It is basically to protect the workers from exploitation by the employers and to protect the workers’ interest that need for trade unions arise.
Long hours of work, meagre salaries, bad working conditions, employment of women and children for heavy manual work, dirty environments, unfair labour practices are some of the ways in which the workers are often exploited.
A Trade Union serves the following purposes and functions accordingly :
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1. To secure fair and favourable treatment to employees,
2. To safeguard common labour interests,
3. To solve labour problems by negotiating with employers in a collective manner,
4. To ensure safety of workers,
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5. To enlarge opportunities for promotion and training,
6. To secure educational, cultural and recreational facilities.
7. To secure effective voice in decision making process on matters which affect the workers?
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In view of the purpose mentioned above trade unions perform the functions of protecting and promoting the interests of the workers by (a) collective bargaining to negotiate for wages, hours of work, bonuses, working conditions, terms and conditions of service etc., (b) mutual insurance or welfare work, (c) legal enactment and (d) direct action, which is their last tool and should be avoided as far as possible in the interest of nation.
Our government has also realised the need for Trade Unions and allows them to get themselves registered. There is an Act, known as The Trade Unions Act, 1926.
Under this Act any seven or more members of a trade union may apply for registration of the trade union. This Act gives protection to registered trade unions in certain cases against civil or criminal action.
Ten central trade unions organisations in the country are :
1. Indian National Trade Union Congress (INTUC)
2. All India Trade Union Congress (AITUC)
3. Hind Mazdoor Sabha (HMS)
4. United Trade Unions Congress (UTUC)
5. Centre of Indian Trade Unions (CITU)
6. Bhartiya Mazdoor Sangh (BMS)
7. United Trade Union Congress (UTUC)
8. National Front of Indian Trade Unions (NFITU)
9. Trade Union Co-ordination Centre (TUCC)
10. National Labour Organisation (NLO)
The total membership of these central trade union organizations as on December 31, 1980 (announced by the Government on August 30, 1984) was 1,23,86,699 (as claimed by 10,766 trade unions) and 61,26,816 of 6543 trade unions as verified by the Government.
The Trade Unions can be successful if they are run by educated persons, if they have adequate funds and if they are not dominated by one or the other political party.
It is also necessary that the leaders of the Trade Unions are honest. Otherwise, they can be bribed by the industrialists and the interests of the poor worker may suffer.