Dunlop's

t h e o r y t r i e d t o provide a f r a m e w o r k for i n t e g r a t i n g m a n y d i v e r s e a s p e c t s o f

t h e f i e l d . He c r e a t e d a n i n f o r m a l s t r u c t u r e , t h a t is, "\X1ebb o f r u l e s " b y

which a c t o r s c a n play a d e f i n i t e ro le , k e e p i n g in v i e w e a c h o t h e r ' s i n t e r e s t s .

FLANDER'S THEORY :

Accord ing t o ~ l a n d e r s , l 9 C o l l e c t i v e B a r g a i n i n g i s a n e s s e n t i a l 1 y r u l e -

m a k i n g p r o c e s s o r jo in t r e g u l a t i o n b e c a u s e t h e t r a d e un ions a n d e m p l o y e r s o r

t h e i r a s s o c i a t i o n s p lay a joint r o l e in f r a m i n g a n d r e g u l a t i n g r u l e s r e l a t e d to

e m p l o y m e n t c o n t r a c t s . T h e r u l e s a l s o p e r t a i n e d t o t h e i r o w n r e l a t i o n s .

S o m e t i m e s t h e s e p a r t i e s m a y s e e k t h e a s s i s t a n c e of a t h i r d p a r t y i n t h e

f o r m of c o n c i l i a t i o n , m e d i a t i o n a n d s o on. T h e t h i r d p a r t y a s s i s t a n c e m a y

s e r v e only a s a n a u x i l i a r y a id t o r e a c h t h e i r a j i r e e r n e n t s . T h e r u l e s f r a m e d

j o i n t l y a r e o f t w o t y p e s , t h e p r o c e d u r a l a n d t h e s u b s t a n t i v e rules. T h e

f o r m e r r u l e s a r e based o n s t a t u t e s a n d r e l a t i o n s h i ~ ~ b e t w e e n t h o s e p a r t i e s

a n d t h e l a t t e r a r e b a s e d on s t a t u s a n d r e w a r d s by j o b p e r f o r m a n c e .

F l a n d e r s o p i n e d t h a t C o l l e c t i v e Barga in ing e n s u r e s t h e r e g u l a t i o n o f j o b in

a n u n i t a c c o r d i n g t o t h e t h e o r y of wages.*' In a s i m p l e s t f o r m , i t s t a n d s

t h a t , l e v e l s of w a g e s in e a c h labour m a r k e t a r e s e t by t h e o p p o s i n g s t r e n g t h s

of e m p l o y e r s a n d employees . E m p l o y e e s c a n p r e f e r i n c r e a s e i n t h e i r w a g e s

t h r o u g h t h e i r b a r g a i n i n g a g e n t s o r un ions w h i c h in t u r n h e l p t h e m t o i m p r o v e

t h e i r e c o n o m i c s t r e n g t h D u e t o i n c r e a s e in t h e i r e c o n o m i c s t r e n g t h ,

e m p l o y e e s c a n p r e v e n t t h e i r e t n p i a y c r s frorn lindertilltinr: s u c h s t e p s w h i c h

m a y lead t o a r e d u c t i o n in e x i s t i n g l a b o u r f o r c e or f r o m r e p l a c i n g t h e

e x i s t i n g labour t h r o u g h s u b s t i t u t i o n w i t h a n e w work f o r c e .

19. E . A . R a m a s w a m y a n d Uma R a m a s w a n y , lndus try and Labour, An In t roduc t ion , O x f o r d Univers i ty P r e s s , D e l h ~ , 1981, P. 7 5

20. D a l e Yoder, Personnel hhnaqement and Industrial Relation Hal l P v t - L t d ; New Delhi, 1972, P.QZO e. a .

T h e b a r g a i n i n g t h e o r y i s a n a d d i t i o n a l i n f e r e n c e of lump-of- labour

theory. The propounders of t h e s e t h e o r i e s r e c o g n i s e d t h a t t h e b a r g a i n i n g

p o w e r o f u n i o n s c o u l d b e in f luen t i a l only within t h e l imits. Even w i t h o u t

fo rma l cu rves of demands , h igh w a g e d e m a n d s c o u l d f o r c e e m p l o y e r s t o

c e a s e opera t ions or find s u b s t i t u t e s for labour, or e n t e r o t h e r labour m a r k e t s

and employ o the r occupat ions .

