This document discusses the roles of trade unions in factory and knowledge economy systems. It provides examples of trade union cases in India. In the factory system, trade unions work to achieve higher wages and better working conditions for workers. They also aim to raise the status of workers and protect them from injustice. In the knowledge economy, trade unions negotiate pay and conditions, provide advice and information to employees, and defend workers' rights. The document then summarizes three cases: Australia's annual minimum wage review process, a 125-day strike by an Indian tyre factory union seeking recognition, and an Indian hotel trade union that helped reabsorb laid-off workers through temporary salary reductions.

1. TRADE UNION IN FACTORY SYSTEM
AND IN KNOWLEDGE ECONOMY
Prepared By:-
CHARU GOYAL
2012MBA-012

2. Role of Trade Union in Factory
System
 To achieve higher wages and better working conditions.
 To raise status of workers as a part of industry.
 To protect labors against victimization and injustice.
 To take up welfare measures for improving the morale of
workers.
 To provide opportunities for promotion and growth.
 To protect women workers against discrimination.

3. MINIMUM WAGES CASE
• Each year the ACTU and unions claim a pay rise for
Australian workers through a ‘Minimum Wages Case’
— which is now called the ‘Annual Wage Review’.
• Since 2000, unions have been successful in achieving
about $130 a week more than employers have offered
in minimum wages cases.
• (http://www.actu.org.au/Issues/MinimumWagesCase/
default.aspx)

4. MRF UNITED WORKERS’ UNION
CASE
• The workers in the Arakonam factory of MRF Limited, a tyre major, ended
their 125 day old strike on September 14, 2009 and resumed work.
• The case filed by the MRF United Workers’ Union before the Madras High
Court concerning the recognition of the union by the management of the
company.
• The workers in the factory are paid ‘piece rate wages’ with no transparency
in the process. They do not have any information on what constitutes a
‘piece’ and the rate at which they will be paid for the ‘piece.’
• Moreover, the number of ‘contract workers’ engaged in the factory for
direct production work is more than twice the number of direct confirmed
workers engaged for doing the same work.
• In 2003, however, the workers did succeed in forming an independent
trade union by name MRF United Workers’ Union and got it registered.
• (http://kafila.org/2009/09/24/mrf-united-workers%E2%80%99-union-case-ramapriya-
gopalakrishnan/)

5. Role of Trade Union in Knowledge
Economy
 Negotiating pay and conditions
• protecting their levels of wages and other payments
• negotiating their hours of work and other working conditions
• keeping an eye on health and safety at work
 Giving advice and information
 Defending employees’ rights:- Like, the problems of new
technology, complicated payment systems
 Resolving conflicts
 Providing benefits for members:- Like, reduced membership to
clubs and gyms, discounts on shopping with selected
stores, pension schemes, insurance schemes, holiday schemes
and many other benefits.

6. Case Study of Hotel Leela
• Hotel Leela decided to eliminate 280 of its employees because of low salary
availability as the management was unable to pay heavy remunerations to
this large amount of employees.
• The employees approached Trade Union Maharashtra Samarth Kamgar
Sanghatna (MSKS).
• After some calculations it was found that if 10% of the remuneration of the
workers was cut then it would be able to provide remuneration to the 200
workers. The management agreed and 200 workers were absorbed back into
the organization.
• Further it was found that if 2.5% reduction from the existing salary could be
done along with the reduction of 10%, then even the remaining 80 could be
employed.
• MSKS wanted the reduction to be done right from the upper level managers
to the lower level employees which the management accepted.
• This reduction continued only for 3 months and after that everything was
back to normal.
• (http://www.managementparadise.com/forums/human-resources-
management/201120-trade-union-case-study-leela.html)