What is a Union

Union in business usually refers to Trade Unions. It is a combination of either temporary or permanent union formed mainly for the purpose of amending the relations between employer and employee. It can also be between employer and employer as well. These unions are designed to safeguard and encourage the welfares of its members. The main function of trade unions is to guard the workers from biased labor practices.

The objectives of trade unions are as follows:

  • It should epitomize all the members of its union in any of situation.
  • It should convey terms and conditions of employer with its members so that a fair labor policy is maintained.
  • It should be able to fight for its laborers at the time when decisions take by the employers seems to affect them.

The objectives also include certain member services like:

  • It has to look into the education and training needs of its laborers as per the company’s requirements.
  • The union must assist them in legal proceedings if some thing goes wrong.
  • The union must provide certain welfare benefits like medical facilities, casual leave benefits, and education allowance for their children etc.

The existences of Trade Unions have gained importance because an individual person has very little influence in his saying towards the company. He or she requires certain amount of security towards the job by joining others in union so that their voice is heard towards grievances. A trade union also helps in instilling certain amount of discipline in its worker’s. it also helps them in settling disputes amicably without any damage to company and laborers.

The laborers wish to join Trade unions for the following reasons:

  • The workers gets security towards job and self
  • They get the required training, thereby enhancing knowledge.
  • Discrimination towards wages and pay is kept to the minimal.
  • Sound relationship with its employer’s

Trade unions also have a authoritative defense called “strike” in getting their demands fulfilled. This generally happens when an employer does not agree to their demands. The members of the trade union resort to temporary abandoning of job. This puts on pressure on the company to invite them for talks on the issues related to strike and seek to harmoniously settle things without prolonging for too long. The trade union may resort to this type of strike for many reasons. Like not satisfied with the company policy and procedures, incentives not being given as per rules, retrenchment of few workers, decrease in the number of paid leave, bonuses not given on festival days and pending bonuses etc.

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