According t o modern a d v o c a t e s bargaining theory is a mod i f i ca t ion of

t h e general wage theory. The modif ica t ion sugges t s t h a t n e i t h e r e m p l o y e r s

nor employees e n t e r labour m a r k e t s with e x a c t pr ices ( w a g e s ) or n a r r o w l ines

r e p r e s e n t i n g d e m a n d s a n d supply o f labour. They e n t e r t a i n a n e l e m e n t o f

flexibil i ty which c r e a t e s bands r a t h e r than lines. Wage r a t e s a r e d e t e r m i n e d

by bargaining power of t h e par t ies , namely, unions a n d managemen t , w i th in

such a band of oossible waKe ra tes . In v iew of this, a n individual worker i s

made t o a c c e p t lowest ava i l ab le wage r a t e d u e t o lack o f e c o n o m i c s t r e n g t h

t o bargain a s an individual, whereas , t h e union c a n use i t s e c o n o m i c s t r e n g t h

t o s e c u r e higher r a t e s for i t s followers.

Definit ion of Trade Unionism :

An a t t emDt is made in t h e following lines t o de f ine t rade-union a n d

unionism in add i t ion t o t r a d e union t t > c o r i c s . Svcjncy Wel~b a n d B e a t r i c e

ebb,^' def ined a t r a d e union a s a con t inuous associa t ion of w a g e e a r n e r s

fo r t h e purpose of mainta ining and improving t h e working cond i t ions of t h e i r

l i v e s . A c c o r d i n g t o t h i s d e f i n i t i o n , a t r a d e u n i o n i s a p e r p e c t u a l

21. Sydney Webb and Bea t r i ce Webb, The H i s t o r y o f T r a d e U n i o n i s m , Augustus, M. Killey, Newyork, 1965, P. 1.

organisa t ion fo rmed by wage e a r n e r s t o p r o t e c t t h e i r i n t e r e s t s a n d a l s o t o

i m p r o v e t h e i r w o r k i n g condi t ions such a s wage, sa lary , d e a r n e s s a l lowance ,

bonus, promotion and o the r incent ives .

The Indian Trade Union Act of 1926, Sec 2(h) de f ined Trade un ionZ2

as, "any combinat ion whether t empora ry or pe rmanen t , f o r m e d pr imar i ly f o r

t h e purpose of regula t ing the r e l a t ions be tween w o r k m e n a n d e m p l o y e r s o r

be tween workmen and workmen, or be tween employe r s and employe r s o r for

imposing r e s t r i c t ive condi t ions on the conduc t o f any t r a d e or business a n d

i n c l u d e s a n y f e d e r a t i o n of t w o or m o r e t r a d e unions. According t o ? h e

above definit ion, t h e workers' organisa t ions a r e t o be r e g i s t e r e d s e p a r a t e l y

fo r t h e p u r p o s e o f r e g u l a t i n g r e l a t i o n s with t h e i r employers . In Br i t ian ,

t r a d e u n i o n m e a n s a n y c o m b i n a t i o n , w h e t h e r t e m p o r a r y or p e r m a n e n t ,

b e t w e e n w o r k m e n a n d w o r k m e n , or be tween t h e workmen a n d mas te r s , o r

be tween mas te r s and masters , or for imposing r e s t r i c t i v e cond i t ions on t h e

conduc t of any t r a d e or business, whether such combina t ions would o r would

not, if t h e R i n c i p l e Act has been passed, have been deemed t o have been a n

unlawful combinat ion by reason o f someone o r more o f i t s purposes being in

2 3 r e s t r a i n t of t r a d e .

