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Human Resources Management - Trade Union

Union Free Companies - Trade Union

   Posted On :  14.06.2018 01:07 am

These are companies, which are non-unionized. Employees of such plants realize the negative consequences of unionization and prefer

Union Free Companies

These are companies, which are non-unionized. Employees of such plants realize the negative consequences of unionization and prefer to stay away from unions. They may have misgivings about how effectively a union can improve unsatisfactory working conditions. Collective bargaining is not always successful. If union is not strong, it will be unable to make an employer meet its demand. Even if an employer does respond to union demands, the workers may be affected adversely. The employer may not be able to survive when the demands of the union are met, and thus the company may close down, costing the employees their jobs. The organization may force the union to strike, inflicting economic hardship on employees who may not be able to afford being out of work, or it may in some cases, attempt reprisals against pro union employees. Employees may strongly identify themselves with the organization and view unionization as an attempt to weaken the company. They may object to the concept of seniority or even the political activities of the unions. Individuals feel that their value to the organization should be judged on an individual basis and that everyone should not be treated equally. If their performance is superior, the rewards should be appropriate and direct. These individuals feel that joining unions would limit their opportunities for advancement.

Employers also may discourage unionization. Their fears about unions stem from:

1. Increased cost because of higher remuneration and other non-monetary benefits and services,

2. Loss of control over operations – erosion of management’s authority,

3. Loss of freedom to reward superior performance, and

4. Lack of ability to adapt quickly to changing demands.

Strategies and Tactics for Remaining Union-Free


Managers develop long-term strategies and effective tactics to prevent unionization of their organizations. The more important of them are

1. Effective supervision

2. Open communication

3. Effective personnel research

4. Healthy and safe working environment

5. Effective employer-employee relations

6. Effective remuneration

7. Effective training and development programmes

8. Effective personnel planning, recruitment and selection

Trade Union Act, 1926


Trade unions in our country are governed by the Trade unions Act, 1926. The main objective of the Act is to provide for the registration of trade unions and to give registered trade unions a legal status, and immunity to their office-bearers and members from civil and criminal liability in respect of the legitimate trade union activities.

Provision of the Act


In pursuit of the primary objective, the act contains 33 sections. The provisions can be broadly divided into 8 sections, namely

1. Definition (s.2)

2. Registration of unions (s.3 to 12)

3. Duties and liabilities of registered unions (s.13 to s. 16)

4. Rights and liabilities of registered unions (s.17 to 21)

5. Amalgamation and dissolution of unions (s.24 to 27)

6. Submission of returns (s.28)

7. Penalties and fines (s.31 to 33)

8. Power to make regulations (s.29 to 30)

The act is a central legislation, but is administered by the state governments. Not that the central government has no role to play. It handles all unions, which are not confined to one state. It also has the power to amend the act.
Tags : Human Resources Management - Trade Union
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