Role of trade Unions - Are trade Unions essential for a large company in order to improve productivity? - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Nagarkar Vinayak L
Hr-consultant

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Are trade Unions essential for a large company in order to improve productivity? Most trade unions in India have remained to be a demanding and protesting organization. To this, more trouble is added by the attitudes of the management towards them.
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Dear friend,
Your comment following the question highlights the part of some negative aspects of trade unions as well as the attitude of certain employers towards trade union in general.
I think your description "large company" actually refers to the large no of employees on the rolls of the company for carrying out its business operations in an effective manner so as to keep the wheels moving on unabatedly.
The larger the no of employees, the more are the problems. Effective handling and timely resolution of the human resources problems on the shop floor and outside require special attention by means of collective bargaining through the selected representatives from both the labor and management. The smaller the bargaining team, more effective would be the discussions and quicker would be decision making process. This effective representation from the side of large no of employees is facilitated by the presence of trade unions in the industrial establishment as the union office bearers have the clear mandate from the large no of its members about the possible decision to be taken on behalf of the entire labor force. A trade union is not a mere association of workmen but a parallel institution concerned with the sustainability of the industry and protection of the employment rights of the workers in the long run. When Samuel Gompers, the former President of the AAFL, was asked for what the trade union stands, he succinctly replied as "For more". The main objective of every trade union is to get more and more benefits for its members from their employers. It cannot be certainly decried as " demanding ". When an employer is reluctant to share the profits of the joint venture made by both the labor and the management, it is quite natural for the unions to demand more.
Productivity is the resultant effect of various factors. One of the important factors is the job satisfaction of the working class as a whole. Contentment of the employees in any given organization has two facets - one is material and the other is psychological. Acting together, both the employer and the union inculcate the sense of belongingness in the minds of the workmen. When the sense of belongingness is strong, the demands raised by the trade unions would be genuine and meaningful only.
Dear colleague,
The choice to have TU in any organization is not left to the employer. It is employees' take.
But if the employer creates fair and non- discriminatory wage policies, resolves grievances promptly and
complies with minimum
conditions of employment laws, there is good chance that he will keep away Union entering the establishment.
Barring a few exceptions, TU s do not act as responsible partners in the progress of the organisation and become heavily skewed in favour of protecting rights of labour only at the cost of organization's survival.
But it is also true that they have succeeded in many cases getting at least minimum wages and benefits or even better service conditions from truent employers.
Regards,
Vinayak Nagarkar
HR- Consultant.
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