A c c o r d i n g t o t h e R o y a l C o r n m i s s i o n , " T r a d e Union m e a n s a n y

combinat ion of employees , t h e principle a c t i v i t y of which is t h e r egu la t ion o f *

r e l a t ions between employees and employers , whe the r such combina t ion i s i n

22. Johar i C K., Unionism i n Developina Economy, Asia Publishing House, New Delhi, 1967, P.25.

23. Sydney and Bea t r i ce Webb, The History of Trade Unionism, M.Killey, Augustus, New York, 1965, P. 1

r e s t r a i n t t r a d e o r n o t , a n d w h i c h is r e g i s t e r e d upon t h e r e g i s t e r of t r a d e

unions and Employers1 association.2' The a b o v e d e f i n i t i o n i m p l i e s t h a t t h e

p r i n c i p a l a c t i v i t y o f a n y t r a d e un ion is t o r e g u l a t e t h e r e l a t i o n s b e t w e e n

employe r s a n d e m p l o y e e s a n d t h e a s s o c i a t i o n s a r e r e g i s t e r e d u n d e r t h e

r eg i s t e r o f t r a d e unions and employers ' associa t ions .

The above def in i t ions not only include e m p l o y e e s o rgan i sa t ions bu t a l s o

employers ' associa t ions within t h e scope of t h e t r a d e union. Thus, a t r a d e

un ion is a c o n t i n u i n g long t e r m a s s o c i a t i o n of e m p l o y e e s f o r m e d a n d

mainta ined for t h e spec i f i c purpose of ach iev ing and p r o t e c t i n g t h e i n t e r e s t s

of i t s members and t h e i r working conditions. The main a i m of e v e r y t r a d e

union is t o p ro tec t and improve t h e economic s t r e n g t h and working c o n d i t i o n s

of t h e employees. Al l t r a d e unions have s o m e o b j e c t i v e s or goa l s c o n t a i n e d

in the i r cons t i tu t ion and have the i r own s t r a t e g y t o a c h i e v e t h o s e goals.

Based on t h e above, i t c a n be s t a t e d t h a t a t r a d e union is a vo lun ta ry

associa t ion of wage ea rne r s , p romoted for t h e s a k e o f n o t o n l y p r o t e c t i n g

a n d improving t h e economic s t anda rds of i t s members , but a l so t o r e d u c e t h e

m a n a g e m e n t p o w e r , by s t r e n g t h e n i n g i t s p o w e r s i n t e r m s o f C o l l e c t i v e

Bargaining. It i s i n t e re s t ing t o n o t e t h a t unions' ro le and philosophy a r e a l s o

changing accord ing t o t h e needs of t h e t imes . Traditionally, t h e r o l e of t h e

un ion w a s p r o t e s t o r i e n t e d . In t h i s c o n n e c t i o n , Dale Yoder obse rves t h a t

2'. Hon Lord Donovan, Royal Commiss ion on Trade Unions and Employer ' s A s s o c i a t i o n s , 1965- 68, R e p o r t , Her M a j e s t y ' s S t a t i o n e r y Office, London, P. 207.

they have explained their organisations as devices to develop democracy in

working relationships and to protect the individual against arbitrary treatment

by employers. 2 5

Theories of Trade Unions :

1. Classical Model or Marx's Theory:

The first person to write about t rade unions was Karl ~ a r x . * ~ He

thought that labour organisations are the instruments of the working class t o

struggle against the cruelty of the Capitalists. He viewed that the birth of

trade unions was possible due to the emergence of the working class or

proletariat. The main objective of the proletariat was to protect itself from

being sub j ected to Capitalist i n justices such as unemployment, low wages

and long hours of work. The ultimate goal was to abolish the system of

wage slavery.

The maximum approach to trade unions is based on the concept of

class struggle between the Capitalist employers and their workers. Workers

are exploited by the employers i n order to earn more and more profits. This

enforces workers t o unite with a common object to secure more wages and

to resist employers. Thus, trade unions serve as orjianisinji centres and help

workers to unite and do away with the competition among themselves.

Finally, Marx d i d not conceive trade union from a purely economic angle.

25. Dale Yoder, Personnel Management and Industrial Relations, Prentice Hall Pvt. Ltd., New Delhi, 1972, P. b21.

26. Lozovisky, hlarx and the Trade Unions, International Publishers, Newyork, P. 19112.

& 6

He considered these unions to be weapons of larger political struggle.

