6 SEM TDC DSE COM (CBCS) 602 (GR-II)
2024 (May)
COMMERCE (Discipline Specific Elective)
(For Honours and Non-Honours)
PAPER: DSE-602 (GR-II) (Trade Unionism)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions.
1. State whether the following statements are True or False: (1×5=5)
(a) Membership in general in different cover workers employed industries and crafts.
Answer: False
(b) White-collar unions and managerial trade unions are the same.
Answer: False
2. Write the full form of the following: (1×3=3)
(a) EFI
Answer: Employers' Federation of India
(b) INTUC
Answer: Indian National Trade Union Congress
(c) SCOPE
Answer: Standing Conference of Public Enterprises
3. Write short notes on any four of the following: (4×4=16)
(a) Objectives of Trade Union
Answer: Trade unions aim to protect and promote the interests of workers. Their primary objectives include:
i) Wage and Salary Protection: Ensuring fair wages and timely payments for workers.
ii) Working Conditions: Improving workplace safety, working hours, and overall conditions.
iii) Job Security: Advocating against unfair dismissals and securing stable employment.
iv) Social Security Benefits: Seeking benefits like pensions, medical facilities, and insurance for workers.
(b) Methods for Determining Union Membership
Answer: Union membership can be determined using various methods, which include:
i) Check-off System: Employers deduct union dues from employees' wages and transfer them to the union.
ii) Secret Ballot: Workers vote in a formal election to decide union representation.
iii) Membership Verification: Authorities verify membership by checking union registration records.
iv) Card Check Method: A union gains recognition if a majority of employees sign authorization cards.
(c) Union Rivalry
Answer: Union rivalry refers to conflicts between different trade unions competing for membership and influence. The key reasons for union rivalry include:
i) Multiple Unions in the Same Industry: The presence of multiple unions leads to competition for members.
ii) Political Influence: Different unions are often backed by different political ideologies, leading to clashes.
iii) Leadership Conflicts: Disputes among leaders over power and decision-making create divisions.
iv) Employer Manipulation: Some employers encourage union rivalry to weaken workers' bargaining power.
(d) Blue-Collar Union
Answer: A blue-collar union represents workers engaged in manual labor or industrial work. Characteristics of blue-collar unions include:
i) Membership Base: Includes factory workers, construction workers, mechanics, and other labor-intensive occupations.
ii) Focus on Working Conditions: These unions fight for better wages, job security, and improved working conditions.
iii) Collective Bargaining: Negotiations with employers regarding wages, working hours, and safety measures.
iv) Strike Actions: Blue-collar unions often organize strikes or protests to demand better rights and benefits.
(e) Conventions of ILO
Answer: The International Labour Organization (ILO) sets international labor standards through conventions. Important aspects of ILO conventions include:
i) Legally Binding Agreements: Countries ratifying ILO conventions must implement them in their national laws.
ii) Core Conventions: Include freedom of association, elimination of forced labor, and prohibition of child labor.
iii) Workplace Rights: Conventions address issues like minimum wages, working hours, and social security.
iv) Monitoring and Compliance: ILO ensures compliance through reports and investigations in member countries.
4. (a) What are craft unions? What are industrial unions? How are they different? Elaborate the strengths and weaknesses of craft unions. (3+3+8=14)
A craft union is a type of trade union that represents workers who have a specific skill or trade, regardless of the industry in which they work. These unions are formed by skilled workers like carpenters, electricians, plumbers, and machinists. The main focus of a craft union is to protect the wages, working conditions, and professional interests of workers belonging to a particular craft.
An industrial union, on the other hand, represents all workers in a specific industry, regardless of their particular skill level or job role. These unions include both skilled and unskilled workers within a single industry, such as automobile workers, textile workers, or miners. The primary goal of industrial unions is to ensure fair wages, job security, and good working conditions for all employees within the industry.
