The Roles And Functions Of Trade Unions

Published Date: 02 Nov 2017

"With all their faults, trade unions have done more for humanity than any other organization of men that ever existed. They have done more for decency, for honesty, for education, for the betterment of the race, for the developing of character in man, than any other association of men." — Clarence Darrow (The Railroad Trainman, Nov. 1909).

This popular quote may apply to all type of trade unions as many Trade unions have proved to be very effective in different countries even though these institutions have lost their importance and have decrease in number. Indeed, Catherine Rampell (2009), an economics reporter for the New York Times, has noted a downward trend of trade unions from 1960 to 2007, in the United States and in many of other peer countries such as Ireland. Also, this analysis shows that not all the countries are experiencing the same trend of descent. This can obviously be explained with the fact that there are different types of trade unions that exist in the world and each bear different functions and features in line with the countries, the cultures and the environment around them. Literatures principally outline the differences of trade unions for three main continents namely Asia, Europe and the US:

Trade unionism in Asia

Cultural factors are sometimes used to explain why trade unions are generally weak in Asia as compared to Europe for example. Asian trade unions are often organizationally decentralized and constituted on a company level. Furthermore, in some Asian countries like Taiwan or Korea, trade unions have played an important role as a political actor in relation to the processes of democratization. In these countries trade unions have gained influence and although trade union density has decreased for some years trade unions are getting stronger.

Trade unionism in Europe

The fundamental organisational principle in European trade unionism is that workers are organised either in relation to the sector they work in, or in relation to their skill or education. Class based structuring dominate the organisational forms of trade unions in Europe. Generally the forming of trade unions in Europe has been very much related to the formation of European class society in the end of the 19th century and the beginning of the 20th century. This has meant that trade unions in Europe very often have been related to broader concepts of policy making in the interests of workers in a general sense. Trade unions have not only fought for better pay and working condition in a narrow sense, but have also worked for establishing broader political, civil and social rights in the European societies, e.g. in relation to development of a welfare state. The decrease in trade union density in some European countries is partly related to and a consequence of the fact that European trade unions are formed on the basis of the class-structure in the industrial society.

Trade unionism in US

US trade unions are, although it is not class based in the same way as the European trade unions, very much based on traditional industrial society. It is however very weak in relation to post-industrial workforce and the structural changes in the labour force explain most of the decline in the trade union density the last twenty years. Trade unionism in the US can be characterised as market based trade-unionism. This means that trade unions are mostly oriented toward securing the interest of their members more than developing a broad welfare state attitude toward demands. All in all it is possible to characterise the U.S. system of industrial relations as a system still more oriented toward the exclusion of the labour representatives and maybe integration of the single employee instead. Generally it is possible to identify a growing employer opposition toward trade unions and organised labour.

2.2 Types of Trade Union

General Unions

General unions generally represent labourers from all industries and professions irrespective of what sector of the workforce they form part. In other words, these unions stand for skilled and unskilled workers preforming different jobs in different industries (cleaners, clerical staff, and transport workers etc.). They are usually the largest and most powerful unions.

Craft Union

These are fairly small unions for skilled workers, performing the same or similar work in different industries such as motor mechanics, plumbing or electrical work. Their power is based upon the scarcity of highly skilled labour.

Membership of craft union is usually restricted to those who have completed the recognized qualification for the craft or skill in question, normally an apprenticeship. Being a closed union, craft union may be relatively small.

Industrial Union

Industrial unionism is a type of labour organization. It is one which, for organizational purposes, includes all workers in a particular industry (egg, steel, automobile, and textile) regardless of whether they are skilled or unskilled. The union's bargaining power is based upon the number of members.

Industrial unions also depend on changes in the economy. Some industrial unions in areas such as sugar, oil and dock work has suffered significantly as a result of technological changes.

As industrial unions recruit members within one industry only and which aspires to recruit all grades of workers in that industry, both manual and non-manual. It can therefore be considered as a form of vertical unionism.

White Collar Union

It is a union that embodies principally white-collar workers; a non-manual workers' union which executes similar tasks in different industries (e.g. teachers, scientists). They stand for professionals who work from an office such as those who occupy a managerial or administrative chair.

Horizontal Union

Unions that recruit workers in similar occupational categories in whatever industrial sector they appear are called horizontal unions; they may be distinguished from industrial or vertical unions. 

Occupational Union

It organizes workers in a specific occupation or group of occupations which are closed to others. Most are in the white-collar area covering groups such as clerical and secretarial staff, local government officers etc. The term may also relate to manual craft unions.

Open Union

It is a union with few restrictions as to which sorts of workers may join. The big general unions are of this character, especially those unions that started off as manual unions and then developed a section for white-collar workers. In the 1980s, several formerly closed unions have opened themselves up to new categories of membership in an effort to recruit new members.

Student Union of the University of Mauritius

The Students Union was established in 1971, and is run by and for the students. It works in the interest of students and regularly organizes various activities. All students are members, the membership fee being included in the registration. Students are very dynamic in organizing extra-curricular activities supported by the Public Relations Office.

