Trade unionism and change - I

Trade unionism is an organised movement meant to protect and promote the interests of the working class. Trade unions are a potent force in most industrially developed as well as developing countries. Their role and character has been continuously changing. From illegal associations these became legalised and recognised institutions and have grown tremendously in size and number.
Trade unions have served as effective agencies for promoting workers' welfare and industrial democracy. Now their sphere of interest an influence is not confined to the industrial organisations but extends to socio-cultural and politico-economic development of the country.
The existence of trade unions is vital in all the existing socio-economic systems viz. capitalist, socialist and mixed. However, more often than not the trade union movement is poised in an adversarial relationship with the employer, whether it is the capitalist entrepreneur or the government. A perpetual mistrust exists between the working class organisations and the employers. Consequently the unions have generally failed to be accepted as an integral part of the formal organisation.
Trade unions are an important constituent of the industrial relations system of any society and it is only natural that they are studied from all possible angles to evaluate their role. As organised interest groups the aspirations, ideologies, structure and strength of unions determine the inter-relationship of workers with the management and influence the ultimate success of the enterprise and the economy. Consequently, trade unionism has been widely researched and the literature on the subject, produced in Pakistan, can be classified into four broad categories:
(a) Macro-level historical studies on trade unionism.
(b) Studies on trade union growth, structure and activities at industry, area or enterprise level.
(c) Behavioural studies concerning workers' motivations and their involvement in trade unions.
(d) Studies on union leadership pattern and behaviour.
Each of the above areas of research is important and contributes to the proper understanding of the working class movement. The studies highlight certain features and trends that can be projected into the near future or can even be influenced by policy changes on part of the actors involved in industrial relations. An attempt has been made to review important studies in each of the above areas.
The area of behavioural studies in trade unionism has not received adequate and serious attention of the researchers in Pakistan. The earliest behavioural studies were made in the industrialised West and have now come to be followed up in Pakistan as well. Needless to say, it is important to say why the trade union members and leaders behave in a particular manner. This is essential to understand the fundamentals of trade unionism.
One area where negligible amount of research has been made in Pakistan pertains to the factors determining the satisfaction of trade union members with union performance. Collective bargaining gains on bread and butter issues (better wages, fringe benefits, and job security for members) are no doubt of great consequence, but union leaders tend to underestimate the significance of internal communication and union democracy as membership priorities. Fiorito et al. (1988) and Jarley, Kuruvilla and Casteel (1990) have stressed the importance of employee's perception of member-union relations as a determinant of satisfaction with union representation. Further, the improvements in union-member relations may also have a positive impact on union commitment.
Another important subject of study in trade unionism has been the union leadership. The success of any union, the direction and momentum of its efforts and the involvement of the members in union activities depend inter alia on the quality of union leadership. The leadership researches in Pakistan have tried to study the socio-economic background of union leaders, their political affiliations, their perceptions, motivations, beliefs, attitudes and opinions about different issues and the role of outside leaders, etc.
Trade unions have been viewed by thinkers in different perspectives but there is an agreement on the basic fact that it is an organisation of workers or employees which is meant to promote their economic well-being. Of all the definitions of a trade union, the classic definition by Webbs is the most popular, though it does not cover all the aspects of trade union activities in modern times. Webbs defined it as "a continuous association of wage-earners for the purpose of maintaining or improving the conditions of other working lives." The rationale of trade unionism lies in the inability of an individual to agitate for better wages and good working conditions. Traditionally, trade unions have been depicted as working class collectivities. However, their scope has been extended in some societies in the light of socio-economic conditions. For instance, in Britain, the Trade Union Congress recognises the associations of professional people such as Artists' Federation, Musicians' Union, etc as well as organisations of white-collar employees as trade unions. In Pakistan under the Industrial Relations Ordinance 1969, considers even employers' associations as trade unions.
Trade unionism is a universal phenomenon which has proved to be effective in capitalist as well socialist societies and would continue to be a potent social force. Role of a trade union is not restricted to economic betterment of the workers but it serves as an inevitable intermediary or mechanism for settling relations between employers and employees. It has also become a medium for promoting industrial democracy, solving the problems of workers and advancing the social security and welfare of its members. Thus the trade unions have enhanced the power, prestige and security of the workforce. Trade unionism as a concept and as a sentiment has transcended the working class and the labour movement. It has opened new vistas, new avenues and has achieved a world-wide recognition for the methods of struggle.