Differences Between Craft Unions and Industrial Unions:
i) Membership Base: Craft unions consist of workers from a particular trade, while industrial unions include workers from an entire industry.
ii) Skill Requirement: Craft unions focus on skilled workers, whereas industrial unions represent both skilled and unskilled workers.
iii) Bargaining Power: Craft unions have more control over specialized skills and can negotiate better wages, whereas industrial unions rely on mass representation for bargaining.
iv) Workplace Scope: A craft union member may work in different industries, but industrial unions are confined to a single industry.
v) Union Structure: Craft unions tend to have decentralized control, while industrial unions have a broader and more centralized structure.
Strengths of Craft Unions:
i) Higher Wages and Better Benefits: Since craft union members possess specialized skills, they have stronger bargaining power to negotiate better wages and benefits.
ii) Job Security: Skilled workers in craft unions are often in high demand, leading to greater job stability.
iii) Professional Development: Craft unions focus on training and skill enhancement, ensuring their members remain competitive in the job market.
iv) Exclusive Membership: The selectiveness of craft unions ensures that only skilled workers are represented, leading to better working conditions for their members.
Weaknesses of Craft Unions:
i) Limited Membership Base: Craft unions only represent specific skilled workers, making it difficult to gain widespread influence.
ii) Weaker Industry-Wide Bargaining: Since craft unions focus on a particular skill rather than an entire industry, they may not have as much bargaining power as industrial unions.
iii) Potential Employer Resistance: Employers may find it easier to replace craft union members with alternative workers, especially if there are non-unionized workers available.
iv) Conflicts with Industrial Unions: Craft unions may sometimes clash with industrial unions, as their goals and interests may differ.
Thus, craft unions play an important role in protecting skilled workers' rights and improving their working conditions. However, they face limitations in terms of membership size and industry-wide influence, making it necessary to balance their strengths with broader labor movements.
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4. (b) What do you understand by recognition of trade unions? Why is it relevant? What are the useful methods for verification of the membership unions? (4+3+7=14)
Recognition of trade unions refers to the formal acceptance of a trade union by an employer or government authority, allowing the union to represent workers in collective bargaining and negotiations. Recognition provides trade unions with legal standing and the ability to act on behalf of employees regarding wages, working conditions, job security, and benefits.
For a trade union to be recognized, it must fulfill certain criteria such as having a minimum number of members, adhering to legal regulations, and demonstrating its ability to represent workers effectively. Recognition can be voluntary, where employers accept the union without legal obligation, or statutory, where recognition is granted through labor laws and regulations.
Relevance of Recognition of Trade Unions:
i) Legitimacy in Collective Bargaining: Recognition enables trade unions to negotiate with employers on behalf of workers regarding wages, benefits, and working conditions.
ii) Protection of Workers' Rights: A recognized union can safeguard employees from exploitation, unfair treatment, and job insecurity.
iii) Industrial Harmony: Recognition helps in reducing conflicts between employers and workers, leading to better industrial relations.
iv) Legal Status: Recognized unions can take legal action if employers violate agreements or labor laws.
v) Improved Working Conditions: A recognized trade union can demand better safety measures, welfare schemes, and employee benefits.
Methods for Verification of Membership Unions:
To ensure that a trade union genuinely represents the majority of workers, different methods are used to verify its membership. The most commonly used verification methods include:
i) Check-off System: Under this method, union membership fees or dues are deducted directly from employees’ wages by the employer and transferred to the union. This provides an easy way to verify the number of active members.
ii) Secret Ballot Method: Workers vote in a secret ballot election to determine which trade union should be recognized as their representative. This method is considered democratic and transparent.
iii) Membership Verification through Records: Government authorities or labor departments verify union membership by checking official records, such as membership lists and subscription receipts.
iv) Card Check Method: In this method, workers sign authorization cards to indicate their support for a union. If a majority of employees sign the cards, the union is granted recognition.
v) Employer Recognition Agreements: Some employers voluntarily recognize trade unions based on past agreements, employee representation, and mutual understanding.
vi) Government Mediation: In some cases, labor departments or industrial tribunals intervene to verify union membership through independent verification.
vii) Surveys and Worker Interviews: Random surveys and interviews with workers may be conducted to determine whether the majority of employees support a particular trade union.