According to Marx, Unions by joining labour party may even capture

t h e Government, which is the social goal of trade unions. Labour parties

have formed governments with the support of t rade unions - for example,

countries like United Kingdom, France, Canada, Australia, Sweden including

USSR and China. Finally, trade unions a r e viewed as revolutionary and

political organisations.

Writers like the Webbs, Kerr, Siegal have also supported this concept.

According to the Webbs, trade unionism is a response to the heavy pressure

of compet i t ion under t h e Capi ta l i s t ic economy. Workers try t o protect

themselves from such situations by forming into associations. They also

clearly s ta te that the e f fec t s of the haggling of the market on low wages

and bacl conditions o f work forces the workers to protect themselves from

t h e e f f e c t s of f r e e market compet i t ion . "Labour movement is always a

reaction and protest against capita1isrn2' Labour movement is the result of

free market cornpetition and the machine is i ts ma ior cause. According to

Kerr and Siegel "lndustrialisation process is the main cause as it proceeds on

the capitalistic mould for formation of trade unions by workers. 2 8

The above authors a re guided by the assumptions about pe r fec t

competition in the commoditv market. R u t perfect competition is no longer

27. Encyclopaedia of Social Sciences, Labour Movement, Vol.8, Newyork, 1951, P. 682

28. Institute of International Industrial and Labour Relations, Labour Management and Economic Growth, Cornell University, Ithaea, New York, P. 140.

regarded as a rule b u t only as an exception. In the past also it was not

more than an exception. The validity of these views only exists on the

assumption of perfect competition. However, these authors based their

theories on the conditions obtained d u r i n g their time when Capitalism was

the order of the day. It was impossible on their part to imagine that trade

unions may be born in societies other than capitalistic society.

NEO CLASSlCAL THEORY :

Neo Classical theory was developed by four eminent authors, namely,

Kerr, Dunlop, Harrison and Myers (KDHM). The main theme of the K D H M

model is that, the unions emerged i n response to industralisation and not to

capitalism, as envisaged by Marx or Webb. The KDHM theory emphatically

states that lndustrialisation everywhere created organisations of workers, but

they differ widely in their functional structure, leadership and ideology. 2 9

Workers' organi'sations differ due to their functions, namely structure,

leadership and ideology. For instance, in India in general, whereas under the

middle class elite labour associations are viewed positively and the principle

of union activities is based on the job control. Tradc unions perform a wide

range of functions and regulate management a t the local and industrial

levels. Workers' protest is considered positively in reforming the weaknesses

of the system.

In the case of colonial elite workers' organisations form part of the

nationalist and independent movements. The spirit of independence alone can

29. Clark Kerr e t al, Industrialism and Industrial Man - The Problems of Labour and Management i n Economic Growth Harward University press, Massachusetts, Cambridge, 1960, P. 21 6

unite them, but they divide on ideolo~ical, regional and practical grounds. As

a consequence of these, unions suffer from structural imcompatibility and

often base their foundation on personal leadership. Strikes and work

leadership elite has a bearing on the union activities. In the case of INTUC,

the leadership believes i n bilateral approach, whereas ClTU believes in

strikes, when any dispute arise with the management.

The differences are due to the characterstics of the elites who lead

the march of industrialisation In this connection, five ideal types of elites

are presented ( 1 ) identified ( 2 ) middle class ( 3 ) revolutionary intellectual ( 4 )

colonial and ( 5 ) nationalist. The trade union structure and functions are bound

to be different under the leadership of each one of these elites. For

instance under the leadership of dynastic elite workers, organisations are not

encouraged to be formed. Even i f they exist, they perform a limited range

of functions at the plant level and pose little challenge to managerial

decisions. Stoppages of work is the feature of this model, protests i n a

peaceful method is encouraged. The above models feel that strikes are the

main hindrance to industrial progress.