Trade unionism is different parts of the world has been influenced by social, economic and the political environment prevailing in the society. The ideological interpretations of trade unionism also vary and certain of these ideologies like Marxism have significantly influenced the trade union movement.
Webbs considers trade unionism to be an extension of democracy in the sphere of industry. Trade Unions are regarded to be "institutions for overcoming managerial dictatorship to strengthen individual labourers and give them some voice in the determination of conditions under which they have to work."
G.D.H. Cole, a syndicalist, asserted that syndicalism claims for the workers not merely higher wages, but also the "control of industry". He recognised the inevitability of class struggle to realise the immediate objective of higher wages and the ultimate objective of control of industry by workers and for demolition of the class structure of the society. He recommended large industrials unions with compulsory membership to realise these objectives.
Perlman (1949: 10) propounded the theory that labour's struggle is not a revolutionary but an opportunity struggle to increase its bargaining power. Contrary to the belief of Marx that technical progress is the cause of class struggle, Perlman perceived the underlying cause of struggle to be "rapid extension of markets outrunning the technical development of industry."
"Unionism is not so much an outward organisation as a like-minded group." This highlights the socio-psychological approach to trade unionism by Robert F. Hoxie. He emphasised the idea of functional unions and believed that "unionism is not a consistent entity - it is at the bottom non-unitary."
J.R. Commons as quoted by Ghosh expressed most categorically that "labour movement is always a reaction and protest against capitalism." It was the capitalist competition which paved the way towards the birth of trade union movement. But he differed from Marx and Webbs on account of the contention that trade unionism as an institution had its origin in the pre-industrial era.
Frank Tannenbaum believes that the "labour movement is the result and the machine is the major cause." The workers unionise to mitigate their insecurity and try to substitute service for profit and displace the capitalist system by industrial democracy.
Trade unionism in Pakistan, like everywhere else, is essentially an outcome of the factory system of production and capitalistic order of the society. The first cotton textile mill was set up in India in 1851 and working class actions, though loosely organised, started soon after.
The exploitation of labour that took place in early industries came to be noted by the government and public men, and a number of social reformers like S.S. Bengalee and N.M. Lokhanday started taking interest in the welfare of workers. Lokhanday organised the Bombay Mill-Hands Association in 1890. Meanwhile, the government enacted the first Factories Act in 1881, which was revised in 1891.
This provided impetus to the formation of numerous workers' organisations eg the Amalgamated Society of Railway Servants of India and Burma (1887), the Printers' Union, Calcutta (1905), the Bombay Postal Union (1907), the Kamgar Hitvardhak Sabha (1910) and the Social League (1910). However, these were not trade unions in the modern sense of the term as they loosely organised and undertook sporadic and isolated agitations. The character of labour movement till the World War I was essentially humanitarian, meant to ameliorate the suffering of workers.
The involvement of political parties in the trade unions was accompanied by participation of 'outsiders' who came to trade unions more as political workers than as trade union workers. The work that outsiders did was of great value and without that work the movement would not have been able to grow and take shape (Karnik, 1966: 304). At the same time, their presence in unions not only increased the political domination of unions but also led to inter-union and intra-union rivalries and to the consequent disruption of industrial harmony.
Outsiders who hold offices in more than one union not only neglect the workers' interests but obstruct the growth and maturity of internal leadership. However, the National Commission on Labour in India (NCL) (1969: 288-291) did not favour a ban on participation of outsiders. It recommended measures like workers' education, penalties for victimisation of union activists and limiting the membership of outsiders in unions, in order to strengthen the inside leadership that would gradually make the outsider redundant. Of late, more of internal leadership has been emerging in trade unions, though it would be long time before outsiders can be dispensed with.
Multiplicity of unions due to politicisation of the trade union movement, participation of outsiders, growth of craft unions and white-collar unions has led to inter-union rivalry and industrial disharmony. Over the decades, this disunity, far from abating, has grown to grave, almost absurd, proportions. Multiple union structure in Pakistan has contributed to industrial unrest as the unions vie with each other in their anti-management stance. They even work at cross-purposes and try to undermine the influence of rival trade unions. The employer too tries to take advantage of multiplicity by following divide-and-rule policy. As a result, the unions have failed to positively influence the money earnings of workers in many industries.
An important factor limiting the effectiveness of trade unions in Pakistan has been their financial weakness. Poor finances have been the result of small size of unions and low union subscription which is the primary source of union income - approximately 70 per cent. Donations account for about 15 per cent of the income and sale of periodicals and interest on investments another two per cent besides miscellaneous receipts. Thus majority of the unions are not able to undertake many sustained struggles and practically no activities for the welfare of their members.
