Page 171 - DCOM207_LABOUR_LAWS

Labour Laws

Notes “It’s going to be very, very difficult for employment in Germany. Three percent is simply
too much.” The agreement was of great significance to the German economy, the biggest
economy in Europe, as it set the agenda for other trade unions in Germany in terms of
collective bargaining.
In Germany, most negotiations for collective bargaining and other agreements are
negotiated between the trade unions and regional employer associations representing the
entire sector rather than with individual companies.
Earlier in January 2006, IG Metall had demanded a five percent increase in pay as it felt
that these companies were making huge profits. It said that the increase in pay would
help the members cope with the rising cost of living, increase their purchasing power, and
to withstand the increase in valued added tax from 16 percent to 19 percent, which the
German government proposed to implement in 2007.
The agreement would also influence inflation and price stability in the German economy,
and have repercussions on the wider European economy. Earlier, the European Central
Bank (ECB) president, Jean-Claude Trichet, warned German companies against allowing
any pay increase. He said that if the pay demand was met, the ECB would be forced to raise
interest rates to counter inflation.
Controversy is not new to IG Metall. Over the decades, the union has played an important
role in German labor relations and is considered by many as the pioneer in collective
bargaining in Germany. IG Metall has both blue and white collared workers as its members.
Though it is primarily a metalworkers’ union and represents the metal industry labor,
it has members from other industry sectors as well. Over the years, IG Metall has made
significant contributions to the evolution of industrial relations in Germany. But, it has also
been accused of irrational protection and harming the interests of workers and employees.
The achievements and accusations present a contrasting and interesting picture of a trade
union in a changing business environment.
Source: http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/
IG%20Metall-Trade%20Union%20in%20Crisis-Human%20Resource%20Management.htm

Self Assessment

State whether the following statements are true or false:
1. The legislation regulating these trade unions is the Indian Trade Unions Act, 1926.

2. The Act is applicable only to the union of workers.
3. The general funds of a registered trade union shall not be spent on any other objects than
those specified in the Act.

4. The Trade Unions Act 1926 has been amended from time to time and the most important
being 2000.

10.2 Authorities under Trade Union

The authorities of trade union are as follows:

10.2.1 All India Trade Union Congress (AITUC)

This National Federation was established in 1921. Ideologically it is linked with the communist
philosophy and therefore espouses a more radical approach, as compared to some of the other
federations, in attaining the workers’ interests and goals. The major objectives of AITUC are:

166 LOVELY PROFESSIONAL UNIVERSITY