FLANDERS' THEORY :

Flanders viewed that the unions' participation in rule making is as

important as securing better working conditions for its members. He also

considered unions as a mixture of movement and workers organisation in

order to sustain the influence of employers, and to survive they organized

themselves into associations or unions. Organisations help the movement t o

achieve the goals and purposes for which workers are associated, because

organisations provide structures to formulate the policies and goals and to

dec ide t h e n a t u r e o f t h e ac t ion t h a t a m o v e m e n t should unde r t ake . The

s t r u c t u r e imposes discipline on t h e m e m b e r s which in t u r n e n a b l e s t h e m t o

channe l i se the i r r e sources and ene rg ie s t o a c h i e v e t h e unions' goals. In o t h e r

words t r a d e unions need organisa t ion for t h e power a n d m o v e m e n t for t h e i r

v i ta l i ty , b u t t h e y n e e d b o t h p o w e r a n d v i t a l i t y t o a d v a n c e t h e i r s o c i a l

pu rpose . H e n c e , a c c o r d i n g t o Flanders, t h e bes t way t o u n d e r s t a n d union

30 purpose is t o in fe r wha t unions a r e for, f rom wha t t h e y do .

Col lec t ive Bargaining is t h e m a j o r a c t i v i t y unde r t aken by e v e r y t r a d e

union for n o t only improving: working condi t ions bu t a l s o laying ru l e s r e l a t e d

t o the i r jobs and o the r a c t i v i t i e s . Though un ions p a r t i c i p a t e in p o l i t i c a l

a c t i v i t i e s t h e y a r e predominant ly conce rned wi th t h e indust r ia l a c t i o n th rough

Co l l ec t ive Bargaining.

0. CONSUMPTlONlST VS PRODUCTlONTST THEORY :

This t h e o r y 3 ' r e l a t e d t o t h e d e v e l o p i n g e c o n o m i e s l i k e A s i a n a n d

A f r i c a n C o u n t r i e s . T h e m a i n a i m o f t h i s t h e o r y i s t h a t t h e w o r k e r s

organisa t ions should s t r ive more t o inc rease t h e p r o d u c t i v i t y a n d s a c r i f i c e

i m m e d i a t e c o n s u m p t i o n . T h e y s h o u l d , g i v e m o r e o f t h e i r r e s o u r c e s a n d

ene rg ie s t o t h e i n t e r e s t s of t h e c o u n t r y r a t h e r t h a n on w a g e e a r n i n g s .

U n i o n s a r e s u g g e s t e d t o h e l p i n c r e a s e t h e product ion and be r e sonab le in

pushing t h e in t e re s t s o f t h e i r members.

30. Ek Ramaswamy a n d t h e Uma Ramaswamy, Industry and Labour - An introduction Oxford University press, Delhi, 1981, P. 75.

31. Pramod Verma-Surya Mookher jee, Trade Unions in India, Oxford & IBH Publishing Company, New Delhi, 1982, PP 7-9.

The silpporters of t h i s theory i n the dcvclopinfi countries are concerned

about production, rather than distribution In this connection authors like

Ashok Mehta suggested to the unions that, they

I. Educate members to give u p their spend thrift habits,

2 Encourage small savings among workers,

3. Increase productivity through propaganda,

a, Settle disputes through legal means, and

5, induce workers to take part i n social security and provident fund

schemes 3 2

This theory has been criticised by authors like Kassalow and others. 33

Firstly, the issue is exaggerated and stretched far beyond its actual position.

In the early years of industrialisation, consumption need nor nessarily be

carbed in order to boost u p domestic savings, Secondly, higher wages often

act as an incentive and motivate the workers to increase productivity. But

it may not be true in all cases because productivity is influenced by not only

an increase i n wage but also other fac tors such as ernployee's scale,

qualification, experience, ability to guide, the workinfi conditions of machines,

group leadership and other factors. Thi rd ly , it is said that in the ,case of

32. Ashok Mehta, The M e d i a t i n g R o l e of t h e T rade Union in underdeveloped Countries, Economic Develo~ment and Cultural Change, V01.6, 1957- 58, P. 18.

