“In a country where workers are still unable to look after their own interest because of widespread illiteracy and the absence of a strong trade union membership, that part of factory legislation which deals with the welfare of the workers must be of the greatest importance.” Examine in the light of this statement the welfare facilities provided in the Factories Act, 1948.
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Answer:
Over the years trade unions have been criticized as agents who, in pursuit of their own interests, (improving wages and working conditions, establishing more permanent employment), often oppose measures taken under labour market deregulation and liberalization policies which might undermine these objectives. However, to base our understanding of trade unions on this idea can lead to a narrow view of a labour institutions which plays an important part in securing and extending the rights of the workers and their social security by representing them in tripartite social dialogue with the government and employer associations. Collective bargaining between unions and employers can even produce beneficial outcomes for both through reduced conflict and greater trust. This line of thought is supported by the experiences of Central European and Nordic countries with high rates of unionization and collective bargaining models which have been associated with greater productivity and reduced strike rates.