Trade unions both in Pakistan and India are litigation-oriented thus leading to ever increasing state intervention. The provision for compulsory adjudication has dampened the organisational role of trade unions and has promoted juridification of industrial relations.
The availability of adjudication is responsible for the failure of works committees and the conciliation machinery. Late Shri V.V. Giri, a former President of India, advocated that compulsory adjudication should be replaced by collective bargaining. His approach popularly known as 'Giri approach' to industrial relations seeks to encourage mutual settlement of disputes through collective bargaining and voluntary arbitration.
He argued that a ready reference of dispute for adjudication is a serious cause of weakness of labour unions because it encourages them to look towards the government for support and favour rather than strengthen the labour movement at the grass-roots. His approach was not approved by the government as it was felt that the developing economy of India could not risk the loss of productivity due to prolonged industrial disputes that might result out of free collective bargaining. The argument is still held valid by the exponents of adjudication apart from the contention that a strong and self-reliant trade union movement that can effectively bargain with the employers, has not yet evolved. Hence both alternatives co-exist.
The National Commission of Labour in India in 1966 too advocated increasing reliance on collective bargaining by providing for compulsory recognition of a bargaining agent, but the recommendation is yet to be implemented in India. Fortunately in Pakistan under IRO 1969 and now under IRO 2002 this concept of collective bargaining agent for three years has set afoot under IRO 2008, it is again two years and so is under IRO 2011.
As an employer, the government has been liberal and accommodating. The conditions of employment in government departments and public sector are generally better as compared to the private sector. However, even the public sector has failed to set an example of a model employer and the management has been charged with non-implementation of labour laws, using of unfair labour practices and not encouraging workers' participation in management.
Some other significant tendencies evident in the trade union movement in Pakistan are:
---- The new breed of trade union leaders of fragmented unions have no conception of trade unionism as a movement but only focus on immediate monetary gains of their members and on extending their own field of influence and power. They routinely use muscle power to terrorise employers and rival trade unionists.
---- Trade unionism has been explained as the extension of the principle of democracy to the sphere of industry. However, in Pakistan the unions themselves are not managed democratically. Elections of office-bearers, decisions in elected committees of workers' meetings, proper control of union funds and expenditure are accorded only casual attention.
---- The unions have failed to discipline the workers and there are frequent incidents of violence by workers against the management and owners of industry.
---- Unionism among white-collar employees is on the increase eg among employees of banks, insurance companies, etc. These unions generally prefer to solve their problems through peaceful negotiations but if need be they have shown an increasing inclination to resort to agitational techniques. Evidence from the recent past indicates that some of their work stoppages have extended over a number of days or even weeks.
---- Although the unions are generally organised on plant or industry basis covering all workers, yet, craft unions have also come up.
- Casual and contract labour continues to be gravely exploited since the trade unions are looking after the interests of only the 'labour aristocracy.'
Thus the challenges before the Pakistan trade union movement are, organising the unorganised labour, containing multiplicity of unions and inter-union rivalries, minimising outside political influences, developing internal leadership, lending support to new systems and technology and generating among workers a sense of accountability to the organisation and society at large. It has also to surmount the inequalities within the working class, namely those based on caste, tribal or ethnic origin of workers, in order to enhance the solidarity of the trade union movement.
The National Commission for Labour in India in 1966 suggested inter alia, the following measures to strengthen the trade union movement in India: (i) discouraging of craft/occupational unions, (ii) promoting and protecting internal leadership, (iii) compulsory recognition of a union as the sole bargaining agent, (iv) raising the requirement for registration of a union to a membership of 10% of regular employees of the plant or 100 members whichever is lower, (v) making registration compulsory for all plant unions and federations.
The utmost help and encouragement from the government cannot instill vigour or infuse life into unions which lack vitality. Real strength must come from within, through measures like effecting trade union unity in Pakistan, grooming internal leadership and educating it, amalgamation of small unions to form bigger and financially viable unions, undertaking of welfare activities to win confidence and greater involvement of workers. It has been contended by some that formation of a labour party may also go a long way in strengthening the labour movement in Pakistan.
From time to time the unions have resorted to work-stoppages for issues concerning only one or a few individuals. In many such cases the unions add a number of common demands to justify the union action. Due to paucity of time the workers fall back on the union activists for replying to show cause notices and charge sheets issued by the management. The advice, sometimes, is verbally conveyed but mostly the union functionaries themselves draft the replies. The union also represents its members in the internal enquiries both at the head office and at the depot or branch level.