Recognition of trade unions plays a crucial role in protecting workers’ interests and ensuring their voices are heard in the workplace. Proper verification of union membership ensures that only genuine and representative unions receive recognition, leading to fair negotiations and industrial stability.
5. (a) What do you understand by white-collar trade unions? Discuss the features of white-collar unions. Do white-collar job holders need to form trade unions? Give reasons for your answer. (2+8+4=14)
A white-collar trade union is an organization that represents employees engaged in professional, administrative, or clerical work rather than manual labor. White-collar workers typically include engineers, doctors, teachers, bank employees, IT professionals, and government officials. Unlike blue-collar unions, which focus on industrial workers, white-collar unions aim to address issues related to job security, promotions, working conditions, and wages for professionals.
Features of White-Collar Unions:
i) Representation of Professional Employees: White-collar unions primarily consist of employees from offices, educational institutions, financial organizations, and government departments.
ii) Emphasis on Career Growth: These unions focus on promotions, professional development, and career advancement opportunities rather than just wage hikes.
iii) Non-Aggressive Bargaining Methods: Unlike blue-collar unions, white-collar unions prefer negotiations, legal actions, and policy discussions over strikes and protests.
iv) Protection Against Job Insecurity: With increasing privatization and automation, white-collar unions work to secure stable employment and protect employees from layoffs.
v) Focus on Ethical Work Environment: They emphasize professional ethics, workplace dignity, and employee rights in decision-making processes.
vi) Influence on Organizational Policies: White-collar unions play a role in shaping policies related to job roles, workplace behavior, and professional standards.
vii) Legal and Political Support: Many white-collar unions seek legal backing and political influence to address grievances effectively.
viii) Resistance from Employers: Unlike blue-collar unions, white-collar unions often face opposition from employers who argue that professionals should not require union representation.
Do White-Collar Job Holders Need to Form Trade Unions?
Yes, white-collar job holders need trade unions for several reasons:
i) Job Security and Stability: Many white-collar jobs are affected by economic downturns, automation, and outsourcing. Unions can help employees negotiate better job security policies.
ii) Protection from Unfair Treatment: White-collar employees may face issues such as workplace discrimination, delayed promotions, and wage disparities, which unions can address.
iii) Fair Wage Negotiations: Despite being professionals, many white-collar workers struggle with stagnant salaries and wage inequalities. Unions can help secure better pay structures.
iv) Work-Life Balance: Increased work pressure, long hours, and unrealistic deadlines impact employee well-being. White-collar unions can advocate for policies that promote work-life balance.
In conclusion, white-collar trade unions play a crucial role in addressing the concerns of professionals and ensuring fair treatment in the workplace. While they differ from traditional labor unions, their necessity in modern workplaces is undeniable.
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5. (b) What are managerial associations? What are the major causes of emergence of managerial associations in India? (8+6=14)
Managerial associations are organizations formed by managerial and executive-level employees to safeguard their professional interests and address workplace concerns. Unlike trade unions, which focus on labor rights, managerial associations represent employees in supervisory, administrative, and decision-making positions. These associations aim to improve working conditions, job security, salaries, and ethical workplace policies for managers.
Key Characteristics of Managerial Associations:
i) Representation of Executives and Supervisors: Members typically include middle and senior management professionals.
ii) Professional Development and Networking: These associations promote skill enhancement, leadership training, and career growth.
iii) Negotiation for Fair Compensation: They work towards better salary structures, incentives, and performance-based promotions.
iv) Legal and Policy Advocacy: Managerial associations influence government policies and labor laws that affect managerial employees.
v) Non-Adversarial Approach: Unlike labor unions, managerial associations rely on discussions, arbitration, and legal mechanisms rather than strikes and protests.
vi) Protection Against Unfair Practices: Managers often face excessive workload, corporate politics, and unethical business practices. These associations work to address such issues.
vii) Industry-Specific Associations: Many managerial associations are industry-specific, such as banking associations, IT management forums, and healthcare administration bodies.
viii) Global Collaboration: Some associations work with international organizations to promote global best practices in management.
