Page 249 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes 11.7 Measures to Strengthen Trade Unions

The following are some of the measures to minimise trade union problems and to strengthen the
Trade Union Movement of India:
1. United Labour Front: Unions must present a joint front. Splinter groups/multiple unions
dissipate their energies, dilute their power and reduce their effectiveness. Trade unions
should form a sort of labour party and all the trade unions in the country should be affi liated
to it. It gives adequate strength to the trade unions both in industry and Parliament.

2. Effi cient Leadership: Outside political leadership has developed due to the absence of
internal leadership. Outside leadership is the main cause for the multiple problems of the
trade unions. These problems can be eradicated through the development of leadership
talents from within. Management should encourage internal workers to lead their own
movement. Management and trade unions should provide educational and training
facilities for the development of internal leadership.
3. Membership Fees: The membership fees should be raised as the amount of wages of the

workers increased significantly, compared to the situation in 1926 when Trade Union Act
provided for the collection of 25 paise per month per member as subscription fee. Even the
amended ` 1/- is not suffi cient. Some other source of fi nance may also explored to make
trade union fi nancially healthy.
4. Other Measures
(a) Trade unions should extend welfare measures to the members and actively pursue
social responsibilities. Social-responsibility of Trade Unions should go beyond their
limited constituency within members only.
(b) The Trade Union Act, 1956 should be amended and the number of members required
to form a trade union should be increased from 7 to 50% of the employees of an
organisation. Similarly, the scope for the outside leadership should be reduced from
50% to about 10%. The membership subscription should be enhanced from 25 paise
to 1% of the monthly wage of the worker.
(c) Trade Unions should make efforts to raise their declining membership. This is a
worldwide phenomenon:
(i) Japan 50% (1950) - 25% (in 1991)

(ii) U.S.A. 30% (1959) - 16% (in 1989)
(iii) India - 2% (in 1989)
(iv) Trade Unions must broaden their base membership-unorganised sectors,
which constitute about 92% of the workforce and IT sectors/BPO-Call
Centres - from where most of the employment is coming
(v) Attracting and retaining new breed of workers by monitoring them.
(d) Trade Unions must reorient themselves:

(i) From political/ideology obsession to Business Union-Partners in progress,
sharing the gains
(ii) Protesting organisation to Partnering organisation

(iii) Bureaucratic organisation to democratic and service organisation
(iv) Complacency to struggle
(v) Power-hunger to service orientation

244 LOVELY PROFESSIONAL UNIVERSITY