33. Paul Fisher, Union in less Developed Countries - A Reappraisal of t h e i r Economic Role i n Everett M. Kassalow National Labour Movelrients i n the post war worltl, North-Western Ilniversity Press, 1963, PP 102- 115.

u n d e r d e v e l o ~ e d c o u n t r i e s , t h e v o l u m e of p r o d u c t i o n i s low, i t i s p r e m a t u r e t o

q u a r r e l o v e r d i s t r i b u t i o n by t h e unions. Las t ly , L a b o u r c o n s t i t u t e s o n l y a

s m a l l percer l ta j ie o f t h e t o t a l p o p \ ~ l a t i o n a n d h e n c e t h e r e i s t h e r e m o t e

p o s s i b i l i t y t h a t t h e i r c o n s u m p t i o n would in a n y s i g n i f i c a n t m a n n e r i n c r e a s e

t h e g e n e r a l c o n s u m p t i o n leve l of t h e e c o n o m y a s a whole.

f l o w e v e r , t h e m a j o r c o . n r n i t i n e n t o f e v e r y t r a d e u n i o n i s t o t h e

w e l f a r e o f i t s m e m b e r s a n d n o t t o t h e f i rm, i n d u s t r y a n d t h e n a t i o n . T h e

Union c o l l e c t s i t s m e m b e r s ' c o n t r i b u t i o n s a n d t h e i r l o y a l t y s p e c i a l l y f o r t h e

p u r p o s e of p r o t e c t i n g t h e i r i n t e r e s t s , n o t t h e i r a l l e g e d t r u e or b e s t i n t e r e s t s

a s d e f i n e d by o t h e r s . 3 4

It i s o b s e r v e d f r o m t h e a b o v e s t u d i e s , t h a t g e n e r a l l y u n i o n s a r e a g a i n s t

C a p i t a l i s m , t h o u g h t h e y a r e p a r t of i t . T h e C a p i t a l i s t S o c i e t y t r i e s t o

d i f f e r e n c i a t e b e t w e e n C a p i t a l a n d L a b o u r i n a s o c i e t y . W o r k e r s as

a s s o c i a t i o n s i n h e r i t t h i s d i f f e r e n c e as t h e y b e l o n g t o t h e w o r k i n g c l a s s ,

n a t u r a l l y t h e i r v e i w s a r e n a r r o w . Unions on ly f i g h t f o r t h e b e t t e r m e n t o f

t h e i r m e m b e r s a lone . T h e r e i s n o c o m p a r i s o n b e t w e e n t h e p o w e r o w n e d by

t h e m a n a g e m e n t a n d labour. C a p i t a l i s m o r e p o w e r f u l , b e c a u s e i t c a n be

u s e d f o r v a r i o u s p u r p o s e s hnd by v a r i o u s i n d u s t r i e s . S o m e t i m e s , C a p i t a l c a n

be u s e d t o d i s p l a c e labour . On t h e o t h e r h a n d labour i s r igid.

T h e u l t i m a t e a i m of t r a d e un ions i s t o a b o l i s h C a p i t a l i s m a n d w a g e

s l a v e r y a n d e s t a b l i s h s o c i a l i s m , in w h i c h n o t o n l y t h e w o r k i n g c l a s s , b u t a l l

34. F l a n d e r s A l a n , management a n d O n i o n s , London, F a b e r a n d F a b e r , 1970, PP.39-40

layers of society are freed from the clutches of Capitalism, A trade union,

in the veiw of many, is a wage influencing institution. The striking power

of a union decides its impact on influencing the wages. The Union also p r e

ssurises the management through various conflicting methods, to win over the

managements. Unions have become powerful through advertising media as

and when they go on a strike against their employers, more advertisement is

made in the news papers. Certain unions utilise their funds lor collective

approach in order to resolve their problems with the managements. In a

majority of the cases, most unions prefer strike as a last resort.

The word Trade Unionism describes the ex i s t ence of workers '

associations or org,li~isatioiis, wliosc ob jec t is to represent tlioir rrierr11)ers'

interests either individually or collectively on such matters pertaining to pay,

bonus, medical facility, and other working conditions. Ail their resources are

diverted to this end. Trade Unionism can be said as various act ivi t ies

undertaken b y trade unions t o achieve their aims, such as improving the

working conditions of their followers, either by peaceful or striking methods

under different conditions. The Neo-classical approach finds a place in the

lndian conditions, The nationalist elite of this model fits for lndian

conditions.