Trade unions or labour unions are governed by different laws in different countries, and they must follow the procedure and mode of registration for the establishment of a trade union that is by the country’s laws. Trade unions created in line with their country’s laws are entitled to the benefits provided by the law of trade unions. With the trade union’s advantages or rights, it must fulfil specific obligations to workers. A trade union’s primary goal is to engage in collective bargaining. In India, trade unions can only be formed by those who are involved in trade or business.

According to trade union law, every registered trade union is required to perform certain functions to attain particular goals, which are detailed below. The basic goal of a trade union is to protect the interests of workers from exploitation by management or the employer. Furthermore, it is every trade union’s function and duty to assist management in their operations and to contribute to the organisation or firm by favourably encouraging workers to improve the organization’s overall efficiency.

Formative Stages of Trade Unions

In the early years, trade unions must face a challenging and unfriendly environment. The bosses intended to crush them with iron fists. Then there was a time of anger and acceptance. As the union grew in strength, it began to oppose the employer. This was a moment of difficulty that lasted a long time. Employers were compelled to accommodate, tolerate, and accept them with reservations. After that, there was a period of mutual understanding and cooperation in collective bargaining. This was followed by the fraternal stage, during which the union matured and employers began to consult them. The “Fusion Stage,” in which combined efforts were necessary for union-management cooperation and partnership, is the desired state.

Definition of Trade Unions

A trade union is an organisation made up of employees, employers, or self-employed people. It’s a group of workers who have stayed together for a long time. It is not a transitory or ad hoc group of employees. It was founded to provide members with specific economic (higher salaries, better working and living conditions) and social (educational, recreational, medical, and individual respect) benefits. Members can use collective strength as a form of insurance policy against employers’ unreasonable, arbitrary, and illegal activities. Members can express their emotions, exchange notes, and battle the boss efficiently when he deviates from the path.

“An organisation of employees acting collectively who aim to defend and promote their mutual interests through collective bargaining,” according to a more contemporary and non-legislative definition of a union (De Cenzo & Robbins, 1993). Trade unions are classified into 3 types.

• Classical: The basic goal of a trade union is to protect the interests of its members collectively in a given socioeconomic-political system. Trade unions are reflections of the working class’s demands, goals, and desires.
• Neo-classical: It goes beyond classical goals and attempts to improve broader issues such as tax relief, saving rates, and so on.
• Revolutionary: The term “revolutionary” refers to a systemic shift. Establishing the authority of the working class, even if it means using violence and force.

The Industrial Trade Union Act of 1926 mandates that labour unions endeavour to safeguard and advance the interests of workers and their working circumstances.

According to the National Commission on Labour, Trade Unions works are:

• To protect employees’ rights to fair salaries.
• To ensure tenure security while also improving working conditions.
• To increase training and promotion opportunities
• Offer educational, cultural, and recreational opportunities
• To provide prompt assistance in enhancing production, discipline, and quality.
• To promote collective and industrial wellbeing.
• To aid in the integration of the country.
• To inculcate in members a feeling of community and industrial responsibility.

Trade Unions Have Two Goals: 

Economic Goals 

The Main Objectives of Economic Goals are:

• To ensure that workers got payment fairly.
• To ensure that better and greater fringe benefits are available.
• To ensure that employees’ jobs are secure.
• To ensure that better working conditions are available
• To increase productivity
• To provide personnel with opportunities for growth and development.
• To look for prospects for advancement, training, and other similar things.

Non-Economic Goals

The Main Objectives of Non-Economic Goals are:

• To have an impact on the community’s socioeconomic policies by participating in their formulation at various levels as a citizen.
• To ensure the contribution to the development of the community.
• To boost workers’ political power
• To provide social assistance
• To encourage national integration, and so on.

As a result, trade unions aspire to not only protect and promote their members’ economic, social, and political interests but also to contribute to the welfare of the community.