2.3 The roles and functions of trade unions:

Trade unions are distinctive organisations whose role can be variously interpreted and understood by different interest groups in the society. Literatures have highlighted various roles and functions of trade unions over the past years. Historically the role of trade unions was to protect jobs and real earnings, secure better conditions of work and life and fight against exploitation and discrimination to ensure fairness and equity in employment contexts. Indeed, D’Art and Turner (2008) have described the role of trade unions as providing significant services at both national and enterprise level. Furthermore, the role of trade unions can be interpreted as not only emphasizing the human aspect of the labour commodity, but in providing a stimulus on a political level and even increases the life satisfaction of citizens, particularly the well-being of citizens with lower incomes (Flavin, Pacek, and Radcliff (2010).

In fast-moving societies, the role and responsibilities have changed and become more significant. Undeniably, there have been changes in the political, social and educational environments regarding awareness of rights, such as the right to organise, the right to bargain, and the right to settle terms and conditions of employment. These have caused worker unions to emerge and to protect further workers' interests. Thus, with the establishment of minimum wages, norms for mandatory work hours, provisions for health and safety, and overall improvements in working conditions, unionisation has become instrumental in improving the quality of life of workers (Ghosh & Geetika, 2007). Although there is a considerable debate on the changing roles of trade unions, the predominant concerns have remain the same over years; namely the protective role. Ghosh, Nandan and Gupta (2010) have summarized the primary functions of trade unions as follows:

To improve working and living conditions and to represent workers' interests in various fore (Freeman & Medoff, 1984).

To offer responsive cooperation in improving levels of production and productivity, discipline, and high standards of quality.

To secure fair wages for workers.

To enlarge opportunities for promotion and training.

To promote identity of workers' interests with their industries.

To cooperate in and facilitate technological advancement by broadening workers' understanding of underlying issues.

An additional important role of trade unions that have been recognized by the European Union is their importance in preventing and combating sexual harassment: Trade unions also have an opportunity to encourage employers to adopt "adequate policies and procedures to protect the dignity of women and men at work in the organization." (EU Code of Practice on Measures to Combat Sexual Harassment included in Commission Recommendation of 27 November 1991).

Another broad classification of the functions of unions may be as follows:

Militant Function

When the union fails to accomplish their aims through collective bargaining and negotiation, in extreme conditions they adopt drastic measures in the form of go-slow, strike, boycott, work sabotage etc. to make the management react and reconsider their requests. Therefore, these functions of the trade unions are known as militant or fighting functions.

Fraternal Function

Another actions performed by trade unions are to provide help to its members in needy times, and increasing their efficiency. Trade unions attempt at nurturing a spirit of cooperation, mutual aid and promote friendly relationships and sharing of knowledge and culture among their colleagues through fraternal functions. This obviously depends on the obtainability of capitals, which the unions collect through subscription from affiliates and donations from outsiders, and also on their skilled and enlightened governance. Another grouping of the functions of unions is:

Intra-mural activities.

These involve those unions’ functions that lead to the improvement of work conditions such as ensuring suitable wages and salaries, etc. through collective bargaining, negotiations, strikes, etc.

Extra-mural activities.

These activities help the employees to preserve and improve their efficiency or productivity, e.g., promote friendly relations, and diffuse education among members and various other types of welfare measures. Such actions include the provisions of sanitary houses, library and reading rooms, entertainment etc. Trade unions supply resources for the education of workers and their children as well as medical facilities. These functions are also known as 'Fraternal functions' and rest much upon the availability of funds. 

Political activities.

In this world of democracy, trade unions play a very important role in the politics of the country. They send their-representatives to the legislative assembly and the parliament through general election so that they may safeguard their own interest in assemblies and parliament by getting the law passed in the interest of the working community (Broughton). Contemporary trade unions also take up political activities to achieve their goals. Such activities may be associated to the creation of a political party or those attempting to seek influence on public policy concerning matters connected with the interests of the working class.

Other Functions

Trade unions have a number of functions, one more important than the other depending on the situations; however the five main general principles developed have been:

The service function - This involves the delivery of services and assistance to the union members.

The representative function - This implies that the trade union will act like a delegate for the members at the workplace.

The regulatory function - This enables trade unions to actively participate in rule-making over the workplace. This can be done either:

directly – multi-employer collective bargaining e.g. through the Joint Industrial Council

indirectly – through regulatory legislation

The government function and public administration function - ttrade unions engage with the government to assure that they can accomplish their respective function within the law.

2.4 Reasons for trade unionism

Trade Unions play an important role in the industrial peace; they are needed for different purposes such as effective communication between employees and employers as they are the mediator between them. They also ensure that the divergence of opinions is taken into consideration and does not result into conflicts. They also participate in safeguarding the interests of all their members. They act as the protector, the counselor, the mediator, the coach, and keep an eye on the environment in which their members evolve.

Reasons why Trade Union are useful:

Trade unions help at ameliorating the pace of economic growth in many ways such as:

in recruiting and selecting workers

instructing discipline among the workforce

trying to accustom the organisation culture of the organisation to the new employee

settling industrial clashes in a rational manner

helping in social adjustments: new working conditions, abiding to new rules and policies

Trade unions form part of society and relate to the national integration:

Encouraging and preserving national integration through the minimization of industrial conflicts.