The role that consumes most of the time of union leaders is that of rendering assistance in individual problems of their members viz. duty adjustments, transfers, availing of leaves/rests, regularising unauthorised absence from duty and involvement in cases of fraud or mis-behaviour, etc. The workers consider this to be the most important task of the union, as shown in the subsequent analysis of workers' attitude. All trade unionists agree to the fundamental purpose of unionism, viz. the pursuit of economic interests of the members. Over and above this, the present day unions have been concerned about promoting the status and security of the workforce, participating in management decision-making, national socio-economic status of the country. Given a specific politico-economic framework, the priority of objectives keeps changing with the evolving socio-economic status of the proletariat.
The unions collect funds for a variety of purposes such as:
(i) For acquisition or construction of accommodation for union office.
(ii) For onward remittance to the national federations with which the unions were affiliated; the former occasionally demand funds over and above annual affiliation fee, for financing various projects or programmes.
(iii) For helping the family of a deceased or seriously injured employee (such collection was generally not reflected in the annual return of the union to the Registrar of trade unions)
The ultimate success of the trade union depends upon the responsiveness of the workers to the directives of the union or the workers' quality of participation in union activities. In order to further improve union participation of work-force some suggestions were made by the union leaders, viz. schooling of workers in trade unionism and making them aware of their obligations towards unions, since union help to the workers in redressal of their genuine grievances and not protecting the guilty workers, trade union struggles for demands which represent the common aspirations of the work-force, rationalising the rotations of work of operational staff so that they have times for their family as well as the union, and having a single union in the Corporation. These remedies are equally valid for the entire trade union movement of the country. In India in Jaspal Singh's study (1980:139) union leaders stressed workers' education, efficient organisation of unions and safeguarding of collective interests, as the most important measures for improving union participation of the workers. However, the existing state of trade unionism in Pakistan is not likely to undergo any perceptible change so long as rival interests breed inter-union rivalries, which in turn harm the interests of the economy as well as those of the workforce.
Since trade unions aim at economic, social, mental and moral advancement of the working class, it is imperative to examine as to how the workers view the unions and to explore the reasons for their state of involvement, active or passive, in union activities. The proletariat has come to recognise the union as being vital to their working life and hence union membership has grown. But numerous fears and compulsions or even sheer inertia have prevented them from throwing their full weight behind the unions. Evidence from the developed West as well as from the developing economies has established that rank and file apathy in union activities is a universal feature, Goldstein's study (1952) in England, Valls' study (1970) in continental Europe and studies carried out in USA, highlighted the general apathy of union members towards trade union participation. Schneider (1957) also classified majority of workers as apathetic unionist who become active only during crises. In a recent study by Guest and Dewe (1988) in Britain, it was found that majority of the workers displayed allegiance to neither the trade union nor the employer. The studies if conducted in Pakistan will confirm the widespread apathy of union members towards trade unions.
Most empirical studies have tried to explain the varying magnitude of workers' union participation, in terms of differences in their socio-economic background. Ramaswamy (1977) has ascribed workers' apathy towards the union, to the diffusion of employers' hostility, bureaucratisation of the trade unions and failure of the unions to instill among their members an ideological orientation towards unionism. When employer's hostility against the union, which may actually drive the workers closer, ceases and the union evolves bureaucratic procedures, the union's mass appeal wanes. In the absence of ideological orientation, the workers fail to visualise a strong union as an end in itself and only those workers keep a lose contract with the union, who have to get something done through the union. Such bread and butter unionism cannot sustain participation of the workforce for long. "In unionism, the problem is to a great extent one of building the cohesion occasionally found in a crisis, into a pattern of behaviour" (Miller, 1965:180).
The workers were nearly unanimous in expressing their disapproval of the multiple-union structure. In unison they branded the multiple-union set-up as one that complicated the collective bargaining process, undetermined the bargaining power of the work-force through fragmentation and inter-union rivalries, proved more advantageous to the management and adversely affected the efficiency and productivity of the organisation. The stated loss of productivity was attributed to inter-union rivalries, tendency of union leaders to avoid work, non-co-operation between members of rival unions, and undue relaxation taken by the union that was favoured by the management. Recently in a survey in India only 25 percent expressed agreement with the statement that multiplicity precludes the autocratic behaviour by the leaders in a single union situation, while the majority (75 per cent) felt that since the single union too would be answerable to the workers, it could ill-afford to the autocratic. Thus from all angles, the workers felt that their interests would be better served through single-union structure.
(To be continued)