Major Causes of the Emergence of Managerial Associations in India:
i) Increasing Job Complexity: As industries grew, managerial roles became more demanding, leading to the need for collective representation.
ii) Lack of Legal Protection: Unlike blue-collar workers, managers were not covered under labor laws, prompting them to form associations for legal backing.
iii) Workplace Stress and Overload: Managers face high stress due to long working hours, tight deadlines, and job pressures. Associations help advocate for better work-life balance.
iv) Disparity in Promotions and Salaries: Many managers struggle with wage stagnation and slow career growth, making it necessary to form associations to demand fair promotions.
v) Corporate Restructuring and Downsizing: Frequent layoffs, mergers, and corporate restructuring impact managerial employees, increasing the demand for collective representation.
vi) Ethical and Professional Standards: Managerial associations ensure ethical workplace policies and prevent corporate malpractices that can harm both managers and employees.
In conclusion, managerial associations have emerged in India due to the increasing complexities of executive roles and the need for workplace protections. These associations play a vital role in shaping corporate governance, ensuring fair compensation, and maintaining professional integrity in the management sector.
6. (a) Elaborate the historical background of employers’ associations in India. (14)
The history of employers’ associations in India dates back to the early 20th century when industrialization began to expand under British rule. These associations were formed to represent the interests of employers and business owners, primarily in response to the rise of labor unions and increasing government regulations on labor relations.
Pre-Independence Era (Before 1947):
i) Early Industrial Growth and Employer Concerns: With the growth of industries like textiles, jute, and railways, Indian business owners faced challenges such as labor strikes, wage disputes, and government-imposed labor laws. This led to the formation of employer organizations to protect their business interests.
ii) Formation of the Employers’ Federation of India (EFI) in 1920: The EFI was one of the first major employers' associations in India, established to provide a collective platform for business owners to address labor disputes and negotiate with trade unions.
iii) Support for British Economic Policies: Many employer associations during British rule worked in alignment with British industrial policies, often opposing the demands of Indian trade unions that sought better wages and working conditions.
iv) Response to Labor Movements: The rise of powerful trade unions such as the All India Trade Union Congress (AITUC) in 1920 led to increased pressure on employers. As a result, employer associations were strengthened to counteract labor union demands.
Post-Independence Era (After 1947):
i) Industrialization and Economic Planning: After independence, India adopted a mixed economy model, which led to the growth of both public and private enterprises. Employers' associations played a key role in shaping industrial policies and labor laws.
ii) Formation of the All India Organization of Employers (AIOE) in 1956: This association was established to provide a national-level representation of employers and to influence government policies on labor issues.
iii) Growth of Public Sector and Employer Associations: With the expansion of the public sector, employer associations began working closely with government agencies to establish fair industrial relations and policies.
iv) Liberalization and Globalization (1991 Onwards): The economic reforms of 1991, which opened up India to globalization and privatization, significantly impacted employers’ associations. These associations began focusing on issues such as foreign investment policies, competition laws, and labor law reforms to improve business growth.
v) Current Role in Labor Reforms: Employers’ associations today continue to work closely with the government to reform outdated labor laws, resolve industrial disputes, and create a favorable business environment.
The historical development of employers’ associations in India highlights their crucial role in shaping labor policies, maintaining industrial peace, and protecting business interests. Over time, these associations have evolved from being defensive organizations against trade unions to proactive participants in economic development.