Incorporating a sense of corporate social responsibility (CSR) in workers

Attaining industrial peace

To ensure job security and right pay for the members:

One of the main reasons why an employee joins a union is essentially for job security

Higher wage and salary - Trade unions were born out of the desire by low-paid workers to get a better deal from their employers. Research studies have shown that trade unions were able to raise pay and constrain employment growth in the early 1980s. Smaller groups of employees also benefited from the union’s bargaining activity even though they were not included in their arrangements. However, according to a research done by N. Millward, J.Forth and A. Bryson; ‘there is no significant difference in pay arising from union bargaining with employers in the private sector.’

To express the complaints of employees to the managerial level:

Though some employees might object the employers’ decision, they do not voice out because of the fear of getting sacked

Employees do not like to be subjected to arbitrary and impulsive actions by management.

When difficult situation happens, employees may notice that they have little or no influence in job-related matters, thus becoming prime targets for unionization

Facilitate the flow of communication between employers and employees

Enhance the employer and employee relations

Facilitate decisions making through the process of collective bargaining and negotiations

2.5 Trade Unions and External Factors

2.5.1 Foreign Workers (Migrants)

Mauritians have been travelling to England since the sixties because we were a British colony. After that, the workers have started moving to Ireland, France and Italy etc. From the beginning of the new millennium, the movement was towards Australia, New Zealand and now mostly to Canada. More than one hundred thousand Mauritians are working as in different sectors.

Meanwhile, in the last decade, people started coming to work in the textile, construction or food processing industries of our country. According to statistics, there are around 35,000 migrant workers in Mauritius coming from Sri Lanka, Pakistan, India and China.

These foreign workers should be legally treated in the same way as locals as they have the same rights as local workers from trade unions’ perspective. However, this is not the case. In an article of Le Defi Media Group, it has been pointed out that ‘ despite local trade unions and NGOs, such as the local branch of Amnesty International denouncing workers and living conditions of foreign workers in the local press, nothing is done. Even street protests of these workers followed by arbitrary deportations-do not have any effect.’ Thus, through this case, it can be deduced that trade unions do not really cater for foreign workers in Mauritius.

2.5.2 Young People

For many unions, organizing young workers (between 18-35 years) and fostering young leadership has been seen as essential to increasing union membership and power. As baby boomers retire from the leadership of unions and from the ranks of union members, young leaders, activists and members are needed to carry out the work of the labor movement. However, younger union members are more likely to experience union give-backs and two tier systems at the same time as older union members unsuccessfully try to get their younger peers to appreciate the union struggles of the past.

However, youth is not a standardized group and some unions are coming up with new programmed strategies have been adapted to the needs of young women and men at different stages of work and union membership and involvement. These include youth conferences, reaching out to young people to attend leadership trainings and encouraging them to run for leadership positions.

2.5.3 Globalization - a new era for trade unions

Globalization has brought much change to the importance and functions of trade unions of different countries; for example at some point in time when America was at a said ‘golden age’, people from different part of the world migrates to get better jobs there. Thus, unions in America had to become more internationally-oriented and had to provide greater protection for American labor as well as the foreign labor that was being exploited. Furthermore, according to Stuart Hodkison (2005) trade unions have been forced to think and act outside the confines of the nation-state in response to a ‘New Labour Internationalism’ (NLI) that is emerging across the global economy. This status quo has originated the conception of several international unions such as the World Federation of Trade Unions (WFTU). The WFTU has been set up in 1945 and its main mission was to bring together trade unions across the world in a single international organization.

2.5.4 Women’s Role in Trade Unions

For sure women have played a critical role in sustaining and allowing Mauritius to export successfully in the preceding 20 years. Most employees in the Export Processing Zone (EPZ) are female workers (81 per cent in 1983 and 71 per cent in 2000). This dependence on women workers in the EPZ is unquestionably based partly on:

the sex stereotyping and

The lower pay levels in the EPZ in contrast to other sectors of the economy, and the disposition readiness of women to receive lower pay than men.

Labour force involvement rates over the past two decades were due to factors like increasing female education levels and decreasing fertility. It is likely that the demand for general women workers has augmented and this demand has probably changed women’s ambitions and therefore, permanently increased female labour force.

However, a paradox prevails: with the increase in number of working women should lead to a rise in membership in trade unions. Yet, this has not happened due to the concentration of women in part-time work and in the service sector. The lower rate of trade union membership by women is not due to women being less motivated to join a trade union, but to the fact that they are compacted in sectors where the rates of trade union membership are low anyway. The under-representation of women in trade union decision-making bodies is due to the following factors:

the existence of prejudice, conveyed by hostile reactions, attempts at dissuasion against taking on trade union responsibilities,

The rigidity of some rules of procedure,

Women’s lack of confidence in their own abilities,

The unequal division of family responsibilities

The male-dominated nature of the "trade union culture"