Trade Unions- Meaning, Objectives and Establishment

A trade union is a collective organization of workers/employees which aim at promoting the welfare of their members, especially through securing higher wages and shorter working hours. As a rule, they developed in industrializing nations first among skilled workers, who were in relatively short supply and thus had greater bargaining power.

Trade unions are voluntary organizations of workers or employers formed to promote and protect their interest through collective action. The Trade Unions Act, 1926 defines a trade union as a combination, whether temporary of permanent, formed (i) primarily for the purpose of regulating the relation between (a) workmen and employers or (b) between workmen and workmen, or (c) between employer and employer, or(ii) for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions

Trade Unions are the organization established to protect the professional right and interests of wage earners.

To the workers

By the workers

Organization of the workers

Objectives of Trade Unions

1:Empowerment of workers:

-welfare work= may collect fun for the benefit and welfare of the members for instance: ill health, old age, and funeral expenses, etc.

-developing capacity: providing professional, paralegal training etc.

2: Collective bargaining: The ongoing process of negotiation between representatives of workers and employers to establish the condition of employment. The collectively determined agreements may cover not only wages but hiring practices, layoffs, promotions job functions, working conditions and hours, worker discipline and termination, and benefit programs.

3: Advocacy: Building awareness on issues concerning workers right

4: Campaign and Action:

-industrial action: trade unions may enforce strikes or resistance to lockout in furtherance of particular goals.

-mass demonstration: formally against government policy


5: Lobbying: An effort for policy changing through technical dialogues.


6: Other political activities:

Trade unions may promote legislation favorable to the interest of their member or workers as a whole. To this end they may pursue campaign, undertake lobbying or, financially support individual candidates or parties (such as the labor party in Britain) for public office.



The legal framework of Union

To be the party of ILO, union rights should be provided and secure.

Trade Union Act 2049 made to regulate unions.

2051- GEFONT and NTUC recognized as confederation.

Till 2061- Unions are divided but after that unions united and on 2065 JTUCC established, now recognized.

Hierarchy of Trade Union

Authorized TU – Enterprises level T Us – Trade Union Federation- Trade Union Con-Federation

Trade Union as a legal personality

Be an autonomous and Corporate body having perpetual succession.

It shall have a seal of its own to carry out its activities.

May acquire, possess, dispose or manage its movable or immovable property.

It may sue or be sued under its name.

Work, Duty, and Function


Policy intervention

involve in Law Making process

Collective Negotiation with employer and government

Call industrial action,  if Necessary

Implementation of Labour laws

Protection of members and workers in general

Networking Nationally/internationally

Unions are involved in

Central Leval Labour Advisory Council

Minimum Wage Fixation Board

Social Security Board

National Welfare Fund

Foreign Employment Promotion Board

Skill Development and training program of CTEVT

ILO Governing Body

National Development Council

Policy related other board and committee

Politics and Union

Union is the political organization to intervein policy of the state.

Union created party vs party created Union.

Nepalese Union is registered based on the bottom-up approach but closely working with the political party.

Strong union movement may change the society and living standards of the working-class.