Economics

Trade Union

Trade Union

A trade union is usually an association of wage earners formed for the purpose of their mutual help and improvement of the conditions of their employment. It is an organization made up of members and its membership must be made up mainly of workers. They are associations of workers or organizations formed together by labor, workers, or employees to achieve their demands for better conditions in their work atmosphere. These unions are governed by the different laws in different countries, they should follow the procedure and mode of registration for the formation of the trade union according to the law of the country. They help workers in issues like the fairness of pay, good working environment, hours of work, and benefits.

One of the trade union’s main aims is to protect and advance the interests of its members in the workplace. The primary purpose of a trade union is collective bargaining. The union negotiates contracts and conditions with employers, keeping employee satisfaction high, and protecting workers from unsafe or unfair working conditions. It is an association of workers engaged in securing economic benefits for its members.

“Trade Unions help workers in issues like the fairness of pay, good working environment, hours of work, and benefits.”

Trade unions:

  • negotiate agreements with employers on pay and conditions,
  • discuss major changes to the workplace such as large scale redundancy,
  • discuss members’ concerns with employers,
  • accompany members in disciplinary and grievance meetings,
  • provide members with legal and financial advice.

There are three forms –

  • Classical: A trade union’s main objective is to collectively protect the interests of its members in a given socio-economic-political system.
  • Neo-classical: It goes beyond classical objectives and tries to improve up other wider issues like tax-reliefs, raising saving rates, etc.
  • Revolutionary: Establishing the rule of the working class even through violence and use of force etc.

Necessities

Workers join trade unions to achieve certain objectives that they may not be able to achieve in their personal capacity. Trade unions are necessary.

  • To ensure job security and the right pay for the members: The main reason why an employee joins a union is to get him secured.
  • To ventilate the grievances of employees to the management: When the employees in general or some, in particular, have any grievance, they may not be able to convey the same to the management in their personal capacity.

The union negotiates contracts and conditions with employers, keeping employee satisfaction high, and protecting workers from unsafe or unfair working conditions. It is a relatively permanent combination of workers and is not temporary or casual.