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6. (b) Elucidate the functions of employers’ association in India. Write in brief about the structure of employers’ association in India. (6+8=14)
Functions of Employers’ Association in India:
i) Representation of Employers’ Interests: Employers’ associations act as representatives of businesses in discussions with the government, trade unions, and international organizations.
ii) Negotiation with Trade Unions: They help in collective bargaining with labor unions to settle wage disputes, working conditions, and other labor-related issues.
iii) Advising on Labor Laws and Policies: These associations provide legal guidance to employers regarding labor laws, employment regulations, and industrial relations.
iv) Industrial Dispute Resolution: Employers’ associations play a key role in resolving conflicts between employers and employees through mediation, arbitration, and negotiations.
v) Training and Development: Many associations organize training programs, workshops, and seminars to enhance business management and labor relations skills.
vi) Policy Advocacy and Economic Development: Employers’ associations lobby for economic policies that favor industrial growth, ease of doing business, and trade expansion.
Structure of Employers’ Association in India:
i) National-Level Associations: These operate at the national level and influence government policies. Major examples include:
Employers’ Federation of India (EFI) – One of the oldest employer bodies dealing with labor policies and industrial relations.
All India Organization of Employers (AIOE) – Works closely with the government and international organizations like the International Labour Organization (ILO).
ii) Industry-Specific Associations: These associations cater to specific industries such as textiles, banking, pharmaceuticals, and IT. Examples include:
Indian Banks’ Association (IBA) – Represents banks and financial institutions.
Confederation of Indian Textile Industry (CITI) – Works for the interests of textile manufacturers.
iii) Regional and State-Level Associations: These operate within states or regions to address local business and labor issues. Examples include:
Bombay Chamber of Commerce and Industry
Federation of Karnataka Chambers of Commerce and Industry (FKCCI)
iv) International Collaboration: Some employers’ associations collaborate with global organizations like the ILO, International Chamber of Commerce (ICC), and World Economic Forum (WEF) to align Indian business policies with international standards.
Employers’ associations in India play a crucial role in safeguarding business interests, negotiating with trade unions, and influencing industrial policies. Their structured approach ensures that businesses at all levels—national, industry-specific, and regional—can collectively address economic and labor-related challenges.
7. (a) Elaborate the organizational structure of ILO. (14)
The International Labour Organization (ILO) is a specialized agency of the United Nations (UN) that focuses on promoting social justice and setting international labor standards. Established in 1919 as part of the Treaty of Versailles, the ILO aims to improve working conditions, ensure fair wages, and protect workers' rights worldwide.
The organizational structure of the ILO is unique as it follows a tripartite system, where governments, employers, and workers have equal representation in decision-making. The ILO has three main organs:
1. The International Labour Conference (ILC)
i) Supreme Decision-Making Body: The ILC is the highest authority of the ILO and meets annually in Geneva.
ii) Representation: It follows a tripartite structure, meaning each member country sends four representatives—two from the government, one from employers, and one from workers.
iii) Functions: The ILC sets international labor standards, adopts conventions and recommendations, and discusses global labor issues.
iv) Committee System: Different committees are formed within the conference to focus on specific labor matters, such as wages, employment policies, and social security.
2. The Governing Body
i) Executive Body of the ILO: It is responsible for implementing the decisions of the ILC and meets three times a year.
ii) Composition: It consists of 56 members—28 government representatives, 14 employer representatives, and 14 worker representatives.
iii) Functions:
Formulates the ILO’s work plan and budget.
Appoints the Director-General.
Decides on policies related to labor rights, industrial relations, and social protection.
iv) Significance: The Governing Body plays a crucial role in shaping ILO policies and coordinating its activities worldwide.
3. The International Labour Office
i) Permanent Secretariat of the ILO: It serves as the administrative and operational branch of the organization.
ii) Headquarters: Located in Geneva, Switzerland.
iii) Functions:
Conducts research on labor issues.
Implements labor programs worldwide.
Provides technical assistance to member countries.
iv) Director-General: The office is headed by a Director-General, who is elected for a five-year term and is responsible for executing the ILO’s strategies.
Other Important Bodies within the ILO:
i) Regional Offices: The ILO has regional offices in different continents to address specific labor challenges faced by countries.
ii) Committees and Expert Groups: Various committees work on specialized areas like child labor, occupational safety, and gender equality.
iii) International Training Centre (ITC-ILO): Located in Turin, Italy, it provides training programs for labor officials, employers, and workers.
The ILO’s organizational structure ensures that governments, employers, and workers work together to create fair and inclusive labor policies. Its tripartite nature makes it unique among international organizations, allowing all stakeholders to have a voice in decision-making.
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7. (b) Elaborate the major activities of ILO. (14)
The International Labour Organization (ILO) is a specialized agency of the United Nations (UN) that focuses on labor rights, employment policies, and social justice. Since its establishment in 1919, the ILO has played a crucial role in improving working conditions and protecting workers’ rights globally.
The major activities of the ILO can be classified into the following key areas:
1. Setting International Labour Standards
i) Formulating Conventions and Recommendations: The ILO establishes labor standards through international conventions, which member countries can adopt into their national laws.
ii) Promoting Workers’ Rights: These standards cover areas such as minimum wages, working hours, occupational safety, and social security.
iii) Supervising Implementation: The ILO monitors compliance with these standards and takes action if a country fails to uphold workers’ rights.
2. Promoting Employment and Skill Development
i) Encouraging Full and Productive Employment: The ILO works with governments to create policies that generate decent work opportunities.
ii) Vocational Training and Skills Development: It provides training programs to help workers adapt to changing labor markets, especially in developing countries.
iii) Supporting Entrepreneurship: The ILO promotes small business development and self-employment to boost economic growth.
3. Protecting Workers’ Rights and Social Security
i) Ensuring Workplace Safety: The ILO establishes guidelines for occupational health and safety to reduce workplace accidents and hazards.
ii) Eradicating Forced and Child Labor: It runs campaigns and programs to eliminate child labor, bonded labor, and human trafficking.
iii) Promoting Gender Equality: The ILO advocates for equal pay, maternity benefits, and workplace rights for women.
iv) Expanding Social Security Systems: The ILO helps countries develop pension schemes, health insurance, and unemployment benefits for workers.
4. Conducting Research and Providing Technical Assistance
i) Labor Market Research: The ILO conducts studies on employment trends, wage structures, and industrial relations to provide data-driven solutions.
ii) Policy Guidance: It assists governments in formulating labor laws and policies to ensure fair treatment of workers.
iii) Technical Support Programs: The ILO provides expertise to countries for developing labor codes, improving workplace conditions, and implementing job creation programs.
5. Promoting Tripartite Cooperation
i) Encouraging Dialogue Between Governments, Employers, and Workers: The ILO promotes collaboration among labor unions, business organizations, and governments to resolve industrial disputes.
ii) Mediating Industrial Conflicts: It helps negotiate solutions to labor strikes, wage disputes, and employment-related conflicts.
iii) Supporting Collective Bargaining: The ILO strengthens trade unions and employer associations to improve industrial relations.
6. Running Global Campaigns and Programs
i) Decent Work Agenda: This program focuses on job creation, rights at work, social protection, and social dialogue.
ii) Elimination of Child Labor Program: The ILO’s International Programme on the Elimination of Child Labour (IPEC) works to end child labor worldwide.
iii) Green Jobs Initiative: The ILO promotes environmentally sustainable jobs to address climate change and unemployment simultaneously.
iv) Fair Migration Programs: It develops policies to protect migrant workers from exploitation and ensure fair treatment in foreign countries.
7. Supporting International Development Goals
i) Alignment with the UN’s Sustainable Development Goals (SDGs): The ILO contributes to SDG 8 (Decent Work and Economic Growth) and SDG 5 (Gender Equality).
ii) Collaboration with International Organizations: It works with agencies like the World Bank, IMF, and WHO to improve global labor standards.
The ILO’s activities play a crucial role in shaping global labor policies, ensuring fair working conditions, and promoting employment opportunities. Through its research, policy guidance, and standard-setting mechanisms, the ILO continues to protect workers’ rights and create sustainable job markets worldwide.
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